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← Avalon Group (Social Care)

2023-03-31-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 2023

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 - 14
Independent auditor's report on the financial statements 15 - 18
Statement of financial activities 19
Balance sheet 20
Statement of cash flows 21
Notes to the financial statements 22 - 39

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 2023

Stephen Fox, Chair of the Board[2,6,7] Karen Tyrell[3] Sandra Frier (resigned 24 January 2023) Joseph Bradley[1,4,8] Susan Howard Melvyn Ellis (resigned 31 August 2022) Susan Carr[5] Mohammed Arif Awan (resigned 7 January 2023) Alistair How (resigned 13 January 2023) John Moore Kirsty Needham (appointed 18 May 2023)[6] Michael Purvis (appointed 18 May 2023)[2,4]

1 Chair of Audit and Risk Committee

2 Member of Audit and Risk Committee

3 Chair of Business Development Committee

4 Member of Business Development Committee

5 Chair of People Committee

6 Member of People Committee

7 Chair of Remuneration Committee

8 Member of Remuneration Committee

Company registered number 02976727 Charity registered number 1048236 Registered office 6 Grove Park Court Harrogate HG1 4DP Independent auditor 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 2023

Senior management team

Larry Hollando, Chief Executive Officer (until 8 December 2022) and Company Secretary (until Jan 2023) Emma Williams, Chief Executive Officer (from 8 December 2022) Dan Blackith (until 28 June 2023) Lisette Robinson (from 8 December 2022) Bev Wilson

Page 2

Trustees’ Report for the Year ended 31 March 2023

__________________

I am pleased to present our Annual Report and Accounts for the year ended 31 March 2023 which provides a full summary of the year’s activities.

This has been a year of change for Avalon. We wished Larry Hollando, our CEO of 10 years, all the best in his retirement in February, and celebrated his huge contribution to Social Care and to Avalon. His leadership has guided the charity in upholding its reputation as a high-quality provider growing our Shared Lives and Community Support offer during that period. We welcomed Emma Williams to the role whose work alongside Larry as Finance Director in the past 5 years paved the way for a smooth transition.

We have emerged from the ongoing challenges presented by Covid-19 stronger and continue to build on this solid foundation as we begin to plan our next strategic priorities for the coming years. As always, I would like to express my sincere gratitude to all our staff, Shared Lives Carers, customers, families and Trustees for their hard work and dedication.

Resource pressures present throughout recent years worsened during the year putting severe pressure on our staff and Carers. We continued to prioritise the wellbeing of all our people, via initiatives including the Mindful Employer Charter, Mental Health First Aiders and a Wellbeing Support pack for all employees. From January 2023, Recruitment and Retention initiatives such as the Welcome Bonus, a review of all Support Worker rates and an improved and expedited recruitment process have yielded strong results such that by the end of the financial year, the shortfall in resource was reduced to a manageable level and the use of agency workers began to reduce.

Shared Lives activity recovered from Covid-19 lockdowns throughout the year with strong Carer recruitment and a significant increase in referrals, reaching further and meeting a wider range of needs in the community such as Mental Health and Transitions for both long term and short break support. We were disappointed to be unsuccessful in retaining one of our larger Shared Lives services following the year end which will see our North Yorkshire Shared Lives service transfer to a new provider from February 2024. However, we have grown our Shared Lives schemes in Doncaster, Middlesbrough and York and continue to invest in new and innovate approaches to Carer recruitment and developing the model to meet the future needs of those we support.

To enhance the quality and efficiency of services, Avalon’s digitalisation programme has systemised the recording and monitoring of Quality & Compliance in the year and teams have been supported to refresh their approach to maximising the quality of service delivery. There is significant digital change still to come to streamline the processes, revolutionise support planning and monitoring and importantly, to work towards a digitally inclusive environment for all.

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 2023

__________________

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 2023.

Reference and administrative information set out on page 1 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 requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). This report also meets the requirements of the Strategic Report for Companies Act 2006 purposes.

A. Avalon’s Objectives and Activities

Purposes and aims

Avalon Group’s vision is that the people we support will achieve their best life experience. We are 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 promote inclusive, personalised support in our local communities, helping individuals and families improve their lives. 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.

