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2023-03-31-accounts

emh Care and Support Limited REPORT AND FINANCIAL STATEMENTS

For the year ended 31 March 2023

EMH CARE AND SUPPORT LIMITED REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Contents Page
Legal and Administrative Information 2
Trustees’ Annual Report 3 – 12
Statement of Trustee’s Responsibilities in respect of the Trustee’s Report and the Financial
Statements 13
Independent Auditor’s Report to the Trustees of EMH Care and Support Limited 14 – 17
Statement of Financial Activities 18
Balance Sheet 19
Cash Flow Statement 20
Notes to the Financial Statements 21 – 41

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EMH CARE AND SUPPORT LIMITED LEGAL AND ADMINISTRATIVE INFORMATION

FOR THE YEAR ENDED 31 MARCH 2023

TRUSTEES

Jim Holden – Chair (stood down September 2022)

Prof Amanda Ashton – Chair (from September 2022) Vandna Gohil (stood down September 2022) Patricia McCabe Margaret Coward Roger Merchant (appointed September 2022) Simon Ketteridge (appointed September 2022)

PRINCIPAL BANKER

National Westminster Bank Plc

5 Market Place Chesterfield S40 1TJ

AUDITOR

KPMG LLP

One Snow Hill Snowhill Queensway Birmingham B4 6GH

SECRETARY AND REGISTERED HEAD OFFICE

Joanne Tilley

Memorial House Whitwick Business Park Stenson Road Coalville Leicestershire LE67 4JP

emh Care and Support Limited is a company limited by guarantee (Registered Number 2488821) and also a registered charity (Registered Number 1001704).

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EMH CARE AND SUPPORT LIMITED TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The Trustees, who were also the directors, submit their annual report and audited financial statements for the year ended 31 March 2023.

Structure, Governance & Management

Background

emh Care and Support is a company limited by guarantee and a registered charity. The Trustees have paid due regard to the Charity Commission guidance on public benefit reporting in deciding what activities the charity has undertaken this year. The charity was incorporated on 4th April 1990. Its principal activities, aims and objectives as stated in the memorandum and articles of association are: -

Trading History

----- Start of picture text -----
2003 2016
Enable Housing EHA merged with
Association (EHA) ECHS into single legal
formed with ECHS entity and rebranded
as a wholly as emh care and
owned subsidiary support
1990
Enable Care & 2013
Homes Support EHA became a
(ECHS) formed wholly owned
subsidiary of East
Midlands
Housing Group
----- End of picture text -----

The consolidated accounts for emh group are available on its website www.emhgroup.org.uk .

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EMH CARE AND SUPPORT LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

Structure, Governance & Management (continued)

Committees and Control

The Group Board’s role is to set the strategic direction, uphold the values and provide the framework for decision making, performance improvement and standards of customer services. They are our highest decision-making body. Delivery of the Business Plan is delegated to the Trustees and day-to-day leadership is delegated to the Chief Executive and the Executive Management Team.

The following people served as trustees on our Board during the year: -

Trustee Board Meeting Attendance
Mr Jim Holden* 3/3
Ms Vandna Gohil* 3/3
Ms Patricia McCabe 5/5
Prof Amanda Ashton 4/5
Ms Margaret Coward 4/5
Mr Roger Merchant** 2/2
Mr Simon Ketteridge** 2/2

* resigned as a trustee in September 2022 ** joined as a trustee in September 2022

Appointment and Training of Trustees

Strong leadership is pivotal to delivering high quality services. Our trustees are carefully selected to bring a diverse range of skills and expertise in the areas that the organisation operates including the broad range of services that we deliver and the people and communities that we serve. Our trustees are subject to an individual annual appraisal. Trustees meet at least four times a year and are committed to continued development. On an annual basis we carry out a review of the effectiveness of our Board and this is independently reviewed every three years.

We have a robust recruitment and induction process for new trustees including spending time with our staff, at our schemes and with our customers in order to gain a full and complete view of the organisations culture, activities and challenges. Trustees are also encouraged to attend external training events to facilitate the undertaking of their role.

The trustees of the charity at the year-end are detailed on page 2 of these financial statements. The trustees are also the directors of the charity for the purposes of company law. In accordance with the Charities SORP & FRS 102 we disclose all payments made to trustees (no trustees are paid) and expenses reimbursed (no expenses were paid).

Stakeholder Engagement, Inclusion and Co-production

Co-production is the term used by organisations and increasingly by people using their services and their representatives to describe ways of involving people as equal partners in planning and designing their support and achieving agreed goals. A Co production plan for 2023 was submitted to the Board that includes various activities and projects that engages people using our services as partners in developing positive changes in services and the ways people are supported to live their lives. This includes the ways projects relate to local recruitment, the adoption Think Local Act Personal’s Making it Real Framework, developing new engagement workshops and groups that look at issues that matter to people such as supporting people develop relationships and friendships, person centred planning and the development of a funding partnership with Travis Perkins to help people be more active in the community or create more accessible spaces in their homes. We are also looking at how we can make a commitment to people using our services so that they can access the information they need when they need it.

Volunteers

Our day services continue to support a growing list of supported volunteering activities. We are currently supporting volunteers with the following providers: Peak Rail, Matlock Farm Park, several local authorities, Peak

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EMH CARE AND SUPPORT LIMITED TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Structure, Governance & Management (continued)

Volunteers (continued)

Park, The National Trust, Dukes Barn, the Hurst Farm Project, Tibshelf Parish Council, Ashfield District Council, Notts and Derbyshire Adult Education, Chesterfield District Council, Derby University, Sports England, Mansfield Wildlife Rescue Centre and the National Trust. We are continuing in our work with Peak Rail to develop our facilities at the railway with a view to develop a volunteer centre on site. This year we have worked with Derby University, local colleges and schools providing volunteering and student placements in our day services and nursing homes.

Related Parties

Any connection between a trustee or senior manager with a customer or a customer’s representative must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. There were no such relationships at the year-end (2022: none).

