Registered number= 02976727 Charity nLrmber.' 1048236 AVALON GROUP (SOCIAL CARE) (A company limited by guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 ',IiinThll *ABHQNSQ84 2811112022 COMPANIES HOUSE A07
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AVALON GROUP150CIAL CARE) IA company limited by guarantee) CONTENTS Page Relerence and adminlstrative deiails of the tharity. its Trustees and ad¥lsers Trustees. report 3-14 Indepertdent auditor's report on the finan¢ial statements 15-18 Statement of financial artivitie5 19 Balance sheet 20 Statèmènt of cash flows 21 Notes to the financial statements 22-41
AVALON GROUP ISOOAL CARE) IA company limited by guaranteel REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022 Stephen Fox. Chair of the Board7 Karen Tyre113 Sandra Frier18 Joseph 8radleyl,4,8 Susan Howard6 Melvyn Ellis5 Susan Carr6 Mohammed Arif Awan lappointed 11 November 202114,6 Alistair How (appointed 6 December 202112 John Moore lappoinied 11 November 202114 Barry Rankin Iresigned 26 August 202114 jani Gowing (resigned 26 August 202116 Chair of Audit and Risk Committee 2 Member of Audit and Risk CDmmittee Chair of Business Development and Fundraising Committee Member of Business Development and Fundraising Cornmittee S Chair of People Committee 6 Member of People Committee 7 Chair of Remuneration Committee 8 Member of Remuneratton Committee Company rÈgisteTed number 02976727 Charity registered number 1048236 Reglstered offi<e 6 Grove Park Court Harrogate HGI 4DP Independent auditor BHP LLP Chartered Accountants Rievaulx House I St Mary's Court York Y024 IAH 5ollcltors Hemp50ns The Exchange Station Parade Harrogate HGI IDY Sènior management team Larry Hollando. Chief Executtve Officer and Company Secretary Emma Williams Dan Blackith Robbie Wright lunlil June 20211 Bev Wilson Ifrom Jvne 20211 P38e I
Trustees, Report for the Year ended 31 March 2022 l am pleased to present ourAnnual Report and Accounts for the year ended 31 Marth 2022 which piovide a full summary of the year's activities. Over the last ye3r. Avalon's most signrfic3nt achievernent has been to continue to deliver high-quality support services to our customers in the face of the continued excèptional challenges posed by thè Covid-19 pandemic. As always. I would like to begin by thankin8 all our staft, Shared Lives carers, custon)ers. families and trustees for their hard work and dedicètion as we continued to nawgate through the demands of the ongoing health emergency. We now emerge from the year stronger and I have been humbled by the compassion, resilience and integrtty 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 cvstomers and colleagues safe and well. Our priority continues to be the wellbèing of all our pèople. particularly in light of the significant resource pressures experienced bythe Sector duringthe setond half of the year. Wellbeing initiatives rolled out included the Mindful Employer Charrer. Mental Health First Aiders trainin8 and a Wellbeing Support pèck for all employees. Recruitment and retention initiatives such as the Welcome Bonus. an improved and expedited recruitment process and z review of the core benefits package have yielded results but this remains a key p¥essure for the charity. Shared Lives is also a key priority at Avalon both in terms of ensuring the Safety and wellbeing of our customers and carers and also growing the service to reach further and meet a wider range of needs in the community such as Mental Health and Transitions. The seThice is being developed to better meet resprte needs across the localities, further supporting families and customers. wellbeing. Alongside front line activities, Avalon continue5 to invest in and improve its support services to allow colleague5 to work more effictently. An example of this was the roll-out of Microsoft Teams following a tloud migration project. This form5 the platform for the digitalisation process so that our people can spend more time adding value in their role and not on paperwork. The year sees the Avalon Group Strale8ic Plan 2019-2022 draw to a close and reflecting on our successes and lessons learned provides a solid foundation for the creation of the next three year plan. A Board strategy day held irn March 2022 focussed on our long-term organisation31 growth and development in the context of a volatile external environment. The implementation of the 2022 Three Year Plan is now well underway and the experience and resilience we have developed over the last year wll be integral in delivering continual improvement across the or8anisation to ensure we provide high quality and responsive support in the years to come. For mole inforrnation on all topics please visit our website, where you will find more stories, detsils ol the svpport we can provide, detatls on our Covid-19 respan5e and a150 how ta contact your local A¥alan office. Chair of Trustees Page 2
Trustees. Report for the Year ended 31 March 2022 The trustees present their annual report together with the audtted financial statements of the Avalon Group (Social Carel (the companyl for the year ended 31 March 2022. Reference and administrative information set out on page I forms part of this report. The trusteès have adopted the provision5 of the Statement of Recommended Prartice ISORPI "Accounting and Reportin8 by Charities" in preparing thè annual report and finarntial statements of the charity. The frnancial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charit¢s governing document. the Charities Act 2011 and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparin8 their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019. Avalon's Ob"ertives 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. cor)trol and independent livin& and empowering people to live the lives they warnt to live. In order to make this vision a reality, we are committed to the following values which influence our strategic priorilies and guide our day to day work= Respert Inte8rity Learning & Reflection Working Together Quèlity The charity reviews its aims. objectives and activities e3ch year to ensu it remains focused on its stated purposes. This report looks at what the charity ha5 achieved and the outcomes of it5 work within the previous twelve months. Thetrustees report on the suttess of eath key attivityand the benefits they have brought to those groups of people the charity was set up to support. The trustees conlirrn that they have referred to the Buidance contained in the Chartty Commission's general guidance on public bet)efit when rewewing the charitvs aims and objectives and when planning it5 future activities. Strate icRe ort Achievements and erformance Durin8 the year ended 31 March 2022, the Avalon Group supported more than 5QJ people with learning disabilities. people living with dementia andlor 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 service5. Community Support and Shared Lives. We supported people with a wide spectrum of needs. from mild to moderate learning disabilities to people wilh profound and multiple learning disabilitie5, sensory and physical disabilities and complex health needs. Page 3
Trustees. Report for the Year ended 31 March 2022 A¢hievements and erformance- continued Key succe5se5 in the year include= Good CQC ratings- all locality office5 have continued to be rated-Good- in the year with Teesside receiving °Outstandin¢ in one line of enquiry. Sat15factlon surveys - provides vital insight into our perlorrnance from the perspective of our kev stakeholders. Examples of feedback are: 97% of our cu5tomer5 were satisfied with our overall support 95% of our customers would recommend us to a friend of our staff agree they play an important part in helping us to achieve our vtsion 88% of our staff feel motivated to give their best 70% of our staff agree that Avalon supports them to be their best. Consolidation of work - during ihe year we were 5ucces5ful in Joining the Hull DPS Supported Living framework. We were also successful in retaining the Wakefield My Life services contract. This reflects our strong reputation for providing both comrnunity support and shared lives service5. Set out below is a summary of the specific artivities from the year 2021-22 alon8 Wth the objectives we set for that year. Strategic objective Excellence- to provide high quality tare and continue to develop relationship based social care and create personalised support. Activities planned Relaunch Avalink and continue to explore opportunities to work in close collaboration wth customers Acttvities performed Avalink Committee continues to support localities to facilitate meaningful user-led participation Avalon's ongoing development. Face to face meetings were replaced with Zoom meetings during lockdown and support focused on improving digital skills. Funding was obtained during the year from Fronert which will be used to appoint a part- time Avalink co-ordinator so that specific resource is focu5sed on deliverin8 thi5 planned activity. Develop a fresh website and a new marketing approach lincludin8 branding) to reflert the new identity of the charity, in consultation with customers and staff Stralegic KPI At least 90% overall satisfaction acr05S the stsff. carer and customer annual surveys New website designed in partnership with internal stakeholders. including a large focus on accessibility. with Accessible plug-in ensuring users can personalise their accessible experience. s well as browse aloud functionality on ezch page. Site was launched in March 2022. Customer satisfaction overall was 96%, with staff overall figure 80% and c3rer figure at 80% Page 4
