livability annual report 2010

Report and AccountsYear Ended 31 March 2010

Report and Accounts 2010:Layout 1 12/10/10 11:01

choicesLivability creates

for disabled people and brings life to communities.

Report and Accounts: year ended 31 March 2010


ContentsPage

A Message from our Patron, HRH The Princess Royal 2

Trustees’ Report incorporating:

Introduction 3

Principal Activities and Core Values 4

Review of the Year and Aims for Next Year 7

Report of the Board 17

Statement of Trustees’ Responsibilities for the FinancialStatements 25

Independent Auditors’ Report 26

Consolidated Statement of Financial Activities 29

Consolidated and Charity Balance Sheets 30

Consolidated Cash Flow Statement 31

Notes to the Financial Statements 33

Livability Information 59



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A MESSAGE FROM OUR PATRON, HRH THE PRINCESS ROYAL

Everyone deserves the opportunity to grow, to develop and to discover their

potential. It is in doing so that we discover what life has to offer. As I have visited

Livability’s projects this year, I have been struck by the commitment of staff and

volunteers to ensure that all people have that chance.

In my role as Patron of Livability, I have met with young people growing up in a

deprived neighbourhood and disabled adults living with physical impairments and

learning difficulties. Many can feel as though their world is a small, drab one,

offering few chances to try new things. However, I have seen at first hand how

Livability is working to open up the world for disabled and disadvantaged people.

Their services enable and support people to learn new skills, to make new

friends, and to take decisions for themselves: in essence, to truly live.


INTRODUCTION

Although this has been only the second year since our merger, we havebeen able to start making real progress towards the goals we wanted frombringing together John Grooms and the Shaftesbury Society; namelydelivering high quality and more effective services, securing a more stablefinancial position and developing our services.

Providing quality services and supporting disabled people to live life to thefull has been central to our work. I am proud to say that, at today, every oneof our adult services has been rated as either good or excellent by ourregulator, the Care Quality Commission. During the year fifty four people wereawarded NVQ qualifications and 77% of our care staff across our servicesfor disabled adults now have NVQ’s, far above the recommended minimumlevel. This, together with having our Investors in People award renewed, is areal tribute to Livability’s commitment to providing services of the highestquality and putting our values into practice. Over the last year we havefocused on the further development of flexible, personalised services, suchas our Lifestyle Choices, which supports disabled individuals in engagingwith their community through social, leisure and educational activities.

We have started building for the future through delivering a more securefinancial position. This year we have achieved our goal of delivering an overall break-even operating budget. This has been a tremendous achievement in the face of risingprices and relatively static income.

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

We have also established an in-house information and communication systems department.As well as saving us money, this will allow us to develop the systems we need for growth.

This theme of growth is one I expect to see into the next year. Changes in regulationand the personalisation agenda are creating opportunities for organisations like ours.Now that we have thoroughly consolidated our post-merger organisation anddeveloped a culture of quality, we are well positioned to develop exciting new services.Responding to individual need is at the heart of our growing work with disabled anddisadvantaged people, providing creative and pioneering services to enable them toachieve real choice, independence and opportunity.

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

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

Baroness Howarth of BrecklandChair of the board of trustees


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PRINCIPAL ACTIVITIES AND CORE VALUES

Livability creates choices for disabled people and brings life tocommunities. The name Livability reflects our belief that everyone shouldhave the freedom to live their life and the chance to use their abilities totheir full potential.Our services are carried out for public benefit and are open to all whoneed and can benefit from them.The impact of our work continues to be very significant:

• Livability operates 30 registered residential care homes andsupported living schemes including a number of specialistresidential and community-based schemes

• We maintain three specialist educational establishments – oneschool and two further education colleges

• We provide over 3,000 holidays a year in accessible self-catering accommodation and hotels.

• We provide services to more than 60 local authorities, to primarycare trusts and the Learning and Skills Council (now the YoungPeople’s Learning Agency)

• Through our Community Mission team, we trained over 600Christian Community activists and worked in-depth with over 35churches, to make a positive impact in areas of high social needin the north of England and in the greater London area.

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

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

We organise our work into three operational directorates:

SERVICES FOR DISABLED ADULTS (SDA)We provide a broad spectrum of care and support for disabled adults,ranging from residential care and supported living to brain injuryrehabilitation. We also offer fully accessible holiday accommodation andhotels in England and Wales. We support networks of disabilityorganisations which operate in South Asia. Fees are charged for some ofthese services and local authorities and other government agenciesprovide funding for them, based on an assessment of each individual'sneeds. Voluntary income is raised to improve quality and facilities.Through these arrangements we provide services to disabled peoplewho would not be able to afford to pay for their own fees.

EDUCATIONWe provide specialist day and residential educational provision fordisabled children and young people with complex disabilities and learningdifficulties through a school, which is also a specialist sports college, andtwo colleges of further education. Students are funded by localauthorities, the Learning and Skills Council (now the Young People’sLearning Agency) and other government agencies, based on theirassessed therapy, care and educational needs. Voluntary income is raisedto improve quality and facilities.

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COMMUNITY MISSIONWe support churches in urban communities through practical support,training and resources. The majority of this work is funded by voluntaryincome, but attendance fees are charged at low rates forconferences/training courses in order to maximise accessibility forvolunteers.

In considering Livability’s Aims and objectives, the Trustees have taken intoaccount the Charity Commission's guidance and best practice on publicbenefit. Livability’s services are provided for disabled people of anynationality, religion, language, gender, age, sexual orientation and maritalstatus. We aim to empower people to make real, personal choices in theirlives. This is achieved by a positive approach to risk taking in which theoutcomes for the individual and the level of risk are balanced in waysappropriate to enhancing the lifestyle choices of people we support. Wedo this through formal and informal processes of risk management, and bycontinuous development of our services to meet the needs of those whouse them. Our Aims are achieved by ensuring occupational health andsafety is an integral part of our systems and daily practice.

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

VISIONOur vision is of a transformed society where disabled and disadvantagedpeople can live life to the full.

MISSIONInspired by our Christian ethos, we work with disabled and disadvantagedpeople to achieve real choice, independence and opportunity. We do thisthrough our expertise, the breadth and quality of our services and bycampaigning for change.

VALUESWe value all people: We believe in the equality and unique value of everyindividual, and create opportunities for people to fulfil their potential and livelife to the full.

We work together: We work in partnership not just with those who useour services, but with their families, local communities and otherorganisations.

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

We are professional: We seek to deliver services of the highest qualityand constantly seek to improve through listening, reflecting, learning andaction.

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

We challenge injustice: Working closely with disabled and disadvantagedpeople, we challenge injustice, using our research and expertise to achievereal change.


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ETHOSLivability derives its inspiration and values from the life and message ofJesus Christ and the Christian faith. These Christian beliefs shape whatwe do and provide the basis on which our work is founded.

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

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

We recognise that a limited number of posts require people who arepersonally committed to the Christian faith in order to maintain our ethos.In 2009 the Trustees approved a Basis of Faith to which holders of theseposts assent.

OBJECTIVESThe objects of the charity are:

• To assist or educate any person in charitable need and, inparticular but without limitation, any disabled person and theparents, guardians and carers of such people by whatevermeans.

• To provide facilities, support, advice and assistance for Christiancongregations, other Christian groupings and community groupsseeking to alleviate charitable needs.

These Objects are pursued in each case in a manner which authenticatesthe Christian Faith and its moral principles in a spirit of love and practicalChristian service. For the purposes of these objects “Christian Faith”means the Christian Faith as revealed and expressed in the HolyScriptures, both Old and New Testaments.

“It’s the dream ofevery mother tosee her daughter

married.”Elaine, Wall Street

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REVIEW OF THE YEAROver the second full year of operation, Livability has offered a wide rangeof high quality services that enable people to live their lives to the full.During the last twelve months, we have further consolidated the gainsachieved from the merger of John Grooms and the Shaftesbury Society,delivering consistently high quality care and support services, whilstincreasing the Charity’s efficiency, placing it on a much surer financialfooting to face the future.

In January 2010 Livability achieved the ‘Investors In People’ award,recognising the importance of investing in our staff and volunteers.Working alongside the people who use our services we have alsocampaigned for more opportunities for young disabled people as theytransition to adulthood; completed a successful capital appeal to increasethe educational provision and residential accommodation at Hinwick HallCollege and continued two capital appeals to improve the facilities at ourschool in Bournemouth and residential care home in Norwich.

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

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

On 28 February 2010 Livability Housing, a Registered Social Landlord(RSL), which had formerly been an independent sister charity prior to themerger of John Grooms with the Shaftesbury Society completed a transferof engagements to Habinteg Housing Association Ltd in order to create alarger organisation focusing on the housing needs of disabled people andthe development of specialist wheelchair accessible housing within theprovision of such services as regulated by the Tenants’ Services Authority.As a consequence of the transaction, Livability Housing also withdrew as aparticipating employer in the John Grooms Pension & Assurance Schemeand bought out all pension liabilities attaching to its current and formeremployees.

The Trustees have referred to the Charity Commission’s guidance onpublic benefit when reviewing Livability’s Aims, objectives and activities for2009/10. In particular, they considered how planned activities wouldcontribute to the Charity’s Aims and objectives. This review looks at whatwe said we would do under each of our four strategic Aims, what weactually achieved and what we plan to do next year. The review looks atthe success of each key activity and the benefits they have brought tothose groups of people we are set up to help. The review also helps us toensure our Aims, objectives and activities remain focused on our statedpurposes.

In 2009/10 our four strategic Aims were as follows:

Aim 1: To work in partnership with disabled people to develop, design andprovide a wide choice of services which enable disabled children, youngpeople and adults to live life to the full.

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


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

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

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

What we did in 2009/10 –Aim 1: Delivering high quality services

Central to our mission and the delivery of our vision is the provision of awide range of services that provide opportunities for disabled children,young people and adults. During this past year Livability has positivelyassisted almost 5,000 disabled people and:

• Provided residential or nursing care to an average of 272 disabledpeople at any given time

• Supported around 100 disabled people to live in their own homesthrough our supported living services

• Enabled 200 disabled people to fully participate in localcommunity activities through the support of our Lifestyle Choicesprojects

• Educated over 200 school pupils and college students

• Provided specialist rehabilitation for over 250 people through ourspecialist brain injury rehabilitation unit

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

• Run training events for over 880 health professionals in Asia toimprove the rehabilitation and treatment offered to disabledpeople and their families.

The quality of our services was judged by our independent regulators asfollows:

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

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

• In the fourth quarter monitoring report for 2009/10, SDAregistered provision had an average of 77% of their staff NVQqualified and Education an average of 62%

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

What we said we would do What we did

A new pool, therapy roomsand sports facilities at VictoriaEducation Centre andSpecialist Sports College(VEC) in Poole

At Victoria Education Centre in Poole aspecial development appeal for £4m isunderway for the building of a newhydrotherapy pool and therapy centre.The fundraising campaign has now startedwith a local appeal committee establishedwhich is chaired by a local businessmanGeoffrey Warde MBE. The campaign tothe end of March has raised £275,000 aswell as further receiving pledges ofsupport and gifts in kind.

New studentclassrooms/bedrooms atHinwick Hall College

The fundraising campaign at Hinwick Hallraised £207,800 enabling new studentaccommodation and classrooms to beopened in September 2009 for theadmission of 11 additional students.

