Upload
khangminh22
View
1
Download
0
Embed Size (px)
Citation preview
Hollybank Trust
Trustee's Report and FinancialStatements
for the year ended 31 March 2016Registered charity number 1043129
Hoiiybank TrustTrustee's Report and Financial Statements
31 March 2016
Contents
Pages
Trust information
Annual Trustee's Report
Statement of Trustee's responsibilities in respect of the Trustee's report and the financial statements
Independent auditor's report to the Trustee of Hollybank Trust
Statement of financial activities
Balance sheet
Cash flow statement
Notes to cash flow statement
Notes to the financial statements
12
13
14
1S
16
17
18
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Trust information
Charity number 1043129
Trustee
Hollybank Trustees Limited
Registered office
Far Common RoadMirfieldWest YorkshireWF14 ODQ
Auditor
KPMG LLP1 Sovereign SquareSovereign StreetLeedsLS1 4DA
Banker
Lloyds Bank pic1 WestgateHuddersfieldHD1 2DN
Solicitor
Lupton Fawcett LLP
Yorkshire HouseEast ParadeLeedsLS1 SBD
Insurance Broker and Advisor
PackettsSalts WharfAshley LaneShipleyBD17 7DB
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Annual Trustee's Report
The Trust provides quality of life at all stages of life for children and adults with profound and multiple disabilities.
We also help to improve the quality of life of family and friends who can be mums and dads instead of carers. We
improve lives in the community through short breaks, day care and our strong links with local authorities, support
groups and healthcare providers.
1. REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY AND ITS TRUSTEE
Hollybank Trust is a Charitable Trust and most of our work is based on the Roe Head Site in Mirfield.
The principal contact details are:-
Hollybank TrustFar Common RoadMirfieldWest YorkshireWF14 ODQ
Telephone 01924 490833www. holi banktrust. corn
Hollybank Trustees Limited, company number 5251731, is the corporate Trustee of Hollybank Trust.
The Trust's registered charity number is 1043129.
Holiybank TrustTrustee's Report and Financial Statements
31 March 2016
Annual Trustee's Report (continued)
Directors of Hollybank Trustees Limited, known as Trustee Directors, are as follow:-
Name
John M. HallJames WhittakerChristopher EmptageAlex FarrellPeter L. HallJane 3ohnstonJonathan Jones3udy MoorhouseClare Morrow)ohn G. RidingsDaniel R. Rivlin
Christopher SharpMichael A. SillsJohn R. H. SykesVenkatraman Thiyagesh)an ThorntonPaul Wothen
Chair of Trustee DirectorsVice Chair of Trustee Directors
(appointed 28 July 2016)
(appointed 19 October 2015)(appointed 26 May 2016)
(appointed 28 July 2016)
(retired 7 April 2016)
Committee Membership
ResourcesResourcesEmploymentResourcesResourcesChair of EmploymentEmploymentQualityChair of QualityChair of ResourcesResourcesEmploymentEmploymentResourcesQualityQualityQuality
Executive Board
Chief ExecutiveHead of Direct ServicesHead of FinanceHead of Central Operations
(appointed 20 April 2015)(appointed 20 3uly 2015)
Pam KingKath EastwoodMartin WilsonChris Coleby
Trust Board of Management
Head of EducationHead of 18+Education and Development (resigned 25 June 2015)Head of Residential (resigned 1rr August 2015)Head of TherapiesHead of Finance (retired 21 August 2015)Head of Human ResourcesHead of Risk and ComplianceHead of FundraisingHead of Information Technology and FacilitiesHead of Residential and Nursing (appointed 1 September 2015)
Ailsa MooreLyn PollardAlison HowardKim LudiDavid CroftCatherine CoombesDebbie LeesJulie MacNaughtonBen BattyJill Westwood
Hoiiybank TrustTrustee's Report and Financial Statements
31 March 2016
Annual Trustee's Report (continued)
2. STRUCTURE GOVERNANCE AND MANAGEMENT
The Trust is administered by Hollybank Trustees Limited —which has a broad cross section of business, financial,
legal, medical, educational, employment ond development backgrounds within its 16 strong body. Two of the
Trustee Directors are parents of young people who live within Hollybank Trust.
The Trust is governed by a Declaration of Trust, dated 29 December 1994.Hollybank Trustees Limited's governing
document is its Memorandum and Articles of Association.
The induction process for Trustee Directors is well documented and includes a code of conduct, job descriptions
and duties for Trustee Directors and office holders laid down together with the twelve essentials of board
responsibilities. New Trustee Directors also spend time with the Chief Executive and relevant members of the
Executive Board. They hove access to all relevant documents pertaining to the effective running of the Trust. The
induction process is reviewed annually.
There is an internal Annual Review of the roles and responsibilities of the Trustee Directors and School Governors
which considers the structure of committees and their remit. As part of this review an audit of skills for both
Trustee Directors and School Governors is discussed to ensure that skills are matched to appropriate committees
and also identifies skills which we should consider in future recruitment processes.
The Trustee Directors regularly review the strengths, weaknesses and effectiveness of the body in relation to the
objectives of the Trust. The Trust currently finds new Trustee Directors through networking.
The Board of Trustee Directors meets formally at least five times a year and the Trust Board has overall
responsibility for determining the organisation's mission and vision and overseeing the strategic direction. Health
and Safety and Safeguarding are agenda items at each meeting, All the Terms of Reference for Committees are
reviewed on an annual basis.
The three Trustee Committees are each made up of Trustee Directors and have delegated responsibilities in the
following areas:
Resources Committee:
The committee has overall responsibility on behalf of the Board of Trustee Directors for ensuring there is aframework for accountability; for examining and reviewing all systems and procedures for financial control, health
and safety, risk analysis and risk management, IT and data protection and fundraising. It ensures the charity is
complying with ag legal requirements relevant to finance and good practice. It also has responsibility to make sure
that any property owned by the charity is kept in a good state of repair and is adequately insured. It ensures thatthere is a planned maintenancv schedule produced annually for the care and upkeep of all the charity's
properties.
Employment Committee:
The committee has delegated responsibility for ensuring that the charity compiles with all aspects of current
legislation and good practice with regard to employment issues.
Quality Committee:
The committee has delegated responsibility for ensuring that the Trust complies with all aspects of the law,
relevant standards and good practice with regard to residential and respite services, safeguarding, incident
management, therapy, nursing, enrichment and social and emotional support across the Trust.
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Annual TruStee'S RepOrt fcontinued)
The Governing Body Committee:
The Committee has delegated responsibility for the running of the School. It is a committee which includes Non.Trustee Directors and has very detailed articles and instruments of governance.
The Governing body had one new Governor during the year. The skills represented on the Governing Body arefrom education, health, business, social care, local authority representatives and the voluntary sector. There are 2parent governors. Two staff Governors came to the end of their term of office during the year and one was re.appointed as a teacher governor to represent the school staff.
The School is formally registered and recognised as a non-maintained special school and since 2002 it no longerhas a residential special school status, but because of its 52 week provision has an attached Children's Homewhich is currently inspected by Ofsted. The School gained 'Specialist School Status' in September 2008.
There are four link Governors who are appointed to monitor the quality of each area of the Ofsted framework:Leadership and Management, Quality of Teaching, Outcomes for Pupils and Personal Development, Behaviour sr
Welfare. These four Governors report to the Governing Body quarterly and a summary of their findings is taken tothe Trustee Directors by the Chair of Governors.