Trustees, Report for the Year ended 31 March 2022 StrateEiC objectivè People create culture that allows people to flourish and provide positive environment where people have the tools, support and skills they need. Activitles planned Work with the People Committee to implement our People Plan irtcjuding.. Artivitles perfornied Wellbeing Initiatives Renewed Mindful Employer Charter and trained the first cohort of employee5 acr055 all localities to be Mental Health First Aiders. Excellence in supportin8 internal stakeholders with wellbeing initiatives Mental Health Support pèck for employees was created and rolled out Establish an Agile Working Policy, in consultation wiEh staff New wellbeing section on the benefit5 Portal Was launched providing a wide range of advice. support and signposting. Continue to expand benefit5. and publish staff Agile Working Policy Following staff consultation, the policy was shaped and rolled out to meet the needs of Avalon at the time. Improve recruitment pToce5S to Ènsure Operational Staff can aehieve growth levels Staff Beneffts A new benefits Portal has been launched which gives easy access to all Avalon benefits including a new benefit partnership with 02 and the 81ue Light card. Impro¥e RKruitment Process Dedicated HR resource has been put in place to lead on some recruitment activities to aid consistency, speed of response and to free up operational time The application and refer a friend schemes on the Avalon web51te have been streamlined considerably. to speed up and simplify the application process Doeusign was implemented to automate part of the iecruitment on-boarding proce55. As a result. information gets out to and returned to the applicant quicker lon average 3 days) and increases the quality of the information. Page 5
Trustees, Report for the Year ended 31 March 2022 Strate8ic objective Sociol care- contribute to the shaping of social care. ensuring our offer reflects the evdving needs of the social care sector. Activities planned Informed by irntelligence in each area. establish a locality Serwce Offer detailing what can be delivered in e3ch location. this will include mental health and dementia where possible. ArtNities perfornied We continued to work in partnership with Golden Lane Housin8 Association to transfer direct customer tenancies for supported living propertie5 to as well as to identify new development opportunities to Improve customers. housing provision. Complete and implement changes in our approach to Shared Lives. including recruitment of shared lives carers. re5Plte payments Teview processes. Shared Lives we received £l.000 grant from Shared VeS Plus to fund development of new trainrng, and £2,500 from Middlesbrough Council to test new innovations in recruitment of Shared Lives carers via online paid avenues. Hull Clty Councll invited us to apply to their DPS Supported Living framework, which we were successfully appointed to. This allows us the opportunity to consider expansion to this new neighbouring localitvj and we have since e5tabli5hed working relationships with housing providers to attempt to fi.nd suitable supported living solutions. ProÉièss Housing Strategv transferring lease responsibility to Housing Providers and developing additional 5UPPOrted living in localitie5 where need5 have been identified. Explore opportunities establish services neiehbouring areas as well as expanding in Current localities. to The Directors continue their active membership of key working groups such as VODG, ARC and the ICG with the aim of influencin8 and helping shape future models of care. Strenhen OLtrr mental health offer and relationships with mental health commissionefs Continuous improvement- continueto modernTrse working practice that meets the needs of collea8ues and customers. Di8ltal Transformation Conduct review5 of business processes of the charity movin8 to implement digltal solutions where possible. ICT modernisation activities in the year included.. Migration of the on-premise server to a cloud- based solution and the roll-out of Microsoft Teams to all Avalon staff. Continued development of the rota 5VStem "Carefree" to facilitate increased digital 501utKJns such as communicating shifts and reduced reliance on paper. core Work with new I Provider to improve connertivity. reduce reliance on current physical server and introduce Miciosoft Office 365. New lotality officts were identified and moved into at Northallerton and Scarborough providing more acce55ible office space with irnproved connectivity. Review Health & Safety F)olicies and management arrangements. Health & Safety training was provided by Hettle Andrew5 to the serbior mana8ement team in ddition to exi5tin8 in-house training. alongside a review of Health & Safety policyframework. Avalon continues to hold its CHAS accreditation. P3ge 6
Trustees. Report for the Year ended 31 March 2022 Strategit objertive Su5toinobility- ontinue t() develop and invest in new initiatives which are appropriate to our core business and values. Artiviknes planned Clear plan5 todeal with anyri5k5 associated wtth loss of income due to1055 of contratts. Activitiès performèd In September 2021 we beBan work on the new Avalon 3 year strategy (incorporating Business Development). The rnew Plan was signed off i March 2022 to begin delivery in 2022123 year. During the year 2021122 we followed the existin8 Stratle plan for Business Development, which included the following activities= Generate £200k in additional funding from grant funds and other form of fundfaising. Maintain existing kèy tontratts Over the past 12 month5 this h35 continued to have 8 large focus on retention of the retender of the NYCC Shared Lives contract, working with the council to continue to innovate and improve service elements such as recruitment, matching, referrals process and new respite options. We also retained the two key contracts that came for retender in the year: York PPA and Wakefield My Life. Seek new work in identified areas for development- Wilh a focus on the increase in Supported Living delivery.. establishin8 relationships with developers. RSLS 3nd Hovsing Associations to identify potential properties. We have opened I Supported Living property in Doncaster, and have another in development for launch 2022123. Seek relevant gr3nt fundlng In particular looking for fundinR which is unrestricted. and can support the whole or8anisation. During the vear we received £134.750 in grants lincluding the ongoing £96.000 Google advertising grant which come5 in the form of free PPC advertisin8 throu8hout the yearl. Develop partner projerts To enhance our organizational offering and support the submission of luture tenders and grant application5 we work successfully partnership with reputable providers le.g. Shared Lives Plus, Good Thin85 Foundation. AbilityNet, Dementia Forward) Support organisational de¥elopment- Assisting localities with their own growth plans through the quarterly locality business review process. and supporting internal process improvements such as recruitment. retention and assessment processes. Page 7
