Livability Annual Report 2010

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Report and Accounts Year Ended 31 March 2010

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Livability creates

choices

for disabled people and brings life to communities.

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Contents Page A Message from our Patron, HRH The Princess Royal

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Trustees’ Report incorporating: Introduction

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Principal Activities and Core Values

4

Review of the Year and Aims for Next Year

7

Report of the Board

17

Statement of Trustees’ Responsibilities for the Financial Statements

25

Independent Auditors’ Report

26

Consolidated Statement of Financial Activities

29

Consolidated and Charity Balance Sheets

30

Consolidated Cash Flow Statement

31

Notes to the Financial Statements

33

Livability Information

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A MESSAGE FROM OUR PATRON, HRH THE PRINCESS ROYAL

Everyone deserves the opportunity to grow, to develop and to discover their potential. It is in doing so that we discover what life has to offer. As I have visited Livability’s projects this year, I have been struck by the commitment of staff and volunteers to ensure that all people have that chance.

In my role as Patron of Livability, I have met with young people growing up in a deprived neighbourhood and disabled adults living with physical impairments and learning difficulties. Many can feel as though their world is a small, drab one, offering few chances to try new things. However, I have seen at first hand how Livability is working to open up the world for disabled and disadvantaged people.

Their services enable and support people to learn new skills, to make new friends, and to take decisions for themselves: in essence, to truly live.

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INTRODUCTION Although this has been only the second year since our merger, we have been able to start making real progress towards the goals we wanted from bringing together John Grooms and the Shaftesbury Society; namely delivering high quality and more effective services, securing a more stable financial position and developing our services.

Providing quality services and supporting disabled people to live life to the full has been central to our work. I am proud to say that, at today, every one of our adult services has been rated as either good or excellent by our regulator, the Care Quality Commission. During the year fifty four people were awarded NVQ qualifications and 77% of our care staff across our services for disabled adults now have NVQ’s, far above the recommended minimum level. This, together with having our Investors in People award renewed, is a real tribute to Livability’s commitment to providing services of the highest quality and putting our values into practice. Over the last year we have focused on the further development of flexible, personalised services, such as our Lifestyle Choices, which supports disabled individuals in engaging with their community through social, leisure and educational activities.

We have started building for the future through delivering a more secure financial position. This year we have achieved our goal of delivering an overall breakeven operating budget. This has been a tremendous achievement in the face of rising prices and relatively static income.

The third theme of the year has been growth. We have developed new student accommodation and classrooms at Hinwick Hall College. We’ve also raised almost three-quarters of a million pounds towards other new building projects. The number of subscribers to our Community Mission e-newsletter has doubled this year.

We have also established an in-house information and communication systems department.

As well as saving us money, this will allow us to develop the systems we need for growth.

This theme of growth is one I expect to see into the next year. Changes in regulation and the personalisation agenda are creating opportunities for organisations like ours.

Now that we have thoroughly consolidated our post-merger organisation and developed a culture of quality, we are well positioned to develop exciting new services.

Responding to individual need is at the heart of our growing work with disabled and disadvantaged people, providing creative and pioneering services to enable them to achieve real choice, independence and opportunity.

I would like to thank all of you who have been on this journey with us – staff, supporters, companies and charitable trusts – and also to acknowledge gratefully the active involvement of our patron HRH the Princess Royal. Her Royal Highness’s commitment to our work was underlined in October with the launch in central London of the Princess Royal Livability Award, given to staff and volunteers who have undertaken exceptional work. My particular thanks go to Mary Bishop, our Chief Executive, who will be leaving us in September after eight years of leading first the Shaftesbury Society and subsequently, since merger in 2007, Livability. Mary led the Charity calmly and capably through the merger process, and her inspirational leadership has been instrumental in achieving the quality of work and financial stability we now enjoy.

There is still much uncertainty, with very real national economic challenges, as well as the transition to a new government. But I am convinced that Livability is on a firm footing, not just providing high quality services to disabled and disadvantaged people, but looking to new opportunities in the future. I hope that you will continue to support us as we move into that future.

Baroness Howarth of Breckland Chair of the board of trustees 3

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PRINCIPAL ACTIVITIES AND CORE VALUES Livability creates choices for disabled people and brings life to communities. The name Livability reflects our belief that everyone should have the freedom to live their life and the chance to use their abilities to their full potential.

Our services are carried out for public benefit and are open to all who need and can benefit from them.

The impact of our work continues to be very significant: • Livability operates 30 registered residential care homes and supported living schemes including a number of specialist residential and community-based schemes • We maintain three specialist educational establishments – one school and two further education colleges • We provide over 3,000 holidays a year in accessible selfcatering accommodation and hotels.

• We provide services to more than 60 local authorities, to primary care trusts and the Learning and Skills Council (now the Young People’s Learning Agency) • Through our Community Mission team, we trained over 600 Christian Community activists and worked in-depth with over 35 churches, to make a positive impact in areas of high social need in the north of England and in the greater London area.

• We touched the lives of thousands of disabled people with a spinal cord injury in Asia, who have benefited from training and capacity-building work overseas.

Grooms-Shaftesbury was founded on 16 October 2006, but remained largely dormant until 28 June 2007, when it became the entity into which the assets of The Shaftesbury Society and John Grooms were transferred. Livability is the operating name of the Charity.

We organise our work into three operational directorates:

SERVICES FOR DISABLED ADULTS (SDA) We provide a broad spectrum of care and support for disabled adults, ranging from residential care and supported living to brain injury rehabilitation. We also offer fully accessible holiday accommodation and hotels in England and Wales. We support networks of disability organisations which operate in South Asia. Fees are charged for some of these services and local authorities and other government agencies provide funding for them, based on an assessment of each individual's needs. Voluntary income is raised to improve quality and facilities.

Through these arrangements we provide services to disabled people who would not be able to afford to pay for their own fees.

EDUCATION We provide specialist day and residential educational provision for disabled children and young people with complex disabilities and learning difficulties through a school, which is also a specialist sports college, and two colleges of further education. Students are funded by local authorities, the Learning and Skills Council (now the Young People’s Learning Agency) and other government agencies, based on their assessed therapy, care and educational needs. Voluntary income is raised to improve quality and facilities.

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COMMUNITY MISSION We support churches in urban communities through practical support, training and resources. The majority of this work is funded by voluntary income, but attendance fees are charged at low rates for conferences/training courses in order to maximise accessibility for volunteers.

In considering Livability’s Aims and objectives, the Trustees have taken into account the Charity Commission's guidance and best practice on public benefit. Livability’s services are provided for disabled people of any nationality, religion, language, gender, age, sexual orientation and marital status. We aim to empower people to make real, personal choices in their lives. This is achieved by a positive approach to risk taking in which the outcomes for the individual and the level of risk are balanced in ways appropriate to enhancing the lifestyle choices of people we support. We do this through formal and informal processes of risk management, and by continuous development of our services to meet the needs of those who use them. Our Aims are achieved by ensuring occupational health and safety is an integral part of our systems and daily practice.

One of the key factors leading to the merger of John Grooms and The Shaftesbury Society was their shared Christian heritage and ethos which we have reflected, after extensive discussion and consultation in the vision, mission, values and ethos of Livability.

VISION Our vision is of a transformed society where disabled and disadvantaged people can live life to the full.

MISSION Inspired by our Christian ethos, we work with disabled and disadvantaged people to achieve real choice, independence and opportunity. We do this through our expertise, the breadth and quality of our services and by campaigning for change.

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

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

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

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

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

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

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

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

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

We recognise that a limited number of posts require people who are personally committed to the Christian faith in order to maintain our ethos.

In 2009 the Trustees approved a Basis of Faith to which holders of these posts assent.

OBJECTIVES 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.

•

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 Christian Faith as revealed and expressed in the Holy Scriptures, both Old and New Testaments.

“It’s the dream of every mother to see her daughter married.”

Elaine, Wall Street

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REVIEW OF THE YEAR Over the second full year of operation, Livability has offered a wide range of high quality services that enable people to live their lives to the full.

During the last twelve months, we have further consolidated the gains achieved from the merger of John Grooms and the Shaftesbury Society, delivering consistently high quality care and support services, whilst increasing the Charity’s efficiency, placing it on a much surer financial footing to face the future.

In January 2010 Livability achieved the ‘Investors In People’ award, recognising the importance of investing in our staff and volunteers.

Working alongside the people who use our services we have also campaigned for more opportunities for young disabled people as they transition to adulthood; completed a successful capital appeal to increase the educational provision and residential accommodation at Hinwick Hall College and continued two capital appeals to improve the facilities at our school in Bournemouth and residential care home in Norwich.

The innovative partnership with Tearfund has further enabled us to reach out to more local churches, supporting them to meet their communities’ needs and giving increased profile to “Just People”, a study resource looking at Biblical perspectives on social justice.

All this has been achieved within an adverse economic climate that has required the Charity to continue to make efficiency savings across the board to secure its long-term financial sustainability. Many opportunities and challenges lie ahead, and our future plans set out in this report will build on the foundations put in place over the last twelve months.

On 28 February 2010 Livability Housing, a Registered Social Landlord (RSL), which had formerly been an independent sister charity prior to the merger of John Grooms with the Shaftesbury Society completed a transfer of engagements to Habinteg Housing Association Ltd in order to create a larger organisation focusing on the housing needs of disabled people and the development of specialist wheelchair accessible housing within the provision of such services as regulated by the Tenants’ Services Authority.

As a consequence of the transaction, Livability Housing also withdrew as a participating employer in the John Grooms Pension & Assurance Scheme and bought out all pension liabilities attaching to its current and former employees.

The Trustees have referred to the Charity Commission’s guidance on public benefit when reviewing Livability’s Aims, objectives and activities for 2009/10. In particular, they considered how planned activities would contribute to the Charity’s Aims and objectives. This review looks at what we said we would do under each of our four strategic Aims, what we actually achieved and what we plan to do next year. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help. The review also helps us to ensure our Aims, objectives and activities remain focused on our stated purposes.

In 2009/10 our four strategic Aims were as follows: Aim 1: To work in partnership with disabled people to develop, design and provide a wide choice of services which enable disabled children, young people and adults to live life to the full.

Aim 2: Based on practical experience, to speak out with disabled people and disadvantaged communities against injustice on issues of poverty and disability, to bring about positive change.

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Aim 3: To continue to innovate and pioneer new services and solutions, which will meet disabled children’s, young peoples' and adults’ aspirations, and to equip, enable and inspire the Church to respond effectively to issues of poverty and injustice in a range of practical ways through community development and social action.

Aim 4: To continue to search for ways in which we can increase our service efficiencies and secure the financial and human resources needed to deliver our mission, to press for full cost recovery from our funders, and to further invest to raise our long-term voluntary income.

In the pages that follow, the Trustees set out how the Charity has performed against its Aims for 2009/10 and their plans for how Livability will deliver its Aims for 2010/11.

What we did in 2009/10 – Aim 1: Delivering high quality services Central to our mission and the delivery of our vision is the provision of a wide range of services that provide opportunities for disabled children, young people and adults. During this past year Livability has positively assisted almost 5,000 disabled people and: •

Provided residential or nursing care to an average of 272 disabled people at any given time

•

Supported around 100 disabled people to live in their own homes through our supported living services

•

Enabled 200 disabled people to fully participate in local community activities through the support of our Lifestyle Choices projects

•

Educated over 200 school pupils and college students

•

Provided specialist rehabilitation for over 250 people through our specialist brain injury rehabilitation unit

•

Offered over 3,000 holidays to disabled people and their families

•

Run training events for over 880 health professionals in Asia to improve the rehabilitation and treatment offered to disabled people and their families.

The quality of our services was judged by our independent regulators as follows:

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•

As at March 2010, the Care Quality Commission (CQC) rated four of Livability’s registered care services as ‘excellent’ (three stars), 25 as ‘good’ (two stars), only one was rated as ‘adequate’ (one star) and none were rated as ‘poor’.