The Trust Deed allows professional charging by the Trustee Directors but otherwise no remuneration. The Trusthas an extensive Conflict of Interest Policy that covers all of the relevant areas including a declaration of interests.There is power for the Trustee Directors to purchase Trustee Indemnity Insurance and this has been done.
All Trustee Directors have signed a declaration to confirm that they are not disqualified from acting as a CharityTrustee under the provisions of the Charities Act 2011.This is reviewed on an ongoing basis.
There are codes of conduct, roles and responsibilities and job descriptions for Trustee Directors and Non-TrusteeDirectors i.e. Governors who are not Trustee Directors.
The Chief Executive leads the Executive Board considering longer term strategic direction and risks. It consists ofthe Chief Executive, the Head of Finance, the Head of Direct Services and the Head of Central Operations. During2015 the decision was taken to move the role of Head of Finance from the Trust Board of Management to theExecutive Board. This change took place when the post holder retired and the new appointment was made. Theheads of department in Direct Services and Central Operations form the Trust Board of Management, whichconsiders strategic issues and has overall responsibility for the operational management of the strategic plan.
The Trustee Directors regularly review the risk management system which provides systems and procedures whichmanage adequately the risks to which the Trust is exposed and consequently any major risks are being mitigated.
The main elements of the charity's systems of internal financial control Include the following:
~ Comprehensive short and medium term planning process supported by detailed income, expenditure andcash flow projections.
~ Clearly defined management responsibilities and levels of authority, with formal policies for the approval andcontrol of expenditure.
~ Detailed financial control policies and procedures, approved by the Resources committee.~ Regular review of performance and monthly financial reports comparing actual results with forecasts and
changes in expected outcomes including Key Performance Indicators.~ An external annual review of financial controls and processes is carried out on a three year cycle. A report of
this review, including recommendations about improvements, is made to the Resources Committee, whichconsiders the outcomes as part of the process of satisfying the adequacy of the systems of internal financialcontrols.
Holiybonk TrustTrustee's Report and Financial Statements
31 March 2016
Annual Trustee's Report (continued)
3. OBIECTIVES AND ACTIVITIES
Our object clauses contained within the Trust Deed are as follows:
"The Trustees shall hold the Trust Fund and its income upon trust to apply them for the benefit of those childrenand persons suffering from the disabilities of the mind and body and with special care and or educational needsby the following:
~ The relief of sickness by the provision of residential accommodation for such of those persons who areaged 16 or over;
~ The advancement of education by the provision of a special school at Holly Bank, Mirfield, or othersuitable premises. "
Hollybank School is a non-maintained special school for children aged 5-19 years with physical disabilities andassociated learning difficulties. Since 2013 we have also offered support for Families of children with complex needsaged 0-5years. Many of our children have complex medical conditions, including some that are life shortening. Themajority of our children are wheelchair users and very few have verbal communication. The school has an attachedchildren's home and therefore the Trust is able to offer flexible placements which are tailored to individual student'sneeds, ranging from day provision in school through to full 52 week placements. We also offer short breaks andemergency respite.
In1 994 Hollybank Trust developed supported living for adults from the age of 18 years and in March 2016 we had 8different homes across West and South Yorkshire. Our stated aim is to provide 'Quality of life. .. for life'. Wecontinually develop our provision to ensure that all those with whom we work receive that quality via access toeducation, physiotherapy, occupational therapy, speech and language therapy, nursing support and appropriateassistive technology. This is provided by our own team of approximately 548 full and part time staff who work withcirca 101 permanent service users. Currently the split is represented by approximately one fifth children and fourfifths adults across all our services. . The majority of our adults come fram the School, but we also have externalreferrals. We offer short breaks for both children and adults. Our commitment to lifelong care means that our adultprovision must continue to develop and expand so that those within our care are enabled to become activeparticipants in the world around them.
During 2015/1 6 the Trust worked with 29 Local Authorities.
Public BenefitThe Trustees have complied with the duty in Section 17 of the Charities Act 2011 —to have due regard to theguidance published by the Charity Commission and have referred to the guidance on Public Benefit whenreviewing the aims and objectives of the Hollybank Trust and in planning the future activities. Hollybank Trustcharges fees for its delivery of services to Local Authorities and Clinical Commissioning Groups (CCG's). We offer afree advocacy service to those parents who want it in order to help them obtain funding from Local Authoritiesand CCG's for their child, both for the School and also for the adult homes. The aims of the charity are clearlyintended to benefit children and adults who have profound disabilities and critical medical conditions only. We arevery conscious of our duty to deliver services, not only to those users who are educated and who live under theauspices of Hollybank, but also to members of the public who fit the criteria identified in Hollybank's charitableaims.
Principal Activities during 2015/16The three year strategy (2015-2018) was implemented across the Trust, supported by comprehensive projectplans. All the projects commenced in 2015/16 and some will continue beyond this period. Our principal focus hasbeen on ensuring our financial stability during a very difficult period of austerity for Government agencies, with itsinevitable effect on funding,
Our approach has been fourfold:1. To use our influence externally through partnerships and networking
2. To drive cost reductions
3. To seek out new sources of incomeTo challenge what we do, how we do it and affirm our target customers.
Hoiiybank TrustTrustee's Report and Financial Statements
31 March 2016
Annual Trustee's Report (cont/nued)
4. ACHIEVEMENTS AND PERFORMANCE
The development of our three year strategy (2015-2018) emphasised the flexibility of our provision for a veryspecial group of children, young people and adults with high end complex needs. The subsequent business planfor 2015-2016 identified our principal activities which were designed to address the challenging situation wefaced at the end of the previous year in terms of a projected loss of income for 2015-2016.
Our approach has proved to be very successful with revitalised partnership working, Improved externalrelationships, smarter tendering and commissioning processes as well as a review of purchasing. We have alsoapplied to open a nursery and we are in the process of enhancing our social and leisure facilities at our main site.As a consequence we have seen an increased number of referrals across all age ranges and services which has led
to a significant improvement in our financial position at the end of March 2016.
Fundraising ActivityFundralsed Income forms a small proportion, 2.4%, of the annual income for the Trust unless we are undertakinga major capital appeal which has not been the case during 2015-2016. There have however been severalrefurbishment projects, the most significant of which has been the second phase of a refurbishment programmefor social and leisure facilities (ELMS). This has run alongside a significant revenue appeal to fund our 0-5 year' sprovision for children and families (Little Pips).
The main areas of fundraised activity have been through trusts, corporate support, sponsored events, communityand corporate events and activities, along with donations from the general public. This year the Trust has begunto promote actively donations through legacies. We have also benefitted from work carried out by groups fromour corporate supporters which has given added value to the Trust of F8,539 (2015 E7,425). The total fundraisedincome for the year was 6279,665. (2015:6321,908).
Internal and external factors relevant to achievementsDespite the lack of reliable data relating to numbers of children and adults with profound and complex needs, aswell as the difficulty in finding a reliable and consistently applied definition of Profound and Multiple LearningDifficulties (PMLD), we do know that numbers are predicted to increase nationally over the next 15 years and thataccommodation and provision is frequently not fit for purpose for this vulnerable group of people. We believethat Hollybank is ideally placed to meet such needs, particularly with the breadth and flexibility of our services.These external factors were significant in shaping our strategy.
The changes which have been brought about internally within the Executive Board and the Trust Board ofManagement have also been significant factors in achieving our stated outcomes. As part of that process wehave reviewed how we deliver our services and gained increased support both internally and externally. Overoll2015-2016 has been a positive year.
