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Annual report and accounts 2018/19 Annual Report and Accounts 2018/19 " We will never, ever give up working with children, young people and their families to empower them to make their own choices at every stage in life. " 2 Chailey Heritage Foundation 3 Contents 04 About Chailey Heritage Foundation 05 Meet Henry 06 Welcome from Chair of Trustees and Chief Executive 07 Trustees' Report on Strategy and Operations 08 Exceeding Expectations 13 Meet Toby 16 2018-19 Highlights & Achievements 18 Meet Harry 19 2018-19 Spotlight on our community services 21 Meet Thomas 24 Our people 30 You helped us make Dreams come true! 34 Fundraising highlights 36 Trustees' report on financial and other statutory matters 43 Independent auditor's report to the members of Chailey Heritage Foundation 46 Trustees, Governors, executives and professional advisors 47 Statement of Financial Activities for the Year Ended 31st August 2019 48 Balance Sheet As at 31st August 2019 49 Statement of Cash Flows for the Year Ended 31st August 2019 50 Statement of Accounting Policies and Notes to the financial statements for the Year Ended 31st August 2019 4 Annual Report and Accounts 2018/19 About Chailey Heritage Foundation What we do Chailey Heritage Foundation provides education and care services and is one of the UK's leading centres for children and young people with complex neurodisabilities. Most of our young people have severe cerebral palsy, many have visual and/or other sensory impairments. All our young people are wheelchair users and very few have verbal communication. Our expertise is in maximising independence and choice, developing effective communication and providing powered mobility opportunities. Under the Chailey Heritage Foundation umbrella, the Charity delivers services in four main areas: a non-maintained special school for 2-19 year olds Founded in 1903 by Grace Kimmins, we still embrace her ethos today. We believe that each child and young person should have every opportunity to fulfil their potential, no matter what the challenges. Our promise today is that: "We will never, ever give up working with children, young people and their families to empower them to make their own choices at every stage in life." We have developed a world-class range of specialist services that are necessary to meet the needs of these disabled young people. We work in close partnership with Chailey Clinical Services, a nationally recognised specialist NHS tertiary service for children and young adults with complex neurological and physical disabilities. Being on the same site enables us to deliver uniquely, integrated multi-agency services for the benefit of the young people and their families. a children's home offering a range of boarding options from short breaks, holiday clubs through to 52 week care for pupils from our school and other local special schools a range of residential and day services for young adults The difference we make The impact of the Foundation's services comes not just in how many children and young people use our services but in the difference we make to their lives and that of their families. Chailey Heritage Pathways pursuing potential a community-based service offering the expertise of our staff to children and young adults in their own home and out in the community. Chailey Heritage Foundation 5 Meet Henry "Henry has grown in confidence so much over the past 18 months. He is happy in his familiar environment and is increasingly able to take risks in his learning. His pleasure and sense of pride when he achieves something new is lovely to see. As his self-confidence grows, he is increasingly able to see things as exciting rather than scary, and is able to experience a whole range of different activities." Helen, Henry's teacher 8 year old Henry is a cheerful and inquisitive little boy despite his complex health needs. Henry has cerebral palsy, hydrocephalus, epilepsy and is registered partially blind and needs lots of support every day. Life was very different for Henry when he first arrived at School six years ago. He would become very stressed and emotional when leaving his classroom and spent much of his time at School crying; going anywhere was very difficult for him and he would want to go back to his safe zone the classroom. With careful, patient support from the School's teaching staff, visits from the animals to his classroom and time spent on our Patchwork Farm, Henry is beginning to understand that he will be safe going into new situations. He's grown in confidence and really enjoys driving himself around in his wheelchair. He loves using the swipe cards and buttons to open the doors and knows exactly where he is going anywhere on the site. He is gaining confidence working with different people and is developing friendships with his peers. He has an amazing sense of humour and loves playing predictable games, which he finds very funny! "Henry has been at Chailey Heritage for six years and the progress he has made, especially in terms of regulating his emotions and being able to cope in new situations, is absolutely fantastic. Henry is so much more confident and independent and the team at School have worked hard to enable this through their positive interactions and patience when encouraging him to take part in new activities. From visits to the Cafe on site, driving independently to the farm, taking part in so many wonderful physical activities like swimming and horse riding, and being able to perform on stage in the Dream Centre, Henry has become far more confident and independent. Henry adores interacting with people and the staff truly embrace this. He has such a cheeky sense of humour which has certainly developed through all the care and support he gets at School. We are very proud of Henry and the progress he has made." Caroline, Henry's Mum 6 Annual Report and Accounts 2018/19 Welcome from Chair of Trustees and Chief Executive "We watched the Dream Centre grow week by week right in the centre of our campus, a very visible illustration of investment in our children and young people." Together, with our Chief Executive, Helen Hewitt, I am delighted to present this year's Annual Report; it describes the affairs of Chailey Heritage Foundation, our performance against the three year plan 201720, together with the financial statements and the Auditor's report for the year ended 31 August 2019. Since 2014, Chailey Heritage Foundation has been working towards five strategic goals: * To help more children with complex neurodisabilities and their families * To be first choice for parents, carers and commissioners * To have the capacity to develop * To be financially autonomous * To be recognised locally, nationally and internationally for our innovative work These have been the `golden threads' running through our three year plans since 2014. At the end of 2018-19, we are more than half way through our 10 year strategy. The Foundation has made significant progress towards these goals. The spotlight this year is on our newer community based services and how they have transformed the lives of the individuals and families who use them. We would like to introduce you to Thomas on page 21. 2018-19 has been a very exciting year. We watched the Dream Centre grow week by week right in the centre of our campus, a very visible illustration of investment in our children and young people. They now have a fabulous sports, performing arts and social centre. The wonderful generosity of donors enabled the Foundation to complete the Dream Centre capital appeal. Raising more than our 3.1m target in less than 3 years gave the Foundation Mark Creamer Chair of Trustees Helen Hewitt Chief Executive the freedom to include a unique and highly innovative immersive environment and cuttingedge media installation. The capacity to turn dreams into reality came through the vision and expertise of our corporate partners - local organisations with national and international reputations. Investment is not always financial. In 201819, we were particularly proud of the work we completed with staff and other stakeholders on Values. Drawing from examples of `Chailey Heritage at its best', we focused in on what really defined `the Chailey Heritage way'. It was very powerful to hear from staff and families about what they saw, day-to-day, in our services. We hope these Values will inspire current and new staff to live these values in their work, investing in the children and young people they support (see page 10). Chailey Heritage Foundation is fortunate to have buildings and equipment that give young people some of the best opportunities to pursue their potential. Without the expertise and dedication of staff, even state-of-the-art resources can fail to make a difference. Our staff and volunteers are the ones who make a real difference - hour by hour, day by day - to the daily lives of the young people and their families. We are proud of what they do and how they do it. We want to say a huge "thank you" to all our staff and volunteers, to our Governors and Trustees and to everyone who supported Chailey Heritage Foundation during the year. Chailey Heritage Foundation Trustees' Report on Strategy and Operations Achievements and performance 2017-20 Strategic Plan - Exceeding Expectations 2018-19 was the second year of the three year strategic plan (2017-20) based on four key themes - to invest, to grow, to build partnerships and to influence. Share our expertise in educating and caring for young people with complex disabilities, using the School's reputation as an innovator in curriculum and assessment, communication and physical mobility Raise awareness of disability in the wider community through our To sustain services and our work with the local the Charity, securing a sound community and strong organisation and financial base Work with other charities to influence policy and increase understanding of disability nationally Ensure our services and the outcomes for our young people are outstanding Invest in new facilities and technology for the young people Invest in training for our staff so they have the high skills they need to work with our very complex young people, feel valued and well supported along with opportunities for career development Develop our expertise to further meet the needs of the children and young people with the most complex physical and neurological disabilities Increase the number of children and young people and families we help Expand our community services for both children and young adults Increase fundraising income to support the new strategy for 2017-20 We will continue to Nurture the relationships with our current partners, especially our NHS partner, Chailey Clinical Services Develop new partnerships with charities and businesses Work collaboratively with local and national charities Open up our resources to local partners and share our expertise with similar organisations especially schools Work in partnership with families and involve families in the development of our services by responding to the needs they identify 7 8 Annual Report and Accounts 2018/19 Exceeding Expectations - What we achieved against our four key themes Investing in the children and young people After Ofsted's inspection in May 2019, we are immensely proud that the School continues to be Outstanding for the fourth time running. Praising the strong senior leadership team and staff, the report says of the Headteacher, Simon Yates: "You lead an inspiring school that consistently develops and implements provision to meet pupils' special educational needs. You are well supported by a strong senior leadership team and staff that are dedicated and skilful. Together, you put into practice every day a passionate belief that all pupils should access rich and meaningful opportunities at school, no matter how complex their learning and health needs." Ofsted, May 2019 The School's innovative Chailey Heritage Individual Learner Development (CHILD) curriculum was also praised by parents as they told inspectors that "many children would be hospitalised, and unable to attend school at all, without Chailey Heritage's multidisciplinary teaching and clinical expertise" and they also said "because our children don't fit into a box, the School makes the box for the child." Ofsted, May 2019 Activities out of the classroom are an important part of the pupils' curriculum. Patchwork Farm is going from strength to strength and, this year, to the delight of the young people, two donkeys, George and Joe, arrived. We also created a new duck pond with the support of Chandlers Building Supplies and built an area for the tortoises. We were very fortunate that our new Patchwork Farm Manager, Lesley Barcock, who came to us in autumn 2018, has experience teaching young people with sensory needs. If the children and young people cannot make it to the farm, Lesley brings the animals to the classroom! We have witnessed great successes to this new initiative with pupils who were not keen to go outside, happily agreeing to go to the Farm to see the animals. Sport Physical activity is massively beneficial to most of the children and young adults in our services. The Dream Centre was designed to maximise the opportunities for the young people with complex disabilities to participate in sport. In 2018-19, our resident engineer tested prototypes to make disability sports such as Table Cricket and Boccia more accessible to young people with complex and severe disabilities. The young people have really enjoyed the independence and control which these new systems have given them and the Sports Co-ordinator is working with National Governing Bodies to explore how adaptions to the rules of competitive sport might enable people with more complex needs to participate. Our links with Albion in the Community (the official charity of Brighton & Hove Albion Football Club) continued and have been extended to other local bodies such as Active Sussex and Sussex County Cricket Club to explore the use of the Dream Centre for competitions and league games. "After Ofsted's inspection in May 2019, we are immensely proud that the School continues to be Outstanding for the fourth time running." Chailey Heritage Foundation 9 The inaugural Chailey Games event was hosted in the Dream Centre in August, a few months before its official opening. With Paralympic-like scoring, the games were a roaring success with 48 competitors with a range of disabilities taking part across five sports. Competitors and spectators were joined by Sussex based Para-athlete, Lizzie Williams, who held a Question and Answer session and presented medals. Working with parents and families is always high on our agenda. This year, current and prospective parents have been able to seek support from IPSEA (Independent Provider of Special Education Advice) through a dedicated help line and support to prepare and present cases at Tribunal. This pilot was kindly funded through charitable resources including the Friends of Chailey Heritage. An evaluation of the pilot demonstrated how much parents had valued the service from