Registered Company Number.. 2647631 (England and Wale51 Registered Charity Number-. 1004537 Avocet Trust Report of the Trustees and Consolidated Financial Statements For the Year Ended 31 March 2024 Fawley Judge & Easton Chartered Certified Accountants I Parliament Street Hull HUI 2AS
Avocet Trust Contents of the Financial Statements for the Year Ended 31 March 2024 Report of the Trustees Ito4 Report of the Independent Auditors Sto7 Statement of Financial Activitles Balance Sheets 9tolO Cash Flow Statement Ilto12 Notes to the Cash Flow Statement 13 Notes to the Financial Statements 14to23
Avocet Trust Report of the Trustees for the Year Ended 31 March 2024 The trustees present their report and financial statements for the year ended 31 March 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1.1 to the financial statements and comply with Avocet Trust's governance documents, the Companies Act 2006 and "Accounting and Reporting by Charitie5.' Statement of Recommended Practice applicable to charitie5 preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" la5 amended for accounting period5 commencing from l January 20161 Objectives and activities Avocet Trust's objectives are set out in the company'5 Memorandum and Articles of Association and are as follows: _ The relief of vulnerable adults who are disabled or otherwise disadvantaged by the provision of facilities including hou51ng assigned to meet their need5. The relief of persons particularly young persons who are homeless or threatened with homelessness by providing or assisting in providing accommodation and support for such persons. During the past f inancial year, the Charity has continued to carry out its objectives of providing care and support for those people who are disadvantaged. There has been no change in these during the year. The Trustee5 have paid due regard to guidance issued by the Charity Commi55ion in deciding what activities the Avocet Trust should undertake. The main client group which Avocet Trust support5 the profound learning disabilities which are often associated with physical disability and other health problerns. We also look after clients on the autistic spectrum. The main objective is to conti nue with our fundamental aim to assist clients, many with limited communication ski115, to be able to expre5S their needs and want5 and to have enjoyable company and support from staff they like and trust. The strategies employed to achieve the Charity's objectives are to: offer opportunities for clients to live in a quality environment through the purchasing of domestic properties appropriate to the client's needs. Provide highly qualified Staff specifically employed to 5UPPOrt clients to reali5e their interests and choices in their personal life and to maximise client's personal developments. Provide full and valued life opportunities through community involvement and integration and by creatinE opportunities and choice for Avocet's clients. The major areas of activity are- The majority of Avocet Trust's income IS Eenerated by residential clients housed in well-appointed domestic housing of high standard, appropriate to our client's needs. We ensure that clients are comfortable and secure in a pleasant and welcoming environment. Clients are able to stay in the house of their choice or to move to a more appropriate accommodation as their needs change.
Avocet Trust Report of the Trustees for the Year Ended 31 March 2024 Achievements and performance CEO - old term for the overall manager. O.D - Operations Director which we adopted, and Ivan fulfils this role. Succe55i0n planning is clear as in Ivan's absence Sonia is acting up albeit Ivan is consulted for advice. lain and Monique form the SMT alongside Tommy. Monique is the named responsible person. MET=Mathews Enterprise Trust our day-care service at Preston or sometimes called Neatmarsh. CQC- Care Quality Commission. LA= Local Authority. The Trust has managed a major series of changes over the last year. These are identified under the following headings. Management, Finance including Asset5, Core business and Future. Criticism of previous practise is part of this report. In March 2023 we conducted 3 full review of the Trust and this is part of this report. The Trust imploded quickly and without significant changes would have financially been crippled and senior staff would have resigned had the CEO remained in position. The board were informed in December 2022 that we were solvent, could afford the farm purchase and were 2% above break even financially. The finance officer resigned in January 2023 and by February and unknown to trustee5 the financial position was poor. Friday March 3, was when the bank letter wa5 received. the extraordinary meeting prior to meeting the bank was on Tuesday 7, March. 2023. Management The CEO. LH. resigned at an extraordinary meeting, this was verbal and the follow up response from LH in written form was accepted as his full resignation. This wa5 accepted unanimously. An acting CEO was appointed, now titled Director of Operations. Is. LH resigned during the meeting which was scheduled prior to meeting representatives from the Cooperative and Unity banks due to the poor financial position we were in. Indeed. so poor we could not pay bi115 or services. This situation was not made dear to the trustees until 3 days beforehand. I will refer to this under finance. After review we discovered that MET our day service was losing money, the managers contractwas terminated underthe 2-year employment rules, an interim manager was appointed as trustees determined its future. We also ended the employment ofthe PA or project manager to the previous CEO. Again. after review of performance and some poor decisions made without consultation, notably around the sale of property to a local building contrartor for £180,000 below the agreed price with Moorview some months later. The final 1055 occurred more recently. RN resigned following extensive Teviews of his medical capability to continue as Maintenance and property manager. Hi5 letter was accepted. The previous finance manager had resigned in January 2023 and had not been replaced when the crisis arrlved for the Trust. We lost a house manager to a rival company and at the point of leaving had left the two service5 short of appropriate leadership and direction. Had she not resigned then She would have been dismissed under capability which had already been put in place. There were therefore some financial savings as the previous CEO was on a huge salary and the replacement at MET was far cheaper and the project manager's role was not replaced. This allowed trustees. working with the DO, to restructure the remaining staffing at HQ to afford a leaner team but with better pay. it also included a new finance manager. House managers were also paid an increase for their extensive responsibilities.