5. FINANCIAL REVIEW
The total incoming resources of the Trust for the year were 611,867,142 (2015: E11,959,263). The decrease of0.8% is due primarily to a reduction in the number of adult service users during part of the year. This has resultedin a 0.8% decrease In incoming resources from charitable activities resulting in income of E11,468,641 (2015:E1 1,558,727).
The principal source of income comes from fees and charges, mainly from Public Bodies, for the educational,medical/therapy and residential services provided by the Trust. The Trust also receives certain direct grantfunding from the Education Funding Agency (EFA), the Department of Education and Skills, legacies, donationsfrom events and fundraising activities as well as major fundraising appeals for specific projects in some years.
The cost of raising donations and legacy funds was 6303,018 (2015: E409,098) including the allocation ofsupport costs (see note 5). Income from donations and legacies amounted to 6279,665 (2015:E321,908).
Hoiiybank TrustTrustee's Report and Financial Statements
31 March 2016
Annual Trustee's Report (continued)
5. FINANCIAL REVIEW (continued)
The cost of charitable activities for the year is E11,133,136 (2015: E11,038555. The movement in costs isprimarily due to an increase in care salary costs of E167,804 reflecting inflationary pay awards plus an increasedreliance on agency costs offset by a decrease in support function costs.
Governance costs of F42,400 have not been allocated against charitable activities as management do notconsider these costs to represent a day to day operating cost of the Trust. As such they have been recognised as aseparately identifiable expense in the Statement of Financial Activities (SOFA). Whilst this is a departure from theCharity SORP this is immaterial.
The total pension fund deficit, as at 31 March 2016, which is provided for in the financial statements, saw adecrease to E867,000 (2015:E1,123,00) and details of this movement can be found in note 17.The balance sheet shows that at 31 March 2016 the total funds of the Trust were F16,756,900 (2015:E12847,545). The increase is primarily the result of the land and buildings revaluation increase of E3,225,000and the reduction in the present value of the WYPF liablgty of E256,000.
West Yorkshire Pension Fund (WYPF) (see note 17):A number of the Trust's employees are members of the WYPF, a fund closed to new members, which is a multi-employer defined benefit scheme.
An actuarial valuation of the fund was carried out as at 31 March 2013 and information relating to the Trust'sshare of the fund was provided by WYPF in january 2014. The Trust's share of the deficit amounted toE1,260,000 and a 9.5 year recovery plan for the employees in the fund has been agreed to recover the deficit byincreasing the Trust's contribution rate for employers, phased in over a three year period, from the present rate of23.3% to 25.7% of salary in 2017. These increases have been included in the Trust's budgeting and forecastingprocedures.
The Trust obtained an independent professional valuation as at 31 March 2013 of the cost of closing the fund toall future accruals which amounted to approximately E3,300,000.
The Trustee Directors consider the position on a regular basis and in view of the deficit feel it is important tomaintain the level of free reserves (see below) to meet the liability should this arise or it is decided to close thefund to future accrual.
Reserve PolicyAt 31 March 2016 the Trust had free reserves of E3,116,480 (2015: E2578,538). This does not Include thepension fund deficit. Free reserves are the unrestricted funds of the charity, excluding the FRS102 pension liability,less the value of tangible fixed assets bought out of unrestricted funds, adjusted for any attributable long termfinancing.
The Trust utilises reserves to finance significant investment in land, buildings, fixtures, fittings, vehicles andequipment in order to maintain and further develop the service level it provides. This development has continuedduring the year with investment in the year of E239,082 (2015:E537,063) in tangible fixed assets which was metfrom free reserves, voluntary income, and loans.
Levels of income and expenditure are not subject normally to material fluctuations in the short term and can beforecast with a reasonable degree of certainty and cover in the form of business interruption insurance (12months' loss of income) is in place.
The Trustee Directors regularly review the reserve levels, taking into account existing commitments and plannedfuture activities. Free reserves at 31 March 2016 represented 3.3 months' of costs and significantly exceeds theaim of carrying free reserves at a level representing approximately one month's costs and this is considered to bereasonable in view of the continued pressure on fee levels likely to be experienced as a result of reductions inpublic expenditure and also the need to use free reserves for capital expenditure.
10
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Annual Trustee's Report (continued)
5. FINANCIAL REVIEW (continued)
InvestmentsThe Trustee Directors have responsibility for Trust investments, to act in accordance with the Trustees Act 2000,and the Trust's own investment policy. They regularly consider the appropriateness of Trust investments and it isthe current policy of the Trustee Directors to hold endowed funds in a suitable investment fund to produce anappropriate mix of income and capital growth.
The endowed funds are invested in COIF Charities Investment Fund — Income Units, managed by CCLAInvestment Managers Ltd. The value of investments at 31 March 2016 was 628,685 (2015: 629,918) and theTrust received dividends of 61,121 in the year. The Trustee Directors consider that the investments met the setperformance objectives.
School fees are charged and payable each school term, therefore the Trust has periods in the year when it hassurplus funds. These periods are relatively short term, 2 to 3 months, and these surplus funds are offset againstbank loans before the application of any interest charges. Notional interest calculated an this offset is shown asinterest received.
6. PLANS FOR FUTURE PERIODS
Our comprehensive business plan which support our 3 year strategy are continually monitored and realigned toensure that they continue to be fit for purpose and meet our business needs. Within this strategy we are mindfulof the increasing costs associated with the National Living Wage as the new rates are introduced and the effectthese will have on pay differentials across the Trust.
Whilst there are no plans for major capitol developments in the near future, there are projects which align with ourfundraising strategy to fund continued refurbishment and development for social and leisure facilities, alterationswithin residential areas, provision for accommodation for parents and possible holiday accommodation.
Our application to open a nursery was successfully accepted by the D(E and it is planned to open in )anuary 2017.
In early 2016 it was agreed to carry out an external review of governance to support effective succession planningand maintaining our high standard of governance. This has taken place from April 2016 and will inform futureaction planning for the Trust so that we are able to ensure that Hollybank continues to provide "Quality ofLife. ..for Life" now and in the future.
Signed on behalf of the Trustee;
Cha rman of Hollybank Trustees Limited
10'" November 2016
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Statement of Trustee's responsibilities in respect of the Trustee's report and the financialstatements
Under charity law, the Trustee is responsible for preparing the Trustee's Annual Report and the financialstatements for each financial year which show a true and fair view of the state of affairs of the charity and of theexcess of income over expenditure for that period. The Trustee has elected to prepare the financial statements in
accordance with FRS 102 The Finoncial Reporting Standard applicable in the UK and Republic of Ireland.
In preparing these financial statements, generally accepted accounting practice entails that the Trustee:
~ selects suitable accounting policies and then applies them consistently;
~ makes judgements and estimates that are reasonable and prudent;
~ states whether the recommendations of the Statement of Recommended Practice have been followed,
subject to any material departures disclosed and explained in the financial statements;
~ states whether the financial statements comply with the trust deed and rules, subject to any material
departures disclosed and explained in the financial statements;
~ prepares the financial statements on the going concern basis unless it is inappropriate to presume that thecharity will continue its activities.
The Trustee is required to act in accordance with the trust deed and the rules of the charity, within the frameworkof trust law. The Trustee is responsible for keeping proper accounting records, sufficient to disclose at any time,with reasonable accuracy, the financial position of the charity at that time, and to enable the Trustee to ensure
that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011,those statements of accounts comply with the requirements of regulations under that provision. The Trustee hasgeneral responsibility for taking such steps as are reasonably open to it to safeguard the assets of the charity andto prevent and detect fraud and other irregularities.
