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We’re open.Please read on.

Our Trustees’ Report 2011/12

2 OutlookCare

3 Aboutus

4 Chairmans’statement

5 ReportoftheTrustees

21 Independentauditors’report

tothemembersofOutlookCare

24 Consolidatedstatementoffinancialactivities

fortheyearended31March2012

25 Statementoffinancialactivities


26 Consolidatedbalancesheet

asat31March2012

27 Balancesheet

asat31March2012

28 Consolidatedcashflowstatement


29 Cashflowstatement


30 Notestothefinancialstatements

Outlook Care Trustees’ Report and Accounts Foryearended31March2012

contents

Outlook Care Trustees’ Report and Accounts For year ended 31 March 2012

1

Open minds, open hearts,open arms, open doors.

By looking beyond the obvious, investing our time, using our experience and pushing the boundaries, we open up a world of opportunities for people that would have seemed impossible to contemplate even in the recent past.

By supporting them to unlock their potential we can help people lead the most amazing lives.

And we do.


2

Referenceandadministrativedetailsfortheyearended31March2012

Status TheorganisationisanIndustrialandProvidentSociety

incorporatedon24January1990andrecognisedascharitable

byHMRevenueandCustoms

Industrial and provident 26988R

society number

Registered office and Unit6,ShelduckHouse

operational address WoodbrookCrescent

RadfordWay

Billericay

EssexCM120EQ

Honorary officers DavidThomas Chair

IanChurley ViceChair

GeraldBayliss Treasurer

Chief executive PennyTaylor,FCMI

Company secretary GeorginaPenketh,BAACMACGMA

Bankers NationalWestminsterBank

3rdFloor,PhoenixPlace

ChristopherMartinRoad

Basildon

EssexSS143GQ

Auditors haysmacintyre

CharteredAccountantsandRegisteredAuditors

FairfaxHouse

15FulwoodPlace

LondonWC1V6AY

Solicitors Prettys

ElmHouse

25ElmStreet

Ipswich

SuffolkIP12AD

Outlook Care


3

What we do

OutlookCareisanotforprofitsupportandcare

providerofferingarangeofflexiblytailored

individualizedpackagesofsupportandcareto

peoplewithlearningdisabilities,mentalhealth

supportneedsandolderpeople.Ourservices

includesupportedliving,domiciliarycare,specialist

registeredcare,nursingandrespiteservices.

Wesupportpeoplewithlearningdisabilities

(includingyoungerpeopleintransitionfrom

children’stoadultservices),peoplewithmental

healthsupportneedsandolderpeoplewithnursing

careneeds.

Where we work

OurregisteredofficeisinBillericay,Essexwhileour

People4People(P4P)andOutlookCareBank(OCB)

servicesoperatefromanofficeinIlford,Essex.We

providesupportandcareservicestopeopleliving

inEssex,Southend,HertfordshireandintheLondon

BoroughsofBarkingandDagenham,Havering,

Enfield,WalthamForest,Redbridge,Greenwich,Brent

andWestminster.

How we work

Beingpersoncentred,workinginpartnershipwith

people,focussingonwhatisimportantforevery

personisourpassion.Weprideourselvesonour

ability,throughourtrainedstaff,tohaveapositive

impactonpeople’slives;enablingpeopletolivefull

lives,intheircommunity.Maximisingindependence

andenablingpeopletohavechoiceandcontrolover

theirlivesiscentraltoourwork.

Our vision

Peoplewithindividualneeds,livingthelivesthey

choose.

Our values

• Treatpeoplewithdignityandrespect.

• Givepowertopeopletomakechoices.

• Supportpeopletobeinvolvedintheir

communities.

• Takeresponsibilityforouractionsandactfairly.

• Behonest,openandaccountable.

• Valueandappreciatepeople.

• Listentoensurewedeliveragreedplansand

outcomes.

• Encourageskillandexpertisethroughoutthe

organisation.

• Welcomeandsupportinnovationandnewideas.

• Promoteleadershipandlearning.

About us


4

Whileitwouldbeundoubtedlytruetosaythatthis

hasbeenademandinganddifficultyearforOutlook

Care,itisalsotruetosaythatwehavemade

significantstepsforwardinsecuringthefutureof

theorganisation.

Thelossofalargecontractalongwiththework

involvedinreshapingmanyofourserviceswould

atanytimebeachallenge.Withseveralimportant

projectsunderwaysimultaneouslyitwasarealtest

ofhowwewouldrespond.Iamverypleasedtosay

thatthedepthofprofessionalismandcompetence

shownbyourboardandourstaffhasensuredthat

wehaveemergedconfident,resilientandoptimistic.

Ouraimtorestructuretheorganisationtomeet

thechangingneedsofthepeoplewesupportis

progressingwellandweareverypleasedatthe

positiveeffectthechangesarehavingonpeople’s

lives.Twoyearsonfrombeingoneofthefirst

supportproviderstotransformservicesusingan

IndividualServiceFund,wehaveseenthepeoplewe

supportthrivingandtakingfulladvantageofallthe

opportunitiesopentothem.

WorkonthedevelopmentofFoxburrowGrange,our

new66bednursinghomeinColchesterisnowwell

underwayandwelookforwardtotheopeningofthis

excitingnewventureearlynextyear.

Setagainstthebackdropofthesevereeconomic

circumstancesfacingthewholecountry,oursuccess

inreducingourcostshasbeencommendableand

demonstratesourcommitmenttomakingsurethat

weareoperatingasefficientlyaspossible.

Duringthepastyearwehaveworkedcloselywith

ourcommissionerstotransformexistingservices

andtodevelopnewonesandIwouldliketotake

thisopportunitytothankthemfortheircontinued

support.

Wedon’tassumethattheexternalenvironment

willbeeasierintheyearahead,nordoweexpect

thepressuretoreducecostandincreasevalueto

diminish,howeverweareconfidentthatwecan

continuetoprovidehighqualityservicesthatare

tailoredtomeettheneedsofindividualservice

users.

Finally,Iwouldliketoendbysayingthankyoutoour

remarkablestaff.OverthepastyearIhavevisited

severalschemesandseenatfirsthandthesupport

thatisprovidedwithcompassionandcare.Iam

veryawarethatthereputationofOutlookCarerests

firmlywiththepeoplewhodeliverourservicesand

theyaregreatlyappreciated.

David Thomas

Chairman

Chairman’s statement


5

OutlookCareisacharitableorganisationformedfor

thebenefitofthecommunityandthisverymuch

underpinsallthatwedo.Thefollowingextractfrom

ourRulessetsouttheObjectsofourorganisation:

A.2 The Association is formed for the benefit

of the community. Its objects shall be to

carry on for the benefit of the community:

A.2.1 The business of providing relief for

persons in need by reason of their age,

ill health, disability, financial hardship or

other disadvantage (the beneficiaries)

by the provision of care and support,

whether residential or otherwise and such

other support for the beneficiaries and

their family and dependents as would be

charitable under the laws of England and

Wales in all cases for the benefit of the

public.

A.2.2 Any other charitable object that can be

carried out by an Industrial and Provident

Society.

Weareoperatinginachallengingandfastchanging

sectorandunderstandtheneedtobeflexibleand

responsive.Weareinthethirdyearofourthree-

yearBusinessPlanwhichisreviewedannuallyby

theBoardofManagement(referredtointhisreport

astheTrustees)andourstrategicobjectivesand

activitiesexaminedtoensurethatwearemeeting

ouraims.

Objectivesandactivities

Strategic objectives

• Maintainourlong-termfinancialviabilityand

maximiseuseofourresources

• Inpartnershipwiththepeoplewhouseour

services,developanddeliverpersoncentred

servicesthatmeetagreedoutcomesandgive

valueformoney

• Recruit,develop,manageandretainaflexible,

motivated,competentanddiverseworkforce

• Developourrelationshipwiththecommunities

inwhichweworkandwithpartnerorganisations

tohelptocreateaclimatethatempowerslocal

peopleandcommunities

Weregularlyreviewourperformanceandprogress

inworkingtowardsourtargetsintheseareasand

thesereviewsreflectchangestoplansandbudgets

toensurewehavetheresourcesavailable.

Report of the Trustees


6

Who we support

Asatthe31March2012thebreakdownofour

bedspacecapacitybyservicecategoryisasfollows:

What we did this year:

• Inpartnershipwithcommissioners,serviceusers

andtheirfamilies,wehavetransformed5learning

disabilityregisteredcareschemestosupported

living.Inthenexttwelvemonthswewilltransform

afurther5schemesinlinewithourcommitmentto

deliverpersonalisedservices.

• Throughwinningtenders,retentionofexisting

contracts,expansionofourmentalhealth,older

peopleandlearningdisabilityserviceswehave

generatedincometothevalueof£2,293,690.

• FoxburrowGrange,ournewnursinghomein

Colchesterisnowonsitewithcompletionontarget

forMarch2013.Thisinnovative66bedschemewill

providespecialistdementiacareandhighquality

nursingcareaswellasacommunityhubforthe

benefitoflocalpeople.

• FollowingthesuccessfulpilotofourIndividual

SupportService,wehaveextendedthisareaofour

businesssupporting20peopleintheirownhomes.

Throughthisserviceweareabletosupportpeople

withcomplexneedsintheirowntenanciesina

communitysetting.

• Toensurewemaintainthededicatedsupportwe

needtoofferservicestopeoplewithcomplex

needs,weappointedaSpecialistManagerin

ChallengingBehaviourandLearningDisabilities,

qualifiedfromtheTizardCentre,UniversityofKent.

Service Bedspace

RegisteredCareLearningDisability 97

RegisteredCareMentalHealth 35

RegisteredCare OlderPeople 12

SupportedLivingLearningDisability 78

SupportedLivingMentalHealth 67

Total 289


7

• ThroughourPeople4People(P4P)personal

assistantmatchingservice,initsfirstfull15months

ofoperationwehavesuccessfullysupported70

customerstoemploy90personalassistants.

P4Phasexpandeditsareaofoperationhaving

beenappointedasaselectproviderinthe

LondonBoroughofEnfield.Wehavedeveloped

partnershipswithcarebrokers,supportplaners

andpayrollproviderstocomplementtheservice

offeredbyP4P.

• Wehavere-launchedourmentalhealthrecovery

centreatWatersideLodgeinLeytonstone.Working

closelywithcommissionerswehavedeveloped

aservicethatprovidesacommunitybased

alternativetohospitaladmissionandastepdown

optionforhospitaldischarge.Wehavelinked

theservicetooursupportedlivingcontracts,

positioningourselvesasacorepartofthemental

healthrecoverypathwayforpeoplewithmental

healthsupportneedsinNorthEastLondon.