Avocet Trust Report of the Trustees for the Year Ended 31 March 2024 The restructure also afforded the two service5, identified as requiring improvements, to be 8EThER SUPPORTED. two staff left these services before disciplinary issues could be followed up. Two managers were put in as 5UPPOrting staff and a new manager appointed. who then also left the service. This situation has improved significantly under tight managernent and a thorough series of interventions. CQC have visited and we await their rating. The new O.D has from day I managed the crisis through to stability. he should be applauded for this as an independent inspection la proviso of banking support) suggested the Trust should be wound up. We afe now into a third phase of development and have a draft five-year plan. This followed an initial Recovery Plan which was followed by a Phase 2 plan which involved a restructure. The new financial controller has ensured trustees are kept fully informed alongside other stakeholders with clear cashflow reportin& yearly budget plan and profit and loss for all services we manage. He has also taken on property management and sales. Financial review In late February 2023. The trust was informed of a failure to stay within our agreed overdraft facility. This situation was disguised from trustees by the previous CEO as warnings had been given. On receipt of thi5 information the bank letter was shared with all trustees and a reply written to the bank inviting them to attend and discuss our position which occurred in early March and was preceded by the extraordinary meeting at which LH resigned. Trustees and some SMT met the Cooperative bank, and the proces5 of recovery was initiated without the then CEO. The situation was dire with questions over sufficient funds to pay staff. pay services for food and any outstandin8 works bills. Two days later at a pre-planned board meeting the CEO resignation letter was accepted, an acting CEO appointed, a recovery plan written jointly by SMT and trustees and organised by the chair of the trustees. We had conditions Set to receive an overdraft loan facility from the Cooperative Bank. The overdraft was agreed at £200.000 but we had to fund an indepenijent review by a Manchester based company. The company finally presented their report and recommendations at a charge of E20,000 for what in effect we already knew. We accepted this to secure the loan at 4% above base rate. In summary the Trust Wa5 financially in a very poor place with a recommendation to fold from the independent report. ress and achievement. From this poor position the following actions were implemented. Pro No payments were made without approval from the acting CEO. Spending controls. Negotiations ensured all outstandin8 bills were paid in tranches and not in full to stay within the agreed loan limit. As indicated some savings were made on staffing. The new financial controller provided accurate reports to SMT and trustees. We chased uplifts and outstanding debts, notably the NHS had not been billed correctly and a returning Member of staff secured these payments were made to us. All retail cards were stopped in the interim. From the recovery plan 4 Assets were identified for sale. The farm purchased recently. the property identified to pay for the farm, a property in Beverley which on inspection was not fit for registration with CQC despite the property manager spending, unchecked by LH, large amounts of money for poor work and a lack of consideration of care managers advice or to meet cac requirements or basic fire safety. A fourth Beverley property was identified and the process of working with social care in the East Riding initiated. The two 8everley properties had clients and a family living in them. The acting CEO, financial controller and I met with officers of both Hull Council and East Riding council to be tran5p3rent on our posltion in respect of asset sales, the need for appropriate uplifts per client and students in our day service. Thi5 was very effective.
Avocet Trust Report of the Trustees for the Year Ended 31 March 2024 9. Trustees became focussed on property sales and ensuring these were valued correctly and not at a price a local property developer felt was appropriate. The valuation of one property increased by £180,000. 10. MET was placed on a wind down to closure process. However. in losing a member of staff and then reducing expenditure an initial improvement was made. Core Business At the March 2023 recovery meeting we agreed we return to our core business, that being residential care. In effect mothballing MET, stopping all other dubious plans for development, and reviewing staff. The core business was the only guaranteed income to the Trust at more appropriate levels of renumeration. This did include the re - opening of St Georges Road service following a closure during Covid. This would reduce voids (empty beds) and increase income accordingly. Progress. This ha5 been based on rnany action5 resulting in larger benefits to the Trust. Some small steps become cumulative gains. I referred to the staffing restructure and payment improvements. I refer to a different mentality from SMT which is attention to detail and far less of the grandiose schemes previously suggested. The detail has improved income, controlled spendin8 and streamlined role5 and responsibilities. The focus on core business means client fees are chased should a client need more support and including any NHS money. The ability to work with people rather than ignore or not engage has paid dividends with our banks, funders and inspectorate. Simple examples include funding students in day care has improved so much that MET make5 a profit not the £10,000 per month losses. Working proactively with social worker5 can ensure additional hours per client. Working with banks ensures payment plans are within our ability to pay. Working collectively has re- opened some of St Georges Road. Assessing assets for sale is fine. ensuring current clients or families using property are rehoused avoids unpleasant media. Negotiating with banks ensures they are less likely to determine the Trust is failing. The culture has changed from head in the sand, we don't show respect to counci15 through to open, transparent actions. friendly dialogue replacing old style aggressive and unpleasant situations. Finally. more open dialogue means all facts are considered prior to decision making occurring. Facts. We are solvent, have better incomes for clients and students. plan longer term, provide excellent training for staff right from induction to in service. Have ensured MET is viable , retained most staff. increased clients. sold assets to pay off some debts/loans. secured some good inspection reports under the new framework from CQC, relinquished some staff who had hampered progress and have a happy set of client5. Future. The care business will always have issues as client5 can become unwell, some sadly will die or regress due to medical conditions. That is the rbature of care. It remains a poorly paid area of work for many workers but has high standards to rnaintain. Employing 280 staff will also result in staffing issues at times, the Trust works through these. Outside of client care, our core business. We should increase our asset base 500n a5 Middlesex Road complex will finally become a full Trust asset as sanctuary finally hand over the deeds. We are close to selling our third property which will clear our Cooperative Loan and give u5 the capital to commence some well needed property improvements in a planned manner. We can completely re open St George5 Road to reduce void5 and increase income. We now have a leaner but effective day service. run correctly at better rates of fundin8.
