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2023-03-31-accounts

Page
Strategic Report 1 lo 3
Report ofthe Trustees 4 to 6
Report ofthe Independent Auditors 7to9
Consolidated
Statement ofFinancial		 Activities 10
Consolidated
Balance Sheet
Charitable
Company
Balance Sheet		 12
Consolidated
Cash Flow		 Statement 13
Notes to the Consolidated Cash Flaw Statement 14
Notes to the Consolidated Financial Statements 15to 33

2022-23 2021-22 2020-21
g'000 6'000 f.'000
Total incoming
resource		 12,708 11,043 10,208
Unrestricted incoming
resources		 12,633 10,571 10,113
Unrestricted surplus/(deficit) 75 1,043 95

for the Year E nded 31March 2 023
31.3.23 31.3.22
Unrestricted Restricted Endowment Total Total
fund funds fund funds funds
Notes f,
INCOME AND ENDOWMENTS
FROM
Donations
and legacies		 1,342 325,469 326,811 241,709
Charitable
activities
Drug and alcohol treatment services 10,795,818 10,795,818 9,105,805
Residential
Services		 1,351,756 1,351,756 1,272,785
Elderly 56,484
Other trading activities 3 52,181 52,181 194,661
Investment
income		 4 4
04		 8,260 182,364 172534
Total 12 375 201 333729 0
9 0		 » 043 9
8
EXPENDITURE ON
Charitable
activities		 6
Drug and alcohol treatment services 10,908,024 10,908,024 8,817,799
Residential
Services		 1,281,086 1,281,086 1,555,568
Elderly 61,924
Capital Grants 391,025 391,025
Drug Treatments 53 783 58783 135,602
Total 893 391,025 ».633.988 0»0 89
Net gains on investments
NET INCOME/(EXPENDITURE) 132,308 (57,296) 75,012 1,043,085
Transfers 11,250 (11,250)
NET MOVEMENT IN FUNDS 143,558 (11,250)
RECONCILIATION OF FUNDS
Total funds brought
forward		 4,269,519 1,385,156 135,000 5,789,675 4,746,590
TOTAL FUNDS CARRIED
FORWARD		 4 413077 1,327,860 868,789,6

31M arch 2023
31.3.23 31.3.22
Unrestricted Restricted Endowment Total Total
Notes fund funds fundI funds funds
FIXEDASSETS
Tangible
assets		 14 2,614,372 1,062,282 3,676,654 1,304,052
Investment
property		 15 2,418,176 123,750 2,541,926 2 541 926
5,032,548 1,062,282 123,750 6,218,580 3,845,978
CURRENT ASSETS
Debtors 16 3,656,951 3,656,951 2,037,370
Cash at bank 2,501,590 265 578 2,767,168 5,008 763
6,158,541 265,578 6,424,119 7,046,133
CREDITORS
Amounts
falling due within one year		 17 (6,345,853) (6,345,853) (4,519,530)
NET CURRENT ASSETS 265,578 78,266 2,526,603
TOTAL ASSETS LESSCURRENT
LIABILITIES 4,845,236 1,327,860 123,750 6,296,846 6,372,581
CREDITORS
Amounts
falling due after more than one
year 18 (338,492) (338,492) (430,906)
PROVISIONS FORLIABILITIES 20 (93,667) (93,667) (152,000)
NET ASSETS 4,413,077 1 327 860 123,750 8.86,68 700676
FUNDS
Unrestricted
funds		 4,413,077 4,269,519
Restricted funds 1,327,860 1,385,156
Endowment
funds		 123
0		 133000
TOTAL FUNDS 21 ,064 68

31.3.23 31.3.22
Unrestricted Restricted Total Total
Notes fund
f		 fundsf fundsf funds
FIXEDASSETS
Tangible
assets		 14 2,614,372 1,062,282 3,676,654 1,304,052
Investment
property		 15 2,000,000 2,000,000 2,000,000
4,614,372 1,062,282 5,676,654 3,304,052
CURRENT ASSETS
Debtors 16 4,541,130 4,541,130 2,915,991
Cash at bank 1,711,920 265,578 1,977,498 4,195,956
6,253,050 265,578 6,518,628 7,111,947
CREDITORS
Amounts
falling due within one year		 17 (6,315,879) (6,315,879) (4,512,109)
NKT CURRENT (LIABILITIES)/ASSETS (62,829) 265,578 202,749 2,599,838
TOTAL ASSETSLESSCURRENT LIABILITIES 4,551,543 1,327,860 5,879,403 5,903,890
CREDITORS
Amounts
falling due atter more than one year		 18 (338,492) (338,492) (430,906)
NKT ASSETS 4,213,051 1,327,860 5,540,911 5,472,984
FUNDS
Unrestricted
funds		 4,213,051 4,087,828
Restricted funds 1,327,860 1,385,156
TOTAL FUNDS 21 , 49,911 5,472,984

