Livability Annual Report 2013-2014

20132014 This book tells you what Livability did in the last year

Company Registration Number 5967087 Registered Charity Number 1116530

LIVABILITY Report and Accounts Year Ended 31 March 2014

Livability Annual Report & Accounts 2014

CONTENTS

Page No

A Message from our Patron, HRH The Princess Royal

3

Trustees’ Report incorporating: Introduction

4

Principal Activities, Core Values and Objects

6

Structure, Governance and Management

9

Strategic Report, incorporating:

Achievements and Performance

13

Financial Review

21

Plans for Future Periods

27

Principal Risks and Uncertainties

29

Statement of Trustees’ Responsibilities for the Financial Statements

32

Independent Auditor’s Report to Members of Livability

33

Consolidated Statement of Financial Activities

35

Group and Charity Balance Sheets

36

Consolidated Cash Flow Statement

37

Notes to the Financial Statements

39

Thank You to our Supporters

60

Reference and Administrative details of Livability, its Trustees and

61

Advisors

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Livability Annual Report & Accounts 2014

A MESSAGE FROM OUR PATRON, HRH THE PRINCESS ROYAL

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Livability Annual Report & Accounts 2014

INTRODUCTION

A message from Caroline Armitage, Chair of the Livability Board of Trustees

Since taking on the role of Livability Chair in July 2013, I have enjoyed every moment spent steering this brave and caring organisation so that it can fulfil its commitment to supporting disabled and disadvantaged people in the UK and beyond. As the largest Christian Disability Charity, supporting over 1000 disabled people every day, we are dedicated to full inclusion and equality, driven by our strong Christian faith and heritage.

I am delighted that our charity has performed so well during 2013/14 in spite of a tough economic climate which has challenged the voluntary sector like never before.

Our continued growth is a real credit to all Livability staff, volunteers and supporters.

The highlights of my year are undoubtedly the many opportunities I have had to meet some of the disabled people we support, as I spent time in our services, and being able to get to know them better.

Seeing the real difference that we make to their lives is incredibly humbling and inspiring.

As the organisation continues to implement its five year strategy, I strongly believe we can look forward to even greater achievements in 2014/15 and I would like to thank Livability’s staff, volunteers and supporters for their dedication and generosity.

Caroline Armitage Chair of the Board of Trustees

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Livability Annual Report & Accounts 2014

A message from Dave Webber, Livability’s Chief Executive

My first year as Livability’s Chief Executive has been incredibly rewarding.

I have worked for the organisation for many years in other roles, but it is a great privilege now to be able to lead its growth and plan for its future.

The care and support we provide is more relevant than ever as many of the disabled and disadvantaged people we support see their living standards threatened in a difficult climate where funding cuts have so deeply affected the social care sector and society in general.

Livability has a key role to play in preventing disabled people from being marginalised. My role is to make sure that we continue to offer disabled and disadvantaged people real choices and opportunities. Their independence and well-being depend on it.

This year we had to make difficult but necessary decisions, such as the closure of our much-loved Hinwick Hall College after more than 70 years of service to young people with disabilities.

Livability is blessed with dedicated staff and volunteers and with faithful supporters. Together we can look forward to seeing the organisation thrive as we further implement our ambitious and bold fiveyear strategy.

Dave Webber Chief Executive

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Livability Annual Report & Accounts 2014

PRINCIPAL ACTIVITIES AND CORE VALUES

Livability exists to provide opportunity and support to the lives of disabled and disadvantaged people.

We are also committed to ensuring that every individual has an equal opportunity to reach their full potential.

We work for all who need our services and can benefit from what we can offer and our aim is to place disabled and disadvantaged people at the core of all we do. We offer a wide and diverse range of services, working with people of all ages, aimed at providing independence and opportunity. The main areas of work are:  21 high quality residential care homes, 3 of which offer nursing care.  5 domiciliary/Supported Living lifestyle services with an additional 10 services registered to provide care and support to the community.  2 Further Education Colleges and 1 school with a Post-19 provision for 6 adults, all with registered care provision.  holiday provision in our accessible self-catering properties and hotel  business Enterprise training and support for disabled people to set up and manage their own businesses.  a Community Engagement team that works with Christian community activists and supports churches in tackling poverty and related social issues.  brain injury and spinal cord injury rehabilitation services that operate in the UK and overseas including India, Bangladesh, Vietnam, Malaysia, Sri Lanka and Nepal.  raising awareness of issues that are most important to disabled people and seeking to influence government policy, change attitudes towards disabled people and make sure that the voices of our disabled service users are heard.

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

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

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Livability Annual Report & Accounts 2014

Values: 

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

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

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

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

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

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

Ethos: 

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

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

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

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

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

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

These Objects are pursued in each case in a manner which authenticates the Christian Faith and its moral principles in a spirit of love and practical Christian service.

For the purposes of these Objects, “Christian Faith” means the Faith as revealed and expressed in the Holy Scriptures, both Old and New Testaments.

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Livability Annual Report & Accounts 2014

Our strategic goals: To guide our work, Livability’s Chair, Board of Trustees and Directors Management Team have agreed the following strategic goals to build and secure Livability’s future over the next five years.

By 2017, we will be the provider of choice, in our chosen geographical areas, of our specialist services. We will: 

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

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

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

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

Public Benefit: The Trustees have complied with their duty to have regard to the public benefit guidance published by the Charity Commission in exercising powers and duties to which the guidance is relevant. In preparing this report and the accounts, the Trustees have demonstrated their compliance with the requirements set out in the guidance by: 

providing a review of the significant activities undertaken by the Charity to carry out its purposes for the public benefit.

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providing details of purposes and objectives.

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providing details of the strategies adopted and activities undertaken to achieve the purposes and objectives.

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providing details of the achievements by reference to the purposes and objectives set.

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Livability Annual Report & Accounts 2014

STRUCTURE, GOVERNANCE AND MANAGEMENT Livability is a registered Charity (Charity Registered No. 1116530) and a company limited by th

guarantee (Company Registered No. 5967087) governed by its Articles of Association dated 7 November 2013. In the event of winding up, each Member’s liability is limited to £1. Originally

registered as Grooms-Shaftesbury, Livability was established in 2007 following a merger between The Shaftesbury Society and John Grooms, to combine the resources of these two charities. By then, Shaftesbury and John Grooms had served disabled people for over 150 years. Their merger created the UK’s largest Christian disability charity.

The Board of Trustees The Board of Trustees is a strategic and oversight Board responsible for the governance of Livability and ensuring that all activities are within its charitable objects. It sets the overall direction for the charity through strategic and operational business plans.

Trustees give their time voluntarily and receive no benefits from Livability. Some claim reasonable expenses in connection with their duties as Trustees (these are shown in Note 7 of the Accounts).

During the year a Board task group was created to review the governance framework. In March 2014 the Board approved recommendations to reduce the superstructure of committees to enable the Board to make overarching strategic decisions more effectively, free up executive time to concentrate on running the business of the charity and Trustee time to connect with the operations and service users. Committees responsible for strategic oversight of operations and resources together with an audit committee responsible for risk and internal control have been retained. A nominations committee has been established to develop succession plans for Board members along with an advisory group to review Board performance. Additional advisory groups have been established to review campaigning, community engagement, heritage and ethos.

The Board also accepted recommendations to strengthen the influence of service users on the governance of the charity by increasing trustee involvement in the Service Users’ Partnership Board and increasing the resources available to it.

During the year, Livability adopted revised Articles of Association which were completely overhauled in line with best practice and in compliance with the Companies Act 2006. Amongst other things, opportunity was taken to streamline the rotational provisions to facilitate more effective succession planning.

The progressive approach taken by the Board has been enhanced through the recent appointment of new trustees contributing a wealth of experience and bringing relevant additional skills. All new trustees undertake a comprehensive induction process designed to enable them to contribute

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effectively at an early stage. Through the use of Away Days, all trustees are given topical awareness of current issues and challenges arising from the wider context in which Livability operates.

The Board approves and regularly reviews the framework reserving matters for Board decision and for delegating authority to the Chief Executive Officer and the Executive Management Team.

The Chief Executive Officer The Chief Executive Officer (CEO) is responsible to the Board for the overall high-level direction and performance of Livability, for implementation of Board policy and for the ongoing delivery of the strategic objectives and business plans. The CEO is assisted by a group of senior executives with a very strong operational focus, known collectively as the Executive Management Team (EMT). The team meets on a six weekly basis throughout the year. A smaller executive team is responsible for strategic oversight and ensuring that plans and milestones for the delivery of strategic objectives are adhered to.

Group Structure Subsidiary Entities and Associated Charities

The Charity has two subsidiary trading entities, as follows:

Livability Contracting Services Limited is engaged in construction and other contracting services on behalf of Livability.

Livability Icanho Limited provides brain injury rehabilitation services at our Icanho centre in Suffolk.

Any net surplus arising in these companies is gift-aided to Livability.

As the corporate Trustee and sole legal member, Livability fully consolidates the results of The Shaftesbury Society and John Grooms, together with the active trading subsidiaries noted above.

In addition, the financial results of Kingsley Hall Church and Community Centre (KHC&CC - a company limited by guarantee and registered as a charity), of which Livability is the sole company law member, are consolidated into the accounts of Livability.

Livability also includes the results of Livability Ireland (a company limited by guarantee and registered as a charity in the Republic of Ireland), which supports the development of spinal injury rehabilitation services in a number of South Asian countries. Livability provides both financial and non-financial support to this charity.

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Livability Annual Report & Accounts 2014

Currently the two remaining subsidiaries, Shaftesbury Care Limited and Grooms-Shaftesbury Limited, are both dormant.

Trusts

In 2007 all but two trusts were vested in the corporate Trusteeship of Livability. The Shaftesbury Society remains the sole and corporate trustee of the Samuel Hale Bibby Endowment Fund whilst KHC&CC is the sole and corporate trustee of Kingsley Hall, Dagenham.

Employment of Disabled People As a charity supporting disabled people and building on the work of our Enterprise Agency which runs programmes to support people to set up their own business, we want to do more to make Livability an organisation where disabled people choose to work. Currently 4.7% of employees have declared themselves to have a disability (2013: 3.9%). As part of our Equality and Diversity policy, we commit to making adjustments to meet the needs of disabled job applicants, employees and volunteers. We are members of the ’Two Ticks - Positive About Disabled People’ scheme and, as such, we commit to interviewing all disabled applicants who meet the minimum criteria for job vacancies, and will consider them solely on their ability to do the job. We make every effort when employees become disabled to make sure they stay in employment and are able to access learning and development and career opportunities. Disability awareness training for all employees and volunteers is part of our core training programme. We recognise that we have more to do in this area, particularly in involving disabled employees in how we improve ways of attracting and retaining people with a disability. This will form part of our equality objectives, set and monitored by our Diversity Steering Group.

Employee Engagement We have some 1,200 (full-time equivalent) people working for us across a wide range of different units or projects and we are very proud of their commitment, which is at the heart of providing quality services to the people we support. We work hard to involve and engage effectively with our people, commissioning a review of internal communication during the year to gain feedback on what works and where we could improve. We met quarterly with our Employee Forum, as a representative body, to share information and obtain their views on a range of issues, including organisational performance and our strategic review process. During 2013/14 we also established local employee forums based on our ‘hubs’ of services to involve employees in local issues as well as feeding into the national forum. In November we held a celebration evening for our work. Staff and volunteers nominated 31 of their colleagues for outstanding contribution, of which five individuals and one team received The Princess Royal Livability Award directly from our patron HRH The Princess Royal.