Avocet Trust Report of the Trustees for the Year Ended 31 March 2024 In respect of trustees, we need to increase by two at a minimum and have worked to secure this. Training needs to be refreshed generally. and two further area5 of safeguarding vulnerable adults and diversity need to be delivered within the Trusts current training regime. In terms of increased income. we need a dedicated fundraiser seeking grants. funds and donations. Maybe a post for a part time person. We need to set out the five-year plan and the over five years review annually, amend as required and set targets from this document for key staff within the Trust current appraisal system. Trustees will review the risks of the charity over the next 12 months and record in a risk register. Risk The trustees have assessed the major risks to which Avocet Trust 15 exposed and are satisfied that Systems are in place to mitigate exposure to the major risks. The Trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to Bive assurance against error and fraud. The Trustees have a risk management strategy that encompasses the revised Statement of Recommended Practice ISORP} issued by the Charity Comrnission in March 20Q5 and includes requirement that the Report of Trustees should include:_ An annual review of the risks the Charity may face. including financial. governance. operational or reputational. The establishment of systems and procedures to identify. assess and mitigate those risks identified in the plan in accordance with Avocet Trust's charitable objectives. The implementation of procedures designed to minimise any impact on the Charity should those risks materialise. The Trust has well developed management procedures, governance protocols and has a 5VStematic programme of review in place. In addition, the Trust has achieved a number of nationally recognised accreditations. including the Contractors Health & Safety Assessment Scheme ICHASI, Positive about Oisabled People, The Fund-Raising Standards Board. It 15 also registered with the British Quality Foundation. Avocet is also registered with the New Deal Employrnent Agency. The Trust h35 also achieved the National Autism Society Accreditation for several of its services for Clients on the Autistic Spectrum. It is Avocevs policy to give full consideration to applications for employment from disabled persons when a disabled person can adequately fulfil the requirements of the job. Should an existing employee become disabled. it is the Charity's policy to provide continued employment under normal terms and conditions and to provide training and career development and promotion wherever p055ible.
Avocet Trust Report of the Trustees for the Year Ended 31 March 2024 Thanks. We need to thank the current SMT most of which were retained and the two senior care managers for ensuring our services are of the best quality P0S5ible. IS as the new Financial Controller and Ivan as OD for steering the ship through stormy waters. Thanks to Mike Wicks of Unity bank for his continued support and flexibility over the year. I have written on behalf of trustees to Mike. Strurture. governance, and management Avocet Trust is a company limited by guarantee which is governed by its Memorandum and Articles of Association dated 20, September 1991 and amend to allow for current governance arrangements on 22. November 1995 and 16, October 2006. It is a charity registered with the Charities Commission.
Avocet Trust Report of the Trustee5 for the Year Ended 31 March 2024 The trustees. who are also the directors for the purpose of company law, and who served during the year were: Mr C M Brown Mr A D Tearle Mrs J Comerford Mr C Leferve Mr R Dibb Mrs J G Hyam Mr I Spibev As set out in Articles of Association the trustees will remain in office until an Annual General Meeting. At the annual General Meeting of the company one third of the trustees shall be eligible for re-election as a trustee. The retiring trustee shall, if offerin8 to be re-elected be deemed to have been re-elected. The aforesaid statement5 can be viewed in full and complete within the Article of Association. When considering the appointment of trustees. the board has re8ard to the requirement for any specialist knowledge and ski115 required by the trust. None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up. The Board of Tru5tee5, whith must have a minimum of five members. administers the charity.. they are responsible for the polices, activitie5 and assets of the charity. The board meets quarterly, to enable it to fulfil its responsibilities, review developments and make policy and strategic decisions. Such strategic decisions include, for example. agreeing the trusts busines5 plan. new contracts of employment and staff training strategies There are a number of Trust Board sub-committees each chaired by a trust board trustee to address specific areas of the trust's business. The standing Trust Board sub-committees include business development, health & safety, quality assurance, human resources, risk management, finance. and ICT. There is also a parents and relatives sub-committee as well as a Staff Consultative Committee. The day-to-day management of the Charity and the implementation of its policies are delegated to the Director of Operations and members of the senior management team. To facilitate effective operations. the Director of Operations has delegated authority, within terrns of delegation approved by the trustees, for operational matters including the management of client services, finance, employment. and other related activities. Related partie5 Avocet Trust has a subsidiary company, Kingfisher Housing {Hulll Limited. The principal activity of Kingfisher Housing (Hull) Limited is that of the development and rental of property. The properties are occupied by the clients of Avocet Trust. Brian Crosher Training Ltd is a further subsidiary company of Avocet Trust. This company 15 dormant.