Consolidated Cash Flow Statement
for the Year Ended 31March 2023
31.3.23 31.3.22
Notes
Cash flows from operating activities
Cash generated
from operations		 93,823 ~409398
Net cash provided
by operating		 activities ~93823 409,398
Cash flows from investing activities
Purchase oftangible fixed assets (2,404,698)
Interest received 69,280
Sale oftangible
fixed assets		 (28,399)
Sale ofinvestment
property		 ~579787
Net cash (used in)/provided by investing activities ~2335418) ~551388
Change
in cash and cash equivalents		 in the reporting
period (2,241,595) 960,786
Cash snd cash equivalents at the beginning ofthe
reporting
period		 ~5008 763 ~4047 977
Cash and cash equivalents at the end ofthe
reporting
period		 2,767,168 ~5008 763

Notes to the Consolidated
Cash Flow Statement
for the Year Ended 31March 2023		 Notes to the Consolidated
Cash Flow Statement
for the Year Ended 31March 2023		 Notes to the Consolidated
Cash Flow Statement
for the Year Ended 31March 2023		 Notes to the Consolidated
Cash Flow Statement
for the Year Ended 31March 2023
RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
31.3.23 31.3.22
Net income for the reporting period (as per the Statement ofliinancial Activities) 75,012 1,043,085
Adjustments
for:
Depreciation
charges		 32,096 44,318
Interest received (69,280)
Losses on investments (570,000)
Loss on disposal of fixed assets 28,399
Provisions
movement		 (58,333)
(increase)/decrease in debtors (1,619,581) 128,108
Increase/(decrease) in creditors 1,733,909 ~264,512
Net cash provided by operations 93,823 409,398
ANALYSIS OF CHANGES IN NET FUNDS
Al 1.4.22 Cash flow At 31.3.23
g
Net cash
Cash at bank 5,0011,763 (2,241,595) ~2767 168
5,008,763 2441 595 ~2767 168
Total 5,008,763 2 241 595 2,767,168

DONATIONS
AND LEGACIES
31.3.23 31.3.22
Donations 1,342 1,334
Capital grants 325,469 240,375
326,811 241,709
31.3.23 31.3.22
6
Capital Grants 325,469 240,375
OTHER TRADING ACTIVITIES
31.3.23 31.3.22
6
Miscellaneous income 52,181 194,661

INVESTMENT INCOME
31.3.23 31.3.22
f
Rents received 182364 ~172532
INCOME FROM CHARITABLE ACTIVITIES
31.3.23 31.3.22
Activity
Service Level Agreements Drug and alcohol treatment services 10,795,818 9,105,805
Service Level Agreements Residential Services 1,351,756 1,272,785
Alfriston
day centre		 Elderly 56,484
, 7 10,43
074
CHARITABLE ACTIVITIES COSTS
Direct Support
Costs (see costs (see
note 7) note 8) Totals
f
Drug snd alcohol treatment services 10,131,552 776,472 10,908,024
Residential
Services		 1,201,984 79,102 1,281,086
Capital Grants 391,025 391,025
Drug Treatments 4,702 49081 33783
» 7 9.263 904.63 12 633918

31.3.23 31.3.22
Staff costs 6,092,568 5,704,341
Leasing ofpremises and equipment 5,111 3,197
Premises costs 1,108,933 746,680
Medical supplies 1,001,966 1,015,296
Catering costs 93,357 67,618
Training
and staff costs		 98,168 41,868
Office expenses 481,912 240,340
Travel &subsistence 123,346 88,853
Partners,
Agency workers		 and Sub-contractors 2,650,353 1,770,318
Client related costs 60,680 21,081
Bad debts (30,974) 3,458
Legal and professional 38,878 43,744
Finance costs 4,965 (753)
Depreciation 4
3. 29.263 9,787,352
SUPPORT COSTS
Governance
Management Finance costsI Totals
Drug and alcohol treatment services 776,472 776,472
Residential
Services		 79,102 79,102
Drug Treatments 24 168 22,413 2,500 49,081
~879742 22,413 2,500 ~904 655
Support costs, included in the above, are as follows:
31.3.23 31.3.22
Drug and
alcohol
treatment Residential Drug Total Total
services Services Treatments activities activities
I 6
Wages 430,730 59,221 489,951 412,522
Hire ofplant and machinery 2,111
Licences &registration 70,527 1,168 71,695 30,346
Office expenses 14,810 3,720 18,530 26,056
Legal &professional fees 50,143 11,244 61,387 80,970
Audit &accountancy 11,880 2,924 14,804 14,012
Management
charge		 10,000 10,000
Insurance,
health &safety		 74,215 14,945 89,160 77,566
Finance Charges 4,793 48 4,841 4,420
Travel &subsistence 40,532 40,532 21,414
Training 14,709 14,709 -1,920
Premises cost 32,037 32,037 33,630
Depreciation 32,096 32,096 3,008
Pensions 22,413 22,413 77,012
Auditors'
remuneration		 2,500 ~2500 2,395
776,472 79,102 49081 ~904655 783,541