Use of Volunteers During 2013/14 Livability has again benefited from a high level of commitment and superb work from volunteers across the Charity. From trusteeship to gardening to Friends Groups, the beneficiaries of

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Livability, spanning all generations, have been supported indirectly or directly by volunteers. Around 200 people have volunteered with us during this period, some for the first time, others as long-term volunteers continuing to support the dynamic vision of Livability to improve the lives of disabled and disadvantaged people. Friends Groups have continued to have impact in supporting and fundraising for their local project, raising money locally to be spent locally. Groups comprise local members of the community, local Livability staff, parents of service users and service users themselves for some groups. During the year we have developed new materials to attract and engage more effectively with volunteers, commissioning a survey to get direct feedback. Livability recognises that there is scope to engage far more people in a greater diversity of volunteering opportunities, from advocacy roles and local fundraising to supporting service users in accessing a greater variety of interests in their local community and has committed to recruiting to a dedicated role to support volunteering at Livability.

Senior Executive Pay Livability recognises that its employees are pivotal in the provision of high quality services to its service user, student and client groups and aims to attract and retain the skilled employees required and to reward them equitably for the roles that they carry out. Senior pay levels reflect the size of the organisation and the range of work carried out: health and social care with clinical and nursing services; education; and professional support services. Salaries are benchmarked against the median for these sectors. Livability has noted the recommendations of the National Council for Voluntary Organisations report into senior executive pay and our Remuneration Committee will be considering these and any revisions to recommended practice during the current financial year.

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Livability Annual Report & Accounts 2014

STRATEGIC REPORT: ACHIEVEMENT AND PERFORMANCE

In 2013/2014, we started putting into action our ambitious five year strategy with five objectives to meet our strategic goals. st

Our 1 objective is to deliver excellent service. In 2013/14, we: 

focused on developing and supporting our six new operational hubs and started working towards becoming the provider of choice for specialist services in the geographical areas that they cover.

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supported the hubs to offer a wide range of high quality, cost effective services that are valued by our service users.

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completed major improvement and development projects, such as finalising the construction of our Victoria Education Centre hydrotherapy pool.

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acquired a new site, the Russell Hotel in Bognor Regis, for our Ashley House care home to provide our residents with better, more modern facilities which will help them develop their independence further.

Our 2

nd

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objective is to have efficient overheads. In 2013/14, we: continued our drive to become more efficient and reduce our costs without affecting the quality of our services or our ability to grow and innovate.

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took the difficult but necessary decision to close our Hinwick Hall College. This was made necessary by the effects of the cuts in public spending and falling student income at the college, set against a background of rising costs. We will now focus on providing education through our two other specialist colleges, Nash College and Victoria Education Centre.

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reshaped our holiday provision to make it more sustainable.

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continued to tackle our pension deficit.

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reviewed a range of overhead areas and renegotiated some key supply agreements. rd

Our 3 objective is to implement effective decision making. In 2013/14, we: 

used our new hubs structure and streamlined Central Office functions to be able to make decisions and changes swiftly and effectively.

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nurtured a culture where our staff and volunteers all feel part of ’One Livability’ and believe that they have the opportunity to make a difference to the lives of some of the most disadvantaged and vulnerable people in our society.

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put in place new ways of working, such as: an internal Dashboard, to monitor progress against our Five Year Strategy objectives; a new Executive Management Team (EMT) group that better represent our services leadership; and a new internal auditing process.

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th

Our 4 objective is to increase our income. In 2013/14, we: 

maximised and developed our fundraising activities by putting in place a new fundraising strategy to be able to show our donors how the funds they generously donate can transform lives every day.

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capitalised on opportunities for growth of our services, for example by building on the success of the Enterprise Agency which will now be able to help an additional 1,700 disabled and disadvantaged people become self-employed.

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kept the voids in our residential units to a minimum. At the end of the financial year, residential vacancies had reduced to 14 (5.24%) from 15 (5.60%) at the year start. th

Our 5 objective is to do what we say we will. In 2013/14, we: 

provided services for disabled people and shaped by disabled people, at a time when they are facing increasing financial pressure. Through our Service Users Involvement team and by listening closely to the feedback that our beneficiaries and their families and carers give us, we continued to put the views of disadvantaged people at the heart of everything we do.

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increased our commitment to improving our services by forming a Quality and Practice Development Team to link care provision, feedback from service users and quality of provision into a continuous improvement cycle to ensure our services are safe, caring, effective, responsive and well led. We have developed a quality assurance framework and audit tools which include impact and outcome assessments, which we will develop further through 2014.

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used our links with Churches to have a real social impact on communities and to promote inclusion for disabled and disadvantaged people.

Our activities for 2013/14

Our charity provides a wide range of rehabilitation, care and education services for disabled and disadvantaged people for the public benefit. Working with individuals from the age of 4 into adulthood, all of our services put those we work with at their core and strive to provide opportunities for people to take control of their lives.

Highlights 

Provided education, and learning opportunities to over 200 children and young people through our school and colleges.

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Supported over 270 people through our care homes.

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Helped more than 300 clients to engage with and contribute to their communities through our Lifestyle Programmes.

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Livability Annual Report & Accounts 2014

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Cared for 130 people at our brain injury rehabilitation service, Livability Icanho.

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Trained 400 people and 40 organisations through our Happiness Course who are now able to deliver the material in their local community and champion community cohesion and wellbeing.

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Gave the opportunity through our Enterprise Agency to 628 disabled and disadvantaged people to set up their own businesses.

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Enabled the Spinal Injury Rehabilitation Centre in Nepal through our Livability Overseas team to increase its bed capacity to 50 and gain government recognition as a national rehabilitation centre.

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Influenced audiences of an average 17m people every month through the media coverage generated by our various activities.

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Won through our communications activities the IVCA Clarions Gold Award in the short film/video illustrating a third sector campaign category.

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Launched new microsites for our education establishments and a new e-newsletter and blog for the organisation.

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Provided online information about Livability and our services to a monthly average of 8,000 visitors to our website.

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Developed a new fundraising strategy to ensure that we are able to maximise our income and communicate effectively with existing and potential supporters.

Education Services Livability has provided education and learning opportunities to over 200 children and young people through our school and colleges. Through individually tailored programmes of learning, children and young people are supported to gain the skills and knowledge they need to live lives that they choose.

Students are encouraged to pursue outside interests and an active social life and develop links not just with their peers but also in the wider community. We supported young people in developing skills that maximise their personal independence and choice. We also provide life and work skills development opportunities that prepare for them for their future beyond education.

Residential Care and Lifestyle Programmes Our care homes, some of which also provide nursing care, have supported over 270 people who live with us for periods of anything from a few weeks of respite care to many years. The personalised care, support and encouragement provided by our specialist staff ensure that every individual has opportunities to learn practical and coping skills, regain confidence and take control of their lives to achieve their goals and ambitions. For some, this means continuing to make their own decisions and define and manage their care and the way they spend their time; for others, it is planning and learning what they will need to move on to a new phase of their life and a new home in the community.

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Livability Annual Report & Accounts 2014

Our Lifestyles programmes provided more than 300 clients with support to engage with and contribute to their communities. The individualised support, provided by our trained and experienced staff, has helped service users to grow their networks, improve their social links, enjoy new activities and gain skills to support their independence. Support packages are tailored carefully to the individual’s needs and goals and are designed to develop their ability to move on and take part in activities with reduced staff support and ultimately where appropriate independently. The support provided has, for some, led to work experience, volunteering and employment.

Brain Injury Rehabilitation Service Livability Icanho has continued to deliver its comprehensive interdisciplinary specialist service for people with acquired brain injury (e.g. stroke and trauma). Approximately 130 people have been seen by the service in the year.

It has also completed a year long project, including the training and supervision of other staff, by the consultant clinical psychologist and other members of the Icanho team. This has been to assist with the emotional and psychological needs of people with stroke currently in hospital or recently discharged. This project has now been completed.

The team ran a course on Cognitive Rehabilitation and a course on Visual Perceptual Deficits. Work with academic units both national and international in relation to research has been further developed.

Community Engagement While there are signs of recovery in the UK economy, it is evident that poverty and isolation continue to have profound effects on people’s health, well-being and life opportunities. Livability remains absolutely committed to playing its part, working particularly with the church, in helping communities become more resilient and inclusive.

This year we completed one of our biggest ever pieces of church and community engagement work delivering a partnership with the Diocese of Durham to benefit the many urban and rural parish churches in the area.

The department now focuses both on delivering high quality training and support for churches alongside spearheading Livability’s campaigning to seek justice and social inclusion for disabled and disadvantaged people. To communicate this broadened remit, our well established Community Mission team this year became the Community Engagement Directorate.

Over the last 12 months a brand new training resource Everybody Welcome? was developed to support the Churches Inc charter. It has impacted a number of churches including a large central London church with over 4000 regular attendees.

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Livability Annual Report & Accounts 2014

With over 1 million people expected to suffer from Dementia by 2020 Livability’s Dementia Friendly Churches programme has continued to train and resource churches to respond helpfully. This year Livability became a strategic partner with the Alzheimer’s Society and trained over 500 people.

As part of Livability’s response to a decline in individual and community well-being, The Happiness Course was published. This year over 400 people attended the course and 40 organisations were trained and licensed to deliver the material in their local community.

Our 15 link churches, where we are trustees or own the freehold, help us deliver our community engagement objectives. Across these churches over 5,000 people were supported through youth clubs, older people’s activities and other community programmes.

Livability continues to partner with Greenbelt, and we were delighted when the event received a silver award for its disability access from accessible venue campaigners Attitude is Everything. This year’s festival also gave us the opportunity to lead workshops on inclusion and well-being to over 1,000 people.

We are committed to developing tangible ways for measuring the true social impact of our work with disabled and disadvantaged people. The social impact analysis is about recognising the story of change which our beneficiaries, their families and wider society experience because of our interventions.

Livability Overseas For the past 20 years Livability's international programme has worked tirelessly to support the development of appropriate and sustainable healthcare and rehabilitation services in some of the world's poorest regions. These services can literally mean the difference between life and death for many thousands of disabled people. In 2013 the quality and impact of Livability's international disability and development programme gained national recognition when the organisation received the UK Civil Society Charity award for disability.

Our international programme in Nepal, Bangladesh and Sri Lanka, in partnership with local organisations is helping to increase the quality and coverage of essential services and to strengthen the capacity of the organisations and staff who deliver these services. In Nepal, the Spinal Injury Rehabilitation Centre increased its bed capacity to 50 and gained government recognition as a national rehabilitation centre.

We continue to support the development of the Asian Spinal Cord Network (ASCoN) which has become a model cross regional platform for learning and exchange. With 85 member organisations from 18 countries the network is a catalyst for positive change in the field of spinal cord injury management and rehabilitation.

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Livability Annual Report & Accounts 2014

In partnership with international bodies such as the International Spinal Cord Society we play a leading role in the design and delivery of internationally significant projects such as the development of www.elearnSCI.org. Since its launch, this resource has been accessed by over 30,000 people from 162 countries. A new project is underway to translate the elearning resource into Spanish, Portuguese, Mandarin, Russian and French.

Enterprise Agency The Enterprise Agency has continued to expand this year. Five new business advisers have been recruited since November as well as an Operations Manager to oversee the day to day running of the Agency. The expansion has been prompted by a continuation of the Enterprise Agency’s status as lead provider for the New Enterprise Allowance (NEA) Scheme in north London. The NEA Scheme is a Government programme which helps people on qualifying benefits to set up their own businesses.

The Enterprise Agency supports disabled and disadvantaged entrepreneurs through this process by providing advice on how to produce a business plan, set up a budget and cash flow, and also offering mentoring during the tough early stages of trading. This year the Enterprise Agency has had 1674 disabled and disadvantaged people start on the NEA scheme, 628 people have set up their own businesses and 211 have been trading for over 6 months. We are always interested in hearing from volunteers with commercial or financial experience who are interested in providing support to budding entrepreneurs.

Holidays Last year we restructured our accessible holiday provision to meet the demand and expectations of the disabled people, and their families and carers, who use Livability Holidays. In 2013/14, around 2,000 people enjoyed their stay in our fully accessible holiday accommodation

Fundraising We are extremely grateful for all the support received during the year towards our charitable work.

