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← Avalon Group (Social Care)

2021-03-31-accounts

Registered number: 02976727 Charity number: 1048236

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the charity, its Trustees and advisers 1 - 2
Trustees' report 3 - 12
Independent auditors' report on the financial statements 13 - 16
Statement of financial activities 17
Balance sheet 18 - 19
Statement of cash flows 20
Notes to the financial statements 21 - 40

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Stephen Fox, Chair of the Board[8] Ian Lawson (resigned 12 November 2020)[2] Barry Rankin (resigned 26 August 2021)[4] Janice Gowing (resigned 26 August 2021)[5] Karen Tyrell[2,3] Sandra Frier[1,7] Joseph Bradley[2,4] Susan Howard[6,7] Melvyn Ellis[6] Susan Carr[6]

1 Chair of Audit and Risk Committee

2 Member of Audit and Risk Committee

3 Chair of Business Development and Fundraising Committee

4 Member of Business Development and Fundraising Committee

5 Chair of People Committee

6 Member of People Committee

7 Member of Remuneration Committee

8 Chair of Remuneration Committee

Company registered number 02976727 Charity registered number 1048236 Registered office 6 Grove Park Court Harrogate HG1 4DP Independent auditors BHP LLP Chartered Accountants Rievaulx House 1 St Mary's Court York YO24 1AH Solicitors Hempsons The Exchange Station Parade Harrogate HG1 1DY

Page 1

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Senior management team

Larry Hollando, Chief Executive Officer and Company Secretary Julie Colley (until 10 April 2020) Martyn Miller (until March 2021) Emma Williams Bev Wilson (until 30 June 2020) Jill Farmer (until September 2021) Sarah Hargreaves (from May 2020 to October 2020) Robbie Wright (September 2020 to June 2021) Dan Blackith (from November 2020)

Page 2

Trustees’ Report for the Year ended 31 March 2021

I am pleased to present our Annual Report and Accounts for the year ended 31 March 2021 which provide a full summary of the year’s activities.

It was a year that was, of course, dominated by the impact of Covid-19. I would like to begin by paying tribute to all our staff, Shared Lives carers, customers, families and trustees for their hard work and dedication in this most challenging time. I have been humbled by the compassion, resilience and integrity of all our people who remain steadfast in their mission to provide the best possible support to those who need it, working tirelessly to keep customers and colleagues safe and well.

Despite the continuing demands of this unprecedented and ongoing health emergency, looking back over the year, Avalon has had many highlights and continued to progress towards achieving the Avalon Group Strategic Plan 2019-2022.

Particular focus has been given to the wellbeing of all our people including an improved staff benefits package, a relaunch of our internal communication strategy and our management training offer to continually improve the support we offer across the organisation to our people.

Shared Lives has remained a key priority at Avalon both in terms of ensuring the safety and wellbeing of our customers and carers during the pandemic and also growing the service to reach further and meet a wider range of needs in the community. A new Shared Lives website was launched to better engage with potential carers and beneficiaries, and we have increased the number of Shared Lives carers across the organisation as a result.

Alongside front line activities, Avalon continues to invest in and improve its support services to allow colleagues to work more efficiently. An example of this was the roll-out of mobile phones for all support workers during the year for improved communication across the Avalon community. This forms the platform for the digitalisation process so that our people can spend more time adding value in their role and not on paperwork.

Although Covid-19 continues to challenge the way we work, forward planning on the new strategy is well underway to shape the medium to long term future of Avalon. The experience and resilience we have developed over the last year will be integral in delivering continual improvement across the organisation to ensure we provide high quality and responsive support in the years to come.

For more information on all topics please visit our website, where you will find more stories, details of the support we can provide, details on our Covid-19 response and also how to contact your local Avalon office.

Stephen Fox

Chair of Trustees

Page 3

Trustees’ Report for the Year ended 31 March 2021

The trustees present their annual report together with the audited financial statements of the Avalon Group (Social Care) (the company) for the year ended 31 March 2021.

Reference and administrative information set out on page 1 and 2 forms part of this report. The trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

A. Avalon’s Objectives and Activities

Purposes and aims

Avalon Group’s vision is to be recognised as a high quality social care provider in the North of England, providing Community Support and Shared Lives services to disabled people of a working age, older adults and young people in transition.

Our mission is to enable people to live fulfilling lives in the community. This means tackling loneliness, promoting choice, control and independent living, and empowering people to live the lives they want to live.

In order to make this vision a reality, we are committed to the following values which influence our strategic priorities and guide our day to day work:

The charity reviews its aims, objectives and activities each year to ensure it remains focused on its stated purposes. This report looks at what the charity has achieved and the outcomes of its work within the previous twelve months. The trustees report on the success of each key activity and the benefits they have brought to those groups of people the charity was set up to support.

The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and when planning its future activities.

Strategic Report

B. Achievements and performance

During the year ended 31 March 2021, the Avalon Group supported more than 500 people with learning disabilities, people living with dementia and/or mental health challenges, commissioned by 19 Local Authorities and NHS Clinical Commissioning Groups across Yorkshire and the North East of England. Services included supported living services, community support and Shared Lives long term and short term breaks. We supported people with a wide spectrum of needs, from mild to moderate learning disabilities to people with profound and multiple learning disabilities, sensory and physical disabilities and complex health needs.