IPSEA. Parents also spoke of the immense relief of not having to take responsibility alone and they said that knowledge of the law and legal precedents provided through IPSEA, helped make a stronger case for their child. Parents also found that Local Authorities took far more notice of the IPSEA lawyers; as a result, several cases were settled in the parent's favour before the hearing. The help line was deemed less useful and will not be recommissioned. Charitable funding has been secured for the IPSEA service for 2019-20. Funding for the Eye Gaze Project was completed by the fundraising team. There is now at least one eye gaze in each class, in specialist rooms in the School and in each of the bungalows. Staff in residences and School have developed the skills to set up the eye gaze, calibrating it for each individual. Eye gaze enables young people to use their eyes as a mouse cursor for the computer or tablet for communication above all but also for online learning resources, games, music as well as environmental controls or equipment. Eye gaze noticeably increases the engagement of young people, enabling greater independence, decision making and control in their lives. Meet Olivia Olivia is 18 years old and lives with us on Orchard bungalow. When Olivia first used eye gaze, she watched a pre-made grid of four videos which gave visual and audio feedback when she moved her eyes over each one; she showed particular engagement in a racing car. Since that first session, Olivia now demonstrates good control, precision and intent, using target games with audio. At her last session, she engaged with the Fruit Punch game for 45 minutes, stopping briefly and then continued with the Custard Pie Splat game for another 20 minutes. It has been a joy to see the staff celebrate Olivia's achievements and it has given them the confidence to try eye gaze with other young people on the bungalow. "We have been overjoyed and amazed to watch Liv's growing confidence since joining Orchard bungalow. We have tried to engage Liv in different communication systems over the years but her epilepsy is so severe, we have had little success. We are literally astounded at Liv's progress with eye gaze, a way in to her mind that we haven't had before. We are hugely grateful to the staff who have shown such dedication and perseverance. It also shows a commitment to lifelong learning, however profound the communication problem. We can't wait to see where Liv takes eye gaze next!" Amanda, Olivia's Mum 10 Annual Report and Accounts 2018/19 Plans to create a dedicated music studio for the young people are well underway and construction work will begin in the summer holidays of 2020. This project is being supported by a mini fundraising appeal, which is near completion. The Activity Co-ordinators for the residences help work with the residents to find out what they would like to do in their leisure time. In Futures, the young people are keen to get out and about and get involved in new experiences. In 2018-19, the Futures' residents went to the Proms in the Royal Albert Hall for the first time and took part in an innovative project in Brighton, leading to a three day public arts exhibition. One of their highlights was experiencing power boating with Wet Wheels Solent, who offer fully accessible powerboat trips. In summer 2019, a new co-ordinator for the younger children in Camelia, Chestnut and Brambles bungalows was appointed. He quickly got to work planning activities that would bring everyone together and offer some excitement for the young people. Each young person now has an Achievements & Experience log to record the exciting things they do, complete with photos. The Dream Centre is proving a great space for evening and weekend activities organised by the co-ordinators - parties, discos and a regular Friday film night is firmly on the schedule. Investing in staff and volunteers During this year, we undertook a project to review and refresh our Values with staff. Working with a specialist consultant, staff were asked for examples of `Chailey Heritage at its best'. After further work with staff, Governors and Trustees, our new Values were agreed and have been shared with staff through team meetings with a short film: www.youtube.com/watch?v=WRll1a4yS0A BELONGING we are a community with a shared purpose. Everyone is accepted, everyone matters. COMMITMENT every day we strive to make a positive difference for the children, young people and their families. AMBITION CELEBRATION we have high expectations. `OK' is never good enough. we celebrate what we achieve together. The current Staff Room will need to move to make way for the new music studio and a cross-service working group identified the key requirements for a new Staff Room. The plans have been developed around these ideas and work will begin in April 2020 to create a relaxing environment for all staff, as well as a work area. Chailey Heritage Foundation 11 Our Headteacher developed a comprehensive standards framework for assistants in the School. In recognition of the skills required, our teaching assistants are now known as Education Assistants and will complete an accreditation system which will allow them to become Special Education Assistants. This new system was in place for the start of the new academic year 2019-20. "You and your senior leaders value having a highly trained workforce by supporting staff with opportunities for coaching, further accreditation and research study. A powerful example of your staff's developmental work has been with key stage 4 and post-16 students. Ground-breaking materials have been created that enable them to understand their bodily changes, to help prepare them for adulthood." Ofsted, May 2019 Investing in our Estate The biggest investment in our estate this year has been the completion of the Dream Centre in August 2019. We are very proud that less than three years after launching an appeal to raise 3.1m, we have delivered a ground-breaking building, which is already transforming the lives of the young people using our services. The multi-purpose space provides the young people with an indoor sports arena, rebound therapy, a stage for drama productions and a very popular immersive zone. An Education Assistant from the School has been seconded to work on the content for the immersive zone to make the most of this wonderful resource for the young people. We will continue to carefully monitor the use of the Dream Centre in the coming year. "The biggest investment in our estate this year has been the completion of the Dream Centre in August 2019. We are very proud that less than three years after launching an appeal to raise 3.1m, we have delivered a groundbreaking building, which is already transforming the lives of the young people using our services." A new garden for our Futures' residents was completed in summer of 2019. This garden is fully accessible for the young adults and will allow them to be involved in growing plants and vegetables, as well as playing outdoor games. This garden was supported by one large donation and other smaller amounts from fundraising. Fundraising is continuing to raise funds for a new wheelchair accessible swing. It was too late to complete all the planting this year and our new Lead Gardening Volunteer is planning planting ready for the summer 2020. Negotiations with our landlords, Sussex Community NHS Foundation Trust, to extend the head lease are nearing completion with the solicitors currently finalising the terms. Adapted mini buses and smaller vehicles are essential, enabling anything from shopping trips to community events, theme parks, festivals and performances. We had an ageing fleet of vehicles and a need for more to match the increasing number of pupils and residents. After reviewing the vehicle fleet, an eight year cycle of vehicle replacement was agreed, using a mixture of leased vehicles and vehicles purchased using matched funds from charitable trusts such as the Lord's Taverners with money raised by the Fundraising Team. Leasing will ensure that sufficient vehicles are available for the young people going off site for activities as well as reducing repair costs. In 2018-19, the fundraising team raised 27,000 for the smaller wheelchair-accessible vehicle as well as 40,000 for a new minibus. 12 Annual Report and Accounts 2018/19 School The School is in demand and continues to grow with 98 pupils at the end of the summer term 2019, the highest number since before 2002. Referrals have remained robust; there have been a few tribunals but most placements have been requested by Local Authorities identifying Chailey Heritage School as the best place to meet each young person's complex learning and health needs. Children's Residential Demand for residential places has also remained high with an increasing number of 52 week care and education placements requested from London Boroughs and beyond. Our ability to grow the residential service has been constrained by the challenge of recruiting and training sufficient staff and NHS nurses to meet the increasing complex health and support needs of the new pupils. We also have to bear in mind the importance of matching young people with similar abilities and needs before offering placements so occupancy figures for 2019-20 are likely to be lower. 98 Number of pupils in the School Futures Accommodation 2018-19 saw some of the older residents move on to new placements. The problems with identifying a residential option suitable for each person's needs was particularly difficult and securing funding or engaging new staff often created blocks in the process. Not everyone managed to complete their move by the start of our new financial year but all will do so early in the New Year 2020. Fortunately, there have been young people ready to take their places and Futures continues to be in demand. 6833 Number of children in Chailey Heritage Residential - bed nights Our community services are in the `spotlight' on page 19 12 9 5316 The residences have a mixture of individual and shared rooms. Shared rooms work well for some families, especially if there are siblings or twins. However, in 2019, we started to plan how to meet Ofsted's requirements for single rooms. Initial designs are being considered and an option appraisal is underway with the aim of agreeing firm plans and submitting these for planning before the end of the academic year. 3 6 Number of hours delivered by Chailey Heritage Pathways Chailey Heritage Foundation 13 Meet Toby "The staff and the young people in Willows bungalow all miss Toby but we are a transition service and, seeing the success of Toby's move to a new home, makes us very proud of the work we do here for young adults." Tracey, Willows House Manager Toby joined Chailey Heritage as a pupil and fortnightly boarder 16 years ago. He is now 27 and has blossomed into a confident young man, ready to take the next step and make the transition to a new home in Devon. Toby's complex medical needs have certainly never got in the way of him enjoying life to the full. The special support he received from staff at Chailey Heritage to use a Voice Output Communication Aid has allowed him to communicate and make his own choices. Going to College was a massive achievement for Toby, but one of his highlights was meeting HRH The Duchess of Cornwall on her visit to Chailey Heritage and showing her the replica of Windsor Castle he made during his art sessions in the Life Skills Centre. Leaving Chailey Heritage was a big step for Toby and his Mum but with lots of support from our staff, who accompanied Toby on day visits and a trial overnight stay at his new home, Toby is now settled and enjoying being able to access town with his carers straight from his front door! "I am super proud of the confident happy young man that Toby has become. I am humbled by the passion and dedication of the staff at Chailey Heritage and especially those support workers in Willows bungalow. I am just so grateful to the team in their service to Toby. He has benefited so much from the specialisms that Chailey has to offer. He has been supported through many challenges both physically with health issues and emotionally. Toby has enjoyed many social activities and one of the highlights was meeting HRH The Duchess of Cornwall whilst visiting the Dream Centre! He has been a loyal fan of the Royal family for as long as I can remember so he was so delighted to meet with the Duchess and show off his creation of Windsor Castle! Toby continues to be full of the joys and enthusiasm at his new placement/home in Devon. He continues to have the therapy support he needs and also enjoys a lovely stimulating environment. I am really pleased and very grateful for such a positive outcome. Thank you everyone at Chailey Heritage. We will miss you!" Sophia, Toby's Mum 14 Annual Report and Accounts 2018/19 Chailey Clinical Services A distinctive feature of the Charity is the unique partnership with our NHS colleagues on site, Chailey Clinical Services. This partnership enables the young people to receive wraparound care from a team of doctors, therapists and other clinicians 24 hours a day. Our parents - working closely with our families is one of our most important partnerships. We have delivered on parents' requests for homecooked food in School and on the bungalows and provided support via IPSEA. As well as information on the Charity's website, parents also receive a dedicated newsletter, `Family Grapevine', termly keeping them up-to-date with all that is going on within the Foundation. We worked in collaboration with parents to produce our first documentary-style film, Changing Lives, which tells the powerful stories of four of our families. We are very grateful to them for their help with this project, which really shows the difference the Charity makes to the lives of the young people using our services and their families. www.chf.org.uk/changing-lives.html Active Sussex and Sussex County Cricket Our School Sports Co-ordinator, Al Carter, has been working with Active Sussex not only to increase participation in sport at Chailey Heritage but to increase access and participation in sport for young people from other special schools. It might seem counter intuitive that participation in sport is high on the agenda in a school for children with physical disabilities. It takes both vision and ingenuity to turn this aspiration into reality, for example, the adapted Table Cricket equipment built by our own engineer Dr Martin Langner allows those with the most complex needs to operate batting and bowling devices independently. Sussex Cricket Foundation has been delivering weekly table cricket sessions at our School for over two years and, during 2018-19, the Sussex Cricket's Disability Cricket Manager worked with Chailey Heritage to develop new participation with support from Active Sussex and the Lord's Taverners charity; in Autumn 2019, this culminated in the launch of a new Table Cricket league for students with more complex disabilities. For 2019-20, the Dream Centre will host a series of matches with teams from Sussex Cricket's network of special educational needs school