Donations from individuals, trusts, grant-makers and companies have helped to provide disabled and disadvantaged people with improved facilities, support for new activities to help them live life to the full, and self-employment training.

For example, this year we were able to open a new state-of-the-art hydrotherapy pool at Livability’s Victoria Education Centre in Poole, Dorset, built following a successful appeal to raise £2.8 million. th

Our Patron, HRH The Princess Royal and numerous supporters visited the college on the 10

December, 2013 to celebrate the recent completion of the pool. Using the hydrotherapy pool plays an important role in the development and the well-being of our students. Not only can it improve blood circulation, relieve pain and relax muscles, it is a great way for them to have a lot of fun too. We could not have done this without the support we received from many trusts and grant-makers and from the local community.

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Livability Annual Report & Accounts 2014

Legacies and donations from individuals have continued to play a vital role in our charitable activities.

We are thankful for a number of significant legacies from individuals who have been long-term supporters of our work.

Supporters who give regularly through a committed gift, or by donating to our appeals, help us to ensure we can fund areas of greatest need.

This year has also seen the development of support from companies and staff, contributing to both increased income and helping to raise awareness of Livability by taking part in the London Marathon.

We have also seen significant growth in the number of Friends Groups raising money for our local services.

Quality and Practice Development As we moved forward into 2013/14 we increased our commitment to continually improving our services by forming a Quality and Practice Development Team under the leadership of an Assistant Director.

The clear strategic objective of the quality team was to link care provision; feedback from service users; and quality of provision into a continuous improvement cycle to ensure our services are safe, caring, effective, responsive and well-led.

We have developed a quality assurance framework and audit tools including impact and outcome assessments, which we will develop further through 2014.

We have led the development of Active Support to personalise the support provided to our service users. We will continue to develop this approach throughout 2014/15.

The team brings together a wide range of staff who are experts in their fields to monitor and audit all our services.

A strategic imperative has been embedding the service user involvement officers into this new team.

They are linked with quality managers and using intelligent desktop management techniques they prepare for and carry out joint visits to ensure that the service user voice is heard, acted upon and where necessary lessons are learnt. We intend to invest further in our service user team so that we can improve communication with service users and use their views to improve our services further.

We carried out our Annual Service Users Survey to ask our service users and their relatives and friends, as well as independent health and social care professionals, what they thought about the care and support we provide. Of those who responded, 94% agreed that we treated each of our service

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users as an individual and offered a personalised service. 92% agreed that Livability enabled our service users to maintain the maximum level of independence, choice and control they are capable of.

98% also agreed that Livability assisted the disabled people we support to maintain confidence and a positive self-esteem.

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RESULTS FOR THE YEAR AND RESERVES

Income and Expenditure Account The operating environment continues to be extremely challenging and uncertain. Pressure remains on fees and margins on public sector contracts; however Livability’s residential care services continued to perform strongly and real growth was achieved in Enterprise services.

Livability’s income is mostly from Government and Local Authority contracts through its health, care, education and enterprise business streams. The pressure on commissioners to reduce both fees and the range and scope of services has continued. However, despite this, Livability’s financial performance for the year remained in line with 2012/13.

During 2013/14 the charity made the difficult decision to close Hinwick Hall College. The pressure on fees and a trend away from residential out-of-town placements for special educational need students, combined with high maintenance costs for the site made the college and the site unsustainable without significant financial support from the wider organisation.

Overall incoming resources, at £40.8m, were in line with 2012/13 performance of £40.3m, despite the challenging environment. Net income before impairment fell to a deficit of £0.2m (2013: surplus £1.9m), primarily due to a one-off charge of £1.1m in relation to the closure costs of Hinwick Hall College. Expenditure overall saw an increase to £41.0m (2013: £38.4) primarily due to the college closure costs, inflationary cost increases and one-off costs for interim staff.

Total funds fell by £0.7m to £44.7m (2013: £45.4m). The main changes other than the net deficit were a net impairment charge of £1.7m in relation to the carrying value of Hinwick Hall and Victoria Education Centre, a net improvement in the carrying value of other property assets of £2.0m on revaluation and the actuarial loss on two closed final salary pension schemes of £1.2m (2013: £2.0m).

Operating cash flow remained positive at £1.0m (2013: £1.3m), the main movements in cash flow arising from the purchase of fixed assets of £2.2m (2013: £2.5m) and proceeds from the sale of property assets at £1.5m (2013: £0.2m).

Education services saw income for the year fall by £0.2m to £17.3m (2013: £17.5m). Income was maintained by a strong financial performance at Nash College and school fees at the Victoria Education Centre, offsetting a fall in student numbers and residential placements in the three establishments and in particular at Hinwick Hall College.

Student numbers at Hinwick Hall College fell to 46 at the start of the year but with a steeper fall in higher fee residential placements to 20 students (2013: 29) and a higher proportion of day and weekday only students. Income was maintained by short-term transitional protection payments, limited to

21

Livability Annual Report & Accounts 2014

two academic years, from the Education Funding Agency. The payments are designed to provide some protection to colleges experiencing a reduction in student numbers due to Local Authority budget cuts. However, the proportion of day provision students increased such that income for the year fell from £3.9m to £3.8m before transitional relief payments. Spending on planned maintenance was also significantly reduced following the closure announcement; however the college year end outturn remained a deficit before costs of closure.

Nash College retained student numbers at a constant 83 throughout the year, with an increase in income of £0.1m to £7.5m (2013: £7.4m). A major programme of planned maintenance (total programme value of £1.2m) began following confirmation of a grant of 50% matched funding from the Education Funding Agency. The works programme will run for 18 months to March 2015 and will significantly improve the quality of the built environment for the students and staff.

The Victoria Education Centre and Sports College student numbers fell to 91 in 2014 (2013: 97). A Post-19 service commenced in September 2013 with 12 students using the service in the year to March 2014. Income from nursing, therapy and care (before Post-19) all declined and for the full year were £0.3m lower than the prior year. This was offset partly by an increase in school fees of 5.7% on the prior year, due to higher support needs for new students and the start of the Post-19 service.

Overall gross profit in education services fell by £0.3m to £6.1m (2013: £6.4m) and surplus before depreciation, impairment and Hinwick closure costs fell by £0.6m to £1.5m (2013: £2.1m), with the three establishments all seeing a fall in operating surplus.

The market and funding for special education needs placements is changing, however the full impact of these changes is not yet understood. Livability has therefore undertaken a detailed review of the demand and of its operating model for education services to enable a response to be implemented and mitigating action taken to ensure the services can continue in the new market.

Residential care services also saw only a small increase in income to £13.9m in 2014 (2013: £13.7m) The growth in income represents a good financial performance as funders are continuing to reduce budgets and our strong management of voids has reduced the impact of commissioners taking longer to confirm placements.

Gross margins in residential care were slightly reduced to 39% (2013: 40%) as increased costs in direct staff payroll and agency spend (to provide short term cover for sickness and absence) offset the increase in income. Surplus before depreciation and one-off gains in 2014 fell by £0.2m to £2.5m (2013: £2.7m) an operating margin at EBITDA of 18% (2013: 20%).

Livability’s smaller business streams saw a consistent financial performance in both Lifestyles services and housing services.

22

Livability Annual Report & Accounts 2014

Lifestyles and supported living services income were both in line with the prior year at £2.9m (2013: £2.9m) and the surplus before depreciation was also maintained at £0.13m (2013: £0.11m) resulting in an operating margin of 4% for both years. Housing income was in line at £0.3m and surplus before depreciation at £0.14m for both years.

Livability Icanho, our acquired brain injury rehabilitation service based in Suffolk, saw a further year with no inflationary increase in its main contract with the NHS, whilst direct staff payroll and patient transport costs continued to increase in line with clinical pay scales and rising fuel costs. Income was maintained at £0.8m for both years however an increase in direct staff costs saw gross margin fall to £19k (2013: £26k) and a deficit for the full year of (£95k) (2013: surplus £11k). Negotiations are continuing with the CCG commissioners to increase the scale of the service or to restrict its scope to bring the service back into surplus.

Livability took the strategic decision during 2013/14 to undertake a gradual and phased withdrawal from its holidays business in the present, infrastructure-based form. A number of holiday properties have been withdrawn from the market and sold. The remaining holidays properties continued to trade during 2013/14; income fell to £619k (2013: £772k) and a deficit was seen for the full year of (£134k) (2013: surplus £27k) mainly due to urgent major property repair costs and the costs of closing the Promenade Hotel in Minehead.

The Enterprise Agency continues to be a significant success and the award of further government grants resulted in income for the full year growing to £0.6m (2013: £19k) and an operating surplus of £0.2m (2013: deficit £62k).

Livability’s core charitable activities were supplemented by Community Engagement continuing to be central to the organisation’s ethos of Christian service, providing education and training for churches on a wide range of disability, health, well-being and community projects. The charity’s net contribution to Community Engagement work was £0.2m. The net contribution to Livability’s award winning overseas spinal injury rehabilitation work was £0.1m.

Fundraising Active support from Livability’s donors was a significant feature of the financial year, despite the economic climate and falling donations across the charity sector. Voluntary income fell by £0.3m to £4.5m for the year (2013: £4.8m); net contribution from gifts and donations remained constant at £3.4m (£2.5m unrestricted; £0.9m restricted) (2013: £3.4m; £1.4m unrestricted; £2.0m restricted).

The most significant change in voluntary income was the receipt of legacies which increased by £0.8m to £2.2m (2013: £1.4m). Individual giving also increased by £0.2m to £0.7m (2013: £0.5m).

23

Livability Annual Report & Accounts 2014

The fundraising team have put in place a new strategy and investment in growing the individual giving donor base is planned for 2014/15.

Central Support Costs Costs allocated to central support have increased by £0.9m to £4.4m (2013: £3.5m). Benefits have been realised in recurring and longer term reductions in overheads from reduced central office headcount and improved terms following contract negotiations with some key suppliers. However these benefits are being offset, in the short term, by non-recurring interim management and central office refurbishment costs, investment in strategic planning and business development, and the centralisation of some support services. Governance costs have increased due to one-off costs for the recruitment of new Trustees, the development of Livability’s five-year strategic plan and the involvement of interim staff in the Charity’s governance processes.

A charge of £1.7m has also been reflected in the accounts for the impairment of fixed assets, primarily at Victoria Education Centre (£1.1m) and for the site at Hinwick Hall College (£0.6m). The impairment at Victoria Education Centre arises as a result of the cost of the new hydrotherapy pool not being reflected entirely in an increase in total asset value for the site in addition to the downward pressure on site values as a result of the government’s austerity programme.

Key balance sheet movements Fixed assets have seen significant changes in the year, with additions of £2.2m, disposals and transfers to held for sale totalling £4.2m and upward revaluations of £2.0m.

The main additions have been for the hydrotherapy pool at Victoria Education Centre of £1.4m, opened by the Princess Royal in December 2013, in the planned maintenance programme at Nash (50% match funded by the EFA) £140k, IT systems implementation and improved disaster recovery £150k and new vehicles £100k, many of which were supported by fundraising by local Friends Groups.

There were disposals of properties at Wroxham, Grove Road, a self-catering holiday property in Clacton and the Promenade Hotel in Minehead. Cash reductions mainly arose from expenditure on the hydrotherapy pool and other capital expenditure. At the end of the financial year a group of properties that are surplus to requirements from Livability’s holiday portfolio and Hinwick Hall College are being actively marketed and with the intention of disposal by the next year-end. The carrying value of these properties is included in assets held for sale.

The transfer of responsibility for the funding of the care elements of special needs education for older students from the Education Funding Agency (EFA) to local authorities has led to changes in payment profiles with a number of authorities paying in advance for services. The funding profile for the

24

Livability Annual Report & Accounts 2014

Enterprise work has also seen cash received ahead of the provision of services. These changes have led to the increase in deferred income recorded in the accounts.

A significant cash outlay continues to be contributions towards deficit reduction plans for two closed defined-benefit pension schemes, the total cash contribution for the year being £1.4m which will increase in the 2014/15 year to £1.6m.

