Company number: 06595498 Charity registration number: 1125402
The Exaireo Trust Ltd
(A company limited by guarantee) Annual Report and Financial Statements For the Year Ended 31 March 2023
RWB CA Limited Northgate House North Gate New Basford Nottingham NG7 7BQ
**THE EXAIREO TRUST LTD CONTENTS**
|Reference and Administrative Details|1|
|---|---|
|Trustees’ Report|2 to 4|
|Statement of Trustees’ Responsibilities|5|
|Independent’s Examiner’s Report|6|
|Statement of Comprehensive Income|7|
|Statement of Changes in Reserves|8|
|Statement of Financial Position|9|
|Statement of Cash Flows|10|
|Notes to the Financial Statements|11 to 26|
**THE EXAIREO TRUST LTD REFERENCE AND ADMINISTRATIVE DETAILS**
|**Charity registration number**|1125402|
|---|---|
|**Company registration number**|06595498|
|**Principal office**|5 The Coneries|
||Loughborough|
||Leicestershire|
||LE11 1DZ|
|**Registered office**|Northgate House|
||North Gate|
||New Basford|
||Nottingham|
||NG7 7BQ|
|**Trustees**|Mr M Millman - Chairman|
||Mr G Bradshaw-Mays|
||Mrs B Wallington|
||Mr J Harper|
||Mrs C Brady|
||Mr S Scoggins – appointed 15 March 2022|
|**Secretary**|Mr C York|
|**Bankers**|CAF Bank Ltd|
||25 Kings Hill Avenue|
||Kings Hill|
||West Malling|
||Kent|
||ME19 4JQ|
|**Accountants**|RWB CA Ltd|
||Northgate House|
||North Gate|
||New Basford|
||Nottingham|
||NG7 7BQ|
1
**THE EXAIREO TRUST LTD**
## **TRUSTEES REPORT**
The Trustees, who are also Directors for the purposes of the Companies Act, have pleasure in presenting their report and the financial statement of the charity for the period ended 31st March 2023. This report includes the narrative reporting requirements of the Housing SORP 2018.
## **LEGAL STATUS**
The Exaireo Trust Ltd is constituted as a company limited by guarantee (company registration number 06595498) and is a charity registered for charitable purposes with the Charity Commission (charity registration number 1125402).
## **LIABILITY OF THE MEMBERS**
In the event of the charity being wound up during the period of membership or within the year following, company members are required to contribute an amount not exceeding £1.
## **PRINCIPAL AIMS AND OBJECTIVES**
The Memorandum of Association defines the objects for which the charity is established as: “To house, support, care and treat persons in need who are homeless and suffering from the effects of poverty, sickness, disability, old age, alcoholism, drug addiction, offending behaviour or any other mental or physical infirmity, as an expression of Christian faith.”
## **ORGANISATION**
The charity has pursued these objectives in several ways, details of these activities are set out below under the review of developments, activities and achievements.
The Trustees manage the charity.
## **PUBLIC BENEFIT**
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
## **REVIEW OF DEVELOPMENTS, ACTIVITIES AND ACHIEVEMENTS**
The charity, having now completed fourteen years of operation, has maintained a diverse range of courses and activities for residents, as well as offering a high quality of support and accommodation. No significant changes have been seen this year, some investment in one property allowed the conversion of a garage to an additional bedroom. Other repairs and renewals are needed in a number of properties, the trustees were aware that this work will require investment and despite the deficit seen in these accounts fully anticipate a return to modest surpluses in coming financial years.
The charity now has 51 bed-spaces for clients in need. Strong ongoing controls on collection of ineligible rent and Housing Benefit continued the good levels of income seen during this financial year. Void levels remained low, again below 5%.
As a Registered Provider of Social Housing the trustees are keen to assist smaller charities around the UK to start up similar temporary supported housing projects. We are pleased to report that the projects in Manchester, Worcester, Loughborough, Mansfield and Coventry continued to provide help to those in need. We are in discussions with other similar projects to expand this side of our work gradually.