and colleges competing in the league, using the specially adapted equipment developed by the Chailey Heritage engineer. Sussex Cricket's disability cricket manager said: "We're thrilled to be launching this new competition with our friends at Chailey Heritage. I remember our conversation 12 months ago when we discussed how amazing it would be to get young people with the most complex disabilities playing table cricket matches independently. It is fantastic that with the support of Lord's Taverners, this collaboration is able to bring young people together from different schools and colleges to access competitive sport in such a spectacular environment." Aroop Tanna, Sussex Cricket's Disability Cricket Manager Corporate Partnerships We also have a number of partnerships specifically related to our fundraising events which are mentioned on pages 34. Chailey Heritage Foundation 15 We are very fortunate to have a specialist teacher, Helen Dunman, whose innovative work with young people with complex physical and communication needs around relationships and sex education (R.S.E.) has been recognised nationally and she has been invited to present at a number of conferences and workshops. A presentation to teachers and other professionals in Barnet was very successful with participants' feedback giving her an average of 9.5/10, which is very unusual. Leading on from this, the School has been successful in its bid to join the incubator project organised by the National Association of Non-Maintained Special Schools (NASS) in conjunction with support from the Young Foundation. Being part of this incubator project will enable us to scale up Helen's work on SRE to make it valuable for mainstream and other special schools. "Leading on from this, the School has been successful in its bid to join the incubator project organised by the National Association of NonMaintained Special Schools (NASS) in conjunction with support from the Young Foundation." Our Headteacher, Simon Yates, and his colleagues have built up quite a following for the Chailey Heritage Individual Learner Driven (CHILD) Curriculum through speaking at conferences, and on online special education forums. Simon has been a key-note speaker twice alongside Diane Rochford and he has also spoken on the Engagement Profile & Scale. The Department for Education `lead on assessment' visited the School to discuss this with Simon. As an Ofsted inspector, Simon has also contributed to the consultations with senior HMI on the new Ofsted inspection framework, in use from September 2019, and lobbied for more extensive training for inspectors new to inspecting special schools. 1 invested = 1.68 of social value Our Social Return on Investment Study was completed in autumn 2018. This Study, undertaken by specialists in this field, Moore Kingston Smith LLP, revealed that for children 3-19 years of age using our services, the Charity delivers a promising 1.68 of social value for every 1 invested. The modelling of social value is based on information provided by the Charity and data from primary stakeholder focus groups and interviews. Our Chief Executive continues to attend the Special Interest Group for Commissioning and Contracting organised by the Department for Education (DfE). It is an opportunity to hear and influence a key official in the DfE responsible for policy development. As a supporter of the Disabled Children's Partnership (DCP) https:// disabledchildrenspartnership.org.uk/, the Charity was involved in their second campaign #giveback, supported by The Sun newspaper. This campaign shows the struggles many families with a disabled child face as a result of a lack of funding and resulted in over 20,000 people signing an open letter to The Chancellor. Summary This is the second year of the current strategic plan (2017-20) and we are making strong progress so far against our current and long-term strategic goals. During the final year, 2019-20, we will begin planning for the final four years of the 10 year plan, taking the Charity to 2024. 16 Annual Report and Accounts 2018/19 2018-19 highlights & achievements timeline Volunteers from Nationwide help on site Brighton Family Panto supports the Charity Joyful harmonica ensemble group from Korea pay a visit The young people raise over 1,500 for BBC Children in Need Sussex Gin Fest supports the Charity School boccia team compete with other schools Brighton half marathon team September October November December January February 2018 2018 2018 2018 2019 2019 Teachers attend Communication Matters Conference in Leeds Bo Peep Hill Climb raises 5,357 for our Therapeutic Riding Bill Shelford retires and Mark Creamer takes over as new Chair of Trustees St Martin's holds harvest festival service Pendulum art session in Life Skills Centre Table cricket competition Chailey Heritage Foundation 17 Dream Centre `topping out' Sussex Cricket Discoverability Day Easter eggs from Hurst students Focus 10K run at Borde Hill Inaugural Chailey Games with 48 participants Life Skills Centre Gym receives IFI accreditation - excellence Chailey Heritage School is `Outstanding' for 4th time in a row March April May June July August 2019 2019 2019 2019 2019 2019 Ollie, one of our teachers, completes Brighton marathon raising over 1,000 Our residential pupils enjoy a holiday at Centre Parcs Red lamps, school band, play at Fringe Festival Construction of Dream Centre completed Tortoises arrive on Patchwork Farm Sussex parallel games Hattons of Tunbridge Wells raises 17,831 at charity golf day Local mouth painting artist inspires creativity 18 Annual Report and Accounts 2018/19 Meet Harry "Over the past year, Harry has been supported to become the best version of himself and therefore gets the most out of his day. He dances wildly, sings freely, has built friendships and developed his ability to communicate and make choices based on what he enjoys. Harry fills a room with his uninhibited joy." Cloe, Team Leader 20 year old Harry has been using our Hub and Pathways services for over a year. Harry's greatest loves are music, dance and drama. He really enjoys sensory dance and we have arranged for Harry to have weekly one-to-one music therapy sessions so he can fully express himself by singing at full volume! Taking part in drama sessions has allowed Harry to develop his social interaction and concentration and he is now comfortably able to stay for the whole session. In the past, due to his complex behavioural needs, it hasn't been easy for Harry's parents to find a day service where he is settled and happy. He needs space to move around as well as somewhere quieter to relax. He also needs a team of skilled staff to meet his needs and at the Hub, we are able to give him two-to-one support. Using our Pathways service to bring Harry to the Hub from his home has enabled the whole family more flexibility and time for themselves, knowing Harry is being well supported. When asked how he felt about coming to the Hub, Harry replied "Harry happy!" with great joy and enthusiasm. Chailey Heritage Foundation 19 2018-19 Spotlight on our community services Our three community services are a vibrant and person-centred community resource. Located at the Charity's site, in the community and in people's own homes, they provide opportunities for growth, self-direction and development of independence at every opportunity. Our community team believes strongly in support being all about the person, and what they can achieve for themselves and how they can learn as much as possible about what the world has to offer and how they can make it work for them. We are passionate about continually ensuring people are a genuine part of their own community. * The Life Skills Centre is a creative sessional centre which enables development of independence in a group or 1:1, engagement via social enterprise, achievement of education via ASDAN and goal-based programmes. * The Hub is a bespoke all-day service designed to develop people's sense of self and experiences of the world around them. * Chailey Heritage Pathways is registered with the Care Quality Commission as a Domiciliary Care Service that provides a range of support hours for children, young people and adults with complex physical disabilities and associated health needs. Its purpose is to help people live life comfortably, safely and securely in order to get the best out of what the world can offer. "People were supported by care workers who were highly motivated, kind, compassionate and caring and enjoyed their work. Care workers were adept at maintaining the dignity of people they supported with personal care and accessing other professionals when necessary." Care Quality Commission report for Pathways, published September 2017 20 Annual Report and Accounts 2018/19 Positive outcomes for the people we support Our Life Skills Centre continued to grow in terms of attendance, reach and impact. We delivered 8,897 sessions during 2018-19, and this year we have seen a 19% increase in sessions attended by people who are living in the community. Our sessions have a flexible and person-centred approach which has a substantive and measurable impact on the people attending them. Over the last year, we reviewed and implemented new sessions on the basis of feedback from people who access them. This has included Rebound Therapy and Table Cricket. Both sessions have a defined benefit to people physically. Table Cricket is a great social opportunity for people to get together, whilst Rebound Therapy provides a highly personalised therapeutic programme. Although the number of hours delivered by Pathways have increased, the service has not taken the trajectory planned, not because of lack of demand but the difficulty in recruiting staff able to work alone in the family home or out in the community, especially on early morning shifts. For 2019-20, the new Head of Community Operations is moving away from smaller "Our Life Skills Centre continued to grow in terms support packages to larger ones where it of attendance, reach and impact. We delivered 8,897 will be easier to recruit and manage teams sessions during 2018-19, and this year we have seen working with one family 24/7. a 19% increase in sessions attended by people who are living in the community." Chailey Heritage Foundation 21 Meet Thomas "Coming to the Life Skills Centre offers Tom the opportunity to participate and interact with others which is so important when there's so little to do in the Eastbourne area. Tom really looks forward to coming." Peter, Tom's Dad 30 year old Thomas has been accessing the Life Skills Centre since the summer of 2019. Over that time, Thomas has developed a passion for gym, cooking and art. He really enjoys building projects in art. When he first arrived, he came with his own materials and wanted to build a castle to take home. Our Arts Co-ordinator worked in a personalised way to make this happen and structured this in the form of a project. Initially, only wanting to come once, Thomas now accesses art fortnightly with support from his Dad. In the past, due to his anxiety, Thomas has struggled with transitions and at first he would not leave the car to come into the Life Skills Centre. The team worked to meet him at the car, building a relationship and encouraging him to access sessions and do things he really enjoyed. As a result, he now finds this much easier and will also stay for lunch. We really do believe in encouraging everyone's independence. Thomas now chooses his own schedules (requesting these himself via email and phone). Thomas was a bronze medallist in our inaugural Chailey Games in the summer. His Dad regularly takes photos of Thomas's achievements in sessions, and we often get great feedback. Thomas loves to see himself up on our website as a shining example of what can be achieved coming to the Life Skills Centre. 22 Annual Report and Accounts 2018/19 Empowering People Within the Hub, it was a busy year ensuring people we supported were at the heart of our decision making in terms of sessional activities and how we can support people's understanding of the world around them. We have been working with people accessing the service on what's important to them, and relaunched a new sessional programme which was flexible and tailored to their needs and interests. 1832 Number of sessions provided in Futures Hub Commitment to Staff Development We believe in developing our staff. They are our greatest asset, and truly change people's lives in a positive and meaningful way. This year, we reviewed our management structure and embarked on an ambitious development programme with our managers. This will enable them to be fully equipped to meet the needs of the people using our services now and in the future. We were delighted to welcome a fitness apprentice within the Life Skills Centre for the first time in 2017. Between then and now, Charles has developed into an accomplished session leader and Rebound Therapist. As a result of his hard work in broadening our offer of services to people, we have now offered him a permanent role as a Fitness Assistant. Looking ahead to the future A new Head of Community Operations, Rob Hambrook, started in post in June 2019. Alongside our new Director of Social Care, Jackie Hall, they have been formulating a strategy for all our community services that takes them on a continued journey of growth and developing expertise in supporting people within their own communities. "We believe in developing our staff. They are our greatest asset, and truly change people's lives in a positive and meaningful way." Chailey Heritage Foundation 23 24 Annual Report and Accounts 2018/19 Our people Chailey Heritage Foundation 25 To achieve our aim of providing a stimulating and inclusive environment where all young people are given every opportunity to fulfil their potential, we have a dedicated workforce of 430 employees, 98 bank workers and 60 volunteers (on average during the year) who are committed to providing the specialist care and education which the young people require. We have an active apprenticeship programme giving young people the opportunity to develop their skills whilst working. We are very pleased that we were able to offer permanent employment to those completing their apprenticeships in 2018-19. One has joined the Aquatics Team and our Fitness Apprentice is now a Fitness Assistant in the Life Skills Centre Gym and developing new group sessions in the Dream Centre. The apprenticeship programme is continuing in 2019-20 with the recruitment of a Digital Marketing Apprentice and a new IT Apprentice. With the increased complexity of the new children and adults entering our services, we continue to need more staff. Recruiting additional staff is a high priority and, in addition to our online recruitment, over the past year, we have held `pop up' recruitment events as well as several on-site recruitment sessions to attract new staff, enabling them to meet members of the team and active apprenticeship programme giving have a tour of the facilities. "We have an young people the opportunity to develop their skills whilst working." We have recently increased our offer to