• WehaveimplementedourMentalHealthStrategy

ensuringthat80%ofpeoplewhousethese

serviceshaveaplanfocussedonmove-ontomore

independentlivingand100%ofserviceshavea

personalisationplan.

• Wehavemaintainedourreputationforqualityby

ensuringthatourservicesmeetstringentinternal

controlsandmaintainedourexternalquality

assurancestandards.AllourSupportingPeople

fundedcontractshaveachievedAorBQuality

AssessmentFrameworkgradesandwehave

retainedourqualityaccreditations:ISO9001:2008,

ISO14001:2004;CHAS(ContractorsHealthand

SafetyAssessmentScheme)andcontinuetohold

theCertificateofRecognitionasanInvestorin

people(IIP).

• WeexceededourCostReductionTargetinour

centralmanagementserviceshelpingtoensure

thatweremaincompetitiveandcontinuetoprovide

valueformoney.

• Thesecondstageofour3yearplantoupgradeand

fullyintegrateourITsystemshasbeensuccessfully

completedaheadoftargetandunderbudget.

Thisincludestheimplementationofanewpayroll

system,HRandtrainingsystemandrotasystem.

• ThroughourVolunteerStrategywehavebeenable

todeliver£26,780inaddedvaluetoourservices.

Wealsoofferworkplacementsandinvestin

employeesofthefuturethroughhostinganumber

ofplacementsincludingnursingstudentsfrom

SouthBankUniversityandstudentsfromBarking

andDagenhamCollegeandChelmsfordCollege.

Atourcentralserviceofficeweofferongoingwork

experiencetoyoungunemployedpeople.

• Withthefocusoncontinuingprofessional

development,1,241delegatesattended233

classroom-basedevents,comprising127course

titles.Additionallyduringourfirstyearofoffering

e-learning,617coursecompletionshavebeen

achievedbylearnersundertakingoneormoreof

thefourcoursesoffered.

• ThroughOCB(OutlookCareBank)wehave

continuedtoprovideaflexible,responsiveandwell-

trainedworkforcewhichconsistentlyachieves98%

fillratestovacantshiftsinOutlookCareservices

overthepastyear.


8

Next year we will:

• Completeourplanstotransformafurther5

registeredcareservicestosupportedliving.

• OpenournewnursinghomeatFoxburrow

Grangeandincreasetheserviceswecanprovide

topeopleneedingspecialistdementiacareor

nursingcare.

• CompleteourITStrategywithallsystemsfully

integrated.

• Identifyopportunitiesforpartnershipworking

withproviderorganisationswhoshareourpassion

forprovidinghighquality,individualisedservices.

• Continuetotenderforcontractswherewebelieve

wecanoffervaluetoservicedelivery.

• Maintainourhighlevelofcustomersatisfaction

bymakingsurethatwemeetinternalandexternal

qualitystandardsandprovidingresponsive

servicescustomisedtotheneedsofthepeoplewe

support.

• Ensureoursystemsandprocessesareefficient

andcosteffective,enablingustofocusmaximum

resourcestodeliveringwhatourcustomerswhat

forasustainable,lowerprice.

• CompletetheimplementationofourMental

HealthStrategyandcontinuetofocusonrecovery

andmoveoninourmentalhealthservices,

developingmutuallybeneficiallinkswithproviders

andcomplimentaryservicesontherecovery

pathway.

• Increasetheuseofvolunteersandapprentices

thataddvaluetotheserviceswedeliver.

• Implementourmarketingstrategyandcomplete

theredesignofourwebsite.

• Remaincompliantwithallexistingandemerging

regulationandlegislationinthesector.

• FurtherexpandourIndividualSupportService.

“ Havering is pleased to be working in partnership with Outlook Care in the development of the Individual Support Service which is producing tailored, innovative solutions in the community for individual clients.” StrategicCommissioner,LondonBoroughofHaveringMarch2012


9

GovernanceandStructure

Governance

OutlookCareisanIndustrialandProvidentSociety

andrecognisedascharitablebyHMRevenue&

Customs.WeareregisteredundertheIndustrialand

ProvidentSocietiesAct1965to2002(Registration

Number26988R)andregulatedbytheFinancial

ServicesAuthority.WearegovernedbyRulesthat

werelastrevisedin2009;acopyisavailableon

requestfromtheCompanySecretary.

Wehaveonesubsidiarycompany,OutlookVenture

Limited.

The Board

OutlookCareisgovernedbyaBoardofManagement

(referredtointhisreportastheTrustees)

comprisingelectedmembersrecruitedfromawide

rangeofprofessionalbackgrounds.

TheDirectorsofthecompanyarealsoTrustees

undertheRulesoftheorganisationandare

knownasmembersoftheBoardofManagement.

AllTrusteesoftheBoardaremembersof

theorganisationandsubscribetooneshare.

Shareholdingmembershipislimitedtothevoting

BoardTrustees.

Trusteesareelectedandserveforatermofsix

years,althoughthiscanbeextendedbyupto

amaximumofthreefurtheryearsbymutual

agreement.

OutlookCareoperatesanopenrecruitmentpolicy

andusesarangeofmechanismstorecruitnew

members.Thisincludesexternaladvertisementand

wherespecificskillsarerequired,makingdirect

approacheswhereappropriate.

Werecognisetheresponsibilitiesplacedbylawon

aTrusteeandathoroughinductionprogramme

isinplaceforallnewTrusteeswhichinclude

visitstoourservicestomeetstaffandthepeople

whouseourservices.AllTrusteesparticipatein

ourcomprehensivetrainingprogrammewhich

thisyearincludedsessionsonissuesincluding

CompetitionLaw,theBriberyAct,HealthandSocial

CareAct,GPCommissioningandPensions.They

alsoreceiveregularweeklyupdatesonactivities

withinoursectorandhaveaccesstorelevant

tradepublications.Trusteeshaveaccesstoour

SharedDocumentAreawhichisinternetbasedand

containsallOutlookCarepolicies,proceduresand

otherrelevantinformation.Thisensuresthatall

informationtheyreceiveisuptodateandeasily

accessible.

TheChairappraisesTrusteesonanannualbasis,

withtheChairbeingappraisedbyaminimumoftwo

TrusteesoftheBoardwhoareselectedbymembers.

TheBoardregularlyreviewstheskillsrequiredin

ordertoproperlygoverntheorganisationandis

activelydevelopingwaystoincreasetheinvolvement

ofthepeoplewhouseourservicesatBoardlevel.


10

Trustee remuneration

ApolicyfortheremunerationofTrustees

wasintroducedwiththeaimofrecruitingand

retainingpeoplewiththeskills,knowledgeand

experienceneededtoguidetheorganisationinthe

competitiveandhighrisksectorthatitoperates

in.RemunerationislinkedtoanAgreementfor

ServicesthatallTrusteesmustsignthatsetsout

theobligationsofTrusteesandOutlookCareand

incorporatestheCodeofConduct.

Theoverallcosttotheorganisationisconsidered

whensettingthelevelsofremuneration

proportionatetotheturnoverand;theamountspaid

toindividualTrusteesinrelationtothenumberand

theirspecificrolesontheBoard.TheRemuneration

Policyisreviewedannuallyandcurrentlevelsper

annumareasfollows:

Chair £4,060

ViceChair £3,045

Treasurer £3,045

ChairofAuditCommittee £3,045

Member £2,030

Trustee responsibilities

TheTrustees,intheircapacityasdirectors,are

responsibleforpreparingtheannualreportand

financialstatementsinaccordancewithapplicable

lawandregulations.

TheIndustrialandProvidentSocietiesActs1965-72

requiretheTrusteestopreparefinancialstatements

foreachfinancialyear.UnderthatlawtheTrustees

haveconsidereditappropriatetopreparethe

financialstatementsinaccordancewithUnited

KingdomGenerallyAcceptedAccountingPractice

(UnitedKingdomAccountingStandards,Charities

SORPandapplicablelaw).Thefinancialstatements

arerequiredbylawtogiveatrueandfairviewofthe

stateofaffairsoftheorganisationandthesurplus

ordeficitfortheyear.Inpreparingthesefinancial

statements,theBoardhas:

• Selectedsuitableaccountingpoliciesandthen

appliedthemconsistently

• Madereasonableandprudentjudgementsand

estimates

• StatedwhetherapplicableUKAccounting

StandardsandStatementsofRecommended

Practicehavebeenfollowed,subjecttoany

materialdeparturesdisclosedinthefinancial

statements

• Preparedthefinancialstatementsunderthe

goingconcernbasisunlessitisnotappropriate

topresumethattheorganisationwillcontinuein

operation.


11

TheTrusteesarealsoresponsiblefor:

• Keepingproperaccountingrecordssuchasare

necessarytogiveatrueandfairviewofthe

organisationsstateofaffairs

• Safeguardingtheassetsoftheorganisation

andthereforetakingreasonablestepsforthe

preventionanddetectionoffraudandother

irregularities

• Maintainingasatisfactorysystemofcontrolover

transactions.

Public benefit

TheTrusteesconfirmedthattheyhavevoluntarily

referredtotheguidancecontainedintheCharity

Commission’sgeneralguidanceonpublicbenefit

whenreviewingtheorganisations’Vision,Purpose

andGoalsaswellaswhenplanningforfuture

activities.

Organisational structure and decision-making

TheBoardhaslegalresponsibilityfortheeffective

useofresourcesinmeetingtheorganisation’s

objectsandforprovidingeffectiveleadershipand

direction.Theymeetregularlyandparticipateina

trainingprogrammegearedtostrategictopicsas

wellasholdingannualstrategicplanningmeetings.

Committees

TheBoarddelegatesauthoritytotheAuditandRisk

Committeeinaccordancewithspecifictermsof

referenceapprovedbytheBoard.

Management

Responsibilityfordaytodaymanagementof

OutlookCareandfortheimplementationofpolicyis

delegatedtotheExecutiveManagementTeamwho

comprise:

• Penny Taylor, FCMI

ChiefExecutive

• Georgina Penketh, BA ACMA

DirectorofFinanceandDeputyChiefExecutive

• Anne Cooper, RNLD PgDMS

DirectorofOperations

• Jacky Taylor, FCIPD

DirectorofCorporateServices

• Piotr Rejek, MA BA (Hons)

DirectorofBusinessDevelopment

“ I am delighted with the place and the staff. They are excellent. Debbie is looked after in every direction. I am informed if anything happens. What more can I say!” Parentsofserviceuser2012


12

Employees

ThestaffatOutlookCarearecriticaltothesuccess

oftheorganisationandtoensuringthatwedeliver

highqualityservices.Werecognisethattheexcellent

reputationofOutlookCareisverymuchbuilt

ontheirworkandweaimtoofferthemthebest

managementandsupportwecantoenablethemto

fulfiltheirrole.