31.3.23 31.3.22
f,
Auditors' remuneration 2,500 2,395
Depreciation
-owned assets		 32,096 44,318
Hire ofplant and machinery 5,111 3,197
Deficit on disposal offixed assets ~28 399
31.03.23 31.03.22
Depreciation
-owned assets		 32,096 44,318
Loss on assets 28,399
Leasing ofpremises
and equipment		 3,197 175,784
Auditor's remuneration 17,304 16,407
Pensions 191,521 181,492
Interest payable
and other charges		 9,806 3,667

STAF F COSTS
31.3.2023 31.3.2022
f I
Wages k salaries 5,867,500 5,471,888
Social
Other		 security costs
pension costs		 523,498
191,521		 463,483
» 4%
6,582,519 6,116,863
The averag e monthly
number ofemployees
during
the year was as fo		 llows:
31.3.23 31.3.22
Charitable activities 224 230
Management and administration 25 31
249 261

COMPARATIVKS FOR COMPARATIVKS FOR THE STATEMENT OF FINANCIAL ACTIVITIES THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Restricted Endowment Total
fund funds fund funds
INCOME AND ENDOWMENTS FROM
Donations
and legacies		 1,334 240,375 241,709
Charitable
activities
Drug and alcohol treatment services 9,105,805 9,105,805
Residential
Services		 1,272,785 1,272,785
Elderly 56,484 56,484
Other trading activities 194,661 194,661
Investment
income		 172534 172,534
Total 08e 6 240 375 88 043 9
8
Charitable
activities
Drug and alcohol treatment services 8,628,562 189,237 8,817,799
Residential
Services		 1,555,568 1,555,568
Elderly 61,924 61,924
Drug Treatments 135602 135602
Total 0
8
666		 09 37 0 70 09
Net gains on investments 570.000 0 00
NKT INCOME
Transfers
between
funds		 991,947
4,6 9		 51,138
434389)		 1,043,085
Net movement
in funds		 1,037,586 16,749 (11,250) 1,043,085
RECONCILIATION OF FUNDS
Total funds brought
fotward		 3,231,933 1,368,407 146,250 4,746,590



for the Year Ended 31March 2023

for the Year Ended 31March 2023
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted Restricted Endowment Total
fund funds fund funds
TOTAL FUNDS CARRIED FORWARD 0 6 33 .000 5,789,675

Total Total
2023 2022
I
Total income resources 12,648,062 10,984,977
Total resources expended (12,580,135) (10,435,291)
Net gains on investments 570,000
Net surplus/(deficit) 67,927 1,119,686
Funds:
At I April 2022 5,472,984 4,353,298
At 31 March 2023 5,540,911 5,472,984
TANGIBLE FIXEDASSETS
Fixtures
Freehold Long and
properly leasehold fittings Totals
f.
COST
At 1 April 2022 1,464,433 245,481 843,388 2,553,302
Additions 2,287,796 116,902 2,404,698
At 31March 2023 3,752,229 245,481 960,290 4,958,000
DEPRECIATION
At I April 2022 393,829 12,033 843,388 1,249,250
Charge for year 28,370 3,008 718 32,096
At 31March 2023 ~422 199 15,041 844,106 1,281,346
NET BOOK VALUE
At 31March 2023 3,330,030 230440 ~116184 3,676,654
At 31 March 2022 1,070,604 233,448 1,304,052