Trustees. Report for the Year ended 31 March 2022 Financial Review Avalon continues to operate in a finantially challenEing ervironment. as wage costs increase and pres5ure5 on fundine escalate acrossthe sector. Desplte this. we generated an unrestricte¢J surplus for the year of £77,81312021'. £187.89SI. Net movement in restricted funds in ihe year was a deficit of £57.33612021.. surplus of £43,388). Income from charitable activities was £11.3m12021.. £11.3ml for the year ended 31 March 2022. Income from supported living and community support increased marginally to £6.8m from £6.6m irb 2021, whilst Shared Lives income fell to £4.4m from £4.6m at 31 March 2021. Free reserves at 31 March 2022 are £1.065.279 tompèred to £1,025,873 at 31 March 2021. In addition to our surplus. ourcash position femains strong at £1.962.26612021.. £2.106.0091 reflecting 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 prinapal objertives for mana8in8 risks are to- aid achievement of it5 Strategic objeciivès ensure business continuity and service to its Customers protert the organisation's wider reputation and other assets sustain its commercial viability be compliant with statutory and regulatory obli8ations We have identified the principal Hieh Risks at 31 March 2022 as- Risk staff recruitment remains a challenge lon occasions. we are forced to turn down new work due to insufficient staffl. The risk is compounded by staff availability during Covid-19 and puts significant pressure on delivery teams. Mitigants Creative and tsilored recruitment solutions such as Facebook advert5. Regular review of staff pay linked to new National Living Wage requirements. Use of agency staff where available. Welcome bonus and refer a friend schemes launched and readvertised. Contrart income risk Large contracts and frameworks continue to be commissioned on rollin8 basis, typically on a 3-5 year basis. Avalon retains a strong reputation with all commissioners thiough ongoing quality of performance and good Telationships 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 sustsinable as a charity. Increased work pressure of pandemic leads to redurtion in quality and cornpliance rnanifesting in poor seiCe delivery andlor inadeqyate CQC ratin8. Quality compliance monitoring remains a priority for Operational teams supplemented by Internal Audit reviews on a 6 monthly basis. Regular client satisfaction stjrveys and Compliments & Complaints monTtoriTr8 identify issues early to ensure resource is allocated as necessary. Avalon is prepared to return work to commissioners as a last resort where it 15 felt a safe service can no longer be provided. Page 8
Trustees, Report for the Year ended 31 March 2022 Financlal Revlew- continued Risk Significant reputational damaBe e.8. resulting from a safeguarding arising from nsuitability of staff & carers and high turnover of support workers or an external event imparting Avalon's brand/ima8e. Mitigants Operations ReportinB Group carefully examines all incidents for lessons learned. themes and improvement observations. Safeguarding policy and training enhanced to include making safeguardin8 personal and relevant to customer groups. Summary of safeguarding events reported at Board level. All tender submissions managed centrally by the Business Development manager with full involvement of Directors of Operations. People and Finance and the CEO. Price submissions include full cost recovery incorporating full risk assessment of service by Operations Directors. Tender risk Current tender activity is short notice, failin8 services v4here existing providers are unable to continue. This increases the risk of safelv delivering the service and around TUPE and staffing. IT Infrastructure is not rrt for purpose for example. due to ageing hardware. cyber threat and outdated working practices. A cloud migration project is virtually complete mitigating the risk of the sustainability of the on-premise server. Avalon 15 working with the Icr outsource provider lo stabilise the new operating infrastructure +such that the risk of busine55 interrupti¢n is redyced. Our Risk Registercontsins detailed explanation5 for each risk, a scorefor both impart and likelihood and the existing mitigants. which reduce our exposure to the overall risk. Prlncipal 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. Fundralslng The Avalon Group tloes not engage in large scale levels of public fundraising and does not use professional fundraisers or commercial participators. The tharity nevertheles5 observes and complies with the relevant fundraising regulations and codes. During the year there was no non<ompliance of these regulations and codes and the charity received no cornplaints relating to its fundraisin8 practice. Page 9
Trustees. Report for the Year ended 31 March 2022 Financial Revièw- contlnued Reserves Policy Free reserves at 31 March 2022 are £1.065.27912021.. £1.025.8731. These are the net funds of £1,927,039 available after deducting fixed assets Iwhich have no associated bank loans) of £S59.015. Restricted Funds of £15.53012021= £72,866) and Designated Funds of £261,945. The trustees have reviewed the level of reserves required to take account of known liabilities and possible contingencie5. The Risk Register is reviewed on a regular basis and informs the Reserves Policy to ensure that we consider funds that enable us to de31 with situations in a sustainable way. for example the loss of a major contract. a short term cash flow pioblem due to late payment for a significant contract or the long term 5ickne55 of a kev member of staff. The reouired reserves estimate at 31 March 2022 remains at £I,1)09.2]. following a revtew this year to ensure that potential additional risks to our operation5 arTrsing from the pandemic are incorporated into this value. This means that our free reserves at 31 March 2022 exceed our target reserves by £S6,079. Given the current economic climate and the continued uncertain environment .presented by Covid-19. the trustees consider this to be a prudent position. At 31 March 2016 we tteated the Oesignated Fund of £2(1.[. Thiswas toenable vsto stren8thentheorganisation through both an ICF modemisation progr3mme and expansion via business opportunities thèt fit with our prioritie% and core values. In the year ended 31 March 2021-designated funds were increased by a further £lTh),000 for the purpose of funding future projetts which develop Avalon's orgènisational infrastructure. In the year ended 31 March 2022 no further resource was allocated to Designated Funds. Our Reserves policy, which has been reviewed this year, also states that reserve5 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 exposu. Plans for future eriods Changes in the sector continually require us to revisit strategic priorities and ways of working. As the three year Strategy drew to a dose in March 2022. planning the newThree Year Plan for the period 2022123 to 2025126 began during the year. This work involved a full rewew of our strategic direction. starting with our Vision. Mission and Values. ènd encompassing all elements of the business model to agree collectively and in collabofation with all internal stakeholders where the charity's future priorities lie. From April 2022 we are working to the following statements.. Vision.. The people we support will achieve their best life experience Mission.. We provide inclusive. personalised support in our local comrnunities. helping individuals and families to improve iheir lives every day Values: We are kind and respectfvl io everyone We are honest ènd trustworthy We are always learning and developing We are irnclusive,. everyone has a voice We work in partnership with our communities Page 10
Trustees. Report for the Year ended 31 March 2022 Plans for future eriods. continued Our plan is split into five pathways. which allow us to achieve our vision. The tsble below sets out the key plans assocsated with each pathway Pathway The right people Referring to staff. carers, trustees and ou¥ partner5. having the right people in plate who understand and support our vision will support its achievement Activities planned Review c3reer progression of all roles. with initial focus on Support Co-ordinators and Support Workers Development of M3nagernent training offer and tailored training for Shared Lives carers Establish new employee forurn and EDI working group Continual review of staff reward pa£ka8e to remain competitive Investment strategv Retention of key contracts Ongoing finantial and business reviews of each locality A sustoinoble future Ensuring the financial sustainability of our chaiity through investing in the future. making the best of our reserves and creating a diverse portfolio of contracted work Meeting local need - responding to the needs of local authorilies. developing additional commUntY services and tskinga Benerous community approath Develop Avalon's community presence. including new local Community Champions and generous sharing of resources and facilities with local partners Developing existing services to meet local need Developing Shared Live5, including new pilot respite project in North Yorkshire and broadening customer 8roups Digitalisation of care records Launch and rollout of all employee intranet Maximise use of Carefree rota/reportin8 software DiBstalised onboardinglnew starter proce5S Technology Champions locally to support pro-active use of assistive technology and digitsl first solutions for our customers Embracing tethnology completing an organisation wide digital transformation which will See us become a paperless organisation with efficient and effectNe busine55 Systems, and enhanced Use of technologv enabled carelassistive technology Growing ¢rnd developing - cownmitting to the development of more good quality housing. offering a wide range of support services including dementia and mental health and makirng Avalon the first choice for families across our localities Growing our Shared Lives service through recruitment of new carer5. promotion of the referrals protes5 fof local teams, and seeking to grow into new geographical areas where commissioning allows Transitions project to support young people reaching adulthood to be able to confidently access support services that will best benefit theffl (whether Supported Living, Community Support or Shared Livesl - working in partnership with council tran51tions teams Growth of supported living through pro-artive search and development of suitable properties across our localities Creating an external training offer Developing a bespoke dementia servite based on research of evidenced local nèed Page 11