Prudent long-term deficit funding plans have been agreed with the Trustees of both schemes, which are intended to fully recover the deficits by 2026. An increase of £0.4m in the reported value of pension scheme deficits under FRS 17, at £11.5m (2012: £11.1m), arises principally from assumption changes in member longevity, valuation changes and interest charges, increasing the net deficit by £2.7m, less contributions to the schemes and returns from assets of £2.4m.

Bank loans have been reduced through the payment of regular instalments. There were no other material changes in working capital throughout the year, with the organisation managing its cash flows to ensure sufficient liquidity to continue trading at the same levels and volumes. New loans were agreed to finance the purchase of Russell Hotel (as the site to replace the Ashley House residential care home) and for the acquisition of four small learning disability care homes. Both transactions completed after the 31 March 2014 year end.

Cash flow and working capital Operating cash flows continued to be positive, although lower than in 2013/14.

Livability’s cash position at the end of the year remained strong at £7.9m, a rise of £0.2m from the 2013 balance of £7.7m as a result operating cash inflows and the proceeds from disposals exceeding operating capital investment requirements. However £2.7m of the cash balance is represented by restricted funds which will be invested in new facilities and the refurbishment of existing facilities.

Reserves policy The Trustees consider a range of between five and ten weeks’ expenditure to be an appropriate level of general reserves for Livability to hold. This allows for flexibility to cover the short-term risks and uncertainties faced by Livability, as well as the volatility of voluntary income, the cash flow timing of capital investment, the maintenance of adequate levels of working capital and to cover the Charity’s contractual obligations to its staff.

The General Fund, which are those unrestricted funds not invested in fixed assets, designated for specific purposes or otherwise committed, stood at £7.3m at 31 March 2014, equivalent to 9.8 weeks of unrestricted General Fund expenditure (31 March 2013: £4.0m, equivalent to 5.6 weeks of unrestricted General Fund expenditure). The main movement during the year has been the transfer of the carrying value of assets held for disposal from designated funds to the General Fund.

25

Livability Annual Report & Accounts 2014

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

The Endowment Reserve Fund represents those funds where Livability acts as Sole Corporate Trustee and which are required to be amalgamated with Livability’s results.

The aggregate deficit of the two closed final salary pension schemes is shown, in accordance with FRS 17, as a long-term liability in the Consolidated Balance Sheet. The corresponding pension deficits are shown as a negative reserve within the Charity’s Statement of Total Funds. These amounts do not represent an immediate cash requirement from the Charity’s funds and deficit recovery plans have been agreed with the respective scheme Trustees.

Investment Policy Because of its reserves policy, at any point in time Livability may hold cash and other assets that are surplus to immediate requirements. The policy of the Board of Trustees is to invest surplus funds to meet the following objectives: 

To match the risk and maturity of the investments with the requirement for funds;



To invest in liquid assets so that they can be converted to cash quickly; and



To invest in a way that does not conflict with the Charity’s aims and objectives and which is prudently risk free.

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

26

Livability Annual Report & Accounts 2014

STRATEGIC REPORT: PLANS FOR FUTURE PERIODS

As part of our new strategy and five-year plan, we set ourselves measurable and ambitious goals and objectives, in order to build and secure Livability’s future.

We started the process of implementing them in 2013/14 and next year will be a really exciting period in which we continue to put in action this clear vision for growth and excellence. st

Our 1 objective is to deliver excellent service. In 2014/15 we will: 

continue to develop and support our operational hubs so that we work towards becoming the provider of choice for specialist services in the geographical areas that they cover.



complete major improvement projects, such as the redevelopment of our Ashley House residential home. These projects will have a crucial impact on the quality of life of our service users and will show our commitment to providing disabled people with modern facilities that truly meet their needs.



explore and take advantage of opportunities for expanding our services in places such as Hampshire.



continue to roll out new IT infrastructure to reduce the work required in back-office processing and to free resources to focus on service delivery



have in place a monitoring and reporting system to measure, analyse and report on the social impact Livability has helped achieve. This tool will help us review and continue to maximise the social impact for our direct and indirect beneficiaries.

Our 2

nd



objective is to have efficient overheads. In 2014/15 we will: continue our drive to become more efficient and reduce our costs, without affecting the quality of our services or our ability to grow and innovate.



complete the sale of our Hinwick Hall College site and invest the proceeds in our other services.



have in place a fully operational Dashboard system to share information effectively and monitor progress by the end of summer 2014.



continue to renegotiate suppliers’ contracts wherever possible. rd

Our 3 objective is to implement effective decision making. In 2014/15 we will: 

continue to use our new hubs structure and streamlined Central Office functions to be able to make decisions and changes swiftly and effectively.



continue to nurture a culture where our staff and volunteers all feel part of “One Livability” and believe that they have the opportunity to make a difference to the lives of some of the most disadvantaged and vulnerable people in our society.

27

Livability Annual Report & Accounts 2014

th

Our 4 objective is to increase our income. In 2014/15 we will: 

implement our new fundraising strategy to maximise and develop our fundraising activities and be able to show our donors how the funds they generously donate can transform lives every day.



run successful capital appeals where appropriate, including supporting the re-development of Ashley House.



launch our new ambitious Home Design Appeal to support the upgrade of the facilities in many of our care homes.



continue to scrutinise our services and activities to make sure that everything we do offers disabled people choice and value for money; reshaping some of our service provision where necessary.



capitalise on opportunities for growth of our services, for example by continuing to build on the wonderful success of the Enterprise Agency.



continue to seek appropriate acquisitions and merger opportunities. th

Our 5 objective is to do what we say we will. In 2014/15 we will: 

through our Service Users Involvement team and by listening closely to the feedback that our beneficiaries and their families and carers give us, put the views of disadvantaged people at the heart of everything we do so that, at a time when disabled people are facing increasing financial pressure, our organisation provides services for disabled people, shaped by disabled people.



further develop our campaigning activities so that Livability continues to champion inclusion and challenge injustice by tackling the many barriers that disabled people still face every day.



continue to use our links with Churches to have a real social impact on communities and to promote inclusion for disabled and disadvantaged people.

28

Livability Annual Report & Accounts 2014

STRATEGIC REPORT: PRINCIPAL RISKS AND UNCERTAINTIES

The Board seeks assurance that effective systems of financial and other forms of control appropriate for the scale and complexity of the charity are operating, including controls necessary to ensure the integrity of accounting records and transactions, for safeguarding tangible and intangible assets and to ensure the prevention and detection fraud.

Control is underpinned by accountabilities and authority levels across all areas of Livability’s operations together with key financial policies and procedures which are kept under review on a regular basis. The Board has increased the resources available for internal audit. A tender process has been commissioned to further enhance the profile and value added from the internal audit service.

The internal auditor has direct access to the independent chair of the Audit Sub Committee.

During the year, the Board sanctioned investment in the development of a comprehensive Dashboard using automated software to collect and collate a range of key performance indicators covering the whole range of Livability’s operations and activities. The Dashboard will inform decision-making by the Executive Management Team (EMT) and strengthen oversight by the Board and its sub-committees.

The strategic risks facing Livability are documented in a risk register which evaluates the probability of the risks occurring and assesses their impact on the charity. Actions to mitigate each risk are detailed, assigned and monitored. The risk register is reviewed regularly by the EMT and the Audit SubCommittee, and their reports are, in turn, reviewed by the Board. A whistleblowing procedure provides an opportunity for staff and volunteers to ‘blow the whistle’ on situations presenting a risk to the organisation and/or service users. Every whistleblowing activation is considered by the Executive Management Team and the Audit Sub-Committee.

During the year, Livability commissioned an external review of its arrangements for reporting and managing risk. It is anticipated that the outcomes from this review will result in an enhanced approach to this vital area particularly in embedding processes throughout the organisation and securing greater ownership and responsibility for actions to mitigate risk.

The following strategic risks have been identified by the Board, in no particular order of severity:

1.

Reputation

Livability’s reputation is its most important asset. Any charity engaged in the provision of services for disabled and disadvantaged people, particularly one with a Christian ethos, recognises the damage to its reputation that could ensue from a significant event relating to safeguarding, health and safety, fraud, or any other serious non-compliance issues. During the year, the human resources responsible for quality, practice and clinical governance have been combined into a new team operating to a new

29

Livability Annual Report & Accounts 2014

Quality Control Framework. This team is providing valuable additional assurance over and above external inspection regarding the quality and effectiveness of the services Livability provides for its beneficiaries.

2.

Reserves, income and operating margins

Livability has experienced continued pressure on the margins which need to be maintained for longterm sustainability. Largely static earnings from fees have increased reliance on voluntary income in an extremely competitive marketplace. Changes in income streams for post-16 learners with complex additional needs has resulted in the withdrawal from one of Livability’s specialist further education colleges and an increased focus on tailoring the services at the remaining college to the emerging new purchasing environment. An ongoing programme of investment in planned maintenance and improvement work is essential to maintain the quality of facilities required for service provision. Whilst Livability has been successful in obtaining significant matched funding for some elements of the programme there is an ongoing demand to be financed from unrestricted funds. Whilst reserves have been maintained in line with the policy set by Trustees, Trustees are aware of the need for continuous reforecasting processes covering both the short and medium terms to identify emerging issues and plan appropriate action. Alongside ongoing strategies to reduce the cost base of the Charity through structural changes, procurement efficiencies and more effective use of information and communication systems, the Board is actively seeking opportunities for long term growth through acquisition, collaboration and other forms of partnership in the core areas of operation.

3.

Pensions

Livability’s two closed defined benefit pension schemes are subject to additional funding risks having regard to their liabilities and assets due to changes in life expectancy, inflation, future salary increases and broader economic and monetary policy (such as quantitative easing) affecting the market value of and returns from investments. Livability continues to fund additional deficit recovery plan payments for both schemes and these were increased for one of the schemes during the year following the most recent triennial valuation. In addition, compliance with auto enrolment requirements has added to the pension costs borne by Livability and there is no doubt that overall this has severely constrained Livability’s ability to increase investment in the renewal and development of its facilities and services.

Livability has sought to minimise additional funding contributions by engaging independent actuarial advice to ensure recovery plan payments are set at an affordable and realistic level having regard to the technical provisions of each scheme and the relative strength of Livability’s covenant.

30

Livability Annual Report & Accounts 2014

Going Concern

No material uncertainties that cast significant doubt about the ability of the Charity to continue as a going concern have been identified by the Trustees.

Livability’s charitable activities, together with the factors likely to affect its future development, performance and financial position, are set out in the Trustees’ Annual Report.

The Charity’s result for the year, cash flows, liquidity and borrowings, net asset values and reserves are fully detailed in the Financial Statements and accompanying notes on pages.

The Trustees have considered the diversity and degree of volatility of the Charity’s funding sources, its cash flow forecasts, levels of working capital and the strength of its Balance Sheet, and have concluded that there is a reasonable expectation that Livability can manage its business risks and has sufficient resources to continue in operational existence for the foreseeable future. Consequently, the Trustees have continued to adopt the going concern basis of accounting in preparing these Financial Statements.

Auditors BDO LLP have indicated their willingness to continue as independent auditors and a resolution to reappoint BDO LLP as our external auditors will be proposed at the next Annual General Meeting.

31

Livability Annual Report & Accounts 2014

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS The Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees Annual Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent charity and of the incoming resources and application of resources, including its income and expenditure, of the group for the year. In preparing those financial statements the Trustees are required to:     

select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgments and accounting estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the group and parent charity and enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the group and parent charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity's website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements and other information included in annual reports may differ from legislation in other jurisdictions.

DISCLOSURE OF INFORMATION TO AUDITOR Each of the members of the Board of Trustees has confirmed that:  

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

The report of the Board was approved by the Board on its behalf by:

2014 and signed on

M P A Langworth Company Secretary

32

Livability Annual Report & Accounts 2014

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF LIVABILITY We have audited the financial statements of Livability for the year ended 31 March 2014 which comprise the Consolidated Statement of Financial Activities, the Group and Charity Balance Sheets, the Consolidated Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditor As explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Financial Reporting Council’s (FRC’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the FRC’s website at www.frc.org.uk/auditscopeukprivate.