WehaveheldtheInvestorinPeoplestandard

since2000andregularlyreviewourpoliciesand

processestoensurethatwecontinuetomeetbest

practice.

Weofferflexibleworking,continuousprofessional

androledevelopmentandactivelysupportstaffto

gainpromotionwithinOutlookCare.

Wehaveatotalstaffingestablishmentof475(408

wholetimeequivalent)whichissupportedthrougha

combinationofpermanentpostsandtheuseofour

internalstaffingagencyOCBinordertomaximise

flexibilitybutatthesametimeensureconsistency.

Duringtheyearwehavemanagedsickness

absenceeffectivelyandarewithintargetat4.17%.

Staffturnoveralsoremainswithintarget,measured

at10%.

Volunteers

Werecognisethatvolunteersprovideaveryvaluable

roleandgiverealaddedvalueintermsofmaximising

opportunitiesforpersonalisation.Wearecommitted

todevelopingandexpandingourrelationshipwith

volunteerswhocanmakesuchapositiveimpacton

thelivesofthepeoplewesupport.

User involvement

ThePeoplesVoiceCommittee

Peoplewhoaresupportedbyusarehavinga

greatersay,takingmorecontrolandinfluencing

Organisationalpolicyanddirection.OurService

UserCommitteewasrenamedbytheattendees,’

ThePeople’sVoice.’MembersofThePeople’sVoice

madethefollowingdecisionswhichhavebeen

implemented:

• OutlookCareshouldsignuptotheChallenging

BehaviourCharter,promotingequalrightsfor

peoplewithalearningdisabilityandmorecomplex

andchallengingbehaviour.

• The‘SayNotoAbuse’DVDshouldbeshowninall

servicestoallserviceusers.

• OutlookCareshouldparticipateinandsupport

Mencap’s“StandbyMe”anti-discrimination

campaign.

• TwelvewinningpicturesforanOutlookCare

calendarwerechosenbythePeople’sVoice

committee.


13

Wehavedevelopeduserinvolvementinthe

organisationbyrunningelectionstoforthePeoples

VoiceCommittee.Wehavetrainedcommittee

membersandfundattendanceattheCommittee.

TheCommitteeissupportedbyTrusteesandSenior

Managers,reportingdirectlytoourBoard.The

structureofthePeoplesVoicerepresentsalluser

groupsinOutlookCare,illustratedbelow:

Mental Health Forum

Learning Disability

ForumWaltham Forest

+ Greenwich

Learning Disability

ForumHavering + Essex

Our elected forum representatives feed back to the Committee current themes, activities and views, from our Older People’s services.

Our elected forum representative feeds back to the Committee current themes, activities and views, from our Learning Disability services in Havering and Essex.

Our elected forum representative feeds back to the Committee current themes, activities and views, from our Learning Disability services in Waltham Forest and Greenwich.

Our forum representatives feed back to the Committee current themes, activities and views, from our Mental Health services.

Older People’s Forum


14

Changing Legislation

Threekeylegislativechangeshaveoccurredoverthe

pastyearwhichhaveanimpactonthesocialcare

sectorandtheworkofOutlookCare.

WelfareReformActMarch2012

On8March2012theWelfareReformActreceived

RoyalAssent.TheActlegislatesforthebiggest

changetothewelfaresystemforover60years.

TheBillincludedplanstointroducetheUniversal

Creditbenefit.Italsosetoutsomechangesto

EmploymentandSupportAllowance(ESA)andplans

toreplaceDisabilityLivingAllowance(DLA)witha

newPersonalIndependencePayment(PIP).Mostof

thepeoplewesupportareaffectedbythisreform.

Throughourtrainedstaffwearesupportingpeople

tomaximizetheirbenefitincomeandstatutory

entitlement.

HealthandSocialCareAct2012

ThisActestablishesandindependentNHSBoard

toallocateresourcesandprovidecommissioning

guidance.ItincreasesGP’spowerstocommission

servicesonbehalfoftheirpatients.Themost

significantimpactforOutlookCarewillbethe

demiseofthePrimaryCareTrustsandthemoveto

GPcommissioning.Wehaveimplementedadetailed

marketingstrategywhichrecognisestheimportance

ofmaintainingstrongworkingrelationshipswith

keyinfluencerswithinthenewcommissioning

organisations

BriberyAct2010

TheintroductionoftheBriberyActwhichcame

intoforcein2011makesclearrequirementson

organisationtopreventactsofbribery.Inresponse

tothistheBoardofOutlookCareapprovedaPolicy

onCompetitionLawandAnti-Corruptionwhichhas

beencascadedtoallourstaff.

Financial review

Theremodellingofresidentialschemesand

staffingcostshasbeenthecentralfocusforthis

financialyear.Asignificantamountofworkhas

beenundertakenthatwillenablethisorganisation

tocontinueofferingcompetitivelypricedservices

inverydifficultmarketconditions.Theconversion

of5schemestosupportedlivinghasdelivered

savingsof£328,000tocommissionersandprovided

opportunitiestoourserviceuserstohavemore

controlovertheirhomes.Wesuccessfullyclosedpart

oftheHedgerowsnursinghomeserviceonbehalfof

SouthEssexPCTandnowrunthelearningdisability

nursingcareonaspotpurchasebasissavingin

excessof£500,000peryearforthePCT.

Buildingworkhasalsobegunonthe66bednursing

homewhichwillincreaseturnoverby£2,500,000

whenfullyoccupied.

Incomehasfallenby11%to£13,861,429asaresult

ofsavingsthroughremodelling,cutsincontract

funding,closureofpartoftheserviceatHedgerows

andthelossofalearningdisabilitycontractin

BarkingandDagenham.Newsupportedliving

contractsinWalthamForestincreasedturnover

by£495,000andthecontractforDobsonsHouse

endedduringtheyearloweringturnoverby

£157,000.Adecisionnottore-tenderforthisscheme

hadbeentakenatthebeginningoftheyearasthe

fundingwasinsufficienttocovercosts.

The‘netincomingresourcesfortheyearbefore

actuarialprofitonthepensionscheme’are£366,249

whichisadecreaseof19.2%on2011.Netincoming

resourceshavefallenassavingsarenowbeing

passedontocommissionersthroughcompetitive

pricingofservices.


15

Where our money comes from

Thisyearthreeofthepropertiesthatweown

freeholdandoneleaseholdpropertyhaveconverted

fromablockcontracttospotpurchasing.Thisallows

ustorunthehomeswithoutconditionsimposedby

blockcontractsandwithoutthethreatofcontract

loss;howeverthefinancialriskforvoidshas

transferredtous.Competitivepricinghasbecome

essentialandcostcontrolremainsakeyissue.

Attheendof2011/1255.8%ofourincomewasfor

registeredcareservicescomparedto85%inthe

previousyear.Threemoreschemesareremodelling

tosupportedlivingin2012/13whichwillreducethe

blockincomebyafurther10.8%.

In2011/12ourincomefrommentalhealthservices

increasedby11.2%andthisnowrepresentsalmost

aquarterofourturnover.Incontrastincomefor

learningdisabilityservicesandolderpeople’s

serviceswaslower.

ThisyearhasseentheclosureofLouiseGraham

HouseinBarkingaspartoftheplannedre-

developmentofthetowncentre.Howeverwe

continuetoprovidesupportto10formertenantsof

LouiseGrahamHousewhomovedtonewhomesin

thecommunity,whichresultsinannualincomeof

£117,000.

Themajorityofourfundingcontinuestobethrough

contractswithLocalAuthoritieshoweverwealso

havecontractswithPrimaryCareTrustsanda

FoundationTrust.

“ My view and feedback from family is that they provide an excellent service. I have never had any complaints from any of my clients and their family regarding their service. I would recommend them to anyone who intends to use their service.” SupportingPeoplereviewofficer,LondonBoroughofRedbridgeSeptember2011


16

How we spent our money

TotalResourcesExpendedhasreducedby10.5%

to£13,515,180in2012.Theannualstaffcostsare

£10,479,641whichis78%ofthetotalresources

expended,andcomparesto£11,654,473(77.2%)

for2010/11.Thestaffcostpercentagehasincreased

ashousingcostshavebeenremovedthrough

remodelling,howeverthishasbeenoffsetbysalary

reductionsleavingtheoverallpositionslightly

higher.Thecostreductionstrategyhasachieved

furthersavingsincentraloverheadsandtheuseof

theinternalbanksetupin2009hascontinuedto

increaseduringtheyear.

Nonstaffcostsincludeexpenditureonthe

SystemandProcessPlanwhichhasathreeyear

implementationtimescaleandwillenablethe

organisationtomeetthecomplexdemandsofstaff

rotas,payroll,HRandfinance.

Wearecontinuingtomanagethefinancialrisks

ofthefinalsalarypensionschemesasthesecan

beasignificantcostfactorwhencompetingfor

tenders.Twooftheseschemes,LondonBoroughof

WalthamForestschemeandtheNHSscheme,have

beentransferredtousthroughemployeeTUPE.

TheWalthamForestschemeisfullyaccountedfor

underFRS17inourbalancesheetandwhilstthe

controloftheemployeeandemployercontributions

isretainedbytheLocalAuthorityweparticipate

intheopportunitiesprovidedbythemtoraiseour

concernsaboutthesignificantdeficitinthisscheme

andcontributetothedebateonhowthatdeficitis

reduced.TheNHSscheme,whichisanunfunded

scheme,ismanagedbytheNHSPensionsAgency.

Ourmembershipofthisschemecontinuestofallas

employeesmoveonorretire.

Thethirdfinalsalaryschemeisprovidedbythe

SocialHousingPensionsSchemeandisclosed

tonewstaff.Bothemployerandemployee

contributionshavebeenincreasedtomeetthe

deficitobligations.OutlookCareareofferingthe

SHPSdefinedcontributionschemetoallstaff

at3%matchedcontributionswhichmeetsthe

requirementsofAutoEnrolment.

“ The Top Management team demonstrated serious commitment to the principals and spirit of ISO 9001 & ISO 14001 Standards requirements; during a period of significant organisational evolution.” ISOinspectionreportOctober2011


17

Fixed assets

Therehavebeennosignificantchangesinthefixed

assetsduringtheyearhoweverbuildingworkbegan

inMarch2012onour66bednursinghome.The

homewillbecompletedinMarch2013andaloan

facilityof£3,400,000hasbeenagreedwithour

bankers,NatWest,topartiallyfundthisproject.This

investmentinpropertymeetsthestrategicaimof

utilisingthecompanycashbalancestoprovidemore

carefacilitiesforthebenefitofthecommunity.