Trustees. Report for the Year ended 31 March 2022 Structure Governance and Mana ement Legal The Avalon Group is a charitable company limited by guarantee. The company was incorporated on 7 October 1994 with the name Adult Placement Services Ltd, trading under the name The Avalon Group. On 12 Novernber 2020 a special resolution was passed to change the legal entity name Avalon Group Isocial Carel. The company was registered as a charity on 26 July 1995. In the event ofthe Company being wound up, each member is iequired to contribute an amount not exceeding £1. The company was established under a Memorandum of Association dated September 2002 which established the objects and powers of the charitable company and is governed under its Articles of Associaiion. On 12 November 2020 updated Artrcles of Association were adopted by Special Res0110n. Rèsponslbility of the Board and Committees The Trustees (who are also Direttors of Avalon for the purposes of company lawl are responsible for preparing the Trustee5' 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 finantial 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.. Select suitable 3ccovnting policies and then apply them consistentlv.. Observe the methods and principles in the Charities SORP- Make judgements and estimates that are reasonable and Pdent.. State whether applicable UK kcounting Standards have been followed, subject to any mateiial departures disclosed and explained in the financial statement5.' and Prepare the financial statements on the going concern basis unless rt is inappropriate to presume that the charitable company will continue on that basi5. 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 thèt the financial statements compfy with the Companies Act 2)6. 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 mainlenance and integrily of the charity and financial information included on the charity's website. Legislation in the United Kingdom 8overnin8 the preparation and dissemination of financial statements may differ from legislation in other Jurisdictions. Kèy Managemeni Pay and Remuneraiion Pay for senior managers is determined by reference to market salary fates, takinE into account individual's experience and Skills. Pay scales are set for all post5 within Avalon. including those of senior managers. The Remuneration Committee aglees the pay for all Directors antl also any major changes to pay scales for other staff. Page 12
Trustees. Report for the Year ended 31 March 2022 Structure Governance and Mana emènt- continued Employment of the Disabled Avalon holds and works to the Disability Confident Committed employer standards. These include ensuring our reciuitment process is inclusive and accessible by advertising using diverse methods, and atcepting applications in dlfferent formats. Avalon prtsmotes being committed to offering an interview to anyone who meets the rninimum standards of the role specification to someone who declares they have a disability. Avalon ensure that reasonable adjustments are considered and put in place where practical and necessary for interview5, such as using video technology or allowing additional time for practical tasks. Avalon have also created a more blended training offerto make training more accessible for people with disabilities, by utilising technology through eLearning and online webinars. Tfainin8 has also been tailored to meet the needs of particular individuals or groups, such as providing face to face trainin8 in a specific location or providing one to one training to allow more dedicated tirne to focu5 on a particular area. Line managers will work closely with the L&0 team to ensure that the particular trairing needs for disabled individuals are understood and met. which are identified through l..1 supervision5. Avalon provides a suite of training to staff. including a number of Mental Health sessions. Equality & Diversity and Recruitment, which all focus on providing support to disabled colleagues. In addition to this, Avalon has trained ove¥ l(l% of the workforce in Mental Health First Aid to provide additional support to employees. has signed the Mindful Employei charter. acquired the Mental Health Committed Employer standard. A parrnership with Able Futures has commenced to provide confidential mentsl health support to our employees and Avalon has worked closely with occupational health and Access to Work to ensure that disabled colleagues are provided with the resources they need to do their job. Statement of Trustees In accordarnce with company law. we. the company's Directors. Certify that as far as we are aware. there 15 no relevant audit information of which the companvs avditor is unaware_ In addition. the Directors have taken all the necessary steps that they ought to have taken as Dirertors, in order to make themselves aware of all relevant audit information and io establish that the company's audttor is aware of that infomiation. After making appropriate enquiries. the Trustees have a reasonable expertation 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 statement5. Further detai15 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.. Aydit and Risk Committee- prwdes oversight. rewew and advisory role to the Board on 311 financial affairs of Avalon. Business Development tsnd Fundroisin9 Committee- provides oveisight. review and an advisory iole to the Board on the Business Development strategy and its implementation. Remuneration Committee provide5 oversight. review and an advisory role to the Board on the remuneration of the CEO and staff within Avalon. People Committee- provides oversight. rewew and an advisory role to the Board on the People Strategy and its progress. Page 13
Trustees. Report for the Year ended 31 March 2022 Structure Governance and Mana ement- cortinued Recruitment and Appointment to the Board Under the requirements of the Memorandum and Articles of Assoclation. the Trustees are elected to serve for 3 years and retire by r(>t3tion. ReiirinB Tiustee5. if willing to continue to serve. may be re-elected by members, resolution. In 2022 we welcomed 3 new Trustees whose expertente and expertise, along with their passion for adult social care, added additional strength to Oilf 8oard. Trustee Trainin8 and Induction The Board of Trustees regularly reviews the skills and expertise of the 8roup. This is led by the Chair in consultation with the Chief ExecutNe Officer. The recruitment pr¢xess for Trustees aims to fill the identified voids and the key skills netessary to support the organi53tion's strategK 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 Snvolvement with Avalon is in a purely voluntary capacity- The T¥ustees provide a range of skills, iluding bvt not limited to., legal matters. new and existing business growth strategies. 8¢d governance and risk 5trategie5. No Trustee has received any remuneration in the current or previou5 year for these activitie5. Durin8 the year to 31 March 2022 we paid Trustees expenses of £15012021= £nill. which was to cover travel and mileage charges. Auditor The auditor. BHP, Chartered Accountants, have indicated their willingness to continue ir office. The Designated Tru5tee5 will propose a motion re-appointing the auditors at a meeting of the Trustees on 4 October 2022. This report including the strategic report was approved by the Trustees on 4 Ortober 2022 and signed on their behalf by.. Stephen Fox Chair of the Board of Trustees Page 14
