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2023-03-31-accounts

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AVENUES EAST

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023 Charity Registration Number: 1061241 Company Registration Number: 03326442

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST

Index Page
Board Members and Executive Directors 1 - 2
Trustees’ Report 3 – 10
Strategic Report 11 - 13
Statement of Trustees’ Responsibilities 14
Independent Auditor’s Report 15 - 18
Statement of Financial Activities 19
Balance Sheet 20
Notes to the Financial Statements 21 - 35

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AVENUES EAST

BOARD MEMBERS AND MANAGEMENT PERSONNEL

FOR THE YEAR ENDED 31 MARCH 2023

Reference and administrative details of the charity, its advisers and trustees

Board Members

Chairman:

Terry Rich

All Trustees are Members of the overlapping Group Boards for Avenues Trust Group and all committees are held on a Group basis.

Non-Executive Trustees:

Martin Owen (To July 2022) Member of the Audit Committee and Risk Committee Evlynne Gilvarry Member of the Audit Committee and Risk Committee Alistair Oag (To May 2022) Chair of the Audit and Risk Committee and Finance Committee Alistair Brown (From May 2022) Chair of Audit and Risk Committee and Member of the Finance Committee Lauren Stoner Member of the QLE Committee

Note - Rich Hodgson is Chair of Finance Committee (from June 2022), Trustee of Avenues London only

Executive Trustees:

Joanne Land Nicola Ford

Key Management Personnel:

Paul Attrill Regional Director Joanne Land Group Chief Executive Nicola Ford Group Director of Finance Steven Parker Group Director of Housing and Development Daniel Gower-Smith Group Director of Operations Caroline Neal Group Director of People and Organisational Development Karina Hourd Group Business Development Director Lauren Osman Company Secretary

CHARITY REGISTRATION NUMBER 1061241

COMPANY REGISTRATION NUMBER 03326442

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AVENUES EAST

BOARD MEMBERS AND MANAGEMENT PERSONNEL

FOR THE YEAR ENDED 31 MARCH 2023

Registered Office:

River House, 1 Maidstone Road, Sidcup, Kent DA14 5TA

Advisors:

Bankers: Barclays Bank PLC, One Churchill Place, Canary Wharf, London E14 5HP Independent auditor: RSM UK Audit LLP, 25 Farringdon Street, London EC4A 4AB

Solicitors: Trowers & Hamlin, 3 Bunhill Row, London EC1Y 8YZ.

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AVENUES EAST

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The Board presents its Annual Report and the Audited Financial Statements of Avenues East for the year ended 31 March 2023. The legal and administrative information set out on Pages 1 and 2 forms part of this report. The Financial Statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS 102) applicable in the UK and in the Republic of Ireland (effective January 2019).

Introduction

The Avenues East accounts for 2023 and the 2022 comparative figures are constructed in line with best practice, as set out above. Compliance with best practice extends to the need to address the “public benefit” provided by Avenues East.

“Avenues”/”Avenues Group” means the Avenues Trust Group Limited and its subsidiaries of which Avenues East is one.

At the heart of our mission is a desire to empower individuals and communities, ensuring their well-being and fostering social equity. We firmly believe that every person deserves respect, dignity, and equal opportunities. Through our work we actively strive to uplift vulnerable people, promote inclusivity, and support the development of sustainable and resilient communities.

We recognise that, whilst delivering our mission, our actions today shape the word of tomorrow. As a dedicated and compassionate organisation, we believe in the power of Environmental, Social and Governance (ESG) principles to drive sustainable progress and create a lasting impact on our planet for the people that we support, our employees and the wider community. In the course of our work we are already really good at delivering against the social and governance aspects of these principles. We have made some progress against the environmental principles but are currently working on improving our impact in this area.

SOCIAL

Public Benefit

The Avenues Group specialises in providing complex support, most commonly working with people who have a profound learning disability, autism, or acquired brain injury.

The majority of our work is commissioned by local government and the NHS, and delivered through community-based Supported Living; a methodology which is recognised to deliver better outcomes and significant savings to the public purse when compared to traditional residential and clinical alternatives.

Avenues East supports more than 88 people to enjoy community-based life, and employs more than 282 staff.

The coronavirus pandemic demonstrated what an exceptional workforce we have, and our culture means we will not allow external challenges to inhibit the lives of the people we

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

support.

Our aspiration is not to manage people’s lives, but to understand what really matters to them and unlock the opportunities they want to take. But no provider can do this effectively in isolation.

Quality is of paramount importance to Avenues. It’s central to all our plans and we work with the Tizard Centre to audit our standards. At a statutory level we are regulated by the Care Quality Commission.

Performance is reliant on all employees' shared ambition to make a positive difference to the lives of people we support, so recruitment is based on aptitude - regardless of previous experience. Staff complete mandatory training, as well as specialist courses based on the needs of the people, we provide services to.

We always take into account shared interests when matching staff to people they might support. This means support is personalised and encourages retention and consistency. Staff take time to get to know people, supporting them to do things differently or for the first time, working out what matters to them and what they enjoy.

Avenues East is committed to developing the way it supports its staff, as we know that wellsupported people support people well.