Investment policy and returns

OutlookCareisfundedbyincomemainlyreceived

fromPublicSectorbodies,whichisintendedto

matchthecostofprovidingtheserviceswhichthe

organisationhasundertakentoprovide.Thereis

thereforenoexpectationtohaveanysignificant

surplusfundsforlongterminvestment.TheTrustees

dohoweverrecognisethatfromtimetotimethe

organisationwillhavesurplusfundsforshort-term

investment.Theinvestmentpolicyrequiresthat

fundsareinvestedtomaximisereturnssubjectto

limitationsonriskandaccessibilitywithapreference

forinvestmentinethicalorganisationswhen

investingfundsdirectly.Investmentinproperty

islimitedtopropertythatwillbeusedbystaff

orpeopletowhomweprovideaservice.Capital

preservationisthekeyconcernandtheinvestment

policyrequiresverylowriskinvestmentswith

organisationsthathavehighcreditratings.Asa

resultofthispolicyOutlookCarehasnotincurred

anycapitallosseshoweverinvestmentreturnsare

verylow.Investmentincomefortheyearwas£25,116

comparedto£45,906in2010/11.

Subsidiary company

OutlookVentureLtdisthewhollyownedsubsidiary

ofOutlookCarewhichwasestablishedtodevelop

ournewnursinghomeinColchester,Essex.During

theyearOutlookVentureLtd,hadaturnoverof

£20,000.

“ I would like to say that Hedgerows could be used by the county as a bench mark to the standard Essex county council would require for their residential care needs.” EssexCountyCouncil,ElectedMembersvisitMarch2012


18

Internal controls

Oursystemofinternalcontrolshasbeen

establishedtoprovideassuranceagainstfinancial

mismanagement,reputationallossandtoensure

thatwesafeguardthepeopletowhomweprovide

services.

Weareenteringthefinalyearofourthree-year

BusinessPlan.Thiswillbereviewedattheendof

2012.Linkedtothisareanumberofactionplans

forbusinessdevelopment,operationalservicesand

workforcedevelopment.

Thebudgetissetannuallybytheboardand

monitoredthroughmonthlymanagementaccounts.

Weoperatea12monthrollingforecastthatis

reviewedquarterlybytheBoard.

KeyPerformanceIndicators(KPI’s)forkey

financialandnon-financialareusedtomonitor

ourperformanceinlinewithourBusinessPlan

targets.Theseindicatorsarereviewedmonthlyby

theExecutiveManagementTeamandtheBoardof

Management.

TheQuarterlyManagementReviewmonitors

operationalperformanceandqualityauditingacross

theorganisationandtheoutcomeactionsare

monitoredbytheAuditandRiskCommittee.Our

ContinuousImprovementProgrammemeetsthe

requirementsofISO9001:2008,whichwehaveheld

since1995.

TheChairmanoftheAuditandRiskCommitteeis

designatedastheBoardChampionforSafeguarding

andallsafeguardingissuesarereportedimmediately

inwritingtothemandactionsreviewedmonthly.

Thetrusteesaresatisfiedthattheorganisations’

internalsystemsandcontrolsareinplaceand

sufficienttomanagekeyrisksandoversee

performance.

Risk management

TheOrganisationalRiskPolicyandOrganisational

RiskMap(ORM)arereviewedannuallybythe

Trusteesinordertoidentifykeyrisksandensure

thatwehavethenecessaryactionsinplaceto

mitigaterisk.TheORMismonitoredinfullbythe

AuditandRiskCommitteeonaquarterlybasisand

toplevelrisksaremonitoredquarterlybytheBoard

ofManagement.

Controlactionsidentifiedaremonitoredbythe

ExecutiveManagementTeamtoensurethatweare

meetingourtargetsandfeedbackonperformance

providedtotheBoardofManagement.


19

Safeguarding

Weoperateazerotoleranceapproachtoabuse

andensuringthatthepeoplewhouseourservices

aresafeagainstsuchbehaviourisourtoppriority.

TheChairmanoftheAuditandRiskCommittee

isalsothedesignatedBoardrepresentativefor

Safeguardingandreceivesimmediatereportson

anysafeguardingissues.Thesearethenmonitored

throughtheAuditandRiskCommittee.Through

thoroughstafftraining,riskmanagementand

organisationalpolicieswemakesurethatwe

remaincommittedtoourcorevaluesandthat

peoplesupportedbyusaretreatedwithrespect

anddignityatalltimes.Wehaveprocessesin

placetodealswiftlyanddecisivelywithany

complaintsraised.WesubscribetotheChallenging

BehaviourCharteraswellasemployinganAutism

andChallengingBehaviourspecialist.Wehave

activelysupportedtenantstodevelopstrategiesto

safeguardthemselvesincludingfacilitatingaccess

toneighbourhoodpolicingteamsandotherlocal

communitygroups.

Reserves

AsOutlookCareisnotdependantonanyform

offundraisingalloftheservicesweprovideare

specificallylinkedtoincomesources.Ifthecontract

fortheprovisionofaserviceceasesthenthe

directexpenditureforthatservicewillalsocease.

Thismeansthattheorganisationdoesnotrequire

reservesinordertocontinueserviceprovision.Itis

howeverimportanttoholdreservesforthefollowing

reasons:

• Tomanagethecostofcentralservices,ifa

significantreductioninturnoverisexperienced,

whilerestructuretakesplace.

• Toprovideworkingcapitalfortheorganisation.

• Toprovidefundingforcapitalexpenditurein

incomegeneratingservices.

• Tomeetunexpectedcoststhatmaybean

unforeseenorunfundedconsequenceofTUPE

transfers.

TheTrusteeshavethereforeapprovedareserves

policythatrequiresaworkingcapitalreserve

equivalenttosixmonthsbudgetedcentral

managementexpenditurefortheyearahead.This

reserveiscurrently£987,448.

“ Thank you. Despite all of the obstacles, at no time did we ever encounter anything but a willingness to work with ourselves and with the best interests of our Service Users always being to the fore.” Commissioner,EssexCountyCouncilSeptember2011


20

Unrestricted funds

General reserves

Thegeneralreservesarenotrestrictedor

designatedforuseandthereservespolicyrequiresa

generalreserveofatleast10%ofthetotalreserves.

Thegeneralreservehasincreasedthisyearby

£509,309.

Designated reserves

Designatedreservesareunrestrictedfundsthat

havebeenallocatedforaparticularpurposebythe

trustees.Thatpurposeiseitherarequirementof

thereservespolicyoraspecificprojectapprovedby

theTrusteesandfundedfromreserves.Designated

fundsinclude:

• TheWorkingcapitalreserve.

• TheFixedAssetreservewhichisequivalentto

thevalueoftheorganisationsfixedassetsin

recognitionofthefactthattheyareincome

generatingassetsandarenotreadilyconvertible

tocash.Thisreserveiscurrently£2,786,980

whichcoversthenetbookvalueofallassetsnet

ofthechargeof£405,000forSummitRoad.

• TheSystemandProcessPlanreservewhich

hasbeenallocatedforthepurchaseofnewIT

infrastructureandnewHR,rota,payrolland

financesystems.Thisreservehasreducedby

£165,296duringtheyearandthefundnowstands

at£113,028.

• Thebondreserveisdesignatedinrecognitionof

thecashdepositthatisrequiredbyaHavering

contractasabond.Thiscashisnotavailableto

theorganisationuntiltheendofthecontract.

Restricted funds

Thesefundsaretiedtoaparticularactivityand

aregenerallysmallsumsofmoneythathavebeen

donatedforaspecificpurpose.Thetwolargest

restrictedfundshavezerobalancebutshowthe

incomeandexpenditurefortwocontractsthatare

grantsratherthanservicecontracts.Moredetailson

theindividualfundscanbefoundinNote15ofthe

accounts.

Auditors

Recommendationforthereappointmentofour

auditorsistheresponsibilityoftheAuditCommittee.

Aresolutiontoreappointhaysmacintyrewillbe

proposedattheforthcomingAnnualGeneral

Meeting.

By order of the Board of Trustees

“ Just wanted to say thanks for the warm welcome and hospitality that we received at your schemes this week. It was lovely to catch up with everybody and see such progress and well being from everybody – really noticeable!” JulieMorrissey,PeopleFirst–Havering2012


21

Wehaveauditedtheconsolidatedfinancial

statementsofOutlookCarefortheyearended

31March2012whichcomprisetheconsolidatedand

charitystatementsoffinancialactivities,balance

sheets,cashflowstatements,andtherelatednotes.

Thesefinancialstatementshavebeenprepared

undertheaccountingpoliciessetouttherein.

Thisreportismadesolelytothesociety’smembers,

asabody,inaccordancewithSection9ofthe

FriendlyandIndustrialandProvidentSocietiesAct

1968.Ourworkhasbeenundertakensothatwe

mightstatetotheSociety’smembersthosematters

wearerequiredtostatetotheminanauditors’

reportandfornootherpurpose.Tothefullest

extentpermittedbylaw,wedonotacceptorassume

responsibilitytoanyoneotherthantheSocietyand

theSociety’smembersasabody,forourauditwork,

forthisreportortheopinionswehaveformed.

Respective responsibilities of the board and

auditors

AsexplainedmorefullyintheStatementofthe

BoardofManagement’sresponsibilitysetouton

page10,theBoardofManagementisresponsiblefor

thepreparationofthefinancialstatementsandfor

beingsatisfiedthattheygiveatrueandfairview.

Ourresponsibilityistoauditthefinancialstatements

inaccordancewithapplicablelawandInternational

StandardsonAuditing(UKandIreland).Those

standardsrequireustocomplywiththeAuditing

PracticesBoard’sEthicalStandardsforAuditors.

Scope of the audit of the financial statements

Anauditinvolvesobtainingevidenceaboutthe

amountsanddisclosuresinthefinancialstatements

sufficienttogivereasonableassurancethat

thefinancialstatementsarefreefrommaterial

misstatement,whethercausedbyfraudorerror.

Thisincludesanassessmentof:whetherthe

accountingpoliciesareappropriatetotheSociety

circumstancesandhavebeenconsistentlyapplied

andadequatelydisclosed;thereasonableness

ofsignificantaccountingestimatesmadebythe

Trustees;andtheoverallpresentationofthe

financialstatements.

Inaddition,wereadallthefinancialandnon-

financialinformationintheBoardofManagement’s

AnnualReporttoidentifymaterialinconsistencies

withtheauditedfinancialstatements.Ifwebecome

awareofanyapparentmaterialmisstatementsor

inconsistenciesweconsidertheimplicationsforour

report.

Opinion on financial statements

Inouropinionthefinancialstatements:

• Thefinancialstatementsgiveatrueandfairview,

inaccordancewithUnitedKingdomGenerally

AcceptedAccountingPractice,ofthestateofthe

Society’sandthegroup’saffairsasat31March

2012andoftheirincomeandexpenditureforthe

yearthenended;and

• Thefinancialstatementshavebeenproperly

preparedinaccordancewiththeIndustrialand

ProvidentSocietiesActs1965to2002.