AVALON GROUP (SOCIAL CAREI IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORTTOTHE MEMBERS OF AVALON GROUP ISOCIALCAREI Opinion We have audited the financial statements of Avalon Group (Social Carel (the 'charitable company'l for the year ended 31 M3rch 2022 which comprise the Statement of Financial Activities. the Balance Sheet, the Statement of Cash Flows and the related note5. 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 Yhe Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Prarticel. In our opinion the financial statements= give a true and fair view of the state of the charitable company's affairs a5 at 31 March 2022 and of its incoming resources and application of resources. inclvding its income and expernditure for the year then ended.. have been properly prepared in accordan with United Kingdom Generally Accepted Accounting Practice.. and have been prepared in accordance with the requirements of the Companies Act 2¢J)6. Basis tor opinion We conducted our audit in accordance with Intemational Standards on Auditing IUKI IISAS IUKII and applicable1aw. Our responsibilit(es under those standards are further described in tkre Audrtor's responsibilities for the audit of the ftnancral statements seciion of our report. We are independent of the charitable company in accordance with the ethital requirements that are relevant to our audit of the financial statements in the United Kingdom. including the Financial Reportin8 Council's Ethical Standard. and we have fulfilled our othei ethical re5pon5ibilitie5 in accordance with these requirements. We believe that the audit evidence we have obtsined is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going ¢on¢ern In audiiing the financial statements. we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial statement5 is appropriate. Based on the work we have performed. we have not identified any material ijncertainties relating to events or condition5 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 avthorisèd for issue. Our responsibilities and the responsibilities of the Trustees with respert to going Concern are described in the relevant sections of this report. Page 15
AVALON GROUP {SOCIAL CARE) IA company limited by guaranteel INDEPENDENT AUDITOR'S REPORTTOTHE MEMBERS OF AVALON GROUP ISOCIALCAREI ICONTINUEDI other information The other information cornprises the information included Fn the Trustees. Report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other Information contained within the Trustees, Report. Our opinion on the finantial statements does not cover the other information and, except to the extent otherwise explicit stated in our report. we do not express any form of a55uran£e conclusion thereon. Our re5POll5ibility 15 to read the other information and. in doing so, consider whether the other informatrorn is materially inconsistent with the financial 5tatement5 01 our knowledge obtained in the course of the audit. or otherwise appears to be rnaterially mi5Stated. If we identify such material incon5islencies or apparent material mi5Statements, we are required to determine whether this gives rise to a mèterial misstatement in the financial statements themselves. If. based on the work we havè performed. we conclude that there 15 a material misslèternent of this other information. we are required to report that We have nothing to report in this reeard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of the audit.. the information given in the Trustees. Report lincorporating the strategic report and the dirertors, report) for thè financial year for which the financial statements are prepared is consistent with the financial statements. the strategic report and the directors. report have been prepared in aceordance with applicable legal requirements. Matters on which we aré required to report byexteption In the light of our knowledge and understanding of the charttable company and its environment obtained in the coulse of the audit. we have not identified material misstatements in the strategic report antl the direttors. report. We have nothin8 to report in respect of the following matters in latiOn to which Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting rordS have not been kept, or returns 3dequète for our audit have not been received froffl branches not visited by us- or the financial statements are not in agreement with the accountin8 records and returns- or certatn disclosures of Directors, remuneration specified by law are not made.. or we have not reteived all the information and explanations we require for our audit. Page 16
AVALON GROUP {SOCIAL CARE} {A company limited by guarantee) INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF AVALON GROUP ISOCIALCAREI {CONTINUEDI Responsibilities of trustèès A5 explained more fully in the Tnjstees. responsibilities statement. the Trustees (who are a159 the direcior5 uf the charitable company for the purpose5 of company lawl 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 preparin8 the financial statements, the Trustees are rest)onsible for zs5essing 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 accountin8 unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistlc 31ternative but to do 50. Auditor's responsibilitiès for the audit of the financial statements Our objettives are to obtain reasonable assurance about whether the financial statement5 a5 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 euarantee that an audit condurted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fr3ud or error and are considered matefial if, indiwdually or in ihe 38greg3te. they could reasonably be expetted to influence the economie 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 responsibiltties. outlined above, to detect rnaterial rnis5tstements in respect of irregularities, including fraud. The extent to which our proceduies are capable of detecting irregularities. including fraud is detailed below= the engagement partner ensured that the engagement team collettively hèd the appropriate competen, capabilities and skills to identify or recognise non-compliance with 3pplicable laws and regulations.. we identified the laws and regulations applicable to the charitable company through discussions with management and directors. and from our knowledge and experience of this settor- we focused on specific laws and regulations which we considered may have a dirert matefial effect on the financial statements or the operations of the charitable company. including the CompanTes Act 2006, Charities Act 2011. CQC regulations. safe8uafdin8. health and safety. data protection and employment law.. we assessed the exrent of compliance with the laws ènd regulations identified above through making enquiries of management and directors.. identified laws and regulation5 were communicated within the audtt team regularly and the team remained alert to instances of non-compliante throughout the audit. We assessed the susteptibility of the charity's fjnanoal statements to material misstatement, including obtainlng an understanding of how fraud might occur, by,. making enquiries of management and directors as to where they considered there was susceptibility to fraud. their knowledge of actual. suspted and alleged fraud.. and considering the internal controls in place to mstigate risks of fraud and non<ompliance with laws and re8ulations. Page 17
AVALON GROUP ISOCIAI CARE) IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF AVALON GROUP (SOCIAL CARE) ICONTINUEDI To address the risks of fraud through mana8ement override contro15, we- performed analytical procedures to identify any unusual or unexpected variances: tested journal entries to identify unusual trènsattions. investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to- agreeing financial statement disclosure5 to underlying 511PPOrting d¢xumentation,' reading the minutes of meetings of those charged with governance.. enquiring of management as to 3rtual and potentral litigation and claims. Because of the inherent limitations of an audit. there is a risk that we will not detert all irregularities. including those leadsng to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the rnore that compliance with a law or regulation 15 rernoved from the events and transa£tion5 reflectèd in the financial statements, as we will be less likely to becorne aware of instances of non-cornpliance. The risk 15 also greater re8ardin8 irregulafities occurring due to fraud rather than error. as fraud involves intentional conteèlment. forgery, collusion. Omission or misrepresentation. A further description of our responsibilit5es for the audit of the financi31 statements is located on the Financial Reporting Council's website at.. https.'//www.frc.org.uklauditors/audit-assurance/audttor-s-responsibilities-for-the-audit-of-the- fildescription-of-the-8uditor%E2%80%99s-responsibilities-for. This description forrns part of our Auditor's report. Use of our report Thi5 report is made solely to the charitable company's members. as 3 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 mètters we ale required to stale to them in an Auditor's report and for no other purpose. fo the fullest extent permitted by law, we do not attepi or assume responsibility to anyone other than the charitable company znd it5 members, as a body. for our audit work. for this feport. or for the opinions we have formed.
1221*l•W411 Jane Marshall (Senior statutory audltorl for and on behalf of BHP LLP Chartered Accountants Statutory Auditor Riev3ulx House I St Mary's Couit York Y024 IAH Oate.. Oct 5. 2022 Page 18