Corporate Mission and Aims

The organisation strives to “be the best social housing and care business”. This is underpinned by our strong corporate values: -

Integrity We work to the highest ethical standards Diversity We respect others for who they are Openness We are honest and straightforward Accountability We are accountable to and influenced by our customers Clarity We are clear about what we are here to do and why Excellence We strive to be the best in everything we do

Charitable Activities

Our work predominantly centres on the provision of accommodation, care, support and activities for adults due to illness, disability or old age. We do this in a number of ways: -

Supported Housing

We manage circa 250 units specifically for adults with learning and/or physical disabilities or mental health issues who require support to live independently. We offer a range of accommodation to suit the diverse needs of our customers that can be anything from single occupancy dwellings to 3 or 4 people co-habiting.

We provide support to our customers to maintain their tenancy over and above the basic landlord service. This can include helping customers to pay their rent and other household bills, helping them to manage their finances including access to welfare benefits and helping them to look after their home and request repairs to the property or equipment from their landlord.

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EMH CARE AND SUPPORT LIMITED TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Charitable Activities (continued)

Supported Living

We provide care and support to adults with learning and/or physical disabilities or mental health issues to live a happy and fulfilled life. Each person has an individual, tailored package of care and can be anything from a few hours each week to 24-hour care 7 days a week. We currently support over 140 service users, providing around 9,270 hours of care every week.

The care and support we provide is varied and can include help with personal care, domestic tasks, taking part in hobbies and other social activities, meeting friends and family and going out into the community. Our services are regulated by the Care Quality Commission who ensures that we deliver a high quality, safe and compliant service to all of our customers.

Nursing and Care Homes

We own and manage 3 nursing homes providing residential accommodation and 24/7 care to our customers. Care is provided by qualified and skilled nursing and care staff who help our residents with their personal care, nursing and medical needs, social activities both within the home and out in the community. Each home is registered and regulated by the Care Quality Commission and currently has a ‘good’ rating.

Day Services and Social Enterprise

We manage 4 day centres supporting around 93 customers each week including our own residents and private customers. Over 220 support sessions are run every week providing valuable support to all our customers. We support a diverse range of people with a variety of impairments that include people with profound and multiple learning disabilities, communication difficulties and challenging reputations. Working with partners including Adult Care, Adult community Education, Local Authorities and Employment services we provide a range of support and opportunities including, one to one support, support to get out and about in the community, access to learning and

education and supported volunteering. We aim to improve life skills, knowledge, social interaction, independence and fulfilment.

We are working with a range of activity providers to support people lead more active lives. This includes a successful bid to Sports England for a grant of £10,000 to increase activity levels working for people using our day services and the wider community. In June 23 we hosted an activity day in Matlock attended by nearly 90 disabled people and their supporters, and we are planning another event in Chesterfield partnering with the local authority and the leisure centre where we expect even greater support and interest. On the back of last year’s event the leisure centre established 2 learning disability activity sessions per week that have been running since January 23.

Extra Care

Our extra care schemes provide residential accommodation and support to people aged 55 year and over. Residents live independently in self-contained apartments or bungalows with domestic support, help with personal care and access to communal facilities such as a dining room and activity rooms. We currently provide a combination of Housing and Care support to over 300 units, some owned within the Group and some won on a tender basis. emh are committed to continuing to expand our extra care offer with a further 2 schemes in the pipeline. At 75 and 120 units, the schemes are in the early stages and are expected to complete in 2027/28.

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EMH CARE AND SUPPORT LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
Homes Care People Growth Resilience
----- End of picture text -----

Future Plans

The Group’s latest Strategy and Business Plan has been reviewed and updated to cover 2023-2026. To have greater certainty and control over our business, we’ve switched to having a three-year plan, rather than five years. The Board, in conjunction with our key stakeholders including our customers and staff have identified and updated 5 key themes which are the golden thread that run through all our objectives and projects and link back to our corporate mission and vision.

The long-term funding and sustainability of social care for people in later life and those with disabilities or who need extra support for any other reason remains one of Britain’s biggest challenges. Our care business needs to meet the highest standards of performance, quality and compliance and be financially viable.

Our focus remains meeting the needs of people with learning disabilities and people in later life. We will continuously monitor the quality and compliance of our services, ensuring that they remain safe, effective, caring, responsive and well-led. We are committed to meeting the highest standards of care for all of our service users, and to ensuring that they enjoy the best possible quality of life.

Our objectives to deliver this are: -

Developing our Services

As per the Care and Support Strategy our key focus remains meeting the needs of people with learning disabilities and people in later life. We are committed to meeting the highest standards of care for all of our service users, and to ensuring that they enjoy the best possible quality of life.

Working with Leicester City Council we continue to manage the contract for 14 units of temporary accommodation in Leicester providing housing and support for single and childless couples.

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EMH CARE AND SUPPORT LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

Developing our Services (continued)

We remain longstanding members of key frameworks and are working closely with partners to maintain and develop those relationships.

The delivery of care to older people is a strategically important part of our service offering and recognises the growing crisis in older person’s services due to longer lifespans, growing population and chronic under-investment from central and local government, we are pleased to continue to be part of the solution. emh has five extra care schemes that are operational at present, St

Mary’s Lutterworth, Oak Court Blay, Waterside Court Loughborough, Wrights Court Northampton and Springfields Ashby de la Zouch. Our Development Strategy supports the provision of two further extra care schemes as part of our commitment to delivering 10% supported housing within our programme.

Through our partnership work we have identified two opportunities to deliver extra care schemes and continue to progress these. The first scheme is in Leicester City and will provide 75 extra care homes with associated facilities. It is based on an intergenerational model with a mix of working age adults and older people with care and support needs. The second scheme is in Blaby, scheme of 120 homes with associated facilities. Our approach is based on partnership and collaboration with key stakeholders to ensure we design quality schemes integrated within the local community.

Regulation

All our services are now rated as good by our regulator, the Care Quality Commission (CQC). The CQC uses the following rating system: -

Outstanding

The service is performing exceptionally well.

Good

The service is performing well and meeting our expectations.

Requires improvement

The service isn’t performing as well as it should be and we have told the service how it must improve.

Inadequate

The service is performing badly and we’ve taken action against the person or organisation that runs it.