We continue to work with the University of Kent on mindfulness packages to strengthen employee wellbeing, and professional training around positive behaviour support. This advances the efficacy of the care we provide and therefore reduce people's support needs over time.

The trustees of Avenues East have read the Charity Commission guidance on public benefit and have paid due regard to the guidance in preparing their statements on public benefit in this report.

Our Employees

In line with the vision of The Avenues Trust Group, we are committed to ensuring that all job applicants and employees are treated fairly in line with our equality of opportunities, diversity and fair treatment policy and procedure. We also have an ongoing commitment to ensuring that our employees are competitively rewarded, especially in light of the most recent cost of living challenges.

We value diversity and social inclusion across all of our activities and our recruitment process ensures that all applicants are recruited on a values basis, treated with respect and dignity and are screened to ensure that they are fit and suitable to work with vulnerable people. Our commitment to Equality, Diversity & Inclusion resulted in us retaining a place in the top 100 most inclusive employers in 2022 with the National Centre for Diversity.

We have a comprehensive wellbeing offering supporting mental, physical, social and financial wellbeing. It includes but is not limited to an Employee Assistance Programme, which includes

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

free counselling to those that need it, weekly Mindfulness sessions, money management advice and Early Pay which is a facility whereby employees can draw down their earned salary on a weekly basis should they need it to prevent the need for expensive pay day loans.

We have in place an extensive training package that supports safe working practices and have a well embedded practice of risk assessment to ensure safe practice and equipment. Our supervision practice is robust and ensures that wellbeing action planning is front and center of our discussions with the workforce.

In the event of a change in an employee’s health, in accordance with our sickness absence policy, we work with occupational health and the individual to establish whether this constitutes a disability and in the event it did, we would continue to work with them to make every reasonable effort to sustain ongoing employment. We have good rehabilitation practices in place to support those with substantial health issues to return to employment as early as possible.

Employee communication and engagement is key to the success of the Group. Through good local management and our communications team, we ensure that all employees are kept informed about the charity’s strategy, objectives and performance, as well as day-to-day news and events. Regular information about the organisation is available through newsletters, online resources, team meetings and management briefings. All employees are encouraged to give their views and opinions on strategy and performance. As well as local mechanisms to get in touch, employees can contact the Executive Management Team direct via email of by joining one of our regular virtual meetings with EMT members.

Our learning and development programme meets the standards and requirements set out by Skills for Care, the workforce development body for adult social care in England. The endorsement is a trusted quality mark only awarded to the best learning and development providers within the social care sector. Avenues has held this accreditation for a number of years now and were most recently reaccredited in January 2023. All of our managers undergo a specially designed induction and a Leadership and Management Academy that supports them to be effective leaders and managers. Training is free to our employees and freely available to them to attend through the publication of extensive quarterly training calendars.

Recognition of our workforce and their skilled and dedicated support to vulnerable people is key and is underpinned by our system of local monthly employee of the month awards which across the course of the year culminate in an annual awards ceremony.

ENVIRONMENTAL

We believe that safeguarding our environment is not just a responsibility but an urgent necessity. Avenues is committed to reducing our carbon footprint, promoting eco-friendly practices and supporting initiatives that protect and preserve our natural resources. By working with our partners and stakeholders, we are on a journey to implement sustainable strategies that contribute to a cleaner, greener and more resilient word.

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AVENUES EAST

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

We are working to reduce the harmful impact on the environment we work in. As a provider of care services much of what we do is through people working with other people but we are also an active user of resources:

To minimise our carbon footprint we are committed to reducing the use of natural resources including our reliance on fossil fuels:

We continue to keep these measures under review, introducing new initiatives and building on the work we already do. In doing so we will reduce our use of carbon reduction and create more environmentally sustainable ways of working.

GOVERNANCE

Transparency is the cornerstone of our governance. We hold ourselves accountable to the highest standards of governance, adhering to ethical practices and ensuring the responsible allocation of resources. We embrace openness in our decision making processes, fostering trust and confidence among our stakeholders.

Board Structure

The Avenues Group Boards operate an overlapping board governance structure. The overlapping board structure involves all the entities within the Group sharing a core group

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FOR THE YEAR ENDED 31 MARCH 2023

of trustees common to all the Boards (the majority of whom are non-executive) with a small number of independent trustees who sit on one but not any of the other Boards. This way of operating provides for efficiency but also the effectiveness of our governance. It increases the speed of o u r decision making, streamlines information flows and improves clarity regarding accountabilities.

Legal Structure

Avenues East is a charitable company limited by guarantee and was incorporated in England and Wales on 3 March 1997. The company was established under a Memorandum of Association which established the objects and powers of the charitable company, which is governed under its Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.

Members have adopted a set of Articles which include the Objects to enable the organisation to change its Board to a unitary structure, enabling two executives to become trustees.

Avenues East is a subsidiary of The Avenues Trust Group, which is a registered charity and constituted as a company limited by guarantee.

The Avenues Trust Group is the sole member of Avenues East. This change was affected and agreed at an Extraordinary General Meeting held in May 2020 where the Avenues East’s constitution was updated to reflect the changes.

The Board members are set out on Page 1.

The Group Board meets five to six times per year and more frequently if required and is responsible for determining the strategy of the organisation and for ensuring successful operational performance, in line with the expectations of stakeholders.