New communal facilities andadditional rooms in JohnGrooms Court Care Home inNorwich

With the local support of a dedicatedFundraising Appeal Committee, led by itsChairman Canon Richard Bowett, as wellas fundraising through grant makers andindividual donors, a total of £229,000 hasbeen raised, with further pledges receivedfor cash of £35,000 and gifts in kind of£26,700.

Recognising and valuingemployees and involvingthem through an employeeforum

Livability achieved an Investors in Peopleaward in January 2010, which reflects ouroverall investment in the way we manageour people. The first Princess RoyalLivability Awards were presented by ourRoyal Patron in October 2009, whichrecognised the outstanding achievementof twelve employees and volunteers. TheEmployee Consultation Forum hasprovided an input to important policies,and contributed to work on improvingLivability’s internal communication.

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

Invest in Livability’s estate by running fundraising campaigns for:

Invest in our people by:


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Increasing user engagementand involvement through thedevelopment of a userinvolvement strategy

A User Involvement Strategy wasdeveloped involving the people who useLivability’s services and is beingimplemented by the User InvolvementCo-ordinator and monitored by the Board.

Implementing acomprehensive learning anddevelopment plan includinginvesting in leadership andperformance managementdevelopment

A management training programme wasrolled out to managers across Livability todevelop leadership and management skillswith separate days of training focusing onManagement Matters, PerformanceMatters, Team Matters, RecruitmentMatters and Managing Safeguarding.More than 90 different managers filled 185course places arranged over 31 trainingdays in the year.

Extending the application of'thin client' computing to ourservices and furtherdeveloping our strategy andICS infrastructure bymigrating central data ontounified servers.

Our Information and CommunicationSystems (ICS) support service was re-tendered in 2009, resulting in the creationof a unified in-house support team inFebruary 2010. This team have continuedto ‘roll out’ thin client architecture to allcare services and have migrated centraldata onto unified servers.

Improving our HumanResources managementinformation and transactionprocessing through theimplementation of a new HRInformation System.

A new HR Information system wasimplemented. This has been rolled out tocentral office staff and the Education unitsenabling direct entry of leave onto thesystem, which reduces paper processing.The extension of this to our serviceremains work in progress due to thecomplexities of 24/7 rotas. An automatedlink between the HR system and thepayroll system is now functioning.

Invest in our people by:

Invest in systems and process improvements by:

Undertaking a Safeguardingreview of all services

An independent review has beenundertaken of Livability’s safeguarding,which rated our practice in adults andchildren’s services as satisfactory, withgood prospects for improvement. Anaction plan is being implemented toensure that we drive continuousimprovement in this area.

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What we did in 2009/10 –Aim 2 Campaigning for social justice

The second part of our mission outlines the importance of campaigning forchange. Livability’s campaigns are evidenced based, drawing on the directexperience of our operational work.


During 2009/10 we plannedto build on the ‘Freedom toLive’ campaign by workingwith young disabled peopleand partner organisations toraise funds for a Transitionswebsite – dedicated toproviding online informationfor young people as theymove from childhood toadulthood. Young disabledpeople will be involved in thedesign and content of thewebsite from the outset toensure that the site isattractive, relevant and fullyaccessible.

Funding applications have been made tosix major grant makers, including the BigLottery, Awards for All and the Departmentof Health for the Transitions website. In-kind funding of £40,000 has been securedfrom Cimex, a full-service digital agency,who would help us with the sitedevelopment.

The Freedom to Live campaign hascontinued to be developed throughattendance at the autumn party politicalconferences and the release of primaryresearch, undertaken with disabled peopleand local authorities, around personalbudgets.

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


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What we did in 2009/10 –Aim 3 Pioneering new solutions and sharing expertise

Drawing from its rich heritage, Livability aims to continue the tradition ofpioneering new solutions and ensuring that best practice is shared. In2009/10 Livability undertook the following:


Continue to explore thedevelopment of Nash Collegeof Further Education

Extensive work has been undertaken onthe feasibility of moving Nash College to anew site. The closure to all newapplications of the Learning and SkillsCouncil’s (LSC) capital funding round lastyear has meant that we could not applyfor funding to re-provide for a new college.As a result alternative ways have beeninvestigated to improve on-site facilities.Considerable investment has been madein the current site, with further workplanned 2010/11. Alternative contingencyplans are now being developed to assessthe possibilities of moving some aspectsof the service provision off the site instages.

2009/10 Aim 3:

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

• We will equip, enable and inspire the Church to respondeffectively to issues of poverty and injustice in a range of practicalways through community development and social action.

Develop a modular approachto a curriculum designed toenrich the lives of youngpeople with complex needs.

The curriculum and assessmentframeworks at both Hinwick and NashColleges have been revised to meet thenew requirements of Foundation Learning.The curriculum offered recognisesachievement at differing developmentalstages within a 10 stage continuum.Within VEC, the course programme for thePost 16 department has been significantlychanged and improved to increase thenumber of available courses. This hasbeen implemented as a very positiveresponse to the students. The primarycurriculum has also been re-shapedahead of statutory changes.

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Deliver attractive LifestyleChoices projects and exploreinnovative new models for thedevelopment of residentialcare in response to the'personalisation' agenda.

Additional funding has been secured forthe Lifestyles Choices projects whichenabled them to deliver services to morepeople last year, including grants from theBig Lottery Fund of £78,000, restricted tothe Plymouth Lifestyles Project. Researchhas also commenced into thedevelopment of a new Lifestyles project inNorth London. Alongside this, newmodels of care have been prepared byarchitects and a feasibility study hascommenced for the use of these modelsin the re-provision of existing services,initially at Ashley House.

2009/10 Aim 3:

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

• We will equip, enable and inspire the Church to respondeffectively to issues of poverty and injustice in a range of practicalways through community development and social action.

Continue to share bestpractice in communitydevelopment across a widerrange of Churches andChristian organisationsthrough the partnership withTearfund.

The partnership with Tearfund hasincreased the scope of our sharing bestpractice. In under a year, over 8,000different people have visited theCommunity Mission website anddownloaded a huge amount of resourcematerials for churches. Enquiries haveincreased and through associated eventsmore churches are being reached.Circulation of Community Mission’smonthly e-newsletter has increased byover 100% to 2,300 subscribers.


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What we did in 2009/10 –Aim 4 Securing the resources to deliver our mission

The last twelve months has focused on consolidating the efficiency gainsfrom the merger and placing the Charity on a surer financial footing for thefuture. The goal of producing a break-even budget at the operational levelin 2009/10 has been achieved. The Charity now has a firm foundation onwhich to build for growth.


Continue to work inpartnership with valuedexisting supporters and investin acquiring new supportersand partnerships, particularlythrough a new CorporateDevelopment Board.

Donor recruitment campaigns took placein early summer and late autumn and newsupporters were recruited. Partnershipsand volunteer programmes weredeveloped with three key companies anddiscussions also took place with keydonors on the inception of a DevelopmentBoard. These plans are ongoing.

2009/10 Aim 4:

We will continue to search for ways in which we can increase ourservice efficiencies and secure the financial and human resourcesneeded to deliver our mission. We shall continue to press for fullcost recovery from our funders and further invest to raise our long-term voluntary income.

Continue to review our centralsystems and processes sothat they are as effective andefficient as possible and betterable to support the front-lineservices. This includesdevelopment of a moreefficient procurement strategy.

Over the last twelve months improvementshave been made in the efficiency of centralfinance systems, building on the efficiencygains made in other central support servicesduring the first year post-merger. An analysishas been undertaken of the way Livabilityprocures agency staff and new arrangementsput in place to further increase efficiency.

Review our governancearrangements after the firstyear of operation to ensuredecision making anddelegation processes areappropriate and effective.

A governance review was undertaken afterthe first year of operation and amendmentsmade to the governance structure basedon the lessons learnt. Plans are in placefor the Board to undertake an annualappraisal to ensure that decision makingprocesses are appropriate and effective.

Develop a long term financialplan, which continues tofocus on increasing efficiency.

Over the last two years Livability has securedthe efficiency gains from the merger and in2009/10 produced an unrestricted surplusof £1.3m. Over the last six months workhas progressed on developing a longer termstrategy for the next five years, which buildson the firm foundations that have been putin place. This longer term strategy will besupported by a five year financial plan that isbeing used to model scenarios and ensurethat Livability continues to focus onincreasing efficiency as well as effectiveness.

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What we plan to do in 2010/11

As part of their review of the Charity’s strategy and corporate businessplanning for future years, the Trustees have expanded and prioritised sixaims through which Livability will deliver its mission in 2010/11.

Aim 1: To continue to provide and improve our high quality, cost effective,personalised services that support, educate and enable disabledchildren, young people and adults to live their lives to the full

Aim 2: To equip and inspire local churches and ourselves to respondeffectively to issues of poverty, disability and injustice in a range ofpractical ways through community development and social action

Aim 3: To bring about positive change by speaking out with disabledpeople and disadvantaged communities against injustice

Aim 4: To provide our existing services to a greater number of people,and to pioneer the development of new cost effective qualityservices that meet disabled children’s, young peoples’ and adults’aspirations

Aim 5: To develop, maintain and engage our workforce in line with ourvalues to achieve the needs of our services and service users

Aim 6: To increase efficiency in order to make the most effective use ofour resources.

The priority action that will be undertaken next year to achievethese aims is as follows:

Aim 1: We will continue to provide and improve personalised, high quality,cost effective services that support, educate and enable disabledchildren, young people and adults to live their lives to the full.

We plan to achieve this through:

• Continuing to re-shape existing provision and support servicesto deliver personalised services and prepare for individualbudgets

• Refining and improving Livability’s quality management systemin the light of the new registration standards and inspectionframeworks that regulate Livability’s work

• Investing in improving our buildings and estate, throughcontinuing the capital appeals at Victoria Education Centre andJohn Grooms Court and the two feasibility studies into the re-provision of off-site learning at Nash College and upgrade ofAshley House.

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

We plan to achieve this through:

• Maximising impact through the partnership with Tearfund

• Developing training resources and materials


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

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

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

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

• Developing and implementing a strategy to incrementally offeradditional flexible, personalised services to disabled childrenand adults, tailored to meet their needs

• Developing and implementing a marketing strategy to informdisabled people and their families of the personalised serviceswe offer

• Continuing to raise voluntary income to support the quality andgrowth of our work.

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

We plan to address this through:

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

• Developing and implementing a Volunteers’ Strategy

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

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

• Maintaining levels of high occupancy in Education and Servicesfor Disabled Adults schemes

• Utilising Information and Communications Systems (ICS) toincrease efficiency through implementation of the ICS BusinessPlan

• Continuing to deploy strategies to effectively manageprocurement.

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REPORT OF THE BOARDThe Board of Trustees submits its Report and Financial Statements for theperiod to 31 March 2010.

Structure, governance and management

Livability is the operating name of Grooms-Shaftesbury, which is aregistered Charity (Charity Registered No.1116530) and a company limitedby guarantee (Company Registered No.5967087). The Company isgoverned by its Memorandum and Articles of Association (the governingdocuments) as amended during 2009. In the event of winding up,Members’ liability is limited to £1 each.

Board of trustees

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

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

The Trustees are supported by the Governance and Development Sub-Committee which reviews the operation of Livability’s governance throughself assessment and other means and makes recommendations to theBoard to improve the effectiveness and efficiency of these arrangements.