B. Achievements and performance

During the year ended 31 March 2023, the Avalon Group supported more than 450 people with learning disabilities, autism, people living with dementia and/or mental health challenges, commissioned by 19 Local Authorities and NHS bodies across Yorkshire and the North East of England. Services included supported living services, community support and Shared Lives long term and short term breaks and day services. 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.

Page 4

Trustees’ Report for the Year ended 31 March 2023

__________________

Key successes in the year include:

Set out below is a summary of the specific activities from the year 2022/23 along with the objectives we set for that year. Our plan is split into five pathways, which allow us to achieve our vision. The table below sets out the key plans associated with each pathway and performance during the year.

Strategicpathway Activitiesplanned Activitiesperformed
The right People–
Referring to staff,
Carers, Trustees and
our partners, having
the right people in
place who understand
and support our vision
will support its
achievement		 •
Review career progression
of all roles, with initial
focus on Support Co-
ordinators and Support
Workers
•
Development of
management training
offer and tailored training
for Shared Lives Carers
•
Establish new employee
forum and EDI working
group
Continual review of staff
reward package to remain
competitive		 •
Wellbeing Initiatives
Renewed Mindful Employer Charter and
trained the first cohort of employees
across all localities to be Mental Health
First Aiders.
Mental Health Support pack for
employees was created and rolled out
New wellbeing section on the benefits
portal was launched providing a wide
range of advice, support and signposting.
•
Agile Working Policy
Following staff consultation, the policy
was shaped and rolled out to meet the
needs of Avalon at the time.
•
Staff Benefits
A new benefits portal has been launched
which gives easy access to all Avalon
benefits including a new benefit
partnership with O2 and the Blue Light
card.
•
Improve Recruitment 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 website have

Page 5

Trustees’ Report for the Year ended 31 March 2023

__________________

been streamlined considerably, to speed
up and simplify the application process
Docusign was implemented to automate
part of the recruitment on-boarding
process. As a result, information gets out
to and returned to the applicant quicker
(on average 3 days) and increases the
qualityof the information.
A Sustainable Future-
Ensuring the financial
sustainability of our
charity through
investing in the
future, making the
best of our reserves
and creating a diverse
portfolio of
contracted work.		 •
Investment strategy
•
Retention of key contracts
•
Ongoing financial and
business reviews of each
locality		 •
Retention of key contracts– when the
two key contracts that came for retender
in the year: NYC Approved Provider List
and Wakefield My Life Services.
•
Additional grant funding– During the
year we received a grant for £20,000
from a charity partnership with Froneri.
We continue to benefit from up to
£96,000 per annum Google advertising
grant which comes in the form of free
PPC advertising throughout the year.
During 2022/23 the value of advertising
received was worth an estimated $35.
•
Supporting each locality to be financially
secure– Assisted localities with their
own growth plans through the quarterly
locality business review process and
supporting internal process
improvements such as recruitment and
retentionprocesses.
Meeting local need–
responding to the
needs of Local
Authorities,
developing additional
community services
and taking a generous
community approach		 •
Developing existing
services to meet local
need
•
Developing Shared Lives,
including new pilot respite
project in North Yorkshire
and broadening customer
groups
•
Develop Avalon’s
community presence,
including generous sharing
of resources and facilities
with local partners		 •
Growing and developing services to
meet future need- Our addition to a new
Bradford Supported Living framework
allows us to begin planning to expand
into this area, and our addition to the
Tees Valley Complex Care framework
aligns with our goal to take on more
complex packages there which will
enable growth over the next 3 years.
•
Shared Lives respite pilot– providing
dedicated rooms offered exclusively to
NYC for short breaks referrals. We also
implemented a single-point-of contact
for referrals to remove barriers. We
expanded the project to all referrals and
Carer assessments going forward to add
simplicity and consistency.
•
Sharing resources- we delivered free
training to local charities (including
Better Connect, MIND, Carer’s Resource)
and larger corporates (including Ikea)
supporting their teams to better
understand mental health and suicide
awareness.