The Avenues Group has four committees which discuss the business of the whole Group. The committees are:

Committees report directly to all the Boards within the Avenues Group.

The Audit & Risk Committee , in line with good governance principles, is expected to bring a further degree of detachment from the Board’s responsibilities in discharging its distinctive duties. The committee oversees all systems, controls and processes that may have an impact on the ability to meet our aims.

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The Finance Committee provides an additional layer of oversight regarding any financial matters that may have a significant impact on the charity.

The People, Culture and Reward Committee (PCR) provides assurance that the Group has an effective People and Pay Strategy in place, promoting an effective, high performing and

diverse workforce. The committee also oversees issues relating to the remuneration of staff, with specific responsibility for making recommendations to the Boards regarding the Group Remuneration Policy and the Executive Management Team’s remuneration.

The Quality, Local Focus and Engagement Committee (QLE) provides assurance regarding the quality of our services and the engagement of the people we support across the organisation. This committee was introduced to provide assurance to the boards around the operational delivery of quality support. Our aspiration is that the support we provide enables people to maximize their independence and opportunities whilst keeping them safe. The committee will also find the best way to engage with all stakeholders within particular regions, ensuring their voices are heard so they are involved in the setting of the organisation’s goals, quality and culture.

Avenues East has made qualifying third party indemnity provisions for the benefit of its trustees.

The Charity Governance Code

The Avenues Group recognises the importance of good governance and uses the Charity Governance Code to inform any reviews and changes to all governance policies.

All trustees are made aware upon appointment of their responsibilities under the Code.

In our efforts to strive to be the best we can be in governance we have used the Code to undertake board and trustee appraisals, making sure that the principles of our appraisal tools are based on and support the guidelines and recommendations outlined in the Code.

All of our trustees are selected in a manner consistent with the organisation's recruitment, diversity and equality policies, ensuring that the selection process is both time and cost effective. In 2021 we began a recruitment campaign where we worked with specialist advisors to help us successfully improve the diversity of our board. This has been successful and will continue going forward.

Our trustees serve a period of four years, with an option to extend for a further five years. In addition to making direct approaches to suitable candidates Avenues may advertise for trustees through notice boards, network recruitment or in the media. When a recruitment need is identified the Head of Governance will work with the board or committee to carry out a skills audit before a recruitment campaign begins.

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Policies and procedures are in place for the induction and training of new trustees. Training needs are continuously identified through board/committee discussions and surveys and board and trustee appraisals. When a training need is identified we organise and this can be delivered online, internally or through externally facilitated training sessions. In 2022/23 the following training sessions were externally facilitated:

How we work with our stakeholders

Family Matters Group

Avenues are continually looking for ways to improve the support we provide and are keen to develop greater involvement in what we do from the families, carers and friends involved in the lives of the people we support. Last year we started our Family Matters Group.

The aim of the Family Matters Group is to provide a real voice for families, carers and friends in the work that we do, ensuring that our practices, policies, procedures and initiatives have their involvement.

The Family Matters Group has an independent chair and provides a forum which allows communication and transparency between us and the parents and advocates of the people we support.

The Group’s role is to:

New Directions

New Directions is a local engagement group. It is made up of people we support and is supported by one of our team from the Quality Assurance and Practise team. The group is well established, and members chair the meetings.

The purpose of the group is to:

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

This year the group has coproduced videos on Annual Health checks and the effect of Covid 19, reviewed the annual stakeholder survey, interviewed trustees and agreed the terms of reference, role profiles and report templates for the local engagement groups that are going to be set up throughout the Group.

Future work includes working with our Communications team to design the new website, joint facilitating the co-production training for all staff in the organisation, rewriting the role profiles for support workers and becoming quality checkers.

Data Protection Compliance

We believe that everyone has rights with regard to how their personal information is handled. Complying with Data Protection Law ensures people can trust us to use their data fairly and responsibly.

Safety and providing quality services is at the heart of everything we do. It is very important to us that we keep all personal information that we hold safe.

The Avenues Group Boards have continued to oversee our compliance with UK data Protection Laws. Avenues has always taken data protection seriously and we continue to strengthen our policies and procedures to ensure that the protection of people's information remains a high priority. Data Protection compliance is reported directly to the Audit and Risk Committee.

Strategy

The strategic direction of Avenues East is set in the context of the overall Avenues Group strategy as a whole. Our strategy for 2021-25, Building Better Lives Together’, will mean we are able to continue to provide our unique support for the long term; and offer it to more people, in more places.

Risk Management

The Boards of the Avenues Group operate a formal risk management process and risk register, which involves continuous review of the risks identified and those emerging, their potential impact and means of mitigation. The risk register is reviewed by the group Audit Committee, which, in turn, reports on risk to the Avenues Group Boards on a quarterly basis.

The key risks identified for 2022/23 were the challenges in the underlying competitive labour market for quality operational staff and impact of this on delivery and agency spend and cost of living/inflationary pressures. All necessary measures have been taken to mitigate these risks going forward including changes to recruitment and resourcing processes, introduction of agency vendor, negotiations of 2023/24 fee uplifts and improved agency monitoring.