The Trustee is responsible for the maintenance and integrity of the financial and other information included onthe charity's website. Legislation in the UK governing the preparation and dissemination of financial statementsmay differ from legislation in other jurisdictions.
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
KPMG LLP1 Sovereign SquareSovereign StreetLeedsLS1 4DAUnited Kingdom
Independent auditor's report to the Trustee of Hollybank Trust
We have audited the financial statements of Hollybank Trust for the year ended 31 March 2016 set out on pages 14 to36. The financial reporting framework that has been applied in their preparation is applicable law and UK AccountingStandards (UK Generally Accepted Accounting Practice), including FRS 102, The Financial Reporting Standard applicablein the UK and Republic of /re/and.
This report is made solely to the charity's Trustee as a body, in accordance with section 144 of the Charities Act 2011 (orits predecessors) and regulations made under section 154 of that Act. Our audit work has been undertaken so that wemight state to the charity's Trustee those matters we are required to state to it in an auditor's report and for no otherpurpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than thecharity and it's Trustee as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of the Trustee and auditor
As explained more fully in the Statement of Trustee's Responsibilities set out on page 12 the Trustee is responsible forthe preparation of financial statements which give a true and fair view.
We have been appointed as auditor under section 144 of the Chadities Act 2011 (or its predecessors) and report in
accordance with regulations made under section 154 of that Act. Our responsibility is to audit, and express an opinionon, the financial statements in accordance with applicable law and International Standards on Auditing (UK andIreland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website atwwwfrcor uk/aud'ts o eu rivate.
Opinion on financial statements
In our opinion the financial statements:
~ give a true and fair view of the state of the charity's affairs as at 31 March 2016 and of its incoming resources andapplication of resources for the yeor then ended;
~ have been properly prepared in accordance with UK Generally Accepted Accounting Practice; and~ have been properly prepared in accordance with the requirements of the Charities Act 201 1.
Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if,in our opinion:~ the information given in the Trustee's Annual Report is inconsistent in any material respect with the financial
statements; or~ the charity has not kept sufficient accounting records; or~ the financial statements are not in agreement with the accounting records; or~ we have not received all the information and explanations we require for our audit.
Chris Buttfor and on behalf of KPMG LLP, Statutory AuditorChartered Accountants'i Sovereign SquareSovereign StreetLeedsLS1 4DA
te" ~.r ~~
13
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Statement of financial activitiesfor the year ended 31 March 2016
UnrestrictedFunds
Note 2016E
RestrictedFunds2016
E
EndowmentFund
20166
TotalFunds2016
E
TotalFunds
2015
Income and endowments from:Donations and legaciesCharitable activitiesInvestmentsOther
2 147,2842 11,468,6412 37,1232 80,592
132,381
1,121
279,66511,468,641
38,2II480,592
321,908'11,558,727
19,49059,138
Total Income 2 11,733,640 132,381 1,121 11,867,142 11,959,263
Expenditure on:Raising fundsCharitable activities-Other
3 301,8974 11,114,2056 42,400
18,9311,121 303,018 409,098
11,133,136 11,038,55542,400 17,917
Total expenditure 11,458,502 18,931 1,121 11,478,554 11,465,570
Net income
Other recognised gains/(losses):Gains on revaluation of fixedassetsGains/(losses) an revaluation ofinvestmentsActuarial gains/(losses) on definedbenefit pension schemes
275,138 113,450
9 3,225,000
10
17 297,000
(1,233)
388,588 493,693
3,225,000
(1,233) 2,623
297,000 (397,000)
Net movement In funds
Reconciliation of FundsFund balances brought fonvardat 1 April 2015
3 797 138 113Ir50 (1,233) 3,909,355 99,316
15 12,231,099 586,528 29,918 12,847,545 12,748,229
Fund balances carried forward31 March 2016 15 16,028,237 699,978 28,685 16,756,900 1 2,847,545
The above results derive from continuing activities.
The notes on pages 18 to 36 form part of these financial statements.
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Balance sheetat 31 March 2016
Fixed assetsTangible fixed assetsInvestments
Note
910
2016E
17,102,89228,685
201 5
14,474,23829,918
Current assetsDebtorsCash at bank and in hand
11 939,3983,296,070
17,131,577
878,1613,142,527
14,504,156
Liabilities: amounts falling duewithin one year
4,235,468
12 (1,418,071)
4,020,688
PL722, 311)
Net current assets 2,817,397 2,298,377
Total assets less current liabilities
Liabilities: amounts falling due aftermore than one year
19,948,974
(2,325,074)
16,802,533
(2,831,988)
Net assets excluding pension scheme liability
Defined benefit pension scheme liability 17
17,623,900
(867,000)
1 3,970,545
(1,1 23,000)
Net assets including pension scheme liability 16,756,900 1 2,847,545
FundsUnrestricted funds
Pension scheme reserve 1716,895,237
(867,000)1 3,354,099(1,1 23,000)
Total unrestricted funds
Restricted fundsEndowment fund
15
1515
16,028,237
699,97828,685
1 2,231,099
586,52829,918
Total Charity Funds 16,756,900 1 2,847,545
Approved by the Trustee Board on 10'" November 2016 and signed on its behalf by:
HalChairman of Holiybank Trustees Limited
The notes on pages 18 to 36 form part of these financial statements.
15
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Cash flow statementfor the year ended 31 March 2016
Note 2016 2015f.
Net cash used in operating activities
Cash flows from Investing activitiesPurchase of tangible fixed assetsDisposal of tangible fixed assets
1 899,259
(239,082)
948,983
(537,063)295,336
Net cash used by investing activities (239,082) (241,727)
Cash flows from financing activitiesRepayment of borrowing (506,63Ir) (634,1 80)
Net cash used in financing activities (506,634) (634,180)
Change in cash and cash equivalents in the period 153,543 73,076
Cash and cash equivalents at the beginning of the period 3,1II2,527 3,069,451
Cash and cash equivalents at the end of the period 3,296,070 3,142,527
16
Hoflybank TrustTrustee's Report and Financial Statements
31 March 2016
Notes to cash flow statement
1. Reconciliation of net cash used in operating activities
20166
2015
Net incoming resourcesDepreciationLoss on disposal of tangible fixed assetsPension service recovery not covered by contributions(Increase)/decrease in debtors(Decrease) in creditors
388,588833,856
1,57241,000
(61,237)(304,520)
463,010878,638
6,763(105,000)
134,981(429,409)
Cash flow from operating activities 899,259 948,983
17
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Notes(forming part of the financial statements)
1 Accounting policies
Hollybank Trust (the "Charity" ) is an unincorporated Charity.
The accounts (financial statements) have been prepared under the historical cost convention with items recognised athistoric cost modified by the adoption of measuring investment assets and freehold property on a revaluation basis. Thefinancial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting andReporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in theUK and Republic of Ireland (FRS 102) issued on 'l6)uly 2014 and the Charities Act 2011.
In the transition to FRS 102 and the Charities SORP from old UK GAAP, the Charity has made measurement andrecognition adjustments. An explanation of how the transition to FRS 102 and the Charities SORP FRS 102 has affectedthe financial position and financial performance of the Charity is provided in note 18.
The mast significant areas of adjustment and key assumptions that affect items in the accounts are to do withestimating the defined benefit pension scheme obllgotion and the valuation of the Charity's freehold property. Withrespect to the next reporting period, 2016-17, the most significant areas of uncertainty that affect the Charity are thelevels of investment return; the impact of the national living wage; public sector funding and its impact an service usernumbers.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented inthese financial statements.