Page 6

Trustees’ Report for the Year ended 31 March 2023

__________________

Embracing
technology–
completing an
organisation wide
digital transformation
which will see us
become a paperless
organisation with
efficient and effective
business systems, and
enhanced use of
technology enabled
care/assistive
technology.		 •
Digitalisation of care
records
•
Launch and rollout of all
employee intranet
•
Maximise use of Carefree
rota/reporting software
•
Digitalised
onboarding/new starter
process
•
Technology Champions
locally to support pro-
active use of assistive
technology and digital first
solutions for our
customers		 •
Quality assurance processes have been
transferred to the digital care system
during the year allowing real-time
accurate monitoring of quality &
compliance and a more simple way of
recording information.
•
We launched our new intranet for all
staff at the beginning of the financial
year. This hosts all policies & procedures,
regular communications updates and
wellbeing and support materials for all
staff including Support Workers.
•
Technology Champions in each locality
continue to keep up to date on new and
emerging technologies and how they can
best supportpeople.
Growing and
developing–
committing to the
development of more
good quality housing,
offering a wide range
of support services
including dementia
and mental health
and making Avalon
the first choice for
families across our
localities.		 •
Growing our Shared Lives
service through
recruitment of new
Carers, promotion of the
referrals process for 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 them
(whether Supported
Living, Community
Support or Shared Lives) –
working in partnership
with council transitions
teams
•
Growth of Supported
Living through pro-active
search and development
of suitable properties
across our localities
•
Creating an external
training offer
•
Developing a bespoke
dementia service based on
research of evidenced
local need		 •
Shared Lives Carer numbers growth-
Implemented ongoing targeted social
media campaigns on a rolling 6 weekly
basis with evaluation and ongoing
improvements to measure and maximise
ROI. Social Media adverts in the last 12
months were seen by 77,806 people
creating 364 leads and 7 conversions,
with a ROI of £397 per converted Carer.
•
Shared Lives referrals– Created new
materials to share with childrens and
fostering teams to encourage Shared
Lives to be factored into transitions
process early – materials aimed at foster
carers, young people and social workers
to understand Shared Lives and how it
benefits each audience. This saw an
increase in foster carers becoming
Shared Lives Carers, with numbers
expected to continue to grow year-on-
year.
•
Golden Days dementia service –
Increased the offering of our
Northallerton Golden Days service,
adding an extra day each week
specifically for people living with
dementia. Service running at capacity
since September 2022.

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Trustees’ Report for the Year ended 31 March 2023

__________________

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 a surplus for the year of £23,210 (2022: £20,477).

Income from charitable activities was £11.5m (2022: £11.3m) for the year ended 31 March 2023. Income from Supported Living and community support increased marginally to £7.3m from £6.8m in 2022, whilst Shared Lives income fell to £4.2m from £4.4m at 31 March 2022 as a result of Stockton Council Shared Lives services being taken back in-house.

Free reserves at 31 March 2023 are £1,071,563 compared to £1,065,279 at 31 March 2022.

In addition to our surplus, our cash position remains strong at £1,400,714 (2022: £1,962,266) although the reduction on prior year reflects the reversion of payment profile in place during Covid-19 when a number of Local Authorities moved to paying planned delivery one month in advance.

Risk

Avalon Group’s principal objectives for managing risks are to:

We have identified the principal High Risks at 31 March 2023 as:

Risk Mitigants
Staff recruitmentchallenge increased significantly
during the year and agency use increased. This caused
significant pressure on staff welfare.		 •
Creative and tailored recruitment solutions
such as Facebook adverts.
•
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.
•
Mindful Employer, Mental Health First Aiders
and staff WellbeingAction Plans introduced.
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.
Increased work pressure of pandemic leads to
reduction in quality and compliancemanifesting in
poor service delivery and/or inadequate CQC rating.		 •
Quality compliance monitoring remains a
priority for Operational teams supplemented
by Internal Audit reviews on a 6 monthly basis.
•
Quality
compliance
monitoring
systems
updated during the year to be captured and
reported digitally.
•
Regular
client
satisfaction
surveys
and
Compliments & Complaints monitoringidentify

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Trustees’ Report for the Year ended 31 March 2023

__________________

issues early to ensure resource is allocated as necessary.

Significant reputational damage

e.g. resulting from a safeguarding arising from unsuitability of staff & Carers and high turnover of Support Workers or an external event impacting Avalon's brand/image.

Tender risk

Current tender activity is short notice, failing services where existing providers are unable to continue. This increases the risk of safely delivering the service and around TUPE and staffing.