staff with a new benefits package launched in January 2019. The `My Benefits' package was put together by the HR Department after several months of research and is designed to offer something for everyone. Included in the package is our generous pension scheme, access to a range of leisure discounts including gym discounts, discounts on holidays, discounts on cinema tickets and restaurants, our Cycle 2 Work scheme and Healthcare Cash Plan. We are constantly reviewing this benefits package to ensure it remains attractive to our staff. Staff numbers 2019 2018 80% 2017 2016 80% of our expenditure is for staff 2015 2014 430 323 428 326 393 303 338 255 323 230 308 216 Heads Full-time equivalent 26 Annual Report and Accounts 2018/19 Numbers of pupils with 1:1 support 88 - 1 90 - 7 90 - 11 83 - 12 72 - 17 69 - 19 Pupils 68 - 24 71 - 34 69 - 41 69 - 43 76 - 56 80 - 64 1:1 staff 90 - 83 94 - 82 98 - 94 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Staff turnover continued to be low in 2018-19 and in our social care services is significantly lower than the industry average. Over 30% of our staff have been with us for more than five years. We value the expertise and commitment of our staff and the Appreciation Awards scheme recognises the dedication of those employees who reach five yearly milestones throughout their careers with us. During the year 2018-2019, 33 awards were made for staff who have reached five, 10 and 15 year anniversaries with Chailey Heritage Foundation. Staff well-being is a high priority for us. Working in any of our services can be intense and it is important to help staff take care of themselves and others. During 2019, we facilitated some well-being sessions for staff to help them cope with feelings of sadness or anxiety during difficult times in their lives at work or at home. These were very well received by those who attended, with feedback including "the sessions acted as a good reminder to take time for oneself", "I felt very positive after the workshop"; one even asked whether the presenter could come back every week! We will be looking to provide more of these sessions, on different topics, over the next year. "Over 30% of our staff have been with us for more than five years." In September 2018, Trustees and Governors agreed a 1.5% across the board salary increase for all staff. Volunteers Responsibility for recruitment of volunteers moved to the HR team in 2018, with line management being provided by individual department managers supported by Volunteer Engagement Leads (VELs). Each volunteer now has a role description and the HR team works with services to recruit to specific volunteer roles. Our number of regular volunteers remained stable during 2018-19. 18 new volunteers joined the following teams: 18 Number of new volunteers Riding 9 IT 1 Life Skills Centre (office) 1 PAT Dogs (School) Fundraising Patchwork Farm 3 1 3 Chailey Heritage Foundation 27 At the end of August 2019, there were 66 regular volunteers across the Foundation plus a large number of occasional fundraising volunteers who help with collections at events. Hippotherapy volunteers are essential to this unique service and continue to be most numerous of our volunteers. We have seen 16 volunteers leave us during the same period of time. Overall, the transition in arrangements and management for volunteers has worked well and feedback from volunteers and their managers is generally positive. We are very grateful to all our volunteers for the time they give and we look forward to celebrating their achievements and service during the forthcoming year. Gender pay gap Gender Pay Data (Mean/Median) Difference 2.7% Difference 2.5% 11.73 11.41 10.14 9.88 Mean Median We are required by law to publish an annual gender pay gap report. The report is based on a snapshot date of 5 April each year; in our last report we included details from the data as at 5 April 2018. These figures showed that the mean salary figure for males had decreased (from 12.55 to 11.73 per hour), whilst the mean figure for females had increased (from 11.10 to 11.41 per hour). This reduced the percentage difference from 13% to 2.66% and was mainly been brought about by the increase in men recruited for lower paid roles (see "Understanding Our Gender Pay Gap" on our website). Conversely, the median figures for men increased since our 2017 report (from 10.04 to 10.14) and decreased for women (from 9.96 to 9.88). The increase in the median figure for men can be explained by our annual salary review and the decrease in the median for women was due to the increased number of staff across the Foundation (465 as opposed to 422, 89.4% of whom are female). The percentage difference therefore increased slightly from 0.8% to 2.52%. 28 Annual Report and Accounts 2018/19 The figures for the snapshot date of 5 April 2019 have not yet been calculated as they do not need to be reported until March 2020. In the meantime, we are promoting our family-friendly policies on our website and analysing exit interview data to better understand why employees are choosing to leave and, where possible, putting in appropriate measures to address those reasons. Equal opportunities As an organisation, Chailey Heritage Foundation is committed to promoting diversity and inclusion for all its young people and staff. We welcome applications for employment from all sections of the community. We believe in appointing the best candidate into our roles and have a clear policy of paying employees equally for the same or equivalent work, regardless of their gender or other factors covered by the Equality Act 2010. As such, we carry out pay and benefits audits at regular intervals and evaluate job roles and pay grades as necessary to ensure a fair structure. We are committed to ensuring that there is no gender bias when setting salaries. During 2018-19, we moved up the scale from being `Disability Confident' to being a `Disability Confident Employer', ensuring that disabled people and those with longterm health conditions have the opportunities to fulfil their potential and realise their aspirations. Over the next two years, we will work to reach the top tier of the scheme, `Disability Confident Leader'. We believe in appointing the best candidate into our roles and have a clear policy of paying employees equally for the same or equivalent work, regardless of their gender or other factors covered by the Equality Act 2010. Chailey Heritage Foundation 29 30 Annual Report and Accounts 2018/19 You helped us make Dreams come true! Chailey Heritage Foundation 31 This year saw the conclusion of the Dream Centre project, a three year appeal to convert and extend our old Assembly Hall into a cutting-edge, multi-purpose sports, drama and activity centre for the children and young people we serve. Thanks to the amazing support of many trusts, foundations, livery companies, local businesses and members of the local community, we were able to start building the new centre in April 2018. We would also like to thank two locally-based companies, Teecom and 7th Sense, who kindly donated their services to design and procure a completely bespoke audio/visual system and provided support to ensure that we make the most of the technical aspects of the Dream Centre. Throughout the remainder of 2018, we continued to raise the balance needed to equip the new centre with the specialist audio visual equipment and facilities needed. The Dream Centre was ready and open for the young people to use in August 2019, when we hosted our first Chailey Games, with 48 competitors taking part across five sports. A Royal opening In October 2019, we were delighted to welcome HRH The Duchess of Cornwall to officially open the Dream Centre, which gave us the opportunity to showcase this wonderful resource to donors and supporters. The event was very well supported with more than 100 guests attending to help us celebrate. Table cricket was on show in the main hall and guests were treated to a performance by the young people of `Cirque du Chailey' on the new stage, where the amazing audio visual technology was in full swing. Later, guests were able to visit our Immersive Experience space and see the young people using the trampoline built into the stage for Rebound Therapy. We would like to thank most sincerely all those who have supported us in this Appeal. The following have asked that we make particular mention of their support in this Report: Bernard Sunley Foundation Bradbury Foundation February Foundation Garfield Weston Foundation Mark Benevolent Fund Rockinghorse Sport England Community Asset Fund St James's Place Charitable Foundation The Foyle Foundation Masonic Charitable Foundation Peter Harrison Foundation The Wolfson Foundation 32 Annual Report and Accounts 2018/19 Other projects During the financial year, we raised a further 419,369 for specialist equipment and facilities needed for our School, residences and our Life Skills Centre and Hub. We completed our fundraising for the Eye Gaze project to install eye gaze technology in all our departments and in our residential bungalows. Voluntary donations completely funded our Therapeutic riding sessions, enabling 37 children to ride each week; funds were raised to support Aquamovers+, a 0-3 parent and child support service; and we were able to fund a brand new Trike Pool to ensure all our young people have access to a trike which is hugely beneficial to their physical health and wellbeing. This year, voluntary donations also helped to fund: * A new wheelchair accessible vehicle * A new garden for our residential young adults * A large multi-person minibus Patchwork Farm has a new tortoise enclosure, feed store trench and a new pond for * our ducks * Educational workshops *Outings * Switch activated toys and much, much more. The following funders have asked us to mention their support for other projects: * The DM Thomas Foundation for Young People * Downlands Educational Trust Chailey Heritage Foundation 33 34 Annual Report and Accounts 2018/19 The fundraising highlights As a charity, we rely on the generosity of local businesses to support us in whatever way they can, whether that is in a volunteering capacity, by offering their expertise in kind, or supporting at events by buying tables or by donating raffle/auction prizes. These are just some of the companies we have worked with over the year: Focus 10k: Thanks to the support of local telecommunications provider, Focus Group, we ran our second successful challenge event. This year, we had more than 600 runners taking place in a 10k, 5k and children's mini-mile in the beautiful grounds of the Borde Hill estate and helped us raise nearly 14,000. We are already planning our third annual event which takes place on May 31, 2020. Midsummer Ball: In June, once again we partnered up with three other Sussex based charities supporting children and young people to hold our third Midsummer Ball. Organised by the DM Thomas Foundation, the event raised 75,000, with the proceeds split between the four charities. Sunninghill Construction Ltd: As well as being the contractor for the Dream Centre, Sunninghill were generous supporters of our Big Give Christmas Challenge in 2018 and made a donation in lieu of Christmas cards. E3 Events: Sponsor our Focus 10k run and also supported us as the charity to benefit from the Brighton Family Panto bucket collections at Christmas. Simmons Gainsford: Support us as their charity of the year by raising funds through their annual corporate Rounders' Match and Quiz Night. Chailey Heritage Foundation 35 Our volunteers Without the support of our wonderful volunteers, we would not be able to organise or become involved in the growing number of fundraising events, talks and challenges each year. We are incredibly grateful to all our volunteers who chose to give their time to support us and help us raise much needed funds that enable us to enrich and enhance the lives of the young people here at Chailey Heritage Foundation. A huge thank you to everyone who has been involved. We could not manage without you! For every pound spent on fundraising we raised 8 for capital developments like the Dream Centre, as well as specialist equipment and facilities. Fundraising costs are borne entirely from the Trustees' Unrestricted Reserves. 1 spent = 8 raised We would like to thank the Friends of Chailey Heritage for their continued generous support. As well as funding equipment and facilities for the Foundation, the Friends also helped fund IPSEA, a service offering independent legal advice for parents. We are four years into a proactive legacy strategy to raise awareness in the community of our need for gifts in Wills through a programme to increase individual giving. We held another successful `Will Writing' fortnight during the year, with an increased number of solicitors participating. Fundraising Audit During the year, the Fundraising Department was tasked by Trustees to complete a self-evaluation of the fundraising at Chailey Heritage Foundation. The reasons for this included the expansion of the department in recent years, use of fundraising methods new to us, widespread changes to GDPR and regulations around fundraising, the use of social media, and high profile national scandals in the charity sector. The Fundraising Audit was produced using the six principles as set out by the Charity Commission document entitled "Charity fundraising; a guide to trustees duties". This took several months to complete, but the resulting document is detailed, professional and clearly laid out, covering all sections of fundraising along with relevant policies and other documents to clarify the points being made. It showed that the department is operating with consistent guidelines and with effective systems in place to cover all aspects of their work. Most importantly, the Trustees felt there were no areas in which the Fundraising Department was not operating effective systems, checks and training to ensure that they are undertaking their duties in a safe and effective way. We would like to reassure all our donors and supporters that we have always been committed to the highest standards of fundraising. We respect donors' privacy and comply with the guidelines set out by the Institute of Fundraising and the Fundraising Regulator and we subscribe to both organisations. Funds will be solicited in a respectful manner and without pressure. As a matter of policy, the Charity does not employ outside commercial fundraising organisations to interact directly with potential donors. There were no complaints about our fundraising during the year. The principles of our fundraising policy are set out in `Our Commitment to Donors'. This can be found here: https://www.chf.org.uk/donors-commitment.html along with a link to our Fundraising Policy and our Complaints Procedure. 