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

STRATEGIC REPORT

Objectives and Activities

The charitable objects of Avenues East are for the public benefit as they support and promote the intellectual, emotional, physical and spiritual welfare of people aged nine and upward with complex support needs. This is achieved by providing professional, high quality, not-for- profit support services to people, supporting them to enjoy their lives within their communities.

In considering the organisation’s objectives and activities, the Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission.

Achievements and Performance

Avenues East operates a balanced scorecard which is completed on a monthly basis. Within this are Key Performance Indicators for each strand of the Strategic plan as follows:

People

As we continue to move away from previous restrictions due to the Coronavirus restrictions, we have gradually moved into a position of business as usual within our services, while reaming vigilant and keeping infection prevention and control at the forefront of all service delivery. We have continued to maintain a good supply of required PPE and have updated guidance across the organisation as required and following Government alterations.

Throughout the process of transition back to ‘normal’, we have maintained close working relationships with relevant professionals and family members. These relationships have been essential in empowering the people we support to lead rewarding and fulfilling lives, maintain positive family contact, through the most challenging of times.

As with all providers across the sector, recruitment and retention of staff has been one of the main challenges of the past 12 months, with a steady increase in vacancy rates across some services. Despite these challenges, we have maintained the highest standards across all services and work closely with our Recruitment colleagues to bring in new staff.

At March 2023 we had a vacancy rate of 30.9% against a target of 20% but this has improved from a peak of 36.2% in January 2023.

Financial Sustainability

We have maintained a low number of voids across services in the last 12 months and have forged close working relationships with the local authorities to identify suitable individuals where those voids occur.

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Growth and Development

We have acquired a new service in Essex supporting 6 people and have been successful in applying for numerous frameworks in new areas for Avenues East.

During 2022/23 we exceeded our growth target.

Reputation

We have maintained a 100% good rating with CQC across the East.

Financial results for the year ended 31 March 2023

Total income increased by 7% to £7m which was offset with an increase in expenditure of 15%. Therefore 2022/23 saw a deficit of £358k compared to a surplus of £139k in the prior year. As a consequence of in year performance, the accumulated funds are now shown at £55k.

Reserves Policy

The Reserves policy is established at a Group level and is used to ensure that Avenues Group reserves should be sufficient to mitigate against any significant organisational risks and as such the board have concluded a target for Group free reserves of £1.5m. Over the life of the 202125 strategic plan, Avenues East can expect to grow at a modest level. Avenues East will now start to build its own reserve levels.

Reserves were as follows at March 2023:

£000
- General (131)
- Restricted funds 193
- Pension scheme (8)
TOTAL 54

Investment Policy

The Group’s current investment policy is to place surplus cash requirements on the money market both overnight and for longer periods, earning interest at the money market rates at the time of placement.

Going Concern

The financial statements have been prepared on a going concern basis and the position on going concern ultimately rests with the Group. Avenues East has a deficit budget for 2023/24 but has undergone a transformation plan which puts Avenues East in a stronger position going into 2024/25 to grow at modest levels and start building reserves. Working capital requirements are covered at a Group level and the pension scheme deficit is for the long term and therefore has no significant bearing on the going concern assessment for Avenues East.

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The Avenues Group operates within a cross guarantee arrangement and cash is pooled across the group to service working capital requirements.

Future Plans

Avenues East operational priorities going forward are as follows:

The Annual Report of the Trustees and Directors is approved by order of the Board as trustees and the Strategic Report (included therein) is approved by the Board of Trustees in their capacity as the directors at a meeting on 17th October 2023 and signed on its behalf by

Terry Rich Chair Date: 17th October 2023

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AVENUES EAST

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

The trustees (who are also directors of Avenues East 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 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 to 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.

In so far as the trustees are aware:

Auditor

RSM UK AUDIT LLP has indicated its willingness to continue in office.

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INDEPENDENT AUDITOR ’ S REPORT TO THE MEMBERS OF AVENUES EAST

Opinion

We have audited the financial statements of Avenues East (the ‘charitable company’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to 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.

Other information

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

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INDEPENDENT AUDITOR ’ S REPORT TO THE MEMBERS OF AVENUES EAST

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 the 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 Directors’ Report or the Strategic Report included within the Trustees’ Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 14, 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.

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INDEPENDENT AUDITOR ’ S REPORT TO THE MEMBERS OF AVENUES EAST

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.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected noncompliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

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DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

INDEPENDENT AUDITOR ’ S REPORT TO THE MEMBERS OF AVENUES EAST

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the charitable company’s governing document, and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents and evaluating advice received from external advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to the Care Act 2014. We performed audit procedures to inquire of management and those charged with governance whether the charitable company is in compliance with these law and regulations and inspected correspondence with regulatory authorities.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://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 the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

NICHOLAS SLADDEN (Senior Statutory Auditor)

For and on behalf of RSM UK AUDIT LLP, Statutory Auditor

Chartered Accountants

25 Farringdon Street, London, EC4A 4AB Date 27 October 2023

P a g e 18

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST STATEMENT OF FINANCIAL ACTIVITIES