Key successes in the year include:

Page 4

Trustees’ Report for the Year ended 31 March 2021

Set out below is a summary of the specific activities from the year 2020-21 along with the objectives we set for that year.

Strategic objective Activitiesplanned Activitiesperformed
Excellence- to provide
high quality care and
continue to develop
relationship
based
social care and create
personalised support.		 •
Strengthen
Inclusion
in
partnership
with
our
customers
•
Invest
in
initiatives
that
increase our ability to support
people with varied needs and
in the changing environment
•
Establish and embed new
support pathways embracing
Active Support		 •
Avalink
Committee
continues
to
support
localities
to
facilitate
meaningful
user-led
participation in Avalon’s ongoing development.
Face to face meetings were replaced with Zoom
meetings during lockdown and support focused
on improving digital skills.
•
In March, we were successful in a bid to the Good
Things Foundation (working in partnership with
AbilityNet) to receive 41 tablet devices for
digitally excluded customers to connect with
family, friends and local support services during
lockdown.
People- create a
culture that allows
people to flourish and
provide
a
positive
environment
where
people have the tools,
support and skills they
need.		 •
Establish
competitive
and
sustainable
Terms
and
Conditions of service for all
colleagues
•
Improve
and
develop
a
Communication Strategy with
all stakeholders
•
Develop
a
Positive
Engagement
Strategy
for
recruitment
that
targets
diverse
communities
and
harder to reach groups
•
Embed our Recruitment and
Retention processes, including
wellbeing of staff		 •
We benchmarked salaries for all roles externally
and awarded an annual pay increase for all
employees in October 2020 to keep salaries in line
with our peers. To reflect the significant pressure
staff were facing, a one-off bonus of £100 for all
employees (excluding Directors) was also paid in
March 2020.
•
A new online benefits hub including access to new
discounted products and services was launched in
year.
•
We focused on internal communications to
respond to the challenges of remote working,
including
introducing
new
communication
channels such as OpComms and regular staff,
customer & wellbeing surveys.
•
An attraction and retention plan was created
during the year, focussing on:
•Targeted adverts to encourage applications
from diverse communities based on detailed
analysis of workforce demographics and
identifying under-represented groups
•Our recruitment and retention process was
refreshed in the year including:
•New recruitment KPI’s to monitor each
stage of the process
•New starter and exit surveys
•Localised recruitment campaigns
•
Our wellbeing offer was developed to include:
•Wellbeing support through partnership
with Able Futures
•Training of Mental Health First Aiders
•The setting up of a new wellbeing group
(TalkingWellness)

Page 5

Trustees’ Report for the Year ended 31 March 2021

Strategic objective Activitiesplanned Activitiesperformed
Social
care
-
contribute
to
the
shaping of social care,
ensuring
our
offer
reflects the evolving
needs of the social
care sector.		 •
Consolidate
and
develop
relationships and partnerships
to
improve
the
housing
arrangements
for
our
customers
•
Ongoing
review
of
our
offerings
to
ensure
they
remain
relevant
and
sustainable throughout the
evolving demands created by
the ongoing pandemic
•
Continue
to
develop
our
shared lives services for people
with mental health needs
•
Contribute to shaping the
landscape
through
representation on national and
local key working groups.		 •
We continued to work in partnership with Golden
Lane Housing Association to transfer direct
customer
tenancies
for
supported
living
properties to as well as to identify new
development
opportunities
to
improve
customers’ housing provision.
•
During the year, quarterly Locality Business
Reviews were established to review and develop
service offerings in each area ensuring Avalon
responds to customer and community needs and
continues to provide a sustainable service
provision.
•
Shared Livesgrant monies from City of York
Council funded the development of the Shared
Lives model for a wider customer group including
Mental Health and Transitions.
•
AMental Health leadwas established during the
year to support the continued development in
this area.
•
The directors continue their active membership
of key working groups such as VODG and the ICG
with the aim of influencing and helping shape
future models of care.
Continuous
improvement
-
continue to modernise
working practice that
meets the needs of
colleagues
and
customers.		 •
Update
the
governing
documents of the charity in
response to the findings of the
governance review and ensure
all stakeholders are fully aware
of the role they have to play in
achieving the charity’s objects
•
Continue to modernise and
develop
our
shared
lives
service incorporating feedback
from customers, carers and
families
•
Full
roll-out
of
electronic
verification of support calls to
achieve efficiencies through
improved business systems
and to enhance colleagues’
working experience		 •
Governance –The charity’s governing documents
have been reviewed and updated in order to
ensure relevant and effective for current charity
activities. This included changing our company
name from Adult Placement Services Limited to
Avalon Group (Social Care) to better reflect our
current charity. A preliminary self-assessment
was undertaken to consider Avalon’s governance
framework with the Charity Governance Code’s 7
Principles to identify key themes for further
evaluation and monitoring.
•
Shared Lives Plus funded us to partner on a
national project looking at innovative ways to
recruit carers. Through use of digital tools and
analysis of local demographic data, we created
several targeted online campaigns to reach new
applicants. This led to the recruitment of 30 new
carers in a 5 month period
•
Recognising that Shared Lives needs its own
space in the online environment, we developed a
specific website dedicated to Shared Lives, with a
focus
on
identifying
new
carers
(www.avalonsharedlives.co.uk).
•
Working in partnership with large, independent
providers (including CVT, Shared Lives Southwest,
and Possibilities) we have created a more
streamlined carer application and assessment
process, reducing carer approval times from 4-6
months to 1-2 months,without impacting quality.