Going ConcernThe Trustee Directors have considered the resources available to the Trust to enable it to continue as a going concern.Given the available cash and forecast surpluses that allow the Trust to go about its day to day business, the TrusteeDirectors concluded that the Trust is a going concern and as such the accounts are prepared on a going concern basis.
Incoming resourcesIncome from grants and fees are matched to the periods for which the services are provided and any such income, notexpended by the end of the financial year, is carried forward as deferred income.
All donations and grants towards asset purchases, income from fundraising events, and investment income are treatedas income in the year receivable. Legacy income is included either when received or, if before receipt, there is reasonablecertainty that the legacy will be received and that the value receivable can be measured with sufficient reliability.
18
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Notes (continued)
1 Accounting policies (continued)
Fixed assets and depreciationDepreciation is provided by the Trust to write off the cost less the estimated residual value of tangible fixed assets byequal instalments over their estimated useful economic lives as follows:
Freehold landFreehold buildingsEquipment, Fixtures and fittingsMotor vehicles
nil
2% per annum20% 33% per annum2S % 33% per annum
A policy of revaluation exists for freehold land and buildings. Valuations are performed by external valuation specialists.
A surplus on book value is transferred to unrestricted funds. A deficit is recognised when the book value exceeds itsvalued amount. Such losses are recagnised in the Statement of Financial Activities unless it arises an a previouslyrevalued asset. A deficit on a revalued asset is recognised from any aggregate surplus relating to that asset. Where thereis no such surplus or if the carrying value may not be recoverable, and the deficit or impairment is deemed permanent, itis charged to the Statement of Financial Activities.
Land and buildings in the course of construction or conversion are not depreciated until brought into use.
Plant, equipment, furnishings, fixtures, fittings and other tangible fixed assets, with a value of E1,000 or less, are writtenoff as cons umab les in the year of purchase.
Tangible fixed assets are subject to review on a regular basis to ensure that there has been no impairment and that thevalue included in assets is fair and reasonable.
LeasesAssets acquired under finance leases or hire purchase agreements are capitalised and the outstanding future obligations areshown in creditors. Operating lease rentals are charged to the Statement of Financial Activities on a straight-line basis overthe period of the lease.
Resources expendedAll expenditure is accounted for on an accruals basis and hos been classified under headings that aggregate all costsrelated to the category. Where costs cannot be directly attributed to particular headings they have been allocated toactivities on a staff time basis. No amounts have been included in the financial statements for services donated byvolunteers.
Pension costsFor the defined contribution scheme and the Teachers' non-funded scheme the amounts charged to the Statement ofFinancial Activities, in respect of pension costs, is the total contributions payable in the year. For the West Yorkshire PensionFund, which Is a defined benefit scheme, the cost charged to the Statement of Financial Activities is the actual service costfor the year. They are included as part of staFf salary costs.
Pension scheme assets are measured using market values. For quoted securities the current bid price is taken as marketvalue. Pension scheme liabilities are measured using a projected unit method and discounted at the current rate ofreturn on a high quolity corporate bond of equivalent term and currency to the liability.
The pension scheme surplus (to the extent that it is recoverable) or deficit is recognised in full, The movement in thescheme surplus/deficit is split between operating charges, finance items and, in the Statement of Financial Activities,actuarial gains and losses.
19
Hoiiybank TrustTrustee's Report and Financial Statements
31 March 2016
Notes (continued)
1 Accounting policies (continued)
VATThe Trust's activities are classified as exempt or non-business activities for the purposes of VAT and therefore any VATcharged on purchases is a cost to the Trust and is included in the relevant costs heading in the Statement of FinancialActivities.
InvestmentsInvestments are stated at market value at the balance sheet date. Changes made to the balance sheet market values arereflected in the Statement of Financial Activities together with realised profits and losses on sales of investments during theyear.
Fund structureThe Trust's funds are held in the following separate funds:
Unrestricted fundThis fund represents the unrestricted funds that the Trustee is free to use in accordance with the charitable objects of theTrust.
Restricted fundsThese funds represent donations, grants and fundraising income from events and appeals for a specific purpose. Theincome is spent on providing land and buildings, equipment, facilities and social activities for the benefit of pupils andstudents in school and people residing at the various adult residential sites. Further details can be found in note 1 S(b).
Permanent Endowment FundThis is a permanent endowment fund, the income of which is restricted to the provision of additional benefits for pupilsand students in the school.
TaxHollybank Trust is considered to pass the tests set out in paragraph 1 schedule 6 of the Finance Act 2010 and therefore itmeets the definition of a charitable trust for UK income tax purposes. Accordingly the charity is potentially exempt fromtaxation in respect of income or capital gains within categories covered by Part 10 Income tax act 2007 or section 256of The Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to charitablepurposes.
20
Hoilybank TrustTrustee's Report and Financial Statements
31 March 2016
Notes (continued)
1 Accounting policies (continued)
Basic financial instruments
Trade ond other debtors I creditorsTrade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and othercreditors are recognised initially at transaction price plus attributable transaction costs, Subsequent to initial recognitionthey are measured at amortised cost using the effective interest method, less any impairment losses in the case of tradedebtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normalbusiness terms, then it is measured at the present value of future payments discounted at a market rate of instrumentfor a similar debt instrument.
fnterest-bearing borrowings classified as basic financial instrumentsInterest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rateof interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effectiveinterest method, less any impairment losses.
Cash and cash equivalentsCosh and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand andform an integral part of the Trust's cash management are included as a component of cash and cash equivalents for thepurpose only of the cash flow statement.
Other financioi instrumentsFinancial instruments not considered to be Basic financial instruments (Other financial instruments)Other financial instruments not meeting the definition of Basic Financial Instruments are recognised initially at fairvalue. Subsequent to initial recognition other financial instruments are measured at fair value with changes recognisedin the Statement of Financial Activities.
