ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 CONTENTS Refer8nce and administrative information Board report Auditors, report 9-13 Statement of Financial Activities 14 Balance Sheet 15 Cash Flow Statement 16 Motes lo the financial statements 17-32 Registered charity number - 1002224 Company number- 02540814 ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 REFERENCE AND ADMINISTRATIVE INFORMATION WORKING NAME Ara SOLICITORS Buckles Solicitors LLP Queen Square House 18-21 Queen Square BRISTOL BS14NH AUDITOR Burton Sweet Limited The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristo5 BS48 1UR BANKERS HSBC 62 George White Street Cabot Circus BRISTOL BS13BA PRINCIPAL ADDRESS King's Court King Street BRISTOL BS14EF KEY PERSONNEL Chief Executive Director of Finance & Company Secretary Director of Recovery & Resettlement Director of Gambling & Cymru Graham England Andrew Ridley Robbie Thornhill Helen Kovacs ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 BOARD REPORT The Board present their report for the year ended 31 March 2024. Due to the Board Members, stalus as directors under the Companies Act 2006, this report constitutes a director's report as required by the Companies Act 2006, and has been prepared taking advantage of the exemptions conferred by Part 15 of this act. The Board Members during the year and to date of approval of the accounts were.. A Collins (Chair, deceased April 2024) H Bellfield (resigned April 2023) D Thomas (Chair from April 2024) C Shepherd L Copsie S Malpass (resigned December 2023) J Hitchen (appointed September 2023) M Banissy (appoinled May 2024) D Eva (appointed September 2024) GOVERNING DOCUMENT The Charity was established in 1987 by Incorporation as a company limited by guarantee. Consequently, the governing instrument of the Charity is its Memorandum and Articles of Association. The Charity is registered with the Cliarity Commission under number 1002224. The Company registralion number is 02540814. CHARITABLE OBJECTS The Charity s objects are.. The reSief of those in need whose health is at risk or who are otherwise disadvantaged due to difficulties associated with mental health or detrimental use of or dependency on substances (including but not limited to alcohol and drugs of any kind) or detrimental behaviours (including but not limited to gambling) and the education of the public on such matters by such means as the trustees in their discretion think fit. PUBLIC BENEFIT Ara is one of the largest voluntary organisations providing addiction and mental healtli services in the South West and Wales. In 2023124 Ara offered a wide range of treatment and support lo benefit people with drugs, alcohol, gambling and mental healtli problems in Bristol, Nortli Somerset, Soutli Gloucestershire, Gloucestershire, Somerset, Cornwall and Wales including.. Housing support service - the largest single contracled service of its kind in Bristol providing accommodation and support lo over 250 people with drug and alcohol problems at any one time. A key element of the Bristol Homelessness Pathways service., ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 PUBLIC BENEFIT (continued) Prison Resettlement Services services that help people to resettle into appropriate accommodation on release from local prisons" Specialist Hoiising Support - Ara's team promotes tenancy sustainment and prevents homelessness for people with drug and alcohol problems. Somerset Step Together a front line service providing floating support services delivered in partnership with Second Step,. Gambling Counselling & Community Engagement - Ara is commissioned by GambleAware to provide counselling for people experiencing problems with gambling., Gambling Youth Education Ara works with young people and other professionals to improve understanding of the risks relating to gambling., Six to Ten Project - providing support for people affected by the gambling addiction of a family member (ended in September 2023); Gloucestershire Drug & Alcohol Service working in partnership with Change, Grow, Live (CGL) Ara staff work in local hospitals and provide housing advice (ended in April 2023). During the year, Ara charged for rent and household service charges. These charges were paid for by Local Authorities and service users respectively. Ara provides no private benefit. Board Members have considered public benefit guidance issued by the Charity Commission. ACHIEVEMENTS AND PERFORMANCE 2023124 Ara continues to have a major impact on the lives of those suffering from addiction and mental health problems. Key statistics are set out below: HOUSING SERVICE 248 people housed in our substance misuse accommodation. 