Page 6

Trustees’ Report for the Year ended 31 March 2021

Strategic objective Activitiesplanned Activitiesperformed
•
ICT modernisationactivities in the year included:
•Full roll-out of electronic verification of
support calls.
•
Completing a tender process for the outsource
ICT provider and for the Cloud migration project
planned for 2021/22
Sustainability
-
continue to develop
and invest in new
initiatives which are
appropriate
to
our
core
business
and
values.		 •
Develop
a
Business
Development
strategy
to
identify sustainable sources of
grant
funding
supporting
strategic growth projects.
•
Manage our existing resources
effectively
to
maximise
efficiency.		 •
Priorities for Business Development for the year
were agreed as:
•Maintain existing key contracts
•Seek new work in identified areas for
development with a focus on Supported
Living delivery;
•Seek relevant grant funding to support
strategic growth projects;
•Develop partner projects to enhance our
organizational offering and support the
submission of future tenders and grant
applications;
•Support organizational development by
assisting localities with their own growth
plans, and supporting internal process
improvements such as the Shared Lives
assessment processes.
•
A full Business Development Strategy will be
developed with the next 3 year plan to underpin
strategicgrowth.

C. Financial Review

Avalon continues to operate in a financially challenging environment, as wage costs increase and pressures on funding escalate across the sector. Despite this, we generated an unrestricted surplus for the year of £187,895 (2020: £185,648). Restricted funds increased in the year by £43,388 (2020: £2,299).

Income from charitable activities was £11.3m (2020: £10.9m) for the year ended 31 March 2021. Income from supported living reduced to £6.6m from £6.8m in 2020, whilst Shared Lives income continued to grow to £4.6m from £4.1m at 31 March 2020.

Free reserves at 31 March 2021 are £1,025,873 compared to £963,275 at 31 March 2020.

In addition to our cash surplus, our improved cash position of £2.1m at the end of March 2021 (£973,892 at March 2020) reflected the change in payment profile during Covid-19 when a number of local authorities moved to paying planned delivery one month in advance.

Risk

The Avalon Group’s principal objectives for managing risks are to: aid achievement of its strategic objectives

As part of the ongoing governance review, the process for managing and monitoring the Risk Register was reviewed during the year with the support of a Risk Consultant and each risk scrutinised by the Senior Management Team and trustees to arrive at a concise document which can be actively used to identify and respond to emerging risk profiles more efficiently and effectively. Each risk now has a clear business owner and is updated in real time by the Senior Management Team and reported at the trustees’ sub-committees and the main board of trustees’ meetings.

Page 7

Trustees’ Report for the Year ended 31 March 2021

Following this in depth review of our risk position, we have identified the principal High Risks at 31 March 2021 as:

Risk Mitigants
Staff recruitmentremains a challenge (on occasions, we
are forced to turn down new work due to insufficient
staff). The risk is compounded by staff availability during
Covid-19.		 •
Creative and tailored recruitment solutions such as
Facebook adverts.
•
Regular review of staff pay linked to new National Living
Wage requirements.
•
Use of agencystaff where available.
Contract income risk- Large contracts and frameworks
continue to be commissioned on a rolling basis, typically
on a 3-5 year basis.		 •
Avalon retains a strong reputation will all commissioners
through ongoing quality of performance and good
relationships with all local authorities.
•
When there is a significant contract due for renewal or
retender, Avalon takes a proactive approach in retaining
the contract balanced with scenario planning for any loss
of income to ensure we remain sustainable as a charity.
Covid-19
The pandemic has increased the likelihood and impact
of failing to adhere to:
•
evolving Health & Safety requirements
•
changes to sickness pay and process following
guidance around self-isolation and shielding
The pandemic has also impacted delivery of services as
customers move back with families and where day
services are on hold or working at reduced capacity.
This, alongside the increasing costs associated with
Covid-19 such as agency staff and weekly testing of
support workers, increases the financial risk of the
charity.		 •
Ordering of PPE and cleaning supplies continues to be
prioritised and the implementation of all changes
cascaded to all staff as and when changes occur.
•
Changes to sickness pay and process following guidance
around self-isolation and shielding continues to be
updated on a regular basis and communication with staff
is ongoing to ensure infection control risk is mitigated as
far as possible.
•
During the year, additional costs relating to the purchase
of PPE and the payment of staff who are self-isolating in
line with government guidelines have been mitigated by
the provision of Infection Control Fund grant income
from each local authority.
•
During the year reduction in income due to Covid-19 was
topped up by commissioners who funded contracted or
planned hours for the initially until support hours
recovered.
•
Avalon delivered hours are monitored on a weekly basis
along with associated cash flow impacts to identify early
significant trends that could have an impact on the
financial position.
•
To date, strong relationships with commissioners have
resulted in continued financial support beyond the initial
offer and additional referrals are being taken on to
mitigate against the reduction in delivered hours where
capacityexists across our services.