The Governance Development Sub-Committee developed a process forrecruiting Trustees based on identifying skills and diversity gaps, which wasratified by the Board in September 2008. Two Trustees have beenappointed over the last twelve months following this procedure, followingthree such appointments during the previous year. These additional fiveTrustees have brought additional skills and experience to the Board andincreased its ethnic diversity and experience of disability.

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

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

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

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


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The Sub-Committees are:

• Finance and General Purposes – oversees all matters related tofinance, funding, asset management, HR and Remuneration andInformation and Communication Systems (ICS).

• Audit – oversees internal audit, trust responsibilities, riskmanagement and arrangements for the external audit of theCharity. The Chair of this Sub-Committee Alastair Collett, is aSolicitor and a former Trustee of The Shaftesbury Society.

• Fundraising and Marketing – oversees fundraising and marketingtogether with all internal and external official communications andpublic relations.

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

• Education Oversight – oversees quality, performance anddevelopment issues at each education establishment and receivesreports from their Local Governors’ Boards. The Local Governors’Boards act as 'critical friends' with a particular focus on the self-assessment quality improvement cycle within a formal scheme ofdelegation.

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

Chief Executive

The Chief Executive is responsible for the management of the Charity’saffairs, for implementation of policies agreed by the Trustees and delivery ofthe business plan. The Chief Executive is assisted by a group of SeniorOfficers, the Directors Management Team. The Trustees approve thedelegation of financial authority through the Chief Executive to SeniorOfficers, with specific limits imposed within approved authority levels whichare reviewed at least annually. The Board would like to express its thanks tothe current Chief Executive Mary Bishop, who will be leaving the Charity inSeptember 2010 after eight years of leading first the Shaftesbury Societyand, since the merger in June 2007, Livability. The Trustees confirmed theappointment of Michael Smith OBE as the new Chief Executive on 29 July2010 and he takes up this role in early October.

Equal Opportunities Policy

The Charity is an equal opportunity employer and recognises thatdiscrimination would be contrary to several of its core values. The Charitybelieves that equality and diversity should be integrated into allmanagement and employment practices and that the more diverse webecome, the more we reflect the society we support. Respecting theunique worth of every employee moves us further towards the goal ofeliminating unlawful discrimination in the workplace. The Charity activelywelcomes the involvement, support and employment of disabled peopleand is committed to promoting diversity in our workplaces.

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The Charity takes all reasonable measures to ensure that jobs are madeavailable to disabled people and ensures that working conditions areadapted suitably so that disabled people can work within the organisation.We have received formal recognition of our commitment to the PositiveAbout Disabled People ‘Two Ticks’ standard.

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

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

GROUP STRUCTURETrusts

Since the merger of The Shaftesbury Society and John Grooms all but onetrust, the Samuel Hale Bibby Endowment Fund, has been vested in thecorporate trusteeship of Livability.

Subsidiary Entities and Associated Charities

The Charity has four subsidiary trading entities, as follows:

John Grooms Contracting Services Limited is engaged in construction andother contracting services on behalf of the Charity, and Livability Limitedmanages a contract with Suffolk PCT for the provision of brain injuryrehabilitation services at our Icanho centre. Any profit arising from thesecompanies is gift aided to Livability.

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

As the Corporate Trustee, the Charity fully consolidates the results of TheShaftesbury Society and John Grooms, together with the active tradingsubsidiaries noted above.

In addition, the financial results of Kingsley Hall have been consolidated intothe accounts of Livability since 2007/8 when the work of Kingsley Hall wastransferred from a trust to a registered charity and company limited byguarantee known as Kingsley Hall Church and Community Centre.

Lastly, the Charity includes the results of Livability Ireland, a companylimited by guarantee and registered as a charity in the Republic of Ireland,which supports the development of spinal injury rehabilitation services in anumber of South Asian countries. Livability provides financial and nonfinancial support to this charity.


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INTERNAL FINANCIAL CONTROL ANDORGANISATIONAL RISKThe Trustees are responsible for ensuring that appropriate systems offinancial control are in place including the provision of satisfactory controlover the Charity’s accounting records and transactions, safeguarding itsassets and taking reasonable steps for the prevention and detection offraud. Financial control is underpinned by:

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

• Key financial policies and procedures reviewed at least annually.

• Internal Audit resources working to a programme based onassessed audit need and risk with direct access, if necessary, tothe independent Chair of the Audit Sub-Committee

• An agreed set of key performance indicators which are monitoredat least quarterly with leading indicators monitored on a monthlybasis.

The Trustees realise the importance of effective risk management and directresources to mitigate the major risks to which the Charity is exposed. Thestrategic risks of either a direct financial or non-financial nature have beenidentified and are documented in the Charity’s Risk Register. The impactand probability of each risk has been evaluated. Appropriate actions tomitigate each risk to an appropriate level are documented, assigned andmonitored. The Charity’s Risk Register is reviewed regularly by theDirectors Management Team and the Audit Sub-Committee; their reportsare reviewed at least annually by the Board of Trustees. As a furthersafeguard, all members of staff have the opportunity to identify risksthrough both formal and informal processes, including via a “whistleblowing” procedure.

Livability’s strategic risk register has identified the following strategic risksfor the Charity:

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

We are looking to mitigate this risk by continually seeking efficiencysavings throughout the Charity. In addition, we are undertakingdetailed analysis of and remodelling the cost base for our services,reducing the cost of agency staff and the number of occupancyvoids through increased marketing activity while continuallypressing our funders for full recognition and recovery of all therelevant costs in our fee negotiations with them.

2. Exposure to major changes in government policy andcommissioning arrangements in adult care and special needseducation leading to:

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• Changes in recruitment arrangements and income streams forlearners attending our educational establishments.

• Changes in adult services arising from the personalisation agendaand the introduction of personal budgets.

We are working closely with key educational partners in theregions including the LSC and its successor bodies and closelymonitoring the opportunities and risks arising from these changes.Further we have, and will continue to, develop our models of carefor disabled adults to embrace personalisation and as opportunitypermits, seek to develop our existing residential services as hubsfor a range of different services to meet the needs of disabledpeople in their local communities.

3. The impact of the economic recession on levels of unrestrictedvoluntary income and committed giving combined with high ratesof donor fatigue and a reduction in funding from grant makingtrusts and statutory sources.

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

4. The scale of the investment programme that is required to maintainand upgrade the premises and facilities of our school, colleges anda number of our residential care services, as well as the Charity’sInformation and Communication Systems (ICS) capability andinfrastructure both within services and in central support.

We are addressing this risk by conserving our resources andtargeting improvements critical to business continuity and quality ofcare/fulfilment of educational attainment. Where completereprovision is required we are closely analysing the mostappropriate form for reproviding services into the future to ensurethat these have the flexibility to meet both current and futuredemands and are resilient to future changes of use. Costengineering will be used to ensure that reprovision is undertaken atthe lowest possible cost without compromising the quality,effectiveness or flexibility of the provision. This will includeexploration of innovative forms of design and building techniques.We will closely monitor Livability’s cash in order to ensure thatinternal resources are available to sustain this longer terminvestment activity alongside carefully targeted capital appeals tomaximise funding from individual, statutory and trust fundingsources.

5. Triennial actuarial revaluations for Livability’s two closed final salarypension schemes funding revealed a significant deterioration in thefunding position of these schemes on the scheme specific fundingbasis despite several years of significantly increased contributionsto repair the original deficits.

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


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RESULTS FOR THE YEAR AND RESERVESIncome and Expenditure Account

The year ending 31 March 2010 has seen significant strengthening ofLivability’s financial position, in addition to considerable progress towardsthe service development goals that were set at the time of merger of JohnGrooms and the Shaftesbury Society in 2007. Overall, net incomingresources at the operating level (ie: before transfers between funds andbefore recognised gains and losses on assets, investments and pensions)for this year totalled £2.2m, a substantially improved outcome comparedwith the £1.3m net deficit incurred in 2008/09 when Livability was still intransition post-merger.

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

Income from services increased by 2% in total with a particularly strongperformance for the second year running from our Education services,which together increased income by £1.7m (11%), half of which originatedfrom Hinwick College. Income from Services for Disabled Adults was down6% due in the main to the activities discontinued in the previous year.

Fundraised income was strong this year, increasing in total by 13% (08/09 –fall of 11%) largely as a result of capital appeals relating to the threeEducation establishments and to John Grooms Court. This outcome isparticularly pleasing in the context of the continued challenges presentedby the UK economic environment, and is testament to the skill and hardwork of the fundraising team. It is encouraging that our legacy income hasremained buoyant, since we continue to rely on unrestricted funds tounderwrite the total costs of providing our charitable services. Whilst fullcost recovery remains our aspiration, this will require considerable furtherefficiency savings in the light of the downwards pressure that we expectfrom public sector funders in the immediate years to come.

Once again, the accounting (FRS17) valuation of our closed defined benefitpension schemes has impacted heavily on our results, reflecting continuedvolatility in the markets as well as hardening of a number of the keytechnical assumptions. As a result, for the second year running weexperienced a significant unrealised actuarial loss (09/10 - £3.0m, 08/09 -£3.8m) with the combined deficits for FRS17 purposes of the John Groomsand Shaftesbury Society schemes now totalling £10.1m (08/09 - £7.3m).The increase in deficits is notwithstanding our continued annual deficitrecovery payments of £0.8m.

The revaluation of fixed assets this year has resulted in our recording anunrealised accounting loss of £1.0m under Other RecognisedGains/(Losses), due mainly to Nash College now being valued on anexisting use basis. In 2008/09 there had been an expectation that thisproperty and the associated land would be subject to a swap for analternative local site. The asset had, as a result, been assigned theindicative market value relating to that prospective transaction in Livability’s08/09 accounts. Financial appraisal of the proposed scheme indicated thatthe capital development required to re-site Nash would not be affordable for

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

Key Balance Sheet Movements

The land and buildings for a unit discontinued in a previous year, theBurton Hill School, was sold during the year for £1.8m, generating aprofit on disposal of £0.7m. As noted above, we revised downwardsthe value of Nash College of Further Education and Victoria EducationCentre to replace the market values previously held with the now moreappropriate existing use values, resulting in a write down of £1.0m. Thiscontrasts with net upwards revaluations totalling £0.4m in 2008/09.

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

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

Cash Flow

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

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

Reserves

The Trustees have reviewed the requirement for general reserves, which arethose unrestricted funds not invested in fixed assets, designated for specificpurposes or otherwise committed. The Trustees consider that the Charityshould aim to hold general reserves equivalent to between four and eightweeks’ expenditure, to provide sufficient flexibility to cover short-term risksand uncertainties (as described more fully on pages 20 and 21) fromchanges in public policy and funding towards the services provided byLivability, the volatility of voluntary income and Livability’s investmentprogramme, as well as temporary cash flow timing differences, adequateworking capital and the Charity’s contractual obligations to staff.

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

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


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

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

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

Investment Policy

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

Consequently, in line with its fiduciary duties, the Board of Trusteesconsiders it prudent to invest such reserves over the term appropriate untilthey are required as liquid funds. For cash required for the day to dayoperating needs of the Charity, these will be held in cash at commercialbanks that are considered by the Trustees to have appropriately low riskprofiles, or in UK government Treasury Bills. For funds being held towardsspecific future purposes over the medium or longer term, these may beinvested either in deposit accounts or managed balanced funds that meetthe Trustees’ required minimum risk and credit rating.