•

This year, Livability’s school and two colleges were all rated as ‘good’ by CQC, Victoria Education Centre and Sports College was judged to be a ‘good school’ (Grade 2) in the 2009 Ofsted inspection, and Nash College of Further Education maintained their grading as ‘satisfactory’ (Grade 3) in their full Ofsted inspection later in the year.

•

In the fourth quarter monitoring report for 2009/10, SDA registered provision had an average of 77% of their staff NVQ qualified and Education an average of 62%

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Specific progress against the planned actions we described in our last Annual Report is set out below.

2009/10 Aim 1: We will work in partnership with disabled people to develop, design and provide a wide choice of services, which enable disabled children, young people and adults to live life to the full.

What we said we would do

What we did

Invest in Livability’s estate by running fundraising campaigns for: A new pool, therapy rooms and sports facilities at Victoria Education Centre and Specialist Sports College (VEC) in Poole

At Victoria Education Centre in Poole a special development appeal for £4m is underway for the building of a new hydrotherapy pool and therapy centre.

The fundraising campaign has now started with a local appeal committee established which is chaired by a local businessman Geoffrey Warde MBE. The campaign to the end of March has raised £275,000 as well as further receiving pledges of support and gifts in kind.

New student classrooms/bedrooms at Hinwick Hall College

The fundraising campaign at Hinwick Hall raised £207,800 enabling new student accommodation and classrooms to be opened in September 2009 for the admission of 11 additional students.

New communal facilities and additional rooms in John Grooms Court Care Home in Norwich

With the local support of a dedicated Fundraising Appeal Committee, led by its Chairman Canon Richard Bowett, as well as fundraising through grant makers and individual donors, a total of £229,000 has been raised, with further pledges received for cash of £35,000 and gifts in kind of £26,700.

Invest in our people by: Recognising and valuing employees and involving them through an employee forum

Livability achieved an Investors in People award in January 2010, which reflects our overall investment in the way we manage our people. The first Princess Royal Livability Awards were presented by our Royal Patron in October 2009, which recognised the outstanding achievement of twelve employees and volunteers. The Employee Consultation Forum has provided an input to important policies, and contributed to work on improving Livability’s internal communication.

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What we said we would do

What we did

Invest in our people by: Increasing user engagement and involvement through the development of a user involvement strategy

A User Involvement Strategy was developed involving the people who use Livability’s services and is being implemented by the User Involvement Co-ordinator and monitored by the Board.

Implementing a comprehensive learning and development plan including investing in leadership and performance management development

A management training programme was rolled out to managers across Livability to develop leadership and management skills with separate days of training focusing on Management Matters, Performance Matters, Team Matters, Recruitment Matters and Managing Safeguarding.

More than 90 different managers filled 185 course places arranged over 31 training days in the year.

Invest in systems and process improvements by:

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Extending the application of 'thin client' computing to our services and further developing our strategy and ICS infrastructure by migrating central data onto unified servers.

Our Information and Communication Systems (ICS) support service was retendered in 2009, resulting in the creation of a unified in-house support team in February 2010. This team have continued to ‘roll out’ thin client architecture to all care services and have migrated central data onto unified servers.

Improving our Human Resources management information and transaction processing through the implementation of a new HR Information System.

A new HR Information system was implemented. This has been rolled out to central office staff and the Education units enabling direct entry of leave onto the system, which reduces paper processing.

The extension of this to our service remains work in progress due to the complexities of 24/7 rotas. An automated link between the HR system and the payroll system is now functioning.

Undertaking a Safeguarding review of all services

An independent review has been undertaken of Livability’s safeguarding, which rated our practice in adults and children’s services as satisfactory, with good prospects for improvement. An action plan is being implemented to ensure that we drive continuous improvement in this area.

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What we did in 2009/10 – Aim 2 Campaigning for social justice The second part of our mission outlines the importance of campaigning for change. Livability’s campaigns are evidenced based, drawing on the direct experience of our operational work.

2009/10 Aim 2: Based on practical experience, we will speak out with disabled people and disadvantaged communities against injustice on issues of poverty and disability to bring about positive change.

What we said we would do

What we did

During 2009/10 we planned to build on the ‘Freedom to Live’ campaign by working with young disabled people and partner organisations to raise funds for a Transitions website – dedicated to providing online information for young people as they move from childhood to adulthood. Young disabled people will be involved in the design and content of the website from the outset to ensure that the site is attractive, relevant and fully accessible.

Funding applications have been made to six major grant makers, including the Big Lottery, Awards for All and the Department of Health for the Transitions website. Inkind funding of £40,000 has been secured from Cimex, a full-service digital agency, who would help us with the site development.

The Freedom to Live campaign has continued to be developed through attendance at the autumn party political conferences and the release of primary research, undertaken with disabled people and local authorities, around personal budgets.

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What we did in 2009/10 – Aim 3 Pioneering new solutions and sharing expertise Drawing from its rich heritage, Livability aims to continue the tradition of pioneering new solutions and ensuring that best practice is shared. In 2009/10 Livability undertook the following:

2009/10 Aim 3:

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•

We will continue to innovate and pioneer new services and solutions, which will meet disabled children’s, young peoples' and adults’ aspirations.

•

We will equip, enable and inspire the Church to respond effectively to issues of poverty and injustice in a range of practical ways through community development and social action.

What we said we would do

What we did

Continue to explore the development of Nash College of Further Education

Extensive work has been undertaken on the feasibility of moving Nash College to a new site. The closure to all new applications of the Learning and Skills Council’s (LSC) capital funding round last year has meant that we could not apply for funding to re-provide for a new college.

As a result alternative ways have been investigated to improve on-site facilities.

Considerable investment has been made in the current site, with further work planned 2010/11. Alternative contingency plans are now being developed to assess the possibilities of moving some aspects of the service provision off the site in stages.

Develop a modular approach to a curriculum designed to enrich the lives of young people with complex needs.

The curriculum and assessment frameworks at both Hinwick and Nash Colleges have been revised to meet the new requirements of Foundation Learning.

The curriculum offered recognises achievement at differing developmental stages within a 10 stage continuum.

Within VEC, the course programme for the Post 16 department has been significantly changed and improved to increase the number of available courses. This has been implemented as a very positive response to the students. The primary curriculum has also been re-shaped ahead of statutory changes.

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2009/10 Aim 3: •

We will continue to innovate and pioneer new services and solutions, which will meet disabled children’s, young peoples' and adults’ aspirations.

•

We will equip, enable and inspire the Church to respond effectively to issues of poverty and injustice in a range of practical ways through community development and social action.

What we said we would do

What we did

Deliver attractive Lifestyle Choices projects and explore innovative new models for the development of residential care in response to the 'personalisation' agenda.

Additional funding has been secured for the Lifestyles Choices projects which enabled them to deliver services to more people last year, including grants from the Big Lottery Fund of £78,000, restricted to the Plymouth Lifestyles Project. Research has also commenced into the development of a new Lifestyles project in North London. Alongside this, new models of care have been prepared by architects and a feasibility study has commenced for the use of these models in the re-provision of existing services, initially at Ashley House.

Continue to share best practice in community development across a wider range of Churches and Christian organisations through the partnership with Tearfund.

The partnership with Tearfund has increased the scope of our sharing best practice. In under a year, over 8,000 different people have visited the Community Mission website and downloaded a huge amount of resource materials for churches. Enquiries have increased and through associated events more churches are being reached.

Circulation of Community Mission’s monthly e-newsletter has increased by over 100% to 2,300 subscribers.

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What we did in 2009/10 – Aim 4 Securing the resources to deliver our mission The last twelve months has focused on consolidating the efficiency gains from the merger and placing the Charity on a surer financial footing for the future. The goal of producing a break-even budget at the operational level in 2009/10 has been achieved. The Charity now has a firm foundation on which to build for growth.

2009/10 Aim 4: We will continue to search for ways in which we can increase our service efficiencies and secure the financial and human resources needed to deliver our mission. We shall continue to press for full cost recovery from our funders and further invest to raise our longterm voluntary income.

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What we said we would do

What we did

Continue to work in partnership with valued existing supporters and invest in acquiring new supporters and partnerships, particularly through a new Corporate Development Board.

Donor recruitment campaigns took place in early summer and late autumn and new supporters were recruited. Partnerships and volunteer programmes were developed with three key companies and discussions also took place with key donors on the inception of a Development Board. These plans are ongoing.

Continue to review our central systems and processes so that they are as effective and efficient as possible and better able to support the front-line services. This includes development of a more efficient procurement strategy.

Over the last twelve months improvements have been made in the efficiency of central finance systems, building on the efficiency gains made in other central support services during the first year post-merger. An analysis has been undertaken of the way Livability procures agency staff and new arrangements put in place to further increase efficiency.

Review our governance arrangements after the first year of operation to ensure decision making and delegation processes are appropriate and effective.

A governance review was undertaken after the first year of operation and amendments made to the governance structure based on the lessons learnt. Plans are in place for the Board to undertake an annual appraisal to ensure that decision making processes are appropriate and effective.

Develop a long term financial plan, which continues to focus on increasing efficiency.

Over the last two years Livability has secured the efficiency gains from the merger and in 2009/10 produced an unrestricted surplus of ÂŁ1.3m. Over the last six months work has progressed on developing a longer term strategy for the next five years, which builds on the firm foundations that have been put in place. This longer term strategy will be supported by a five year financial plan that is being used to model scenarios and ensure that Livability continues to focus on increasing efficiency as well as effectiveness.

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What we plan to do in 2010/11 As part of their review of the Charity’s strategy and corporate business planning for future years, the Trustees have expanded and prioritised six aims through which Livability will deliver its mission in 2010/11.

Aim 1: To continue to provide and improve our high quality, cost effective, personalised services that support, educate and enable disabled children, young people and adults to live their lives to the full Aim 2: To equip and inspire local churches and ourselves to respond effectively to issues of poverty, disability and injustice in a range of practical ways through community development and social action Aim 3: To bring about positive change by speaking out with disabled people and disadvantaged communities against injustice Aim 4: To provide our existing services to a greater number of people, and to pioneer the development of new cost effective quality services that meet disabled children’s, young peoples’ and adults’ aspirations Aim 5: To develop, maintain and engage our workforce in line with our values to achieve the needs of our services and service users Aim 6: To increase efficiency in order to make the most effective use of our resources.

The priority action that will be undertaken next year to achieve these aims is as follows: Aim 1: We will continue to provide and improve personalised, high quality, cost effective services that support, educate and enable disabled children, young people and adults to live their lives to the full.

We plan to achieve this through: •

Continuing to re-shape existing provision and support services to deliver personalised services and prepare for individual budgets

•

Refining and improving Livability’s quality management system in the light of the new registration standards and inspection frameworks that regulate Livability’s work

•

Investing in improving our buildings and estate, through continuing the capital appeals at Victoria Education Centre and John Grooms Court and the two feasibility studies into the reprovision of off-site learning at Nash College and upgrade of Ashley House.

Aim 2: We will equip and inspire local churches and ourselves to respond effectively to issues of poverty, disability and injustice in a range of practical ways through community development and social action.

We plan to achieve this through: •

Maximising impact through the partnership with Tearfund

•

Developing training resources and materials

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Aim 3: We will bring about positive change by speaking out with disabled people and disadvantaged communities against injustice.

We will do this by building on the Freedom to Live campaign - continuing to work with young disabled people to raise funds for a Transitions website, dedicated to providing online information as they move from childhood to adulthood.

Aim 4: We aim to provide our existing services to a greater number of people and pioneer the development of new, cost-effective quality services that meet the aspirations of disabled children, young people and adults.