Opinion on financial statements In our opinion the financial statements:  give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 March 2014 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;  have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and  have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the trustees’ report, which includes the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements.

33

Livability Annual Report & Accounts 2014

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:  the parent charitable company has not kept adequate accounting records, or returns adequate for our audit have not been received from branches not visited by us; or  the parent charitable company financial statements are not in agreement with the accounting records and returns; or  certain disclosures of trustees’ remuneration specified by law are not made; or  we have not received all the information and explanations we require for our audit.

Ian Mathieson, Senior Statutory Auditor for and on behalf of BDO LLP, Statutory Auditor London, United Kingdom Date: BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

34

Livability Annual Report & Accounts 2014 Consolidated Statement of Financial Activities for the year ended 31 March 2014 (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 services Other incoming resources: Trusts Net gain on disposal of fixed assets Total incoming resources Resources expended Cost of generating voluntary income Direct charitable expenditure Other resources expended: Other costs Governance costs Total resources expended before impairment Net income / (outgoings) for the year before transfers Transfers between funds Net income / (outgoings) for the year before impairment Impairment of fixed assets Net income / (outgoings) for the year before other recognised gains / (losses) Other recognised gains / (losses) Net gain / (loss) on revaluation of fixed assets for Charity’s own use Gains / (losses) on investment assets Actuarial losses on defined benefit pension schemes Net movement in funds

Restricted Funds

Permanent Endowment Funds 2014

Total Funds

Total Funds

2014

2013

2014

2014

Note

£000

£000

£000

£000

£000

2 3

3,638 108

905 –

– 26

4,543 134

4,808 163

2

35,621

226

–

35,847

35,265

–

–

52

52

52

200 39,567

– 1,131

– 78

200 40,776

44 40,332

4 4

1,146 38,449

– 769

– 111

1,146 39,329

1,412 36,544

4 4

102 402

– –

– –

102 402

114 320

40,099

769

111

40,979

38,390

14

(532) 1,975

362 (1,975)

(33) –

(203) –

1,942 –

4,8

1,443 (1,686)

(1,613) –

(33) –

(203) (1,686)

1,942 (130)

(243)

(1,613)

(33)

(1,889)

1,812

8

1,993

–

–

1,993

1,034

9

295

26

125

446

182

19

(1,248) 797

– (1,587)

Reconciliation of funds Balance at 1 April 2013

33,451

6,969

Balance at 31 March 2014

34,248

5,382

– 92

(1,248) (698)

(1,986) 1,042

4,989

45,409

44,367

5,081

44,711

45,409

Total resources expended for the year including impairment were £42,665,000 (2013: £38,520,000) (see Note 4). The loss disclosed in accordance with the Companies Act 2006 was £1,889,000 (2013: profit of £1,812,000). All the above results are derived from continuing activities. The accompanying Notes to the Financial Statements form an integral part of these financial statements. There were no recognised gains or losses other than those reported above.

35

Livability Annual Report & Accounts 2014 Group and Charity Balance Sheets at 31 March 2014 Company Registration Number 5967087 Group 2014

Group 2013

Charity 2014

Charity 2013

£000

£000

£000

£000

46,722 3,638

49,382 3,257

45,644 3,077

48,330 2,720

50,360

52,639

48,721

51,050

2,864 3 2,426 7,915

– 35 2,132 7,661

2,864 3 2,526 7,753

– 34 2,146 7,600

13,208

9,828

13,146

9,780

(4,787) (1,060)

(4,210) –

(4,903) (1,060)

(4,288) –

7,361

5,618

7,183

5,492

57,721

58,257

55,904

56,542

12

(1,520)

(1,704)

(1,520)

(1,704)

19

(11,490) 44,711

(11,144) 45,409

(11,490) 42,894

(11,144) 43,694

14 14 14

38,408 7,330 (11,490)

40,635 3,960 (11,144)

38,315 7,311 (11,490)

40,566 3,951 (11,144)

34,248

33,451

34,136

33,373

5,382 5,081

6,969 4,989

3,707 5,051

5,360 4,961

44,711

45,409

42,894

43,694

Note Fixed assets Tangible assets Investments Total fixed assets Current assets Assets held for disposal Stock Debtors Bank and cash in hand Creditors Amounts falling due within one year Provisions for liabilities and charges

8 9

10 11

12 13

Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year Defined benefit pension liability Net assets

Funds Unrestricted funds Designated funds General fund Pension scheme deficit Total unrestricted funds Restricted funds Endowment funds Total funds

14 14

The accounts were approved and authorised for issue by the Board of Trustees on their behalf by

and signed on

Caroline Armitage Chair of Trustees

36

Livability Annual Report & Accounts 2014 Consolidated Cash Flow Statement for the year ended 31 March 2014

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

Note

2014 £000

2013 £000

A B C

949 54 (569)

1,307 68 (2,372)

Net cash inflow / (outflow) before financing Financing

D

Increase / (decrease) in cash in the year

434

(997)

(180)

(193)

254

(1,190)

2014 £000

2013 £000

Increase / (decrease) in cash in the year Cash outflow from financing

254 180

(1,190) 193

Change in net funds

434

(997)

Reconciliation of net cash flow to movement in funds

E

Net funds at the start of the year

5,851

6,848

Net funds at the end of the year

6,285

5,851

Notes to the cash flow statement

2014 £000

2013 £000

(1,889)

1,812

937 1,686 (200) 534

895 130 8 2,845

A. Reconciliation of net incoming / (outgoing) resources to net cash inflow from operating activities Net incoming / (outgoing) resources Non-cash items affecting incoming / (outgoing) resources Depreciation of fixed assets Impairment of fixed assets Loss / (profit) on disposal of fixed assets Operating adjustments Net investment income Interest receivable Interest payable Decrease / (Increase) in stock (Increase) / decrease in debtors Increase / (decrease) in creditors & provisions Decrease in pension deficit Net cash flow from operating activities

(113) (21) 80 32 (294) 1,633 (902) 949

(108) (53) 93 (1) (101) (413) (955) 1,307

37

Livability Annual Report & Accounts 2014 Notes to the cash flow statement (cont'd) B. Returns on investment and servicing of finance 2014 £000 Investment income Interest received Interest paid

2013 £000

113 21 (80)

108 53 (93)

54

68

2014 £000

2013 £000

(2,156) 1,522 (6) 71

(2,518) 169 (23) –

(569)

(2,372)

2014 £000

2013 £000

Loan repayments

(180)

(193)

Net cash flow from financing

(180)

(193)

Net cash flow from returns on investment and servicing of finance C. Purchase and sale of fixed assets

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

E. Reconciliation of net cash flow to movement in funds

At 1 April 2013 £000

Cash flow At 31 March 2014 £000 £000

Cash at bank and in hand Short term deposits

1,518 6,143

Cash as defined by FRS 1 Cash investments

7,661 –

254 –

7,915 –

7,661 (1,810)

254 180

7,915 (1,630)

5,851

434

6,285

Cash disclosed in the balance sheet Bank loans Net funds

3,739 (3,485)

5,257 2,658

38

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 1. Accounting policies

Accounting Basis The Financial Statements have been prepared on a going concern basis in accordance with applicable accounting standards and 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 and the Companies Act 2006.

The principal policies that have been adopted by the Board of Trustees are set out below.

Consolidation The consolidated financial statements include the financial statements of the Charity and its subsidiary undertakings, John Grooms, The Shaftesbury Society, Livability Contracting Services Limited, Livability Icanho Limited, Kingsley Hall Church and Community Centre and Livability Ireland, consolidating them on a line-by-line basis.

The income and expenditure of local groups who support fundraising activities for service users at the Charity’s units is included in the Financial Statements of the Charity, provided that such activity has not been set up as a separate “Friends Group” charity. In addition, the results and balance sheet include those of various trusts where Livability or a member of the consolidated group is able to exercise control over the trust. The results and balance sheets of these trusts are shown under restricted funds or permanent endowment funds in the Accounts according to the nature of the trust (see note 14).

Incoming Resources All incoming resources, whether restricted, unrestricted or endowment, which become available to the Charity are included in the Consolidated Statement of Financial Activities (SOFA) as soon as it is prudent or practicable to do so. All items of income are accounted for on an accruals basis, including legacies which are accounted for only after notification and where there is reasonable certainty of ultimate receipt and the amount concerned. However no amounts are included in the Accounts for life interests in legacies, as the timing of receipt is considered too uncertain. Such reversionary bequests are accounted for on the death of the life interest.

Resources received in advance of expenditure being made are deferred where conditions have been imposed by the donor or fee payer that amount to pre-conditions of use. Deferred income is released to match the related expenses in subsequent periods.

Donated services and gifts in kind are recognised if their value is able to be estimated reliably. The gift is recognised on the date that the goods or services forming the gift become receivable. The gift is recognised in income at the market value of the goods or service received and, depending on the nature of the gift, included in resources expended or additions to fixed assets at the same value and at the same time.

Donations received in relation to specific projects are credited to the project concerned. Costs of raising funds, including an appropriate allocation of management time, are shown on the face of the SOFA and are deducted from appeal totals before allocation to projects.

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.

39

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 1. Accounting policies cont'd

Capital Grants Capital grants are taken as income in the year in which the grant was given. If a donor has a remaining interest in an asset, for example through a request for a return of funds should the purpose of an asset for which the grant was given change in some way, the existence of the donor’s interest is disclosed in the notes to the accounts.

Discharge of Restrictions on Grants and Donations Funds given by donors to Livability for a specific activity, project or location are logged on the fundraising database in such a manner as to link the donation to the purpose for which it is given. To ensure that donors’ wishes are discharged correctly, donations for a specific activity, project or location of the Charity are accounted for as restricted funds. The restriction is only released when the activity, project or location has benefited from the spending of the donation for the purpose on which it was given. In the event that funds were given for a particular location but a specific use was not prescribed by the donor, such funds will be utilised at that location, using the Trustees’ discretion.

Governance Costs Governance costs are those costs associated with the governance arrangements of Livability. The costs comprise mainly internal and external audit, legal advice for Trustees and costs associated with constitutional and statutory requirements. Included in this category are also costs associated with the strategic activities of the organisation and a portion of allocated overheads in relation to strategic activities.

Fundraising Costs Fundraising costs comprise salary costs and other associated expenditure relating to the generation of voluntary income. These appear on the face of the SOFA as “Cost of generating voluntary income”.

Operating Leases Income and costs with respect to operating leases are either credited or charged to the SOFA, on an accruals basis, in line with agreements in place during the year.

Pension Costs The Charity maintains Group Personal Pension arrangements which are open to all qualifying members of staff. Contributions paid by the employer are directly expensed in the SOFA. In addition, the Charity is responsible for two defined benefit pension schemes which have been closed to new members and further accrual of benefits since June 2007. Details of the schemes are disclosed in Note 20 to the Financial Statements.

In calculating the pension scheme deficits, the requirements of FRS 17: “Retirement Benefits” have been applied, namely that: • Pension scheme assets are stated at market value at the balance sheet date.

• Pension liabilities are measured using the projected unit method and are discounted using the current rate of return on a high-quality corporate bond of equivalent term and currency to the liabilities.

The scheme deficits on an FRS 17 basis are recognised as a defined benefit pension liability in the Accounts and matched by a corresponding pension deficit reserve.

40

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 1. Accounting policies cont'd

Pension Costs cont'd The annual net movement in the pensions reserve comprises four main elements: 1. The monetary contributions paid into the scheme by the employer.

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 2014.

3. Other finance charges – the difference between the expected return on the schemes’ assets and the interest on the schemes’ liabilities.

4. Actuarial gains and losses – changes in the actuarial deficits or surpluses because the actuarial assumptions have changed or events have not coincided with the actuarial assumptions made for the last valuation.