During their inspections the CQC seek to answer 5 key questions about the service: -

  1. Are they safe? – you are protected from abuse and avoidable harm

  2. Are they effective? - your care, treatment and support achieves good outcomes, helps you to maintain quality of life and is based on the best available evidence

  3. Are they caring? – staff involve and treat you with compassion, kindness, dignity and respect

  4. Are they responsive to people’s needs? – services are organised so that they meet your needs

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EMH CARE AND SUPPORT LIMITED

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Regulation (continued)

  1. Are they well-led? – the leadership, management and governance of the organisation make sure its providing high-quality care that’s based around your individual needs, that it encourages learning and innovation, and that it promotes an open and fair culture.

Our registered services are rated good by the CQC with the exception of supported living as a number are yet to be inspected.

Financial Review & Reserves Policy

The charity generated £18.2m of income during the year, a slight decrease of £0.3m from the prior year. Support income in relation to the pandemic has reduced significantly whilst a property disposal in year has increased the income.

99% of our income is generated through our charitable activities. This has increased from 97% in the previous year as less funding has been received in relation to Covid-19 which is a non-charitable activity. As with previous years a small amount of income was generated from non-charitable activities including income from our social enterprise.

All of our income is unrestricted and is used by emh care and support for its general purpose to fulfil its charitable objectives. The chart below shows the main sources of income during the year: -

The majority of our income is spent on delivering the services and maintaining our properties. Our largest area of expenditure remains on the nurses, support workers and other staff directly involved in the delivery of front-line services who are the back-bone of our organisation.

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EMH CARE AND SUPPORT LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

Financial Review & Reserves Policy (continued)

Running costs and overheads of £19.6m were incurred in the year, £0.5m higher than in 2022. This includes significant additional costs in relation to the high level of care provided. A resource shortage in the care sector has led to increased staffing costs. The chart below shows the main expenditure areas:

Whilst we aim to make a small surplus each year to reinvest back into capital maintenance and service improvement initiatives, our Statement of Financial Activities shows a deficit for the year of (£1,475k) (2022: (£539k) deficit). This is the second year in deficit as we recover from the effects of the pandemic and the resource scarcity in the sector. This deficit includes an increase in pension liabilities of £106k following the reassessment by the actuary. Strategic plans are in place to mitigate these losses in the future.

2023 has been another challenging year and balancing quality services with financial viability will continue to be a key focus of the organisation with our ultimate aim being for each service area to at least cover its costs. We continue to develop our financial management culture, closely monitor financial performance against budget and explore opportunities to expand the service where it is financially beneficial to do so.

The organisation aims to balance having sufficient reserves to continue to deliver our services in challenging times whilst maximising the resources available for charitable purposes. The trustees consider it prudent to hold in reserve a minimum of 3 months operating expenditure to cover payments to staff, service users and major contracts.

The trustees also accept that there is always an inherent risk that the charity could lose a significant contract(s) and consider it prudent to hold in reserve sufficient amounts to cover any redundancy costs that may occur as a result. Consideration has also been taken to cover the possibility that a service becomes unviable due to increased costs and reduced income however may be crucial to those we support. Finally the early replacement of components in our properties requires a prudent approach.

At the end of the financial year the organisation had fixed assets of £8.8m (2022: £9.5m), net current assets of £6.7m (2022: £7.5m) and total funds of £14m (2022: £15.5m). Whilst the strength of the financial position has been eroded slightly in the current year the results still indicate a healthy position going in to the next financial year. Cash balances have decreased by £0.2m over the year.

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EMH CARE AND SUPPORT LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

Risk

The main risks and uncertainties faced by the Group are considered by a Risk Panel which includes the Executive Management Team. The Risk Panel reports to the Group Audit Committee. The Board receives a summary of key strategic risks associated with the delivery of the Business Plan based on risk appetite. The Board review and update our risk appetite on an annual basis, ensuring it is aligned with our Risk Strategy.

A comprehensive risk map is used to record risks, assess their likelihood and impact and highlight key controls in place to manage and mitigate risks. It acts as an early warning system and is refreshed at each Risk Panel and Audit Committee meeting. Emerging risks are also captured, closely monitored and escalated onto the risk map as appropriate.

The Care and Support environment remains challenging and uncertain with the ongoing impacts of COVID19, resource scarcity, reduced funding, stronger regulation, the personalisation agenda and safeguarding risks. We believe that we have the control systems in place to identify and mitigate against these risks and have a targeted programme of internal audits. A selection of the key risks faced by the organisation can be found in the consolidated accounts of our parent company; emh group which can be found at www.emhgroup.org.uk.

As with many providers in our sector the current environment has had a significant impact on the services we deliver and how we deliver them. The ever changing landscape has posed a significant risk not only financially and operationally but to staff and service user welfare. We maintained our new working practices with high service standards and continued to access funding where possible to support with increased running costs. As we emerge from the pandemic the landscape is continually monitored and risks identified and mitigated where possible. Challenges in the coming year have been acknowledged and plans are in place to move the services forward and improve the financial position where possible.

The Charity has sufficient financial resources based on forecasts and current expectations of future sector conditions. As a consequence, the Trustees believe that the Charity is well placed to manage their business risks successfully. The Trustees has a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The Trustees therefore continue to adopt the going concern basis in preparing these financial statements.

Employment of People with Disabilities

The charity’s policy is to give full and fair consideration to applications for employment made by people with disabilities, having regard to their particular aptitudes and abilities. People with disabilities receive appropriate training to promote their career development within the charity. Employees who become disabled are retained in the existing posts where possible or retrained for suitable alternative posts.

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EMH CARE AND SUPPORT LIMITED TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Grants and Donations

During the year the charity made no charitable donations (2022: £nil).

The charity has no specific grant making policies; however, all grants are considered independently by the Board of Trustees.

Approval

The trustees confirm that they are approving the strategic report in their capacity as the charity’s trustees and it is signed on their behalf by: -

J.Tilley

J.Tilley (Sep 7, 2023 12:49 GMT+1)

JOANNE TILLEY

Secretary 28[th] July 2023

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EMH CARE AND SUPPORT LIMITED

STATEMENT OF TRUSTEES’ RESPONSIBILITES IN RESPECT OF THE TRUSTEES’ ANNUAL REPORT AND THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law they have are required to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the excess of income over expenditure for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to auditor

The directors who held office at the date of approval of this directors’ report confirm that, so far as they are each aware, there is no relevant audit information of which the Association’s auditor is unaware; and each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the Association’s auditor is aware of that information.