Avocet Trust Report of the Trustees for the Year Ended 31 March 2024 Public Benefit statement The public benefit commitment of the Trust includes the provision of financial support for a Short Stay Respite service. The initial provision of this service was to provide respite service for hard pressed families. It has been successful in this regard. When necessary. the Trust will provide fund5 to access this service at a discounted rate. The Trust has funded 3 holiday home on the east coast where our clients and their families can stay. This facility is free and is well used. The Trust has 3 second holiday home facility on the Neat Marsh site in the East Yorkshire villaBe of Preston. This facility is available free of charge to any vulnerable person. To continually improve our support to vulnerable people and their families we offer them training courses free of charge. Employee involvement Applications for ernployment by disabled persons are always fully considered, bearine in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled. every effort is m3de to ensure that their employment within the Avocet Trust continues and that the appropriate training is arranged. It is the policy of the Avocet Trust that the training, career development and promotion of disabled persons should. as far as possible. be identical to that of other employees. Statement ol Trustees Responsibilities The trustees, who are also the directors of Avocet Trust for the purpose of company law. are responsible for preparing the Tru5tees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Avocet Trust and of the incomin8 resources and application of resources, including the income and expenditure. of the charitable company for that year. In preparing these financial Statements. the trustees are required to: select suitable accounting policie5 and then apply them consistently. observe the methods and principles in the Charities SORP. make judgements and estimates that are reasonable and prudent; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Avocet Trust will continue in operation. The trustees are responsible for keeping adequate accounting records that disc105e with reasonable accuracy at any time the financial position of the Avocet Trust and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Avocet Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In 50 far as the Trustees are aware-. there is no relevant audit information of which the charitable company's auditors are unaware- and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. The Trustees, report wa5 approved by the Board ofTrustees on 5 December 2024 Mr A Tearle- rustee
Avocet Trust Report of the Auditors for the Year Ended 31 March 2024 Opinion We have audited the group and company financial statements of Avocet Trust (the 'parent company'l and its subsidiaries (the group) for the year ended 31 March 2024 which comprise the statement of financial activities. the balance sheet. the statement of cèshflows and the notes to the financial statements, including significant accounting.policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102. In our opinion. the financial statements: give a true and fair view of the state of the charitable company's affairs as of 31 March 2024 and of its incoming resources and application of resources, for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis of opinlon We have conducted our audit in accordance with International Standards of Auditing IUKI {ISAs IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for audit of the financial statements section in our report. We are independent of the Avocet Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to golng concern In auditing the financial statements. we have concluded that the TfU5tees' 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 event5 or conditions that, individually or collectively. may cast significant doubt on the Avocet Trust's ability to continue as a goin8 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 trustees with respect to going concern are described in the relevant sections of thi5 report. Other informalion The other information comprises the information included in the annual report other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and. in doing so, consider whether the other information is materially inconsistent with the financial statements. or our knowledge obtained in the course of the audit. or otherwise appears to be materially rnisstated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If. based on our work we have performed. we conclude that there is a material misstatement ofthis information, we are required to report that face. We have nothing to report.
Avocet Trust Report of the Auditors for the Year Ended 31 March 2024 Matter5 on which we are required to report by exception We have nothin8 to report in respect of the following matters in relation to which the Charities {Accounts and Reports) Regulations 2008 require us to report to you if. in our opinion: the information given in the financial statements is inconsistent in any material re5pert with the Trustees, report; or sufficient accounting records have not been kept- or the financial statements are not in agreement with the accounting records- or we have not received all the information and explanatiorbs we require for our audit. Responsibilities of trustees As explained more fully in the statement of Trustees, responsibilities, the trustees, who are also the directors of the Avocet Trust for the purpose of company law. are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Avocet Trust's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the 8oin8 concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Att and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit condtjcted in accordance with ISAS IUKI will always detect a material misstatement 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 statements. Extent to which the audit was considered capable of detecting irregularities. including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above, to derect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting if regularitie5, including fraud, is detailed below. We considered the nature ofthe compan¢s industry and its control environment and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the ri5k5 of irregularities. We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulations that- had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act and tax legislation- and do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penaltv. io