Our Risk Register contains detailed explanations for each risk, a score for both impact and likelihood and the existing mitigants, which reduce our exposure to the overall risk.

Principal funding sources

The majority of our funding is from Local Authorities who continue to face their own challenges in relation to availability of funding at the same time as an increase in demand from those in need. We continue to work well with the local authorities, building on solid relationships to work together through these pressures.

Fundraising

The Avalon Group does not engage in large scale levels of public fundraising and does not use professional fundraisers or commercial participators. The charity nevertheless observes and complies with the relevant fundraising regulations and codes. During the year there was no non-compliance of these regulations and codes and the charity received no complaints relating to its fundraising practice.

Page 8

Trustees’ Report for the Year ended 31 March 2021

Reserves Policy

Free reserves at 31 March 2021 are £1,025,873 (2020: £963,275). These are the net funds of £1,906,562 available after deducting fixed assets (net of associated bank loans) of £534,000, Restricted Funds of £72,866 (2020: £29,478) and Designated Funds of £273,823.

The trustees have reviewed the level of reserves required to take account of known liabilities and possible contingencies. The Risk Register is reviewed on a regular basis and informs the Reserves Policy to ensure that we consider funds that enable us to deal with situations in a sustainable way, for example the loss of a major contract, a short term cash flow problem due to late payment for a significant contract or the long term sickness of a key member of staff.

The required reserves estimate at 31 March 2021 is £1,009,200, following a review this year to ensure that potential additional risks to our operations arising from the pandemic are incorporated into this value.

At 31 March 2016 we created the Designated Fund of £200,000. This was to enable us to strengthen the organisation through both an ICT modernisation programme and expansion via business opportunities that fit with our priorities and core values. In the year ended 31 March 2021 no further resource was allocated from Designated Funds, however, the trustees have decided to increase this balance by £100,000 for the purpose of funding future projects which develop Avalon’s organisational infrastructure. A number of projects have commenced during the year ended 31 March 2022 and the fund total is £273,823.

Our Reserves policy, which has been reviewed this year, also states that reserves should be held in the form of cash and near cash investments. We review our Reserves policy at least annually and more frequently if we perceive there are significant changes in our risk exposure.

D. Plans for future periods

Changes in the sector continually require us to revisit strategic priorities and ways of working. We require a strategy that incorporates the risks and uncertainty we face and enables us to respond to changes swiftly and confidently. This has been tested significantly since March 2020 as we respond to the significant challenges the Covid-19 pandemic has caused the UK.

Despite the large scale uncertainty faced by the sector as a result of the pandemic, the five strategic priorities continue to underpin all of Avalon’s activities (Excellence, People, Social Care, Continuous Improvement and Sustainability).

The table below sets out the key plans associated with each of the strategic priorities.

Strategic objective Activitiesplanned
Excellence- to provide high quality care and
continue to develop relationship based
social care and create personalised support.		 •Relaunch Avalink and continue to explore opportunities to work in
close collaboration with customers
•Develop a fresh website and a new marketing approach (including
branding) to reflect the new identity of the charity, in consultation with
customers and staff
People- create a culture that allows people
to
flourish
and
provide
a
positive
environment where people have the tools,
support and skills they need.		 •Work with the People Committee to implement our People Plan
including:
•Excellence in supporting internal stakeholders with wellbeing
initiatives
•Establish an Agile Working Policy, in consultation with staff
•Continue to expand staff benefits, and publish
•Improve recruitment process to ensure Operational Staff can achieve
growth levels

Page 9

Trustees’ Report for the Year ended 31 March 2021

Strategic objective •Activitiesplanned
Social care- contribute to the shaping of
social care, ensuring our offer reflects the
evolving needs of the social care sector.		 •Informed by intelligence in each area establish a locality Service Offer
detailing what can be delivered in each location, this will include
mental health and dementia where possible.
•Complete and implement changes in our approach to Shared Lives,
including recruitment of shared, respite payments review processes.
•Progress Housing Strategy transferring lease responsibility to Housing
Providers and developing additional supported living in localities
where needs have been identified.
•Explore opportunities to establish services in neighboring areas as well
as expanding in current localities.
•Strengthen our mental health offer and relationships with mental
health commissioners
Continuous improvement- continue to
modernise working practice that meets the
needs of colleagues and customers.		 •Digital Transformation - Conduct reviews of core business processes of
the charity moving to implement digital solutions where possible.
•Work with new ICT Provider to improve connectivity, reduce reliance
on current physical server and introduce Microsoft Office 365.
•Review Health & Safety policies and its management arrangements.
Sustainability- continue to develop and
invest in new initiatives which are
appropriate to our core business and
values.		 •Clear plans to deal with any risks associated with loss of income due to
loss of contracts.
•Generate £200k additional funding from grant funds and other form of
fundraising.

E. Structure, Governance and Management

Legal

The Avalon Group is a charitable company limited by guarantee.

Responsibility of the Board and Committees

The trustees (who are also directors of Avalon for the purposes of company law) are responsible for preparing the Trustees’ Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

Page 10

Trustees’ Report for the Year ended 31 March 2021

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

Key Management Pay and Remuneration

Pay for senior managers is determined by reference to market salary rates, taking into account individual’s experience and skills. Pay scales are set for all posts within Avalon, including those of senior managers. The Remuneration Committee agrees the pay for all Directors and also any major changes to pay scales for other staff.