On behalf of the Board of Directors

Amanda Ashton

Amanda Ashton (Sep 7, 2023 17:14 GMT+1) Amanda Ashton Chair 28[th] July 2023

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EMH CARE AND SUPPORT LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF EMH CARE AND SUPPORT LIMITED FOR THE YEAR ENDED 31 MARCH 2023

Opinion

We have audited the financial statements of emh Care and Support Limited (“the charitable company”) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement and related notes, including the accounting policies in note 2.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the Charitable company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Going concern

The Trustees have prepared the financial statements on the going concern basis as they do not intend to liquidate the charitable company or to cease its operations, and as they have concluded that the charitable company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

In our evaluation of the Trustees’ conclusions, we considered the inherent risks to the charitable company’s business model and analysed how those risks might affect the charitable company’s financial resources or ability to continue operations over the going concern period.

Our conclusions based on this work:

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the charitable company will continue in operation.

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EMH CARE AND SUPPORT LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF EMH CARE AND SUPPORT LIMITED FOR THE YEAR ENDED 31 MARCH 2023

Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

As required by auditing standards, we perform procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, in particular:

We did not identify any additional fraud risks.

In determining the audit procedures we took into account the results of our evaluation and testing of the operating effectiveness of the Charitable company-wide fraud risk management controls.

We also performed procedures including:

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EMH CARE AND SUPPORT LIMITED INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF EMH CARE AND SUPPORT LIMITED

FOR THE YEAR ENDED 31 MARCH 2023

Fraud and breaches of laws and regulations – ability to detect (continued)

Identifying and responding to risks of material misstatement related to compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the Trustees and other management (as required by auditing standards), and discussed with the Trustees and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the charitable company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the charitable company is subject to other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety and data protection laws, recognising the regulated nature of the charitable company’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

Trustees’ report

The Trustees are responsible for the Trustees’ report. Our opinion on the financial statements does not cover that report and we do not express an audit opinion thereon.

Our responsibility is to read the Trustees’ report and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:

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EMH CARE AND SUPPORT LIMITED INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF EMH CARE AND SUPPORT LIMITED

FOR THE YEAR ENDED 31 MARCH 2023

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report to you if, in our opinion:

We have nothing to report in these respects.

Trustees’ responsibilities

As explained more fully in their statement set out on page 13, the Trustees are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 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 they either intend to liquidate the Charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities

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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not 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 the financial statements.

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.

The purpose of our audit work and to whom we owe our responsibilities

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 anyone other than the Charitable company and the Charitable company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Victoria Sewell (Senior Statutory Auditor)

for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants Suite 23 BLOCK Royal William Yard Plymouth PL1 3RP

15 September 2023

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EMH CARE AND SUPPORT LIMITED

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2023

2023 2023 2023 2022
Unrestricted Restricted Total Total
Funds Funds Funds Funds
Note £000 £000 £000 £000
Income from:
Income from Charitable Activities 3 18,036 - 18,036 17,957
Other income 4 212 - 212 578
Total Incoming Resources 18,248 - 18,248 18,535
Resources Expended
Expenditure on:
Charitable activities: 3 19,555 11 19,566 19,033
Other Expenditure 5 51 - 51 46
Total Resources Expended 19,606 11 19,617 19,079
Remeasurement of Social Housing Pension
Scheme 8 (106) - (106) 5
Net movement in funds (1,464) (11) (1,475) (539)
Funds brought forward at 1 April 2022 14,768 742 15,510 16,049
Funds carried forward at 31 March 2023 13,304 731 14,035 15,510

The results shown above are all derived from continuing activities.

The accompanying notes form part of these financial statements.

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EMH CARE AND SUPPORT LIMITED BALANCE SHEET

AS AT 31 MARCH 2023

EMH CARE AND SUPPORT LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
2023 2022
Note £000 £000
Fixed assets
Housing properties 11 7,825 7,893
Other fixed assets 11 968 1,563
8,793 9, 456
Current assets
Trade and other debtors 13 1,600 2,133
Cash and cash equivalents 6,930 7,131
8,530 9,264
Creditors:amounts fallingdue within oneyear 14 (1,848) (1,718)
Net current assets 6,682 7,546
Total assets less current liabilities 15,475 17,002
Creditors:amounts falling due after more than one year 15 (703) (712)
Provision for liabilities
Other provisions 17 (78) (113)
Pension liability 8 (659) (667)
Net assets 14,035 15,510
Funds
Unrestricted 18 13,304 14,768
Restricted 19 731 742
14,035 15,510

The accompanying notes form part of these financial statements.

These financial statements were approved by the Board on 28 July 2023 and were signed on its behalf by:

J.Tilley

Amanda Ashton

Amanda Ashton (Sep 7, 2023 17:14 GMT+1) J.Tilley (Sep 7, 2023 12:49 GMT+1) Amanda Joanne Ashton Tilley Chair Secretary

Page | 19

EMH CARE AND SUPPORT LIMITED STATEMENT OF CASHFLOWS

FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Note £000 £000
Net cash inflow/(outflow) from operating
activities 24 (671) 357
Cash Flows from Investing Activities
Interest received 2 -
Purchase of tangible assets (137) (157)
Receipts from sale of assets 600 -
Cashprovided by (used by) Investing Activities 465 (157)
Cash Flows from Financing Activities
Interest received 5 5
Cashprovided by Financing Activities 5 5
Reconciliation of net cash flow to movement in net funds
(Decrease)/increase in cash in the period (201) 205
Cash and Cash equivalents at 1 April 7,131 6,926
Cash and Cash equivalents at 31 March 6,930 7,131
At 1 At 31
April Cash March
2022 Flows 2023
£000 £000 £000
Analysis of Cash and Cash equivalents
Cash at bank and in hand 7,131 (201) 6,930
Total Cash and Cash equivalents 7,131 (201) 6,930

The accompanying notes form part of these financial statements.

Page | 20

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1 Constitution

emh Care and Support Limited is a company limited by guarantee (registered number 2488821). At 31 March 2023, there was 1 member whom on the event of winding up has undertaken to contribute to an amount not exceeding £1. The company is also a registered charity (registered number 1001704).