Hogybank TrustTrustee's Report and Financial Statements
31 March 2016
Notes (continued)
2 Income and endowments
Unrestricted RestrictedE
Endowment 2016E
201 5
Donations and LegacyIncome:
DonationsFundraising eventsLegacies
101,67639,108
6,500
132,381 234,05739,108
6,500
220,193100,71 5
1,000
Total Income from legacies and donations 147,284 132,381 279,665 321,908
Investment Income DividendsInterest Received 37,123
1,121 1,12137,123
1,09918,391
Total Investment Income 37,123 1,121 38,244 19490
Charitable Activities School Fees - EducationSchool Fees - ResidentialDirect Grants and Awards
Bradbury Therapy CentreEnrichment ProjectAdult Services - Residential
858,3821,361,012
68,70352,87310,611
9,117,060
858,3821,361,012
68,70352,87310,611
9,117,060
914,0471,105,1 79
119,32245,298
7,4279,367,454
Income from CharitableActivities
11,468,641 11,468,641 11,558,727
Other Income 80,592 80,592 59,138
Total Other IncomingResources 80,592 80,592 59,138
Total Incoming Resources 11,733,640 132,381 1,121 11,867,142 11,959,263
22
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
NOteS (continued)
3 Costs of Donations and Legacy Income
Staff castsOFfice and Premises costsInsuranceMotor and Travel ExpensesDepreciationBrochures and publicityTraining and RecruitmentFundraising eventsSupport costs (note 5)
Unrestricted
127,70217,67Ir
1,3201,059
11,87917,991
1,4193,237
119,616
301,897
EndowmentE
1 121
1,121
2016E
127,70217,67Ir
1,3201,059
11,87917,991
1,4194,358
119,616
303,018
2015E
143,48923,435
1,1831,91 Ir
19,67211,257
35370,606
137,189
II09,098
4 Cost of Charitable Activities
Administration staff costsAdministrative costsFood and other catering costsMotoring and travel expensesMotor depreciationEducation staff costs
UnrestrictedE
28,55021,981
159,782132,34253,980
37II,068
RestrictedE
2016
28,55021,981
159,782132,34253,980
374,068
2015
34,8161 2,7IIB
164,560133,916
52,911384,605
Education sundry costsTherapy staff costs
Therapy costsMedical staff costsMedical costsResidential care salariesResidential other care costsEnrichment staff costsEnrichment other costsCleaning staff costsCleaning, laundry and waste costsTelephonesTraining and recruitmentSocial and recreationalRates, water, light and heatInsurancesPremises staff costsRepairs, renewals and maintenanceGardens and groundsHealth and SaFetyOther depreciationLoss an disposal of tangible frxed assetsOther expenses
Interest payable
Support costs (note S)rChildren's ServicesAdult Services
7,813495,217
99,08171,69921,777
6,302,612107,947231,87121,51623,11960,80317,0Ir362,93548,908
213 33261,848
137,089413,011
57,92915,316
656,6721,5721,483
66,067
252,952893,890
11,114,205
18,931
7,813Ir95,217
99,08171,69921,777
6,302,612107,947231,87121,51623,11960,80317,04362,93548,908
213,33261,848
137,089413,011
57,92915,316
675,6031,5721,483
66,067
252,952893,890
18,931 11,133,136
9,099481,083
78,659'I 23,93617,404
5,856,696128,677181,543
8,01813,80253,68525,II214II,88955,6 II5
220,46856,330
283,395448,846
56,84II18,463
636,2966,7638,695
48,06II
312,2071,080,071
11,038,555
23
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Notes (continued)
Allocation of Governance and Support Costs
Children' sSewlces
E.
Adult Sewices Fundraising 2016 2015
ManagementStaff costsOther costsDepreciation
Finance and AccountsStaff costsOthercostsDepreciation
HR and Payroll
Staff costsOther costsDepreciation
information TechnologyStaff costsOther costsDepreciation
82,64914,670(3,028)
25,2051,5483,871
33,03830,15311,781
15,91229,218
7,935
284,68050,531
(10,431)
112,0266,877
17,203
86,87779,29430,980
70,719129,869
35,265
91,83216,300(3,365)
2,800172429
2,4482,233
873
1,7683,245
881
459,16181,501
(16,824)
140,0318,597
21,503
122,363111,68043,634
88,399162,33244,081
423,8101 45,201
23,196
167,28722,76126,843
170,282185,349
54,391
93,3441 51,674
65,329
252,952 893,890 119,616 1,266,458 1,529,467
The support costs are allocated on a staff time basis.
6 Other Costs
20166
20156
Audit and legal costs (see below) 42,400 17,917
Included in audit and legal costs are external audit fees of 614,700 (2015:EI 1,000).
Governance costs of 642,400 (2015:Ef 7,917) have not been allocated against charitable activities as management donot consider these costs to represent a day to day operating cost of the Trust. As such they have been recognised as aseparately identifiable expense in the Statement of Financial Activities. Whilst this is a departure from the Charity SORP
this is immaterial.
24
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
NOteS (continued)
7 Staff Costs
2016 2015F.
Wages and salariesRedundancySocial security costsPension costs (see below)Agency and supply labour cost
7,155,31348,207
459,305312,387626,669
7,210,08363,000
471,583182,643430,779
8,601,881 8,358,088
Pension costs2016 2015
E
Defined contribution schemesDefined benefit scheme (Teachers)Defined benefit scheme (WYPF) (see below)
100,85836,529
175,000
104,13741,50637,000
312,387 182,643
Pension costs relating to the WYPF defined benefit scheme are recognised net of interest gains attributable to thescheme of E35,000 (2075:E33,000) (see note 17).
The average number of employees (excluding agency and supply labour) during the year was as follows (full timeequivalents):
Staff Generating Voluntary IncomeCharitable Activities
Support
Governance
FundraisingAdministrationEducationTherapyMedicalResidential —Children's ServicesResidential —Adult ServicesCleaning and premisesManagementFinance and poyrollHR
Information and TechnologyAdministration
2016No.4.16.3
23.520.712.037.2
257.318.03.0645.66.01.6
2015No.4.65.3
23.316.711.129.6
237.814.43.06.45.54.02.0
401.7 363.7
25
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
NOteS (continued)
7 Staff costs (continued)
The number of employees who received emoluments, including redundancy and taxable benefits, in excess of E60,000 is
as follows:
660,001 - 670,000670,001 - 6100,000
61 00,001 - 6120,000
2016No.
1
11
2015No.311
In respect of these employees' pension contributions of F19,807 (2015: E15,742) were payable by the Trust into adefined benefit scheme and retirement benefits are accruing.
The key management personnel comprises of the Chief Executive Officer, Head of Finonce, Head of Direct Services andHead of Central Operations (the Executive Team). In respect of these employees an aggregate salary of F264,523 (2015:E178,977) was paid along with pension contributions of E23,180 (2015:E18,011).
8 Remuneration of Trustee Directors and related party transactions
None of the Trustee Directors of Hollybank Trustees Limited received any remuneration or expenses during the year in
the course of their duties as Trustee Directors (2015:none).
Mr IRH Sykes, Trustee Director, is also a Partner of the Trust's solicitors, Lupton Fawcett LLP. During the year the Trustpaid for legal sewices provided, on an arm's length basis, amounting to E9,644 (2015:E81,005).
Dr V Thiyagesh, a Trustee Director, provided a paediatric sewice to the Trust, on an arm's length basis, amounting toE5,000 (2015:E5,000).
9 Tangible fixed assets
Assets underthe course ofconstruction
Land andBuildings
Equipment,fixtures and
fittings6
Motor Vehicles Total
Cost or valuationAt beginning of yearAdditionsOisposalsTransfersRevaluations
46,02998,091
(46,029)
14,556,47626,795
3,225,000
3,987,508108,688
(1,572)46,029
680,3255,508
19,270,338239,082
(1,572)
3,225,000
At end of year 98,091 17,808,271 4,140,653 685,833 22,732,848
DepreciationAt beginning of year
Charge for year
1,676,220
242,6132,602,583
537,263517,297 4,796,100
53,980 833,856
At end of year 1,918,833 3,139,846 571,277 5,629,956
Net book value
At 31 March 2016 98,091 15,889,438 1,000,807 114,556 17,102,892
At 31 March 201 5 46,029 12,880,256 1,384,925 163,028 14,474,238
26
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Notes (continued)
9 Tangible fixed assets (continued)
All the freehold property, owned by the Trust, has been valued by Ian R Nayior BSc (Hons) MRICS of SandersonWeatherall, Chartered Surveyors. In accordance with paragraph 265 of the SORP, the properties are being valued on arolling basis over a 5 year period. These valuations are being performed on an open market value basis, assuming vacantpossession and are undertaken in accordance with current edition of The Appraisal and Valuation Standards (Fifthedition) issued by the Royal Institution of Chartered Surveyors.
The historic cost of the freehold land and buildings at the 31 March 2016 is 61 3,726,682 (201St E13,699,887).Included in the net book value of freehold land and buildings is F1,943,382 (2015:E1,609,417) being the valuation ofthe land and this has not been depreciated.
10 Investments
Investments are held in COIF Charities Investment Fund —Income Units, a UK Fund and are a permanent endowment.