AVALON GROUP ISOCIAL CARE) IA company limited by Euarantee} STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2022 Unrestricted fvnds 2022 Rtstricttd funds 2022 Total funds 2022 Total lunds 2021 Note Income from: Donations and le8acie5 Charitable attivities 22.032 11250.543 271,367 293,399 11.250.543 891 262,829 11.263.338 474 Investments Other incorne 74.429 Total income 11.273.466 271.367 11.W.833 11,601.070 Expenditurè on: Charitable activities 11.195.653 328.703 11.524.356 11.369.787 Total expenditure 11.195.653 3Z8.703 11,524.356 11.369.787 Net movement in funds 77.813 157,3361 20.477 231,283 Reconclliatlon of funds- Total funds brought forward Net movement in funds IA33.696 77.813 72.866 {57.3361 1.906.562 20.477 1.675.279 231,283 Total funds tarried forward 1.911,509 15.530 1.927.039 1,906,562 The Statement of Financial Activities includes all gains and losses recognised in the year. The rte$ on pages 22 to 41 fom) pèrt of these financial ststements. Page 19
AVALON GROUP ISOCIAL CARE) IA company limited by guarantee) REGISTERED NUMBER.. 02976727 BALANCE SHEET ASAT31 MARCH2022 2022 2021 Note Fixed assets Intangible a55et5 Tangible assets 12 143 13 584.285 558.872 $84.285 559,015 Current assets Debtors 14 1.656.191 1.%2.266 1,395,345 2,106,(XJ9 Cash at bank and in hand 3.618.457 3,501.354 Creditors.. amounts falling due within one year 15 12,275.7031 12,153.8071. Net current assets 1.142.754 1.347,547 Total net assets 1.927,039 1,906.562 Chzrityfunds Restricted funds 16 15.530 72.866 1,833,696 Unrestricted funds 16 1.911,509 Total funds 1.927.039 1.906.562 The Trustees acknowledge their responsibilities for complying with the requirements of the Act w((h respect to accounting record5 and preparation of financi31 statements. The linanci31 stalement5 were approved and authorised for issue by the Trustees and signed on their behalf by.. Stephen Fox Date= 4 October 2022 The notes on pages 22 to 41 form part of these financial statements. Page 20
AVAL014 GROUP (SOCIAL CARE) IA company limlted by guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022 2022 2021 Note Cash flow5 from operating activities Net cash (used inl/prowded by operating activities 19 175,2371 1.157,016 Cash flows from Investing activities Bank interest 891 474 Purthase of tangible fixed assets 144.3821 13451 Net tash lused inllprovided by in¥estiDg artiiiities 143.4911 129 Cash flows from financinB actlvitles Repaymenis of borrowng 125.0151 125.0281 Net tash used In financlng artivrties 125.0151 {25,0281 Changè in cash and tash equivalents in the ar 1143.7431 1.132.117 Cash and cash equivalents at the beeinning of the year 2.106.009 973,892 Cash and cash equivalents at the end of the year 20 1.962.266 2,IOG,(x)9 Thè notes on pagès 22 to 41 fomi part of these financial statements Page 21
AVALON GROUP (SOCIAL CARE) IA company limited by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 General Inforn)ation The Avalon Group is a company lirnited by guarantee. The members of the company are the Trustees named on page l. In the event of the charity being wound up. the liability in respect of the gu3Tantee is limiied to £1 per member of the charity. Accounting policses Zl Basis ojprepomtion olfinonciolstatements The financial statements have been prepared in accordan with the Charities SORP IFRS 1021- Accountin8 and Reporting by ChaTities.. Statement of Recommended Practice applicable to charities pieparin8 their accounts in accordancè with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 li5sued in October 20191. the Financi31 Reporting Standard applicablè in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Avalon Group Isocial Carel meets the definition of a public benefit entity under FRS 102. A55ets and liabilities are initially recognised at historical cost or transaction value unless othenlSe stated in ihe relevant accounling polity. The financial statements are presented in sierling which is the funttional currency of the charity and rounded to the nearest £. 2.2 6olng concern The Trustees have considered their forecasts of income and expenditure for the period to 31 March 2024 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 22
AVALON GROUP (SOCIAL CARE) IA company limited by euarantee) NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDEO 31 MARCH 2022 Accounting policies l£ontinued) 2.3 IrKome 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 reliablv. For legacies, entitlement is taken as the earlier of the date on whKh either.. the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executo¥lsl to the Trust that a distribution will be made, or when a distribution is received Irom the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charitv 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 ErantinB of probate. and the criteria for income recognition have not been met, then the legacy is ireated as a contingent asset and disclosed if material. Donated seiceS or facilities are recognised when the thafity hès control t)ver the item, any conditions a550ciated with the donated item have been met. the receipt of economic benefit from the use of the charitv of the item is probable and that economic be41efit tan be measured reliably. On receipt. donated professional Sel£eS and donated facilities are recognised on the basis of the value of the gift to the charity which 15 the amount the charity would have been willing to pay to obtatn seNices or facilitie5 of equtvalent 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 IFurlou8hl have been recogni5ed within other operating income. The grant is accounted for on the accruals bas¥s once the related payroll return has been submitted. Income tax recoverable in relation to donètitsns received under Gift Aid or deeds of covenant is recognised at the time of the donation. Income tax recoverable in relats.on to investment income is recognised at the time the investment income is receivable. Other income is recognised in the period in which tt 15 receivable and to the extent the goods have been provided or on completion of the service. 2.4 Eypendityre Expenditure is recognised once there is a legal or con5trurtive obligation to trarnsfer economic benefit to a third party. it is probable that a transfer of ecor)omic benefits will be required in settlemeni and the amount of the obligation can be measured reliably. Expendituie is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs. including stjpport cosis involved in undertaking each activity. Dirert costs attributable to a single artivity are allocated directly to that activity. Shared costs whith contribute to more than one actiwty and support costs which are Trot attributable to a single activity are apportioned between those actiwties on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciat¢on charges allocated on the portion of the asset's use. Governance costs 3re those incurred in connertion with administration of the charity and compliance wlth constitutional and statutory requirements. Page 23
AVALON GROUP (SOCIAL CARE} IA company limited by guarantee) NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Atcountin8 policies Icontinuedl 2.4 Expenditure fcontinued) Expenditure on charitable activities is incurred on directty undertaking the acrNSties which further the charity's objectives. as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.5 Government gronts 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 concerrbed. Other grants are credited to the Statewnent of financial artivities a5 the related expenditure is incurred. 2.6 Interest reteivoble Interest on funds held on depwt 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 Intongible assets ondomortisotion Intangible a55ets are capitslised and recognised when future economic benefit5 are probable and the c05t or V31ue of the asset can be measured reliably. Intangible assets are initially retognised at cost. After recognition. under the Cost model. intangible assets are measured at cost less any accumulated amortlsalion and any accumulated impairment losses. Amortisation is prowded on iniangible assets at rates calculated to write off the cost of each asset on a straight-line basis over tts expected useful life. Amortisation is provided on the followin8 basis-. Software licenses 33 % on cost 3.8 Tongiblelixedossets depreciotion Tangible ffixed assets are capitèlised when the cost is £5(1 or more and recognised when future economic benefits are probable and the cost or value ol the asset can be measured reliablv. 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 assei into its intended working condition should be included tn the measurement of cost. Pa8e 24