2 Principal Accounting Policies

The financial statements of the charity are prepared in accordance with Financial Reporting Standard 102 - the applicable financial reporting standard in the UK and Republic of Ireland (FRS 102) and the Statement of Recommended Practice: Accounting and Reporting by Charities Update 2019. The principal accounting policies adopted in the preparation of the financial statements are as follows:

The presentation currency of these financial statements is sterling. All amounts have been rounded to the nearest £1,000.

The Charities ultimate parent undertaking, East Midlands Housing Group Limited includes the charity in its consolidated financial statements. The consolidated financial statements of East Midlands Housing Group are available to the public and may be obtained at www.emhgroup.org. In these financial statements, the charity is a qualifying entity and has applied the exemptions available under FRS 102 in respect of the following disclosures:

Key Management Personnel compensation; and

Related Parties note.

Going Concern

The financial statements have been prepared on a going concern basis which the trustees consider to be appropriate for the following reasons.

The Charity prepares a 30-year business plan which is updated and approved on an annual basis. The most recent business plan was approved in June 2023 by the Board. As well as considering the impact of a number of scenarios on the business plan the Board also adopted a stress testing framework against the base plan.

The board, after reviewing the charity budgets for 2023/24 and the charity's medium term financial position as detailed in the 30-year business plan, is of the opinion that, taking account of severe but plausible downsides, the charity has adequate resources to continue in business for the foreseeable future. In order to reach this conclusion, the Board have considered:

Page | 21

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2 Principal Accounting Policies (continued)

Going Concern (continued)

Consequently, the Trustees are confident that the Charity will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

Incoming resources

All incoming resources are included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received.

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.

Resources expended

Expenditure is recognised on an accrual basis as a liability when incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.

• Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

• Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.

• All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis.

Page | 22

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2 Principal Accounting Policies (continued)

Housing properties

Costs include the cost of acquiring land and buildings, directly attributable development costs, interest at the average cost of borrowing for the development period and expenditure incurred in respect of improvements which comprise the modernisation and extension of existing properties.

Depreciation

Depreciation is charged to the profit and loss account on a straight-line basis over the estimated useful lives of each component part of housing properties. Land is not depreciated. The estimated useful lives are as follows: -

years
Structure 50-100
Boilers 15 years
Kitchens 20 years
Windows and doors 30 years
Roofs 50 years
Bathrooms 30 years
Other components 30 years

Leasehold properties are depreciated over the useful lives above, or the length of the lease, whichever is the shorter period.

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant changes since the last annual reporting date in the pattern by which the charity expects to consume an asset's future economic benefits.

Non component works to existing properties

The amount of expenditure incurred, which relates to an improvement, which is defined as an increase in the net rental stream or the life of a property, has been capitalised. Expenditure incurred on other major repairs, cyclical and day-today repairs to housing properties is charged to the profit and loss account in the period in which it is incurred.

Other tangible fixed assets

Other tangible fixed assets include those assets with an individual value in excess of £1,000.

Depreciation is provided evenly on the cost of other tangible fixed assets to write them down to their estimated residual values over their expected useful lives. No depreciation is provided on freehold land. The principal annual rates used for other assets are:

Office furniture and equipment 10%-33%
Motor vehicles 25%
Housing accommodation furniture and equipment 10%
Freehold office premises 2%

Page | 23

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2 Principal Accounting Policies (continued)

Social housing grant

Social housing grant is not specifically addressed under the Charity SORP and instead the Housing SORP is followed. This provides consistency across the Group and is more applicable to the activities carried out by the charity.

Social housing grant is initially recognised at fair value as a long-term liability, specifically as deferred grant income and released through the profit and loss as income over the life of the structure of housing properties in accordance with the accrual method applicable to social landlords accounting for housing properties at cost.

On disposal of properties, all associated social housing grant is transferred to the Recycled Capital Grant Fund (RCGF) until the grant is recycled or repaid to reflect the existing obligation under the social housing grant funding regime.

Impairment excluding stocks and deferred tax assets

Financial assets (including trade and other debtors)

A financial asset not carried at fair value through profit and loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. For financial instruments measured at cost less impairment an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the Charity would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. Impairment losses are recognised in profit. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit.

Fixed Assets

The Charities internal controls are designed to identify where the value of property, plant and equipment and work in progress as held on the Statement of Financial Position is more than the lower of cost or net realisable value. Where there is evidence of impairment, fixed assets are written down to the recoverable amount, this is likely to be the value in use of the asset based on its service potential. Where an asset is currently deemed not to be providing service potential to the charity, its recoverable amount is its fair value less costs to sell. The resulting impairment loss is recognised as expenditure in income and expenditure.

Page | 24

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2 Principal Accounting Policies (continued)

Employee benefits

Defined benefit plans

A defined benefit plan is a post-employment plan other than a defined contribution plan. The Charity’s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. The fair value of any plans assets is deducted. The Charity determines the net interest expense on the net defined benefit liability for the period by applying the discount rate as determined at the beginning of the annual period to the net defined benefit liability taking account of changes arising as a result of contributions and benefit payments.

The discount rate is the yield at the balance sheet date on AA credit rated bonds denominated in the currency of, and having maturity dated approximating to the terms of the Charity’s obligations. A valuation is performed annually by a qualified actuary using the projected unit credit method. The Charity recognises net defined benefit plan assets to the extent that it is able to recover the surplus either through reduced contributions in the future or through refunds from the plan.

Changes in the net defined benefit liability arising from employee service rendered during the period, net interest on net defined liability, and the cost of plan introductions, benefit changes, curtailments and settlements during the period are recognised in surplus.

Remeasurement of the net defined benefit liability is recognised in other comprehensive income.

The Charity participates in The Pensions Trust Social Housing Pension Scheme and the NHS Pension Scheme.

The Pensions Trust Social Housing Pension Scheme

The Social Housing Pension Scheme (SHPS) is a multi-employer scheme which provides benefits to 500 non-associated employers. The Scheme is a defined benefit scheme in the UK. The assets of the scheme are held separately from the Charity.