IT Infrastructure is not fit for purpose for example,

due to cyber threat and outdated working practices.

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.

Reserves Policy

Free reserves at 31 March 2023 are £1,071,563 (2021: £1,065,279). These are the net funds of £1,950,249 available after deducting fixed assets (which have no associated bank loans) of £626,949, Restricted Funds of £15,432 (2022: £15,530) and Designated Funds of £236,305.

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Trustees’ Report for the Year ended 31 March 2023

__________________

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 2023 remains at £1,031,860, following a review this year to ensure that potential additional risks to our operations arising from the pandemic are incorporated into this value. This means that our free reserves at 31 March 2023 are £41,563 above target reserves.

On 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 a designated funds were increased by a further £100,000 for the purpose of funding future projects which develop Avalon’s organisational infrastructure. In the year ended 31 March 2023 no further resource was allocated from Designated Funds.

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 and given the significant change impacting Avalon during this current period, planning the new Strategy for the period beginning 1 April 2024 is now underway.

This work involved a full review of our strategic direction, starting with our Vision, Mission and Values, and encompassing all elements of the business model to agree collectively and in collaboration with all internal stakeholders where the charity’s future priorities lie.

The table below sets out the key plans associated with each pathway of the plan for the year 2023/24.

Pathway Activitiesplanned
The right people– Referring to staff,
Carers, Trustees and our partners, having
the right people in place who understand
and support our vision will support its
achievement.		 •
Roll-out and implementation of PBS training program
across the charity
•
Draft Equality Diversity and Inclusion strategy fit for the
future
•
Review of HR function and resource required for
supportingour People through the medium term
A sustainable future– Ensuring the
financial sustainability of our charity
through investing in the future, making the
best of our reserves and creating a diverse
portfolio of contracted work.		 •
Retention of key contracts such as North Yorkshire Shared
Lives
•
Review of the operational structure in the context of
changes experienced and design Avalon plan fit for the
future
Meeting local need– responding to the
needs of Local Authorities, developing
additional community services and taking a
generous community approach.		 •
Develop Avalon’s community presence, including
networking plan for each ISC within Yorkshire and the
North East
•
Developing existing services to meet identified local,
community-based need, including:
•
Reducing barriers in referral routes such as home
from hospital
•
Transitions services into independent living

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Trustees’ Report for the Year ended 31 March 2023

__________________

•
Meaningful day services
•
Developing Shared Lives to ensure those
supported have the best opportunities possible to
live in the community they choose
Embracing technology– completing an
organisation wide digital transformation
which will see us become a paperless
organisation with efficient and effective
business systems, and enhanced use of
technology enabled care/assistive
technology.		 •
Digitalisation of full Care system using ICB grant funding to
be completed during the financial year
•
Use of Telecare/assisted technology wherever possible to
genuinely improve lives
•
Shared Lives digital strategy to meet the unique needs of
the service as a home-based lifestyle ensuring all families
are digitallyincluded
Growing and developing– committing to
the development of more good quality
housing, offering a wide range of support
services including dementia and mental
health and making Avalon the first choice
for families across our localities.		 •
Business Development strategy for Supported Living,
Community Support and Shared Lives that diversifies
Avalon’s current contract risk at the same time as having
meaningful presence in our core local areas
•
Complex needs and PBS delivery to meet the growing need
for high quality provision in the Community. This will be
piloted in Teesside on the PBS framework where the scale
and skills & experience of the team will input into growth
across Avalon more widely.

E. Structure, Governance and Management

The Trustees confirm their compliance with s172 of the Companies Act 2006.

The Trustees recognise the need to operate in a way that considers and is fair to all our employees and this is firmly embedded in the culture and values of the charity.

Strategic planning underpins the operational delivery plans of the organisation. In the current three year plan, one of the five pillars to growth is People which is delivered by a People Plan measured by KPIs such as staff retention and results from the staff satisfaction survey.

The annual cycle of Board meetings is mirrored by a series of staff meetings for each role (SMT, Locality Managers, Service Managers and Administrators). Key topics discussed at the Board and Sub-Committee meetings are cascaded via these staff meetings which also provide the opportunity for staff to feed back to the Trustees at the next quarterly Board meeting. In addition, Trustees perform locality visits where they meet the staff team, carers and customers at a locality.