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

Occasionally, Livability is gifted shareholdings in individual stocks. It is theTrustees’ policy to consider on a case by case basis whether to liquidatesuch shareholdings on receipt

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STATEMENT OF TRUSTEES' RESPONSIBILITIESThe Trustees are responsible for preparing the Trustees' annual report and thefinancial statements in accordance with applicable law and United KingdomAccounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for eachfinancial year that give a true and fair view of the state of affairs of the groupand the parent charity and of the incoming resources and application ofresources, including the net income or expenditure, of the group for the year.In preparing those financial statements the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgments and estimates that are reasonable and prudent;

• state whether applicable accounting standards have beenfollowed, subject to any material departures disclosed andexplained in the financial statements;

• prepare the financial statements on the going concern basisunless it is inappropriate to presume that the Charity will continuein business.

The Trustees are responsible for keeping accounting records that disclosewith reasonable accuracy at any time the financial position of the groupand the parent charity and enable them to ensure that the financialstatements comply with the Companies Act 2006. They are alsoresponsible for safeguarding the assets of the group and hence for takingreasonable steps for the prevention and detection of fraud and otherirregularities.

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

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

DISCLOSURE OF INFORMATION TO AUDITORSEach of the members of the Board of Trustees has confirmed that:

• so far as he/she is aware, there is no relevant audit information ofwhich the Charity’s auditors are unaware, and

• he/she has taken all the steps that he/she ought to have taken as amember of the Board in order to make himself/herself aware of anyrelevant audit information and to establish that the Charity’s auditorsare aware of that information.

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

M P A LangworthCompany secretary


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INDEPENDENT AUDITORS' REPORT TO THEMEMBERS AND TRUSTEES OF LIVABILITYWe have audited the financial statements of Grooms-Shaftesbury for theyear ended 31 March 2010 which comprise the consolidated statement offinancial activities, the consolidated and parent charity balance sheets, theconsolidated cash flow statement and the related notes. The financialstatements have been prepared under the accounting policies set outtherein.

This report is made solely to the parent charity's members as a body, inaccordance with Chapter 3 of Part 16 of the Companies Act 2006. Ouraudit work has been undertaken so that we might state to the parentcharity's members those matters we are required to state to them in anauditors' report and for no other purpose. To the fullest extent permitted bylaw, we do not accept or assume responsibility to anyone other than theparent charity and the parent charity's members as a body, for our auditwork, for this report, or for the opinions we have formed.

Respective responsibilities of Trustees and auditors

The responsibilities of the Trustees (who are also the directors of thecompany for the purposes of company law) for preparing the Trustees'annual report and the financial statements in accordance with applicablelaw and United Kingdom accounting standards ('United Kingdom GenerallyAccepted Accounting Practice') and for being satisfied that the financialstatements give a true and fair view are set out in the statement ofTrustees' responsibilities.

Our responsibility is to audit the financial statements in accordance withrelevant legal and regulatory requirements and International Standards onAuditing (UK and Ireland).

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

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

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

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

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Basis of audit opinion

We conducted our audit in accordance with International Standards onAuditing (UK and Ireland) issued by the Auditing Practices Board. An auditincludes examination, on a test basis, of evidence relevant to the amountsand disclosures in the financial statements. It also includes an assessmentof the significant estimates and judgments made by the Trustees in thepreparation of the financial statements, and of whether the accountingpolicies are appropriate to the group’s and the parent charity'scircumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the informationand explanations we considered necessary in order to provide us withsufficient evidence to give reasonable assurance that the financialstatements are free from material misstatement, whether caused byfraud or other irregularity or error. In forming our opinion we alsoevaluated the overall adequacy of the presentation of information in thefinancial statements.

Opinion

In our opinion:

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

• the financial statements have been properly prepared in accordancewith United Kingdom Generally Accepted Accounting Practice;

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

• the information given in the Trustees' annual report is consistentwith the financial statements.

Ian MathiesonSenior statutory auditor

For and on behalf of PKF (UK) LLP, Statutory auditorsLondon, UK


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“Every parent wants to see their child take their first steps,but when you have waited nine years it's overwhelming.”Danielle's mum, Victoria Education Centre

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

Unrestricted Restricted Permanent Total Funds Total FundsFunds Funds Endowment 31 March 31 March

Funds2010 2010 2010 2010 2009

Notes £’000 £’000 £’000 £’000 £’000Incoming resourcesIncoming resources fromgenerated fundsVoluntary income 2 4,911 1,472 – 6,383 5,658Investment income 3 392 1 37 430 603Incoming resources from charitableactivitiesIncome from continuing activities 2 34,617 571 – 35,188 33,788Income from discontinued activities 5 – – – – 825Other incoming resources:Trusts 2 – – 27 27 77Profit on disposal of fixed assets 658 – – 658 251

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Total incoming resources 40,578 2,044 64 42,686 41,202

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Resources expendedCost of generating voluntary income 4 2,206 25 – 2,231 2,089Direct charitable expenditure 4 37,430 333 – 37,763 37,893Expenditure from discontinued activities 5 – – – – 1,728Other costs 4 98 – – 98 114Trusts 4, 10 – – 85 85 96Grant to Livability Housing 4 – – – – 300Governance costs 4 347 – – 347 315

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Total resources expended 40,081 358 85 40,524 42,535

––––––––– ––––––––– ––––––––– ––––––––– –––––––––

Net income/(outgoings) for the year 497 1,686 (21) 2,162 (1,333)before transfersGross transfers between funds 16,17 813 (813) – – –

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Net income/(outgoings) for the year 1,310 873 (21) 2,162 (1,333)after transfers

Other recognised gains / (losses)Net gain/(loss) on revaluation of fixedassets for Charity’s own use 9 (998) – – (998) 440Gains/(losses) on investment assets 11 74 – 97 171 (48)Actuarial losses on defined benefitpension schemes 22 (2,977) – – (2,977) (3,844)

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Net movement in funds (2,591) 873 76 (1,642) (4,785)

Reconciliation of fundsBalance at 1 April 2009 36,350 2,657 4,131 43,138 47,923

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Balance at 31 March 2010 33,759 3,530 4,207 41,496 43,138

––––––––– ––––––––– ––––––––– ––––––––– –––––––––

All the above results are derived from continuing activities, with the exception of the income & expendituremarked as discontinued, and referred to in note 5.The accompanying Notes to the Financial Statements form an integral part of these financial statements.There were no recognised gains or losses other than those reported above.


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30

Report and Accounts: year ended 31 March 2010 Registered company no. 5967087

CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT31 MARCH 2010

Note Group Group Charity Charity2010 2009 2010 2009£’000 £’000 £’000 £’000

Fixed assetsTangible assets 9 45,995 47,223 43,098 44,232Investments 11 1,235 1,057 1,220 1,045

––––––––– ––––––––– ––––––––– –––––––––Total fixed assets 47,230 48,280 44,318 45,277Current assetsStock 12 32 32 32 32Debtors 13 2,487 3,371 2,440 3,199Bank and cash in hand 7,893 5,740 7,818 5,641

––––––––– ––––––––– ––––––––– –––––––––10,412 9,143 10,290 8,872

Current liabilitiesCreditors 14 (3,235) (4,402) (4,156) (5,117)Provisions 15 (156) (285) (156) (285)

––––––––– ––––––––– ––––––––– –––––––––(3,391) (4,687) (4,312) (5,402)

––––––––– ––––––––– ––––––––– –––––––––Net current assets 7,021 4,456 5,978 3,470

––––––––– ––––––––– ––––––––– –––––––––Total assets less current liabilities 54,251 52,736 50,296 48,747

Creditors: amounts falling due afterone yearCreditors 14 (2,182) (1,876) (2,182) (1,876)Provisions 15 (448) (448) – –

––––––––– ––––––––– ––––––––– –––––––––(2,630) (2,324) (2,182) (1,876)

––––––––– ––––––––– ––––––––– –––––––––Defined benefit pension liability 22 (10,125) (7,274) (10,125) (7,274)

––––––––– ––––––––– ––––––––– –––––––––Net assets 41,496 43,138 37,989 39,597

––––––––– ––––––––– ––––––––– –––––––––FundsRestricted Funds 16 3,530 2,657 3,423 2,495Permanent Endowment Funds 10 4,207 4,131 2,880 2,801Unrestricted Funds:Designated Funds 17 40,197 39,690 38,062 37,576General Funds 17 3,687 3,934 3,749 3,999Pension scheme deficit 17 (10,125) (7,274) (10,125) (7,274)

––––––––– ––––––––– ––––––––– –––––––––Total Funds 41,496 43,138 37,989 39,597

––––––––– ––––––––– ––––––––– –––––––––

The accompanying Notes to the Financial Statements form an integral part of thesefinancial statements.The financial statements were approved and authorised for issue by the Board on29 July 2010 and signed on its behalf by:

Paula KerrTrustee


CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED31 MARCH 2010

2010 2009Note £’000 £’000

Net cash inflow/(outflow) from operating activities 1 2,192 (906)Returns on investment and servicing of finance 2 328 502Purchase and sale of fixed assets 3 194 2,396

––––––––– –––––––––Net cash inflow before use of liquid resourcesand financing 2,714 1,992Financing 4 291 (147)

––––––––– –––––––––Increase in cash in the period 3,005 1,845

––––––––– –––––––––

Reconciliation of net cash flow to movement in net funds 2010£’000

Increase in cash 3,005Cash used to repay bank loans (291)Non-cash movement in loans (8)

–––––––––Change in net funds 2,706Net funds at 1 April 2009 2,947

–––––––––Net funds at 31 March 2010 5,653

–––––––––

Cash Flow Statement Notes1. Reconciliation of net incoming/(outgoing) resources to

net cash inflow/(outflow) from operating activities 2010 2009£’000 £’000

Net incoming / (outgoing) resources 2,162 (1,333)Net investment income (406) (460)Interest receivable (24) (125)Interest payable 109 83Depreciation – fixed assets 688 1,110Profit on disposal of fixed assets (658) (251)Decrease in stock – 51Decrease in debtors 884 1,477Decrease in creditors (437) (495)Decrease in pension provision (126) (963)

––––––––– –––––––––Net cash inflow/(outflow) from operating activities 2,192 (906)

––––––––– –––––––––

2. Returns on investments and servicing of finance2010 2009£’000 £’000

Investment income 405 460Interest received 24 125Interest paid (101) (83)

––––––––– –––––––––Net cash inflow from returns on investmentsand servicing of finance 328 502

––––––––– –––––––––


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Cash Flow Statement Notes (cont’d)3. Purchase and sale of fixed assets

2010 2009£’000 £’000

Purchase of tangible fixed assets (1,584) (809)Sale of tangible fixed assets 1,785 3,197Purchase of fixed asset investments (7) 8

––––––––– –––––––––Net cash inflow from purchase and sale of fixed assets 194 2,396

––––––––– –––––––––

4. Financing2010 2009£’000 £’000

New loans drawn 440 –Repayment of bank loan (149) (147)

––––––––– –––––––––Net cash inflow/(outflow) from management of liquidresources and financing 291 (147)

––––––––– –––––––––

5. Reconciliation of net cash flow tomovement in funds

As at Cash Non-cash As at1 April flow movement 31 March2009 2010£’000 £’000 £’000 £’000

Cash at bank and in hand 2,190 2,153 – 4,343Short term deposits 3,550 – – 3,550

––––––––– ––––––––– ––––––––– –––––––––Cash disclosed in the balance sheet 5,740 2,153 – 7,893Bank overdraft (852) 852 – –

––––––––– ––––––––– ––––––––– –––––––––Total cash 4,888 3,005 – 7,893

Bank loans due within one year (160) 13 – (147)Bank loans due after one year (1,781) (304) (8) (2,093)

––––––––– ––––––––– ––––––––– –––––––––Total bank loans (1,941) (291) (8) (2,240)

––––––––– ––––––––– ––––––––– –––––––––Net funds 2,947 2,714 (8) 5,653

––––––––– ––––––––– ––––––––– –––––––––

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NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTSFOR THE YEAR ENDED 31ST MARCH 2010

1. ACCOUNTING POLICIES

Accounting Basis

The financial statements have been prepared in accordance with applicableaccounting standards under the historical cost convention as modified bythe inclusion of investments and properties at market value. They have alsobeen prepared in accordance with the Statement of RecommendedPractice (SORP) 2005, “Accounting and Reporting by Charities”, issued inMarch 2005.