The Scheme is classified as a 'last-man standing arrangement'. Therefore the charity is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the Scheme. Participating employers are legally required to meet their share of the Scheme deficit on an annuity purchase basis on withdrawal from the Scheme.

The NHS Pension Scheme

The scheme is an unfunded, defined benefit scheme that covers NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. The scheme is not designed to be run in a way that would enable members to identify their share of the underlying scheme assets and liabilities. Therefore, the scheme is accounted for as if it were a defined contribution scheme: the cost to the member of participating in the scheme is taken as equal to the contributions payable to the scheme for the accounting period.

Termination benefits

Termination benefits are recognised when the Charity is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the charity has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting date, then they are discounted to their present value.

Page | 25

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2 Principal Accounting Policies (continued)

Reserves

The charity maintains the level of reserves required to fulfil its objectives. The board of trustees monitors reserves at regular board meetings.

Funds

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for purposes. The aim and use of each designated fund is set out above in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with the specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Endowment funds represent those assets which must be held permanently by the charity, principally investments. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors and Provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

The Charity recognises a provision for annual leave accrued by employees as a result of services rendered in the current period and which employees are entitled to carry forward and use within the next 12 months. The provision is measured at the salary costs for the period of absence.

Financial Instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Page | 26

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2 Principal Accounting Policies (continued)

Key Judgements, Estimates and Assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the financial reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect on the amounts recognised in the financial statements.

The recoverability of rent arrears and trade debtors

The estimate for rent arrears and trade debtors relates to the recoverability of the outstanding balances at the reporting date. For rental arrears experience shows that the longer a debt is outstanding the greater the likelihood that the debt will not be recovered in full. Based on this a provision for bad and doubtful arrears debts is estimated based on 50% of the value of current tenant arrears and 100% of former tenant arrears. Trade Debtors are reviewed on an individual balance basis and a provision created for bad and doubtful debts based on the on the age and likely recoverability of the debt.

Impairment of property values

Reviews for impairment of housing properties are carried out when a trigger has occurred and any impairment loss in a cash generating unit is recognised by a charge to the Statement of Comprehensive Income. Impairment is recognised where the carrying value of a cash generating unit exceeds the higher of its net realisable value or its value in use. A cash generating unit is normally a group of properties at a scheme level whose cash income can be separately identified.

Factors taken into consideration in reaching the decision as to whether there are indicators of impairment of housing properties are;

No triggers for impairment have been identified.

Defined benefit pensions liabilities

The cost of defined benefit pension plans is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long-term nature of these plan, such estimates are subject to significant uncertainty. Further details are given in Note 8.

Page | 27

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
£000
£000
3 Charitable Activities
Income from Charitable Activities
Registered care funding
5,112
5,034
Supported living & day care contracts
11,069
10,750
Rental income & service charges
1,835
2,087
Amortised government grant
9
9
Other Charitable Income
11
77
Total Income from Charitable Activities
18,036
17,957
Expenditure on Charitable Activities
Care staff costs, including training
14,996
13,983
Service user allowances
84
89
Housing costs
991
1,121
Maintenance costs
501
676
Salaries & management costs
2,609
2,577
Registration fees
9
10
Professional fees
49
51
Depreciation and impairment
326
428
Bad Debts
49
44
Other costs
(59)
43
Total Expenditure on Charitable Activities
19,555
19,022
Restricted Funds
Depreciation and impairment
11
11
Write 0ffs
-
-
11
11
4 Other Income
Fixed asset disposal proceeds
600
-
Fixed asset cost of disposals
(464)
-
Gain on disposal of fixed assets
136
-
Interest Received
2
-
Other Income
74
578
Total Other Income
212
578

Page | 28

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
£000 £000
5 Other Expenditure
Interest Payable 17 15
Governance;
Professional Fees 34 31
Total Other Expenditure 51 46
6 Net Incoming Resources
Surplus of income over expenditure is arrived at after charging:
Depreciation & amortisation 337 440
Auditors’ remuneration 34 31
7 Staff numbers and costs

The average number of persons employed by the charity (including trustees who are not paid employees) during the year, analysed by category, was as follows:

2023 2022
Number Number
Care and support staff 415 406
Office Staff 46 58
Trustees 5 5
466 469
2023 2022
£000 £000
Staff costs for the above persons:
Wages and salaries 11,190 11,488
Social security costs 1,039 956
Pension costs 596 583
Termination Benefits 9 19
12,834 13,046

The Executive Director is employed by the parent company; East Midlands Housing Group Limited.

Details of Group Board Members pay is disclosed within the consolidated accounts of the parent company, East Midlands Housing Group Limited. The consolidated financial statements of East Midlands Housing Group are available at www.emhgroup.org.

Page | 29

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

8 Employee Benefits

The charity operates two defined benefit pension schemes.

Summary of the movement on pension scheme liabilities for the year ended 31 March 2023

The
Pensions
Trust -
SHPS		 The
Pensions
Trust -
Growth
Plan
£000
Net liability at 1 April 2022 667 2
Loss in the period charged to the profit & loss
account		 22 -
Loss in the period charged to other
comprehensive income		 106 -
Deficit contributionpaid (136) -
Net liabilityat 31 March 2023 659 2

The Pensions Trust - Social Housing Pension

Scheme

The charity participates in the Social Housing Pension Scheme (the Scheme), a multi-employer scheme which provides benefits to some 500 non-associated employers. The Scheme is a defined benefit scheme in the UK.

The Scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The last completed triennial valuation of the scheme for funding purposes was carried out as at 30 September 2020. This valuation revealed a deficit of £1,560m. A Recovery Plan has been put in place with the aim of removing this deficit by 31 March 2028.

The Scheme is classified as a 'last-man standing arrangement'. Therefore the charity is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the Scheme. Participating employers are legally required to meet their share of the Scheme deficit on an annuity purchase basis on withdrawal from the Scheme.

Page | 30

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

8 Employee Benefits (continued)

The Pensions Trust - Social Housing Pension Scheme (continued)

For accounting purposes, a valuation of the scheme was carried out with an effective date of 30 September each year. The liability figures from this valuation were rolled forward for accounting year-ends from the following 31 March to 28 February inclusive.