Legal

The Avalon Group is a charitable company limited by guarantee.

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Trustees’ Report for the Year ended 31 March 2023

__________________

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’ Annual 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:

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.

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Trustees’ Report for the Year ended 31 March 2023

__________________

Committees

There are currently three Committees, made up of Trustees and senior managers:

Post year end, the committees were split, to create a separate Business Development committee.

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.

In 2022 we welcomed 3 new Trustees whose experience and expertise, along with their passion for adult social care, added additional strength to our Board.

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 2023 we paid Trustees expenses of £379 (2022: £25), 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 30 November 2023.

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Trustees’ Report for the Year ended 31 March 2023

__________________

This report, including the strategic report, was approved by the Trustees on 30 November 2023 and signed on their behalf by:

Stephen Fox

Stephen Fox (Dec 2, 2023 12:56 GMT)

Stephen Fox

Chair of the Board of Trustees

Page 14

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

INDEPENDENT AUDITOR'S 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 2023 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 Auditor's 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 15

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

INDEPENDENT AUDITOR'S 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 Auditor's 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 included within the Trustees' 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 16

(A company limited by guarantee)

AVALON GROUP (SOCIAL CARE)

INDEPENDENT AUDITOR'S 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.

Auditor's 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 Auditor's 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 17

(A company limited by guarantee)

AVALON GROUP (SOCIAL CARE)

INDEPENDENT AUDITOR'S 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: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's 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 Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Laura Masheder

Laura Masheder (Dec 8, 2023 13:42 GMT)

Laura Masheder (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: Dec 8, 2023

Page 18

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

Note
Income from:
Donations and legacies
4
Charitable activities
5
Investments
6
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net income
Transfers between funds
15
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2023
£
21,348
11,504,506
17,892
11,543,746
11,530,438
11,530,438
13,308
10,000
23,308
1,911,509
23,308
1,934,817		 Restricted
funds
2023
£
28,121
-
-
28,121
18,219
18,219
9,902
(10,000)
(98)
15,530
(98)
15,432		 Total
funds
2023
£
49,469
11,504,506
17,892
11,571,867
11,548,657
11,548,657
23,210
-
23,210
1,927,039
23,210
1,950,249		 Total
funds
2022
£
293,399
11,250,543
891
11,544,833
11,524,356
11,524,356
20,477
-
20,477
1,906,562
20,477
1,927,039

The Statement of Financial Activities complies with the requirements for an income and expenditure account under Companies Act 2006 and includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 22 to 39 form part of these financial statements.

Page 19

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

REGISTERED NUMBER: 02976727

BALANCE SHEET

AS AT 31 MARCH 2023

Note
Fixed assets
Intangible assets
11
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
19
Creditors: amounts falling due within one year
14
Net current assets
Total net assets
Charity funds
Restricted funds
15
Unrestricted funds
15
Total funds		 1,812,447
1,400,714
3,213,161
(1,889,861)		 2023
£
6,952
619,997
626,949
1,323,300
1,950,249
15,432
1,934,817
1,950,249		 1,656,191
1,962,266
3,618,457
(2,275,703)		 2022
£
-
584,285
584,285
1,342,754
1,927,039
15,530
1,911,509
1,927,039

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 Stephen Fox (Dec 2, 2023 12:56 GMT)

Stephen Fox

Date: 30 November 2023

The notes on pages 22 to 39 form part of these financial statements.

Page 20

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2023

Note
Cash flows from operating activities
Net cash (used in)/provided by operating activities
18
Cash flows from investing activities
Bank interest
Purchase of intangible assets
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash provided by/(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
19		 2023
£
(503,614)
17,892
(13,370)
(62,460)
(57,938)
-
-
(561,552)
1,962,266
1,400,714		 2022
£
(75,237)
891
-
(44,382)
(43,491)
(25,015)
(25,015)
(143,743)
2,106,009
1,962,266

Page 21

(A company limited by guarantee)

AVALON GROUP (SOCIAL CARE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

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 2025 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.

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.

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.

Page 22

(A company limited by guarantee)

AVALON GROUP (SOCIAL CARE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

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 with constitutional and statutory requirements.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 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.

2.6 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.