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

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

Taxation Status The primary purpose activities of the Charity and its charity subsidiaries are exempt from Corporation Tax under the provisions of the Corporation Tax Act 2010. Trading subsidiaries donate any profits generated to Livability under the Gift Aid rules. Therefore no liability to Corporation Tax arises in these accounts.

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

Asset category Freehold buildings Horticultural buildings Equipment, fittings and furniture Plant and machinery Cars Minibuses and coaches Computers and software Chalets and mobile homes

Useful life

Residual value

20 - 100 Years 25 years 5 years 20 years 4 years 6 years 3 years 10 - 30 years

Nil Nil Nil Nil Nil Nil Nil Nil

Annual depreciation 1% - 5% 4% 20% 5% 25% 17% 33.30% 3.33% - 10%

Freehold land is not depreciated.

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

An annual impairment review of buildings with remaining economic lives of more than 50 years from the balance sheet date is carried out in accordance with FRS 15: “Tangible Fixed Assets”.

Freehold property is held at existing use market value in the balance sheet and undergoes regular market valuation by either external professional valuers or by in-house employees with appropriate knowledge and experience, having regard to various external indicators and in accordance with the Royal Institute of Chartered Surveyors’ Appraisal and Valuation Manual. The valuation cycle completes every five years such that every property is valued at least once every five years. Gains and losses on revaluation are reflected in the lower part of the SOFA as unrecognised gains or losses.

41

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 1. Accounting policies cont'd

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. Assets held for disposal Assets held for disposal are assets that would otherwise be classed as fixed assets, are being actively marketed for disposal and are expected to be disposed of within 12 months of the year. Assets held for disposal are held at net realisable value being the expected disposal prices less costs of disposal. Any impairment of such assets is recorded in fixed assets before transfer to current assets.

Stock 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.

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.

42

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 2. Incoming resources Unrestricted Funds

Restricted Funds

Permanent Endowment Funds 2014 £000

Total Funds

Total Funds

2014 £000

2013 £000

2014 £000

2014 £000

12

381

–

393

714

2

490

–

492

1,152

49

1

–

50

8

1,423

–

–

1,423

1,562

1,486

872

–

2,358

3,436

Voluntary income Donations and gifts Education services Residential & Community Services Community Engagement General fundraising

Legacies Education services

–

8

–

8

188

Residential & Community Services

–

25

–

25

102

Community Engagement

–

–

–

–

75

2,152

–

–

2,152

1,007

2,152

33

–

2,185

1,372

3,638

905

–

4,543

4,808

Education services

16,664

217

–

16,881

16,580

Residential & Community Services

18,797

9

–

18,806

18,288

125

–

–

125

134

35

–

–

35

263

35,621

226

–

35,847

35,265

Education services

16,676

606

–

17,282

17,482

Residential & Community Services

18,799

524

–

19,323

19,542

174

1

–

175

217

3,575

–

–

3,575

2,569

35

–

–

35

263

108

–

26

134

163

–

–

52

52

52

200

–

–

200

44

39,567

1,131

78

40,776

40,332

General fundraising Total Voluntary Income

Income for services

Community Engagement Other Total income for services

Total income

Community Engagement General fundraising Other Investment income Trusts Gains on the disposals of fixed assets Total incoming resources

At the date of the accounts, Livability had been notified of interests in legacies where there is a life-interest with an estimated value of £0.3m (2013: £0.3m) and in residuary legacies of £0.5m (2013: £0.9m) that do not meet the criteria set out in the accounting policies for recognition in income.

43

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 3. Investment income Unrestricted Funds 2014 £000

Restricted Permanent Funds Endowment Funds 2014 2014 £000 £000

Total Funds

Total Funds

2014 £000

2013 £000

11

31

29

Listed investments

20

–

Bank interest / investments

20

–

1

21

53

Rent receivable

68

–

14

82

81

108

–

26

134

163

Total investment income

4. Resources expended Unrestricted Funds 2014 £000 Generating voluntary income

Restricted Permanent Funds Endowment Funds 2014 2014 £000 £000

Total Funds

Total Funds

2014 £000

2013 £000

1,146

–

–

1,146

1,412

16,735 17,540 428 – 3 34,706

397 371 1 – – 769

– – – 111 – 111

17,132 17,911 429 111 3 35,586

16,005 16,739 581 86 143 33,554

1,595 2,091 57 3,743

– – – –

– – – –

1,595 2,091 57 3,743

1,260 1,686 44 2,990

Total Education services Residential & Community Services Community Engagement Trusts Other services

18,330 19,631 485 – 3

397 371 1 – –

– – – 111 –

Total direct charitable expenditure

38,449

769

111

18,727 20,002 486 111 3 39,329

17,265 18,425 625 86 143 36,544

Other costs Governance costs Impairment of fixed assets

102 402 1,686

– – –

– – –

102 402 1,686

114 320 130

Total resources expended

41,785

769

111

42,665

38,520

Direct charitable expenditure Direct expenditure Education services Residential & Community Services Community Engagement Trusts Other services Support costs Education services Residential & Community Services Community Engagement

44

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 4. Resources expended (continued) Allocation of support costs Senior management £000 Education services Residential & Community Services Community Engagement Generating voluntary income Governance costs Total support costs 2014 Total support costs 2013

Finance £000

Corporate Support £000

HR £000

Marketing £000

Total £000

413 472 11 80 84

339 497 9 69 127

495 730 33 67 142

256 297 2 8 49

92 95 2 2 –

1,595 2,091 57 226 402

1,060

1,041

1,467

612

191

4,371 3,467

2014 £000 328 47 23 4

2013 £000 252 26 16 26

402

320

2014 £000

2013 £000

Governance costs are made up of: Senior management time External audit fees and other services Internal audit fees Trustee costs

Total resources expended is arrived at after charging / (crediting):

Depreciation Impairment of fixed assets Loss of disposal of fixed assets

937

895

1,686

130

–

52

39

30

2

1

80

93

403 70

448 27

2014 £000

2013 £000

456 256 226 208

577 284 157 394

1,146

1,412

Auditor's remuneration: Audit current year Other services Interest payable Operating lease charges: Land & buildings Other equipment

Costs of generating voluntary income is made up of:

Salaries and other staff-related costs Bought-in services Allocation of administration cost Other non-staff costs, mostly direct mailing costs

45

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 5. Operating leases 2013

2014 Leases expiring within: Land and buildings Other equipment

More than 5 years 1 year 2 - 5 years

1 year

2 - 5 years

More than 5 years

80 –

53 70

74 –

101 26

103 43

2 –

80

123

74

127

146

2

6. Subsidiary undertakings Livability has six subsidiary entities that carry out particular functions or provide services. They are: • John Grooms, one of the predecessor charities that merged to form Livability • The Shaftesbury Society, the other predecessor charity • Livability Icanho Limited which provides acquired brain injury rehabilitation services • Kingsley Hall and Community Centre which provides such facilities in the Becontree Estate in Dagenham • Livability Ireland which provides spinal injury treatment skills transfer in South East Asia, utilising grant funding from the EU, Irish State bodies and others • Livability Contracting Services Limited which provides construction and similar services and associated goods to Livability The results and balance sheets of these subsidiaries are consolidated into the financial statements of the Livability Group reported in the Trustees Annual Report and Accounts

Operating profit or net Turnover or incoming / incoming (outgoing) Transfer to resources resources the Charity John Grooms The Shaftesbury Society Livability Icanho Limited Kingsley Hall Church and Community Centre Livability Ireland* Livability Contracting Services Limited

£000 – 1 806

Aggregate assets

Aggregate liabilities

Net assets

£000 – 1 –

£000 – – –

£000 – 29 2

£000 – – –

£000 – – –

276 247

26 25

– –

149 157

(18) (110)

131 47

2,393

–

–

121

(121)

–

* 15 month period to 31 March 2014

46

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 7. Employees

The average monthly number of full-time equivalent (FTE) employees in the year, in the principal categories of staff employed, is set out in the table below.

Nursing, care services and ancillary staff

Group

Group

2014

2013

1,108

1,092

Teachers and lecturers

49

50

Community Engagement and Link Churches

15

17

Central Office and administration

63

52

Fundraising and communications

15

17

1,250

1,228

Group 2014 £000

Group 2013 £000

25,835 1,728 1,570 1,638

24,747

The cost of employment of the staff employed was:

Wages and salaries Social security costs Pension costs Agency staff

30,771

1,676 1,619 1,443

29,485

Wages and salaries include the costs of redundancy settlements paid or provided for in the year.

The number of staff receiving emoluments greater than £60,000 in the year was:

£60,001 - £70,000 £70,001 - £80,000 £80,001 - £90,000 £90,001 - £100,000 £100,001 - £110,000

Group 2014

Group 2013

9 6 – 1 2

8 2 1 2 –

Employers’ pension contributions made on behalf of 17 of these employees totalled £109,602 in the year (2013: 10 employees £89,226). The number of employees falling into the higher pay bandings includes 6 staff (2013: 2 staff) whose emoluments include redundancy payments.

Trustees receive no remuneration in respect of their services as Trustees of Livability. Travel and other out-of-pocket expenses were reimbursed to four Trustees in the year, to the value of £2,227 and costs of providing training to Trustees in relation to their duties were £ 468 (2013: 8 Trustees to the value of £2,963; training costs of £264).

Livability paid £6,834 in the year (2013: £6,449) to provide indemnity insurance for the Trustees.

47

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 8. Tangible fixed assets

Group

Freehold land & buildings £000

Long leasehold land & buildings £000

Short leasehold land & buildings £000

Furniture, fittings, Assets in the vehicles, course of other construction £000 £000

Total £000

Cost or valuation At 1 April 2013

52,139

364

566

7,856

1,279

62,204

Additions

308

–

27

303

1,518

2,156

Transfers

2,581

–

–

216

(2,797)

Revaluation

1,803

–

–

–

Disposal / retirement

(1,373)

–

(29)

Transfer to current assets

(3,248)

–

–

–

At 31 March 2014

52,210

364

564

6,063

39

300 1,526

–

–

1,803

–

(1,843)

–

(3,248)

7,934

–

61,072

330

6,390

–

12,822

5

14

618

–

937

–

–

160

–

1,686

(190)

–

–

–

–

(190)

(50)

–

(39)

–

(521)

(384)

–

–

–

–

(384)

7,265

44

305

6,736

–

14,350

At 31 March 2014

44,945

320

259

1,198

–

46,722

At 31 March 2013

46,076

325

236

1,466

1,279

49,382

(441)

Depreciation At 1 April 2013 Charged in the year Impairment Revaluation Disposal / retirement Transfer to current assets At 31 March 2014

(432)

Net book value

All the tangible assets are used for direct charitable purposes.

Freehold land and buildings with a value of £1,217,000 (2013: £1,217,000) are subject to covenants surrounding their use that would crystallise liabilities at these values in the event of any disposal or change of use of the properties.

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 2014. A review of these valuations, along with the carrying values of properties not subject to professional revaluation, was undertaken at 31 March 2014 by Mass & Co, Chartered Surveyors, with adjustments made to carrying values where considered material. The annual review of valuations also identifies those properties at risk of impairment with adjustments made to carrying values to reflect any impairment of value.

The historical cost less depreciation of fixed assets held at valuation is £33,027,000 (2013: £34,786,000).