Freehold Property Long Leasehold Fixtures and fixtures Total
Cost or Valuation
At I April 2022 1,464,433 245,481 558,623 2,268,537
Additions 2,287,796 116,902 2,404,698
Disposals
At 31 March 2023 3 752 229 245 481 675 525 4 673 235
Depreciation
At 1 April 2022 393,829 12,033 558,623 964,485
Charge 28,370 3,008 718 32,096
Eliminated
At 31 March 2023 422,199 15,041 559,341 996,581
Net Book Value
At 31March 2023 3,330,030 230,440 36 66
At 31March 2022 1,070,604 233448 1,304,052

MARKET VALUE MARKET VALUE
As at
1 April		 2022 2,000,000
As at 31March 2023 0.000
NET BOOK VALUE
At 31March 2023 2,000,000
At 31March 2022 2,000,000
Fair value at 31 March 2023 is represented by:
Valuation
in 2022		 570,000
Cost 1,971,926
2,541,926
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.23 31.3.22
Trade debtors 3,480,782 1,839,991
Other debtors 115,863 149,003
Prepayments and accrued income 60,306 45,246
Prepayments 3,130
3,656,951 2,037370
Charitable
Company
31.3.23 31.3.22
Trade debtors 3,471,032 1,820,491
Amounts
owed by group undertakings		 893,929 901,251
Other debtors 115,863 149,003
Prepayments and accrued income 60,306 45,246
.3 1.130 91 99

CREDITORS: AMOUN TS FALLING DUE WITHIN ONE YEAR
31.3.23 31.3.22
Trade creditors 1,299,227 810,816
Social security and other taxes 125,571 110,444
Other creditors 1,480,308 1,477,438
Accruals and deferred income ~3440 747 2,120,832
~6345 853 4,519,530
Charitable
Company
31.3.2023 31.3.2022
Trade creditors 1,284,253 810,195
Social security and other taxes 125,571 110,444
other creditors 1,480,308 1,477,438
Accruals and defened income 2
2		 74 2.040»
6.ll 89 4
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.3.23 31.3.22
Other creditors 338,492 430,906
Charitable
Company
31.3.2023 31.3.2022
8 f.
Other creditors 8 9 l09M
»849 20904
LEASING AGREEMENTS
Minimum
lease payments		 under non-cancellable operating leases fall due as follows:
31.3,23 31.3.22
f,
Within one year 84,347 131,100
Between one and five years 335,389 406775
419,736 537,875

MOVEMEN T IN FUN DS
Net
movement At
At 1.4.22 in funds 31.3.23
Unrestricted funds
General fund 4,269,519 132,308 4,401,827
Transfer 11,250 11250
Total 4,413,077
Restricted funds
Asset Fund 1,385,156 (57,296) 1,327,860
Endowment funds
Wirrat PCT 135,000 135,000
Transfer
Total		 (11,250) ~II 250
~123750
TOTAL FUNDS 5,789,675 75,012 5,864,687
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
Unrestricted funds
General
fund		 12,375,201 (12,242,893) 132,308
Restricted
funds
Asset Fund 333,729 (391,025) (57,296)
TOTAL FUNDS ~IR.6
.I 88		 I 8»

Net Transfers Transfers
movement between At
At 1.4.21 in funds funds 31.3.22
6
Unrestricted funds
General fund 3,231,933 991,947 45,639 4,269,519
Restricted funds
Asset Fund
Legacy Income		 1,340,757
27,650		 51,138 (6,739)
~27,650)		 1,385,156
1,368,407 51,138 (34,389) 1,385,156
Endowment funds
Wirral PCT 146,250 (11,250) 135,000
TOTAL FUNDS 4,746,590 1,043,085 5,789,675
Comparative net movement in funds, included in the above are as follows:
Incoming Resources Gains and Movement
resources expended losses in funds
f
Unrestricted funds
General fund 10,803,603 (10,381,656) 570,000 991,947
Restricted funds
Asset Fund 240,375 (189,237) 51,138
TOTAL FUNDS ~)0,»0,80 ) 0 1,043,085
Charitable Company
Net movement
in		 Transfers between
At 1.4.22 funds funds At 31.3.23
f.
Unrestricted funds
General
fund		 4,087,828 125,223 4,2,13,051
Restricted funds
Asset fund 188 6 I 327 860
TOTAL FUNDS 5,472,984 67,927 5 540 911

Member Description 5 April 2023 5 April 2020
Deferred members Total deferred pensions revalued to valuation date - (Ip.a.) 5,845 6,808
Deferred members Average age weighted 47 44
Pensioners Total pensions payable (f.p.a.) 2,484 2,103
Pensioners Average age weighted by pension 71 68
The breakdown ofthe liability is set out below:
Description 2023 Valuation 2020Valustion
g'000s I'000s
Assets 419 234
Liabilities —Pensioners (42) (54)
Liabilities - Deferred members (176) (332)
Overall position 201 (152)
Funding Level 192'/o 61o/