2016 201 5
Investments at market value at 31 March 2015(Decrease)/increase in value
Market value at 31 March 2016
29,918(1,233)
28,685
27,2952,623
29,918
11 Debtors
2016 2015
Trade debtors5undry debtors and prepaymentsIncome accruais
616,505169,334153,559
647,029172,584
58,548
939,398 878,161
There is a long term debt of 641,260 in respect of which the Trust holds a charge on a property owned by the debtor.Payment of this debt, together with accrued interest, will be received from the proceeds of the sale of the property.Because the timing of this receipt is uncertain, and it could be many years before this debt is discharged, full provisionhas been made against the debt.
27
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Notes fcontinuedl
12 Liabilities: amounts falling due within one year
Bankioans(note 13)ACT loan (note 13)Trade creditorsFinancial liabilities designated at fair value through income and expenditure
Other creditorsOther taxes and social securityAccruols and deferred income
2016
336,884125,000221,801
39,024138,878124,393432,091
201 5
336,604125,000238,48941,345
280,443115,934584,496
1,418,071 1,722,311
13 Liabilities: amounts falling due after more than one year
Bank loans (see below)Financial liabilities designated at fair value through income ond expenditure
ACT loan (secured)
2016
1,835,874114,200375,000
2015
2,199,145132,843500,000
2,325,074 2,831,988
The bank loans are secured by a first charge on the freehold land and buildings, which have a net book value at 31 March
2016 of 615889438. The bank and ACT loans are payable by instalments as follows:
Within one year (note 1 2)In the second to fifth yearIn more than five years
2016
461,88II1,528,957
681,917
2015
461,6041,671,7541,027,391
2,672,758 3,1 60,749
Fair value of financial instruments
The bank loan agreements allow for the set off of any credit balances on the Trust bank current accounts against two ofthe loans before the calculation of interest. The rate of interest chargeable an these bank loans is 1.75 N over base rate.
Financial liabilities designated at fair value through income and expenditure relate to an interest rate swap financial
derivative used to hedge the interest risk on two long term loans. The contract is due to mature in February 2024.
The fair value of the interest rate swap is estimated by discounting the difference between the cumulative contractual
interest paid and the fair value of the cumulative interest paid at the maturity of the contract. The financial instrument
has been identified as a level 2 instrument.
The instrument has a carrying liability of F153,224 as at 31 March 2016. The opening position was a liability of6174,189.The reduction in the liability of 620,965 has been recognised through the Statement of Financial Activities.
28
Hollybank TrustTrustee's Report and Finanaal Statements
31 March 2016
NOteS (continued)
14 Commitments
At 31 March 2016 the Trust had capital commitments of 6175,000 (2015:anil).
15 Funds
a) Analysis of net assets between funds
Restricted and endowment funds
Fundraising AccountHuddersfield Charity for Children(previous registration number221357) endowment fund
Tangiblefixed
assets
651,378
Investments
28,685
Net Liabilities duecurrent after moreassets Thanoneyear
48,600
Pensionschemeliability Total
699,978
28,685
Unrestricted funds
651,378
1 6,4 51,51 4
17,102,892
28,685
28,685
48,600 728,663
2,817,397 (2,325,074) (867,000) 16,756,900
2,768,797 (2,325,074) (867,000) 16,028,237
29
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Notes (continued)
15 Funds (continued)
b) Summary of Fund Movements
Fund BalancesBroughtforward
IncomingResources
OutgoingResources
Revaluation ofInvestment andFixed Assets and
Actuarial Gain onPension scheme
6
Fund Balancescarried forward
Restricted Funds
School Minibus (note 16)Bradbury Therapy Centre
Transition Projects Appeal
ELMS projectLittle PipsOther Minor Projects
48,600473,659
22,20042,069 54,750
38,95638,675
(11,604)(504)
(6,823)
48,600462,055
21,69689,99638,95638,675
Restricted Funds 586,528 132,381 (18,931) 699,978
Endowment Fund 29,918 1,1 21 (1,1 21) (1,233) 28,685
Unrestricted Funds 12,231,099 11,733,640 (11,458,502) 3,522,000 'I 6,028,237
12,&47,545 11,867,142 (11,478,554) 3,520,767 16,756,900
Bradbury Therapy CentreA grant of ES&0,000 was received in 2006 from Sport England for construction of the Bradbury Therapy Centre which
opened in 2006 and is being written off over the expected useful life of 50 years.
Transition Projects AppealA contribution of E25,000 was received in August 2008 towards the construction of Rowan Court and, in compliance withthe terms of the award, is being written off over the property's expected useful life of 50 years.
ELMS projectContributions hove been received totalling E96,819 towards the project for the redevelopment of rooms within the RoeHead building to install multi-sensory equipment for use by both adults and children.
Little PipsContributions totalling E38,956 was received towards the set-up and running of Little Pips, a provision for children under
the age of five years old.
Other Minor ProjectsThis relates to a variety of donations for beds, hoists and IT equipment.
Details concerning the Endowment Fund can be found in note 1.
Unrestricted funds are funds that are free to be used in accordance with the charitable objects of the Trust. There are nodesignated funds as at 31 March 2016 (201Sr Enil).
There are no other recognised gains or losses that have not been dealt with in the Statement of Financial Activities as setout an page 14.
30
Hoiiybonk TrustTrustee's Report and Financial Statements
31 March 2016
Notes (continued)
16 School Minibus
A condition, by the donors of the grant of a new minibus for school, is that the Trust puts aside a sum of money eachyear in order to replace the minibus at the end of its useful life. The balance of the fund at 31 March 2016 amounted toE48,600 (20'l5: E48,600) which is sufficient to replace the mini bus and this has been included within restricted funds.
17 Pensions
Teachers are members of the Teachers' Pension Scheme, an unfunded statutory final salary scheme. A number ofemployees are members of the West Yorkshire Pension Fund, a fund closed to new members, which is a multi-employerdefined benefit scheme. All other employees are eligible to join a Money Purchase Plan administered by The PensionsTrust. Employees not wanting to join this scheme have been enrolled in to the Auto Enrolment scheme which isadministered by The Pension Trust. There were outstanding contributions of E15,442 accrued at 31 March 2016 (2015:Ef4,784).
The Teachers' Pension scheme is an unfunded scheme whereby contributions are paid, by the scheme, to the Exchequerand retirement and other superannuated benefits are paid out of monies provided by The Government. Other than thepayment of contributions the 1rust has no other liabilities in relation to this Scheme and there is no requirement fordisclosure under the Financial Reporting Standard 102 (FRS102). Therefore, in accordance with FRS102 the scheme isaccounted for as a defined contribution scheme and contributions are accounted for when advised as due by the schemeadministrator.
The valuation used for FR5102 disclosures, for the West Yorkshire Pension Fund, is based on the most recent valuation at31 March 2013 and is updated by scheme actuaries to take account of the requirements of FRS102 in order to assess theposition of the scheme at 31 March 2016, Following the 2013 actuarial valuation revised contribution rates hove beenset in order to recover the deficit over a 22 year period. Contribution rate increases are to be phased in, over a three yearperiod, from the present rate of 23.3 9( to 25.7 X in 2017.
The information disclosed below is in respect of the whole of the plans for which the Campany is either the sponsoringemployer or has been allocated a share of cost under an agreed group policy throughout the periods shown.