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

Grooms-Shaftesbury was incorporated on 16 October 2006 to acquire theassets of John Grooms and The Shaftesbury Society; the combination ofthese entities being treated as a merger. The assets and liabilities of thosecharities were transferred to Grooms-Shaftesbury on 28 June 2007 with theexception of certain assets which have been retained within John Groomsand The Shaftesbury Society. These ‘excluded assets’ could not betransferred because of legal complexities affecting the properties in questionand therefore they remain within John Grooms and The Shaftesbury Societytogether with the Samuel Hale Bibby Endowment Fund which also couldnot be transferred for the same reasons from The Shaftesbury Society.Livability is the operating name of Grooms-Shaftesbury.

Consolidation

The Consolidated financial statements include the financial statements ofthe Charity and its subsidiary undertakings, John Grooms, The ShaftesburySociety, John Grooms Contracting Services Limited, and Livability Limited.In addition Kingsley Hall Church and Community Centre and LivabilityIreland are also consolidated on the basis that Kingsley Hall Church is anassociated charity over which Livability can exercise control and LivabilityIreland because the sole purpose of this charity is to manage the activitiesof a spinal injury rehabilitation project in a number of South Asian countrieson behalf of Livability.

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


33


Incoming Resources

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

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

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

Donations received in relation to specific projects are credited to the projectconcerned. Costs of raising funds, including an appropriate allocation ofmanagement time, are shown on the face of the SOFA and are deductedfrom appeal totals before allocation to projects.

Resources Expended

All expenditure is accounted for on an accruals basis and has been listed insuch a way as to accumulate all the Charity’s costs of employees, goodsand services relating to a particular activity of the Charity under that activityheading. 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 theCharity’s central office in London, are allocated to each activity headingusing a number of identified cost drivers, including allocation of time on thebasis of a time apportionment.

Capital Grants

Capital grants are taken as income in the year in which the grant was given.If a donor has a remaining interest in an asset, for example through arequest for a return of funds should the purpose of an asset for which thegrant was given change in some way, the existence of the donor’s interestis shown separately in the accounts.

Discharge of restrictions on grants and donations

Funds given by donors to Livability for a specific activity, project or location arelogged on the fundraising database in such a manner as to link the donationto the purpose for which it is given. To ensure that donors’ wishes aredischarged correctly, donations for a specific activity, project or location of theCharity are accounted for as restricted funds. The restriction is only releasedwhen the activity, project or location has benefited from the spending of thedonation on the purpose for which it was given. In the event that funds weregiven for a particular location but a specific use was not prescribed by thedonor, such funds will be utilised at that location, using the Trustees’ discretion.

34



Governance Costs

Governance costs are those costs associated with the governancearrangements of Livability. The costs comprise mainly internal and externalaudit, legal advice for Trustees and costs associated with constitutional andstatutory requirements. Included in this category are also costs associatedwith the strategic activities of the organisation and a portion of allocatedoverheads in relation to strategic activities.

Fundraising Costs

Fundraising costs comprise salary costs and other associated expenditurerelating to the generation of voluntary income. These appear on the face ofthe SOFA as Cost of Generating Voluntary Income.

Operating Leases

Income and costs with respect to operating leases are either credited orcharged to the SOFA, on an accruals basis, in line with agreements in placeduring the year.

Pensions Costs

The Charity maintains a Group Personal Pension arrangement which isopen to all qualifying members of staff and contributes to an AegonScottish Equitable scheme. Contributions paid by the employer are directlyexpensed in the SOFA.

In addition, the Charity is responsible for two defined benefit pensionschemes which have been closed to new members and further accrual ofbenefits since June 2007. Details of the schemes are disclosed in Note 22to the Financial Statements.

In calculating the pension scheme deficits, the requirements of FRS17 havebeen applied, namely that:

• Pension scheme assets are stated at market value at the balancesheet date.

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

The scheme deficits on an FRS 17 basis are recognised as a DefinedBenefit Pension Liability in the Accounts and matched by a correspondingPension Deficit Reserve.

The annual net movement in the Pensions Reserve comprises four main elements:

1. The monetary contributions paid into the scheme by the employeron the employees’ behalf.

2. The current service cost – the increase in the present value of theschemes’ liabilities and the administration costs of the schemesarising in the year to 31 March 2010.

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

4. Actuarial gains and losses – changes in the actuarial deficits orsurpluses because the actuarial assumptions have changed orevents have not coincided with the actuarial assumptions made forthe last valuation.


35


The sum of items 1-3: the contribution, current service cost and other financecharges is allocated across the headings in the expenditure part of the SOFAin 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 theSOFA under the heading of Actuarial gains/(losses) on defined benefitpension schemes.

Tangible Assets

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

Asset category Useful life Residual value Annualdepreciation

Freehold buildings 100 Years Nil 1%

Horticultural buildings 25 years Nil 4%

Equipment, fittingsand furniture 5 years Nil 20%

Plant and machinery 20 years Nil 5%

Cars 4 years Nil 25%

Minibuses andcoaches 6 years 10% 15%

Computers andsoftware 3 years Nil 33.3%

Chalets andmobile homes 10 to 30 years Nil 10% to 3.3%

Freehold land is not depreciated.

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

Freehold property is held at existing use market value in the balance sheetand undergoes regular market valuation by either external professionalvaluers or by in-house employees with appropriate knowledge andexperience, having regard to various external indicators and in accordancewith the Royal Institute of Chartered Surveyors’ Appraisal and ValuationManual. The valuation cycle completes every five years such that everyproperty is valued at least once every five years. Gains and losses onrevaluation are reflected in the lower part of the SOFA as unrecognisedgains or losses.

Leasehold land and buildings are held at market value, using the samevaluation process as outlined for freehold property. The re-valued amount isamortised evenly over the remaining life of the lease.

Assets which have been donated to the Charity are taken into the books atestimated market value at the date of acquisition and are depreciated in linewith the asset lives shown above.

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

36



Investments

Listed investments and investment properties are stated at market value atthe balance sheet date. Unlisted investments are stated at Board valuation.Any gain or loss on revaluation, realised or unrealised, is shown in the lowerpart of the SOFA.

Stocks

The value of stock is stated at the lower of cost and net realisable value.Cost is calculated on a first in, first out basis by reference to the invoicedvalue of supplies and attributable costs in bringing each product to itspresent location and condition.

Giving by lending deposit taking scheme

Amounts received from supporters under this scheme are invested in highinterest earning deposits.

Taxation Status

No liability to Corporation Tax arises on these accounts as the Charity hascharitable status under Section 505 ICTA 1998.

Funds

Restricted Income Funds

Restricted Income Funds represent income given for particular purposeswithin the objects of the Charity. These funds are expendable at thediscretion of the Trustees in furtherance of a particular aspect of the objectsof the Charity. Where funds have been received for the purpose ofproviding fixed assets these assets remain within the restricted fund wherethe terms of the donation require it.

Permanent Endowment Funds

The Permanent Endowment Funds represent capital assets required to beheld on a long-term basis for specific charitable purposes within the objectsof the Charity and the assets of trusts subject to uniting directions with theCharity.

Unrestricted Designated Funds

These comprise funds that have been set aside at the discretion of the Trusteesfor specific purposes. The purpose and use of the designated unrestrictedfunds 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 arisingfrom the Charity’s activities, which can be appropriated for any charitablepurpose that is compatible with the Charity’s objects.

Transfers between Funds

Transfers between funds in the SOFA are required where restricted funds havebeen expended or have, for other specific reasons, ceased to be restricted.


37


“Everything is taken care of, so I really get tospend quality time with Vera.”Barrie, West Shore

38



2. INCOME FROM CHARITABLE ACTIVITIES

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

2010 2010 2010 2010 2009Unrestricted Restricted Permanent Total Total

EndowmentFunds

£’000 £’000 £’000 £’000 £’000

Income from servicesEducation 15,424 564 – 15,988 14,324Services for Disabled Adults 18,771 7 – 18,778 20,053Community Mission &Linked Churches 76 – – 76 63Other 346 – – 346 173

––––––––– ––––––––– ––––––––– ––––––––– –––––––––34,617 571 – 35,188 34,613

––––––––– ––––––––– ––––––––– ––––––––– –––––––––

Voluntary incomeDonations & GiftsEducation – 842 – 842 331Services for Disabled Adults – 546 – 546 386Community Mission &Linked Churches – 2 – 2 3General fundraising forLivability operations 2,015 1 – 2,016 2,070

––––––––– ––––––––– ––––––––– ––––––––– –––––––––2,015 1,391 – 3,406 2,790

LegaciesEducation – 74 – 74 149Services for Disabled Adults – 7 – 7 –Community Mission &Linked Churches – – – – –General fundraising forLivability operations 2,896 – – 2,896 2,719

––––––––– ––––––––– ––––––––– ––––––––– –––––––––2,896 81 – 2,977 2,868

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Total voluntary income 4,911 1,472 – 6,383 5,658

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Other incomeTrust income – – 27 27 77Investment income 392 1 37 430 603Profit on disposal of fixedassets 658 – – 658 251

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Total other income 1,050 1 64 1,115 931

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Total income fromcharitable activities 40,578 2,044 64 42,686 41,202

––––––––– ––––––––– ––––––––– ––––––––– –––––––––

At the date of the accounts, Livability had been notified of interests in legacies where thereis a life-interest with an estimated value of £2.2m. These interests are not included asincome as set out in the accounting policy for incoming resources.