Statement of Trustees

In accordance with company law, we, the company’s Directors, certify that as far as we are aware, there is no relevant audit information of which the company’s auditor is unaware. In addition, the Directors have taken all the necessary steps that they ought to have taken as Directors, in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Committees

There are four Committees, made up of trustees and senior managers:

Recruitment and Appointment to the Board

Under the requirements of the Memorandum and Articles of Association, the trustees are elected to serve for 3 years and retire by rotation. Retiring Trustees, if willing to continue to serve, may be re-elected by members’ resolution.

Page 11

Trustees’ Report for the Year ended 31 March 2021

Trustee Training and Induction

The Board of Trustees regularly reviews the skills and expertise of the group. This is led by the Chair in consultation with the Chief Executive Officer. The recruitment process for trustees aims to fill the identified voids and the key skills necessary to support the organisation’s strategic needs.

The number of trustees is subject to a minimum of 3 members with no maximum. Each prospective trustee is interviewed initially by the Chief Executive Officer and the Chair of the Board. If successful, they undergo a full induction programme including meeting with Avalon staff, as well as being provided with ongoing training and an information pack.

Voluntary support

The Trustees involvement with Avalon is in a purely voluntary capacity. The Trustees provide a range of skills, including but

not limited to; legal matters, new and existing business growth strategies, good governance and risk strategies.

No Trustee has received any remuneration in the current or previous year for these activities. During the year to 31 March 2021 we paid trustees expenses of £nil (2020: £534), which was to cover travel and mileage charges.

Auditor

The auditor, BHP, Chartered Accountants, have indicated their willingness to continue in office. The Designated Trustees will propose a motion re-appointing the auditors at a meeting of the trustees on 25 November 2021.

This report including the strategic report was approved by the trustees on 25 November 2021 and signed on their behalf by:

Stephen Fox (Nov 26, 2021 15:21 GMT)

Stephen Fox

Chair of the Board of Trustees

Page 12

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AVALON GROUP (SOCIAL CARE)

Opinion

We have audited the financial statements of Avalon Group (Social Care) (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, 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).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' 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 charitable company'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 Trustees with respect to going concern are described in the relevant sections of this report.

Page 13

(A company limited by guarantee)

AVALON GROUP (SOCIAL CARE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AVALON GROUP (SOCIAL CARE) (CONTINUED)

Other information

The other information comprises the information included in the Trustees' Report, other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Trustees' Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 14

(A company limited by guarantee)

AVALON GROUP (SOCIAL CARE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AVALON GROUP (SOCIAL CARE) (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

Page 15

(A company limited by guarantee)

AVALON GROUP (SOCIAL CARE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AVALON GROUP (SOCIAL CARE) (CONTINUED)

To address the risks of fraud through management override controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our Auditors' report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Marshall (Nov 29, 2021 12:50 GMT)

Jane Marshall (Senior statutory auditor) for and on behalf of BHP LLP Chartered Accountants Statutory Auditor Rievaulx House 1 St Mary's Court York YO24 1AH Date: Nov 29, 2021

Page 16

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Donations and legacies
4
Charitable activities
5
Investments
6
Other income
7
Total income
Expenditure on:
Charitable activities
8
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
847
11,263,338
474
74,429
11,339,088
11,151,193
11,151,193
187,895
1,645,801
187,895
1,833,696		 Restricted
funds
2021
£
261,982
-
-
-
261,982
218,594
218,594
43,388
29,478
43,388
72,866		 Total
funds
2021
£
262,829
11,263,338
474
74,429
11,601,070
11,369,787
11,369,787
231,283
1,675,279
231,283
1,906,562		 Total
funds
2020
£
36,870
10,909,472
3,984
-
10,950,326
10,762,173
10,762,173
188,153
1,487,126
188,153
1,675,279

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 21 to 40 form part of these financial statements.

Page 17

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

REGISTERED NUMBER: 02976727

BALANCE SHEET

AS AT 31 MARCH 2021

Note
Fixed assets
Intangible assets
12
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one year
15
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
16
Total net assets
Charity funds
Restricted funds
17
Unrestricted funds
17
Total funds		 1,395,345
2,106,009
3,501,354
(2,153,807)		 2021
£
143
558,872
559,015
1,347,547
1,906,562
-
1,906,562
72,866
1,833,696
1,906,562		 1,570,016
973,892
2,543,908
(1,426,210)		 2020
£
4,879
577,730
582,609
1,117,698
1,700,307
(25,028)
1,675,279
29,478
1,645,801
1,675,279

Page 18

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2021

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Stephen Fox (Nov 26, 2021 15:21 GMT)

Larry Hollando (Nov 26, 2021 15:55 GMT)

Stephen Fox

L Hollando

Date: 25 November 2021

The notes on pages 21 to 40 form part of these financial statements.