36 Annual Report and Accounts 2018/19 Trustees' report on financial and other statutory matters The Trustees of Chailey Heritage Foundation are pleased to present their annual report and financial statements for the year ended 31 August 2019. The report and accompanying financial statements have been prepared under the Companies Act 2006 and the Charities Act 2011, and in accordance with the requirements of the Companies Act 2006, the Company's Memorandum & Articles of Association, and the Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in July 2014. Chailey Heritage Foundation is a registered Charity (number 1075837) and also registered in England as a Company limited by Guarantee (number 3769775). Our Charitable Objects "The objects of the Charity are, for the public benefit, the education and care of people who have physical disabilities and other complex health needs, particularly but not exclusively children and young persons (the beneficiaries) including the conduct and maintenance of a special school (the School) within the meaning of the Education Acts and of a transition service for beneficiaries." The Trustees do not expect services for those over 25 years of age to make up more than 10% of our charitable income. Demonstrating Public Benefit In shaping our objectives and planning our activities, the Trustees have considered the Charity Commission's guidance on public benefit, including the guidance `public benefit: running a charity (PB2)'. In particular, charities which charge fees for services must demonstrate that those services are accessible to the general public and not restricted by geography or the ability of individuals to pay. We believe we comply fully with this requirement; our Report on Operations and Strategy includes examples of the public benefits Chailey Heritage Foundation offers and areas in which we believe we are providing innovative leadership to the sector. The Trustees are committed through their strategic plan to increasingly share our specialist facilities with young people who have complex disabilities and live locally. We are very proud of being able to offer our charitably-funded initiatives such as Aquamovers+ and Hippotherapy to disabled children from the local community. The Dream Centre will also enable more people living locally to benefit from the Charity's very specialist facilities. Another aspect of the Charity's public benefit is our work in partnership with other charities, helping the most disabled children and their families. Achievements and performance Our strategy and performance against our strategic goals is discussed in detail on pages 7 to 15 of this annual report. Financial Review The financial pressure our funders are under continues to restrict our ability to increase all our fees to fully reflect the true cost of providing our service. We are continuing to review our core fees for the main areas of operation, but they still do not recover all of our depreciation costs. Our Unrestricted General funds made a small surplus this year before the net loss on our investment portfolio is taken into consideration. Overall Net Income was down due to the closure of the Dream Centre Appeal as their target was reached. Certain costs, e.g. fundraising, the upkeep of the Chapel and other legacy assets, continue to not be recovered through fees but funded from the Foundation's own reserves. In line with our Charity ethos, all the surplus funds are reinvested in the Foundation for the benefit of the children and young adults. The demand for the services we offer continues in both the School and Children's Home as well as our other community services.The scope for this however is limited by the directly variable costs of 1-1 support staff, which account for a high proportion of total costs and the availability of staff. Management accounting, budgeting and accountability systems were tightened, together with controls over cash flow. The quality of management reporting to senior management, Governors and Trustees was further strengthened again during the year. Chailey Heritage Foundation Financial Activities and Results In the year to 31 August 2019, our total income rose to 13.6m (2018: 13.1m). This was due to higher Operating income arising from a continuing increase in pupil numbers and occupancy of our other provisions, as well as another very successful year of fundraising in particular for our Dream Centre Appeal and funding of new specialist equipment eg Eye gazes. Correspondingly, in the same period, total expenditure has risen to 12.6m (2018: 12.1m). This increase primarily arose from the additional staffing costs incurred to support the extra users and their complexity, as well as absorbing extra staffing expenditure on support staff as the responsibility for preparing medication in school has transferred from Chailey Clinical Services to the Foundation to ensure best clinical practice as well as additional expenditure on clinical consumables as Clinical Commissioning Groups continue to cut their budgets. The Foundation still strives for a modest positive return in all of its services before depreciation is charged. Once depreciation is charged the Unrestricted Fund made a small surplus of 15k for the current year (2018: deficit 206k). The Foundation's services are supported by other income of the Charity e.g. income derived from unrestricted legacies, donations and investment income. Legacy income was down this year by 250k as due to its nature it is uncertain in amount and timing. Unfortunately due to the economic uncertainty and downturn of global markets our investment portfolio showed a net loss at the year end of 29k (2018: net gain 106k). As a charity, regrettably, we continue to incur non-recoverable VAT of approximately 350k, as the Government continues to ignore our sector with regard to exemptions, despite giving relief to hospices and maintained special schools. Accordingly, we continue to support the sector's strong lobbying of government for VAT relief. The balance sheet continues to show the enormous investment that the Charity has made in the Charity's leasehold buildings and equipment. At the end of the year, these buildings and equipment accounted for 14.0m or 76% of the Charity's total funds. This reflects the continued investment by the Trustees in the infrastructure of the Foundation and its drive to meet the ever-changing needs of the young people, as well as the completion of the Dream Centre building project in the Summer 2019.During the year the Trustees also made 37 additional investments in the current leasehold buildings and equipment. Cash balances are lower this year at 1.4m as restricted cash is spent on building and fitting out the Dream Centre (2018: 2.5m). Funds The Foundation holds on its balance sheet Restricted Funds, Designated Funds and other Unrestricted (or General) Funds. At 31 August 2019, the balance sheet showed total funds employed of 18.5m: of this 14.0m has been invested in fixed assets - predominantly our buildings and estate, and is mostly unrealisable, because, under the terms of the Charity's lease, the buildings revert to the Landlord if the Charity discontinues its activities. Funds of 3.8m are Restricted, including 2.9m held within tangible fixed assets as the Dream Centre is completed,and 579k is held in Designated funds for specific items of equipment and future capital projects. The remaining General funds of 3.0m are largely represented by uncommitted cash balances and fully marketable investments,which together we refer to as the Foundation's Free Reserves. Donations and legacies given to the Foundation for a specific purpose, including donations in response to an Appeal, are classified as Restricted. They are managed by the Fundraising Department, which is charged with ensuring they are properly applied for the purposes for which they are given. The Trustees may choose to earmark Unrestricted funds for a particular use. These are shown as Designated Reserves. It is the Trustees' policy that all Unrestricted donations given for no specific purpose should be designated for spending on equipment and facilities and opportunities for enriching the experience of the children and young people at Chailey Heritage Foundation, and not be applied towards meeting operating costs or to strengthen reserves. In addition the Trustees may from time to time designate sums from their reserves towards particular future projects or purchases - as they have at this year-end mainly towards new car parking that is urgently required to accommodate the large increase in staff and others coming to the site. All other funds are classified as Unrestricted. They include the high percentage invested in capital assets, separately identified on the Balance Sheet. The remainder of unrestricted funds are held to meet the working capital requirements of the Foundation, uninsured risks and to cover unexpected costs or shortfalls in income. They are also available for the development of new business. 38 Annual Report and Accounts 2018/19 Free Reserves Position In our 2018 Report, we set a new target for Free Reserves of 4m for August 2020 (the end of the current three year strategic period). This is equivalent to around four months of expected operating costs. We pointed to the growing scale and complexity of the Foundation's business and the consequential increase in staff numbers, costs, and working capital; to the financial pressures on our public sector funders and partners which pose risks to our income; to the growing regulatory liabilities to which the Foundation is potentially exposed and the need for modernisation and adaptation of our buildings to accommodate new equipment and technology for our young people. We also wish to remain able to respond quickly to opportunities for new business developments and partnerships, and to provide confidence to those responding to future Appeals that we have the means to assess and implement new projects thoroughly and to see them through successfully. We noted that achieving the new target would depend on continued growth in investment returns and legacies as well as delivering budgeted operating surpluses. Free Reserves (excluding those Designated by Trustees) stood at 3.1m at 31 August 2019. This was affected by shortfalls in investment returns and legacy receipts and the need to invest in the site. We anticipate that the increase from the current level of free reserves will come about from a combination of investment returns, legacies, and operating surpluses (i.e. after depreciation). We may also need to apply a stricter assessment and prioritisation of operating capital demands to be funded internally. The Trustees recognise that the current level of free reserves is below the target, however this is as a result of investment in the site and strategies are in place to increase them over coming years, including appointing an experienced manager to take this forward. Investment Policy and Performance Funds expected to be required in the short term are typically placed with banks in the money markets through prime financial institutions. Longer-term funds are invested and managed on a discretionary basis by Rathbones within longterm return objectives and clearly defined risk parameters set by the Trustee Finance Committee. The investment portfolio includes equities, fixed interest securities, and property and other managed funds. The primary aim is to strengthen the financial resilience of the Foundation and to generate resources to support its longer term development. The performance of the investment manager, the investment parameters, and any potential needs for drawdown are all regularly reviewed by the Trustee Finance Committee. In 2018/19, the value of the portfolio decreased by 5% from 3.7m to 3.5m. This reflected a less buoyant stock market in 2019 after several years of growth, but also the withdrawal of 150k in anticipation of investment in extended and safer access for cars to the site. During the year, Trustees also temporarily withdrew the interest and dividends accruing to the portfolio; since August 2019, these are again being reinvested. Principal risks and uncertainties Risk management process The Board of Trustees has oversight of the risks faced by the Charity. A robust risk management process focuses on strategic risks that could impact on current service delivery and the Charity's future development. There is an active risk management process at both Trustee Board and Governing Board with risk management as a standing item of the agenda for all Board and sub-committee meetings. The level of risk and changes in likelihood and impact are tracked closely and risk mitigation measures are considered and implemented. The register is updated three times a year to reflect any new or changing risks. Overall, the number of significant risks facing the Charity fell during the year. This was primarily because issues such as senior management capacity and Trustee recruitment had been addressed. During the year 2018/19, the Board benefitted from four new Trustees with considerable financial, legal, PR and business experience and there was equal success in recruiting a very experienced practitioner to succeeed the Director of Social Care, who planned to retire in September 2019. The appointment of a very experienced Estates Manager in March 2018 bore fruit in 2018-19 with investment in Health & Safety initiatives ensuring high levels of regulatory compliance. Similarly, the Estate Manager's survey and subsequent oversight of remedial work on the Chapel, mitigated the inevitable risk of having the responsibility for a listed building. There is a similar pattern in 2019-20 with governance and estates risks all falling below the criteria for the Foundation's risk register. Significantly these are risks over which the Charity does now have greater control. The highest risks in 2018-19 and looking forward are ones where external factors, including Chailey Heritage Foundation 39 the labour market, LA/NHS funding for placements and the pressures on our NHS partner, are, in many respects, outside the Charity's control. improvement. Actions initiated in 2018-19 are being accelerated in 2019-20 through the support of new NHS managers. The main risks in 2018-19 have been: Insufficient Accommodation to meet service needs The Charity operates on a single site and there is limited space for further development. Car parking spaces have not kept pace with the increase in staff. Pupils and residents have multiple pieces of large equipment requiring space to manoeuvres in classrooms, bedrooms and social areas as well as space to store them. Around a third of residential accommodation is shared but regulators expect each resident to have their own room. We manage this risk by using and adapting/ reconfiguring existing resources. In 2018-19 the Dream Centre build was completed, doubling the space previously available and creating new spaces for drama, rebound, sport and sensory. We are exploring options to move to single bedrooms and including new residential accommodation. Plans to increase car parking delayed in 2018-19, while ecological issues were addressed, will be delivered in 2019-20. Income: Securing fees that are sufficient to meet the full costs of a school or residential placement Cost are increasing as a result of changes in the complexity of the needs of the children and young people, shifts in NHS funding, the rising employment costs and downward