Independent auditors’ reportonthefinancialstatementstothemembersofOutlookCare


22

Matters on which we are required to report

by exception

Wehavenothingtoreportinrespectofthefollowing

matterswheretheIndustrialandProvidentSocieties

Acts1965to2002requireustoreporttoyouif,in

ouropinion:

• Asatisfactorysystemofcontrolovertransactions

hasnotbeenmaintained;or

• Thesocietyhasnotkeptproperaccounting

records;or

• Thefinancialstatementsarenotinagreement

withthebooksofaccount;or

• Wehavenotreceivedalltheinformationand

explanationswerequireforouraudit.

haysmacintyre

StatutoryAuditors

FairfaxHouse

15FulwoodPlace

LondonWC1V6AY


“ I am very impressed with the massive progress that she has made in only 6 weeks, especially in terms of appearance, confidence and participating in activities of her choice. I recently made a referral for Psychology input, however following her progress, it may not be necessary at this stage.” SocialWorkerLondonBoroughofWalthamForestJanuary2012

financials


24

2012 2011 Notes Restricted Unrestricted Total Total £ £ £ £

Incoming Resources

Incoming Resources from generated funds

– Voluntary income - 27,286 27,286 2

– Investment Income - 25,116 25,116 45,906

Incoming Resources from charitable activities

– Learning Disabilities Housing & Care Services 2 277,142 7,607,814 7,884,956 9,156,695

– Low Support Housing & Care Services 3 - 2,311,679 2,311,679 2,110,123

– Mental Health Housing & Care Services 4 - 1,541,377 1,541,377 1,718,018

– Older People’s Housing & Care Services 5 701,188 1,200,387 1,901,575 2,305,798

Other income

– P4P income 131,210 131,210 155,731

– Sundry income - 58,230 58,230 55,452

Total Incoming Resources 978,330 12,903,099 13,881,429 15,547,725

Resources Expended

Charitable Activities

– Learning Disabilities Housing & Care Services 277,883 7,297,641 7,575,524 8,916,806

– Low Support Housing & Care Services - 2,268,699 2,268,699 2,161,553

– Mental Health Housing & Care Services - 1,618,442 1,618,442 1,718,939

– Older People’s Housing & Care Services 706,721 1,268,427 1,975,148 2,202,063

Governance costs - 77,367 77,367 95,027

Total Resources Expended 6 984,604 12,530,576 13,515,180 15,094,388

Net incoming resources for the year

before transfer between funds 7 (6,274) 372,523 366,249 453,337

Transfer between funds - - - -


before gains and losses (6,274) 372,523 366,249 453,337

Actuarial (loss)/gain on pension scheme - (194,000) (194,000) 220,000

Net movement in funds (6,274) 178,523 172,249 673,337

Reconciliation of funds

Funds at the start of the year 10,863 3,619,227 3,630,090 2,956,753

Funds at the end of the year 4,589 3,797,750 3,802,339 3,630,090

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than

those stated above. Movements in funds are disclosed in Note 15 to the financial statements.

Consolidated statement of financial activitiesIncorporatinganincomeandexpenditureaccount


25

2012 2011 Notes Restricted Unrestricted Total Total £ £ £ £

Incoming Resources

Incoming Resources from generated funds

– Voluntary income - 27,286 27,286 2

– Investment Income - 25,116 25,116 45,906

Incoming Resources from charitable activities

– Learning Disabilities Housing & Care Services 2 277,142 7,607,814 7,884,956 9,156,695

– Low Support Housing & Care Services 3 - 2,311,679 2,311,679 2,110,123

– Mental Health Housing & Care Services 4 - 1,541,377 1,541,377 1,718,018

– Older People’s Housing & Care Services 5 701,188 1,200,387 1,901,575 2,305,798

Other income

– P4P income 131,210 131,210 155,731

– Sundry income 38,230 38,230 55,452

Total Incoming Resources 978,330 12,883,099 13,861,429 15,547,725

Resources Expended

Charitable Activities

– Learning Disabilities Housing & Care Services 277,883 7,297,641 7,575,524 8,916,806

– Low Support Housing & Care Services - 2,268,699 2,268,699 2,161,553

– Mental Health Housing & Care Services - 1,618,442 1,618,442 1,718,939

– Older People’s Housing & Care Services 706,721 1,248,427 1,955,148 2,202,063

Governance costs - 77,367 77,367 95,027

Total Resources Expended 6 984,604 12,510,576 13,495,180 15,094,388


before transfer between funds 7 (6,274) 372,523 366,249 453,337

Transfer between funds - - - -


before gains and losses (6,274) 372,523 366,249 453,337

Actuarial (loss)/gain on pension scheme - (194,000) (194,000) 220,000

Net movement in funds (6,274) 178,523 172,249 673,337

Reconciliation of funds

Funds at the start of the year 10,863 3,619,227 3,630,090 2,956,753

Funds at the end of the year 4,589 3,797,750 3,802,339 3,630,090

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than

those stated above. Movements in funds are disclosed in Note 15 to the financial statements.

Statement of financial activitiesIncorporatinganincomeandexpenditureaccount


26

2012 2011 Notes Total Total £ £

Fixed assets

Tangible fixed assets 10 3,191,980 3,184,936

Current assets

Debtors 11 626,027 744,218

Short Term Deposits 3,667,576 2,608,029

Cash at bank and in hand 2,640 1,059

4,296,243 3,353,306

Liabilities

Creditors: amounts due within 1 year 12 2,114,875 1,531,143

Net current assets 2,181,368 1,822,163

Total assets less current liabilities 5,373,348 5,007,099

Creditors: amounts falling due after more than 1 year 14 (405,000) (405,000)

Net assets excluding pension liability 4,968,348 4,602,099

Defined benefit scheme liability 18 (1,166,000) (972,000)

Net assets including pension liability 3,802,348 3,630,099

Funds

Share Capital 16 9 9

Restricted Funds 15 4,589 10,863

Unrestricted funds 15

Designated funds 3,987,456 4,124,242

General funds 976,294 466,985

Unrestricted income funds excluding pensions liability 4,963,750 4,591,227

Pension reserve 15 (1,166,000) (972,000)

Total charity funds 3,802,348 3,630,099

Approved and authorised for issue by the Board of Management on 23 July 2012 and signed on its behalf by:

Consolidated balance sheet

David Thomas

Chair

Gerald Bayliss

Treasurer

Georgina Penketh

Secretary


27

2012 2011 Notes Total Total £ £

Fixed assets

Tangible fixed assets 10 3,191,980 3,184,936

Investment in subsidiary 1 1

3,191,981 3,184,937

Current assets

Debtors 11 623,107 717,884

Short Term Deposits 3,667,576 2,608,029

Cash at bank and in hand - -

4,290,683 3,325,913

Liabilities

Creditors: amounts due within 1 year 12 2,109,316 1,503,751

Net current assets 2,181,367 1,822,162

Total assets less current liabilities 5,373,348 5,007,099

Creditors: amounts falling due after more than 1 year 14 (405,000) (405,000)

Net assets excluding pension liability 4,968,348 4,602,099

Defined benefit scheme liability 18 (1,166,000) (972,000)

Net assets including pension liability 3,802,348 3,630,099

Funds

Share Capital 16 9 9

Restricted Funds 15 4,589 10,863

Unrestricted funds 15

Designated funds 3,987,456 4,124,242

General funds 976,294 466,985

Unrestricted income funds excluding pensions liability 4,963,750 4,591,227

Pension reserve 15 (1,166,000) (972,000)

Total charity funds 3,802,348 3,630,099

Approved and authorised for issue by the Board of Management on 23 July 2012 and signed on its behalf by:

Balance sheet

David Thomas

Chair

Gerald Bayliss

Treasurer

Georgina Penketh

Secretary


28

Net Incoming Resources For The Year 366,249 453,337

Interest received (25,116) (45,906)

Increase/ (reduction) in share capital

Net (profit)/loss on disposal of fixed assets - -

Defined benefit pension scheme net service cost - 28,000

Depreciation of tangible fixed assets 48,516 49,411

Decrease/(Increase) in debtors 118,191 (241,242)

Increase in creditors 583,732 258,517

Net Cash Inflow From Operating Activities 1,091,572 502,117

Returns on Investments and Servicing of Finance

Interest Received 25,116 45,906

Capital Expenditure

Proceeds from the sale of fixed assets - -

Payments to acquire tangible fixed Assets (55,560) (1,044,044)

(55,560)

Financing

Increase/(Reduction) in share capital -

Increase/(Decrease) in cash and short term deposits 1,061,128 (496,021)

Reconciliation of Net Cash Flow to Movement in Net Cash

2012 2011 £ £

Increase/(decrease) in cash 1,061,128 (496,021)

Net cash at 1 April 2,609,088 3,105,109

Net cash at 31 March 3,670,216 2,609,088

Analysis of Net Cash

At 1 April At 31 March 2011 Cashflow 2012 £ £ £

Short term deposits 2,608,029 1,059,547 3,667,576

Cash at bank and in hand 1,059 1,581 2,640

2,609,088 1,061,128 3,670,216

Consolidated cashflow statement

2012 2011 Total Total £ £


29

Net Incoming Resources For The Year 366,249 453,337

Interest received (25,116) (45,906)

Net (profit)/loss on disposal of fixed assets - -

Defined benefit pension scheme net service cost - 28,000

Depreciation of tangible fixed assets 48,516 49,411

Decrease/(Increase) in debtors 94,777 (216,351)

Increase in creditors 605,565 232,967

Net Cash Inflow From Operating Activities 1,089,991 501,458

Returns on Investments and Servicing of Finance

Interest Received 25,116 45,906

Capital Expenditure

Proceeds from the sale of fixed assets - -

Payments to acquire share capital -

Payments to acquire tangible fixed Assets - (55,560) (1,044,044)

Financing

Increase/(Reduction) in share capital - -

Acquisition of charge - -

Increase/(Decrease) in cash and short term deposits 1,059,547 (496,680)

Reconciliation of Net Cash Flow to Movement in Net Cash

2012 2011 £ £

Increase in cash 1,059,547 (496,680)

Net cash at 1 April 2,608,029 3,104,709

Net cash at 31 March 3,667,576 2,608,029

Analysis of Net Cash

At 1 April At 31 March 2011 Cashflow 2012 £ £ £

Short term deposits 2,608,029 1,059,547 3,667,576

Cash at bank and in hand - -

2,608,029 1,059,547 3,667,576

Cashflow statement

2012 2011 Total Total £ £


30

1. Accounting policies

a) Thefinancialstatementshavebeenpreparedunder

thehistoricalcostconvention,inaccordancewith

applicableaccountingstandardsandtheFriendlyand

IndustrialandProvidentSocietiesActs1965to2002.