Page 19

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Note
Cash flows from operating activities
Net cash provided by operating activities
20
Cash flows from investing activities
Bank interest
Purchase of tangible fixed assets
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
21		 2021
£
1,157,016
474
(345)
129
(25,028)
(25,028)
1,132,117
973,892
2,106,009		 2020
£
441,112
3,984
(11,185)
(7,201)
(46,650)
(46,650)
387,261
586,631
973,892

The notes on pages 21 to 40 form part of these financial statements

Page 20

(A company limited by guarantee)

AVALON GROUP (SOCIAL CARE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. General information

The Avalon Group is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (issued in October 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Avalon Group (Social Care) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

2.2 Going concern

The Trustees have considered their forecasts of income and expenditure for the period to 31 March 2023 and subjected these forecasts to sensitivity analysis which shows that they have sufficient reserves to be able to continue for the foreseeable future. The Trustees therefore continue to adopt the going concern basis of preparation for these financial statements.

Page 21

(A company limited by guarantee)

AVALON GROUP (SOCIAL CARE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.3 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Donated services or facilities are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Grants received in relation to the government Coronavirus Job Retention Scheme (Furlough) have been recognised within other operating income. The grant is accounted for on the accruals basis once the related payroll return has been submitted.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Governance costs are those incurred in connection with administration of the charity and compliance withconstitutional and statutory requirements.

All expenditure is inclusive of irrecoverable VAT.

Page 22

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 Intangible assets and amortisation

Intangible assets are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.

The estimated useful lives are as follows:

Amortisation is provided on the following basis:

Software licenses - 33 % on cost

2.8 Tangible fixed assets and depreciation

Tangible fixed assets are capitalised when the cost is £500 or more and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Page 23

(A company limited by guarantee)

AVALON GROUP (SOCIAL CARE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.9 Debtors

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

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.12 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.13 Operating leases

Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.14 Pensions

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

Page 24

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.15 Employee benefits

The cost of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

2.16 Fund accounting

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

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

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

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

The charity has recorded a liability for potential employee pay liabilities, the outcome of which is not known with certainty and is dependent on future events.

Page 25

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

4. Income from donations and legacies

Donations
City of York Shared Lives
Government grants
Total 2020
5.
Income from charitable activities
Supported Living
Shared Lives
Learning & Development
Other income
Total 2020		 Unrestricted
funds
2021
£
847
-
-
847
6,894		 Restricted
funds
2021
£
10,112
30,046
221,824
261,982
29,976
Unrestricted
funds
2021
£
6,617,345
4,635,100
-
10,893
11,263,338
10,909,472		 Total
funds
2021
£
10,959
30,046
221,824
262,829
36,870
Total
funds
2021
£
6,617,345
4,635,100
-
10,893
11,263,338
10,909,472		 Total
funds
2020
£
6,894
29,976
-
36,870
Total
funds
2020
£
6,828,925
4,053,958
7,125
19,464
10,909,472

Page 26

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

6. Investment income

Bank interest
Total 2020
7.
Other incoming resources
Coronavirus job retention scheme grant		 Unrestricted
funds
2021
£
474
3,984
Unrestricted
funds
2021
£
74,429		 Total
funds
2021
£
474
3,984
Total
funds
2021
£
74,429		 Total
funds
2020
£
3,984
Total
funds
2020
£
-

Page 27

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

8. Charitable activities

Staff & Providers
Housing
Premises
Office & Consumables
Compliance
Other Costs
Group Allocated
Audit (Governance Costs)
Total 2020		 Supported
living
2021
£
5,402,767
141,543
67,503
109,817
7,022
21,057
531,582
-
6,281,291
6,428,643		 Shared lives
2021
£
4,490,986
-
56,767
57,496
5,906
17,708
447,033
-
5,075,896
4,320,930		 Governance
2021
£
-
-
-
-
-
-
-
12,600
12,600
12,600		 Total
funds
2021
£
9,893,753
141,543
124,270
167,313
12,928
38,765
978,615
12,600
11,369,787
10,762,173		 Total
funds
2020
£
9,367,860
225,461
139,385
94,638
23,777
29,208
869,244
12,600
10,762,173

9. Auditors' remuneration

Fees payable to the charity's auditor for the audit of the charity's annual accounts

2021 2020
£ £
12,600 12,600

10. Staff costs

Wages and salaries
Social security costs
Other pension costs		 2021
£
5,888,388
451,934
131,052
6,471,374		 2020
£
5,852,835
439,043
128,693
6,420,571

Page 28

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

10. Staff costs (continued)

The average number of persons employed by the charity during the year was as follows:

Support workers
Charitable activities
Management & administation of the charity		 2021
No.
270
46
30
346		 2020
No.
255
49
32
336

The average headcount expressed as full-time equivalents was:

Support workers
Charitable activities
Management & administration of the charity		 2021
No.
183
47
35
265		 2020
No.
222
48
29
299

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2021 2020
No. No.
In the band £70,001 - £80,000 1 1

The value of pension contributions to staff within the above bands is £4,557 (2020: £4,163).

The total amount of employee benefits (including employer pension contributions and national insurance) received by key management personnel is £341,856 (2020: £318,618). Until April 2020 the charity considered its key management personnel to comprise of the Chief Executive Officer, Deputy Chief Executive Officer, Director of Finance & Corporate Services and both Deputy Directors of Operations. From May 2020 the charity considers its key management personnel to comprise of the CEO, Director of Operations, Director of People & Culture and Director of Finance & Corporate Services.