Amortisation is provided on the following basis:

Software licenses - 33 % on cost

Page 23

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.7 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:

Freehold property - 2% straight line
Leasehold improvements - over lease term
Motor vehicles - 20% straight line
Fixtures and fittings - 20% reducing balance
Office equipment - 25% straight line

Freehold land is not depreciated.

2.8 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.

2.9 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.

2.10 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.

Page 24

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.11 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.

2.12 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.

2.13 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.

2.14 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.

2.15 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.

Page 25

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

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. There are no 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.

4. Income from donations and legacies

Donations
Grant income
Total 2022		 Unrestricted
funds
2023
£
21,348
-
21,348
22,032		 Restricted
funds
2023
£
336
27,785
28,121
271,367		 Total
funds
2023
£
21,684
27,785
49,469
293,399		 Total
funds
2022
£
22,032
271,367
293,399

5. Income from charitable activities

Supported Living
Shared Lives
Other income
Total 2022		 Unrestricted
funds
2023
£
7,256,804
4,203,694
44,008
11,504,506
11,250,543		 Total
funds
2023
£
7,256,804
4,203,694
44,008
11,504,506
11,250,543		 Total
funds
2022
£
6,793,497
4,434,239
22,807
11,250,543

Page 26

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

6. Investment income

Bank interest
Total 2022		 Unrestricted
funds
2023
£
17,892
891		 Total
funds
2023
£
17,892
891		 Total
funds
2022
£
891

7. Charitable activities

Staff and Providers
Housing
Premises
Office and Consumables
Compliance
Other Costs
Group Allocated (Support)
Audit (Goverance Costs)
Total 2022		 Supported
living
2023
£
5,786,495
89,805
107,987
148,971
13,940
8,781
573,817
-
6,729,796
6,539,044		 Shared lives
2023
£
4,182,855
-
78,120
107,769
10,084
6,353
415,109
-
4,800,290
4,971,522		 Governance
2023
£
-
-
-
-
-
-
-
18,571
18,571
13,790		 Total
funds
2023
£
9,969,350
89,805
186,107
256,740
24,024
15,134
988,926
18,571
11,548,657
11,524,356		 Total
funds
2022
£
10,019,419
108,474
150,909
230,204
11,666
31,827
958,067
13,790
11,524,356

Page 27

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Group allocated costs breakdown

Staff and provider costs
Premises
Office and consumables
Compliance
Other
Auditor's remuneration
Fees payable to the charity's auditor for the audit of the charity's annual accounts		 2023
£
804,739
55,226
57,964
-
70,997
988,926
2023
£
14,270		 2022
£
805,044
36,742
53,169
12,391
50,721
958,067
2022
£
10,700

8. Auditor's remuneration

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

Page 28

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

9. Staff costs

Wages and salaries
Social security costs
Other pension costs		 2023
£
6,079,452
526,992
151,989
6,758,433		 2022
£
6,089,898
480,233
147,806
6,717,937

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

Support workers
Charitable activities
Management and administation of the charity		 2023
No.
240
51
26
317		 2022
No.
246
45
31
322

The average headcount expressed as full-time equivalents was:

Support workers
Charitable activities
Management and administration of the charity		 2023
No.
136
36
26
198		 2022
No.
157
47
29
233

Page 29

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

9. Staff costs (continued)

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

2023 2022
No. No.
In the band £60,001 - £70,000 1 1
In the band £70,001 - £80,000 2 -
In the band £80,001 - £90,000 - 1

The value of pension contributions to staff within the above bands is £12,466 (2022: £8,416).

The total amount of employee benefits (including employer pension contributions and national insurance) received by key management personnel is £369,355 (2022: £307,088). Key management personnel comprise the senior management team as detailed on page 1.

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).

During the year ended 31 March 2023, expenses totalling £379 were reimbursed or paid directly to 2 trustees in relation to travel expenses (2022: £150 was reimbursed or paid directly to 2 trustees).