89 % occupancy across our housing accommodation {business plan target 900/0). 97 % of service users were satisfied with the seNice. 91 % of service users would recommend the service to others. ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACHIEVEMENTS AND PERFORMANCE 2023124 (continued) SPECIALIST HOUSING SUPPORT 178 clients supported across the service of which 30 received psychosocial drug, alcohol and Mental health treatment. GAMBLING TREA TMENT & COMMUNITY ENGAGEMENT SER VICE 1758 clients seen an increase of 437 from the previous year, 98 % clients were satisfied with the service they received. 1000/0 of clients would recommend the service to somebody else. Average well-being score improved by 16 points because of Ara. 11004 people were offered information, advice and guidance about gambling harms. 2989 professionals benefited from Ara's 'Bet You Can Help Training,. 2 new offices were established on Wales. GAMBLING YOUTH EDUCA TION 1340 professionals were educated in our gambling awareness programme, 8430 young people took part in our programme to raise awareness of gambling harms. CRIMINAL JUSTICE SERVICES 199 people engaged with Ara's Prison Resettlement Service of which 116 were directly housed on release from prison, 85 % of clients felt more positive about their future after engaging with he service SOMERSETSTEP TOGETHER 108 people were supported by the service. 88 % of clients had a positive move on from the service. ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 ACHIEVEMENTS AND PERFORMANCE 2023124(continued) RISK MANAGEMENT The Board actively reviews the major risks that the Charity faces on a regular basis and believes that maintaining our free reseNes at the levels stated on page 7 will provide sufficient resources in the advent of adverse business conditions. The Board has approved a Risk Policy and Risk Register that identifies the main risks facing Ara, the potential impact of these risks, controls already in place to mitigate the risk and what action needs to be taken. Loss of a major contract is a potentially significant risk. To deal with this Ara has procedures to monitor contract performance and to ensure that strong working relationships are maintained with commissioners. The loss of key staff and Board Members is another potential risk facing the organisation. The documentation of all policies, procedures, and succession planning help to minimise the impact of this risk. Failure to provide the required level of support to clients and patients is also a potential signif icant risk. Client risk assessments and detailed policies and procedLires are in place to mitigate this risk. LOOKING AHEAD The coming year also brings several exciting opportunities with new and expanded services. Ara has been successful in conjunction wilh Bristol City Council in being awarded a grant of just over £2 million from the Department of Levelling Up Housing Communities as part Single Homelessness Accommodation Programme (SHAP). In June 2024. Ara agreed a loan facility of £1.4 million with Social and Sustainable Capital to fund part of Ihis project. The Charity's main objective in the coming year include: Purchasing 15 flats in Bristol under SHAP to house people at severe risk of homelessness. delivering expanded gambling treatment services, with tlie aim of counselling 2500 people; growing Ara's criminal justice services-, acliieving 92°/D occupancy in our houses; rolling out the Actions for Living project to develop new ways of supporting people with substance misuse problems., completing work witli the University of Bristol to carry out a research project into trauma and gambling. ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 BOARD REPORT continued STRUCTURE, GOVERNANCE AND MANAGEMENT A Board of Trustees governs Ara. Regular briefings are held for Board Members to provide them with detailed information about the way in which services are designed and delivered as a means of understanding the regular performance information provided for monitoring purposes. ARA'S Senior Management Team is Graham England (Chief Executive), Andrew Ridley (Director of Finance, Deputy Chief Executive and Company Secretary), Robbie Thornhill (Director of Recovery & Resettlement) and Helen Kovacs (Director of Gambling & Cymru). The pay and terms and conditions of the Senior Management Team are reviewed annually by the Board. During 2023124 Ara had an average of 62 full time equivalent staff. RECRUITMENT AND APPOINTMENT OF TRUSTEES A skills audit is regularly conducted of Board Members to identify gaps in expertise on the Board and to assist with recruitment. Recruitment of new Members with appropriate skills and experience is undertaken through individual contact, networking and advertising, TRUSTEE INDUCTION AND TRAINING New Trustees are given the Board Member's handbook on joining, which includes the duties and responsibilities of Trustees and the structure, organisalion and management of the charity. Induction training is also provided. FINANCIAL POSITION OF THE CHARITY The Board can confirm that the Charity's assets are available and adequate to fulfil the obligations of the charity on a fund-by-fund basis. The Charity had net assets of £1,654,164 at 31 March 2024 of which £1,164,596 is held in general unrestricted funds. Whilsl Ara does receive small value donations il does not actively engage in fundraising. ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 BOARD REPORT continued INVESTMENT POLICY The Board approved an Investment Policy in August 2024. The policy outlines the Charity's attitude to risk and the ethical issues that need to be considered when decisions on investments are taken. RESERVES POLICY At 31 March 2024, the Charity had total reserves of £1,654,164 of which £530,091 can only be realised from the disposal of tangible fixed assets. The balance on restricted reseNes was £396,164. Movements in restricted funds are shown in note 14 to the financial statements. Designated reserves totalled £93,404. This reserve will be used to fund the Charity's 'Actions for Living project and to meet the costs of property refurbishment. The Charity's Reserves Policy is to hold two to three months operating expenses on unrestricted activities in liquid unrestricted funds. This currently equales to around £376,000 £565,000. At 31 March 2024 the liquid unrestricted reserves were £608,717 (2023, £443,997). The Board reviewed its reserves target in February 2024 and consider this lo be adequate given the duration of the Charity's main contracts, potential liabilities should those contracts come to an end and the planned expansion of the organisalion. TRUSTEES STATEMENT OF RESPONSIBILITIES The Trustees (who are also directors of Addiction Recovery Agency for the purposes of company law) are responsible for preparing the Trustees, Report (incorporating the directors, report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Accepted Accounting Practice). ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 BOARD REPORT continued TRUSTEES STATEMENT OF RESPONSIBILITIES Company law requires the Trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for tliat period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP; make judgments and estimates that are reasonable and prudent; state whether applicable 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 tlie financial position of the charitable company and enable them to ensure that the financial stalemenls comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware, there is no relevant audit information of which the charitable company's auditor is unaware,. and the Trustees liave taken all steps that they ought to make themselves aware of that information. BY ORDER OF THE BOARD DAVID THOMAS CHAIR DATE 27 September 2024 ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 INDEPENDENT AUDITORS, REPORTTO THE MEMBERS OF ADDICTION RECOVERY AGENCY LIMITED OPINION We have audited the financial statements of Addiction Recovery Agency Limited (the "Charity") for the year ended 31 March 2024 which comprise the Statement of Financial Activilies, 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 Financial Reporting Standard 102.. The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the Charity'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 thal we might state to the Charity's members those matters we are required to state in 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 Charity's members as a body, for our audit work, for Ihis report, or for the opinions we have formed. In our opinion, the financial statements.. give a true and fair view of the state of the Charity's affairs as at 31 March 2024 and of its income and expenditure for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinioii We conducted out audit in accordance with international Standards in Auditing {UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are furtlier described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charily 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. ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 INDEPENDENT AUDITORS, REPORTTO THE MEMBERS OF THE ADDICTION RECOVERY AGENCY LIMITED continued Conclusions relating to going concern In auditing the financial statements, we have concluded that the directors, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern as described in the relevant sections of this report. Other information The trustees are responsible for the other information. The other information comprises the informalion included in the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to Ihe extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion Ihereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider wlietlier 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 malerial misstaternents, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of Ihe other information. If based, on the work we liave performed, we conclude that there is a material misstatement of tliis other information, we are required to report the fact. We liave nothing to report in this regard. Opinions oli 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 trustees, report (incorporating the directors, report) for the financial year for which the financial statements are prepared is consistent with the financial statements., and the trLlStees' report (incorporating the directors, report) have been prepared in accordance with applicable law requirenients. 10 ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 INDEPENDENT AUDITORS, REPORTTO THE MEMBERS OF ADDICTION RECOVERY AGENCY LIMITED continued Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: sufficient accounting records have not been kept., the financial statements are not in agreement with the accounting records and returns., certain disclosures of trustees, remuneralion specified by law are not made., or we have not obtained all the information and explanations necessary for the purposes of our audit. Responsibilities of trustees As explained more fully in the Irustees, responsibilities statement, the trustees 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 they 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 Charity'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 Charity or to cease operations, or have no realistic alternative but to do so, Auditor's responsibilities for the aiidit 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, bul is not a guarantee thal an audit conducted in accordance with ISAS (UK) will always detect a material misstatemenl when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statenients. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regiilations, was as follows., the engagement partner ensured tliat the engagement team collectively had the appropriate competence, capabilities and skills to identify and recognise non-compliance with applicable laws and regulations; ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF ADDICTION RECOVERY AGENCY LIMITED continued we identified the laws and regulations applicable to the charity through discussions with directors and other management, and from our knowledge and experience of the sector. we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements of the operations of the company, including the Company's Act 2006, taxation legislation and data protection, anti-bribery, employment, environment and health and safety legislation. we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence and. identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance through the audit, We assessed the susceptibility of the charity's financial statements to material misstatem8nt, including an understanding of fraud might occur by: making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud. considering the internal controls in place to mitigate risks of fraud and non- compliance with laws and regulations., and understanding the design of the charity's remuneration policies. To address the risk of fraud through management bias and override controls, we.. performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries lo identify unusual transactions. assessed whether judgements and assumptions made in determining the accounting estimates sel out in the accounting policies were indicative of potential bias,. and investigate the rationale beliind signif icanl or unusual transactions, In response to the risk of irregularilies and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: agreeing financial statement disclosures to underlying documentation., reading the minutes of meetings of tliose charged with governance; enquiring of management as to actual and potential litigation claims., and reviewing correspondence with HMRC, relevant regulators and the charity's legal advisors. 