Having consolidated the gains from its merger Livability is now moving into a new phase of growth. This will be achieved by: •

Developing and implementing a strategy to incrementally offer additional flexible, personalised services to disabled children and adults, tailored to meet their needs

•

Developing and implementing a marketing strategy to inform disabled people and their families of the personalised services we offer

•

Continuing to raise voluntary income to support the quality and growth of our work.

Aim 5: We will develop and engage our workforce in line with our values to achieve the needs of our services and service users.

We plan to address this through: •

Developing and implementing Livability’s Learning and Development Plan for 2010/11

•

Developing and implementing a Volunteers’ Strategy

Aim 6: We will increase efficiency in order to make the most effective use of our resources.

Whilst the merger strengthened the Charity to withstand the impact of the wider economic recession, continued work will be needed to increase the Charity’s overall sustainability to respond to the anticipated decline in public funding. This will be achieved through:

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•

Maintaining levels of high occupancy in Education and Services for Disabled Adults schemes

•

Utilising Information and Communications Systems (ICS) to increase efficiency through implementation of the ICS Business Plan

•

Continuing to deploy strategies to effectively manage procurement.

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Report and Accounts: year ended 31 March 2010

REPORT OF THE BOARD The Board of Trustees submits its Report and Financial Statements for the period to 31 March 2010.

Structure, governance and management Livability is the operating name of Grooms-Shaftesbury, which 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, Members’ liability is limited to £1 each.

Board of trustees As at 31 March 2010 the Board of Trustees comprised 13 Trustees who are collectively responsible for the oversight of the management of the affairs of the Charity. They are subject to election or re-election according to procedures set out in the governing document. Four Trustees were reappointed to the Board in March 2010 to regularise non-conformance to these procedures.

All members of the Board give their time voluntarily and receive no benefits from Livability. Some claim reasonable expenses in connection with their duties as Trustees (these are shown in Note 8 of the Accounts).

The Trustees are supported by the Governance and Development SubCommittee which reviews the operation of Livability’s governance through self assessment and other means and makes recommendations to the Board to improve the effectiveness and efficiency of these arrangements.

The Governance Development Sub-Committee developed a process for recruiting Trustees based on identifying skills and diversity gaps, which was ratified by the Board in September 2008. Two Trustees have been appointed over the last twelve months following this procedure, following three such appointments during the previous year. These additional five Trustees have brought additional skills and experience to the Board and increased its ethnic diversity and experience of disability.

All Trustees are encouraged to visit Livability’s services as part of their induction and, thereafter, as part of their ongoing engagement with the Charity.

The Trustees seek to ensure that all activities of Livability remain within the law and its charitable objectives. Their responsibilities include setting the strategic direction and agreeing the business plan. Other matters reserved for decision making by the Trustees are set out in a schedule that forms part of the corporate governance framework for Livability.

The Trustees consider, and act on, advice and information presented at their regular meetings, which are attended by the Chief Executive and Senior Officers. They monitor decisions made under delegated authority and plan to meet at least five times a year. One of these meetings is devoted to a longer discussion of key strategic issues facing Livability and its response to major changes affecting its areas of activity. Where necessary, the Trustees establish working groups to consider and report on key operating issues.

The responsibility for monitoring many key areas of activity and policy are delegated to sub-committees comprised of Trustees and other members appointed for their particular expertise or knowledge.

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The Sub-Committees are: •

Finance and General Purposes – oversees all matters related to finance, funding, asset management, HR and Remuneration and Information and Communication Systems (ICS).

•

Audit – oversees internal audit, trust responsibilities, risk management and arrangements for the external audit of the Charity. The Chair of this Sub-Committee Alastair Collett, is a Solicitor and a former Trustee of The Shaftesbury Society.

•

Fundraising and Marketing – oversees fundraising and marketing together with all internal and external official communications and public relations.

•

Governance Development – oversees the governance arrangements of the Charity, Trustee recruitment, appointment, induction, together with Board development and appraisal.

•

Education Oversight – oversees quality, performance and development issues at each education establishment and receives reports from their Local Governors’ Boards. The Local Governors’ Boards act as 'critical friends' with a particular focus on the selfassessment quality improvement cycle within a formal scheme of delegation.

•

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

Chief Executive The Chief Executive is responsible for the management of the Charity’s affairs, for implementation of policies agreed by the Trustees and delivery of the business plan. The Chief Executive is assisted by a group of Senior Officers, the Directors Management Team. The Trustees approve the delegation of financial authority through the Chief Executive to Senior Officers, with specific limits imposed within approved authority levels which are reviewed at least annually. The Board would like to express its thanks to the current Chief Executive Mary Bishop, who will be leaving the Charity in September 2010 after eight years of leading first the Shaftesbury Society and, since the merger in June 2007, Livability. The Trustees confirmed the appointment of Michael Smith OBE as the new Chief Executive on 29 July 2010 and he takes up this role in early October.

Equal Opportunities Policy The Charity is an equal opportunity employer and recognises that discrimination would be contrary to several of its core values. The Charity believes that equality and diversity should be integrated into all management and employment practices and that the more diverse we become, the more we reflect the society we support. Respecting the unique worth of every employee moves us further towards the goal of eliminating unlawful discrimination in the workplace. The Charity actively welcomes the involvement, support and employment of disabled people and is committed to promoting diversity in our workplaces.

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The Charity takes all reasonable measures to ensure that jobs are made available to disabled people and ensures that working conditions are adapted suitably so that disabled people can work within the organisation.

We have received formal recognition of our commitment to the Positive About Disabled People ‘Two Ticks’ standard.

The Charity considers all applicants for jobs on their merits and suitability for the post for which they are applying. Under-represented groups, including those with particular needs, will be actively encouraged to apply for training and employment opportunities within the organisation. All employees are encouraged to maintain a personal development plan as part of the annual performance review process.

Consistent with the Charity’s mission, vision and ethos, a limited number of posts have been designated where a personal commitment to the Christian faith is required in order to maintain the Charity’s Christian ethos

GROUP STRUCTURE Trusts Since the merger of The Shaftesbury Society and John Grooms all but one trust, the Samuel Hale Bibby Endowment Fund, has been vested in the corporate trusteeship of Livability.

Subsidiary Entities and Associated Charities The Charity has four subsidiary trading entities, as follows: John Grooms Contracting Services Limited is engaged in construction and other contracting services on behalf of the Charity, and Livability Limited manages a contract with Suffolk PCT for the provision of brain injury rehabilitation services at our Icanho centre. Any profit arising from these companies is gift aided to Livability.

The two remaining subsidiaries, Shaftesbury Care Limited and Shaftesbury Care Services Limited, are both currently dormant.

As the Corporate Trustee, the Charity 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 have been consolidated into the accounts of Livability since 2007/8 when the work of Kingsley Hall was transferred from a trust to a registered charity and company limited by guarantee known as Kingsley Hall Church and Community Centre.

Lastly, the Charity 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 financial and non financial support to this charity.

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INTERNAL FINANCIAL CONTROL AND ORGANISATIONAL RISK The Trustees are responsible for ensuring that appropriate systems of financial control are in place including the provision of satisfactory control over the Charity’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 Trustees realise the importance of effective risk management and direct resources to mitigate the major risks to which the Charity is exposed. The strategic risks of either a direct financial or non-financial nature have been identified and are documented in the Charity’s Risk Register. 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 Charity’s Risk Register is reviewed regularly by the Directors Management Team and the Audit Sub-Committee; their reports are reviewed at least annually by the Board of Trustees. As a further safeguard, all members of staff have the opportunity to identify risks through both formal and informal processes, including via a “whistle blowing” procedure.

Livability’s strategic risk register has identified the following strategic risks for the Charity: 1.

The impact of anticipated major public expenditure reductions on fee settlements and the demand for our highly specialised services (with adult social services and specialist further education perceived as being particularly at risk), coupled with increases in the costs of providing these services caused by general inflation running ahead of fee settlements and increased staffing costs resulting from the imposition of irrecoverable VAT on agency staff costs, other staff cost pressures and other regulatory changes, such as pensions legislation.

We are looking to mitigate this risk by continually seeking efficiency savings throughout the Charity. In addition, we are undertaking detailed analysis of and remodelling the cost base for our services, reducing the cost of agency staff and the number of occupancy voids through increased marketing activity while continually pressing our funders for full recognition and recovery of all the relevant costs in our fee negotiations with them.

2.

20

Exposure to major changes in government policy and commissioning arrangements in adult care and special needs education leading to:

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•

Changes in recruitment arrangements and income streams for learners attending our educational establishments.

•

Changes in adult services arising from the personalisation agenda and the introduction of personal budgets.

We are working closely with key educational partners in the regions including the LSC and its successor bodies and closely monitoring the opportunities and risks arising from these changes.

Further we have, and will continue to, develop our models of care for disabled adults to embrace personalisation and as opportunity permits, seek to develop our existing residential services as hubs for a range of different services to meet the needs of disabled people in their local communities.

3.

The impact of the economic recession on levels of unrestricted voluntary income and committed giving combined with high rates of donor fatigue and a reduction in funding from grant making trusts and statutory sources.

We are mitigating this through focused donor recruitment and retention activities, by cutting out all activities which are inefficient in terms of return on investment and making sure that all lapsed donors are contacted with a view to restoring their support.

4.

The scale of the investment programme that is required to maintain and upgrade the premises and facilities of our school, colleges and a number of our residential care services, as well as the Charity’s Information and Communication Systems (ICS) capability and infrastructure both within services and in central support.

We are addressing this risk by conserving our resources and targeting improvements critical to business continuity and quality of care/fulfilment of educational attainment. Where complete reprovision is required we are closely analysing the most appropriate form for reproviding services into the future to ensure that these have the flexibility to meet both current and future demands and are resilient to future changes of use. Cost engineering will be used to ensure that reprovision is undertaken at the lowest possible cost without compromising the quality, effectiveness or flexibility of the provision. This will include exploration of innovative forms of design and building techniques.

We will closely monitor Livability’s cash in order to ensure that internal resources are available to sustain this longer term investment activity alongside carefully targeted capital appeals to maximise funding from individual, statutory and trust funding sources.

5.

Triennial actuarial revaluations for Livability’s two closed final salary pension schemes funding revealed a significant deterioration in the funding position of these schemes on the scheme specific funding basis despite several years of significantly increased contributions to repair the original deficits.

Livability is responding to the pension scheme Trustees’ requirements for additional funding so as to ensure that it is prudent and sustainable but does not impair the Charity’s ability to generate income or to innovate, grow and expand its services effectively into the future.

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RESULTS FOR THE YEAR AND RESERVES Income and Expenditure Account The year ending 31 March 2010 has seen significant strengthening of Livability’s financial position, in addition to considerable progress towards the service development goals that were set at the time of merger of John Grooms and the Shaftesbury Society in 2007. Overall, net incoming resources at the operating level (ie: before transfers between funds and before recognised gains and losses on assets, investments and pensions) for this year totalled £2.2m, a substantially improved outcome compared with the £1.3m net deficit incurred in 2008/09 when Livability was still in transition post-merger.

The Charity benefited financially from its closure the previous year of a number of loss-producing services, net deficits from which had totalled £1.0m in 2008/09. Despite these closures, total incoming resources for the year grew by £1.5m (4%) to £42.7m. Total resources expended reduced by £2.0m (5%) to £40.5m, with £1.7m of the savings relating to the schemes that had been closed and £0.3m to cessation of grants that had been payable in previous years to Livability Housing. As highlighted in the Review of the Year, Livability Housing completed a transfer of engagements to Habinteg Housing Association Ltd on 28 February 2010.

Income from services increased by 2% in total with a particularly strong performance for the second year running from our Education services, which together increased income by £1.7m (11%), half of which originated from Hinwick College. Income from Services for Disabled Adults was down 6% due in the main to the activities discontinued in the previous year.