Avocet Trust Report of the Auditors for the Year Ended 31 March 2024 We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. In common with all audits under ISAS (UK). we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through managernent override of controls. we tested the appropriatene55 of journal entries and other adjustments.. assessed whether the judgemenls made in makingaccounting estimates are indicative of a potential bias. and evaluated the busine55 rationale of any significant transactions that are unusual or outside the normal course of business. In addition to the above, our procedures to respond to the risks identified included the followin8= reviewing financial statement disclosures by testing to supporting documentation to asses5 compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements,. perfoTrning analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud,. and enquiring of management concerning actual and potential litigation and claims. and instances of non- compliance with law5 and regulations A further description of our responsibilities is available on the Financial Reporting Council's website at.. https://www.frc.or Vauditorsresponsibilities. This description forms part of our auditor's report. an Leathley (Senior Statutory Auditor) and on behalf of Fawley Judge & Easton Chartered Certified Accountants Statutory Auditor I Parliament Street Hull HUI 2AS S December 2024 Fawley Judge & Easton is eligible for appointment as auditor of the Avocet Trust by virtue of its eligibility for appointrnent as auditor of a company under of section 1212 of the Companies Act 2006. li
Avocet Trust Consolidated Statement of Financial Activities and Income Expenses for the Year Ended 31 March 2024 2024 2023 Unre5trirted funds Total funds Total funds Notes INCOMING RESOURCES Incoming resources from generated funds Investment income Incoming resources from charltable artlvities General Grants Surplus on disposal of fixed asset 7.018,422 49,974 7,018.422 49,974 5.849.839 50,038 Total incomlng resources 7.068,396 7,068.396 5.899.877 RESOURCES EXPENDED Costs of generating funds Fundraising trading- cost of goods sold and other costs Charitable activities General Governance costs 7,032,101 138,993 7,032,101 138,993 6,283,806 43,842 Total resources expended 7,171,094 7,171,094 6,327.648 Revaluation GainllLossl on disposal of fixed asset INCOMING RESOURCES 252.650 1193.6901 143.7381 252,650 1193,6901 143,7381 428,230 {21.0691 {20,6101 RECONCILIATION OF FUNDS Fund balances at l Apfil 2023 4,153,540 4,153,540 4.174,150 TOTAL FUNDS CARRIED FORWARD 4,109,802 4,109,802 4.153.540 CONTINUING OPERATIONS All incoming resources and resources expended arise from continuing attivities. The notes form part ofthese financial statements 12
Avocet Trust Charity Balance Sheet at 31 March 2024 2024 Total funds 2023 Total funds Note5 FIXED ASErs Tangible a5set5 Investments io 12 4.746.195 li 4,971.790 li 4.746.206 4,971,801 CURRENT ASSErs Debtors Cash at bank and in hand 15 1,451,685 85,660 1,571,340 9,869 1,537.345 1,581,209 CREDITORS Amounts falling due within one year 16 1986.5091 1916.4161 NET CURRENT ASSETS 550 836 664 793 TOTAL ASSETS LESS CURRENT LIABILITIES 5.297.042 5,636,594 CREDITORS Amounts falling due after more than one year 17 11,354,502) 11.695.066) NET ASSErs 3.942.540 3.941,528 FUNDS Unrestricted funds 3.942,540 3.941,528 TOTAL FUNDS 3,942,540 3,941,528 th The financial statements weTe approved by the Board of Trustees on 5 December 2024 and were signed on its behalf By Mr A Tearle-Trustee The notes form part of these financial statements 13
Avocet Trust Consolidated Balance Sheet at 31 March 2024 2024 Total funds 2023 Total funds Notes FIXED ASETS Tangible assets Investment property io 13 4,746,196 1,645.000 4,971.791 1,779,000 6,391.196 6,750,791 CURRENT ASSETS Debtors Cash at bank and in hand 15 597,007 86,528 647,233 9.869 683.535 657,102 CREDITORS Amounts falling due within one year 16 11,024,385) {954.2911 NET CURRENT LIABILITESIASSErs (340,8501 1297.1891 TOTAL ASSETS LESS CURRENT LIA81LITIES 6,050,348 6.453.602 CREDITORS Amounts falling due after more than one year 17 (1,940,544) {2.300,0621 NEf AsSs 4.109,802 4,153.540 FUNDS Unrestritted funds 20 4,109,802 4.153,540 TOTAL FUNDS 4,109,802 4,153,540 th The financial statements were approved by the Board ofTrustees on 5 December 2024 and were signed on its behalf By Mr A Tearle - Trustee The notes form part of these financial statements 14
Avocet Trust Consolidated Cash Flow Statement for the Year Ended 31 March 2024 2024 Group 2023 Group Notes Cash used in operating artivity Interest paid 365.279 (202,9721 162,307 1390.8151 148,8261 1439,6411 Cash flows from investing activitv Investment income Proceeds on disposal of fixed assets Proceeds on disposal of investment property Purchase of tangible fixed assets 20,185 315,519 102,501 26,247 88.931 1593,4971 Cash provided by (used inl investing artivities 444.267 (504,5661 Cash flows from financing activity Repayments of bank loans Repayment of borrowings Financing Increase in bank overdraft 1409,2381 1134.9661 14,3901 435.000 120,677 1120,677) Cash used in financing artlvlties {529,9151 416.321 IncreasellDecrease) in cash and cash equivalents in the year Cash and cash equlvalents at the beEinning of the year Total cash and cash equivalents at the end of the year 76,659 {527,8861 9.869 537.755 86,528 9,869 15
Avocet Trust Notes to the Cash Flow Statement for the Year Ended 31 March 2024 RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH INFLOW FROM OPERATING AcfiviTIES 2024 2023 Net incoming resources Revaluation Depreciation charges Loss on disposal of fixed assets Decrease/lincreasel in debtors {Decreasellincrease in creditors (Decreasellincrease in deferred income Interest paid 143,7381 1252,650) 45,732 102,828 50,226 207,512 2.171 202,972 120,6101 {428,230) 44,185 21,649 1151,6961 107,936 {12,8751 48.826 Net cash outflow from operating actlvlties 365,279 1390.8151 16