12 ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF ADDICTION RECOVERY AGENCY LIMITED continued There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is thal we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence if any. Material misstatements hat arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on Ihe Financial Reporting Council's website at www.frc.or .ukla blsco rivate.cfm This description forms part of our auditor's report. el Joshua Kingston FCA (Senior Statutory Auditor) For and on behalf of Burton Sweet Limited The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1 UR Date.. 2? ADDICTION RECOVERY AGENCY LIMITED STATEMENT OF FINANCIAL ACTIVITIES (incorporating income and expenditure account) FOR THE YEAR ENDED 31 MARCH 2024 Unreslricled Funds ReslriGled Total funds 2024 Total funds 2023 note INCOME AND EXPENDITURE INCOME FROM.. Donations Other Trading Aclivilies.. Rental Income and related seNIc8s Inveslmenls,. Inler6s1 recelvable Charitable Activities Grants, contracts and fees.. Gambllng Service Housing Support & Reselllomenl Somersel Services GlouctsslorshSr& S6rvlces sub lolal 47,524 73,447 120,971 656,005 10,020 10.020 36.666 24,657 24.657 4.396 50,000 2,224,086 8Q,813 1,540,216 I,S90.216 2,224,086 80,813 9.569 3,904.684 793.945 1,501,795 69.767 114.820 2,480,327 9,569 1,549,785 2,354,899 TOTAL INCOME 2.437,100 1,623,232 4,060,332 3,177.394 EXPENDITURE ON: Charltable aclivilies.. Gambllng Service Houslng Support & Reselllomenl Somersel Services Gloucestershire Services 17,368 2,160,267 77,825 1,627,200 3,047 1,644.568 2,163.314 77,825 9,569 1,303.561 1,580,531 65,582 114,820 9,569 TOTAL EXPENDITURE 2,255,460 1,639,816 3,895.276 3,064.494 Nel Income lor the year 181,640 -16,584 165.056 112.900 Transfors 12,14 Nel movement in lunds 181,640 -1fj,584 165,056 112,900 Balance brought forwlc rd al 1 April 2023 1.076,360 412,748 1,489.108 1,376,208 BALANCE CARRIED FORWARO AT 31 MARCH 2024 1.258,000 396,164 1,654.164 1,489,108 rhe notes on pages 1710 32 form part of Ihesg accounls. All of the results relate lo eonlinLilng operations. Pflor year con)parallves are Included in note 19. 14 ADDICTION RECOVERY AGENCY LIMITED (Company number 02540814, registered charity number 1002224} BALANCE SHEET AT 31 MARCH 2024 note 2024 2023 FIXED ASSETS Tangible assets 709,648 704,003 CURRENT ASSETS Debtors Cash at bank and in hand 659,445 1,076,767 222,483 1,006,800 1,736,212 1.229,283 CREDITORS: Amounts falling due within one year 10 -644,605 -269,611 NET CURRENT ASSETS 1,091,607 959,672 TOTAL ASSETS LESS CURRENT LIABILITIES 1,801,255 1,663,675 CREDITORS: Amounts falling due after one year -147,091 -174,567 NET ASSETS 1,654,164 1,489,108 FUNDS.. Reslricled U nreslricled Designated General 15 396,164 412,748 15 15 93,404 1,164,596 109,605 966,755 15 1,654,164 1,489,108 The accounts have been prepared in accordance with the special provisions of Part 15 of Ihe Companies Act 2006 relating lo small companies. Approved by the Board on 27 September 2024 and signed on its behalf by DAVID THOMAS (CHAIR) Tlie notes on pages 17 10 32 form part of these accounts 15 il I ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 1. ACCOUNTING POLICIES a) Accounting convention The financial statements have been prepared under the historical cost convention and in accordance with the Stalemenl of Recommended Practice Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102), the Charities Act 2011 and the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019. b) Tangible assets and depreciation Tangible assets are held at cost less depreciation. Depreciation is provided on tangible assets with a valuè of more than £100 at rates calculated to write off the cost, less estimated residual value of each asset, over its expected useful life as follows: Long leasehold property Improvements to long leasehold property Improvements to short leasehold property Office fixtures, fittings and equipment House fixtures, fittings and equipment 2 % straight line,. 