pressure on costs from Commissioners. We manage this by being transparent with Commissioners about changes in our cost base especially when we need to periodically rebase, demonstrating value for money though outcomes and impact, and fundraising and the Charity's own resources to fund major capital, maintenance projects and innovative equipment. Staff Recruitment: Inability to recruit enough additional staff to meet the increasing demand for placements especially in social care New pupils or residents are now more complex and each requires at least one-to-one support to keep them safe and therefore the total number of staff needed is increasing year on year. Our rural location, low unemployment and the high cost of housing make recruitment particularly challenging. We manage this by good retention, encouraging staff to join our bank team (and reducing agency costs), offering high levels of training, supporting professional development and introducing a new benefits package in 2018-19. We have strengthened the HR team, streamlined processes and moved to an on-line model. We have listened to our staff and in 2019-20 are reviewing our remumeration packages to ensure the Charity is better placed in a very competitive labour market. A major safeguarding failure or adverse regulatory report The young people in our services are highly vulnerable and the regulatory framework is rightly demanding. The complexity of the care and the number of medicines prescribed for them increases the risk of an error and/or a major safeguarding failure. A serious, life threatening, accidental error would be highly detrimental to the Foundation. Reputational Our reputation is critical to our position as a trusted provider of choice for parents and Commissioners, and hence to the sustainability and viability of the Charity as well as our capacity to raise funds to support the work of the Charity. Clinical Training: Insufficient Foundation staff signed off as clinically competent Clinical training and assessment is provided by nurses employed by our NHS partners, Chailey Clinical Services. In the context of a severe shortage of paediatric nurses, they have had difficulties in recruiting sufficient nursing staff to train school and residential staff. We manage the risks of regulatory failure or a reduction in inspection grade through annual service and governance self-assessments against inspection or good practice frameworks and, where required, review by an external expert. The Governing Board's monitoring role is discharged through its committees and supported by governor focus visits to services to observe practice at first hand and meet staff and families. We manage this risk by working closely with Clinical Services, jointly identifying and quantifying the risk, reviewing and streamling training processes, supporting their recruitment. The appointment of Nurse Practice Educators by Chailey Clinical Services has led to significant We maintain a strong focus on safeguarding, working jointly with our partners in Chailey Clinical Services and liaising with Local Authority Children's Safeguarding Boards. The risk is also managed through robust record keeping, case management and annual audit and overseen by a named 40 Annual Report and Accounts 2018/19 Governor. Clinical training is a high priority and delivered by our NHS partners who provide clinical governance as well guidance on best practice. GDPR * benchmarking against regional competitors * public sector pay awards and the recommendations of the relevant pay bodies such as the School Teachers' Review Body Compliance with the General Data Protection Regulation remains a high priority here. We are continually taking steps to improve our handling of personal data and to ensure compliance. All staff are provided with training on the subject alongside general cyber security. * the Living Wage. Safeguarding Outlook The children and young people we care for are especially vulnerable due to their complex needs. Disabled children are more than three times likely to be abused than non-disabled. All our staff and volunteers are DBS checked and they are all committed to safeguarding and undergo extensive safeguarding training with specifics regarding disability. Everyone in the organisation who is involved with the recruitment of staff follows safer recruitment guidelines. On balance, even though there are risks, Trustees believe that the Foundation is as well placed as any other organisation in our specialised sector to tackle them and to continue to thrive. The outstanding rating of our core School activity, our reputation as a provider of specialist care of very complex cases, the professionalism of our executive team, carers, and volunteers, our good financial and funding position, all underpin our determination to achieve excellence in everything we do. We aim to make a positive impact, not only on the lives of our young people and their parents, but on the public good which we serve. We face the future with resolve and confidence. We have seven named safeguarding officers including a Designated Safeguarding Lead and a Lead Safeguarding Governor. The following key committees are responsible for safeguarding: Governors' Safeguarding Committee,meeting * termly. * Joint Safeguarding Steering Group, meeting termly. This includes Clinical Services' leads and the Designated Officer from East Sussex County Council. * Safeguarding Leads monthly peer group including the lead nurse from Chailey Clinical Services, reviewing all casework. Our safeguarding policies are reviewed and updated annually. Remuneration policy The Foundation is committed to ensuring that we pay our staff fairly and competitively to attract the skills needed to deliver and support our services. The Governors' People, Pay & Performance Committee (PPP Committee) considers the employment and remuneration policies including pay policy, pensions and benefits each year. In setting pay at all levels, Governors and Trustees consider: * the nature of the role and responsibilities based on the job evaluation * salaries in the relevant sector As noted under `Our people', for 2018/19 staff were awarded a 1.5% across-the-board salary increase. No Trustee or Governor is remunerated. Structure, Governance and Management Governing documents The company, established in 1999, is governed by its Memorandum and Articles of Association. With the consent of the Charity Commission, the Charity changed its name from Chailey Heritage School to Chailey Heritage Foundation with effect from September 2012 to reflect the wider range of provision now offered. The Scheme of Delegation sets out formally the powers delegated to the Governing Board, and the terms on which they are delegated, including reporting requirements. The wholly-owned trading subsidiary of the Charity, Chailey Heritage Trading Company Limited, was incorporated on 10 August 2016 and is registered in England and Wales (company registration number 10323844). It has been inactive since incorporation. Boards Since incorporation, the Charity has been managed by a Board of Trustees which has overall control of the Charity, its property and funds. The Trustee Board is supported by a Board of Governors, which has a distinct and separate identity from that of the Trustees and is responsible for securing the effective and efficient operation and management of all services including the School, Chailey Chailey Heritage Foundation Heritage Residential, Chailey Heritage Futures and Chailey Heritage Pathways. To ensure good communication between the two Boards, yet maintain the separateness of them, the Chair of the Governing Board is a Trustee and at least three individuals served on both Boards. Those who served as Trustees during the year are shown on page 46. The Trustees are recruited from a range of backgrounds and professions with the aim of providing a balanced and relevant spread of skills and experience on the Board. The current Board includes depth of skills in finance, property, health, law, education and marketing, as well as direct experience of a parent of a former pupil. At each Annual General Meeting, one third of the Trustees retire and are eligible to stand for re-election. Trustees have been briefed on the implications of the General Data Protection Regulation. They recognise the importance of the Charity Governance Code and will be reviewing their improvement plan in the light of their selfassessment against the Code. The Trustees meet as a full Board at least three times a year. Its principal committees are Finance (including audit, financial risk and control), Fundraising, and Property Reference Group (which is overseeing the Dream Centre project). These committees meet more frequently than the full Board. Trustees meet annually with the Governors to review their strategy and plans for the future. The Governors meet termly and comprise Trustees and others with relevant skills including a retired accountant and Civil Servant, a retired dentist, a member of the Local Authority and also representatives of the parents, teachers and staff. During the year, William Shelford retired from the Trustee Board after 17 years' service including four years as Chair. We are very grateful and thankful for his guidance and wise counsel. Mark Creamer was appointed the new Chair in December 2018 and is looking forward to leading the Charity through its next stage of development. We were delighted to welcome four new Trustees to the Board. Neil Bennett, Chief Executive of Maitland/AMO, a financial, corporate and political communications consultancy. Alison Grover, a Governor and parent of a young adult using our day services, who has recently retired as Assistant Director of Finance at Canterbury Christ Church University. Andrew Hodson, a retired Finance Director with experience in both general management and consultancy, as well as previous trustee experience. Charles Kimmins QC, great grandson of the Founder of the Charity, 41 who specialises in all areas of commercial law. He was called to the bar in 1994 and practices at 20 Essex Street. The responsibility for determining the general policies of the School, Chailey Heritage Residential and Chailey Heritage Futures rests with the Governing Board. That Board has five principal committees which all meet termly before the main Board meeting to deal with Finance, Estates & Environmental Safety, Safeguarding, Progress, Outcomes & Wellbeing and Staff related issues. The Chairs of each committee also hold an annual strategy meeting. In addition to the Boards of Governors and Trustees, the Senior Management Team comprising the Chief Executive, Headteacher and Director of Social Care, meets weekly and there is a monthly meeting with the heads of all the Foundation's direct and support services. Trustee induction and training New Trustees are briefed on their legal obligations under charity and company law, the content of the governing documents, the committee and decisionmaking processes, the business plan and recent financial performance of the Charity. During the induction, they meet key employees and other Trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. As part of their ongoing training, Trustees are also given briefings on current `hot topics' at the start of each of their Board meetings. Funds held as custodian There are no arrangements where the Charity or Trustees are acting as financial custodians. Auditors Our attached financial statements have been audited by Moore Kingston Smith LLP who were reappointed in 2018 following an audit tender process. Their report thereon and on other matters they have to consider, that follows on pages 43 to 45 in the long form that Auditing Standards now require, is an unqualified opinion and report without exception. Moore Kingston Smith LLP offer themselves for reappointment as auditors in accordance with section 485 of the Companies Act 2006. Statement of Trustees' responsibilities The Trustees (who are also directors of Chailey Heritage Foundation for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting 42 Annual Report and Accounts 2018/19 Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 `The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Company law requires Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing the financial statements, the Trustees are required to: This Report was approved by the Board of Trustees and signed on its behalf by: Mark Creamer - Chair of Trustees * select suitable accounting policies and then apply them consistently; Fiona Duff - Company Secretary * observe the methods and principles in the Charities SORP; Date: 6th February 2020 * make judgements and estimates that are reasonable and prudent; * state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going * concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Statement as to disclosure of information to the auditor The Trustees who were in office on the date of approval of these financial statements, having made reasonable enquiry, have collectively confirmed that, as far as they are aware, there is no relevant audit information undisclosed to the company's auditor and that they have taken the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor. Chailey Heritage Foundation 43 Independent auditor's report to the members of Chailey Heritage Foundation Opinion We have audited the financial statements of Chailey Heritage Foundation (`the charitable company') for the year ended 31 August 2019 which comprise the Statement of Financial Activities including the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 `The Financial Reporting Standard Applicable in the UK and Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the * charitable company's affairs as at 31 August 2019 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; have been properly prepared in accordance with * United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the * requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the audit of financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: * the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or * the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. Other information The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the strategic report and * the trustees' annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and * the strategic report and the trustees' annual report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment 44 Annual Report and Accounts 2018/19 obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees' annual report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: * adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement * with the accounting records and returns; or * certain disclosures of trustees' remuneration specified by law are not made; or * have not received all the information and we explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustees' responsibilities statement set out on page [x], the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control * relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company's internal control. Evaluate the