EMPLO YEE BE NEFIT OBLIGAT ION S - continued
Revised
Assets Summary Investment
5 April 2023 5April 2023 strategy after 5
Allocationf. '000 Allocation % April 2023 %
Pooled Investment Vehicles 414 99 30
Bank 5 I 0
Tailored Credit 0 0 20
UK Inflation
Linked Gifts		 0 0 40
Sterling Inflation Linked LDI 0 0 10
Total 419 100 100
Analysis ofExperience Since Last Valuation
8'000
Shortfall on 5April 2023 (152)
Interest (2)
Contributions
less		 expenses 58
Changes in market conditions
(liability		 impact) 183
Excess investment returns 128
Inflation experience (40)
Impact ofchanges to statement offunding principles 28
Miscellaneous (2)
Surplus on 2023 assumptions 201
Expected 2023 shortfall (96)
Estimated shortfall at 2023 on 2020 assumptions 175

2023 Valuation 2020 Valuation
Pre retirement
discount rate		 Gilt curve+1.4%p.a. Gilt curve+1.5%pxc
Post retirement
discount rate		 Gilt curve+0.5%p.a. Gilt curve+0.5%p.a.
RPI inflation Inflation
curve		 Inflation
curve
CPI inflation RPI -0.75%until 2030RPI from that year RPI - 0.75%p.a.until 2030 RPI from that year
RPI pension increases In line with RPI assumptions In line with RPI assumptions
CPI pension
increases		 In line with CPI assumptions In line with CPI assumptions
Recovery plan return Gilt curve+0. 5%p.a. Gilt curve +2.0%p.a.
Average Gilt Yield curve 3.65%p.a, 0.69%p.a.
Average inflation
curve		 3.35%p.a. 2.71%p.a.
Demographic
assumptions		 —for Technical provisions
2023 Valuatiion 2020 Valuation
Mortality
- base table		 115%ofS3PxA 115%ofS3PxA
Mortality
- future improvements		 CMI 2022[1.5%,SCore] CMI 2019[1.5%,S=7.5]
CPI inflation RPI -0.75%until 2030 RPI from that year RPI-0.75%until 2030 RPI from that year
Proportions
married		 90%married for both males and females 90%married for both males and females

Assumed rate at last Assumed rate during rate during inter
Investment returns - assumed for the purpose ofthe 2020r ecovery plan valuation
p.a.
0.63%		 valuation period p.a.
15.73%
Revaluation up to retirement
in line with RPI 2.57% 6.09%
in line with CPI 1.82% 4.49%
Pension increases in payment
in line with RPI 2.57% 6 09%
in line with CPI 1.82% 4.49%

Potential Impact (2023 and 2020
valuation)
UK long dated interest date .0.5%p.a.
Inflation
UK life expectancy -0.25 years		 +0.5%p.a.
-0.25 years
Equity market re-pricing -15%
Diversified
growth
fund re-pricing -7.5%		 -7.5%
Investment
grade credit spread		 widening 0.2%p.a.
Impact on high yield debt -5%
Technical Provisions
Sensitivity
%Change
in
Liability
Pre retirement
discount rate reduced by 0.25%p.a.at each term +2.3%		 +2.3%
Post retirement
discount rate reduced by 0.25%p.a. at each term		 +3.2%
Inflation assumption
increased		 by 0.25%p.a. at each term+5. 5% +5.5%
Members one year younger +2.8%
Cash commutation
assumption		 increased by 10% +less than 0.1%

Summary
ofBe		 Summary
ofBe		 nefits nefits
Main benefits of the two underlying schemes'.
NHSPS Scheme LGPS Scheme
Normal retirement date 60th Birthday 65th Birthday
Normal retirement pension I/80th offinal pay I/60th offinal pay
for each complete for each complete
year ofservice year ofservice
Normal retirement cash Up to 3 times the Part ofpension can
members
pension		 be exchanged
for a
cash free sum
Increase to pension In line with rpi In line with cpi
Early retirement pension Available
aller the		 From age 55 to 60
age of55 or on ill
health
Death after retirement:
*lump sum On death within
5		 On death within
10
years of years of
commencement
of		 commencement
of
*dependant's
pension		 pension
One halfof		 pension
37.5%ofmembers
members
pension		 pension