Page 30

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

11.
Intangible assets
Cost
At 1 April 2022
Additions
At 31 March 2023
Amortisation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Software
licenses
£
35,730
13,370
49,100
35,730
6,418
42,148
6,952
-

Page 31

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

12. Tangible fixed assets

Cost or valuation
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Freehold
property
£
639,569
41,662
681,231
103,759
10,321
114,080
567,151
535,810		 Short-term
leasehold
improvements
£
20,647
-
20,647
2,519
4,524
7,043
13,604
18,128		 Motor
vehicles
£
11,005
-
11,005
11,005
-
11,005
-
-		 Fixtures and
fittings
£
60,178
15,776
75,954
48,186
4,742
52,928
23,026
11,992		 Office
equipment
£
177,319
5,022
182,341
158,964
7,161
166,125
16,216
18,355		 Total
£
908,718
62,460
971,178
324,433
26,748
351,181
619,997
584,285

Freehold land with a historic cost of £150,000 (2022: £150,000) is not depreciated.

Page 32

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

13. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 2023
£
1,435,796
51,599
325,052
1,812,447		 2022
£
1,278,821
29,217
348,153
1,656,191

14. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2023
£
320,543
132,775
347,426
1,089,117
1,889,861		 As restated
2022
£
152,593
147,964
473,520
1,501,626
2,275,703

For the purposes of comparability, payments made in advance totalling £274,496 have been moved from trade creditors in the comparative to accruals and deferred income.

Deferred income at 1 April 2022
Income deferred during the year
Amounts released from previous periods		 2023
£
285,644
381,839
(275,569)
391,914		 As restated
2022
£
21,171
285,644
(21,171)
285,644

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

Page 33

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

15. 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
Restricted funds
Inclusion
Wakefield Rotary Club
Groundworks - Northallerton
Kirby Foundation grant
NYCC Mkt support grant
DMBC fuel prices support
payment
Other restricted funds
Avalark Fundraising
Total of funds		 Balance at 1
April 2022
£
229,038
32,907
261,945
1,649,564
1,911,509
250
100
-
-
-
-
12,303
2,877
15,530
1,927,039		 Income
£
-
-
-
11,543,746
11,543,746
-
-
1,000
10,000
16,130
655
336
-
28,121
11,571,867		 Expenditure
£
(25,640)
-
(25,640)
(11,504,798)
(11,530,438)
-
-
-
-
(16,130)
(655)
(1,434)
-
(18,219)
(11,548,657)		 Transfers
in/out
£
-
-
-
10,000
10,000
-
-
-
(10,000)
-
-
-
-
(10,000)
-		 Balance at 31
March 2023
£
203,398
32,907
236,305
1,698,512
1,934,817
250
100
1,000
-
-
-
11,205
2,877
15,432
1,950,249

Page 34

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

15. 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
Restricted funds
Inclusion
Wakefield Rotary Club
Ship Drop-In
Infection control grants
WICS grants
WRRF grants
Middlesbrough covid grant
National living wage grants
Other restricted funds
Skipton Fundraising
Wakefield Rapid Testing Fund
Avalark Fundraising
Total of funds		 Balance at
1 April 2021
£
229,038
44,785
273,823
1,559,873
1,833,696
250
100
1,011
54,792
-
-
-
-
4,986
5,000
3,850
2,877
72,866
1,906,562		 Income
£
-
-
-
11,273,466
11,273,466
-
-
-
63,985
104,600
72,074
14,440
11,982
8,136
-
(3,850)
-
271,367
11,544,833		 Expenditure
£
Balance at
31 March 2022
£
-
229,038
(11,878)
32,907
(11,878)
261,945
(11,183,775)
1,649,564
(11,195,653)
1,911,509
-
250
-
100
(1,011)
-
(118,777)
-
(104,600)
-
(72,074)
-
(14,440)
-
(11,982)
-
(5,819)
7,303
-
5,000
-
-
-
2,877
(328,703)
15,530
(11,524,356)
1,927,039		 Expenditure
£
Balance at
31 March 2022
£
-
229,038
(11,878)
32,907
(11,878)
261,945
(11,183,775)
1,649,564
(11,195,653)
1,911,509
-
250
-
100
(1,011)
-
(118,777)
-
(104,600)
-
(72,074)
-
(14,440)
-
(11,982)
-
(5,819)
7,303
-
5,000
-
-
-
2,877
(328,703)
15,530
(11,524,356)
1,927,039
261,945
1,649,564
1,911,509
250
100
-
-
-
-
-
-
7,303
5,000
-
2,877
15,530
1,927,039

Page 35

(A company limited by guarantee)

AVALON GROUP (SOCIAL CARE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Description of funds

Designated funds

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.