Fundraised income was strong this year, increasing in total by 13% (08/09 – fall of 11%) largely as a result of capital appeals relating to the three Education establishments and to John Grooms Court. This outcome is particularly pleasing in the context of the continued challenges presented by the UK economic environment, and is testament to the skill and hard work of the fundraising team. It is encouraging that our legacy income has remained buoyant, since we continue to rely on unrestricted funds to underwrite the total costs of providing our charitable services. Whilst full cost recovery remains our aspiration, this will require considerable further efficiency savings in the light of the downwards pressure that we expect from public sector funders in the immediate years to come.

Once again, the accounting (FRS17) valuation of our closed defined benefit pension schemes has impacted heavily on our results, reflecting continued volatility in the markets as well as hardening of a number of the key technical assumptions. As a result, for the second year running we experienced a significant unrealised actuarial loss (09/10 - £3.0m, 08/09 £3.8m) with the combined deficits for FRS17 purposes of the John Grooms and Shaftesbury Society schemes now totalling £10.1m (08/09 - £7.3m).

The increase in deficits is notwithstanding our continued annual deficit recovery payments of £0.8m.

The revaluation of fixed assets this year has resulted in our recording an unrealised accounting loss of £1.0m under Other Recognised Gains/(Losses), due mainly to Nash College now being valued on an existing use basis. In 2008/09 there had been an expectation that this property and the associated land would be subject to a swap for an alternative local site. The asset had, as a result, been assigned the indicative market value relating to that prospective transaction in Livability’s 08/09 accounts. Financial appraisal of the proposed scheme indicated that the capital development required to re-site Nash would not be affordable for 22

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the Charity, due to changes in funding following cessation of the Learning and Skills Council (LSC). As a consequence, the Trustees believe that the existing use method of valuation is more appropriate for these assets at the current year end. The carrying value of the Victoria Education Centre has also been revised downwards in the light of a full external valuation carried out in the current year.

Key Balance Sheet Movements The land and buildings for a unit discontinued in a previous year, the Burton Hill School, was sold during the year for £1.8m, generating a profit on disposal of £0.7m. As noted above, we revised downwards the value of Nash College of Further Education and Victoria Education Centre to replace the market values previously held with the now more appropriate existing use values, resulting in a write down of £1.0m. This contrasts with net upwards revaluations totalling £0.4m in 2008/09.

The investment portfolio invested in a range of pooled funds and equities benefited from improvements in the relevant markets, with the value up 30% at the end of March.

A change to the timing of the issue of invoices for Education units has lead to a reduction in both debtors and creditors.

Cash Flow Net cash flow from operating activities was an inflow of £2.2m compared to an outflow of £0.9m last year. This reflects the turnaround in the financial performance of Livability between 2008/09 and 2009/10 as the organisation leaves the post-merger phase.

Net cash inflow from purchases and sales of fixed assets has fallen significantly between the two years reported. 2008/09 benefited from the proceeds of sale of a number of properties, with only Burton Hill being sold in 2009/10. Capital expenditure has risen as we improve the quality of the building stock and have spent a grant of £0.3m received from the Learning and Skills Council to make significant improvements at Nash College.

Reserves The Trustees have reviewed the requirement for general reserves, which are those unrestricted funds not invested in fixed assets, designated for specific purposes or otherwise committed. The Trustees consider that the Charity should aim to hold general reserves equivalent to between four and eight weeks’ expenditure, to provide sufficient flexibility to cover short-term risks and uncertainties (as described more fully on pages 20 and 21) from changes in public policy and funding towards the services provided by Livability, the volatility of voluntary income and Livability’s investment programme, as well as temporary cash flow timing differences, adequate working capital and the Charity’s contractual obligations to staff.

General reserves, at £3.7m (equivalent to 5 weeks’ expenditure), are in line with this target. In formulating future plans, the Board’s policy is to continue to maintain reserves at the target level.

The Cyclical Maintenance Reserve Fund represents funds retained to cover the cost of major cyclical repairs to the properties of the Charity.

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The Property and Equipment Funds respectively represent the total amount (at cost or valuation, less depreciation and direct borrowings drawn and undrawn) invested in freehold and leasehold properties and fixtures, fittings and motor vehicles used for the functional purposes of the Charity.

The Endowment Reserve Fund represents the funds where the Charity acts as Sole Corporate Trustee and which are required to be amalgamated with the results of the Charity.

The aggregate deficit, £10.1m (2009: £7.3m), of the two closed final salary pension schemes is shown, in accordance with FRS17, as a long term liability in the Consolidated Balance Sheet. The corresponding Pension Deficit is shown as a negative reserve within the Charity’s statement of Total Funds. Both schemes have been subject to triennial actuarial valuations during the 2009/10 financial year, with a deficit recovery plan having been agreed for the John Grooms Pension and Assurance Scheme after the balance sheet date, and discussions with The Pensions Trust on agreeing a plan for The Shaftesbury Scheme being scheduled for agreement by 31 December 2010.

Investment Policy Livability plans to expend its restricted and unrestricted income in furtherance of its charitable objects, but will at any point in time hold funds in accordance with the Trustees’ adopted reserves policy. These funds may be required to underpin the day to day operating cash flow needs of the Charity, or may be designated or restricted towards specified purposes that will crystallise at a future date. Income from capital appeals in particular, by its nature, is raised in advance of its planned expenditure, resulting in funds being accumulated until these are sufficient for the specific projects or developments to which they relate.

Consequently, in line with its fiduciary duties, the Board of Trustees considers it prudent to invest such reserves over the term appropriate until they are required as liquid funds. For cash required for the day to day operating needs of the Charity, these will be held in cash at commercial banks that are considered by the Trustees to have appropriately low risk profiles, or in UK government Treasury Bills. For funds being held towards specific future purposes over the medium or longer term, these may be invested either in deposit accounts or managed balanced funds that meet the Trustees’ required minimum risk and credit rating.

Livability also maintains a modest investment portfolio, derived from historic gifts and legacies, that is held within pooled investment funds.

Occasionally, Livability is gifted shareholdings in individual stocks. It is the Trustees’ policy to consider on a case by case basis whether to liquidate such shareholdings on receipt

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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 that give a true and fair view of the state of affairs of the group and the parent charity and of the incoming resources and application of resources, including the net income or 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 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 accounting records that disclose with reasonable accuracy at any time the financial position of the group and the parent charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group 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.

The Trustees have had due regard to the guidance issued by the Charity Commission on public benefit reporting and consider that these reporting requirements have been met.

DISCLOSURE OF INFORMATION TO AUDITORS 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 the Charity’s auditors are unaware, 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 the Charity’s auditors are aware of that information.

The report of the Board was approved by the Board on 29 July 2010 and signed on its behalf by:

M P A Langworth Company secretary 25

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS AND TRUSTEES OF LIVABILITY We have audited the financial statements of Grooms-Shaftesbury for the year ended 31 March 2010 which comprise the consolidated statement of financial activities, the consolidated and parent charity balance sheets, the consolidated cash flow statement and the related notes. The financial statements have been prepared under the accounting policies set out therein.

This report is made solely to the parent 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 parent charity's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent charity and the parent 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 auditors The responsibilities of the Trustees (who are also the directors of the company for the purposes of company law) 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') and for being satisfied that the financial statements give a true and fair view are set out in the statement of Trustees' responsibilities.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view, have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and have been prepared in accordance with the Companies Act 2006.

We also report to you whether in our opinion the information given in the Trustees' annual report is consistent with those financial statements.

In addition we report to you if, in our opinion, the Charity has not kept adequate accounting records, if the financial statements are not in agreement with those accounting records, if we have not received all the information and explanations we require for our audit or if certain disclosures of Trustees' remuneration specified by law are not made.

We read the Trustees' annual report and consider the implications for our report if we become aware of any apparent misstatements within it.

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Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the Trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the group’s and the parent charity's circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion In our opinion: •

the financial statements give a true and fair view of the state of the group’s and the parent charity's affairs as at 31 March 2010 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

•

the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

•

the financial statements have been prepared in accordance with the Companies Act 2006; and

•

the information given in the Trustees' annual report is consistent with the financial statements.

Ian Mathieson Senior statutory auditor For and on behalf of PKF (UK) LLP, Statutory auditors London, UK

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“Every parent wants to see their child take their first steps, but when you have waited nine years it's overwhelming.�

Danielle's mum, Victoria Education Centre

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CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2010 (Incorporating an Income and Expenditure Account)

Unrestricted Funds

Incoming resources Incoming resources from generated funds Voluntary income Investment income Incoming resources from charitable activities Income from continuing activities Income from discontinued activities Other incoming resources: Trusts Profit on disposal of fixed assets

Notes

2010 £’000

2 3

4,911 392

1,472 1

– 37

6,383 430

5,658 603

2 5

34,617 –

571 –

– –

35,188 –

33,788 825

2

– 658 ––––––––– 40,578 –––––––––

– – ––––––––– 2,044 –––––––––

27 – ––––––––– 64 –––––––––

27 658 ––––––––– 42,686 –––––––––

77 251 ––––––––– 41,202 –––––––––

2,206 37,430 – 98 – – 347 ––––––––– 40,081 –––––––––

25 333 – – – – – ––––––––– 358 –––––––––

– – – – 85 – – ––––––––– 85 –––––––––

2,231 37,763 – 98 85 – 347 ––––––––– 40,524 –––––––––

2,089 37,893 1,728 114 96 300 315 ––––––––– 42,535 –––––––––

497

1,686

(21)

2,162

(1,333)

813 ––––––––– 1,310

(813) ––––––––– 873

– ––––––––– (21)

– ––––––––– 2,162

– ––––––––– (1,333)

9 11

(998) 74

– –

– 97

(998) 171

440 (48)

22

(2,977) ––––––––– (2,591)

– ––––––––– 873

– ––––––––– 76

(2,977) ––––––––– (1,642)

(3,844) ––––––––– (4,785)

36,350 ––––––––– 33,759 –––––––––

2,657 ––––––––– 3,530 –––––––––

4,131 ––––––––– 4,207 –––––––––

43,138 ––––––––– 41,496 –––––––––

47,923 ––––––––– 43,138 –––––––––

Total incoming resources Resources expended Cost of generating voluntary income 4 Direct charitable expenditure 4 Expenditure from discontinued activities 5 Other costs 4 Trusts 4, 10 Grant to Livability Housing 4 Governance costs 4 Total resources expended Net income/(outgoings) for the year before transfers Gross transfers between funds 16,17 Net income/(outgoings) for the year after transfers 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 Reconciliation of funds Balance at 1 April 2009 Balance at 31 March 2010

Restricted Permanent Total Funds Total Funds Funds Endowment 31 March 31 March Funds 2010 2010 2010 2009 £’000 £’000 £’000 £’000

All the above results are derived from continuing activities, with the exception of the income & expenditure marked as discontinued, and referred to in note 5.

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.