(Including Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2023

Notes
Unrestricted
General
Funds
Unrestricted
Pension
reserve
Restricted
Funds
INCOME
£000s
£000s
£000s
Donations and Grants
Donations
2
- - 1
0
- 1
Charitable Activities:
Provision of care to young people
2
- - -
Services to Adults
2
7,006
- -
Other Income
2
- - -
7,006
- -
Total income
7,006
- 1
Expenditure on:
Charitable activities:
Services to Adults
3
7,365
- -
Total expenditure
7,365
- -
Net (expenditure)/income
(359)
- 1
Transfer between funds
10
(4)
4
-
Net movement in funds
(363)
4 1
Fund balances brought forward
10
231
(12)
193
Fund balances carried forward
10
(132)
(8)
194		 Unrestricted
General
Funds
Unrestricted
Pension
reserve
Restricted
Funds
£000s
£000s
£000s
- - 1
0
- 1
- - -
7,006
- -
- - -
7,006
- -		 Total
Total
2023
2022
£000s
£000s
1
10
1
10

-
-

7,006
6,435
-
120

7,006
6,555
7,006
- 1		 7,007
6,565

7,365
6,426
7,365
6,426
(358)
139
-
-
(358)
139
412
273
54
412
7,365
- -
7,365
- -
(363)
4 1
231
(12)
193
(132)
(8)
194

The notes on pages 21 to 35 form part of these financial statements

P a g e 19

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST BALANCE SHEET as at 31 March 2023 COMPANY REGISTRATION NO : 03326442

Notes
FIXED ASSETS
Tangible assets
6
CURRENT ASSETS
Debtors
7
Cash at bank and in hand
CREDITORSfalling due within one year
8
NET CURRENT ASSETS
Pension scheme liability
13
NET ASSETS
FUNDS
Unrestricted funds:
General funds
10
Restricted funds
10
Pension scheme reserve
10
TOTAL FUNDS		 2023
2022
£000s
£000s
5
6
968
664
8
228
976
892
919
474
57
418
8
12
54
412
(132)
231
194
193
(8)
(12)
54
412

The notes on pages 21 to 35 form part of these financial statements

The financial statements were approved and authorised for issue by the Board of Trustees on 17th October 2023 and were signed on its behalf by:

Terry RIch Chairman of the Board

P a g e 20

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

1. Accounting Policies

Avenues East is a Charitable Company limited by guarantee, incorporated in England and Wales. The registered office is River House, 1 Maidstone Road, Sidcup, Kent, DA14 5TA. The Charity’s principal activities are disclosed in the Trustees’ Report.

The principal accounting policies adopted, judgements and key sources of estimation and uncertainty in the preparation of the financial statements are as follows;

a) Basis of preparation

The financial statements have been prepared in accordance with 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) (effective 1 January 2019) -(Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

Avenues East meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The charity is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepare publicly available consolidated financial statements, including this charity, which are intended to give a true and fair view of the assets, liabilities, financial position and surplus or deficit of the group. The charity has therefore taken advantage from the following exemption in its individual financial statements:

The financial statements are prepared in sterling, which is th fuctonal currncy of the Charity. Monetary amounts shown in these financial statements are rounded to the nearest £'000

b) Preparation of accounts on a going concern basis

The financial statements have been prepared on a going concern basis and the position on going concern ultimately rests with the Group. Avenues East has a deficit budget in 2023/24 but has undergone a transformation plan which puts Avenues East in a stronger position going into 2024/25 to grow at modest level and start building reserves, working capital requirements are covered at a Group level and the pension scheme deficit is for the long term, so has no significant bearing on the going concern assessment for Avenues East.

The wider Group operates within a cross guarantee arrangement and cash is pooled across to service working capital requirements.

P a g e 21

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

c) Income

Income is recognised when the Avenues East has entitlement to the resource and it can be measured with reasonable certainty. Income under care service agreements, rental income, management and consultancy fees are accounted for in the year in which the service is provided. Income received for specified future periods is deferred.

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income has been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether 'capital' or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and not deferred.

Income received in advance of a service is deferred until the criteria for income recognition are met and are measured at the fair value of the consideration receivable.

d) Tangible Fixed Assets and Depreciation

Fixed assets are stated at cost. Depreciation is provided at the following annual rates in order to write off the assets over their estimated useful lives:

Office Equipment 15-25% per annum on cost Furniture and Equipment 15-25% per annum on cost

Depreciation of an asset commences from the point the asset is brought into use.

The Charity’s policy is to capitalise all assets over £500.

e) Pension Costs

Avenues East participates in a defined contribution pension scheme with Standard Life. The contributions paid to this scheme are charged to the Statement of Financial Activities as they fall due.

The Social Housing Pension (SHPS) defined contribution scheme (also referred to as 'Pensions Trust' ) is an ongoing scheme . The contributions paid to this scheme are charged to the Statement of Financial Activities as they fall due.

The charity also contributes to the defined benefit Social Housing Pension Scheme (closed to future accrual), a multi-employer defined benefit scheme for certain Avenues East employees. Contributions are charged to the Statement of Financial Activities in the period to which they relate. The charity is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent basis and therefore as required by Section 28 of FRS102 accounts for its share as if it is a defined contribution scheme.

The different pension schemes are looked at in more detail in Note 13.