Avocet Trust Notes to the Flnancial Statements for the Year Ended 31 March 2024 ACCOUNTING POLICIES Charity information Avocet Trust is a private company limited by guarantee incorporated in EnEland and Wales. The registered office is Clarence House, 60-62 Clarence Street, Hull. East Yorkshire, HU9 IDN. Accounting convention The financial statements have been prepared in accordance with the Avocet Trust's Igoverning document), the Companies Act 2006 and "Accounting and Reporting by Charities- Statement of Recommended Practice applicable to charities preparing tkneir accounts in accof dance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021" las amended for accounting periods commencing from l January 20161. The Avocet Trust is a Public Benefit Entity as defined by FRS 102 The financial statements are prepared in sterling, which is the functional currency of the Avocet Trust. Monetary 3mounts in these financial statement5 are rounded to the nearest £. The financial statement5 have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. The company is a qualifying entity for the purposes of FRS 102. being a member of a group where the parent of that group prepares publtcly available consolidated financial statements. including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or Ios5 of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements- section 4 '5tatement of Financial Position, Reconciliation of the opening and closing number of shares. Section 7 'Statement of Cash Flows' Presentation of a statement of cash flow and related notes and disclosures. Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instrument Issues' Carrying amounts. interest income/expense and net gains/105ses for each category of financial instrument. basi5 of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognized in profit or Ios5 and in other comprehensive income. Section 26 '5hare based Payment. _ Share-based payment expense charEed to profit or loss. reconciliation of opening and closin8 number and weighted average exercise price of share option5. how the fair value of options grarbted was measured. rneasurement and carryin8 amount of liabilities for ca5h-settled share-based payments. explanation of modifications to arrangement5. Section 33 'Related Party Disclosures, Compensation for key management personnel. Going Concern The financial statements have been prepared on a going concern basis. The Trustees continue to be confident that both the Charity. operating in its own right and its trading subsidiaries will achieve their forecasts for the next twelve months. The Trustees are also aware of their continued dependence on the grants and contracts issued from the Public Sector and continue to seek other forms of income by maximising their resources and infrastructure. A meeting has taken place between Avocet Trust and Hull City Council to review the funding currently received from Hull City Council. Hull City Council are attempting to reduce the amounts paid to Avocet Trust for the care of client5. Whilst this would have a negative impact on Avocet Trust the Trustees believe that the Charity can continue to operate. 17
Avocet Trust Notes to the Flnancial Statements - continued for the Year Ended 31 March 2024 Basis of Con501idation In the parent company Avocet Trust. the cost of a business combination is the fair value at the acquisition date of the assets given. equity instruments issued, and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets. liabilities and contingent liabilities acquired is recognized as goodwill. The cost of the combination includes the estimatecl amount of contingent consideration that is probable and can be measured reliably and is adjusted for changes in contingent consideration 3fter the acquisition date. Provisional fair values recognized for business cornbinations in previous periods are djusted Tetrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment. Kingfisher Housing (Hull) Limited has been included in the group financial statements Using the purchase method of accounting. Accordingly, the group statemen of financial activities and statement of cash flows include the results and cash flows of Kingfisher Housing (Hull) Limited for the 12-month period frorn its acquisition. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition. Entities other than subsidiary undertakin85 or joint ventures, in which the group has a participating interest and over whose operatinE and financial policies the group exercises 3 significant influence, are treated as associates. In the group financial statements. associates are accounted for usin8 the equity method. Entities in which the group holds an interest, and which are jointly controlled by Ihe group and one or more other venturers under a contractual arrangement are treated as joint ventures. In the group Avocet Trust. joint ventures are accounted for using the equity method. Incorning resources Income is recognised when Avocet Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably. and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the Avocet Trust has been notified of the donation unless performance conditions reqtjire deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recoEnised at the time of the donation. Legacies are reco8nised on receipt or otherwise if Avocet Trust has been notified of an impending distribution, the amount 15 known, and receipt is expected. Ifthe amount is not known. the legacy is treated as a contingent asset. Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business. net of discount5, VAT. and other sales related taxes. Resources Expenditure is accounted fol on an accruals basis and has been classified under heading5 that a8gregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources. Grants offered subject to conditions which have not been met at the yearend date are noted as a commitment but not accrued as expenditure. 18