39


3. INVESTMENT INCOME

2010 2010 2010 2010 2009£’000 £’000 £’000 £’000 £’000

Unrestricted Restricted Endowment Total Total

Listed investments 10 1 10 21 26Unlisted investments 3 – – 3 3Bank interest 24 – – 24 129Rent receivable 355 – 27 382 445

––––––––– ––––––––– ––––––––– ––––––––– –––––––––392 1 37 430 603

––––––––– ––––––––– ––––––––– ––––––––– –––––––––

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

4. TOTAL RESOURCES EXPENDED

2010 2010 2010 2010 2009Unrestricted Restricted Permenent Total Total

EndowmentFunds

£’000 £’000 £’000 £’000 £’000Direct Charitable Expenditure:Education 14,967 65 – 15,032 13,807Services for Disabled Adults 18,588 183 – 18,771 22,000Community Mission andLinked Churches 458 – – 458 441Other 274 85 – 359 368

––––––––– ––––––––– ––––––––– ––––––––– –––––––––34,287 333 – 34,620 36,616

Direct Support Costs:Education services 843 – – 843 865Services for Disabled Adults 2,102 – – 2,102 1,894Community Mission andLinked Churches 198 – – 198 246

––––––––– ––––––––– ––––––––– ––––––––– –––––––––3,143 – – 3,143 3,005

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Direct CharitableExpenditure 37,430 333 – 37,763 39,621

––––––––– ––––––––– ––––––––– ––––––––– –––––––––

Other Expenditure:

Other costs 98 – – 98 114Fundraising 2,206 25 – 2,231 2,089Governance costs 347 – – 347 315Grant to Livability Housing – – – – 300

––––––––– ––––––––– ––––––––– ––––––––– –––––––––2,651 25 – 2,676 2,818

––––––––– ––––––––– ––––––––– ––––––––– –––––––––

Trusts – – 85 85 96––––––––– ––––––––– ––––––––– ––––––––– –––––––––

Total Resources Expended 40,081 358 85 40,524 42,535––––––––– ––––––––– ––––––––– ––––––––– –––––––––

40



4. TOTAL RESOURCES EXPENDED (continued...)

Allocation of support costs

Senior Finance Corporate HR Marketing TotalManagement Support Directorate

Support£’000 £’000 £’000 £’000 £’000 £’000

Education 77 373 110 238 45 843Services for DisabledAdults 81 745 672 489 115 2,102Community Mission& Linked Churches 25 50 58 17 48 198Fundraising 28 220 51 31 40 370Governance 63 114 121 28 21 347

––––––––– ––––––––– ––––––––– ––––––––– ––––––––– –––––––––TOTAL COST 2010 274 1,502 1,012 803 269 3,860

––––––––– ––––––––– ––––––––– ––––––––– ––––––––– –––––––––TOTAL COST 2009 3,666

–––––––––

Governance costs are made up of the following: 2010 2009£’000 £’000

Apportionment of senior management time 288 270External audit fees and other services 50 39Internal audit fees 7 6Trustee costs 2 -

––––––––– –––––––––347 315

––––––––– –––––––––

Total resources expended is arrived at after charging: 2010 2009£’000 £’000

Depreciation (including central office depreciationof £44,453 2009: £62,033) 688 1,110Auditors remuneration:Audit current year 44 44Audit prior year (under accrued) 6 27Other services 5 -Interest payable 109 135Operating lease charges (all land and buildings) 331 337

The breakdown of costs incurred in generating 2010 2009voluntary income for Livability is as follows: £’000 £’000Salaries and other staff related costs 682 770Bought in services 248 270Central administration 369 319Other non staff costs, mostly direct mailing costs 932 730

––––––––– –––––––––2,231 2,089

––––––––– –––––––––


41


5. DISCONTINUED ACTIVITIES

Livability’s sole respite care centre, the Jane Hodge Centre, was sold on 16 March 2009.The results are summarised as follows:

2010 2009£’000 £’000

Income – 825Expenditure – (1,728)

––––––––– –––––––––Total deficit – (903)

––––––––– –––––––––

6. OPERATING LEASES

Annual obligations due under operating leases are as follows:Land and buildings 2010 2009

£’000 £’000Expiring under one year 219 220Expiring between two and five years 109 114Expiring beyond five years 3 3

––––––––– –––––––––331 337

––––––––– –––––––––

7. TRADING SUBSIDIARIES

The results of the wholly-owned subsidiaries Livability Limited (LL), John Grooms ContractingServices Limited (JGCSL) and Livability Ireland (LI) (a company registered in Ireland thatincludes the results of the Charity’s overseas division) have been consolidated within theSOFA . The results and net assets of the trading subsidiaries are summarised as follows:

2010 2010 2010LI LL JGCSL

£’000 £’000 £’000Turnover 208 756 2Operating profit/(loss) 73 – –Gift to the charity – – –

––––––––– ––––––––– –––––––––Aggregate assets 173 2 73Aggregate liabilities (5) – (73)

––––––––– ––––––––– –––––––––Aggregate net assets 168 2 –

––––––––– ––––––––– –––––––––

42



8. EMPLOYEES

Group Group2010 2009FTE FTE

Nursing, care services & ancillary staff 1,484 1,321Teachers and lecturers 62 62Community Mission 8 7Central Office and Administration 43 55Fundraising and communications 19 19

––––––––– –––––––––1,616 1,464

––––––––– –––––––––

Group Group2010 2009£’000 £’000

Wages and salaries 24,747 24,897Social Security Costs 1,879 2,008Pension and Other Costs 2,261 1,956

––––––––– –––––––––28,887 28,861

––––––––– –––––––––

The employee numbers above, expressed as FTEs (full-time equivalents), represent thenumber of staff employed averaged throughout the year.

The number of employees receiving remuneration in the following ranges was:

Group Group2010 2009

No. of employees No. of employees

£60,001 - £70,000 4 5£70,001 - £80,000 3 3£80,001 - £90,000 3 2£90,000 + 1 1

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

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

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


43


9. FIXED ASSETSAll of the tangible assets shown below are used for direct charitable purposes.

TANGIBLE ASSETSGroup

Long Short Furniture,Freehold leasehold leasehold fittings,land & land & land & vehicles,

buildings buildings buildings other Total£’000 £’000 £’000 £’000 £’000

Cost or valuationAt 1 April 2009 46,353 364 595 6,740 54,052Additions 873 – – 711 1,584Disposals (1,139) – – (44) (1,183)Revaluation (998) – – – (998)

––––––––– ––––––––– ––––––––– ––––––––– –––––––––At 31 March 2010 45,089 364 595 7,407 53,455

––––––––– ––––––––– ––––––––– ––––––––– –––––––––

DepreciationAt 1 April 2009 853 21 237 5,718 6,829Charged in year 304 4 27 353 688Disposals (25) – – (32) (57)

––––––––– ––––––––– ––––––––– ––––––––– –––––––––At 31 March 2010 1,132 25 264 6,039 7,460

––––––––– ––––––––– ––––––––– ––––––––– –––––––––

Net book valueAt 31 March 2010 43,957 339 331 1,368 45,995

––––––––– ––––––––– ––––––––– ––––––––– –––––––––At 31 March 2009 45,500 343 358 1,022 47,223

––––––––– ––––––––– ––––––––– ––––––––– –––––––––

44


“It’s great living here. It’s my home.”Andrew, Shaftesbury Court


9. FIXED ASSETS (Continued)

TANGIBLE ASSETSCharity

Long Short Furniture,Freehold leasehold leasehold fittings,land & land & land & vehicles,

buildings buildings buildings other Total£’000 £’000 £’000 £’000 £’000

Cost or valuationAt 1 April 2009 43,401 364 510 6,706 50,981Additions 873 – – 701 1,574Transfers from other groupentities 70 – – – 70Disposals (1,139) – – (44) (1,183)Revaluation (998) – – – (998)

––––––––– ––––––––– ––––––––– ––––––––– –––––––––At 31 March 2010 42,207 364 510 7,363 50,444

––––––––– ––––––––– ––––––––– ––––––––– –––––––––

DepreciationAt 1 April 2009 787 21 228 5,713 6,749Charged in year 280 4 20 350 654Disposals (25) – – (32) (57)

––––––––– ––––––––– ––––––––– ––––––––– –––––––––At 31 March 2010 1,042 25 248 6,031 7,346

––––––––– ––––––––– ––––––––– ––––––––– –––––––––

Net book valueAt 31 March 2010 41,165 339 262 1,332 43,098

––––––––– ––––––––– ––––––––– ––––––––– –––––––––At 31 March 2009 42,614 343 282 993 44,232

––––––––– ––––––––– ––––––––– ––––––––– –––––––––


45

“I was too afraid to talk to strangers, but now I cancontrol my panic attacks more.”Leo, Lifestyle Choices, Bedford


9. FIXED ASSETS (Continued)

The Group’s Freehold Land & Buildings comprise:Permanent

Unrestricted Restricted endowmentfunds funds funds Total£’000 £’000 £’000 £’000

Cost or valuationAt 1 April 2009 42,370 129 3,854 46,353Additions 873 – – 873Disposals (1,139) – – (1,139)Revaluation (998) – – (998)Transfers 70 – (70) –

––––––––– ––––––––– ––––––––– –––––––––At 31 March 2010 41,176 129 3,784 45,089

––––––––– ––––––––– ––––––––– –––––––––

DepreciationAt 1 April 2009 810 8 35 853Charged in year 296 – 8 304Disposals (25) – – (25)

––––––––– ––––––––– ––––––––– –––––––––At 31 March 2010 1,081 8 43 1,132

––––––––– ––––––––– ––––––––– –––––––––

Net book valueAt 31 March 2010 40,095 121 3,741 43,957

––––––––– ––––––––– ––––––––– –––––––––At 31 March 2009 41,560 121 3,819 45,500

––––––––– ––––––––– ––––––––– –––––––––

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

Tangible Assets includes properties revalued as disclosed in the accounting policies.The cost and revaluation amount of freehold property assets is shown below.

Total£’000

Cost of assets revalued 32,486Assets under uniting directions 3,784Revaluation 8,819

–––––––––Market value at 31 March 2010 45,089

–––––––––

The Charity’s properties are revalued over a rolling five year cycle. A number of differentprofessional firms with appropriate specialist knowledge were engaged for the valuationscarried out in the year ended 31 March 2010. A review of these valuations, along with thecarrying values of properties not subject to professional revaluation, was undertaken at 31March 2010 by Hilbery Chaplin Chartered Surveyors with adjustments made to carryingvalues where considered material.

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

46



10. TRUSTSWith the exceptions of the Samuel Hale Bibby Endowment Fund (SHBEF) and the PlattMission (where Livability acted as Co-Trustee with a former Livability Trustee by virtue of theprovisions of the founding trust deed) Livability acted as Sole Corporate Trustee for thefollowing Trusts during the period and in accordance with uniting directions given underSection 96(5) of the Charities Act 1993 by the Charity Commission, the results for theTrusts are amalgamated with the results of Livability. A summary of the objects, and therelationship to Livability, of each Trust is shown in the table below. SHBEF is includedbecause it is consolidated with the Shaftesbury results (for further information see thesection under the heading Accounting Basis in the accounting policy note). Livability alsoacts as a custodian Trustee of Kilburn Evangelical Free Church and sole Corporate Trusteeof the David Livingstone Charity for Handicapped Young People. The funds of this smallCharity are not consolidated there being no uniting direction in place.