P a g e 22

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

f) Operating leases

Operating lease rental costs are charged to the Statement of Financial Activities on a straight-line basis over the period of the lease.

g) Resources expended and the basis of apportioned costs

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. VAT which cannot be recovered is included as part of the expenditure to which it relates. A liability is recognised once a legal or constructive obligation has been entered into by the Charity.

h) Allocation of support costs

Support costs are those functions that assist the work of Avenues but does not directly undertake charitable activities. Support costs include back office costs, finance, human resources, payroll, IT and governance costs which supports Avenues charitable activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities, please see note 3 for details on the basis of allocation.

i) Fund accounting

Unrestricted funds are 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.

Restricted funds are subject to specific restrictions imposed by donors. These funds are accounted for separately and are only available to be used in line with donor's requirements.

j) Taxation

The Company is a registered charity and as such its income and gains falling within Sections 471 to 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to its charitable objectives.

k) Debtors

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

l) Cash and cash equivalents

Cash and cash equivalents includes cash at bank and in hand 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.

m) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the

P a g e 23

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

n) Financial Instruments policy

The Charity only has financial assets and liabilities of a kind that qualify as a basic financial instruments. Basic financial instruments are initially recognised at a 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.

o) Management estimates and judgements

In the process of applying its accounting policies, the Charity is required to make certain estimates, judgements and assumptions that it believes are reasonable based on the information available. These judgements, estimates and assumptions affect the amounts of assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recognised during the reporting periods presented. There are no significant judgements or estimates made.

2. Income

Grant and donations

Other donations 2023
2022
£000s
£000s
1 10
1 10

Included in grants and donations are £1k (2022: 10k) of £1 is restricted donations.

Income from charitable activities was £7,006k (2022: £6,555k) of which £nil(2022: £83k) was resticted. Included in charitable activities was other income which was mainly Covid support grant received in the year of £nil (2022; £120k), was restricted to cover staff cost specific to covid safety.

3. Expenditure

2023 2022
£000s £000s
Net expenditure for the year is stated after
charging
Depreciation of tangible fixed assets 1 3
Operating lease charges for land and
buildings		 60 60
External Audit 10 4

P a g e 24

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

----- Start of picture text -----
Direct costs Support Costs 2023 2022
£000s £000s £000s £000s
Charitable Activities
- - - -
Provision of care to young people
Services to Adults 6,391 974 7,365 6,426
2023 Total 6,391 974 7,365
2022 Total 5,669 757 6,426
----- End of picture text -----

Expenditure on charitable activities was £7,365k (2022: £6,426k) of which £nil (2022: £83k) was restricted Covid related support cost.

The charitable activities provided by Avenues East have been categorised to reflect the key services provided.

Summary analysis of expenditure and related income for charitable activities

Income
Costs
Surplus		 Provision of care
to young people
Services to
Adults
Services to
Older
People
Total
£000s
£000s
£000s
£000s
- 7,006
- 7,006
-
(7,365)
-(7,365)
-
(359)
-
(359)

Analysis of governance and support costs

Avenues initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned between the key charitable activities undertaken in the year. Support costs are then allocated on a blended percentage rate which provides a fair allocation of costs. Refer to the table below for the analysis of support and governance costs.

Support costs
Governance		 Provision of care
to young people
Services to
Adults
Services to
Older
People
2023
Total
2022
Total
£000s
£000s
£000s
£000s
£000s
- 964
- 964 753
-
10
-
10
4
-
974
-
974
757

P a g e 25

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

3. Expenditure (continued)

EMT & Governance
Group Finance
Group HR
Group Office Management
Group Practice Development & Assurance		 General support
Governance
function
2023
Total
2022
Total
£000s
£000s
£000s
£000s
201
-
201
160
306
10
316
232
210
-
210
180
154
-
154
119
93
-
93
66
964
10
974
757

4. Trustees’ remuneration

The trustees are the directors of the company. During the year, 6 (2022: 4) member(s) of the Board have been reimbursed for expenses £2.5k (2022: £3k).

J Land, Chief Executive, is also a Trustee of The Avenues Trust Group. During the 2022/23 financial year she received £149k (2022: £148k) in remuneration including £12k of pension contributions (2022: £12k) from The Avenues Trust Group in respect of her role as Chief Executive. No remuneration or pension contributions were paid in relation to her role as a trustee.

N Ford, Group Director of Finance, is also a Trustee of The Avenues Group. During the 2022/23 financial year she received £111k (2022: £110k) in remuneration including £8k of pension contributions (2022: £8k) from The Avenues Trust Group in respect of her role as Group Finance Director. No remuneration or pension contributions were paid in relation to her role as a trustee.

The Directors of the Charity are remunerated by the Avenues Trust Group only to the extent permitted by the Charity's Articles of Association. A further payment was made in the year of £0.5k (2022: £0.5k) which is a collective premium to cover Trustees Liability and insurance.

5. Staff costs and key management personnel

The Directors of the company are remunerated by Avenues Group and therefore not included in the disclosure below.