appropriateness of accounting * policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees' * use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, Chailey Heritage Foundation the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. David Montgomery, Senior Statutory Auditor for and on behalf of Moore Kingston Smith LLP Statutory Auditor Betchworth House 57-65 Station Road, Redhill Surrey RH1 1DL Date: 6th February 2020 45 46 Annual Report and Accounts 2018/19 Trustees, Governors, executives and professional advisors PATRON HRH The Duchess of Gloucester GCVO PRESIDENT Mrs Verena Hanbury MBE DL TRUSTEES AND GOVERNORS The Trustees of Chailey Heritage Foundation (who are also the directors of the company for the purposes of company law) and the Governors who served throughout the year unless otherwise stated were: GOVERNORS TRUSTEES Mr William Shelford DL (Chair) (retired December 2018) Mrs Jenny Clark (Chair) Mr Michael Atkinson Mr Michael Atkinson Ms Amanda Brewis (appointed December 2019) Mrs Lucinda Baker LVO Mr Neil Bennett (appointed December 2018) Mr Paul Crawford (retired November 2019) Mrs Emma Dewe (retired May 2019) Mrs Helen Britton Ms. Meriel Green (appointed July 2019) Mr Darren Chilcott (appointed December 2019) Mrs Jenny Clark Mr Peter Griffiths (co-opted Governor) Mrs Alison Grover Mr Mark Creamer (appointed as Chair December 2018) Ms. Sarah Healey Mr David Crowther (retired December 2019) Mr Lawrence Mudford (appointed January 2019) Mrs Heather Goodhew (appointed December 2019) Mr Paul Myers (appointed June 2019) Dr Elizabeth Green Mrs Carole Oram Mrs Alison Grover (appointed December 2018) Mrs Deirdre Prower Mr Andrew Hodson (appointed April 2019) Mr Chris Jones (retired December 2019) Cllr. Jim Sheppard Mr Mark Simpson (retired April 2019) Mr Charles Kimmins (appointed December 2018) Mr Robin Meyer Mr Troy Slife (appointed November 2019) Mrs Jane Roberts (retired December 2019) KEY EXECUTIVES Chief Executive: Ms Helen Hewitt Headteacher: Mr Simon Yates Director of Social Care: Mrs Denise Banks Finance Director: Mrs Jane Cope Development Director (Fundraising): Ms Sally-Anne Murray Mr Nick Aziz HR Director: Company Secretary: Mrs Fiona Duff AUDITORS Moore Kingston Smith LLP, Betchworth House, 57-65 Station Road, Redhill, Surrey RH1 1DL BANKERS National Westminster Bank, 1 Muster Green, Haywards Heath, West Sussex SOLICITORS Griffith Smith LLP, 47 Old Steyne, Brighton, East Sussex INVESTMENT MANAGERS Rathbone Investment Management Limited, 1 Curzon Street, London REGISTRATION INFORMATION The Registered Office and principal address of the Company is at Haywards Heath Road, North Chailey, Lewes, East Sussex, BN8 4EF Chailey Heritage Foundation 47 Statement of Financial Activities For the Year Ended 31st August 2019 (Including Income and Expenditure Account) Notes Unrestricted Funds General Designated '000s '000s Restricted Funds '000s 2019 Total '000s 2018 Total '000s INCOME FROM: Donations, legacies and grants 3 224 - 1,297 1,521 1,994 Charitable activities: Fees Ancillary income 4 11,827 145 - - 11,827 145 10,846 127 Investments 5 131 - - 131 106 11 12,338 - 1,297 11 13,635 12 13,085 6 6 31 181 212 - - 31 181 212 33 185 218 7 12,111 - 167 126 12,111 293 11,626 219 12,111 167 126 12,404 11,845 12,323 167 126 12,616 12,063 15 (167) 1,171 1,019 1,022 (29) - - (29) 106 (14) (167) 1,171 990 1,128 26 (35) 9 - - Net movement in funds Total funds brought forward 12 14,182 (202) 781 1,180 2,570 990 17,533 1,128 16,405 Total funds carried forward 14,194 579 3,750 18,523 17,533 Other Total income EXPENDITURE ON: Raising funds: Financing costs Fundraising costs Charitable activities: Operating costs Use of Donations and Appeal Total expenditure Net income/(expenditure) before investment gains Net (losses)/gains on investments 8 13 Net Income/(Expenditure) Gross transfers between funds 19 The Charity has no recognised gains or losses for the year other than as detailed above. The net movements in the Charity's funds for the year arise from the Charity's continuing activities The notes on pages 50 to 63 form part of these accounts. 48 Annual Report and Accounts 2018/19 Balance Sheet As at 31st August 2019 Notes CURRENT ASSETS Debtors Cash at bank and in hand 2018 '000s 12 13 14,037 3,533 11,867 3,738 17,570 FIXED ASSETS Tangible assets Investments 2019 '000s 15,605 1,898 1,376 2,277 2,469 3,274 4,746 (2,321) (2,818) 953 1,928 18,523 17,533 2,903 847 3,750 797 1,773 2,570 579 11,134 3,060 14,773 18,523 781 11,070 3,112 14,963 17,533 14 15 Total Current Assets LIABILITIES Creditors: Amounts falling due within one year 16 NET CURRENT ASSETS TOTAL NET ASSETS ACCUMULATED FUNDS 18,19 Restricted funds Invested in tangible fixed assets Other Unrestricted funds Designated funds Invested in tangible fixed assets General funds TOTAL FUNDS The financial statements on pages 47 to 63 were approved by the Board of Trustees and authorised for issue on 6th February 2020 and signed on their behalf by M. Creamer Trustee Company No: 3769775 A. Hodson Trustee Chailey Heritage Foundation 49 Statement of Cash Flows For the Year Ended 31st August 2019 2019 '000s 2018 '000s 1,079 1,808 Cash flows from investing activities Dividends, interest and rents from investments Purchase of property, plant and equipment Proceeds from sale of investments Purchase of investments Net cash used in investing activities 131 (2,479) 150 26 (2,172) 106 (1,127) 250 (29) (800) Change in cash and cash equivalents in the reporting period (1,093) 1,008 Cash and cash equivalents at the beginning of the reporting period 2,469 1,461 Cash and cash equivalents at the end of the reporting period 1,376 2,469 Cash flows from operating activities Net cash provided by operating activities (below) Reconciliation of net income/(expenditure) to net cash flow from operating activities 2019 '000s Net income/(expenditure) Adjustments for Depreciation charges Net losses/(gains) on investments Investment income Decrease/(Increase) in debtors (Decrease)/Increase in creditors Non-cash additions to property,plant and equipment Net cash provided by/(used in) operating activities 2018 '000s 990 1,128 539 29 (131) 379 (497) (230) 574 (106) (106) (427) 745 1,079 1,808 50 Annual Report and Accounts 2018/19 Statement of Accounting Policies and Notes to the financial statements 1. Legal status of the Charity The charity is a company limited by guarantee and has no share capital. The members of the Charity are the Trustees listed on page 46. In the event of the charity being wound up, the liability in respect of the guarantee is limited to 10 per member of the charity. 2. Accounting policies a. Basis of Preparation The financial statements are prepared on a going concern basis, under the historical cost convention, as modified by investments being measured at fair value through income and expenditure within the Statement of Financial Activities. The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charitable company is a public benefit entity for the purposes of FRS102 and has also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011. The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest one thousand pounds. b. Going concern The Trustees have assessed whether the use of going concern is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable company to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. In particular, the Trustees have considered the charitable company's forecasts and projections and have taken account of pressures on fee income. After making enquiries, the Trustees have concluded that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements. c. Subsidiary company These financial statements reflect the results and financial position of the Charity only, and not its wholly owned trading subsidiary, Chailey Heritage Trading Company Limited, which was incorporated on 10 August 2016 and is registered in England and Wales (company registration number 10323844). The subsidiary was inactive for the financial year ended 31st August 2019 as in the previous year. d. Income All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably. Legacies are recognised following probate and once there is sufficient evidence that receipt is probable and the amount of the legacy receivable can be measured reliably. Where entitlement to a legacy exists but there is uncertainty as to its receipt or the amount receivable, details are disclosed as a contingent asset until the criteria for income recognition are met. Chailey Heritage Foundation 51 For the Year Ended 31st August 2019 Donations are accounted for when the amounts are received or are measurable and certain at the date of the accounts. Donations in kind are accounted for when the benefit is measurable and supported by third party verification. Tax recoverable under Gift Aid is accounted for when it is received. Donations are treated as Restricted if they are subject to specific wishes of the donors, or as Designated if Trustees have allocated the funds for the benefit of the young people. Otherwise they are regarded as Unrestricted. Grants receivable are accounted for over the period to which they relate. Government grants comprise amounts received during the year adjusted for income which relates to future periods. Such deferred income relating to grants is included in deferred income in creditors. Investment income is accounted for on an accruals basis. e. Expenditure Liabilities are recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. Irrecoverable Vat is included with the item of expense to which it relates. f. Tangible Fixed Assets and Depreciation Fixed assets are stated at cost less appropriate depreciation. Items costing less than 2,500 are not capitalised unless they form part of a larger capital project costing more than 2,500. Depreciation of tangible fixed assets is calculated to write off their cost less any residual value over their estimated useful lives: Leasehold property and improvements 2-4%, 10% or 25% depending on the expected asset life Motor vehicles, computer equipment, 25% per annum on cost furniture & equipment 10% per annum on cost Hoists / longer life equipment Fixed assets acquired with restricted funds are treated as Restricted Fixed Assets in the accounting year in which they are purchased or brought into use, if later. When fully operational these assets are reclassified as Unrestricted, unless the donor specifically requests they remain as Restricted or the Appeal Fund which funded them remains open. g. Investments Investments are initially recorded at cost and subsequently measured at fair value at each reporting date. Fair value is based on their quoted price (inclusive of accrued income) at the balance sheet date without deduction of the estimated future selling costs. Changes in fair value and gains and losses arising on the disposal of investments are credited or charged to the income or expenditure section of the Statement of Financial Activities as `gains or losses on investments' and are allocated to the appropriate fund holding or disposing of the relevant investment. 52 Annual Report and Accounts 2018/19 h. Pension costs and other post-retirement benefits The Foundation operates with three different pension schemes as described in note 10. (1) Teachers are members of the Teachers Pension Scheme. (2) defined contribution scheme for employees whereby the assets of the scheme are held separately A in an independently administered fund. (3) NHS final salary scheme for certain employees who transferred from the NHS. No new employees can join. Contributions to all schemes are charged in the Statement of Financial Activities as they fall due. i. Fund Accounting Restricted funds are funds for specific purposes imposed by the donor or by the terms or nature of the appeal under which the funds were raised. The restrictions are binding upon the Trustees of the Charity. Unrestricted funds are available to the Charity for its general purposes and include funds deployed in tangible fixed assets and other funds which may be designated for a particular purpose by the Trustees. The use of such designated funds remains at the discretion of the Charity's Trustees. Unrestricted funds are shown as General and Designated. j. Operating leases Rentals paid under operating leases are charged to income as incurred. k. Taxation The Charity is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and on surpluses of any trading activities carried on in furtherance of the Charity's primary objects. The Charity's non-primary trading activities are also tax exempt as below the current taxable threshold. The Charity is not registered for VAT. l. Other financial instruments i) Cash and cash equivalents Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less. ii) Debtors and creditors Debtors and creditors receivable or payable within one year of the reporting date are carried at their transaction price. Where any debtors and creditors to be receivable or payable in more than one year and not subject to a market rate of interest, they would be measured at the present value of the expected future receipts or payment discounted at a market rate of interest. m. Critical accounting estimates and areas of judgement In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. In the view of the trustees, no judgements were required that have a significant effect on amounts recognised in the financial statements, nor do any estimates or assumptions made carry significant risk of material adjustment in the next financial year. Chailey Heritage Foundation 3. Donations, legacies and grants Year at 31 August 2019 Unrestricted Funds '000s Designated Funds '000s Restricted Funds '000s 2019 Total '000s 48 176 - - 1,260 37 1,308 176 37 224 - 1,297 1,521 Unrestricted Funds '000s Designated Funds '000s Restricted Funds '000s 2018 Total '000s 121 426 - - 1,421 26 1,542 426 26 547 - 1,447 1,994 Donations Legacies DFE grant - maintenance NMSS Year at 31 August 2018 Donations Legacies DFE grant - maintenance NMSS The DfE grant above is restricted to be spent on maintenance of the School. 4. Income from Charitable activities 2019 '000s 4,376 7,451 4,086 6,760 11,827 Education fees Social Care fees 2018 '000s 10,846 A very high proportion of our fees come from Local Authorities and Clinical Commissioning Groups. Ancilliary income is mainly from the provision of riding and swimming outside school hours. 53 54 Annual Report and Accounts 2018/19 5. Investment income All income in the current and comparative year relates to unrestricted funds. 6. Cost of raising funds All costs of raising funds and financing costs in the current and comparative year are charged to unrestricted funds. 