10 % straight line; 10% 33 /0 Straight line. 100/0 33 % straight line. 10 /. 33,/0 Straight line c) Income Income is recognised in the period to which the charity is entitled lo receipt and the amount can be measured with reasonable cerlainly. Income is only deferred when the charity has to fulfil condilions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period, When donors specify that donalions or grants are for a parlicular restricted purpose, which do not amount to pre-conditions regarding entitlement, this income is included in income of the appropriate restricted fund when it is receivable. dl Cosls of raising funds, charitable activities and governance costs Expenditure is on an accruals basis inclusive of any VAT that cannot be recovered. The majority of costs are directly attributable to specific charitable activities. The support costs have been apportioned to the activities of the Charity on the basis of the percentage of income of the activity compared to total income. This basis was used as a reasonable representation of the level of support required by each activity. Governance costs are those associated with the constitutional and statutory requirements of the cliarity covering the external audit fee and Board expenses. Governance costs are inGluded with cliaritable activities. 17 ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 continued e) Pensions costs The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independenlly administered fund. The pension cost charge represents contributions payable by the Charity to the fund and is shown in Note 6 to these financial statements. f) Operating leases Operating lease payments are charged to the Statement of Financial Activities as incurred over the term of the lease. g) Fund accounting Funds held by the Charity are either,. Unrestricted general funds these are funds which can be used in accordance with charitable objects at the discretion of trustees. Designated funds - these are funds sel aside by the trustees out of unreslriGted general funds for specific or future projects., Restricted funds - these are funds that can only be used for particular purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements, h) Going concern The Board has carefully considered the going concern basis used in the preparation of the financial statements and is satisfied tliat this is correct based on forecast income and expenditure. There are no rnaterial uncertainties about the ability of the charity to continue as a going concern. i) Public Benefit Addiction Recovery Agency Limited is a public benefit entity. j) Trade debtors Trade debtors are recognised initially at the transaction price. They are subsequently rneasured at amortised cost using the effective inlerest method, less provision for impairmenl. A provision for the impairment of trade debtors is established when there is objective evidence thal the company will not be able to collect all amounls due according lo the original terms of the receivables. ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 continued k) Trade creditors Trade Greditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cos using the effective interest rate method. l) Cash and cash equivalents Cash and cash equivalents comprise cash in hand and call deposits and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. 2. TAXATION Addiction Recovery Agency Limited is a registered charity and, subject to funds being used for charitable purposes only, is exempt from Corporation Tax on its income and gains. 19 ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (continued) 3. GRANTS AND DONATIONS Unrestricted Funds Restric18d Funds Total funds 2024 Total funds 2023 Shaftesbury Casinos Clockfair Casinos Les Croupiers Double Diamond Gaming Greenlube Aldarn6y Bel Victor BelFred Quartet Foundation Other grants and donations 43,332 43,332 67,500 123.500 259,981 115,000 41.167 41,167 44,500 44,500 32,280 3,024 120 971 32,280 3,024 47,524 3,360 56,005 73,447 Donations received from Sh8fesbury Casinos, Clockfair Casinos, Les Croupiers, Double Diamond Gaming, Greenlube Alderney and Bel Victor are In lieu of a regulatory selllement to the Gambling Commission. 