48

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 8. Tangible fixed assets cont'd

Charity

Freehold & leasehold land & buildings £000

Long leasehold land & buildings £000

Short leasehold land & buildings £000

Fixtures, Assets in the equipment course of & vehicles construction £000 £000

Total £000

Cost or valuation At 1 April 2013

51,153

364

481

7,808

1,279

61,085

Additions

308

–

–

303

1,518

2,129

Transfers

2,581

–

–

216

(2,797)

Revaluation

1,803

–

–

–

Disposal / retirement

(1,373)

–

(29)

Transfer to current assets

(3,248)

–

–

At 31 March 2014

51,224

364

6,065 300 1,526

–

–

1,803

–

(1,843)

–

–

(3,248)

452

7,886

–

59,926

39

290

6,361

–

12,755

5

17

614

–

936

–

–

160

–

1,686

(190)

–

–

–

–

(190)

(50)

–

(39)

–

(521)

(384)

–

–

–

–

(384)

7,267

44

268

6,703

–

14,282

At 31 March 2014

43,957

320

184

1,183

–

45,644

At 31 March 2013

45,088

325

191

1,447

1,279

48,330

(441)

Depreciation At 1 April 2013 Charged in the year Impairment Revaluation Disposal / retirement Transfer to current assets At 31 March 2014

(432)

Net book value

49

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 9. Investments

Carrying value at 1 April Additions at cost

Group 2014 £000

Group 2013 £000

Charity 2014 £000

Charity 2013 £000

3,257

3,052

2,720

2,517

6

23

6

23

Disposals at carrying value

(71)

Net gain / (loss) on revaluation

446

182

422

180

3,638

3,257

3,077

2,720

Carrying value at 31 March

–

(71)

–

Investments are held primarily for their investment returns and capital growth potential Group 2014 £000

Group 2013 £000

Charity 2014 £000

Charity 2013 £000

2,701 798 18 1 20 100

2,301 760 67 1 20 108

2,155 783 18 1 20 100

1,781 743 67 1 20 108

3,638

3,257

3,077

2,720

Investments are analysed as Investment properties Investments listed on a UK stock exchange Investments listed on an overseas stock exchange Other unlisted securities Mortgage loan Cash

Of the investments above, the cost of investment properties is £1,380,000 ( 2013: £1,380,000) and the cost of listed investments is £409,000 (2013: £459,000) 10. Stock

Plants Food Bar

Group 2014 £000

Group 2013 £000

Charity 2014 £000

Charity 2013 £000

– 2 1

23 9 3

– 2 1

23 9 2

3

35

3

34

Group 2014 £000

Group 2013 £000

Charity 2014 £000

Charity 2013 £000

1,592 149 658 27 –

1,587 217 302 26 –

1,582 143 658 27 116

1,586 215 302 26 17

2,426

2,132

2,526

2,146

11. Debtors

Amounts falling due within one year: Trade debtors and fees receivable Other debtors Prepayments and accrued income Short-term loans Amounts due from subsidiary undertakings

50

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 12. Creditors Amounts falling due within one year Group 2014 £000

Group 2013 £000

Charity 2014 £000

Charity 2013 £000

Trade creditors

1,382

1,465

1,367

1,450

Accruals and deferred income

2,260

1,445

2,260

1,445

Taxes and social security

597

611

597

611

Other creditors

288

427

270

402

Bank loans

175

177

175

177

Amount due to a Trust

–

–

9

9

80

80

80

80

Amount due to group entities

–

–

140

109

Trust loans

5

5

5

5

4,787

4,210

4,903

4,288

Group 2014 £000

Group 2013 £000

Charity 2014 £000

Charity 2013 £000

65 1,455

71 1,633

65 1,455

71 1,633

1,520

1,704

1,520

1,704

Other loans

Amounts falling due after more than one year

Deferred income Bank loans

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

Facility provider Interest base

Margin

Barclays Bank Barclays Bank Barclays Bank Barclays Bank

Barclays base rate 3 month LIBOR Barclays base rate Barclays base rate

Barclays Bank

3 month LIBOR

1.375% 1.375% 2.000% 3.000% 1.00%; LIBOR collar applies until August 2017

Outstanding at March 2014 £000

173 3 49 393

Security

All loans are secured by a first legal charge over one property

1,012

Repayable by April 2018 Sept 2014 July 2021 February 2022 August 2027

1,630 The bank loans are repayable by instalments falling due in the following periods:

Within 1 year Within 1-2 years Within 2 - 5 years After 5 years

2014 £000

2013 £000

175 172 489 794

177 171 503 959

1,630

1,810

51

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 13. Provisions for liabilities and charges

As described elsewhere in the Trustees Annual Report, the Trustees took the decision in November 2013 to cease operation of the Hinwick Hall College site. The principal costs of closure relate to payments to staff to compensate them for breach of contract. At 31 March 2014 Livability has therefore recognised a full provision for the costs of payment to the staff that have arisen from the closure decision.

Group and Charity

Closure costs

Total

£000

£000

Falling due within one year: At 1 April 2013

–

–

Recognised in the year

1,060

1,060

At 31 March 2014

1,060

1,060

52

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 14. Consolidated funds

Balance at 1 April 2013 £000

Incoming resources £000

Outgoing resources £000

Unrealised gains / (losses) £000

Transfers £000

Balance at 31 March 2014 £000

Designated Funds: Property fund

29,116

–

Revaluation fund

9,912

–

Equipment fund

1,607

–

Total designated funds General Fund Unrestricted funds before pension liability Pension reserve Total unrestricted funds Education Residential & Community Services Community Engagement Overseas Giving by Lending F Clements Will Trust Faith & Hope Nurseries Kingsley Hall Church & Community Kingsley Hall, Dagenham Total Restricted Funds Permanent Endowment Funds Chiswick Highway Marsh St. Coney Hill Will Welcome SHBEF Shaftesbury Development Beddington Platt Total Permanent Endowment Funds Total funds

(1,989) –

–

(753)

26,374

1,993

(1,337)

10,568

(618)

–

40,635

–

(2,607)

1,993

3,960

39,567

(38,721)

295

44,595

39,567

(41,328)

–

(457)

33,451

39,567

2,888 2,309 35 89 57 22 51 13 1,505 6,969

(11,144)

2,288

477

1,466

(1,613)

38,408

2,229

7,330

616

45,738

(1,248)

1,359

(11,490)

(41,785)

1,040

1,975

34,248

444 429 2 69 – – 26 161 – 1,131

(297) (334) (2) (37) – – – (99) – (769)

– – – – – – – – 26 26

(1,542) (377) – – – – – (56) – (1,975)

1,493 2,027 35 121 57 22 77 19 1,531 5,382

547 2,283 301 26 750 26 491 35 530

– 71 – – – – 7 – –

– (111) – – – – – – –

– 117 – – – – 6 2 –

– – – – – – – – –

547 2,360 301 26 750 26 504 37 530

4,989

78

(111)

125

–

5,081

45,409

40,776

(42,665)

1,191

–

44,711

Funds balances include £1,507,000 of investment asset revaluation reserve (2013: £1,062,000)

Included in restricted funds above are the following funds that require specific disclosure under the terms of the grants awarded:

Big Lottery fund - London Lifestyles Choices City Bridge Trust - London Lifestyles Choices BBC Children in Need - VEC Arts week 2013 Henry Smith Charity - Sparkle Appeal for VEC Hydrotherapy

Balance at 1 April 2013 £000 5 (5) – –

Grants received Expenditure £000 £000 31 (15) 24 (7) 10 (10) 100 (100)

Balance at 31 March 2014 £000 21 12 – –

53

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 14. Consolidated funds cont'd Name of fund

Description, nature and purpose of Fund

Unrestricted Funds Property Fund

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

Revaluation Fund

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

Equipment Fund

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

General Funds Pension Reserve Restricted Funds Education

Represents undesignated monies retained to provide the working capital to enable the Charity to carry outs its activities Represents the deficit in the Charity’s defined benefit pension schemes, as calculated under FRS17

Various funds received to support individual educational establishments

Residential & Community Services

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

Giving by Lending F Clements Trust Fund

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

Community Engagement

To support the work of the Community Mission team and the Link Churches

Faith Training Centre Overseas Kingsley Hall Church & Community Centre Kingsley Hall, Dagenham

To support the work of the Faith Horticultural Centre Various funds to support our overseas work To support the work of Kingsley Hall Community Centre To support the work of Kingsley Hall Community Centre

Endowment funds

Commonly known as Shaftesbury Development

The Shaftesbury Development Fund

Objects To apply income to the general purposes of Livability 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

The Beddington Fund

Beddington

Platt Mission, Putney

Platt

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

Kingsley Hall, Dagenham

KHD

To promote social, educational and religious nature for the benefit of local residents

54

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 15. Analysis of net assets and liabilities between funds

General Designated £000 £000 Tangible fixed assets

Pension £000

–

40,182

–

Investments

1,978

–

Cash

5,183

– –

Other current assets Current liabilities Long-term liabilities Funds at 31 March 2014

5,293 (5,124) – 7,330

(254)

Permanent Restricted Endowment £000 £000

Total £000

2,201

4,339

46,722

–

520

1,140

3,638

–

2,661

71

7,915

–

–

–

–

– (469)

(1,520)

(11,490)

–

–

38,408

(11,490)

5,382

5,081

5,293 (5,847) (13,010) 44,711

16. Related party transactions There have been no related party transactions in the year (2013: £Nil). The Charity has taken advantage of the provisions of FRS 8: related party transactions in not disclosing related party transactions and balances with its whollyowned subsidiaries.

17. Parent Charity results As permitted by section 480 of the Companies Act 2006 and the provisions of paragraph 397 of the Charities SORP 2005, no separate Statement of Financial Activities is presented for the parent Charity. In the year ended 31 March 2013, the individual results of Livability were: 2014 £000 Income Expenditure Unrealised gains / (losses) Total surplus / (deficit) Transfer from predecessor charities Net increase / (decrease) in funds

39,604 (41,569) 1,165 (800) –

2013 £000 39,189 (37,282) (772) 1,135 1,025

(800)

2,160

2014 £000

2013 £000

1,482 1,450

1,902 142

18. Capital commitments At 31 March 2014 the capital commitments of the charity were are follows:

Contracted Approved not contracted

The principal capital commitments relate to a contracted agreement to purchase the Russell Hotel in Bognor Regis as a replacement to the existing Ashley House site and to the approved purchase of four care homes in Hampshire and their associated care contracts. Both transactions have completed during the period between the date of the accounts and the approval of the accounts by the Board of Trustees. Loan financing has been arranged for both transactions.

55

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 19. Pensions

The Charity contributes to six staff pension schemes: • A Group Personal Pension Plan defined contribution scheme operated by Aegon which all permanent non-bank employees of Livability, who have successfully completed their probationary period of employment, were eligible to join until October 2013.

• A Group Personal Pension Plan defined contribution scheme operated by the People's Pension into which all employees are enrolled when they meet the criteria for automatic enrolment and are not already enrolled in a pension scheme that meets the criteria of the Pensions Regulator.

• The Livability Final Salary Pension Scheme (“Livability DB scheme”), a defined benefit scheme which was closed to new members and further service accrual in June 2007. This scheme is administered by The Pensions Trust.

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

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

• The Pensions Trust Growth Plan (a multi-employer defined benefit scheme). There are two active members of this scheme which is closed to further benefit accrual; contributions are made at the minimum level required to maintain membership of the scheme and for reduction of the deficit in the scheme. Withdrawal from the scheme would trigger a liability estimated at 31 March 2014 at £784,000. There is no intention to withdraw from the scheme and therefore this liability is not recognised in the Accounts at 31 March 2014.

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

The cost of employer contributions to the Aegon plan, the People's Pension plan and the Teachers’ Pension Scheme was £1,053,000 in the year (2013: £1,045,000). There are no prepaid contributions in respect of any of the schemes at the balance sheet date. The deficits in the defined benefit schemes have increased on the FRS 17 measure since last year, mainly due to the increasing expected longevity of scheme members.

The defined benefit schemes are both contracted-out of the State Second Pension Scheme (S2P) and their assets are held separately from those of the Charity. Contributions to the schemes were agreed with the schemes’ Trustees, in accordance with the agreed technical provisions and recovery periods agreed for each scheme.

The subsequent disclosures combine data for both schemes, where possible, and reflect only Livability’s share of the JGPAS assets, liabilities and transactions.