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 31 March 2021, expenses totalling £nil were reimbursed or paid directly to no trustees (2020: £534 were reimbursed or paid directly to 2 trustees).

Page 29

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

12.
Intangible assets
Cost
At 1 April 2020
At 31 March 2021
Amortisation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Software
licenses
£
35,730
35,730
30,851
4,736
35,587
143
4,879

Page 30

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

13. Tangible fixed assets

Cost or valuation
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
property
£
639,569
-
639,569
84,194
9,785
93,979
545,590
555,375		 Motor vehicles
£
11,005
-
11,005
11,005
-
11,005
-
-		 Fixtures and
fittings
£
51,374
345
51,719
43,676
2,528
46,204
5,515
7,698		 Office
equipment
£
162,043
-
162,043
147,386
6,890
154,276
7,767
14,657		 Total
£
863,991
345
864,336
286,261
19,203
305,464
558,872
577,730

Page 31

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

14. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income
Creditors: Amounts falling due within one year
Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 April 2020
Resources deferred during the year (new deferred income)
Amounts released from previous periods		 2021
£
1,099,218
30,872
265,255
1,395,345
2021
£
25,015
400,529
152,766
376,800
1,198,697
2,153,807
2021
£
12,019
16,209
(7,057)
21,171		 2020
£
1,257,966
13,767
298,283
1,570,016
2020
£
48,878
165,010
126,538
92,176
993,608
1,426,210
2020
£
9,631
6,142
(3,754)
12,019

15. Creditors: Amounts falling due within one year

The bank loan is repayable in monthly instalments over 6 months years and bears interest at 4.67%. The loan is secured by a legal charge over the freehold property.

Deferred income relates to amounts received in advance of projects being undertaken or work completed.

Page 32

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

16. Creditors: Amounts falling due after more than one year

Bank loans
17.
Statement of funds
Statement of funds - current year
Unrestricted funds
Designated funds
Funds to strengthen the long term
future of Avalon
Funding for beneficial significant
IT projects
General funds
General funds
Total Unrestricted funds		 Balance at 1
April 2020
£
129,038
44,785
173,823
1,471,978
1,645,801		 Income
£
-
-
-
11,339,088
11,339,088		 Expenditure
£
-
-
-
(11,151,193)
(11,151,193)		 2021
£
-
Transfers
in/out
£
100,000
-
100,000
(100,000)
-		 2020
£
25,028
Balance at 31
March 2021
£
229,038
44,785
273,823
1,559,873
1,833,696

Page 33

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

17. Statement of funds (continued)

Restricted funds
Shared Lives Plus grant
West Yorkshire Fundraising
Inclusion
Wakefield Rotary Club
Ship Drop-In
City of York Shared Lives
Pavers grant
Harrogate Fundraising
Scarborough Fundraising
Teeside Fundraising
NYCC infection control grant
York infection control grant
Doncaster infection control grant
Kirklees infection control grant
Middlesborough infection control
grant
Doncaster - ICF for Carers
Other restricted funds
Skipton Fundraising
Wakefield Rapid Testing Fund
Avalark Fundraising
Total of funds		 Balance at 1
April 2020
£
-
300
250
100
1,011
23,414
1,966
1,074
658
637
-
-
-
-
-
-
68
-
-
-
29,478
Balance at 1
April 2020
£
1,675,279		 Income
£
30,046
-
-
-
-
-
-
389
-
-
107,395
42,388
9,792
25,320
27,385
5,192
2,348
5,000
3,850
2,877
261,982
Income
£
11,601,070		 Expenditure
£
(30,046)
-
-
-
-
(23,414)
(1,966)
-
-
-
(101,836)
(12,542)
(3,719)
(23,940)
(15,453)
(5,190)
(488)
-
-
-
(218,594)
Expenditure
£
(11,369,787)		 Transfers
in/out
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Transfers
in/out
£
-		 Balance at 31
March 2021
£
-
300
250
100
1,011
-
-
1,463
658
637
5,559
29,846
6,073
1,380
11,932
2
1,928
5,000
3,850
2,877
72,866
Balance at 31
March 2021
£
1,906,562

Page 34

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

17. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Funds to strengthen the long term future of
Avalon
Funding for beneficial significant IT projects
General funds
General funds
Total Unrestricted funds		 Balance at
1 April 2019
£
129,038
44,785
173,823
1,286,124
1,459,947		 Income
£
-
-
-
10,920,350
10,920,350		 Expenditure
£
-
-
-
(10,734,496)
(10,734,496)		 Balance at
31 March
2020
£
129,038
44,785
173,823
1,471,978
1,645,801

Page 35

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

17. Statement of funds (continued)

Restricted funds
Inclusion
Wakefield Rotary Club
Ship Drop-In
City of York Shared Lives
Pavers grant
Harrogate Fundraising
Scarborough Fundraising
Teeside Fundraising
Northallerton Fundraising
West Yorkshire Fundraising
Total of funds		 Balance at
1 April 2019
£
250
100
1,011
11,838
11,000
1,117
658
637
68
500
27,179
1,487,126		 Income
£
-
-
-
29,976
-
-
-
-
-
-
29,976
10,950,326		 Expenditure
£
-
-
-
(18,400)
(9,034)
(43)
-
-
-
(200)
(27,677)
(10,762,173)		 Balance at
31 March
2020
£
250
100
1,011
23,414
1,966
1,074
658
637
68
300
29,478
1,675,279

Description of funds

Funding for beneficial significant IT projects - Investments to eventually save management time in localities. Short term funding would be required to reap the benefits. It is anticipated that this fund would be spent by the end of March 2022 at the latest.