4. GRANTS, CONTRACTS & FEES Unrestricted Funds Reslricled Funds Total funds 2024 Total funds 2023 Housin ort & Reselllemenl Bristol Cily Council Rent receivable (housing benefit} Client service charges Ministry of Justice 1,572,906 585,453 65,727 1.572,906 585,453 65,727 888,948 527,818 56,858 2,224,086 2,224,086 1,501795 Gamblin Gamcare Beacon Couselling Trust G8mbleAware Service 202,060 202,060 50,000 1.338,156 1,590,216 520,286 22,500 251,159 793,945 50,000 1338 156 1,540,216 so,000 Somersel Services Second Slep 80,813 80,813 69,797 Gloucestershire Services CGL 9,569 9,569 114,820 Prior year comparatives kre Included in note 20. 20 Ln Ln Ln oro¢o- CO U) cn ¢0 ¢r> ￿ cr> (nro) oi rri co IJ) CL o (Ji(nU ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (continued) 5. TOTAL EXPENDITURE (continued) Other Direct Costs Tota5 2024 Total 2023 House running costs Client expenditure Depreciation Payments to partners Premises 534,974 56,785 19,143 484,593 80,979 1,176,474 467,089 15,042 27,752 560,073 68,110 1,138,066 Support Costs Total 2024 Total 2023 Staff costs Premises Office costs Depreciation Loss on disposal of assets Legal and professional Loan interest 234,619 21,674 205,524 63,114 7,745 48,987 19,604 601,267 201,818 17,294 192,390 51,122 27,463 9,066 499,153 Included within support cosls are governance costs of £10,19612023, £8,949} which relate lo the external audit and Board expenses. 22 ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 {continued} 6. STAFF COSTS, TRUSTEgs' REMUNERATION AND RELATED PARf( TRANSACTIONS Staff costs were as follows.. Total 2024 Total 2023 Wagès and salaries Social se¢L*rily costs Pension costs 1,983,210 185,151 44,018 2,212,379 1,392,540 126,354 34,372 1,553,266 One 8mploye8 ecirned between £60,000 and £70,00012023, no employees eamod belw&en £60.000 and £70,000) One employeD earned belwegn £80,000 and E90,00012023, one employee earned between £80,000 and £90.0001 Employment bènellls. Incluslve ol employei nalional insuranca and pension pald lo key managomenl personnel (Chief Executivè .Direclors ol Fln8nco, Recovèry & RtS6111èmenl, G8mblinglCymrul in 2023124 tolalled £296,911 12022123. £253.2981 No remuneration was paid to Board Members. Travel costs 01 £492.40 12022123, £81.901 were re-imhursed lo one Board Member. The59 payments ar8 Pgrmillèd undar ¢lausè four ol the Tntmorandum of association. Tlie avèragè number ol etnploy86s 8nalysad by lunclion.. equivalonls analysed by function w89.. 2024 H8ad count d4 17 2023 Head count 36 15 FTE FTE Support 8#rvl¢•$ Treii Imonl serrfices Ml4 nagomonl and admlnislralSon of Ihg charlly 41 33 12 73 62 62 50 7. NET INCOMING RESOURCES FOR THE YEAR 2024 2023 This is slated aller chargillg.. Depreclalion ol owned assols Audilors, remuneralion audil fee Auditors, reniuneralioii olher work Operating lease rentals 78,874 8,000 2.304 59,327 9,520 75,674 23 r ( 0)￿ O U) (Y) Lr) c4 0 (D Lr) x¢JJY co ts) (ry LL LL LU o( tr- O ( a) (f) cn o* 10 J9. N Ill- I. M c (v ¢y ¢u CT) (n ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024(continued) 9. DEBTORS 2024 2023 Rents and feos Prepayments less Provision for doubtful debts 636,166 60.982 -37.703 659.445 180,448 54,567 -12,532 222,483 10. CREDITORS 2024 2023 Amounts falling due within one year Bank loan Trade creditors Taxation and social security Amounts du9 to residents Other credilors and accruals Fees and grants received In advance 32,466 60,264 60,381 1,556 112,862 377,076 644,605 31,956 57,941 41,113 1,761 66,545 70,295 269,611 2024 2023 Deferred Income re¢oncilialion Deferrèd Incomè brought forward Incorne credited in year Feos and grants received in advance Dolorrod incomo carriod forward 70,295 -70,295 377,076 377,076 25,052 -25,052 70,295 11. CREDITORS 2024 2023 Arnounls fallin9 duo aller more than one year Bank loan 147,091 174,567 Tho bank loan is socured by a 25 year mortgage over the charity's leasehold properly known as Units 6, 7 and 8 Kin9's Court, King Street, Bristol. Malurily ol bank loan repayable by Inslalmenls. Due in less Ihaii one year Due belween two and live years Dtio alter Inore than livo years 32.466 129.864 17,227 31,956 127,824 46,743 206,523 The bank loan is lo be repaid by moiilhly inslalnionls over 25 years and is on a variable rale 0130/0 per annuni over the Bank, s base ralo Icurrenlly 50/ts1. 