The latest accounting valuation was carried out with an effective date of 30 September 2022. The liability figures from this valuation were rolled forward for accounting year-ends from the following 31 March 2023 to 28 February 2024 inclusive.

The liabilities are compared, at the relevant accounting date, with the charity’s fair share of the Scheme’s total assets to calculate the charity’s net deficit or surplus.

2023
2022
£'000
£'000
Present values of defined benefit obligation, fair value of assets and defined benefit
asset (liability)
Fair value of plan assets
2,836
4,058
Present value of defined benefit obligation
(3,495)
(4,725)		 2023
2022
£'000
£'000
Present values of defined benefit obligation, fair value of assets and defined benefit
asset (liability)
Fair value of plan assets
2,836
4,058
Present value of defined benefit obligation
(3,495)
(4,725)
Defined benefit(liability)/asset to be recognised
(659)
(667)
Reconciliation of opening and closing balances of the defined benefit obligation
Defined benefit obligation at start of period
4,725
4,933
Expenses
5
5
Interest expense
130
104
Actuarial losses/(gains) due to scheme experience
64
175
Actuarial losses/(gains) due to changes in demographic assumptions
(9)
(79)
Actuarial losses/(gains) due to changes in financial assumptions
(1,301)
(299)
Benefitspaid and expenses
(119)
(114)
Defined benefit obligation at end ofperiod
3,495
4,725
Reconciliation of opening and closing balances of the fair value of plan
assets
Fair value of plan assets at start of period
4,058
4,148
Interest income
113
89
Experience on plan assets (excluding amounts included in interest income) - gain (loss)
(1,352)
(198)
Contributions by the employer
136
133
Benefitspaid and expenses
(119)
(114)
Fair value ofplan assets at end ofperiod
2,836
4,058
The actual return on plan assets (including any changes in share of assets) over the period from 31 March 2022 to 31
March 2023 was £1,239,000.
Defined benefit costs recognised in statement of comprehensive income (SOCI)
Expenses
5
5
Net interest expense
17
15
Defined benefit costs recognised in statement of
comprehensive income(SoCI)
22
20

Page | 31

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

8 Employee Benefits (continued)

The Pensions Trust - Social Housing Pension Scheme (continued)

The Pensions Trust- Social Housing Pension Scheme(continued)
2023 2022
£'000 £'000
Defined benefit costs recognised in other comprehensive income
Experience on plan assets (excluding amounts included in net interest cost) - gain/(loss) (1,352) (198)
Experience gains and losses arising on the plan liabilities -
(loss)/gain (64) (175)
Effects of changes in the demographic assumptions underlying the present value of the
defined benefit obligation - (loss)/gain 9 79
Effects of changes in the financial assumptions underlying the present value of the
defined benefit obligation -(loss)/gain 1,301 299
Total amount recognised in other comprehensive income -(loss)/gain (106) 5
Assets
Global Equity 53 779
Absolute Return 31 163
Distressed Opportunities 86 145
Credit Relative Value 107 135
Alternative Risk Premia 5 134
Emerging Markets Debt 15 118
Risk Sharing 209 134
Insurance-Linked Securities 72 95
Property 122 110
Infrastructure 324 289
Private Debt 126 104
Opportunistic Illiquid Credit 121 136
High Yield 10 35
Opportunistic Credit - 14
Cash 20 14
Corporate Bond Fund - 271
Long Lease Property 86 104
Secured Income 130 151
Liability Driven Investment 1,307 1,132
Currency Hedging 5 (16)
Net Current Assets 7 11
Total assets 2,836 4,058

None of the fair values of the assets shown above include any direct investments in the employer's own financial instruments or any property occupied by, or other assets used by, the employer.

Page | 32

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

8 Employee Benefits (continued)

The Pensions Trust - Social Housing Pension Scheme (continued)

Key Assumptions

Key Assumptions
2023 2022
% per % per
annum annum
Discount Rate 4.88 2.79
Inflation (RPI) 3.20 3.66
Inflation (CPI) 2.74 3.23
Salary Growth 3.74 4.23
75% of 75% of
Allowance for commutation of pension for cash at maximum maximum
retirement allowance allowance

The mortality assumptions adopted at 31 March 2023 imply the following life expectancies:

Life
expectancy
at age 65
(Years)
Male retiring in 2023 21.0
Female retiring in 2023 23.4
Male retiring in 2043 22.2
Female retiring in 2043 24.9

We were notified in 2021 by the Trustee of the Scheme that it has performed a review of the changes made to the Scheme’s benefits over the years and the result is that there is uncertainty surrounding some of these changes. The Trustee is seeking clarification from the Court on these items, and this process is ongoing with it being unlikely to be resolved before the end of 2024 at the earliest. It is estimated that this could potentially increase the value of the full Scheme liabilities by £155m. We note that this estimate has been calculated as at 30 September 2022 on the Scheme’s Technical Provisions basis. Until the Court direction is received, it is unknown whether the full (or any) increase in liabilities will apply and therefore, in line with the prior year, no adjustment has been made in these financial statements in respect of this.

The Pensions Trust - The Growth Plan

The charity participates in the scheme, a multi-employer scheme which provides benefits to some 638 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the charity to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the charity is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

Page | 33

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

8 Employee Benefits (continued)

The Pensions Trust - The Growth Plan (continued)

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions £3.312m per annum From 1 April 2022 to 31 January 2025: (payable monthly)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions
£11.243 per annum
From 1 April 2019 to 30 September 2025: (payable monthly and increasing by 3.0% each year on 1
April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the charity has agreed to a deficit funding arrangement the charity recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

2023
2022
£000
£000
Present Value of provision
Present value of provision at period end
2
2
Reconciliation of opening and closing provisions
Provision at start of period
2
3
Unwinding of discount factor (interest expense)
-
-
Deficit contribution paid
-
(1)
Provision at the end ofperiod
2
2

Page | 34

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
£000
£000
8 Employee Benefits(continued)
Assumptions
Rate of discountper annum
5.52%
2.35%

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield to discount the same recovery plan contributions.