AVALON GROUP (SOCIAL CARE) IA company limited by 8uarantéè} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accountin8 polities Itontinutdl 2.8 Tongiblefixed ossets anddepreciotion Icontlnuedj Depreciation is tharged $0 a5 to allocate the cost of tangible fixed assets less their residual valve over their estimated useful lives. Depreciation is provided on the following bases= Freehold propertv Short-temi leasehold improvements Motor vehicles Fixtures and fittings Office equtpment 2% straight line over lease terni 20% straight Irne 20% reducing balance .25% straight line 2.9 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Piepayments are valued at the amount prepaid net of any trade discounts dye. 2.10 Cash ot bank ¢7ndin 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 openin8 of the deposit or similar account. 2.11 Llobllitles andprovtslons liabilities are recognised when ihere is an obligation at the Balance sheet date a5 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 reliablv. abilities are recognised at the amount that the chartty anticipate5 It will pay to settle the debt or the amount it has received as advanced payments for the giKMls or seNces it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effett of the time value of money is material. the prO510n is based on the present val¢Je of those amounts. discounted at the ple-tax discount rate that reflect5 the risks specific to the liability. The unwinding of the discount is recognlsed in the Statement of financial activities as a finance tost. Z12 Flnanclalinstruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instiuments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loan5 which are subsequently measured at amortised cost using the effective interest rnethod. Page 25
AVALON GROUP (SOCIAL CARE) IA company limited by Èuaranteel NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 A¢counting policies l¢ontinuedl 2.13 Operoting leases Rentals paid under operatin8 leases a 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 z straight line basis over the lease term. unless another systematic basis is repsentatIVe 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 ch3r8e represents the amounts payable by the charity to the fund in respect of the year. 2.15 Employee benefits The cost of short-term employee benefits are recognised as a liability and an expense. The tost of any unused holiday entitlement is recognised in the period in which the employee's services are received. 2.16 Fundaccountiry General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the tharity 3nd which have not been designated for other purposes. Designated fvnds comprise unrestrirted fund5 that have been set aside by the Trustees for particular purposes. The airn and use of each designated fund is set out in the notes to the financial stzternents. Restricted funds are funds which ale to be used in accordance with specific restrirtions imposed by donors or which have been iaised by the charity for particular purposes. The costs of raising and administering suth fund5 are charged against the specrfic fvnd. The aim arbd use of each restricted fund is set out in the notes to the financi31 statements. Investment income, gains and losses are allocated to the appropriate fund. Page 26
AVALON GROUP {SOCIAL CARE) IA company limited by guarantee} NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR EJVDED 31 MARCH 2022 Crltical accounting estimates and areas ot judgment Estimates and judgments are continually evaluated and are based on historical experience and other fartor5, inclu(Jing expectations of future events that are believed to be reasonable undei the circumstances. Critical accounting estimates and assumptions= The charity makes estimates and assumptions concerning the future. The resultin8 accountiTrg estimates and assumptions will. by definition. seldom equal the related actual results. The estimates and assumptions that have a si£nificant 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 liabilityfor potential employee pay liabilities. the outcome of which is not known with certainty and 15 dependent on future events. Intorne from donations and legacies Unrestrirted funds 2022 Restrlcted funds 2022 Total fvnds 2022 Total funds 2021 Donations 22.032 ZZ.032 10.959 City of York Shared Lives Government grants 30.046 271.a67 271.367 221,824 22.032 271,367 293,399 262,829 Total 2021 261,982 262.829 Page 27
AVAION GROUP (SOCIAL CARE} IA company limited by guarantet) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Income from charitable artivities Unre5trirted funds 2022 Total fund5 2022 Total funds 2021 Supported Living Shared Lives 6.793.497 4.434.239 22A17 6,793,497 4.434,239 22.807 6,617.345 4.635.100 10.893 Other income 11,250.543 11,250.543 11,263,338 Total 2021 11.263.338 11,263,338 Investrnent income Llnrestrirted funds 2022 Total funds 2022 Total funds 2021 Bank interest 891 891 474 Total 2021 474 474 oiher Incoming resources Unrestrirted funtls 2022 Total funds 2022 Total funds 2021 Coronavirus job retention scheme grant 74,429 Total 2021 74.429 74,429 Page 28
AVAION GROUP (SOCIAL CARE) IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Charitable activities Supported livÈng Shared lives 2022 2022 Tolal funds 2022 Total funds 2021 Governance 2022 Staff & Providèrs 5.714.842 108.474 84.294 71.391 6.516 4.304.577 10.019,419 108,474 150.909 230.204 11.666 9.893,753 141.543 124.270 167.313 12,928 38,765 978,615 12,600 Housing Premises 66.615 158A13 5.150 13.450 Office & Consumables Ctsmpliance Othei Costs 18,377 535,150 31.827 Group Allocated Audit (Governance C05ts1 422.917 9S8.067 13.790 13.790 6.539.044 4.971.522 13,790 11.S24,35S 11,369.787 Totsl 2021 6.281.291 5.07S.896 12.6 11.369.787 Auditor's remuner*ion 2022 2021 Fees payable to the charity's auditor for the audit of the charitvs annual accounts 13,790" 12.600 Page 29
AVALON GROUP ISOCIAL CARE) IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3J MARCH 2022 io. Staff costs 2022 2021 Wages and salaries Social security costs Other pension costs 6,089.898 480.233 5.888.388 451,934 131,052 147.806 6,717.937 6.471.374 The average number of persons employed by the charity durin8 the year was as follows: 2022 2021 No. Support workers Charitable activitie5 246 270 45 46 Management & administation of the charity 31 30 322 346 The average headcount expSsed as full-time equiwdlents was-. 2022 No. 2021 Support workers Charitable attivities 157 183 47 47 Management & administration of the charity 29 35 233 265 The number of employees whose employee benefits lexcluding employer pension costs) exceeded £60.000 wès.. 2022 No. 2021 In the band £60.(L)1- £70,000 In the band E70.LK)1- £80,000 In the band £80.001- £90.0 The value of pension contributions to staff within the above bands is £8.41612021= £4,557). The total amount of employee benefits (including employer pension contributions and national insurance) received by key management personnel is £307.08812021.. £341.8561. Pa8e 30
AVALON GROUPISOCIAL CARE) IA company limtted by guarantee) NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 ii. Trustees. remuneration and Èxpenses During the year. no Trustees received any remuneration or other benefits12021- £NILI. Durlng the year ended 31 Marth 2022, expense5 totslling £150 were reimbursed or paid diredly t¢ 2 trustees in relation to travel expenses12021= £nil were reimlmjrsed or paid directly to no trustees). 12. Intanglble assets Software licen5es Cost At l April 2021 35.730 At 31 March 2022 35.730 Amortisotion At l April 2021 Charge for the year 35,587 143 At 31 March 2022 35,730 Net book value At 31 March 2022 At 31 March 2021 143 Page 31
AVALON GROUP {SOCIAL CAREI {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 13. Tangible fixed assets short.tenn Freehdd leasehold property imwo¥emeJ Motor ¥ehides Fixlure5 and fittiiw Office equipment Toial Cost or voluotion At l April 2021 Additions 639.569 I1,(5 51.719 8.459 162,043 15.276 864.336 44.382 20.647 At 31 March 2022 639.569 20.647 ii.oos 60.178 177.319 908.718 Depreciotion At l April 2021 Charge for the year 93.979 9.780 11.005 46.204 1.982 154.276 4.688 305,464 2.519 18.969 At 31 March 2022 103.759 2.S19 11.005 48,186 158.964 324,433 Net book wlue At 31 March 2022 S3510 18,128 11,992 18.355 584,285 At 31 March 2021 545.590 5,515 7.767 558.872 Page 32
AVALON GROUP (SOCIAL CARE) IA company Ilmited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR TIIE YEAR ENDED 31 MARCFI 2022 14. Debtors 2022 2021 Due within one year Trade debtors 1278,821 1.099.218 30.872 Other debtors 29,217 348.153 Prepayments and accrued income 265,255 1.656,191 1.395,345 15. CredStors- Amounts falling due wlthln one year 2022 2021 Bank loans 25,015 400.529 152.766 376.800 1.198,697 Trade creditors 427.089 147,964 Other taxation and social security Other creditors 473,520 1.227,130 Accruals and deferred incomÈ 2.275.703 2,153,807 2022 2021 Deferred income at l April 2021 Resources deferred during the year (new deferred income) Amounts released from previous periods 21,171 11,148 121.1711 12,019 16.209 17,0571 11,148 21.171 Deferred income relates to amounts received in advance of projects being undertaken or work completed. Page 33