Trust Commonly known as Objects

Chiswick Mission Chiswick To promote local mission purposes

Highway Evangelical Church Highway To promote local church and(Stratford) mission purposes

Marsh Street Mission Marsh Street To promote local mission(Walthamstow) purposes

The Coney Hill Will Coney Hill Will To promote the education andwelfare of children and youngpersons

The Shaftesbury Welcome Welcome To promote local mission andMission (Battersea) community purposes

Samuel Hale Bibby SHBEF To advance the education ofEndowment Fund children and young persons with

physical disabilities

The Shaftesbury Shaftesbury To be applied to the generalDevelopment Fund Development purposes of Shaftesbury

The Beddington Fund Beddington To benefit children and youngpersons by ministering to theirneeds, aiding their advancementin life, establishing, taking overand maintaining homes,generally promoting theireducation and welfare

Platt Mission, Putney Platt To promote local missionpurposes and the religiouseducation of children andyoung people


47


10. TRUSTS (Continued)

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

Net Netsurplus/ Unrealised increase/ Funds Funds

Income Expenses (deficit) gains (decrease) b/fwd c/fwd

£’000 £’000 £’000 £’000 £’000 £’000 £’000

Chiswick – (5) (5) – (5) 464 459Highway 52 (58) (6) 16 10 967 977Marsh St. 1 (4) (3) – (3) 436 433Coney Hill Will – – – – – 26 26Welcome Mission 2 (9) (7) – (7) 413 406SHBEF 1 (8) (7) 3 (4) 1,327 1,323Shaftesbury Development 5 – 5 71 76 345 421Beddington – – – 7 7 20 27Platt Mission, Putney 3 (1) 2 – 2 133 135

–––––– –––––– –––––– –––––– –––––– –––––– ––––––64 (85) (21) 97 76 4,131 4,207

–––––– –––––– –––––– –––––– –––––– –––––– ––––––

11. INVESTMENTS

Group Group Charity Charity2010 2009 2010 2009£’000 £’000 £’000 £’000

Securities Market ValueAs at 1st April 2009/2008: 582 785 570 769Additions 7 8 7 8Write-off – 4 – 5Revaluations 171 (215) 168 (212)

––––––––– ––––––––– ––––––––– –––––––––As at 31 March 2010/2009 760 582 745 570

––––––––– ––––––––– ––––––––– –––––––––

UKTreasury Deposits 4Equities 629Overseas equities 62Giving by Lending deposit fund 64Unlisted 1

–––––––––760

–––––––––

48



11. INVESTMENTS (Continued)Group Group Charity Charity2010 2009 2010 2009£’000 £’000 £’000 £’000

Investment Properties7 Rose Court, Kenilworth Road, Coventry 90 90 90 9047 Gibbs Green, Edgware Middlesex 215 215 215 2159 Princess Crescent, Finsbury Park,London 150 150 150 150

––––––––– ––––––––– ––––––––– –––––––––455 455 455 455

Other investmentsListed investments 759 582 744 570Unlisted investments 1 – 1 –Mortgage loan 20 20 20 20

––––––––– ––––––––– ––––––––– –––––––––Total Investments 1,235 1,057 1,220 1,045

––––––––– ––––––––– ––––––––– –––––––––

Analysis of movement on Investments Group Group Charity Charity2010 2009 2010 2009£’000 £’000 £’000 £’000

Value at 31 March 2009/2008 1,057 1,096 1,045 1,080Additions 7 8 7 8Net write-off – 1 – 1Revaluation gains 171 (48) 168 (44)

––––––––– ––––––––– ––––––––– –––––––––Investments at 31 March 2010/2009 1,235 1,057 1,220 1,045

––––––––– ––––––––– ––––––––– –––––––––

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

12. STOCKSGroup Group Charity Charity2010 2009 2010 2009£’000 £’000 £’000 £’000

Plants 27 26 27 26Food 4 4 4 4Bar 1 2 1 2

––––––––– ––––––––– ––––––––– –––––––––32 32 32 32

––––––––– ––––––––– ––––––––– –––––––––


49


13. DEBTORSGroup Group Charity Charity2010 2009 2010 2009£’000 £’000 £’000 £’000

AMOUNTS FALLING DUE WITHINONE YEARTrade debtors and fees receivable 1,379 1,922 1,355 1,919Other debtors 397 516 374 351Prepayments and accrued income 563 685 563 681Short term loans 24 20 24 20Amount due from Habinteg 124 228 124 228

––––––––– ––––––––– ––––––––– –––––––––2,487 3,371 2,440 3,199

––––––––– ––––––––– ––––––––– –––––––––

14. CREDITORSGroup Group Charity Charity2010 2009 2010 2009£’000 £’000 £’000 £’000

AMOUNTS FALLING DUE WITHINONE YEARTrade creditors 890 681 875 663Accruals and deferred income 931 958 931 921Taxes and social security 543 561 543 561Other creditors 719 1,185 671 1,170Bank loans 147 160 147 160Bank overdraft – 852 – 852Amount due to a Trust – – 461 461Amount due to group entities – – 523 324Trust loans 5 5 5 5

––––––––– ––––––––– ––––––––– –––––––––3,235 4,402 4,156 5,117

––––––––– ––––––––– ––––––––– –––––––––

Group Group Charity Charity2010 2009 2010 2009£’000 £’000 £’000 £’000

FALLING DUE AFTER MORE THANONE YEARBank loans 2,093 1,781 2,093 1,781Deferred income 89 95 89 95

––––––––– ––––––––– ––––––––– –––––––––2,182 1,876 2,182 1,876

––––––––– ––––––––– ––––––––– –––––––––

50



14. CREDITORS (Continued)

Bank Loans

The charity had five loan facilities in place at the balance sheet date.

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

2. The second facility is a loan secured on certain of the Charity’s properties. The interestrate on the loan is 1.2% over LIBOR.

3. The third facility is a mortgage secured on one of the Charity’s residential care homes.The mortgage attracts an interest rate of 1.2% over LIBOR but the arrangement issubject to a “cap and collar”, with the cap rate set at 7.75% and collar at 6.55%.

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

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

The loans are repayable by instalments as follows

2010 2009£’000 £’000

Within 1 year 147 1601-2 years 147 1012-5 years 487 441Due after 5 years 1,459 1,239

––––––––– –––––––––

15. PROVISIONS

Group: Part-timeSite workers’

closures pensionand re- claims

Site equity organisation liability Total£’000 £’000 £’000 £’000

Falling due within one year:As at 1 April 2009 80 129 76 285Net movement – (129) – (129)

––––––––– ––––––––– ––––––––– –––––––––As at 31 March 2010 80 – 76 156

––––––––– ––––––––– ––––––––– –––––––––

Falling due after one year:As at 1 April 2009 448 – – 448

––––––––– ––––––––– ––––––––– –––––––––As at 31 March 2010 448 – – 448

––––––––– ––––––––– ––––––––– –––––––––

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


51


Provisions for site equity have been made where other agencies or individuals hold equitystakes in the Charity’s property. The equity stakes will be released on sale of the property.Where the decision to sell can be made by a third party, the liability has been recognised asa short-term liability. Where the Charity has sole control of the decision, the liability isrecognised as a long-term one.

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

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

16. RESTRICTED FUNDSBalance Transfers Balance atat 1 April Incoming Outgoing between 31 March

2009 resources resources funds 2010£000 £000 £000 £000 £000

Specific Project Funds

Education 1,250 1,382 (77) (574) 1,981Services for Disabled Adults 894 196 (63) (23) 1,004Holidays/lifestyle workers/others 194 189 (19) (183) 181Community Mission 101 2 – – 103Overseas 62 164 (114) 1 113Giving by Lending 57 – – – 57F Clements Trust Fund 22 – – – 22Faith Training Centre 35 13 – – 48Kingsley Hall 42 98 (85) (34) 21

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Total Restricted Funds 2,657 2,044 (358) (813) 3,530

––––––––– ––––––––– ––––––––– ––––––––– –––––––––

Name of fund Description, nature and purpose of fundGiving by Lending Monies received from individualsF Clements Trust Fund Income from this fund is to support the Charity’s general activitiesEducation Various funds received to support individual educational

establishmentsAdult Support Various funds received to support individual adult support

establishmentsCommunity Mission To support the work of the community mission team and the

linked churchesFaith Training Centre To support the work of the Faith Horticultural CentreHolidays/Lifestyle Various funds to support the work of our holiday, lifestyle andworkers/others other operationsOverseas Various funds to support our overseas workKingsley Hall To support the work of Kingsley Hall Community Centre

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

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17. UNRESTRICTED FUNDSBalance Net Transfers Other Balance atat 1 April incoming gains and 31 March

2009 resources losses 2010£’000 £’000 £’000 £’000 £’000

Property Fund 26,638 – 1,466 – 28,104Revaluation Fund 10,094 – (277) (998) 8,819Equipment Fund 1,052 – 316 – 1,368Cyclical Maintenance Fund 1,906 – – – 1,906

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Total Designated Funds 39,690 – 1,505 (998) 40,197General Funds 3,934 497 (818) 74 3,687

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Unrestricted Funds beforePension Liability 43,624 497 687 (924) 43,884Pension Reserve (7,274) – 126 (2,977) (10,125)

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Total Unrestricted Funds 36,350 497 813 (3,901) 33,759

––––––––– ––––––––– ––––––––– ––––––––– –––––––––

Name of fund Description, nature and purpose of fundProperty Fund Represents the total amount (at cost or valuation, less

depreciation and unamortised government grants and directborrowings) invested in freehold and leasehold properties used forthe functional purposes of the Charity.

Revaluation Fund Represents the increase or (decrease) in the value of the Charity’sproperty assets.

Equipment Fund Represents the total amount at cost or valuation, less depreciationand unamortised government grants and direct borrowing,invested in fixtures and fittings and motor vehicles used for thefunctional purposes of the Charity.

Cyclical Maintenance Represents monies set aside for the cost of major cyclical repairsFund for all significant properties (apart from horticultural buildings and

mobile homes). The future cost of repair and replacement ofmajor items is estimated and set aside over the repair orreplacement period.

General Funds Represents undesignated monies retained to provide the workingcapital to enable the Charity to carry out its activities.

Pension Reserve Represents the deficit on the Charity’s Defined Benefit pensionschemes.

18. ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS

General Designated Pension Restricted Permanent TotalEndowment Funds

£’000 £’000 £’000 £’000 £’000 £’000Tangible fixed assets 985 41,148 – 121 3,741 45,995Investments – 815 – 48 372 1,235Cash 3,345 1,088 – 3,361 99 7,893Other current assets 2,519 – – – – 2,519Current liabilities (3,162) (224) – – (5) (3,391)Long-term liabilities – (2,630) (10,125) – – (12,755)

––––––– ––––––– ––––––– ––––––– ––––––– –––––––Funds at31 March 2010 3,687 40,197 (10,125) 3,530 4,207 41,496

––––––– ––––––– ––––––– ––––––– ––––––– –––––––


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19. RELATED PARTY TRANSACTIONS

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

20. PARENT CHARITY RESULTS

As permitted by section 480 of the Companies Act 2006 and the provisions of paragraph397 of the Charities SORP 2005, no separate Statement of Financial Activities is presentedfor the parent charity, Livability. In the year ended 31 March 2010, the individual results ofLivability were:

2010 2009£’000 £’000

Income 41,403 39,873Expenditure (39,204) (41,189)Unrealised gains and losses (3,807) (3,455)

––––––––– –––––––––Total deficit (1,608) (4,771)

––––––––– –––––––––

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

22. PENSIONS

The Charity contributes to three staff pension schemes:

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

• The Shaftesbury Society defined benefit scheme (“TSS scheme”) which wasclosed to new members and further service accrual in June 2007. This scheme isadministered by The Pensions Trust.

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

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

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

The cost of employer contributions to the Scottish Aegon plan and the Teachers’ PensionScheme was £1,196,000 in the period (2009: £1,064,000). There are prepaid contributionsof £69,000 in respect of all the schemes at the balance sheet date. The deficits in thedefined benefit schemes have increased significantly on the FRS 17 measure since lastyear mainly due to lower rates used to value future liabilities in today’s money, which haveincreased the valuation of the liabilities of the schemes. These lower discount ratesreflected lower returns in the corporate bond market on which they are based.