9 Auditors Remuneration
Fees payable to the charity's auditor for the audit of the annual accounts 34 31
10 Taxation

The company is a registered charity and has no trading activities liable to taxation

Page | 35

EMH CARE AND SUPPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

11 Fixed Assets
Assets in the
Housing
Care and
Course of
properties
support
Housing Assets
Construction
for letting
properties
Total
£000
£000
£000
£000
Cost
1 April 2022
25
6,396
4,709
11,130
Replacement of Components
(25)
84
35
94
Disposals
-
(31)
-
(31)
31 March 2023
-
6,449
4,744
11,193
Accumulated depreciation
1 April 2022
-
1,540
1,380
2,920
Charge for year
-
102
60
162
Disposals
-
(31)
-
(31)
31 March 2023
-
1,611
1,440
3,051
Impairment
1 April 2022
-
-
317
317
31 March 2023
-
-
317
317
Net book value
31 March 2023
-
4,838
2,987
7,825
31 March 2022
25
4,856
3,012
7,893
Other Fixed Assets
Freehold
Offices
Leasehold
Offices
Fixtures,
Fittings
and
Equipment
Plant and
Vehicles
Total
£000
£000
£000
£000
£000
Cost
1 April 2022
930
863
436
173
2,402
Additions
-
-
44
-
44
Disposals
(674)
-
-
-
(674)
31 March 2023
256
863
480
173
1,772
Accumulated depreciation
1 April 2022
307
141
247
144
839
Charge for year
3
70
85
17
175
Disposals
(210)
-
-
-
(210)
31 March 2023
100
211
332
161
804
Net book value
31 March 2023
156
652
148
12
968
31 March 2022
623
722
189
29
1,563

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2023 2022 £000 £000

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

12 Impairment of Housing Assets

During the year emh Care and Support carried out a desktop review of its property portfolio and identified no triggers for impairment.

13 Debtors
Current tenant arrears 44 65
Less provision for bad and doubtful debts (27) (42)
Former tenant arrears 1 8
Less provision for bad and doubtful debts (1) (8)
Trade debtors 776 845
Less provision for trade debtors (87) (38)
Prepayments and accrued income 787 747
Other debtors 9 12
Amounts due from GroupCompanies 98 544
1,600 2,133

14 Creditors: amounts falling due within one year

Trade creditors 685 591
Rent received in advance 82 70
Accruals and deferred income 1,004 987
Other creditors 25 26
Pension deficit contributions 2 2
Amounts due to GroupCompanies 50 42
1,848 1,718
2023 2022
£000 £000
15 Creditors: amounts falling due after more than oneyear
Deferredgovernmentgrants(see note 16) 703 712
703 712

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EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

16 Deferred Government Grants

Social
housing
grant Total
£'000 £'000
At 1 April 2022 712 712
Released to income in theyear (9) (9)
At 31 March 2023 703 703
Opening Additional Provisions Closing
balance as Commitments reversed balance as
at 1 April made during during the at 31 March
2022 the year year 2023
17 Provision for Liabilities
Leave Pay 113 - (35) 78
113 - (35) 78

The leave pay provision represents holiday balances accrued as a result of services rendered in the current period and which employees are entitled to carry forward. The provision is measured as the salary cost payable for the period of absence.

Balance at Incoming Balance at
1 April 31 March
2022 Resources Transfers 2023
£000 £000 £000 £000
18 Unrestricted Funds
Retained Surpluses 14,768 (1,464) - 13,304
14,768 (1,464) - 13,304

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EMH CARE AND SUPPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Balance at Incoming Outgoing Balance at
1 April 31 March
2022 Resources Resources 2023
£000 £000 £000 £000
19 Restricted Funds
Property fund - NHS 644 - (9) 635
SEIF Capital Grant 98 - (2) 96
742 - (11) 731

20 Analysis of Net Assets between Funds

20 Analysis of Net Assets between Funds
Net
Tangible Current
Fixed
Assets Assets Total
£000 £000 £000
Restricted Funds 731 - 731
Unrestricted Funds 8,062 5,242 13,304
8,793 5,242 14,035

21 Contingent Liabilities

At 31 March 1999, freehold properties worth a total of £1,432,250 were transferred by the Secretary of State for Health to the charity. This value has been reflected as a donation in these financial statements. If following transfer, the use of any of these properties ceases to be the provision of residential and nursing care support and accommodation to the local public or the charity decides to sell the property, then the charity would be liable to pay back to the Secretary of State for Health an amount equal to the value at which the transfer at 31 March 1999 was made. The Secretary of State for Health has first option to purchase these properties.

Page | 39

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
£000 £000

22 Related party transactions

During the year emh Care and Support had the following intercompany recharge transactions with non-regulated entities within the emh group.

Sales to:
EMH Housing & Regeneration Ltd 457 577
Sales to EMH Housing & Regeneration are management charges for care and support services. These charges are made
at cost.
Purchases from:
East Midlands Housing Group Limited 1,167 1,220
EMH Housing & Regeneration Ltd 84 38

Purchases from East Midlands Housing Group are management charges for centrally supplied services (including Finance, ICT, HR). These charges are made at cost plus an appropriate margin. Purchases from EMH Housing & Regeneration are management charges for housing services and day-care services. These charges are made at an arm's length commercial rate.

At the end of the year emh Care and Support had the following intercompany balances with non-regulated entities within the emh group.

within the emh group.
Debtors
EMH Housing & Regeneration Ltd 98 544
Creditors
East Midlands Housing Group Limited 49 22
EMH Housing & Regeneration Ltd - 20
23 Ultimate Control

Ultimate control of the charity lies with the trustees and with East Midlands Housing Group who are responsible for the charity’s affairs. The consolidated financial statements of East Midlands Housing Group are available at www.emhgroup.org.uk

Page | 40

EMH CARE AND SUPPORT LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
£000 £000
24 Notes to the Cash Flow Statement
Reconciliation of net income / (expenditure) to net cash flow from operating activities
Net income for reporting period (as per the statement of financial activities) (1,475) (539)
Adjustments for:
Depreciation charges 337 440
(Gain) on disposal of assets (136) -
Interest Receivable (2) -
Interest Payable 17 15
Deferred government grants (9) (9)
Pensions costs less contributions payable (28) (139)
Grant abated - -
Decrease in debtors 532 348
Increase in creditors 128 302
Decrease in provisions (35) (61)
Net cash (outflow)/inflow from operating
activities (671) 357

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