The number of employees whose emoluments exceeded £60k were:

2023 2022
No. No.
£60k - £70k 1 1

The total number of staff employed by the charity as well as the full time equivalents are as follows:

P a g e 26

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

2023
2022
No.
No.
Office staff
2
3
Care staff
62
67
Part time Support staff
160
154
Bank contract staff
58
58

Total
282
282
Wages and salaries
Social security costs
Pension costs (Note 13)
Agencies
Staff costs		 2023
2022
FTE
FTE
1
2
61
66
123
116
- -
185
184
2023
2022
£000s
£000s
4,716
4,411
318
336
113
119
682
419
5,829
5,285

The key management personnel of Avenues East comprise the trustees including; the Group Chief Executive, Group Deputy of Operations, Group Director of Finance, Group Director of People and Organisational Development, Group Director of Business Development, and Group Director of Housing and Development. The Avenues East share of these costs along with cost of the Regional Director are shown below:

----- Start of picture text -----
2023 2022
£000s £000s
Wages and salaries 144 151
Social security costs 20 19
Pension costs 12 12
176 182
6. Tangible fixed assets
----- End of picture text -----

Cost
At 1 April 2022
Additions
Depreciation
At 1 April 2022
Charge for year
At 31 MARCH 2023
Net book value
At 31 MARCH 2023
At 31 March 2022
Costs as at 31 March 2023		 Total
£000s
£000s
£000s
115 159274
- --
Furniture
and
Equipment
Office
equipment
**115 159 274 **
109 159 268
1 -1
110 159 269
5 - 5
6
-
6

P a g e 27

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

7. Debtors

7. Debtors
8. Creditors
9. Movements in deferred income
Contract fees receivable
Prepayments and accrued income
Other Debtors
Amounts due from group undertaking
Trade creditors
Tax and social security
Other creditors
Accruals & deferred income
Amount due to group undertaking
Income recognised in the year
Income deferred in the current year
Income deferred at the year end
Deferred income at the beginning of the year		 2023
2022
£000s
£000s
396
265
148
139
21 -
403
260
968 664
2023
2022
£000s
£000s
122 130
139 144
250
5
258 186
150
9
919 474
2023
2022
£000s
£000s
34
41
(34)
(41)
25
34
25 34

Deferred income comprises contract fee income which relates to services that will be provided in the future periods, and grants and donation where milestones and conditions for recognition are expected to be met in future periods.

P a g e 28

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

10. Analysis of movements in funds

Unrestricted funds
General reserve
Pension reserve
Restricted funds
Partnership Working
Disability Forum for Suffolk
Disability Involvement Day
Disability Sport Project
Hope House Holiday Fund
Leisure – RHS Games
Leisure - Swimming
Teaming Up
Big Lottery
Employment Service
CSU Donations
Total Funds
Unrestricted funds
General reserve
Pension Reserve
Restricted funds
Partnership Working
Disability Forum for Suffolk
Disability Involvement Day
Disability Sport Project
Hope House Holiday Fund
Leisure – RHS Games
Leisure - Swimming
Teaming Up
Big Lottery
Employment Service
CSU Donations
Covid Support Grant
Total Funds
Analysis of movements in funds
(prior year)		 £000s
£000s
£000s
£000s
£000s
231 7,006
(7,365)
(4)
(132)
(12)
- -
4
(8)
9
- - -
9
4
- - -
4
11
- - -
11
22
- - -
22
4
- - -
4
3
- - -
3
35
- - -
35
62
- - -
62
12
- - -
12
15
- - -
15
16 1
- -
17
Balance at
31 March
2023
Balance at
31 March
2022
Income
Transfer
between
funds
Expenditure
193 1
- -
194
412 7,007
(7,365)
-
54
£000s
£000s
£000s
£000s
£000s
134 6,473
(6,343)
(33)
231
(45)
- - 33
(12)
9
- - -
9
4
- - -
4
11
- - -
11
22
- - -
22
4
- - -
4
3
- - -
3
35
- - -
35
62
- - -
62
12
- - -
12
15
- - -
15
7 9
- -
16
-83
(83)
--
Balance at
31 March
2021
Income Expenditure
Balance at
31 March
2022
Transfer
between
funds
184
92
(83)
-
193
273
6,565
(6,426)
-
412

P a g e 29

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

10. Analysis of movements in funds (continued)

Designated Pension Reserve

The pension reserve represents the movements in respect of the defined benefit pension schemes in which the charity participates.

Restricted funds

1) The Partnership Working fund is restricted to supporting the costs of user involvement in multi-agency working to promote the inclusion of disabled people in county and local initiatives.

2) Disability Forum for Suffolk fund is for work relating to representing and consulting with disabled people in Suffolk, as well as for organising events to bring disabled people in Suffolk together.

3) Disability Involvement Day fund is restricted to supporting the costs of organising the forum to meet representatives from disability organisations and statutory organisations across Suffolk.

4) Disability Sport Project is to provide sport and physical activities for young people and adults with disabilities.

5) The Hope House Holiday fund represents a fund raised towards the provision of an annual holiday for the residents.

6 +7) The “Leisure” funds are restricted to the various Leisure Activities services. The Learning through Leisure fund is restricted to this service.

8) The Teaming Up fund is restricted to various Teaming Up activities.

9) The Big Lottery fund is restricted to supporting disabled people during the transitional period of their lives enabling them to access volunteer and work experience opportunities within their local community.

10) The Employment Service fund is restricted to helping young people to gain work experience or volunteering enabling them to gain valuable life skills.

11) CSU Donations is community support donation restricted to helping disabled people to take part in social activities, for examples games and pub quiz.

12) Covid Support Grant specific to cover support cost that is link to covid safety.