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Registered company no. 5967087

CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT 31 MARCH 2010 Note

Group 2010 £’000

Group 2009 £’000

Charity 2010 £’000

Charity 2009 £’000

9 11

45,995 1,235 ––––––––– 47,230

47,223 1,057 ––––––––– 48,280

43,098 1,220 ––––––––– 44,318

44,232 1,045 ––––––––– 45,277

12 13

32 2,487 7,893 ––––––––– 10,412

32 3,371 5,740 ––––––––– 9,143

32 2,440 7,818 ––––––––– 10,290

32 3,199 5,641 ––––––––– 8,872

14 15

(3,235) (156) ––––––––– (3,391) ––––––––– 7,021 ––––––––– 54,251

(4,402) (285) ––––––––– (4,687) ––––––––– 4,456 ––––––––– 52,736

(4,156) (156) ––––––––– (4,312) ––––––––– 5,978 ––––––––– 50,296

(5,117) (285) ––––––––– (5,402) ––––––––– 3,470 ––––––––– 48,747

(2,182) (448) ––––––––– (2,630) ––––––––– (10,125)

(1,876) (448) ––––––––– (2,324) ––––––––– (7,274)

(2,182) – ––––––––– (2,182) ––––––––– (10,125)

(1,876) – ––––––––– (1,876) ––––––––– (7,274)

––––––––– 41,496 –––––––––

––––––––– 43,138 –––––––––

––––––––– 37,989 –––––––––

––––––––– 39,597 –––––––––

16 10

3,530 4,207

2,657 4,131

3,423 2,880

2,495 2,801

17 17 17

40,197 3,687 (10,125) ––––––––– 41,496 –––––––––

39,690 3,934 (7,274) ––––––––– 43,138 –––––––––

38,062 3,749 (10,125) ––––––––– 37,989 –––––––––

37,576 3,999 (7,274) ––––––––– 39,597 –––––––––

Fixed assets Tangible assets Investments Total fixed assets 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 14 Provisions 15 Defined benefit pension liability

22

Net assets Funds Restricted Funds Permanent Endowment Funds Unrestricted Funds: Designated Funds General Funds Pension scheme deficit Total Funds

The accompanying Notes to the Financial Statements form an integral part of these financial statements.

The financial statements were approved and authorised for issue by the Board on 29 July 2010 and signed on its behalf by:

Paula Kerr Trustee

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CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2010

Net cash inflow/(outflow) from operating activities Returns on investment and servicing of finance Purchase and sale of fixed assets

Note 1 2 3

Net cash inflow before use of liquid resources and financing Financing Increase in cash in the period Reconciliation of net cash flow to movement in net funds Increase in cash Cash used to repay bank loans Non-cash movement in loans Change in net funds Net funds at 1 April 2009 Net funds at 31 March 2010 Cash Flow Statement Notes 1. Reconciliation of net incoming/(outgoing) resources to net cash inflow/(outflow) from operating activities Net incoming / (outgoing) resources Net investment income Interest receivable Interest payable Depreciation – fixed assets Profit on disposal of fixed assets Decrease in stock Decrease in debtors Decrease in creditors Decrease in pension provision Net cash inflow/(outflow) from operating activities

4

2010 £’000 2,192 328 194 –––––––––

2009 £’000 (906) 502 2,396 –––––––––

2,714 291 ––––––––– 3,005 –––––––––

1,992 (147) ––––––––– 1,845 –––––––––

2010 £’000 3,005 (291) (8) ––––––––– 2,706 2,947 ––––––––– 5,653 –––––––––

2010 £’000 2,162 (406) (24) 109 688 (658) – 884 (437) (126) ––––––––– 2,192 –––––––––

2009 £’000 (1,333) (460) (125) 83 1,110 (251) 51 1,477 (495) (963) ––––––––– (906) –––––––––

2010 £’000 405 24 (101) –––––––––

2009 £’000 460 125 (83) –––––––––

328 –––––––––

502 –––––––––

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

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Cash Flow Statement Notes (cont’d) 3. Purchase and sale of fixed assets 2010 £’000 (1,584) 1,785 (7) ––––––––– 194 –––––––––

2009 £’000 (809) 3,197 8 ––––––––– 2,396 –––––––––

2010 £’000 440 (149) –––––––––

2009 £’000 – (147) –––––––––

291 –––––––––

(147) –––––––––

Cash Non-cash flow movement

Purchase of tangible fixed assets Sale of tangible fixed assets Purchase of fixed asset investments Net cash inflow from purchase and sale of fixed assets 4. Financing

New loans drawn Repayment of bank loan Net cash inflow/(outflow) from management of liquid resources and financing 5. Reconciliation of net cash flow to movement in funds

Cash at bank and in hand Short term deposits Cash disclosed in the balance sheet Bank overdraft Total cash Bank loans due within one year Bank loans due after one year Total bank loans Net funds

32

As at 1 April 2009 £’000 2,190 3,550 ––––––––– 5,740 (852) ––––––––– 4,888

£’000 2,153 – ––––––––– 2,153 852 ––––––––– 3,005

£’000 – – ––––––––– – – ––––––––– –

As at 31 March 2010 £’000 4,343 3,550 ––––––––– 7,893 – ––––––––– 7,893

(160) (1,781) ––––––––– (1,941) ––––––––– 2,947 –––––––––

13 (304) ––––––––– (291) ––––––––– 2,714 –––––––––

– (8) ––––––––– (8) ––––––––– (8) –––––––––

(147) (2,093) ––––––––– (2,240) ––––––––– 5,653 –––––––––

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2010 1. 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.

Grooms-Shaftesbury was incorporated on 16 October 2006 to acquire the assets of John Grooms and The Shaftesbury Society; the combination of these entities being treated as a merger. The assets and liabilities of those charities were transferred to Grooms-Shaftesbury on 28 June 2007 with the exception of certain assets which have been retained within John Grooms and The Shaftesbury Society. These ‘excluded assets’ could not be transferred because of legal complexities affecting the properties in question and therefore they remain within John Grooms and The Shaftesbury Society together with the Samuel Hale Bibby Endowment Fund which also could not be transferred for the same reasons from The Shaftesbury Society.

Livability is the operating name of Grooms-Shaftesbury.

Consolidation The Consolidated financial statements include the financial statements of the Charity and its subsidiary undertakings, John Grooms, The Shaftesbury Society, John Grooms Contracting Services Limited, and Livability Limited.

In addition Kingsley Hall Church and Community Centre and Livability Ireland are also consolidated on the basis that Kingsley Hall Church is an associated charity over which Livability can exercise control and Livability Ireland because the sole purpose of this charity is to manage the activities of a spinal injury rehabilitation project in a number of South Asian countries on behalf of Livability.

The income and expenditure of local groups who support fundraising activities for service users at various of the Charity’s units is included in the financial statements of the Charity, provided that such activity has not been set up as a separate “friends group” charity. In addition, the results include those of various trusts where Livability is Corporate Trustee and where the Charity Commission have granted Uniting Directions allowing the consolidation of trust results with those of Livability. The results and balance sheet of these trusts is shown under the heading “endowments” in the accounts.

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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 practical 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 with 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.

Resources Expended All expenditure is accounted for on an accruals basis and has been listed in such a way as to accumulate all the Charity’s costs of employees, goods and services relating to a particular activity of the Charity under that activity heading. Direct costs, including attributable salaries and associated costs, are allocated on an actual basis to the key areas of activities. Indirect costs (support costs), primarily comprising staff costs of employees based at the Charity’s central office in London, are allocated to each activity heading using a number of identified cost drivers, including allocation of time on the basis of a time apportionment.

Capital Grants Capital grants are taken as income in the year in which the grant was given.

If a donor has a remaining interest in an asset, for example through a request for a return of funds should the purpose of an asset for which the grant was given change in some way, the existence of the donor’s interest is shown separately in the accounts.

Discharge of restrictions on grants and donations Funds given by donors to Livability for a specific activity, project or location are logged on the fundraising database in such a manner as to link the donation to the purpose for which it is given. To ensure that donors’ wishes are discharged correctly, donations for a specific activity, project or location of the Charity are accounted for as restricted funds. The restriction is only released when the activity, project or location has benefited from the spending of the donation on the purpose for 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.

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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.

Pensions Costs The Charity maintains a Group Personal Pension arrangement which is open to all qualifying members of staff and contributes to an Aegon Scottish Equitable scheme. Contributions paid by the employer are directly expensed in the SOFA. In addition, the Charity is responsible for two defined benefit pension schemes which have been closed to new members and further accrual of benefits since June 2007. Details of the schemes are disclosed in Note 22 to the Financial Statements.

In calculating the pension scheme deficits, the requirements of FRS17 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 2010.

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.

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The sum of items 1-3: the contribution, current service cost and other finance charges is allocated across the headings in the expenditure part of the SOFA in proportion to the Charity’s pension contributions to each area of expenditure.

The unrealised actuarial gains and losses are shown in the lower part of the SOFA under the heading of Actuarial gains/(losses) on defined benefit pension schemes.

Tangible Assets Fixed assets are capitalised when their value exceeds ÂŁ5,000. 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

Freehold buildings

100 Years

Nil

1%

Horticultural buildings

25 years

Nil

4%

Equipment, fittings and furniture

5 years

Nil

20%

Plant and machinery

20 years

Nil

5%

Cars

4 years

Nil

25%

Minibuses and coaches

6 years

10%

15%

Computers and software

3 years

Nil

33.3%

10 to 30 years

Nil

10% to 3.3%

Chalets and mobile homes

Freehold land is not depreciated.

An annual impairment review of buildings with remaining economic lives of more than 50 years from the Balance Sheet Date is carried out in accordance with recommendations laid down in FRS 15.

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 line with the asset lives shown above.

Profits and losses on disposal of tangible assets are included in the SOFA as unrestricted income or restricted income, as appropriate.

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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.

Giving by lending deposit taking scheme Amounts received from supporters under this scheme are invested in high interest earning deposits.

Taxation Status No liability to Corporation Tax arises on these accounts as the Charity has charitable status under Section 505 ICTA 1998.

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.

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“Everything is taken care of, so I really get to spend quality time with Vera.�

Barrie, West Shore

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2.

INCOME FROM CHARITABLE ACTIVITIES

The following is analysed according to the different services provided by the Charity: 2010 2010 2010 Unrestricted Restricted Permanent Endowment Funds £’000 £’000 £’000 Income from services Education 15,424 Services for Disabled Adults 18,771 Community Mission & Linked Churches 76 Other 346 ––––––––– 34,617 ––––––––– Voluntary income Donations & Gifts Education – Services for Disabled Adults – Community Mission & Linked Churches – General fundraising for Livability operations 2,015 ––––––––– 2,015 Legacies Education – Services for Disabled Adults – Community Mission & Linked Churches – General fundraising for Livability operations 2,896 ––––––––– 2,896 ––––––––– Total voluntary income 4,911 ––––––––– Other income Trust income – Investment income 392 Profit on disposal of fixed assets 658 ––––––––– Total other income 1,050 ––––––––– Total income from charitable activities 40,578 –––––––––

2010 Total

2009 Total

£’000

£’000

564 7

– –

15,988 18,778

14,324 20,053

– – ––––––––– 571 –––––––––

– – ––––––––– – –––––––––

76 346 ––––––––– 35,188 –––––––––

63 173 ––––––––– 34,613 –––––––––

842 546

– –

842 546

331 386

2

–

2

3

1 ––––––––– 1,391

– ––––––––– –

2,016 ––––––––– 3,406

2,070 ––––––––– 2,790

74 7

– –

74 7

149 –

–

–

–

–

– ––––––––– 81 ––––––––– 1,472 –––––––––

– ––––––––– – ––––––––– – –––––––––

2,896 ––––––––– 2,977 ––––––––– 6,383 –––––––––

2,719 ––––––––– 2,868 ––––––––– 5,658 –––––––––

– 1

27 37

27 430

77 603

– ––––––––– 1 –––––––––

– ––––––––– 64 –––––––––

658 ––––––––– 1,115 –––––––––

251 ––––––––– 931 –––––––––

2,044 –––––––––

64 –––––––––

42,686 –––––––––

41,202 –––––––––

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 £2.2m. These interests are not included as income as set out in the accounting policy for incoming resources.

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3.

INVESTMENT INCOME 2010 £’000 Unrestricted

Listed investments Unlisted investments Bank interest Rent receivable

10 3 24 355 ––––––––– 392 –––––––––

2010 2010 £’000 £’000 Restricted Endowment 1 – – – ––––––––– 1 –––––––––

10 – – 27 ––––––––– 37 –––––––––

2010 £’000 Total

2009 £’000 Total

21 3 24 382 ––––––––– 430 –––––––––

26 3 129 445 ––––––––– 603 –––––––––

See note 16 on page 52 for details of interest earned on restricted funds held within pooled cash balances.