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 May 2024 at the latest.

Restricted funds

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.

Infection control grants - funding from various local authorities for the purpose of measures introduced to reduce infection control risk across the services.

WICS grants - Workforece Integrated Care service: local authority grant funding to pay front line staff an additional payment.

WRRF grants - Workforce Development, Recruitment and Retention funding from local authorities.

Middlesborough COVID grant - local authority funding to support the workforce during the pandemic.

National Living Wage grants - local authority funding to support the payment of front line workers.

Groundworks - Northallerton - grant received for the purpose of funding Northallerton Day Service Equipment.

Kirby Foundation grant - grant received for the purpose of refurbishing the Harrogate office.

NYCC Mkt support grant - grant received for the purpose of recruiting Support Workers.

DMBC fuel prices support payment - grant to contribute to Support Work Pay in Doncaster.

Avalark Fundraising - donated monies and fundraising held for the use of each locality office and their customers.

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 Harrogate/ Northallerton/ Scarborough/ Teesside/ West Yorkshire/ Northallerton/Skipton and Head office locality fundraising 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 funding.

Page 36

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Transfers between funds of £10,000 have been rade from restricted funds to unrestricted funds to account for the purchase of tangible fixed assets in line with the restrictions of the funds.

16. 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 2022
£
261,945
1,649,564
15,530
1,927,039		 Income
£
-
11,543,746
28,121
11,571,867
Balance at
1 April 2021
£
273,823
1,559,873
72,866
1,906,562		 Expenditure
£
(25,640)
(11,504,798)
(18,219)
(11,548,657)
Income
£
-
11,273,466
271,367
11,544,833		 Transfers
in/out
£
-
10,000
(10,000)
-
Expenditure
£
(11,878)
(11,183,775)
(328,703)
(11,524,356)		 Balance at 31
March 2023
£
236,305
1,698,512
15,432
1,950,249
Balance at
31 March
2022
£
261,945
1,649,564
15,530
1,927,039

17. 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		 Unrestricted
funds
2023
£
619,997
6,952
3,197,729
(1,889,861)
1,934,817		 Restricted
funds
2023
£
-
-
15,432
-
15,432		 Total
funds
2023
£
619,997
6,952
3,213,161
(1,889,861)
1,950,249

Page 37

(A company limited by guarantee)

AVALON GROUP (SOCIAL CARE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

17. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Unrestricted
funds
2022
Restricted
funds
2022
£
£
Tangible fixed assets
584,285
-
Current assets
3,602,927
15,530
Creditors due within one year
(2,275,703)
-
Total
1,911,509
15,530
18.
Reconciliation of net movement in funds to net cash flow from operating activities
2023
£
Net income for the year (as per Statement of Financial Activities)
23,210
Adjustments for:
Depreciation charges
26,748
Amortisation charges
6,418
Bank interest
(17,892)
(Increase)/decrease in debtors
(156,256)
(Decrease)/increase in creditors
(385,842)
Net cash (used in)/provided by operating activities
(503,614)
19.
Analysis of cash and cash equivalents
2023
£
Cash in hand
1,400,714
Total cash
1,400,714		 Total
funds
2022
£
584,285
3,618,457
(2,275,703)
1,927,039
2022
£
20,477
18,969
143
(891)
(260,846)
146,911
(75,237)
2022
£
1,962,266
1,962,266

Page 38

AVALON GROUP (SOCIAL CARE)

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

20. Analysis of changes in net debt

Cash at bank and in hand At 1 April
2022
£
1,962,266
1,962,266		 Cash flows
£
(561,552)
(561,552)		 At 31 March
2023
£
1,400,714
1,400,714

There was no debt at the current or previous year end.

21. 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 £151,989 (2022: £147,806). Contributions totalling £20,095 (2022: £23,968) were payable to the fund at the balance sheet date and are included in creditors.

22. Operating lease commitments

At 31 March 2023 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		 2023
£
62,652
90,929
153,581		 2022
£
73,521
152,706
226,227

23. Related party transactions

There have been no related party transactions during the year.

In the prior year, £6,130 was paid to Deans Computer Services PLC for IT services, a company where a former Trustee, Barry Rankin, is a Director. Barry Rankin resigned on 26 August 2021, transactions after this date were not included in this figure.

Page 39