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22. PENSIONS (Continued)

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

The defined benefit schemes are both contracted-out of the State Second PensionScheme (S2P) and their assets are held separately from those of the Charity. Contributionsto the schemes were agreed with the schemes’ Trustees, in accordance with the agreedTechnical Provision and Recovery Period agreed for each scheme.

The subsequent disclosures combine data for both schemes where possible and reflectonly Livability’s share of JGPAS.

The latest valuation of the TSS scheme as at 30 September 2006 was updated to 31 March2010 by an independent qualified actuary in accordance with FRS17. The contribution madeto the TSS scheme by the employer in the accounting period was £550,000 as set out in thedeficit recovery plan agreed at the last formal valuation. An actuarial valuation of the TSSscheme is underway at the date of signing the accounts and is expected to conclude withinthe calendar year. The result of this may be an increase in the contributions payable to theTSS scheme.

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

The contribution made to the Scheme by the Employers (Livability and Livability Housing) inthe accounting period was £375,000. Recovery contributions of £400,000 per annum(payable in quarterly instalments until 1 October 2022) are currently paid to address thedeficit calculated at the last formal valuation with an additional contribution payable of£2,500 for each 0.1% that the average growth in Pensionable Salary for quasi-deferredmembers exceeds inflation in any Scheme year ending 31 March.

The principal assumptions used by the actuaries were (in nominal terms):At 31 March At 31 March

2010 2009Discount rate 5.70% 6.70%Rate of increase in salaries 3.50% 2.95%Inflation assumption 3.50% 2.70%

Pension increases:The Shaftesbury Society schemePension accrued pre 6/4/05 3.40% 2.70%GMP accrued post 5/4/05 2.30% 2.10%Excess accrued post 5/4/05 3.50% 2.70%

The John Grooms Pension and Assurance SchemePre 94 Pension 5.00% 5.00%Post 94 GMP 2.70% 2.05%Post 94 Excess 3.40% 2.65%

Assumed life expectancies on retirement at age 65 are:Retiring today Males 20.4 22.2

Females 22.9 24.9Retiring in 20 years time Males 21.7 22.6

Females 24.1 24.8


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

The mortality assumptions used in the valuation of both schemes were the SAPS AllPensioners using Medium Cohort mortality improvement based on year of birth, with a0.5% minimum improvement. The JGPAS mortality assumptions were varied by theBeLonG study prepared for the scheme.

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

Long-term Long-termrate of return Value at rate of return Value atexpected at 31/03/2010 expected at 31/03/200931/03/2010 £’000 31/03/2009 £’000

Equity 8.40% 13,671 7.40% 9,753Bonds 4.60% - 5.70% 9,767 3.70%-6.70% 8,298Property 7.40% 1,019 7.40% 929Cash 0.50% 333 0.50% 128

––––––––– –––––––––Fair value of plan assets 24,790 19,108

––––––––– –––––––––

The actual return on assetsover the period was 5,422 (3,302)

––––––––– –––––––––

The amounts recognised in the balance sheet are as follows:

Present value of scheme liabilities: (34,915) (26,382)Fair value of scheme assets 24,790 19,108

––––––––– –––––––––Deficit and net pensionliability recognised (10,125) (7,274)

––––––––– –––––––––

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

2010 2009£’000 £’000

Liabilities at beginning of year 26,382 27,178Current service cost 256 116Interest cost 1,740 1,755Actuarial loss / (gain) 7,486 (1,867)Benefits paid (949) (800)

––––––––– –––––––––Liabilities at end of year 34,915 26,382

––––––––– –––––––––

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

2010 2009£’000 £’000

Fair value of scheme assets at beginning of year 19,108 23,228Expected return on scheme assets 1,159 1,546Actuarial gain / (loss) 4,509 (5,711)Contributions by employers 963 845Benefits paid (949) (800)

––––––––– –––––––––Fair value of scheme assets at end of year 24,790 19,108

––––––––– –––––––––

Recognised gains and losses in the Statement of Financial Activities2010 2009£’000 £’000

Actuarial losses (2,977) (3,844)Impact of surplus restriction – –

––––––––– –––––––––Total (2,977) (3,844)

––––––––– –––––––––

History of scheme assets, As at As at As at As at As atobligations and experience 31 March 31 March 31 March 31 March 31 Marchadjustments 2010 2009 2008 2007 2006

£’000 £’000 £’000 £’000 £’000Present value of scheme liabilities (34,915) (26,382) (27,178) (30,352) (28,625)Fair value of scheme assets 24,790 19,108 23,228 23,307 21,690

––––––––– ––––––––– ––––––––– ––––––––– –––––––––Deficit in the scheme (10,125) (7,274) (3,950) (7,045) (6,935)

––––––––– ––––––––– ––––––––– ––––––––– –––––––––

Experience adjustments arisingon scheme liabilities (384) 92 22 (691) 38Experience item as a percentageof scheme liabilities (1)% 0% 0% (2)% 0%

Changes in assumptionsunderlying the present valueof the liabilities (7,102) 1,775 4,545 944 (2,991)Changes in assumptions as apercentage of scheme liabilities (20)% 7% 17% 3% (10)%

Experience adjustments arisingon scheme assets 4,509 (5,711) (2,123) (158) 2,313Experience item as a percentageof scheme assets 18% (30)% (9)% (1)% 11%


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

Year ended Year ended31 March 31 March

2010 2009£’000 £’000

Current service cost (256) (116)

Expected return on pension scheme assets 1,159 1,546Interest on pension scheme liabilities (1,740) (1,755)

––––––––– –––––––––Total cost (837) (325)

––––––––– –––––––––

Contributions and administration fees payable in the year Year endedended 31 March 2011 are expected to be: 31 March 2011

£’000The Shaftesbury Society scheme 550John Grooms Pension and Assurance Scheme 560

–––––––––1,110

–––––––––

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LIVABILTIY INFORMATIONSTRUCTURE, GOVERNANCE AND MANAGEMENT

PATRON

Her Royal Highness, The Princess Royal

VICE PATRONS

Mr Stephen Green

Lady Hobson MBE

LIFE PRESIDENTS

Sir Ron Hobson KCVO

David Thompson LLB OBE

PRESIDENT

Baroness Howarth of Breckland OBE

VICE-PRESIDENTS

Rt Revd Dr T Butler MSc PhD LLD DSc

The Bishop of London, The Rt Revd and Rt Hon R J Chartres DDF SA

Mr Michael Edgar MA MChir RCS

Revd Joel Edwards

Mrs Pamela Farrell Tredinnick OBE

Prof Ram Gidoomal CBE FRSA CCMI

Mr Robert Hodge

The Most Reverend and Rt Hon D M Hope, Baron Hope of Thornes, FRCP MA DPhil DD LLD

Mr John Hughesdon

Commissioner Elizabeth Matear, The Moderator of the Free Church Federal Council

Mr Roy McCloughry BSc (Econ) MSc

Professor Lord McColl of Dulwich CBE

Mr Robert Powell

Ms Esther Rantzen CBE

Ms Pam Rhodes

The Revd Canon Roger Royle

Lady Wilkins

The Archbishop of Canterbury, The Most Revd R D Williams MA DPhil DD FBA


59


TRUSTEES

Leonard J H Beighton* CB MA, Chair of Education Oversight Committee – reappointed as aTrustee July 2008

Martin Bradford* FCA – reappointed as a Trustee October 2009

Chris Carr BSc FCA CF appointed Chair F&M Committee on resignation of David Harmer –reappointed as a Trustee July 2008

Anne-Marie Costigan RGN DMS Cert in Ed – appointed 2nd July 2009 and reappointedMarch 2010

Jenny Edwards RSCN SRN NNEB – reappointed as a Trustee March 2010

Sue M Goodrich† FCIH FCIPD – resigned 8th December 2009

Alison E Grieve† FCA MA – resigned 20th October 2009

Peter N Griffiths* BSc (Econ) FCA, Joint Vice Chair of Board of Trustees, Honorary Treasurer,Chair of F&GP Sub-Committee – reappointed as a Trustee July 2008

David J Harmer* resigned as Joint Vice Chair of Board of Trustees 28th January 2010,resigned as Chair of Fundraising and Marketing Sub-Committee March 2010 – reappointedas a Trustee July 2008

Keith Hickey BSc(Hons) MSc FCCA DChA – reappointed as a Trustee March 2010

Baroness Howarth of Breckland OBE, Chair of Board of Trustees – reappointed as a TrusteeOctober 2009

Paula Kerr MSc BSc, appointed Joint Vice Chair 28th January 2010, Chair of SDA OversightCommittee – reappointed as a Trustee March 2010

Agnita Oyawale MA BD (Hons) AKC PGCE – appointed 28th January 2010

Rodger Scott – reappointed as a Trustee October 2009

Dawn Sugden LLB – reappointed as a Trustee October 2009

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

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

SENIOR OFFICERS

Chief Executive Mary Bishop MBABSc (Hons) CQSW FRSA

Director of Services for Disabled Adults Dave Webber Dip MS

Director of Community Mission Jon Kuhrt BA (Hons) (resigned 30th June 2010)

Interim Director of Community Mission Adam Bonner BA (Hons)(appointed 30th June 2010)

Director of Fundraising and Marketing John Chamberlain BA (Hons) MIOF

Director of Education Mark Hughes MA B Ed

Director of Human Resources Anne Strach MA BA (Hons) FCIPD

Director of Finance and ICS Jackie Bliss BA (Hons) ACA(appointed 16th November 2009)

Interim Director of Finance Eliot Lyne BA (Hons) ACA(resigned 16th November 2009)

Company Secretary and Director ofSecretariat and Estates Michael Langworth BSc (Econ) (Hons) ACIS

60



SOLICITORS

Anthony Collins Solicitors LLP

134 Edmund Street

Birmingham B3 2ES

Bates Wells & Braithwaite LLP

2-6 Cannon Street

London EC4M 6YH

Pothecary Witham Weld

70 St George’s Square

London

SW1V 3RD

Speechly Bircham LLP

6 St Andrew Street

London EC4A 3LX

BANKERS

Barclays Bank plc

Charities, Housing and Education Team

1 Churchill Place

London E14 5HP

AUDITORS

PKF (UK) LLP

Farringdon Place

20 Farringdon Road

London EC1M 3AP

INTERNAL AUDITORS

Chantrey Vellacott DFK LLP

Russell Square House

10-12 Russell Square

London WC1B 5LF

CHARTERED SURVEYOR,PROPERTY VALUERS

Hilbery Chaplin

86 Market Place

Romford

Essex RM1 3HQ

REGISTERED AND CENTRAL OFFICE

50 Scrutton Street

London EC2A 4XQ

Telephone: 020 7452 2000

Fax: 020 7452 2001

Email: [email protected]

Website: www.livability.org.uk


61


50 Scrutton StreetLondonEC2A 4XQ

Tel: 020 7452 2000Fax: 020 7452 2100Email: [email protected]: www.livability.org.uk

Registered charity no: 1116530Company registration no: 5967087

Livability is the new face of John Groomsand the Shaftesbury Society


livability annual report 2010

Documents

trustees report

quality services

support people

young people

disadvantaged people

independent auditors

personalised services

effective services