Funds to strengthen the long term future of Avalon - Investments in new services to increase the security and longevity of Avalon. It is anticipated that this fund will be used within the next 2 years, subject to financial scrutiny and Board approval.

Shared Lives Plus grant - funding to develop an accelerated process for recruiting carers via an online recruitment and assessment platform

Inclusion - donations received from The Yorkshire & Clydesdale Bank Foundation (£50) and Dickinson Dees Solicitors of York (£250) intended to fund the activities of Bubble Enterprises.

Wakefield Rotary Club - a grant for the set up costs of the social group opened for our customers in Wakefield.

Ship Drop-In - donated for social events for customers attending dementia services in Northallerton.

Page 36

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

City of York Shared Lives - service level agreement to deliver a project in relation to development of Shared Lives and Mental Health.

Pavers Grant - grant funding for a project in relation to Shared Lives and Mental Health.

Harrogate/Northallerton/Scarborough/Teesside/West Yorkshire/Skipton/Avalark office fundraising - donated monies and fundraising held for the use of each locality office and their customers.

NYCC/York/Doncaster/Kirklees/Middlesborough Council infection control grants - funding from local authorities for the purpose of measures introduced o reduce infection control risk across the services.

Wakefield Rapid Testing Fund - local authority grant funding for the purpose of additional time/costs incurred on rapid flow testing staff.

Other Restricted funds - includes Northallerton Fundraising, Northallerton Covid-19 communities fund, Out and About fundraising and Head Office fundraising.

Transfers between funds - represent the desigation of unrestricted funds for specific future projects.

18. Summary of funds

Summary of funds - current year

Designated funds
General funds
Restricted funds
Summary of funds - prior year
Designated funds
General funds
Restricted funds		 Balance at 1
April 2020
£
173,823
1,471,978
29,478
1,675,279		 Income
£
-
11,339,088
261,982
11,601,070
Balance at
1 April 2019
£
173,823
1,286,124
27,179
1,487,126		 Expenditure
£
-
(11,151,193)
(218,594)
(11,369,787)
Income
£
-
10,920,350
29,976
10,950,326		 Transfers
in/out
£
100,000
(100,000)
-
-
Expenditure
£
-
(10,734,496)
(27,677)
(10,762,173)		 Balance at 31
March 2021
£
273,823
1,559,873
72,866
1,906,562
Balance at
31 March
2020
£
173,823
1,471,978
29,478
1,675,279

Page 37

(A company limited by guarantee)

AVALON GROUP (SOCIAL CARE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Total
Analysis of net assets between funds - prior year
Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2021
£
558,872
143
3,428,488
(2,153,807)
1,833,696
Unrestricted
funds
2020
£
577,730
4,879
2,514,430
(1,426,210)
(25,028)
1,645,801		 Restricted
funds
2021
£
-
-
72,866
-
72,866
Restricted
funds
2020
£
-
-
29,478
-
-
29,478		 Total
funds
2021
£
558,872
143
3,501,354
(2,153,807)
1,906,562
Total
funds
2020
£
577,730
4,879
2,543,908
(1,426,210)
(25,028)
1,675,279

Page 38

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

20. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Amortisation charges
Bank interest
Decrease in debtors
Increase in creditors
Net cash provided by operating activities		 2021
£
231,283
19,203
4,736
(474)
174,671
727,597
1,157,016		 2020
£
188,153
17,307
4,736
(3,984)
84,734
150,166
441,112

21. Analysis of cash and cash equivalents

Cash in hand
Total cash		 2021
£
2,106,009
2,106,009		 2020
£
973,892
973,892

22. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1 April
2020
£
973,892
(48,878)
(25,028)
899,986		 Cash flows
£
1,132,117
(25,028)
-
1,107,089		 Other non-
cash changes
£
-
48,891
25,028
73,919		 At 31 March
2021
£
2,106,009
(25,015)
-
2,080,994

Page 39

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

23. Pension commitments

The charity operates a defined contributions pension scheme. The assets of the scheme are held separately fromthose of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund. The amount recognised as an expense in the period was £131,052 (2020: £128,693). Contributions totalling £25,203 (2020: £21,788) were payable to the fund at the balance sheet date and are included in creditors.

24. Operating lease commitments

At 31 March 2021 the charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Between 1 and 5 years		 2021
£
39,513
67,931
107,444		 2020
£
20,102
48,975
69,077

25. Related party transactions

The following payments were made to the business of a member of the board of trustees during the year:

£22,562 (2020: £41,557) was paid to Deans Computer Services PLC for IT services, a company where a Trustee, Barry Rankin, is a Director. The company has used Deans Computer Services PLC for a number of years prior to Barry Rankin becoming a Trustee. At the year end there was a balance outstanding of £1,715 (2020: £520).

Page 40