TheyvoluntarilyadopttheStatementofRecommended

Practice,AccountingandReportingbyCharities(issued

inMarch2005).

Theaccountsconsolidatetheresults,assetsand

liabilitiesofOutlookCare’ssubsidiarycompany,Outlook

VentureLimited,onalinebylinebasis.Intergroup

transactionsareeliminatedonconsolidation.

b) Voluntaryincomereceivedbywayofsubscriptions,

donations,includingdonatedtime,andgiftsisincluded

infullinthestatementoffinancialactivitieswhen

receivable.

c) GrantincomeisrecognisedinfullintheStatementof

FinancialActivitiesintheyearinwhichitisreceivable.

Contractincomeisrecognisedasearned.

d) Grantsforthepurchaseoffixedassetsarecredited

torestrictedincomingresourceswhenreceivable.

Depreciationoffixedassetspurchasedwithsuchgrants

ischargedagainsttherestrictedfund.Whereafixed

assetisdonatedtotheorganisationforitsownuse,itis

treatedinasimilarwaytoarestrictedgrant.

e) Resourcesexpendedarerecognisedintheperiodin

whichtheyareincurred.Resourcesexpendedinclude

attributableVATwhichcannotberecovered.

Resourcesexpendedareallocatedtotheparticular

activitywherethecostrelatesdirectlytothatactivity.

Thecostofoveralldirectionandadministrationof

eachactivity,comprisingthesalaryandoverhead

costsofthecentralfunctionischargedtotheschemes

infull.20%ofthesecostsrelatetotheHR,training

andqualitydirectorateand2%arepayrollcosts.

Thesecostsareapportionedonthebasisofstaff

timeattributabletoeachactivity.9%ofcostsarefor

housingmanagementandareapportionedonthebasis

ofbedspacesattributabletoeachactivity.23%of

costsareforcaremanagementandanequalchargeis

madetoeachactivitywherecaremanagement

isarequirement.Theremaining46%ofcostsare

apportionedaccordingtotherelativescaleofthe

activities.

Governancecostsincludethemanagementofthe

organisation’sassets,organisationalmanagement

andcompliancewithconstitutionalandstatutory

requirements.

f) Depreciationisprovidedatratescalculatedtowrite

downthecostofeachassetotherthanfreeholdlandto

itsestimatedresidualvalueoveritsexpectedusefullife.

Theusefullivesareasfollows:

Freehold buildings 50 years

Furniture & equipment 3 years

Motor vehicles 5 years

Itemsofequipmentarecapitalisedwherethepurchase

priceexceeds£2,000.Depreciationcostsareallocated

toactivitiesonthebasisoftheuseoftherelatedassets

inthoseactivities.

g) Restrictedfundsaretobeusedforspecifiedpurposes

aslaiddownbythedonor.Expenditurewhichmeets

thesecriteriaisidentifiedtothefund.

h) Unrestrictedfundsaredonationsandotherincoming

resourcesreceivedorgeneratedforthecharitable

purposes.

i) Designatedfundsareunrestrictedfundsearmarkedby

theBoardofManagementforparticularpurposes.

j) Rentalspayableunderoperatingleases,where

substantiallyalltherisksandrewardsofownership

remainwiththelessor,arechargedtothestatementof

financialactivitiesintheyearinwhichtheyfalldue.

k) Theorganisationmakescontributionstothreepension

schemes.TheSocialHousingPensionScheme(SHPS)

andtheLondonBoroughofWalthamForestScheme

aredefinedbenefitschemesandtheNationalHealth

ServicePensionSchemeisanunfundeddefinedbenefit

scheme.Furtherdetailsoftheseschemesareprovided

innote18.

Notes to the financial statements


31

2012 2011 Restricted Unrestricted Total Total £ £ £ £

Care contracts 277,142 6,294,198 6,571,340 7,177,031

Residents’ Charges - 1,062,073 1,062,073 1,646,564

Other Income - 251,543 251,543 333,100

277,142 7,607,814 7,884,956 9,156,695

3. Low support housing & care services(Consolidatedandentity)


Care contracts - 2,070,711 2,070,711 1,982,054

Residents’ Charges - 55,284 55,284 97,662

Other Income - 185,684 185,684 30,407

- 2,311,679 2,311,679 2,110,123

4. Mental health housing & care services(Consolidatedandentity)


Care contracts - 1,187,915 1,187,915 1,171,329

Residents’ Charges - 332,203 332,203 519,362

Other Income - 21,259 21,259 27,327

- 1,541,377 1,541,377 1,718,018

2. Learning disabilities housing & care services(Consolidatedandentity)


32

5. Older people’s housing & care services(Consolidatedandentity)


Care contracts 701,188 226,653 927,841 1,124,637

Residents’ Charges - 734,175 734,175 1,141,056

Other Income - 239,559 239,559 40,105

701,188 1,200,387 1,901,575 2,305,798

6. Charitable expenditure (Consolidatedandentity)

Learning Disabilities Low Support Mental Health Older People’s Housing & Housing & Housing & Housing & Care Services Care Services Care Services Services Governance 2012 2011 £ £ £ £ £ £

Total direct costs 6,292,366 1,802,855 1,264,610 1,687,695 11,047,526 12,446,523

Support Costs:

Staff Costs 816,858 298,024 223,398 180,743 - 1,519,023 1,733,094

Property Costs 47,172 17,225 12,912 10,447 - 87,756 177,249

Professional and

legal fees 38,227 13,959 10,464 8,466 - 71,116 89,032

Other Costs 380,901 136,636 107,058 87,797 - 712,392 648,490

- - - - 77,367 77,367 -

7,575,524 2,268,699 1,618,442 1,975,148 77,367 13,515,180 15,094,388


33

7. Net incoming resources for the yearThisisstatedaftercharging/(crediting:)

2012 2011 £ £

Depreciation 48,516 49,411

Profit/(loss) on sale of fixed assets - -

Board of Management’s indemnity insurance 6,890 6,890

Board of Management’s remuneration, including pension contributions 128,496 132,784

Board of Management’s reimbursed expenses 3,743 4,184

Auditors’ remuneration:

• Audit( including VAT) 13,400 16,800

• Other services - -

Operating lease rentals:

• Property 351,813 583,554

• Other 6,701 9,953

The Chief Executive receives remuneration for carrying out the duties of Chief Executive. The figure disclosed as

remuneration represents payment relating to the full year. Following a review the decision was made that Board members

receive remuneration for their services. Reimbursed expenses represent costs incurred in relation to attendance at Board

and committee meetings and all reasonable expenses.


34

8. Staff costs and numbersStaffcostswereasfollows

2012 2011 £ £

Salaries and wages 9,297,886 10,290,960

Social security costs 718,567 726,377

Pension contributions 345,775 577,718

Redundancy costs 117,413 59,417

10,479,641 11,654,472

2012 2011

Number of employees receiving £110,001 - £120,000 1 1

Number of employees receiving £90,001 - £100,001 2 2

Number of employees receiving £80,001 - £90,000 - -

Employer’s pension contributions for these employees amounted to £18,004 (2011 - £20,488).

The average weekly number of employees (full-time equivalent) during the year was as follows:

2012 2011 No. No.

Housing & Care Services - Learning Disabilities 163 194

Housing & Care Services - Low Support 48 40

Housing & Care Services - Mental Health 48 30

Housing & Care Services - Older People 30 56

Support 27 31

Governance 1 1

317 352

In addition to the staff numbers quoted above staff are employed on zero hour contracts in the Outlook Care Bank (OCB).

9. Taxation

The organisation is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.


35

11. Debtors

2012 2011 2012 2011 £ £ £ £

Charges Receivable 15,655 65,841 15,655 41,841

Grants Receivable 395,349 269,087 395,349 269,087

Other Debtors 4,647 3,868 1,727 1,534

Prepayments and Accrued Income 210,376 405,422 210,376 405,422

626,027 744,218 623,107 717,884

10. Tangible fixed assets

Freehold Land Furniture & Motor Totals & Buildings Equipment Vehicles £ £ £ £

Cost

At the start of the year 3,861,758 83,075 49,760 3,994,593

Additions in year 55,560 - - 55,560

Disposals in year - - - -

At the end of the year 3,917,318 83,075 49,760 4,050,153

Depreciation

At the start of the year 687,381 79,077 43,199 809,657

Charge for the year 40,596 2,668 5,252 48,516

Disposals in year - - - -

At the end of the year 727,977 81,745 48,451 858,173

Net book value

At the end of the year 3,189,341 1,330 1,309 3,191,980

At the start of the year 3,174,377 3,998 6,561 3,184,936

Consolidated Charity


36

12. Creditors: amounts due within 1 year

2012 2011 2012 2011 £ £ £ £

Trade Creditors 76,295 217,254 71,903 210,138

Other Taxation & Social Security 252,300 244,778 252,300 244,710

Intercompany creditor - - 1,487 11,291

Other Creditors 712,634 484,830 709,980 453,331

Accruals and Deferred Income 1,073,646 584,281 1,073,646 584,281

2,114,875 1,531,143 2,109,316 1,503,751

13. Analysis of net assets between funds

Share Restricted Designated General Total Capital funds funds funds funds £ £ £ £ £

Tangible fixed assets - - 3,191,980 - 3,191,980

Net current assets 9 4,589 1,200,476 976,294 2,181,368

Creditors: amounts falling due

after more than one year - - (405,000) - (405,000)

9 4,589 3,987,456 976,294 4,968,348

Pension liability - - - (1,166,000) (1,166,000)

Net assets at the end of the year

9 4,589 3,987,456 (189,706) 3,802,348

14. Creditors: amounts falling due after more than 1 year

In 2008-09 1 Summit Road, Walthamstow was transferred to Outlook Care with a charge in place for £405,000 in favour of

Waltham Forest Primary Care Trust.

Consolidated Charity


37

15. Movements in funds

At the start Incoming Outgoing At the end of the year resources resources Transfers of the year £ £ £ £ £

Restricted funds:

Older People’s Housing

Revenue Grant - 701,188 (701,188) - -

Learning Disabilities

Revenue Grant - 277,142 (277,142) - -

Festival in the Park 95 - - - 95

Hedgerows Transport 731 - - - 731

Hedgerows Patio 573 - - - 573

Quality Award Bid 5,533 - (5,533) - -

Service User Forum 173 - - - 173

Mornington Legacy 2,561 - - - 2,561

Beauly Way Fund 124 - - - 124

Resident Activities 356 (30) 326

Longbridge Legacy 717 - (711) 6

Total restricted funds 10,863 978,330 (984,604) - 4,589

Unrestricted funds:

Designated funds:

London Borough of Havering Bonds 100,000 - - - 100,000

Working Capital 965,982 - - 21,466 987,448

System and Process Plan 278,324 - (165,296) - 113,028

Fixed Asset Reserve 2,779,936 - (48,516) 55,560 2,786,980

Total designated funds 4,124,242 - (213,812) 77,026 3,987,456

General funds 466,985 12,883,099 (12,296,764) (77,026) 976,294

Subsidiary company reserves

Pension scheme (972,000) (194,000) (1,166,000)

Total unrestricted funds 3,619,227 12,883,099 (12,704,576) - 3,797,750

Total funds 3,630,090 13,861,429 (13,689,180) - 3,802,339


38

Transfersbetweenfundshavebeenmadeinordertomeet

thepolicyrequirementsinrespectofthethreekeyfunds–

WorkingCapital,FixedAssetandGeneral.