AVALON GROUP (SOCIAL CARE) IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 16. Statement of funds Statement of funds- current year Bol*nee It I April 2021 Balance ot 31 March 2022 Inrome Expenditure Unrestrirtedfvnd5 Des19tted1UndS Funds to stren8then the long term future of Avalon 229.038 229.038 Funding for beneficial significant IT projertS 111,8781 32,907 273.823 111.8781 261.945 Generallunds General Funds- all funds 1.559.873 11,273,466 111,183.7751 1.649.564 Total Unrestrf¢tedJunds 1.833.696 11.273.466 111,195.6531 1.911.S09 Restrictedjunds Inclusion 250 250 Wakefield Rotary Club Ship Drop-ln Infection control grants WICS grants WRRF grants Middlesbrough covid grant National living wage grants Other restricted funds ith) 100 i.oii li.oiii 1118.7771 1104.6001 172,0741 114.4401 111.9821 15.8191 54.792 63.985 104,600 72,074 14.440 11.982 4.986 8,136 7,303 5,000 Skipton Fundraising Wakefield Rapid Testing Fund Avalark Fundraising 3.850 2.877 13.8501 2,877 72.866 271.367 1328.7031 15,530 Total ofAunds 1.906.562 11.544.833 111,524.3561 1,927,039 Page 34
AVALON GROUP (SOCIAL CAREI IA company limited by gvaranteel NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 16. Statement of funds {¢ontinuedl Statement of funds- prior year Balance at 31 March 2021 Balance at l April 2020 Transfer5 inlout Income Expenditure Unrestri(tedfvnds OesiqnotedJunds Funds to strenhen the long teim future of Avalon 129.038 100,000 229,038 Funding for beneficial signifKant IT projects 44,785 44,785 173.823 100.000 273.823 Genen71Aunds General fund5 1.471.978 11.339.088 111,151.1931 IILX).LK)01 1.559.873 Total Unre5tri¢tedlunds 1.645.801 11.339.088 111.151.1931 1.833.696 Page 35
AVALON GAOUP (SOCIAL CARE) IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 16. Statement of fund5 Itontinued) Balance at 31 March 2021 Balance at l April 2020 Transfers inlout Income Expenditvre Restrirtedjunds Shared Lives Plus grant West Yorkshire Fundraisin8 Inclusion 30,046 130,0461 3Crf) 300 250 250 Wakefièld Rotary Club Ship Drop-ln City of York Shared Lives Pavers 8Tant Harro8ate fundraising Scarborough fundraising Teeside fundraising Infection control grants Other restricted funds loo i.oii i.oii 23.414 123.4141 11.9661 1.966 1.074 389 1,463 658 658 637 637 217.472 2.348 1162.6801 14881 54.792 1.928 Skipton Fundraising Wakefield Rapid Testing Fund Avalark Fundraisin8 5.000 5,000 3,850 2,877 3.850 2.877 29,478 261.982 1218,5941 72.866 Total oJAuDds 1.675.279 11.601.070 111,369,787) 1,906,562 Description of fUlS Funding for beneficial significant IT projects- Investments to eventually sève 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 ernd of Mar£h 2022 at the latest. Funds to strengihen the long term future of Avalon - Investments in new services to increase the security and longevity of Avalon. It is anticipated that this fund wrll be used within the next 2 years, subjert to financial scruttny and Board approval. Inclusion donations received from The Yorkshire & Clydesdale Bank Foundation 1£S01 and Dickinson Dees Solicitor5 of York1£2501 intended to fund the activities of Bubble Erbterprises. Page 36
AVALON GROUP (SOCIAL CARE) IA company limited by guarznteel NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Wakefield Rotary Club- a 8rant for the set up costs of the social group opened for our customers in Wakefield. Ship Drop-ln - donated for social events for customers attentling demeniia services in Northallerton. Infertion tontrol grants- funding from various local authorities for the purpose of measures introduced to reduce infettion control risk across the services. iVICS grants- Workforece Integrated Carè service.. local authority grant funding to pay front line staff an additiortal payment. WRRF 8rants- Workforce Development. Recruitment and Retention fundin8 from local authorities. MiddlesborouRh COVIO grant- local authority funding to support the workforce during the pandernic. National Liwn8 Wa8e grants- local avthoirty funding to support the paymet)t of front line workers. Skiptonl Avalark Fundraign8 - donated monies and fundfaising held for the use of eath locality office and their U5tomers. Wakefield Rapid Tesling Fund - local authority grant fvndin8 for the purpose of additional timelcosts incurred on rapid flow testing stsff. Other Restrirted funds- includes Harrogatel Northallertonl ScarborouEh/Teesside/ West Yorkshire/ Northallerton and Head office locality fundraisin8 held for the use of each locality ofFice and their customers. Also includes Northallerton Covid-19 communities fund. Out and About fundraising and Middlesborough SHL Recruitment fundin8. Shared lives Plus zrart- funding to develop an accelerated process for recruiting carers Via an online recruitment and èsse55ment platform. City of York Shared Lives - service level agreement to deliver a projert 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. Transfers between funds- represent the desigation of unrestricted funds for specific future projerts. Page 37
AVALON GROUP (SOCIAL CARE) IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENT5 FOR THE YEAR ENDED 31 MARCH 2022 17. Summary offunds Summary of funds- current year Balance at I April 2021 Incorne Expendlture March 2022 Designated funds General funds 273023 1.559.873 72.866 111.8781 111.183.7751 1328.7031 261,945 1.649.564 15.530 11.273.466 271.367 Restricted fund5 1.906.562 11,544,833 111,524,356) 1,927,039 Summary of funds- prior year Balance at 31 March 2021 Balante at l April 2020 Transfers inlout Income Expenditure Designated funds General funds 173,823 1.471.978 29.478 100,0 Iioo,o(x)I 273,823 1,559,873 72,866 11,339.088 261,982 111.151.1931 1218,5941 Restricted funds 1.675.279 11.601.070 111.369.7871 1.906.562 18. Analysis of net assets between funds Analysis of net assets between funds- current year Unrestrirted funds 2022 Restricted funds 2022 Total funds 2022 Tangible fixed assets Current assets 584.285 3.602,927 12,275,703) 584,285 3.618.457 12,275,703) 15.530 Creditors due within one year Total 1.911.509 15.530 1,927.039 Page 38
AVALON GROUP IsoaAL CAAEI IA company limited by 8uaranteel NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Analysi5 of net assets between funds Icontinuedl An351S of net a55ets bÈts¥Èen funds- prior year Unrestricted funds 2021 Restricted funds 2021 Total funds 2021 Tangible fixed a55ets Intangible fixed assets Current assets 558,872 143 558,872 143 3,428.488 12.153.807) 72,866 3.501.354 12.153.807) Crèditors due within one year Totol 1,833,696 72,866 1,906,562 19. Reconciliation of net movemènt in fvnds to net $h flow from opernting artlvitles 2022 2021 Net income for the year las per Statement of Financial Activities) 20,477 231,283 Adjustmentsfor.. Depreciation char8e5 Amortisation charges Bank interest 18,969 143 19,203 4,736 14741 174,671 727.597 18911 1260,8461 146.911 Ilncreasel/decrea5e in debtors Increase in creditors Net cosh (used inl/pro¥idedby open7ting urtivities 175.2371 1.157.016 Page 39
AVALON GROUP (SOCIAL CARE) IA company limited by guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 zo. Analysis of cash and cash equivalents 2022 2021 Cash in hand 1,962.266 2,106,009 Total cash 1.962.266 2,106,009 21. Analysis of changes In net debt At l April 2021 At 31 March 20Z2 Cash flows Cash at bank and in hand 2.106.CM)9 {25.0151 1143.7431 25.015 1.962.266 Debt due within l year 2.080,994 {118.7281 1.962,266 Pension commitrThents The charity operates a defined contributions pension 5cherne. The assets of the Scheme are held separately fromthose of the charity in an independently administered fund. The pension tost charge iepresents coniributions payable by the charity to the fund. The amount recognised as an expense in the period wa5 £147.806 12021.. £131,0521. Contributions totalling £23.968 12021.. £25.2031 were payable to the fvnd at the balanee sheet date and are included in creditors. 23. Operating lease commltments At 31 March 2022 the charity had commitments to make future minimum lease payments under non-tancèllable operating leases as follows.. 2022 2021 Not later than I year Between l and S years 73,521 39.513 67.931 IS2,706 226,227 107.444 Page 40
AVALON GROUP (SOCIAL CARE) {A company limited by guarantee) NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 24. Related party transactions The following payments wtre made to the business of a member of the board of tru5tee5 durin8 the year.. £6,130 12021.. £22,562) was paid to Deans Computer Services PLC for IT seryices. a company where a Trustee, Barry Rankin. is a Dirertor. The company has used Deans Computer Semces PLC for a number of years prior to Barry Rankin becominB a Trustee. At the year end there was a balance outstanding of £Nil12Q21.. £1.7151. Barry Rankin resigned on 26 August 2021, transacttons after this date have not been included in the figures above. Page 41