The last triennial valuation of the Livability DB scheme was made as at 30 September 2012 and was updated to 31 March 2014 by an independent qualified actuary, in accordance with FRS 17. The recovery contribution made to the Livability DB scheme by the Charity in the year was £704,000, as set out in the previous agreed deficit recovery plan, plus a contribution for administration expenses of £108,000. The deficit recovery plan agreed during the year to 31 March 2014 requires recovery contributions of £875,000 per annum in the two years to 31 March 2016 and of £985,000 per annum thereafter, rising at 2.6% per year, until 31 July 2026.

An actuarial valuation of JGPAS was carried out as at 31 March 2012 and updated to 31 March 2014 by an independent qualified actuary. The recovery contribution made to the Scheme by the employer in the year was £400,000, plus administration expenses of £147,000. Recovery contributions of £400,000 per annum (payable in quarterly instalments until 1 October 2022) are currently paid, with an additional contribution payable of £2,500 for each 0.1% that the average growth in pensionable salary for quasi-deferred members exceeds inflation in any Scheme year ending 31 March.

56

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 19. Pensions cont'd The principal assumptions used by the actuaries for the purposes of the FRS 17 valuation were (in nominal terms):

At 31 At 31 March 2014 March 2013 Discount rate Rate of increase in salaries Inflation assumption

4.40% 3.30% 2.40% 3.30%

4.40% 3.30% 2.40% 3.30%

Pension increases: The Livability Final Salary Pension Scheme Deferred pensions of RPI or 5% pa if less Pensions in payment of CPI or 5% pa if less Pensions in payment of CPI or 3% pa if less Pensions in payment of CPI or 2.5% pa if less

3.30% 2.40% 2.20% 2.00%

3.30% 2.40% 2.20% 2.00%

The John Grooms Pension and Assurance Scheme Pension earned before 6 April 1994 GMP earned after 5 April 1994 Pension in excess of GMP earned after 5 April 1994

5.00% 2.20% 3.30%

5.00% 2.20% 3.30%

Assumed life expectancies in years on retirement at age 65 are: The Livability Final Salary Pension Scheme Retiring today Males Females Retiring in 20 years’ time Males Females

23.1 25.1 25.3 27.0

22.1 24.3 23.8 26.2

The John Grooms Pension and Assurance Scheme Retiring today Males Females Retiring in 20 years’ time Males Females

22.1 24.3 23.8 26.3

22.0 24.2 23.7 26.2

CPI RPI

The assumptions used in determining the overall expected return of the schemes have been set with reference to yields available on government bonds and appropriate risk margins.

The assets in the schemes and the expected rates of return were: Long-term rate of return expected at 31 March 2014 Equity Bonds Property Cash and current liabilities

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

7.00% - 7.50% 3.40% - 4.30% 6.00% 0.50%

Long-term rate of return Value at 31 expected at Value at 31 March 2014 31 March March 2013 £000 2013 £000

16,995 7.00% - 7.30% 14,098 2.95% - 4.20% 1,353 7.30% 74 0.50% 32,520 1,044

16,246 14,061 1,226 195 31,728 3,683

57

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 19. Pensions cont'd The amounts recognised in the balance sheet are: 2014 £000

2013 £000

Present value of scheme liabilities Fair value of scheme assets

(44,010) 32,520

(42,872) 31,728

Deficit and net pension liability recognised

(11,490)

(11,144)

Movements in the present value of the scheme liabilities have been: 2014 £000

2013 £000

Benefits paid

42,872 276 1,857 616 (1,611)

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

Present value of liabilities at the end of the year

44,010

42,872

2014 £000

2013 £000

Present value of liabilities at the start of the year Current service cost Interest cost Actuarial loss

Movements in the value of scheme assets have been:

31,728 1,676 (632)

28,221 1,607 2,076

Benefits paid

1,359 (1,611)

1,387 (1,563)

Fair value of scheme assets at the end of the year

32,520

31,728

2014 £000

2013 £000

(1,248)

(1,986)

Fair value of scheme assets at the start of the year Expected return on scheme assets Actuarial gain / (loss)

Contributions by employer

Recognised gains and losses in the Statement of Financial Activities

Total actuarial loss

58

Livability Annual Report & Accounts 2014 Notes to the financial statements for the year ended 31 March 2014 cont'd 19. Pensions cont'd

History of scheme assets, obligations and experience adjustments

At March 2014 £000

At March 2013 £000

At March 2012 £000

At March 2011 £000

At March 2010 £000

(44,010) 32,520 (11,490)

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

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

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

(31,779) 22,233 (9,546)

Experience adjustments arising on scheme liabilities

145

(535)

291

(1,558)

(384)

Experience item as a percentage of scheme liabilities

0%

(1)%

1%

(5)%

(1)%

Changes in assumptions underlying the present value of scheme liabilities

(761)

(3,527)

(4,945)

3,896

(7,102)

Changes in assumptions as a percentage of scheme liabilities

(2)%

(8)%

(13)%

12%

(20)%

Experience adjustments arising on scheme assets

(632)

2,076

367

457

4,509

Experience item as a percentage of scheme assets

(2)%

7%

1%

2%

18%

Present value of scheme liabilities Fair value of scheme assets Deficit in the schemes

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

2014 £000

2013 £000

276 (1,676) 1,857 457

305 (1,607) 1,734 432

Contributions and administration fees payable in the year ending 31 March 2015 are expected to be:

£000 The Livability Final Salary Pension Scheme The Pensions Trust Growth Plan John Grooms Pension and Assurance Scheme

991 63 560 1,614

59

Livability Annual Report & Accounts 2014

THANK YOU TO OUR SUPPORTERS

We would also like to thank the organisations below for their generous contribution towards our work, those organisations who wished to remain anonymous, the families of those who remembered Livability in their will and the thousands of generous individuals whose support makes such a huge difference to our work: Allenbourn Middle School

Santander Foundation

Andrew Anderson Trust

Siemens

Awareness Fund

Teachers Assurance

BBC Children in Need

The 29 May 1961 Charitable Trust

Bedfordshire and Luton Community Foundation

The Adint Charitable Trust

Big Lottery Fund

The Albert Hunt Trust

Chalk Cliff Trust

The Audrey Earle Charitable Trust

D’Oyly Carte Charitable Trust

The Band Trust

Dudley and Geoffrey Cox Charitable Trust

The Christopher Laing Foundation

Eastcheap Charitable Trust

The City Bridge Trust

Eric Stanton Northampton Trust

The Cruse Trust

Fidelity UK Foundation

The Donald Forrester Charitable Trust

Friends of Livability Brackley

The Edith Murphy Foundation

Friends of Livability Dolphin Court

The Emmaus Christian Fund

Friends of Livability Icanho

The Fowler Smith and Jones Charitable Trust

Friends of Livability John Grooms Court

The Geoffrey Watling Charity

Friends of Livability Nash College

The Haberdashers’ Company

Friends of Livability Nettleswell

The Harpur Trust

Friends of Livability Treetops

The Henry Smith Charity

Friends of Livability Victoria Education Centre

The Homelands Charitable Trust

George & Esme Pollitzer Charitable Settlement

The K P Ladd Charitable Trust

Green Hall Foundation

The Nora and Olive Brewer Memorial Trust

Gresham Charitable Trust

The Poole Yacht Club

Harlow Health Centres Trust

The Poppy Factory

Harrow School

The Rayne Foundation

Hilton in the Community Foundation

The Rosca Trust

Iron Bridge Trust

The Royal Bank of Scotland

London Borough of Barnet

The Scott Bader Commonwealth Ltd

LV=

The Simon Gibson Charitable Trust

Oliver Ford Charitable Trust

The SMB Charitable Trust

Olympus Keymed

The Wixamtree Charitable Trust

Ordinary People Interesting Lives

The Wolfson Foundation

P F Edwards Charitable Trust

Tubetech International

Remedy Oak Golf Club

Westover Group Limited

th

60

Livability Annual Report & Accounts 2014

REFERENCE AND ADMINISTRATIVE DETAILS OF LIVABILITY, ITS TRUSTEES AND ADVISORS PATRON Her Royal Highness, The Princess Royal

VICE-PATRONS The Lord Green of Hurstpierpoint Lady Marina Hobson OBE

PRESIDENT The Most Revd and Rt Hon Justin Welby, Lord Archbishop of Canterbury MA DPhil DD FBA

LIFE PRESIDENT Sir Ron Hobson KCVO

SENIOR VICE PRESIDENT Baroness Valerie Howarth of Breckland OBE

VICE-PRESIDENTS The Revd and Rt Hon the Lord Williams of Oystermouth The Rt Revd and Rt Hon R J Chartres, Lord Bishop of London DD KCVO Mr Michael Edgar MA MChir FRCS Mrs Pamela Farrell Tredinnick OBE Prof Ram Gidoomal CBE FRSA CCMI Mr Robert Hodge Mr John Hughesdon Mr Roy McCloughry BSc (Econ) MSc The Rt Hon Lord McColl of Dulwich CBE Mr Robert Powell Ms Esther Rantzen CBE Ms Pamela Rhodes The Revd Canon Roger Royle Mr Michael Brunson OBE Revd Michael Shaw Mr David Harmer

61

Livability Annual Report & Accounts 2014

Trustees Leonard J H Beighton* CB MA, Chair of Education Oversight Sub Committee Martin Bradford* FCA Chris Carr BSc FCA CF, Vice-Chair, Chair of Fundraising and Community Engagement Sub Committee Caroline Armitage MA (Cantab) (Law) Chair of Trustees (appointed 24 July 2013) Sally Chivers BA (Hons) Kate Clare BEd Dip Ed NPQH PDD Anne-Marie Costigan RGN DMS Cert in Ed Jenny Edwards MBE, RSCN SRN NNEB, Chair of Partnership Board Peter N Griffiths* BSc (Econ) FCA, Honorary Treasurer, Chair of Finance and General Purposes Sub Committee Keith Hickey BSc (Hons) MSc FCCA DChA Baroness Howarth of Breckland OBE, Chair of Oversight Committee and Safeguarding Board Revd Agnita Oyawale MA BD (Hons) AKC PGCE Dawn Sugden* LLB (resigned 31 December 2013) Sarah Ellington (appointed 20 March 2014) Brian James (appointed 20 March 2014) *Trustee Members of the Audit Sub-Committee

Non-Trustee Independent Chair of Audit SubCommittee

Alistair J C Collett LLB (resigned 11 February 2014) Dawn Sugden LLB (appointed 1 January 2014)

SENIOR OFFICERS Chief Executive

Dave Webber Dip MS

Director of Operations

Liz Mell

Director of Community Engagement

Adam Bonner BA (Hons)

Director of Fundraising

Alison Shotter MInstF

Director of Human Resources

Anne Kippax MA BA (Hons) FCIPD

Interim Director of Resources

Stephen Perry LLB ACMA CGMA FCII

Director of Resources

Liz Walker ACA MBA (appointed 7 July 2014)

Company Secretary

Michael Langworth BSc (Econ) (Hons) ACIS

th

62

Livability Annual Report & Accounts 2014

SOLICITORS Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES Bates Wells & Braithwaite LLP 2-6 Cannon Street London EC4M 6YH Virtual Law Flints House Eldernell Lane Whittlesey Peterborough PE7 2DD

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

AUDITORS BDO LLP 55 Baker Street London W1U 7EU

INTERNAL AUDITORS Chantrey Vellacott DFK LLP Russell Square House 10-12 Russell Square London WC1B 5LF

CHARTERED SURVEYORS, PROPERTY VALUERS Mass & Co 25 High Street Brentwood Essex CM14 4RG Bruton Knowles Greybrook House 28 Brook Street London W1K 5DH

63

Livability Annual Report & Accounts 2014

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

64

Central office: Livability, 50 Scrutton Street, London EC2A 4XQ Phone: 020 7452 2000 Email: info@livability.org.uk www.livability.org.uk Patron: HRH The Princess Royal Charity registration no. 1116530 Company registration no. 5967087 Livability is the new face of John Grooms and the Shaftesbury Society