Avocet Trust Notes to the Financial Statements - continued for the Year Ended 31 March 2024 Govefnan¢e costs Governance costs are those costs which have been identified as constitutional and statutory requirements, as opposed to generating funds. service delivery, and programmes of project work. Gover nance costs include legal advice and audit of the statutory accounts. Tanglble fixed assets Depreciation is provided at the following annual rates in order to write off each asset over it5 estimated useful life. Fixtures and fittings Motor vehicles -25% on reducing balance. 20Yo on cost -25% on cost Impairment of fixed assets At each reporting end date. Avocet Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss lif anvl. IntanBible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually. and whenever there is an indication that the asset may be impaired. Cash and cash equivalents Cash and cash equivalents include cash in hand, dep05it5 held at call with banks. other short-term liquid investments with original maturities of three months or less. and bank overdraft5. Bank overdrafts are shown within borrowings in current liabilitie5. Financial in5trurnÈnts The Avocet Trust has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instruments Issues. of FRS 102 to all of its financial instruments Financial instruments are recognised in Avocet Trust's balance sheet when Avocet Trust becomes party to the contractual PfOV15ions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements. when there is a legally enfofceable right to set off the recognised amounts and there is an intention to settle on a net basis or to reali5e the asset and settle the liability simultaneously. Basic financlal assets Basic financial assets, which include debtors and cash and bank balances. are initially measured at transaction price including transaction c05t5 and are subsequently carried at amorti5ed cost using the effective interest method unle55 the arrangement constitutes a financing transaction. where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities. including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of intpresr. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. 19
Avocet Trust Notes to the Financial Statements - continued for the Year Ended 31 March 2024 Derecognition of financial liabllities Financial liabilities are derecogni5ed when Avocet Trust'5 contractual obligations expire or are discharged or cancelled. Employee benefits The c05t of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when Avocet Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits. Investment property Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in market value is transferred to a revaluation reserve. Taxation The charity 15 exempt from corpoTation tax on its charitable activities. Fund accountlng Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity- Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Funher explanation of the nature and purpose of each fund Is included in the notes to the financial statements. Hire purchase and leasing commitments Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases. Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present V31ue of the minimum lease payments. The related liability is included in the balance sheet as a finance le3se obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net incomellexpenditurel for the year so as to produce a constant periodic rate of interest on the remaining balance of the Deferred grant Included in creditor5 is a provision for deferred income in respect of a grant received from SEIF. The deferral is being amortised at a rate which matches the depreciation of the assets purchased with the grant. INVESTMENT INCOME 2024 2023 Interest Yeceivable - trading 20
Avocet Trust Notes to the Financial Statements - continued for the Year Ended 31 March 2024 INCOMING RESOURCES FROM CHARITABLE ACTIVITES 2024 2023 Activity General General General General DSS Income Residents Income Respite & Sessional Income Sundry Income 6,599,745 159,098 310,705 5,382,206 161.892 238,718 7 120 396 5 849 839 FUNDRAISING TRADING: COST OF GOODS SOLD AND OTHER COSTS 2024 2023 Purchases CHARITABLE ACIVITIES COSTS Grant fundin8 Direct costs of activities Totals General 7.032.101 7,032.101 GOVERNANCE COSTS 2024 2023 Accountancy Legal fees Auditors. remuneration 11,690 111,567 8,400 9,598 27,043 7,200 128.367 42,841 21
Avocet Trust Notes to the Financlal Statements- contlnued for the Year Ended 31 March 2024 NEf INCOMING/{OUTGOING) RESOURCES Net resources are stated after chargingllcreditingl: 2024 2023 Auditors, remunefation Depreciation- owned assets Hire of plant and machinery IProfitl/Deficit on disposal of fixed asset 8.400 45,732 10,732 102,828 7.200 44,185 19,202 21.069 TRUSTEES, REMUNERATION AND BENEFITS There were no Trustees. remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2024. Trustees, expenses There were no Trustees, expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2024. STAFF COSTS 2024 2023 Wages and 5alarie5 5 752 036 5 067 984 5 752 036 5 067 984 The average monthly number of employees during the year was as follows= 2024 2023 Residential care Administration 266 li 277 267 12 279 One member of staff was paid in excess £60,000, in the following bands: 2024 2023 £70,000-£80,000 22
Avocet Trust Notes to the Financial Statements - continued for the Year Ended 31 March 2024 io. TANGIBLE FIXED ASSETS - Charitv Freehold Fixture5 and Property fittings Motor vehicles Computers Totals COST At l April 2023 Additions Disposals Revaluation 4,813.710 249.807 4.827 112,668 19,108 21,420 5,195.293 26,247 1458,7101 252,600 1458,7101 252,600 At 31 March 2024 4,607.600 254.634 112.668 40,528 5,015,430 DEPRECIATION At l April 2023 Charge for year Eliminated on disposal Revaluation 105,099 32,960 100, 174 5,106 18,229 7,666 223,502 45.732 At 31 March 2024 138,059 105,280 25,895 269,234 BOOK VALUE At 31 Marth 2023 4.607.600 116,575 7.388 14,633 4,746.196 At 31 March 2024 4.813.710 144,708 12,494 879 4.971,791 ii. TANGIBLE FIXED ASsS- Group Freehold Fixtures and Property fittings Motor vehicles Computers Totals COST At l April 2023 Additions Disposals Revaluation 4.183.710 249,807 4.827 112,668 19,108 21,420 5.195,293 26.247 1458,7101 252,600 1458,7101 252.6iJo At 31 March 2024 4 607 600 254 634 112 668 5 015 430 DEPRECIATION At l April 2023 Charge for year Eliminated on disposal Revaluation 105.099 32.960 100,174 5.106 18,229 7,666 223,502 45,732 At 31 March 2024 138 059 IOS 280 269 234 NET BOOK VALUE At 31 March 2024 4,607,600 116,575 7.388 14.633 4.746.196 At 31 March 2023 4,813,710 144,708 12.494 879 4,971,791 23