P a g e 30

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

11. Analysis of net assets between funds

Restricted Unrestricted Unrestricted
Pension		 2023
Funds Funds Fund Total
Fund balances at 31 March 2023
are represented by:		 £000s £000s £000s £000s
Tangible Assets - 5 - 5
Net current assets 194 (137) - 57
Long Term Liabilities - - (8) (8)
Total 194 (132) (8) 54
Analysis of net assets between
funds - previous year		 Restricted Unrestricted Unrestricted
Pension		 2022
Funds Funds Fund Total
Fund balances at 31 March 2022
are represented by:		 £000s £000s £000s £000s
Tangible Assets - 6 - 6
Net current assets 193 225 - 418
Long Term Liabilities - -
(12)		 (12)
Total 193 231 (12) 412

12. Operating lease commitments

The total minimum lease payments under non-cancellable operating lease are as follows:

2023 2022
£000s £000s
Land and Buildings
Amounts due:
Less than 1 year 60 60
Between one and five years 164 190
More than five years 415 450

P a g e 31

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

13. Pension costs

Avenues East has contributed to both defined benefit and defined contribution schemes during the year and defined benefit schemes are accounted for as if they were defined contribution schemes if required by FRS 102 Section 28 'Employee benefits'. The total cost to the charity for the year ended 31 March 2023 in respect of pension contributions, which have been allocated between resources expended categories in proportion to staff costs and charged to the Statement of Financial Activities as appropriate, are as follows;

Pensions Trust SHPS
Pensions Trust Closed scheme
Per Note 5		 2022/23
2021/22
2022/23
2021/22
£000s
£000s
No.
No.
109
113
141
151
4
6
4
7
113
119

Defined Contribution Schemes

The Social Housing Pension (SHPS)

The Social Housing Pension (SHPS) defined contribution scheme (also referred to as 'Pensions Trust' ) is an ongoing scheme. The contributions paid to this scheme by the group are charged to the Statement of Financial Activities as they fall due.

The Pension Trust – Social Housing Pension Scheme (Closed Scheme)

Avenues East participates in the Social Housing Pension Scheme (the Scheme). The Scheme is funded and is contracted-out of the State Pension scheme.

The Trustee commissions an actuarial valuation of the Scheme every three years. The main purpose of the valuation is to determine the financial position of the Scheme in order to address the level of future contributions required so that the Scheme can meet its pension obligations as they fall due.

The company participates in the scheme, a multi-employer scheme which provides benefits to some 950 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

P a g e 32

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

13. Pension costs (continued)

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

£3,312,000 per annum From 1 April 2022 to 31 January 2025 (payable monthly)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies

Note that the scheme's previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabiliites of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

£11,243,000 per annum From 1 April 2019 to 30 September (payable monthly and increasing by 3% 2025: each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Present values of provision
Present values of provision Mar-23 Mar-22
£000s £000s
Present value of provision 8 12

Reconciliation of opening and closing provisions

Provision at start of period
Unwinding of the discount factor (interest expense)
Deficit contribution paid
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule
Provision at end of period		 Year ending
Year ending
Mar-23
Mar-22
£
£
12
45
- -
(4)
(11)
- -
-
(22)
8
12

P a g e 33

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

13. Pension costs (continued) SOFA impact

13. Pension costs (continued)
SOFA impact
Year Year
Ending Ending
Mar-23 Mar-22
£000s £000s
Interest expense - -
Remeasurements – impact of any change in assumptions - -
Remeasurements – amendments to the contribution schedule - (22)

*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes.

ASSUMPTIONS Mar-23 Mar-22 Mar-21 Mar-20
% per % per % per % per
annum annum annum annum
Rate of discount 5.52 2.35 0.66 2.53

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

14. Investment policy and position

The banking activities for Avenues East are managed by The Avenues Trust Group.

15. Related party transactions

As a member of the Avenues Trust Group, Avenues East uses central services to carry out its operations. The group makes a charge for the central costs based ratio of the salary costs of Avenues East against the total salary costs of the group.

In addition, Avenues Group acts as the central banker for Avenues East, paying salary costs and creditors and receiving cash from customers. There were no write offs during the year.

Balance owed at brought forward
Recharges of head office costs
Balance owed at carried forward
Payroll services provided by group companies
Receipts taken on behalf of group companies
Payments made by group companies		 2023
2022
£000s
£000s
251
472
(4,373)
(4,607)
7,047
6,472
(1,698)
(1,333)
(974)
(753)
253
251

P a g e 34

DocuSign Envelope ID: 5D2C8A96-A0A6-4A92-A003-343870CD43F3

AVENUES EAST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

16. Ultimate parent undertaking

The charity is consolidated into its ultimate parent undertaking, The Avenues Group, a charitable company (charity number 1130473, company number 03804617), limited by guarantee, incorporated in the UK. The consolidated financial statements of The Avenues Trust Group can be obtained by writing to The Avenues Trust Group, River House, 1 Maidstone Road, Sidcup, Kent, DA14 5TA.

The principal activity of The Avenues Trust Group is the provision of professional, high quality, not-for-profit support services to people with complex or challenging needs. The Parent exercises control through the power of appointment and removal of Trustees on subsidiary Boards.

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