4.

TOTAL RESOURCES EXPENDED

2010 2010 2010 2010 Unrestricted Restricted Permenent Total Endowment Funds £’000 £’000 £’000 £’000 Direct Charitable Expenditure: Education 14,967 65 – 15,032 Services for Disabled Adults 18,588 183 – 18,771 Community Mission and Linked Churches 458 – – 458 Other 274 85 – 359 ––––––––– ––––––––– ––––––––– ––––––––– 34,287 333 – 34,620 Direct Support Costs: Education services Services for Disabled Adults Community Mission and Linked Churches

2009 Total

£’000 13,807 22,000 441 368 ––––––––– 36,616

843 2,102

– –

– –

843 2,102

865 1,894

198 ––––––––– 3,143 –––––––––

– ––––––––– – –––––––––

– ––––––––– – –––––––––

198 ––––––––– 3,143 –––––––––

246 ––––––––– 3,005 –––––––––

37,430 –––––––––

333 –––––––––

– –––––––––

37,763 –––––––––

39,621 –––––––––

98 2,206 347 – ––––––––– 2,651 –––––––––

– 25 – – ––––––––– 25 –––––––––

– – – – ––––––––– – –––––––––

98 2,231 347 – ––––––––– 2,676 –––––––––

114 2,089 315 300 ––––––––– 2,818 –––––––––

– ––––––––– Total Resources Expended 40,081 –––––––––

– ––––––––– 358 –––––––––

85 ––––––––– 85 –––––––––

85 ––––––––– 40,524 –––––––––

96 ––––––––– 42,535 –––––––––

Direct Charitable Expenditure Other Expenditure: Other costs Fundraising Governance costs Grant to Livability Housing

Trusts

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4.

TOTAL RESOURCES EXPENDED (continued...)

Allocation of support costs Senior Management

Finance

Corporate Support

HR

£’000 Education 77 Services for Disabled Adults 81 Community Mission & Linked Churches 25 Fundraising 28 Governance 63 ––––––––– TOTAL COST 2010 274 ––––––––– TOTAL COST 2009

£’000 373

£’000 110

£’000 238

745

672

489

115

2,102

50 220 114 ––––––––– 1,502 –––––––––

58 51 121 ––––––––– 1,012 –––––––––

17 31 28 ––––––––– 803 –––––––––

48 40 21 ––––––––– 269 –––––––––

198 370 347 ––––––––– 3,860 ––––––––– 3,666 –––––––––

2010 £’000 288 50 7 2 ––––––––– 347 –––––––––

2009 £’000 270 39 6 ––––––––– 315 –––––––––

2010 £’000

2009 £’000

688

1,110

44 6 5 109 331

44 27 135 337

2010 £’000 682 248 369 932 ––––––––– 2,231 –––––––––

2009 £’000 770 270 319 730 ––––––––– 2,089 –––––––––

Governance costs are made up of the following: Apportionment of senior management time External audit fees and other services Internal audit fees Trustee costs

Total resources expended is arrived at after charging: Depreciation (including central office depreciation of £44,453 2009: £62,033) Auditors remuneration: Audit current year Audit prior year (under accrued) Other services Interest payable Operating lease charges (all land and buildings)

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

Marketing

Total Directorate Support £’000 £’000 45 843

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5.

DISCONTINUED ACTIVITIES

Livability’s sole respite care centre, the Jane Hodge Centre, was sold on 16 March 2009.

The results are summarised as follows:

Income Expenditure Total deficit 6.

2009 £’000 825 (1,728) ––––––––– (903) –––––––––

2010 £’000 219 109 3 ––––––––– 331 –––––––––

2009 £’000 220 114 3 ––––––––– 337 –––––––––

OPERATING LEASES

Annual obligations due under operating leases are as follows: Land and buildings Expiring under one year Expiring between two and five years Expiring beyond five years

7.

2010 £’000 – – ––––––––– – –––––––––

TRADING SUBSIDIARIES

The results of the wholly-owned subsidiaries Livability Limited (LL), John Grooms Contracting Services Limited (JGCSL) 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:

Turnover Operating profit/(loss) Gift to the charity Aggregate assets Aggregate liabilities Aggregate net assets

42

2010 LI £’000 208 73 – ––––––––– 173 (5) ––––––––– 168 –––––––––

2010 LL £’000 756 – – ––––––––– 2 – ––––––––– 2 –––––––––

2010 JGCSL £’000 2 – – ––––––––– 73 (73) ––––––––– – –––––––––

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8.

EMPLOYEES

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

Wages and salaries Social Security Costs Pension and Other Costs

Group 2010 FTE 1,484 62 8 43 19 ––––––––– 1,616 –––––––––

Group 2009 FTE 1,321 62 7 55 19 ––––––––– 1,464 –––––––––

Group 2010 £’000 24,747 1,879 2,261 ––––––––– 28,887 –––––––––

Group 2009 £’000 24,897 2,008 1,956 ––––––––– 28,861 –––––––––

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:

£60,001 £70,001 £80,001 £90,000

- £70,000 - £80,000 - £90,000 +

Group 2010 No. of employees

Group 2009 No. of employees

4 3 3 1

5 3 2 1

Employers’ pension contributions made on behalf of 11 of these employees totalled £83,050 in the year (2009: 11 employees £93,278).

Trustees receive no remuneration in respect of their services as Trustees of Livability. Travel and other out of pocket expenses were reimbursed to 7 Trustees in the year to the value of £2,208 (2009: six Trustees to the value of £2,431).

Livability paid £6,083 in the year (2009: £6,000) to provide Indemnity Insurance for the Trustees.

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9.

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

TANGIBLE ASSETS Group Long Short Furniture, Freehold leasehold leasehold fittings, land & land & vehicles, land & buildings buildings buildings other £’000 £’000 £’000 £’000 Cost or valuation At 1 April 2009 Additions Disposals Revaluation At 31 March 2010 Depreciation At 1 April 2009 Charged in year Disposals At 31 March 2010 Net book value At 31 March 2010 At 31 March 2009

46,353 873 (1,139) (998) ––––––––– 45,089 –––––––––

364 – – – ––––––––– 364 –––––––––

595 – – – ––––––––– 595 –––––––––

6,740 711 (44) – ––––––––– 7,407 –––––––––

54,052 1,584 (1,183) (998) ––––––––– 53,455 –––––––––

853 304 (25) ––––––––– 1,132 –––––––––

21 4 – ––––––––– 25 –––––––––

237 27 – ––––––––– 264 –––––––––

5,718 353 (32) ––––––––– 6,039 –––––––––

6,829 688 (57) ––––––––– 7,460 –––––––––

43,957 ––––––––– 45,500 –––––––––

339 ––––––––– 343 –––––––––

331 ––––––––– 358 –––––––––

1,368 ––––––––– 1,022 –––––––––

45,995 ––––––––– 47,223 –––––––––

“It’s great living here. It’s my home.”

Andrew, Shaftesbury Court

44

Total £’000

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9.

FIXED ASSETS (Continued)

TANGIBLE ASSETS Charity Long Short Furniture, Freehold leasehold leasehold fittings, land & land & land & vehicles, other buildings buildings buildings £’000 £’000 £’000 £’000 Cost or valuation At 1 April 2009 Additions Transfers from other group entities Disposals Revaluation At 31 March 2010 Depreciation At 1 April 2009 Charged in year Disposals At 31 March 2010 Net book value At 31 March 2010 At 31 March 2009

Total £’000

43,401 873

364 –

510 –

6,706 701

50,981 1,574

70 (1,139) (998)

– – –

– – –

– (44) –

70 (1,183) (998)

––––––––– 42,207 –––––––––

––––––––– 364 –––––––––

––––––––– 510 –––––––––

––––––––– 7,363 –––––––––

––––––––– 50,444 –––––––––

787 280 (25) ––––––––– 1,042 –––––––––

21 4 – ––––––––– 25 –––––––––

228 20 – ––––––––– 248 –––––––––

5,713 350 (32) ––––––––– 6,031 –––––––––

6,749 654 (57) ––––––––– 7,346 –––––––––

41,165 ––––––––– 42,614 –––––––––

339 ––––––––– 343 –––––––––

262 ––––––––– 282 –––––––––

1,332 ––––––––– 993 –––––––––

43,098 ––––––––– 44,232 –––––––––

“I was too afraid to talk to strangers, but now I can control my panic attacks more.”

Leo, Lifestyle Choices, Bedford 45

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9.

FIXED ASSETS (Continued)

The Group’s Freehold Land & Buildings comprise: Unrestricted funds £’000 Cost or valuation At 1 April 2009 Additions Disposals Revaluation Transfers At 31 March 2010 Depreciation At 1 April 2009 Charged in year Disposals At 31 March 2010 Net book value At 31 March 2010 At 31 March 2009

Permanent Restricted endowment funds funds £’000 £’000

Total £’000

42,370 873 (1,139) (998) 70 ––––––––– 41,176 –––––––––

129 – – – – ––––––––– 129 –––––––––

3,854 – – – (70) ––––––––– 3,784 –––––––––

46,353 873 (1,139) (998) – ––––––––– 45,089 –––––––––

810 296 (25) ––––––––– 1,081 –––––––––

8 – – ––––––––– 8 –––––––––

35 8 – ––––––––– 43 –––––––––

853 304 (25) ––––––––– 1,132 –––––––––

40,095 121 3,741 43,957 ––––––––– ––––––––– ––––––––– ––––––––– 41,560 121 3,819 45,500 ––––––––– ––––––––– ––––––––– –––––––––

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

Tangible Assets includes properties revalued as disclosed in the accounting policies.

The cost and revaluation amount of freehold property assets is shown below.

Cost of assets revalued Assets under uniting directions Revaluation Market value at 31 March 2010

Total £’000 32,486 3,784 8,819 ––––––––– 45,089 –––––––––

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 2010. A review of these valuations, along with the carrying values of properties not subject to professional revaluation, was undertaken at 31 March 2010 by Hilbery Chaplin Chartered Surveyors with adjustments made to carrying values where considered material.

The central office property at 50 Scrutton Street (included in freehold land and buildings) is jointly owned with Habinteg Housing Association Ltd.

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10. 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 uniting directions given under Section 96(5) of the Charities Act 1993 by the Charity Commission, 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). Livability also acts as a custodian Trustee of Kilburn Evangelical Free Church and sole Corporate Trustee of the David Livingstone Charity for Handicapped Young People. The funds of this small Charity are not consolidated there being no uniting direction in place.