Avocet Trust Notes to the Financial Statements - continued for the Year Ended 31 March 2024 Included in cost of land aTTrd buildings is freehold land of £194.000. Land and buildings with a carrying value of £4.607,600 were revalued on 24 February 2023 by Lamber Smith Hampton Chartered Surveyors and on 23 May by Eddisons Chartered Surveyors both independentvaluers nor connetted with the charity on the basis of market value. The valuation conforms to international valuation standards and was based on recent market transactions of similar properties. 12. FIXED ASSET INVESTMENTS Shares in group undertakings MARKET VALUE At l April 2023 and 31 March 2024 li NET BOOK VALUE At 31 March 2024 li At 31 March 2023 li There were no investment assets Outside the UK. The company's investment5 at the balance sheet date in the share capital of companies include the following- Kingfisher Housin8 (Hull) Ltd - 10 shares of £1 Brian Crosher Training Ltd - dormant- I share of £1 Nature of business: Property management Class of share: Ordinary holding 100 2024 2023 Aggregate capital and reserve5 Profit/lloss) for the year 167,262 144,7501 212,012 208,014 Investments. which represent shares held in the subsidiary company, are stated at cost. INVESTMENT PROPERTY 13. Total Cosr OR VALUATION At l April 2023 Dispcsals Revaluations 1,779.000 1134,0001 At 31 March 2024 1645 000 NET BOOK VALUE At 31 March 2024 1,645,000 At 31 March 2023 1,779,000 24
Avocet Trust Notes to the Financial Statements - continued for the Year Ended 31 March 2024 14. INVESTMENT PROPERTY- continued Included in cost or valuation of investment property is freehold land of £462.988 {2023: £500,703) which is not depreciated. Cost or valuation at 31 March 2024 is represented bv.. Fair value Additions Disposals Revaluation 1,779,000 1134,0001 1,645,000 2024 2023 Cost 1.454.154 1,569,154 Aggregate depreciation The fair value of the investment property has been arrived at on the basis of a valuation carried out on 30 May 2023 by Eddi50ns Chartered Surveyors, who are not tonnerted with the charity on behalf of the charity bankers. The valuation was Made on an open market basis by reference to market evidence of the transaction prices of similar properties. 15. DEBTORS Group Companv 2024 2023 2024 2023 Amount falling due within one year: Trade debtors Amounts owed by group undertakings Other debtors Prepayments S32.643 581,837 532,643 852.359 1,104 65,579 581,837 924.107 2.933 62,463 11.2151 65,579 2,933 62,463 597.007 647,233 1,451,685 1.571,340 16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group Companv 2024 2023 2024 2023 Bank loans and overdrafts Trade creditors Social security and other taxe5 Accruals and deferred income 110,274 137.648 293.609 482 854 1,024,385 250,671 154,681 44,404 504 535 954.291 72.398 137.648 293,609 482 854 986,509 212,796 154.681 44.404 504 535 916,416 25
Avocet Trust Notes to the Financial Statements - continued for the Year Ended 31 March 2024 17. CREDITORS: AMOUNTS FALLING DUE AFfER MORE THAN ONE YEAR Group Company 2024 2023 2024 2023 Bank loans 1,940.544 2,300.062 1.354.502 1,695,066 1940 544 2 300 062 1354 502 1695 066 18. LOANS An analysis of the maturity of loan5 is given below: Group Company 2024 2023 2024 2023 Amounts falling due within one year: Bank loans 110.274 129,994 72.398 212,796 Amounts falling due: Bank loans - 1-2 years Bank loans- 2-5 years Bank loans after 5 year5 110,274 220.554 1,609,722 129.994 259,988 1,910.080 72,398 144.796 1,137,308 212,796 425,592 1.056.678 1,940.544 2,300,062 1.354.502 1,695,066 19. SECURED DEBTS The following secured debts are included within creditor5: Group Company 2024 2023 2024 2023 Bank loans 2,020,818 2,430,056 1,426,900 1,907,862 The Co-operative Bank and Unity Trust Bank hold a legal charge over the property of Avocet Trust and Kingfisher Housing Limited The bank also holds a specific charge over the book of debts of the company. 26
Avocet Trust Notes to the Financial Statements - continued for the Year Ended 31 March 2024 20. MOVEMENT IN FUNDS Net movement At 114123 in funds At 3113124 Unrestrirted funds General fund 4,153,540 143,7381 4.109,802 TOTAL FUNDS 4,153.540 {43,7381 4,109,802 Net movement in funds, included in the above are as follows.. Incoming Resources resources expended Net gains/1055 Movement in funds Unrestrlrted funds General fund 7 068 396 7 171094 21. CONTINGENT LIABILITIES In addition to the security over the assets of the company described above. the Co-operative Bank plc also holds a first legal charge over the asset5 Of Avocet's subsidiary company Kingf15her Housing (Hull) Limited. 22. RELATED PARTY DISCLOSURES Kingf15her Housing (Hull) Limited l-Kingfisherf'l is a wholly owned 5ub5idiary of Avocet Trust. Kingfisher purchased Several houses from Avocet Trust in a previous year and Avocet Trust made a loan to Kingf15her for that purpose. The loan is subject to an agreement setting out repayment terms. In addition, Avocet Trust has made an informal103n by way of inter-company balance in respect of Kingfisherfs start-up costs. Avocet Trust pay rent for the use of propertie5 owned by Kin8fisher. Transactions between Kingfisher and Avocet Trust are as follows: 2024 2023 Rents paid Grants paid Loan Interest received Management charge 52,000 80,300 20,185 20,185 74.000 The above transactions were at market value. At 31 March 2024 Kingfisher owed Avocet Trust £852,35912023: £924.1071 During the year the charity made payments for professional services to the following trustees: Mr I Spibey-Atom HR Consultancy £42,487 {2023 £37.6751 HR Services Mr A Tearle £2.750 {2023 £3,345) Training services 27