Purposes of restricted funds

Older People’s Housing Revenue Grant

Arevenuegrantwasreceivedfortherunningofthe

Hedgerowsnursinghome.Thegrantwasfullyutilisedin

theyear.

Learning Disabilities Revenue Grant

Arevenuegrantwasreceivedfortherunningofoneofthe

learningdisabilitieshomes.

Festival in the Park

FundswereprovidedforOutlookCare’sinvolvementinthis

careinitiaveinWalthamForest.

Hedgerows Transport

FundinghasbeenreceivedfromtheLeagueofFriends

toassistwiththecostofprovidingtransportatthe

Hedgerows.

Quality Award Bid

Fundsamountingto£7,728fromEssexCountyCouncilas

theresultofasuccessfulbidhasbeenprovidedtosetup

reminisenceroomatHegerows,replicasetcforservice

userstoruntheirowngroupatDobsonsCloseandcost

ofstafftrainingwithAgeExchange.

Service User Forum

Thesefundswereraisedbymembersoftheserviceuser

forumtoenableourserviceuserstoundertakeactivities

oftheirchoiceandtopromoteindependence.

Mornington Legacy

Alegacyof£3,000waslefttoOutlookCarebyarelative

ofaresident.Thefundsaretobeusedforthebenefitofthe

residentsofMorningtonRoad.

Beauly Way Fund

Adonationof£6,000wasmadeduring2004/05forthe

benefitofBeaulyWayresidents.

Longbridge Legacy

AlegacywaslefttoOutlookCarebyarelativeofaresident.

Thefundsaretobeusedforholidaysandoutingsforthe

residentsof148LongbridgeRoad.

Purposes of designated funds

Resident activities

Donationshavebeenreceivedinpreviousyearsfroma

numberofsources.Thesefundswillbeusedforthebenefit

ofourserviceusers.

London Borough of Havering Bonds

Thedesignatedfundsrefertofundsidentifiedunderthe

performancebondswhicharearequirementofthecare

contractsfortheresidentialcareschemesat74and76

NeaveCrescent.Thesecontractsarecommissionedby

LondonBoroughofHavering.

Working Capital

Thisdesignatedfundistoensuretheorganisationhas

sufficientworkingcapitaltooperateonadaytodaybasis.

Thefundhasbeenincreasedtocomplywiththereserves

policywhichrequiresafundofsixmonth’sbudgetedcentral

managementexpenditure.

System and Process Plan

Thisfundhasbeendesignatedtoenabletheachievement

ofourdevelopmentPlanthroughtheupgradingofourIT

systemsandstreamliningofbusinessprocesses.

Fixed Asset Reserve

Thisfundrecognisestheelementofnetassetsthatare

representedbyfixedassetsinOutlookCare.Thevalueof

thefundisnetofthechargeforacquisitionofSummit

RoadandexcudestheWIPrelatingtotheOutlookVenture

NursingHomedevelopment.


39

16. Share capital

2012 2011 £ £

At 1 April 9 9

Issued in Year - 2

Cancelled in Year - 2

At 31 March 9 9

17. Operating lease commitmentsTheorganisationhadannualcommitmentsattheyearendunderoperatingleasesexpiringasfollows:

2012 2011 Land and Land and buildings Other buildings Other £ £ £ £

Less than 1 year 139,763 568 258,772 367

1 - 2 years - 562 249,605 -

2 - 5 years 126,970 4,779

More than 5 years 85,080 792 40,585 9,586

351,813 6,701 548,962 9,953

18. Pension funds

Social Housing Pension Scheme

OutlookCareparticipatesintheSocialHousingPension

Scheme(SHPS).TheSchemeisfundedandiscontracted

outofthestatescheme.SHPSisamulti-employerdefined

benefitscheme.Employerparticipationintheschemeis

subjecttoadherencewiththeemployerresponsibilities

andobligationsassetoutinthe‘SHPSHousePoliciesand

RulesEmployerGuide’.

TheSchemeoperatedasinglebenefitstructure,final

salarywitha1/60thaccrualrateuntilMarch2007.From

April2007therearethreebenefitstructuresavailable,

namely:

3.1 Finalsalarywitha1/60thaccrualrate.

3.2Finalsalarywitha1/70thaccrualrate.

3.3Careeraveragerevaluedearnings(CARE)witha

1/60thaccrualrate.

FromApril2010thereareafurthertwobenefitstructures

available,namely:

3.4Finalsalarywitha1/80thaccrualrate.

3.5Careeraveragerevaluedearnings(CARE)witha

1/80thaccrualrate.


40

Adefinedcontributionbenefitstructurewasmade

availablefrom30September2010.

Anemployercanelecttooperatedifferentbenefit

structuresfortheiractivemembersandtheirnew

entrants.Anemployercanonlyoperateoneopenbenefit

structureatanyonetime.Anopenbenefitstructureis

onewhichnewentrantsareabletojoin.OutlookCarehas

electedtooperatethefinalsalarywitha1/60thaccrual

ratebenefitstructureforactivemembersasat1April

2007andtheCareeraveragerevaluedearningswitha

1/60thaccrualratebenefitstructurefornewentrantsfrom

1April2007.Thisdoesnotreflectanybenefitstructure

changesmadefromApril2010.

TheTrusteecommissionsanactuarialvaluationofthe

schemeevery3years.Themainpurposeofthevaluation

istodeterminethefinancialpositionoftheScheme

inordertodeterminetheleveloffuturecontributions

required,inrespectofeachbenefitstructure,sothatthe

Schemecanmeetitspensionobligationsastheyfalldue.

FromApril2007thesplitofthetotalcontributionrate

betweenmemberandemployerissetatindividual

employerlevel,subjecttotheemployerpayingnoless

than50%ofthetotalcontribution.From1April2010the

requirementforemployerstopayatleast50%ofthetotal

contributionratenolongerapplies.

TheactuarialvaluationassesseswhethertheScheme’s

assetsatthevaluationdatearelikelytobesufficientto

paythepensionbenefitsaccruedbymembersasatthe

valuationdate.Assetvaluesarecalculatedbyreference

tomarketlevels.Accruedpensionbenefitsarevalued

bydiscountingexpectedfuturebenefitpaymentsusing

adiscountratecalculatedbyreferencetotheexpected

futureinvestmentreturns.

DuringtheaccountingperiodOutlookCarepaid

contributionsof£260,753(2011-£280,072).Employer

contributionswerepaidatthevariedratesbetween3.7%

and8.25%andmembercontributionsvariedbetween

8.55%and11.2%dependingonthescheme.Asatthe

balancesheetdatetherewere68activemembersof

theSchemeemployedbyOutlookCare.Theannual

pensionablepayrollinrespectofthesememberswas

£1,723,397.OutlookCarecontinuestooffermembershipof

theschemetoitsemployees.

Itisnotpossibleinthenormalcourseofeventsto

identifyonaconsistentandreasonablebasistheshare

ofunderlyingassetsandliabilitiesbelongingtoindividual

participatingemployers.Theschemeisamulti-employer

scheme,wheretheassetsareco-mingledforinvestment

purposes,andbenefitsarepaidoutoftotalScheme

assets.AccordinglyduetothenatureofthePlan,the

accountingchargefortheperiodunderFRS17represents

theemployercontributionpayable.

ThelastformalvaluationoftheSchemewasperformed

asat30September2008byaprofessionallyqualified

actuaryusingtheProjectedUnitmethod.Themarket

valueoftheScheme’sassetsatthevaluationdatewas

£1,527million.Thevaluationrevealedashortfallofassets

comparedwiththevalueofliabilitiesof£663million,

equivalenttoapastservicefundinglevelof69.7%.

The financial assumptions underlying the valuation as

at 30 September 2008 were as follows:

Valuation Discount Rates % pa

•Preretirement 7.8

•NonPensionerPostretirement 6.2

•PensionerPostretirement 5.6

•Pensionableearningsgrowth 4.7

•PriceInflation 3.2

•PensionIncreases 2.5

–Pre88GMP 0.0

–Post88GMP 2.8

–ExcessoverGMP 3.0

Expensesfordeathinserviceinsurance,administration

andPPFlevyareincludedinthecontributionrate.

The valuation was carried out using the following

demographic assumptions:

•Mortalitypreretirement-PA92YearofBirth,long

cohertprojection,minimumimprovement1%pa

•Mortalitypostretirement-90%S1PAYearofBirth,long

cohortprojection,minimumimprovement1%pa

Thelong-termjointcontributionratesthatwillapplyfrom

April2010requiredfromemployersandmemberstomeet

thecostoffuturebenefitaccrualwereassessedat:


41

Benefit structure Long-term joint contribution rate

(% of pensionable salaries)

•Finalsalarywitha1/60thaccrualrate 17.8


•Careeraveragerevaluedearningswitha1/60thaccrualrate 14.9


•Careeraveragerevaluedearningswitha1/80thaccrualrate 11.9

Ifanactuarialvaluationrevealsashortfallofassets

comparedtoliabilitiestheTrusteemustpreparearecovery

plansettingoutthestepstobetakentomakeupthe

shortfall.

Followingconsiderationoftheresultsoftheactuarial

valuationitwasagreedthattheshortfallof£663million

wouldbedealtwithbythepaymentofdeficitcontributions

of7.5%ofpensionablesalaries,increasingeachyearin

linewithsalarygrowthassumptions,from1April2010

to30September2020,droppingto3.1%from1October

2020to30September2023.Pensionableearningsat

30September2008areusedasthereferencepoint

forcalculatingthesedeficitcontributions.Thesedeficit

contributionsareinadditiontothelong-termjoint

contributionratessetoutinthetableabove.

EmployersthatparticipateintheSchemeonanon-

contributorybasispayajointcontributionrate(i.e.a

combinedemployerandemployeerate).Employersthat

haveclosedthedefinedbenefitsectionoftheSchemeto

newentrantsarerequiredtopayanadditionalemployer

contributionloadingof3.0%toreflectthehighercostsof

aclosedarrangement.