Trust

Commonly known as

Objects

Chiswick Mission

Chiswick

To promote local mission purposes

Highway Evangelical Church Highway (Stratford)

To promote local church and mission purposes

Marsh Street Mission (Walthamstow)

Marsh Street

To promote local mission purposes

The Coney Hill Will

Coney Hill Will

To promote the education and welfare of children and young persons

The Shaftesbury Welcome Mission (Battersea)

Welcome

To promote local mission and community purposes

Samuel Hale Bibby Endowment Fund

SHBEF

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

The Shaftesbury Development Fund

Shaftesbury Development

To be applied to the general purposes of Shaftesbury

The Beddington Fund

Beddington

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

Platt Mission, Putney

Platt

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

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10. TRUSTS (Continued) A summary of the Financial Results of each trust is laid out below:

Income Expenses

Chiswick Highway Marsh St. Coney Hill Will Welcome Mission SHBEF Shaftesbury Development Beddington Platt Mission, Putney

Net Net surplus/ Unrealised increase/ (deficit) gains (decrease)

Funds b/fwd

Funds c/fwd

£’000

£’000

£’000

£’000

£’000

£’000

£’000

– 52 1 – 2 1 5 – 3 –––––– 64 ––––––

(5) (58) (4) – (9) (8) – – (1) –––––– (85) ––––––

(5) (6) (3) – (7) (7) 5 – 2 –––––– (21) ––––––

– 16 – – – 3 71 7 – –––––– 97 ––––––

(5) 10 (3) – (7) (4) 76 7 2 –––––– 76 ––––––

464 967 436 26 413 1,327 345 20 133 –––––– 4,131 ––––––

459 977 433 26 406 1,323 421 27 135 –––––– 4,207 ––––––

11. INVESTMENTS

Securities Market Value As at 1st April 2009/2008: Additions Write-off Revaluations As at 31 March 2010/2009 UK Treasury Deposits Equities Overseas equities Giving by Lending deposit fund Unlisted

48

Group 2010 £’000

Group 2009 £’000

Charity 2010 £’000

Charity 2009 £’000

582 7 – 171 ––––––––– 760 –––––––––

785 8 4 (215) ––––––––– 582 –––––––––

570 7 – 168 ––––––––– 745 –––––––––

769 8 5 (212) ––––––––– 570 –––––––––

4 629 62 64 1 ––––––––– 760 –––––––––

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11. INVESTMENTS (Continued)

Investment Properties 7 Rose Court, Kenilworth Road, Coventry 47 Gibbs Green, Edgware Middlesex 9 Princess Crescent, Finsbury Park, London Other investments Listed investments Unlisted investments Mortgage loan Total Investments Analysis of movement on Investments

Value at 31 March 2009/2008 Additions Net write-off Revaluation gains Investments at 31 March 2010/2009

Group 2010 £’000

Group 2009 £’000

Charity 2010 £’000

Charity 2009 £’000

90 215

90 215

90 215

90 215

150 ––––––––– 455

150 ––––––––– 455

150 ––––––––– 455

150 ––––––––– 455

759 1 20 ––––––––– 1,235 –––––––––

582 – 20 ––––––––– 1,057 –––––––––

744 1 20 ––––––––– 1,220 –––––––––

570 – 20 ––––––––– 1,045 –––––––––

Group 2010 £’000 1,057 7 – 171 ––––––––– 1,235 –––––––––

Group 2009 £’000 1,096 8 1 (48) ––––––––– 1,057 –––––––––

Charity 2010 £’000 1,045 7 – 168 ––––––––– 1,220 –––––––––

Charity 2009 £’000 1,080 8 1 (44) ––––––––– 1,045 –––––––––

Of the investments above, the cost of investment properties is £291,000 (2009: £291,000), while the cost of listed investments is £445,025 (2009: £445,025).

12. STOCKS

Plants Food Bar

Group 2010 £’000 27 4 1 ––––––––– 32 –––––––––

Group 2009 £’000 26 4 2 ––––––––– 32 –––––––––

Charity 2010 £’000 27 4 1 ––––––––– 32 –––––––––

Charity 2009 £’000 26 4 2 ––––––––– 32 –––––––––

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13. DEBTORS

AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors and fees receivable Other debtors Prepayments and accrued income Short term loans Amount due from Habinteg

Group 2010 £’000

Group 2009 £’000

Charity 2010 £’000

Charity 2009 £’000

1,379 397 563 24 124 ––––––––– 2,487 –––––––––

1,922 516 685 20 228 ––––––––– 3,371 –––––––––

1,355 374 563 24 124 ––––––––– 2,440 –––––––––

1,919 351 681 20 228 ––––––––– 3,199 –––––––––

Group 2010 £’000

Group 2009 £’000

Charity 2010 £’000

Charity 2009 £’000

890 931 543 719 147 – – – 5 ––––––––– 3,235 –––––––––

681 958 561 1,185 160 852 – – 5 ––––––––– 4,402 –––––––––

875 931 543 671 147 – 461 523 5 ––––––––– 4,156 –––––––––

663 921 561 1,170 160 852 461 324 5 ––––––––– 5,117 –––––––––

Group 2010 £’000

Group 2009 £’000

Charity 2010 £’000

Charity 2009 £’000

2,093 89 ––––––––– 2,182 –––––––––

1,781 95 ––––––––– 1,876 –––––––––

2,093 89 ––––––––– 2,182 –––––––––

1,781 95 ––––––––– 1,876 –––––––––

14. CREDITORS

AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors Accruals and deferred income Taxes and social security Other creditors Bank loans Bank overdraft Amount due to a Trust Amount due to group entities Trust loans

FALLING DUE AFTER MORE THAN ONE YEAR Bank loans Deferred income

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14. CREDITORS (Continued) Bank Loans The charity had five loan facilities in place at the balance sheet date.

1. The first facility comprises four separate loans at an interest rate of 1.375% over Barclays Bank Base Rate. The loans are secured by means of a fixed charge over three of the Charity’s properties.

2. The second facility is a loan secured on certain of the Charity’s properties. The interest rate on the loan is 1.2% over LIBOR. 3. The third facility is a mortgage secured on one of the Charity’s residential care homes.

The mortgage attracts an interest rate of 1.2% over LIBOR but the arrangement is subject to a “cap and collar”, with the cap rate set at 7.75% and collar at 6.55%.

4. The fourth facility is a 20-year mortgage repayable in monthly instalments at an interest rate of 1.25% above the Barclays Lending Rate, secured by a first charge over one of the Charity’s properties.

5. The fifth facility is a loan from Futurebuilders England (now the Social Investment Business) drawn in the year and repayable over the period to April 2022. This loan carries interest at 6% per annum.

The loans are repayable by instalments as follows 2010 £’000 147 147 487 1,459 –––––––––

2009 £’000 160 101 441 1,239 –––––––––

Site closures and reSite equity organisation £’000 £’000

Part-time workers’ pension claims liability £’000

Total £’000

Within 1 year 1-2 years 2-5 years Due after 5 years

15. PROVISIONS Group:

Falling due within one year: As at 1 April 2009 Net movement As at 31 March 2010 Falling due after one year: As at 1 April 2009 As at 31 March 2010

80 – ––––––––– 80 –––––––––

129 (129) ––––––––– – –––––––––

76 – ––––––––– 76 –––––––––

285 (129) ––––––––– 156 –––––––––

448 ––––––––– 448 –––––––––

– ––––––––– – –––––––––

– ––––––––– – –––––––––

448 ––––––––– 448 –––––––––

All the above provisions are included in the Charity with the exception of the long term site equity provision of £448,000 which is held by a subsidiary.

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Provisions for site equity have been made where other agencies or individuals hold equity stakes in the Charity’s property. The equity stakes will be released on sale of the property.

Where the decision to sell can be made by a third party, the liability has been recognised as a short-term liability. Where the Charity has sole control of the decision, the liability is recognised as a long-term one.

The Charity has provided for claims from part time workers for back dated pension costs.

Up to 31 March 1996, under then Shaftesbury policy, part time workers were ineligible to join the Shaftesbury Pension Scheme. Legislation has now indicated that the exclusion of part time workers may have been incorrect. Accordingly provision has been made for the costs of backdating pension provision for potential claimants. £76,000 has been provided for claim costs.

The site closure and reorganisation costs were provided to cover the cost of staff redundancies arising from efficiency programmes.

16. RESTRICTED FUNDS Balance Transfers Balance at at 1 April Incoming Outgoing between 31 March 2009 resources resources funds 2010 £000 £000 £000 £000 £000 Specific Project Funds Education Services for Disabled Adults Holidays/lifestyle workers/others Community Mission Overseas Giving by Lending F Clements Trust Fund Faith Training Centre Kingsley Hall Total Restricted Funds

Name of fund Giving by Lending F Clements Trust Fund Education Adult Support Community Mission Faith Training Centre Holidays/Lifestyle workers/others Overseas Kingsley Hall

1,250 894 194 101 62 57 22 35 42

1,382 196 189 2 164 – – 13 98

(77) (63) (19) – (114) – – – (85)

(574) (23) (183) – 1 – – – (34)

1,981 1,004 181 103 113 57 22 48 21

––––––––– 2,657 –––––––––

––––––––– 2,044 –––––––––

––––––––– (358) –––––––––

––––––––– (813) –––––––––

––––––––– 3,530 –––––––––

Description, nature and purpose of fund Monies received from individuals Income from this fund is to support the Charity’s general activities Various funds received to support individual educational establishments Various funds received to support individual adult support establishments To support the work of the community mission team and the linked churches To support the work of the Faith Horticultural Centre Various funds to support the work of our holiday, lifestyle and other operations Various funds to support our overseas work To support the work of Kingsley Hall Community Centre

The transfers above represent the costs of purchasing fixed assets with restricted funds, the use of grants received to support the Lifestyles projects in Plymouth and Bedford and an income of £28,000 of interest earned on restricted cash held within pooled cash balances.

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17. UNRESTRICTED FUNDS Balance Net Transfers Other Balance at at 1 April incoming gains and 31 March 2009 resources losses 2010 £’000 £’000 £’000 £’000 £’000 Property Fund 26,638 – 1,466 – 28,104 Revaluation Fund 10,094 – (277) (998) 8,819 1,052 – 316 – 1,368 Equipment Fund Cyclical Maintenance Fund 1,906 – – – 1,906 ––––––––– ––––––––– ––––––––– ––––––––– ––––––––– Total Designated Funds 39,690 – 1,505 (998) 40,197 General Funds 3,934 497 (818) 74 3,687 ––––––––– ––––––––– ––––––––– ––––––––– ––––––––– Unrestricted Funds before Pension Liability 43,624 497 687 (924) 43,884 Pension Reserve (7,274) – 126 (2,977) (10,125) ––––––––– ––––––––– ––––––––– ––––––––– ––––––––– Total Unrestricted Funds 36,350 497 813 (3,901) 33,759 ––––––––– ––––––––– ––––––––– ––––––––– ––––––––– Name of fund Property Fund

Revaluation Fund Equipment Fund

Cyclical Maintenance Fund

General Funds Pension Reserve

Description, nature and purpose of fund Represents the total amount (at cost or valuation, less depreciation and unamortised government grants and direct borrowings) invested in freehold and leasehold properties used for the functional purposes of the Charity.

Represents the increase or (decrease) in the value of the Charity’s property assets.

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.

Represents monies set aside for the cost of major cyclical repairs for all significant properties (apart from horticultural buildings and mobile homes). The future cost of repair and replacement of major items is estimated and set aside over the repair or replacement period.

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

Represents the deficit on the Charity’s Defined Benefit pension schemes.

18. ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS General Designated £’000 Tangible fixed assets 985 Investments – Cash 3,345 Other current assets 2,519 Current liabilities (3,162) Long-term liabilities – ––––––– Funds at 31 March 2010 3,687 –––––––

£’000 41,148 815 1,088 – (224) (2,630) –––––––

Pension Restricted Permanent Endowment £’000 £’000 £’000 – 121 3,741 – 48 372 – 3,361 99 – – – – – (5) (10,125) – – ––––––– ––––––– –––––––

Total Funds £’000 45,995 1,235 7,893 2,519 (3,391) (12,755) –––––––

40,197 –––––––

(10,125) –––––––

41,496 –––––––

3,530 –––––––

4,207 –––––––

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19. RELATED PARTY TRANSACTIONS There have been no related party transactions in the year (2009: Nil).

20. 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, Livability. In the year ended 31 March 2010, the individual results of Livability were:

Income Expenditure Unrealised gains and losses Total deficit

2010 £’000 41,403 (39,204) (3,807) ––––––––– (1,608) –––––––––

2009 £’000 39,873 (41,189) (3,455) ––––––––– (4,771) –––––––––

21. CAPITAL COMMITMENTS There were no outstanding capital commitments at 31 March 2010 (2009: none). Capital expenditure totalling £555,000 had been approved but not contracted for (2009: £Nil).