25 ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Icontlnuedl 12. UNRESTRICTED FUNDS CURRENT YEAR 6alan¢e 1-Apr-2023 IAovem6nl ￿ Fundlng Income Transleis Expènditurè 31-Mai-2024 GENEPAL FUNDS 966,755 2,437,100 -2,239.259 1.164,S96 DESIGNATED FUNDS Lèasehold Pfopety rtsfurbishfnenl fund 29.419 -5.880 23.739 Ilons lor Livln9 Fund 80.188 -10.521 69.665 109,605 -16,201 93.404 TOTAL UNRESTRICTED FUNDS 1 076 360 2 437 100 -2 255 480 1 258 000 PRIOR YEAR Balance 01104r2022 Movement In Fundln9 Incorne Trari¥lers Balance 3110312023 Expandi1ts16 GCNERAL FUNDS 936,513 1 971 060 -1940.818 968,755 DESIGNATED FUNDS Leasehol¢J property relufbishm$ni luod 9.856 -5.685 -14,482 29,419 Acllon$ for Llvlng Fund -10.246 90,1132 80.186 .15.931 75.950 10S,605 TOTAL UNRESTRICTEO FUNDS 986 369 1911060 .1 956 749 Tho ￿ase￿ord properly relvrbishmonl fund Is used 10 moot Ihe dfrpiocK8llon Ar181ng Irom Ihè fO￿Tb1$h￿Qnt ol prop6rtios1088od Irom Brfslol Clly Council. The A¢140n8 For Lfvlng Fund Ss used lo lund prglecl$ lo ald tha recovery of people wilh drug and olcohol addlcllon. 1J. LEASE COMMITMENTS Al 31 March 2024 tho charity had annual commllmonls undef opofaiifjg le8se8 89 801 out below.. LÈnd, bu1￿1￿0¥ & oquipmenl Land. bU1￿1n95 & oquipmÈnl 2023 2024 Loa$os which expire In105s than 1 year LÈa5es whlch expire befvrfoon Ènd fivo y$#rs 35,528 32,053 61,581 59.239 26 Jll- 10 441 z￿ttlL Iibk,I Iibkn, £ E Js u)￿￿00 ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (contlnued) 15. ANALYSIS OF NET ASSETS BETWEEN FUNOS Nel Current Assels Creditors due aller on8 year CURRENT YEAR Fixed Assets Total 2024 Reslricled Funds North Somersel Refurb Fund North Somersel SeNice Fund GambleAware Projects Fund Gambling Youth Oulr8a¢h & Education Fund Gambllng Commission Prol&cls Fund Quarlel Comnilinily Foundation Fund Other Funds 6.678 6,678 49,237 158.929 95.701 69,199 16.247 173 396,164 49,237 158,929 95,701 69,199 16,247 173 Unreslricled Funds General Res8Nes DesSgnaled Reserves 702.970 608,717 93,404 -147,091 1.164,596 93,404 709,648 1.091,607 -147,091 1,654.164 Nel Current Assets Creditors dug aller one year PRIOR YEAR Flxed Assets Total 2023 Reslrlcled Funds North Soniersel Relufb Fund North Somersel Servlco Fund GaniblèAw J < ¢0 w> #o o¢0 (Or ¢3) In ** o¢0 OLn ) U> Ln orf) ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (continued) 19. PRIOR YEAR FUND COMPARATIVES Unreslricled Funds Restricted Funds Total funds 2023 INCOME AND EXPENDITURE INCOME FROM.. Donations Other Trading Aclivilies-. Rental income and relalod services Invaslmenls.. Interest receivable Charitable Aclivilies Grants, contracts and fees.. Gambling Service Holising Siipport & R&seltl8m8nl Son)ersel Setvices Gloucestershire Services su b total 3,360 652,645 656.005 36,666 36,666 4,396 4,396 355,076 1,501,795 69,767 438,869 793,945 1,501,795 69,767 114,820 2,480,327 114,820 553,689 1,926,638 TOTAL INCOME 1,971,060 1,206,334 3,177,394 EXPENDITURE ON.. Charitable aclivilies.. Gambling Service HoLls￿n9 Support & Reselllemenl Somersel Services Glouceslershire Setvices sub lolal 310,636 1,580,531 65,582 992,925 1,303,561 1,580,531 65,582 114,820 3,064,494 114,820 1,107,745 1,956,749 TOTAL EXPENDITURE 1,956,749 1,107,745 3,064,494 30 ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (continued) 20. PRIOR YEAR GRANTS, DONATIONS, CONTRACTS FEES COMPARATIVES GRANTS AND DONATIONS Unrestricted Funds Restricted Funds Total funds 2023 Shaftesbury Casinos Clockfair Casinos Les Croupiers Double Diamond Gaming Greentube Alderney Bet Victor Other grants and donations 43,332 43,332 67,500 123,500 259,981 115,000 43,332 43,332 67,500 123.500 259,981 115,000 3,360 3,360 3,360 652,645 656,005 GRANTS, CONTRACTS & FEES Unrestricted Funds Restricted Funds Total funds 2023 Housing Support & Resettlement Bristol City Council Rent receivable (housing benefit) Client service charges Ministry of Justice 888,948 527,818 56,858 28,171 1,501,795 888,948 527,818 56,858 28,171 1,501,795 Gambling Service Gamcare Beacon Counselling Trust GarnbleAware 332,576 22,500 187,710 520,286 22,500 251,159 793,945 251,159 438.869 355,076 Somerset Services Second Step 69,767 69,767 69,767 69.767 Gloucestershire Services CGL 114,820 114,820 31 ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Icontlnued) 21 PRIOR YEAR TOTAL EXPENDITiJRE COMPAPATIVES Dirgcl Staff Costs Other Dire¢l Costs Support Costs Total 2023 Gambllng Service HoUS￿g Support & R85elllemenl Somor5el Services Gloucesleishire Services 696,179 570,887 55,024 105,185 1,427 275 388,459 749,607 218.923 260,037 10,558 9.635 499 153 1,303.561 1.580,531 65,582 114.820 3 064 494 1 138066 22. RELATED PARTIES There were no other fe181od p8rty IFansaclK>ns. excopi ler lttose dL8¢lo$ed elsg¥¥here In th6 accounts 32