7. Analysis of charitable expenditure Year at 31 August 2019 Direct Staff costs '000s Other Direct costs '000s Support costs '000s School Social Care Other charitable activities 3,160 5,354 213 96 569 47 779 1,324 30 247 242 50 4,282 7,489 340 Total operating costs 8,727 712 2,133 539 12,111 Direct Staff costs '000s Other Direct costs '000s Support costs '000s School Social Care Other charitable activities 2,990 5,010 276 104 547 44 763 1,288 30 295 235 44 4,152 7,080 394 Total operating costs 8,276 695 2,081 574 11,626 Charitable Activities Total Depreciation 2019 '000s '000s Year at 31 August 2018 Charitable Activities Total Depreciation 2018 '000s '000s Chailey Heritage Foundation 55 Year at 31 August 2019 Analysis and Allocation of support costs Total Other 2019 '000s '000s Social Care '000s 364 42 64 21 53 158 3 74 619 72 109 35 90 268 5 126 15 2 3 1 2 6 0 1 998 116 176 57 145 432 8 201 779 Staff costs IT costs Maintenance Insurance HR costs Utilities Professional fees Other School '000s 1,324 30 2,133 Year at 31 August 2018 Staff costs IT costs Maintenance Insurance HR costs Utilities Professional fees Other School '000s Social Care '000s Other '000s Total 2018 '000s 371 28 84 20 35 114 7 104 631 47 143 33 59 194 11 170 15 1 3 1 1 5 0 4 1,017 76 230 54 95 313 18 278 763 Analysis and Allocation of support costs 1,288 30 2,081 Support costs have been allocated to Operating areas on the following bases: Staff costs - time spent Depreciation - usage of related assets. Other expenses - floor area or headcount Support costs include governance costs of 21k (2018: 15k). 56 Annual Report and Accounts 2018/19 8. Net operating income/ (expenditure) 2019 '000s 2018 '000s 17 3 539 15 574 2019 '000s 2018 '000s 8,883 601 436 8,520 578 365 9,920 9,463 This is stated after charging: Auditors' remuneration Auditors' non audit remuneration Depreciation of tangible fixed assets 9. Employment costs Wages and salaries Social security costs Pension contributions Agency costs of 621k (2018: 599k) are included in the above. The average number of employees in the year was 430 (323 Full time equivalent) (2018: 428 (326 full-time equivalent)). Trustees' funds paid for 8 employees in the year (fte 3.95) (2018: 8 heads 3.43 fte) at a total cost of 207,261 (2018: 209,046) 2019 123 165 33 3 2 323 School Social Care Support Fundraising Other 2018 122 162 34 3 2 Average number of full time equivalent employees by area: 326 Emoluments Of Highest Paid Employees Number of Employees 2019 2018 60k-70k 70k-80k 80k-90k 90k-100k 1 0 1 1 1 0 1 1 Pension Contributions 2019 2018 '000s '000s 0 0 14 15 0 0 14 15 During the year we performed a review to determine `active' volunteer numbers. As at the end of the financial year we have over 66 active volunteers who help across our services. They provide support in a variety of ways in School, Social Care, support services and governance. Chailey Heritage Foundation 57 10. Pension and similar obligations 1. Teachers' Pension Scheme (TPS) The School participates in the Teachers' Pension Scheme (England and Wales)(the TPS") for its teaching staff. The TPS is a defined benefit pension scheme run by the Teachers' Pension Agency. The scheme is a multi-employer scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the Charity. Accordingly, contributions are accounted for as if the scheme were a defined contribution scheme. The regulations under which TPS operates are the Teachers' Pension Regulations 2010, as amended. Membership is automatic for full time teachers and from 1 January 2007 automatic too for teachers and lecturers in part-time employment following appointment or change in contract. Teachers are able to opt out of the TPS. Retirement and other pension benefits including annual increases payable under the Pension (Increases) Acts are paid out of monies provided by Parliament. Under the unfunded TPS, teachers' contributions are on a `pay-as-you-go' basis and employers' contributions are credited to the Exchequer under arrangements governed by the above Act. The latest valuation report in respect of the TPS was prepared at 31 March 2016 and issued in March 2019. A copy of this can be found on the Department for Education website. The employer contribution rate for the period 1st September 2018 to 31st August 2019 was 16.48%, including a 0.08% employer administration charge.The next revision to the employer contribution rate took effect from 1st September 2019 with an increase to 23.68% , including a 0.08% employer administration charge. The average number of employees in the scheme is 21 (2018: 18). The pension charge for the year includes contributions payable to the TPS of 128,402 (2018: 117,188) and at the year-end 17,692 (2018: 15,451) was accrued in respect of contributions to this scheme. 2. Chailey Heritage Foundation Group Personal Pension Plan The Charity's current main scheme is a Group Personal Pension plan (GPPP) with Aviva, who hold the assets of the GPPP. This is a defined contribution scheme and as such the School's responsibility is to pay the agreed level of contributions for eligible staff who decide to join. The payment of agreed contributions by the School effectively becomes part of the employees' contract of employment. All new staff, except teachers (unless they have opted out of TPS), are eligible to join this scheme after completion of three month's service and having attained the age of 18 years. For the period from 1 September 2018 to 31 August 2019, the employer's contribution was 7.5% (2018: 7.5%) for the main scheme. From April 2019 the employer increased the auto-enrolment rate from 3% to 4%. There are no guaranteed levels of pension benefits from these schemes. The average number of employees in the scheme is 365 (2018: 298). The pension charge for the year was 307,850 (2018: 236,039). At the year end there were accrued contributions due of 49,979 (2018: 46,728). 3. NHS Pensions Scheme The NHS Pensions Scheme has been in operation since the start of the NHS in 1948 and is administered by the NHS Pensions Agency. The Scheme is a statutory occupational pension scheme based on membership during NHS employment and final pensionable pay. The Charity no longer has any members in this scheme. For the period from 1 September 2018 to 31 August 2019, the employer's contribution was 14.38% (2018: 14.38%). No new members are accepted into this scheme and the liability in respect of previous employees lies with the NHS. The last remaining member retired in April 18. The pension charge for the year was 0 (2018: 1,706). At the year end there were no accrued contributions due (2018: 0). 58 Annual Report and Accounts 2018/19 11. Trustees, Governors and Key Management Personnel None of the Trustees, Governors or persons connected with them received any remuneration or other benefits from the Charity during the year (2018: nil). No expenses were reimbursed to the Trustees or Governors during the year (2018: nil). Key management comprises the Chief Executive and other members of the Senior Management team. The total employee emoluments of the charity's key management personnel were 336k (2018: 328k). 12. Tangible Fixed Assets Leasehold Property, Buildings and Freehold Land improvements '000s '000s Computers, Furniture, Equipment and Motor Vehicles '000s Total '000s Cost or valuation 1 September 2018 Additions Disposals 18 - 17,612 1,950 - 1,879 759 - 19,509 2,709 - 31 August 2019 18 19,562 2,638 22,218 - 5,955 504 6,459 1,687 35 1,722 7,642 539 8,181 Net book values 31 August 2019 18 13,103 916 14,037 31 August 2018 18 11,657 192 11,867 Depreciation 1 September 2018 Charge for year Disposals 31 August 2019 The leasehold property represents the buildings on the site at Chailey which is leased from Sussex Community Foundation NHS Trust. The lease currently runs until 29 June 2092 and, under its terms, a peppercorn rent is paid but the Charity is responsible for all maintenance of the site and buildings (excluding the Chapel for which there is a separate endowment independent of the Charity). The Trustees are currently in advanced discussions with Sussex Community Foundation NHS Trust to extend the length of the lease. In the unlikely event that the Charity was to discontinue its activities,the property (including all investment in the site by the Charity) would revert to Sussex Community NHS Trust as lessor for no consideration. Chailey Heritage Foundation 59 13. Fixed Asset Investments 2019 '000s 2018 '000s Investments held at 1 September Funds withdrawn Net income (withdrawn)/reinvested Net unrealised and realised (losses)/gains in the year 3,738 (150) (26) (29) 3,853 (250) 29 106 Market value at 31 August Historical cost at 31 August 3,533 3,032 3,738 3,105 Investments at market value consist of: Listed Investments registered in UK Listed Investments registered outside UK Cash held as part of investment portfolio 2,752 699 82 2,571 1,174 (7) All investments are listed apart from the 1 unlisted investment held in Chailey Heritage Trading Company Limited, a subsidiary company (note 2c). The investment portfolio is held primarily for the long term sustainability of the Charity, having regard to the financial risks inherent in operating the Charity - for example those arising from undue fluctuations in income, pupil numbers and costs - and to provide additional income to the Charity. 14. Debtors 2019 '000s 1,521 89 288 1,643 83 551 1,898 Fees Prepayments Accrued income 2018 '000s 2,277 With the exception of prepayments, all debtors are financial instruments and are measured at present value. 1.0m of 2019 (2018: 1.4m) debtors relates to invoices raised in August in respect of the next financial year and are treated as deferred income (note 17). 15. Cash at bank Cash and deposits represent (1) working capital balances on current accounts held primarily for the dayto-day operations of the Charity and (2) amounts invested on the money market with prime institutions which are required in the short and medium term for capital projects and to maintain an adequate level of general liquidity. 60 Annual Report and Accounts 2018/19 16. Creditors - Due within one year 2019 '000s 150 263 36 404 1,468 141 302 64 672 1,639 2,321 Taxation and social security Trade creditors Other creditors Accruals Deferred income 2018 '000s 2,818 Included within `Other Creditors' are accrued pension contributions of 68k (2018: 62k). Included within `Deferred Income' is Education Funding Agency funding for Autumn Term received in August 104k (2018: 76k) and fees invoiced in August relating to the Autumn Term. Deferred income brought forward was all utilised during the current year. All creditors are financial instruments and are measured at present value. 17. Deferred income Deferred income comprises 2019 '000s 2018 '000s Balance at 1 September Amount released to incoming resources Amount deferred in the year (note 16) 1,639 (1,639) 1,468 1,331 (1,331) 1,639 1,468 1,639 Net Current Assets '000s 2019 Total '000s Balance at 31 August 18. Analysis of Net Assets by Fund Year at 31 August 2019 Tangible Fixed Assets Investments '000s '000s Restricted funds Unrestricted funds: Designated funds Fixed assets fund General funds 2,903 - 847 3,750 11,134 - 3,533 579 (473) 579 11,134 3,060 14,037 3,533 953 18,523 Chailey Heritage Foundation 61 Year at 31 August 2018 Tangible Fixed Assets Investments '000s '000s Restricted funds Unrestricted funds: Designated funds Fixed assets fund General funds Net Current Assets '000s 2018 Total '000s 797 - 1,773 2,570 11,070 - 3,738 781 (626) 781 11,070 3,112 11,867 3,738 1,928 17,533 19. Analysis of Charitable Funds a DfE grants b Funds towards equipment or Appeals Fixed assets purchased with Restricted monies: Wheelchairs Hoists d Dream Centre e Other Incoming resources '000s Resources expended '000s Transfers '000s Balance 31 August 2019 '000s 29 1,744 37 1,260 (120) (66) (2,037) 847 1,773 Restricted Funds Balance 1 September 2018 '000s 1,297 (120) (2,103) 847 5 30 706 56 797 2,570 1,297 (1) (3) (2) (6) (126) (4) (27) 2,197 (54) 2,112 9 2,903 2,903 3,750 c Total Restricted funds a. he `DfE grants' received under the Devolved Formula Capital scheme have been spent on T improvements to the School and transferred out to offset the expenditure. b. omprises donations received towards specific capital projects/items eg Dream Centre, and transferred C out to reflect those amounts spent on the build to date. c.New equipment which has been specifically fundraised for. d.The Dream Centre build is complete and fit out taking place with costs being capitalised. e.Comprises minibuses purchased with restricted funds and developments to outside play areas. 62 Annual Report and Accounts 2018/19 Balance 1 September 2018 '000s Incoming resources '000s Resources expended '000s Transfers '000s Balance 31 August 2019 '000s Designated fund Fixed asset fund General fund 781 11,070 3,112 12,309 (167) (539) (11,784) (35) 603 (577) 579 11,134 3,060 Total Unrestricted funds 14,963 12,309 (12,490) (9) 14,773 Unrestricted funds Incoming resources above include the net unrealised and realised gains on investments. Designated Fund: The 579k represents the current balance of the funds allocated by the Trustees for professional fees and other strategic capital projects,as well as donations received but not spent as at year end. All designated funds are expected to be used within two years. Fixed Asset Fund: This represents the net book value of the Charity's land,buildings and equipment. Total tangible assets of 14,037k are shown in the Charity's balance sheet and are represented by restricted funds of 2,903k and unrestricted funds of 11,134k. They are analysed in note 12 on page 58. The transfer in of 603k to unrestricted fixed asset funds is the unrestricted additions in the financial year. General Fund: The unrestricted general fund of 3,060k is held for the Charity's day-to-day working capital, and to meet other immediate and future investment needs in its services, buildings and equipment. It is also to ensure continuity of the Charity's services going forward, and to cover risks beyond those reasonably covered by insurance. The transfer out of 577k is the net impact of the transfers between the Fixed Asset Fund, the Designated Fund and Restricted Fund. 20. Financial Commitments The charity has no non-cancellable operating leases at year end 2019 (2018: none). 21. Capital Commitments At the balance sheet date the Charity had 187k commitments (2018: 1,676k) in respect of building works relating to the Dream Centre. 22. Legacies As at 31 August 2019, the Charity had been notified of ten (2018: seven) new legacies where payment was not received by that date. No account has been taken of these as the amounts receivable cannot be determined with any reliability. Chailey Heritage Foundation 63 23. Control The charitable company is under the control of its members. No one member has sufficient voting rights to control the charitable company. 24. Related Party Transactions There were no related party transactions in the year. 25. Post Balance Sheet Event The Trustees are in advanced discussions with the Landlord, Sussex Community Foundation NHS Trust, to extend the length of the lease. Chailey Heritage Foundation, a pioneering charity providing education, care and transition services for children and young people with complex physical disabilities and health needs. chaileyheritagefoundation chaileyheritagefoundation Chailey Heritage Foundation Haywards Heath Road North Chailey, Lewes East Sussex BN8 4EF chaileyheritagefoundation t: 01825 724444 e: office@chf.org.uk www.chf.org.uk Registered Charity No. 1075837 and Company limited by Guarantee No. 3769775 (England)