Asmallnumberofemployersarerequiredtocontribute

atadifferentratetoreflecttheamortisationofasurplus

ordeficitonthetransferofassetsandpastservice

liabilitiesfromanotherpensionschemeintotheSHP

Scheme.EmployersjoiningtheSchemeafter1October

2002thatdonottransferanypastserviceliabilitiesto

theSchemepaycontributionsattheongoingfuture

servicecontributionrate.Thisrateisreviewedateach

valuationandappliesuntilthesecondvaluationafterthe

dateofjoiningtheScheme,atwhichpointthestandard

employercontributionrateispayable.Contributionrates

arechangedonthe1Aprilthatfalls18monthsafterthe

valuationdate.

TheSchemeActuaryhaspreparedanActuarialReport

thatprovidesanapproximateupdateonthefunding

positionoftheSchemeasat30September2010.Sucha

reportisrequiredbylegislationforyearsinwhichafull

actuarialvaluationisnotcarriedout.Thefundingupdate

revealedanincreaseintheassetsoftheSchemeto£1,985

millionandindicatedareductionintheshortfallofassets

comparedtoliabilitiestoapproximately£497million,

equivalenttoapastservicefundinglevelof80.0%.

Asaresultofpensionschemelegislationthereisa

potentialdebtontheemployerthatcouldbeleviedby

theTrusteeofthescheme.Thedebtisdueintheeventof

theemployerceasingtoparticipateintheschemeorthe

schemewindingup.

Thedebtfortheschemeasawholeiscalculatedby

comparingtheliabilitiesfortheScheme(calculated

onabuyoutbasisi.e.thecostofsecuringbenefitsby

purchasingannuitypoliciesfromaninsurer,plusan

allowanceforexpenses)withtheassetsofthescheme.If

theliabilitiesexceedassetsthereisabuy-outdebt.

Theleavingemployer’sshareofthebuy-outdebtis

theproportionoftheScheme’sliabilityattributableto

employmentwiththeleavingemployercomparedwith

thetotalamountoftheScheme’sliabilities(relating

toemploymentwithallthecurrentlyparticipating

employers).Theleavingemployer’sdebtthereforeincludes

ashareofany‘orphan’liabilitiesinrespectofpreviously

participatingemployers.Theamountofthedebttherefore

dependsonmanyfactorsincludingtotalSchemeliabilities,

Schemeinvestmentperformance,theliabilitiesinrespect

ofcurrentandformeremployeesoftheemployer,

financialconditionsatthetimeofthecessationeventand

theinsurancebuy-outmarket.Theamountofdebtcan

thereforebevolatileovertime.


42

OutlookCarehasbeennotifiedbythePensionsTrustof

theestimatedemployerdebtonwithdrawalfromthePlan

basedonthefinancialpositionoftheSchemeasat30

September2011.Asofthisdatetheestimatedemployer

debtforOutlookCarewas£9,964,658.

OutlookCarehasemployeesparticipatingintheSocial

HousingPensionSchemeGrowthPlan.Thisisnolonger

availabletonewemployeesandOutlookCarehasbeen

notifiedbythePensionsTrustoftheestimatedemployer

debtonwithdrawalfromthePlanbasedonthefinancial

positionoftheSchemeasat30September2011.Asofthis

datetheestimatedemployerdebtforOutlookCarewas

£149,665.

NHS Pension Scheme

TheNHSPensionschemeisanunfundedschemeunder

whichcontributionsforemployeesandemployersarepaid

totheExchequerwhichinturnmeetsthecostofpaying

benefitsasandwhentheyfalldue.Inordertoassess

anappropriatecontributioncosthistoricallytherehas

beenanassociatednotionalfundofassetsdeemedtobe

investedinUKGovernmentstocks.

Theactuarialinvestigationasat31March2004covers

the5yearsfrom31March1999.Thishasbeenaperiodof

significantchangefortheNHSPS:

a)theschemehasassumedresponsibilityforpaying

pensionsincreaseswhichwerepreviouslymetfromthe

ConsolidatedFund

b)thefinancialarrangementsfortheschemehasmoved

totheSCAPEmethodology

c)thenatureofassetsattributedtothenotionalfundof

theschemehasbeenchangedandtheiramounthas

beenreassessedtotakeaccountofa)andb)above

d)changesinthestructureofthescheme’sbenefitsand

contributionsplannedtotakeeffectfrom1April2008

includinganewschemefornewentrantshasbeen

acceptedbyministers

Notionalassetsoftheschemeat31stMarch2004were

£127bnandemployerscontributionwerepayableat14%

ofpensionablepay.

Liabilitiesoftheschemeat31stMarch2004were123.7bn.

Thisismainlyduetotransferofliabilityforpension

increasespreviouslymetbytheExchequernowbeingmet

bythescheme.

Theproposedchangestotheschemeareexpected

toreduceboththevalueoftheaccruedliabilitiesand

thebuildupoffutureliabilitiesandmaintainemployer

contributionatthecurrentlevelof14%.

DuringtheaccountingperiodOutlookCaremade

contributionsof£168,705(2011-£222,713)totheNational

HealthServicescheme.Employercontributionswerepaid

attherateof14%duringtheaccountingperiod.Member

contributionsare5%or6.5%accordingtotheirearnings.

London Borough of Waltham Forest Scheme

TheLondonBoroughofWalthamForestschemeisamulti-

employerdefinedbenefitschemeofwhichsomeformer

CanopyCareemployeesaremembers.OutlookCare’s

shareofthisscheme’sassetsandliabilitiesisidentifiable.


43

The employee benefit obligations recognised in the balance sheet are as follows:

2012 2011 £’000 £’000 £ £

Present value of funded obligations 3,039 2,888

Fair value of plan assets (1,873) (1,916)

1,166 972

Present value of unfunded obligations - -

Unrecognised past service cost - -

Net liability 1,166 972

Amounts in the balance sheet:

2012 2011 £’000 £’000 £ £

Liabilities (3,039) (2,888)

Assets 1,873 1,916

Net liability (1,166) (972)

Amounts recognised in net incoming resources are as follows:

2012 2011 £’000 £’000

£ £

Current service cost 17 21

Interest on obligation 153 160

Expected return on plan assets (121) (115)

Past service cost - (163)

Losses (gains) on curtailments and settlements - -

Total 49 (97)

Actual return on plan assets 29 173


44

Changes in the present value of the defined benefit obligation are as follows:

2012 2011 £’000 £’000 £ £

Opening defined benefit obligation 2,888 2,897

Service cost 17 21

Interest cost 153 160

Contribution by members 6 7

Actuarial losses 120 83

Past service costs - (163)

Losses on curtailments - -

Liabilities extinguished on settlements - -

Estimated unfunded benefits paid - -

Benefits paid (145) (117)

Closing defined benefit obligation 3,039 2,888

Changes in the fair value of plan assets are as follows:

2012 2011 £’000 £’000 £ £

Opening fair value of plan assets 1,916 1,733

Contribution by members 6 7

Expected return 121 115

Actuarial (losses) and gains (93) 109

Assets distributed on settlements - -

Contributions by employer 68 69

Contribution in respect of unfunded benefit - -

Unfunded benefits paid - -

Benefits paid (145) (117)

1,873 1,916

The major categories of plan assets as a percentage of total plan assets are as follows:

2012 2011 % %

Equities (split into material classes eg: European, North American) 77.0% 77.5%

Bonds (split into material classes eg: European, North American) 15% 13%

Property 5% 5%

Cash 0.0% 1.5%

Other 3.0% 3.0%


45

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2012 2011 % %

Rate of RPI inflation n/a 3.3%

Rate of CPI inflation 2.3% 2.8%

Rate of increase in salaries 3.8% 4.3%

Rate of increase in pensions 2.3% 2.8%

Discount rate 4.6% 5.4%

Amounts for the current and previous four periods are as follows:

2012 2011 2010 2009 2008 £’000 £’000 £’000 £’000 £’000

Defined benefit obligation

(3,039) (2,888) (2,897) (2,267) (2,683)

Plan assets 1,873 1,916 1,733 1,239 1,707

Surplus / (deficit) (1,166) (972) (1,164) (1,028) (976)

Experience adjustments on plan liabilities - - - - 58

Experience adjustments on plan assets - - - -

During the accounting period Outlook Care made contributions of £63,635 (2011 - £75,064) to the London Borough of

Waltham Forest Scheme.

19. Contingent and other liabilities

Social Housing Pension Scheme

OutlookCarehasbeennotifiedbythePensionsTrustof

theestimatedemployerdebtshoulditwithdrawfromthe

SocialHousingPensionSchemebasedonthefinancial

positionoftheSchemeasat30September2011(forfurther

informationseenote18).Asofthisdatetheestimated

employerdebtforOutlookCarewas£9,964,658.Asat31

March2012£149,665wouldalsobedueundertheSHPS

growthplan.ThePensionsTrusthasalsoadvisedOutlook

CarethatitwillnotbeabletoparticipateintheFinalSalary

Schemesfrom1stApril2013.ThePensionsTrustmaintains

thatthisdoesnottriggeracessationeventprovided

OutlookCareremainsintheDefinedContributionschemes.

National Westminster Loan

OutlookCareenteredintoaloanagreementwithNational

Westminsterbankon19March2012toborrow£3.4million.

Thisloanisnotexpectedtobedrawndownuntilthe

secondhalfofthefinacialyearending31stMarch2013.

London Borough of Waltham Forest

OutlookCarehavedisputedthelevelofthehistoric

schemedeficit,basedonthenumberofformeremployees

forwhomtheybelievetheyshouldbeliable.

Thefinancialstatementsincludethefulldeficit.

20. Subsidiary undertakings

OutlookCarehasonesubsidiarycompany-Outlook

VentureLtd.OutlookCareGroupLimited,adormant

company,waswoundupduringtheyear.Themainactivity

ofOutlookVentureistheconstructionofthenursinghome

onbehalfofOutlookCare.Asat31stMarch2012Outlook

Venturehadcurrentassetsof£61,121(2011:£38,683)and

currentliabilitiesof£61,120(2010:£38,683)resulting

innetcurrentassetsof£1.Turnoverandexpenditurein

theyeartotalled£20,000(2011:£24,864)resultingina

breakevenpositionfortheperiodoftrading.

21. Post balance sheet events

Thereisnothingtoreportthisyear.

Outlook CareUnit6,ShelduckHouseWoodbrookCrescentRadfordWay,BillericayEssexCM120EQ

T01277633163F01277657172Einfo@outlookcare.org.ukwww.outlookcare.org.uk

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ITED

REG

ISTRAR OF SYS

TE

MS

• ISO 14001 •

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ITED

REG

ISTRAR OF SYS

TE

MS

• IS O 9001 •

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