22. PENSIONS The Charity contributes to three staff pension schemes: •

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

•

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

•

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

•

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

While both of the defined benefit schemes were closed in June 2007, members who were employed at the closure date retain a link to their salary on benefits until their retirement or their earlier date of leaving.

The cost of employer contributions to the Scottish Aegon plan and the Teachers’ Pension Scheme was £1,196,000 in the period (2009: £1,064,000). There are prepaid contributions of £69,000 in respect of all 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 lower rates used to value future liabilities in today’s money, which have increased the valuation of the liabilities of the schemes. These lower discount rates reflected lower returns in the corporate bond market on which they are based.

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22. PENSIONS (Continued) Livability Housing (formerly John Grooms Housing Association) was a participating employer in JGPAS. During the year, Livability Housing merged with Habinteg. As part of the merger the liabilities relating to employment with Livability Housing are in the process of being replaced with an insurance-backed scheme. This does not affect the rights of the pensioners, the assets or the liabilities of JGPAS relating to employment within Livability or the predecessor employer, John Grooms Assocation for the Disabled.

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 Provision and Recovery Period agreed for each scheme.

The subsequent disclosures combine data for both schemes where possible and reflect only Livability’s share of JGPAS. The latest valuation of the TSS scheme as at 30 September 2006 was updated to 31 March 2010 by an independent qualified actuary in accordance with FRS17. The contribution made to the TSS scheme by the employer in the accounting period was £550,000 as set out in the deficit recovery plan agreed at the last formal valuation. An actuarial valuation of the TSS scheme is underway at the date of signing the accounts and is expected to conclude within the calendar year. The result of this may be an increase in the contributions payable to the TSS scheme.

A full actuarial valuation of JGPAS was carried out as at 31 March 2009 and updated to 31 March 2010 by a qualified independent actuary. The scheme closed to future accrual on 27 June 2007 although members contributing to the Scheme at the closure date retain the link to salary on benefits at retirement or earlier leaving.

The contribution made to the Scheme by the Employers (Livability and Livability Housing) in the accounting period was £375,000. Recovery contributions of £400,000 per annum (payable in quarterly instalments until 1 October 2022) are currently paid to address the deficit calculated at the last formal valuation 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 were (in nominal terms): At 31 March 2010 Discount rate 5.70% Rate of increase in salaries 3.50% Inflation assumption 3.50%

At 31 March 2009 6.70% 2.95% 2.70%

Pension increases: The Shaftesbury Society scheme Pension accrued pre 6/4/05 GMP accrued post 5/4/05 Excess accrued post 5/4/05

3.40% 2.30% 3.50%

2.70% 2.10% 2.70%

The John Grooms Pension and Assurance Scheme Pre 94 Pension Post 94 GMP Post 94 Excess

5.00% 2.70% 3.40%

5.00% 2.05% 2.65%

Assumed life expectancies on retirement at age 65 are: Retiring today Males 20.4 Females 22.9 Retiring in 20 years time Males 21.7 Females 24.1

22.2 24.9 22.6 24.8 55

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22. PENSIONS (Continued) The assumptions used in determining the overall expected return of the scheme have been set with reference to yields available on government bonds and appropriate risk margins.

The mortality assumptions used in the valuation of both schemes were the SAPS All Pensioners using Medium Cohort mortality improvement based on year of birth, with a 0.5% minimum improvement. The JGPAS mortality assumptions were varied by the BeLonG study prepared for the scheme.

The assets in the scheme and the expected rate of return were:

Long-term rate of return expected at 31/03/2010 Equity Bonds Property Cash

8.40% 4.60% - 5.70% 7.40% 0.50%

Fair value of plan assets The actual return on assets over the period was

Long-term rate of return expected at 31/03/2009

Value at 31/03/2009 £’000

13,671 7.40% 9,767 3.70% - 6.70% 1,019 7.40% 333 0.50% ––––––––– 24,790 –––––––––

9,753 8,298 929 128 ––––––––– 19,108 –––––––––

5,422 –––––––––

(3,302) –––––––––

Value at 31/03/2010 £’000

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

(34,915) 24,790

(26,382) 19,108

–––––––––

–––––––––

(10,125) –––––––––

(7,274) –––––––––

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 / (gain) Benefits paid Liabilities at end of year

56

2010 £’000 26,382 256 1,740 7,486 (949) ––––––––– 34,915 –––––––––

2009 £’000 27,178 116 1,755 (1,867) (800) ––––––––– 26,382 –––––––––

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22. PENSIONS (Continued) Reconciliation of opening and closing balances of the fair value of scheme assets 2010 £’000 Fair value of scheme assets at beginning of year 19,108 1,159 Expected return on scheme assets Actuarial gain / (loss) 4,509 Contributions by employers 963 Benefits paid (949) ––––––––– Fair value of scheme assets at end of year 24,790 –––––––––

2009 £’000 23,228 1,546 (5,711) 845 (800) ––––––––– 19,108 –––––––––

Recognised gains and losses in the Statement of Financial Activities 2010 £’000 Actuarial losses (2,977) Impact of surplus restriction – ––––––––– Total (2,977) –––––––––

2009 £’000 (3,844) – ––––––––– (3,844) –––––––––

History of scheme assets, As at obligations and experience 31 March adjustments 2010 £’000 Present value of scheme liabilities (34,915) Fair value of scheme assets 24,790 ––––––––– Deficit in the scheme (10,125) ––––––––– Experience adjustments arising on scheme liabilities Experience item as a percentage of scheme liabilities Changes in assumptions underlying the present value of the liabilities Changes in assumptions as a percentage of scheme liabilities

As at 31 March 2009 £’000 (26,382) 19,108 ––––––––– (7,274) –––––––––

As at 31 March 2008 £’000 (27,178) 23,228 ––––––––– (3,950) –––––––––

As at 31 March 2007 £’000 (30,352) 23,307 ––––––––– (7,045) –––––––––

As at 31 March 2006 £’000 (28,625) 21,690 ––––––––– (6,935) –––––––––

(384)

92

22

(691)

38

(1)%

0%

0%

(2)%

0%

(7,102)

1,775

4,545

944

(2,991)

(20)%

7%

17%

3%

(10)%

(5,711)

(2,123)

(158)

2,313

(30)%

(9)%

(1)%

11%

Experience adjustments arising on scheme assets 4,509 Experience item as a percentage of scheme assets 18%

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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

Year ended 31 March 2010 £’000 (256)

Year ended 31 March 2009 £’000 (116)

1,159 (1,740) ––––––––– (837) –––––––––

1,546 (1,755) ––––––––– (325) –––––––––

Contributions and administration fees payable in the year ended 31 March 2011 are expected to be: The Shaftesbury Society scheme John Grooms Pension and Assurance Scheme

58

Year ended 31 March 2011 £’000 550 560 ––––––––– 1,110 –––––––––

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LIVABILTIY INFORMATION STRUCTURE, GOVERNANCE AND MANAGEMENT PATRON Her Royal Highness, The Princess Royal

VICE PATRONS Mr Stephen Green Lady Hobson MBE

LIFE PRESIDENTS Sir Ron Hobson KCVO David Thompson LLB OBE

PRESIDENT Baroness Howarth of Breckland OBE

VICE-PRESIDENTS Rt Revd Dr T Butler MSc PhD LLD DSc The Bishop of London, The Rt Revd and Rt Hon R J Chartres DDF SA Mr Michael Edgar MA MChir RCS Revd Joel Edwards Mrs Pamela Farrell Tredinnick OBE Prof Ram Gidoomal CBE FRSA CCMI Mr Robert Hodge The Most Reverend and Rt Hon D M Hope, Baron Hope of Thornes, FRCP MA DPhil DD LLD Mr John Hughesdon Commissioner Elizabeth Matear, The Moderator of the Free Church Federal Council Mr Roy McCloughry BSc (Econ) MSc Professor Lord McColl of Dulwich CBE Mr Robert Powell Ms Esther Rantzen CBE Ms Pam Rhodes The Revd Canon Roger Royle Lady Wilkins The Archbishop of Canterbury, The Most Revd R D Williams MA DPhil DD FBA

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TRUSTEES Leonard J H Beighton* CB MA, Chair of Education Oversight Committee – reappointed as a Trustee July 2008 Martin Bradford* FCA – reappointed as a Trustee October 2009 Chris Carr BSc FCA CF appointed Chair F&M Committee on resignation of David Harmer – reappointed as a Trustee July 2008 Anne-Marie Costigan RGN DMS Cert in Ed – appointed 2nd July 2009 and reappointed March 2010 Jenny Edwards RSCN SRN NNEB – reappointed as a Trustee March 2010 Sue M Goodrich† FCIH FCIPD – resigned 8th December 2009 Alison E Grieve† FCA MA – resigned 20th October 2009 Peter N Griffiths* BSc (Econ) FCA, Joint Vice Chair of Board of Trustees, Honorary Treasurer, Chair of F&GP Sub-Committee – reappointed as a Trustee July 2008 David J Harmer* resigned as Joint Vice Chair of Board of Trustees 28th January 2010, resigned as Chair of Fundraising and Marketing Sub-Committee March 2010 – reappointed as a Trustee July 2008 Keith Hickey BSc(Hons) MSc FCCA DChA – reappointed as a Trustee March 2010 Baroness Howarth of Breckland OBE, Chair of Board of Trustees – reappointed as a Trustee October 2009 Paula Kerr MSc BSc, appointed Joint Vice Chair 28th January 2010, Chair of SDA Oversight Committee – reappointed as a Trustee March 2010 Agnita Oyawale MA BD (Hons) AKC PGCE – appointed 28th January 2010 Rodger Scott – reappointed as a Trustee October 2009 Dawn Sugden LLB – reappointed as a Trustee October 2009 Non-Trustee Independent Chair of Audit Sub-Committee – Alastair J C Collett LLB * †

Trustee Members of the Audit Sub-Committee Temporary leave of absence approved March 2009

SENIOR OFFICERS Chief Executive

Mary Bishop MBA BSc (Hons) CQSW FRSA

Director of Services for Disabled Adults

Dave Webber Dip MS

Director of Community Mission

Jon Kuhrt BA (Hons) (resigned 30th June 2010)

Interim Director of Community Mission

Adam Bonner BA (Hons) (appointed 30th June 2010)

Director of Fundraising and Marketing

John Chamberlain BA (Hons) MIOF

Director of Education

Mark Hughes MA B Ed

Director of Human Resources

Anne Strach MA BA (Hons) FCIPD

Director of Finance and ICS

Jackie Bliss BA (Hons) ACA (appointed 16th November 2009)

Interim Director of Finance

Eliot Lyne BA (Hons) ACA (resigned 16th November 2009)

Company Secretary and Director of Secretariat and Estates 60

Michael Langworth BSc (Econ) (Hons) ACIS

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SOLICITORS

AUDITORS

Anthony Collins Solicitors LLP

PKF (UK) LLP

134 Edmund Street

Farringdon Place

Birmingham B3 2ES

20 Farringdon Road London EC1M 3AP

Bates Wells & Braithwaite LLP 2-6 Cannon Street

INTERNAL AUDITORS

London EC4M 6YH

Chantrey Vellacott DFK LLP Russell Square House

Pothecary Witham Weld

10-12 Russell Square

70 St George’s Square

London WC1B 5LF

London SW1V 3RD

Speechly Bircham LLP 6 St Andrew Street London EC4A 3LX

CHARTERED SURVEYOR, PROPERTY VALUERS Hilbery Chaplin 86 Market Place Romford Essex RM1 3HQ

BANKERS Barclays Bank plc Charities, Housing and Education Team 1 Churchill Place London E14 5HP

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

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Livability is the new face of John Grooms and the Shaftesbury Society

50 Scrutton Street London EC2A 4XQ Tel: 020 7452 2000 Fax: 020 7452 2100 Email: info@livability.org.uk Website: www.livability.org.uk Registered charity no: 1116530 Company registration no: 5967087