2016EOOO
2015EOOO
Present value of defined benefit obligations
Fair value of plan assets6,434
(5,567)7,112
(5,989)
Present value of unfunded defined benefit obligations 867 1,123
2016EOOO
2015FOOO
Opening present value of unfunded defined benefit obligations
Pension service recovery not covered by contributions
Actuarial (gains)/losses on defined benefit pension scheme
1,12341
(297)
831(105)397
Present value of unfunded defined benefit obligations 867 1,123
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Notes (continued)
17 Pensions (continued)
Movements in present value of defined benefit obligation2016EOOO
2015EOOD
At 1 April 2015Current service costPast service costInterest costActuarial (gains)/losses
Contributions by members
Benefits paid
7,11210337
226(493)
27(578)
6,15412215
263643
36(121)
At 31 March 2016 6,434 7,112
Movements in fair value of plan assets2016 2015EOOO f000
At 1 April 2015Expected return on plan assets
Actuarial (losses)/gains
Contributions by employer
Contributions by members
Benefits paid
5,989191
(196)13427
(578)
5,323230379'i 4236
(1 21)
At 31 March 2016 5,567 5,989
32
Holiybank TrustTrustee's Report and Financial Statements
31 March 2016
NOteS (continued)
17 Pensions (continued)
Expense recognised in the Statement of Financial Activities2016EOOO
2015EOOO
Current service costPast service costFinancing cost
1033735
1221533
Total 175 170
The fair value of the plan assets and the return an those assets were as follows:2016
Fair valueEOOO
2015Fair value
EOOO
EquitiesGovernment bondsCorporate bonds
PropertyCashOther
4,186273596256
72184
4,564635281258114137
5,567 5,989
Actual return on plan assetsThe expected rates of return on plan assets are determined by reference to the historical returns, without adjustment ofthe portfolio as a whole, and not on the sum of the returns on Individual asset categories.
Principal actuarial assumptions (expressed as weighted averages) at the year-end were as follows:
2016p
2015
Discount rate
Expected rate of return on plan assets is calculated using the liability discount rateFuture salary increasesRate of Increase in Pensions
3.3
3.31.9
3.3
3.41.9
In valuing the liabilities of the pension fund at 31 March 2016, mortality assumptions have been made as indicatedbelow. The assumptions relating to longevity underlying the pension liabilities at the balance sheet date are based onstandard actuarial mortality tables and include an allowonce for future improvements in longevity. The assumptionsare equivalent to expecting a 65-year old to live for a number of years as follows:
~ Current pensioner aged 65: 22.6 years (male), 25.5 years (female)~ Future retiree upon reaching 65: 24.8 years (male), 27.8 years (female)
33
Hallybauk TrustTrustee's Report and Financial Statements
31 March 2016
NOtes (continued)
17 Pensions (continued]
History of Plans
The history of the plans for the current and prior periods is as follows:
Ba/ance sheet2016
f000
2015 2014
6000 6000
2013 2012 2011
6000 6000 6000
Present value of scheme liabilitiesFair value of scheme assets
6,434 7,1 1 2 6,1 54(5567) (5,989) (5,323)
6,187 5,498 4,705(5,034) (4,390) (4,209)
Deficit 867 1,123 831 1,153 1,108 496
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Notes (continued)
18 Explanation of transition to Charity SORP FRS 102 from old UK GAAPAs stated in note 1, these are the Trust's first financial statements prepared in accordance with Charity SORP FRS 102.The accounting policies set out in note 1 have been applied in preparing the financial statements for the yeor ended 31March 2016 and the comparative information presented in these financial statements for the year ended 31 March2015.In preparing its Charity SORP FRS 102 balance sheet, the Company has adjusted amounts reported previously in
financial statements prepared in accordance with its old basis of accounting (UK GAAP). An explanation of how thetransition from UK GAAP to Charity SORP FRS 102 has affected the Charity's financial position and financialperformance is set out in the following tables.
Reconciliation of funds
1 Apdil 2014 31 March 2015
Effect oftransition
UK GAAP to FRS 1026
Effect oftransition
FRS 102 UK GAAP to FRS 102 FRS 102E F. 6 6
Fixed assetsTangible fixed assetsInvestments
15,117,91227,295
15,117,912 14,474,23827,295 29,918
1ri,474,23829,918
15,145,207 15,145,207 14,504,156 14,504,156
Current assetsDebtors (due with one year)Cash at bank ond in hand
1,013,1423,069,II51
1,01 3,1 42 878,1613,069,451 3,1/i2, 527
878,1613,142,527
Creditors: amounts due within oneyear (2,162,926) (1rl4,760) (2,307,686) (1,579,791) (142,520) (1,722,311)
Net current assets 1,919,667 (144,760) 1,774,907 2,4II0,897 (142,520) 2,298,377
Creditors: amounts falling dueafter more than one year (3 179 599) (161 286) (3 340 885) (2 699,145) (132 8II3) (2 831,988)
Provisions for liabilitiesPension scheme liability (831,000) (831,000) (1,123,000) (1,123,000)
Net assets 13,054,275 (306,046) 12,7rl8, 229 13,122,908 (275,363) 12,847,545
FundsUnrestricted fundsPension scheme reseweRestricted fundsEndowment fund
13,250,413 (306,046) 12,944,367 13,629,462 (275,363) 13,354,099(831,000,' - (831,000) (1,123,000) ~ (1,123,000)607,567 607,567 586,528 586,528
27,295 27,295 29,918 29,918
Total funds 13,054,275 (306,046) 12,748,229 13,122,908 (275,363) 12,847,545
Notes to the reconciliation of fund balances
The 1 April 2014 adjustment comprises of a holiday pay provision of E100,000 plus 6206,046 relating to an estimatedliability on an Interest Rate Swap agreement (see note 13).
The 31 March 2015 adjustment comprises of a holiday pay provision of E101,174 plus 6174,189 relating to anestimated liability on the Interest Rate Swap agreement (see note 13).
35
Hollybank TrustTrustee's Report and Financial Statements
31 March 2016
Notes /continued)
18 Explanation of transition to Charity SORP FRS 102 from old UK GAAP (continued)
Reconcil/ation of Statement of Financial Acti v/ties for comparative purposes
Incoming Resources
31 March 2015UK GAAP
F.
Effect oftransition to 31 March 2015
FRS 102 FRS 102E E
Incoming resources from generated funds
Voluntary incomeActivities for generating fundsInvestment incomeIncoming resources from charitable activitiesOther incoming resources
221,193100,715
19,49011,558,727
59,138
221,193100,71519,490
11,558,72759,138
Total Incoming Resources 11,959,263 11,959,263
Resources Expended
Cost of generating voluntary incomeCharitable activitiesGovernance costs
409,09811,069,238
17,917
409,098(30,683) 11,038,555
17,917
Total Resources Expended 11,496,253 (30,683) 11,465,570
Net incoming resources before other recognised gainsond losses
Other recognised gains/(losses)Unrealised gain on revaluation of investmentsUnrealised gain on revaluation of fixed assetsActuarial Ross)/gain an defined benefit pension scheme
463,010
2,623
(397,000)
30,683 493,693
2,623
(397,000)
Net movement in funds
Reconciliation of Funds68,633 30,683 99,316
Fund balances brought fonvardat1 Apri(20'l4 13,054,275 (306,046) 12,7II8,229
Transfers
Fund balances carried forward at 31 March 2015 13,122,908 (275,363) 12,847,545
Notes to the reconciliation of fund balances
The effects of the transition to FRS 102 amounting to E30,683 is made up of E31,857 relating to the reduction in
liability of the Interest Rate Swap agreement plus an increase ln liability of outstanding holiday pay of E1,174.
36