2
**THE EXAIREO TRUST LTD**
## **TRUSTEES REPORT**
Throughout the year, all staff continued to develop the number and range of courses and activities organised for residents. Most continue to be in the areas of anger management and lifestyle, but others catered for special interests, crafts and general leisure time, including games evenings, art courses, craft, music and sport. The charity’s allotment plot has continued to be an area of significant development, providing a safe space for some of our most vulnerable residents. The Trust has been very fortunate to obtain the support of additional volunteers to help with this area of our work. We also ran a successful outward-bound week in Edale for residents. Our main office in Loughborough has continued to be an essential tool in the provision of support to our residents and others in need in the local community alongside the Reuse Project.
The ‘Exaireo Reuse’ back to work program for residents has continued to develop and grow, offering targeted support to residents, helping them to find education and work experience that leads to worthwhile employment. The project boasts an excellent reputation and social media following and has proved very popular with our residents. Significant amounts of furniture and paint have been saved from landfill or incineration and the local community are benefitting by purchasing low-cost quality items. The Pallet Project has been successful, recycling old wooden pallets into garden furniture, Christmas decorations and other household items.
Over the year, we continued to show a positive level of success in the rehabilitation of our residents. We received 391 referrals for accommodation during the year, a second year of significant increases year on year and 46 new residents were housed by the Trust, 90 residents lived with us in total during the year. Around 55% of those who left us did so successfully (a sizeable improvement on previous year), as part of a planned move-on. Even for those whom we had to evict, (mainly for non-payment of their rent), a significant proportion had made considerable improvements in their lifestyle, while with us.
Mike Millman continues as Chair of the board of Trustees, and we have a good mix of experience and qualifications within the current board. We are actively looking for additional trustees to strengthen the board where appropriate.
We continue to see the impact of COVID, particularly on the availability of funding and grants for our work. Our fundraising manager will explore alternative funding opportunities to support our ongoing provision of counselling and other additional services. We have also seen increased levels of referrals recently which may have been as a result of the cost-of-living crisis. We will continue to monitor this trend.
The Exaireo Trust has adopted the Charities Commission Code of Good Governance and the trustees confirm compliance with the Governance and Financial Viability Standard. The Trustees have reviewed the internal control systems in place and are satisfied that they provide strong controls over the resources of the charity.
Looking forward, the Trust will continue to grow organically, looking to restore the strong financial position we had established. Careful monitoring and control on costs should see a return to surpluses being retained.
## **RESERVES POLICY**
The policy is for the Trust to grow and maintain its free reserves to 25% of turnover, this providing a reasonable cushion against the possibility of some properties being relinquished back to their landlords and against any future extraordinary property maintenance needs or business fluctuation.
The Trustees’ intention is that this goal will be achieved each year but of necessity this may have to be tempered by the costs incurred in further growth as well as the ongoing social objective of the Trust to provide for the personal, health and skill-related rehabilitation of the residents. Where possible this latter objective will be resourced by grants and donations, but some aspects will need to be funded from retained revenue.
3
**THE EXAIREO TRUST LTD TRUSTEES REPORT**
## **RISK POLICY**
The trustees have examined the principal areas of the charity's operations and considered the major risks which may arise in each of these areas. In the opinion of the trustees the charity has established resources and review systems that, under normal conditions, should allow the risks identified by them to be mitigated to an acceptable level in its day-to-day operations.
## **SMALL COMPANIES PROVISION STATEMENT**
This report has been prepared in accordance with the small companies’ regime under the Companies Act 2006.
Approved by the Board on 28 September 2023 and signed on its behalf by:
Mrs B Wallington Trustee
4
**THE EXAIREO TRUST LTD**
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The trustees (who are also directors of The Exaireo Trust Ltd for the purposes of company law) are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Housing SORP
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that can 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 corporate and financial information included on the charitable company’s website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the trustees of the charity on 29 September 2023 and signed on its behalf by:
Mrs B Wallington Trustee
5
**THE EXAIREO TRUST LTD**
## **INDEPENDENT EXAMINER’S REPORT**
## **TO THE TRUSTEES OF THE EXAIREO TRUST LTD**
I report to the Charity trustees on my examination of the accounts of the Company for the year ended 31 March 2023.
## **Responsibilities and basis of report**
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your Charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of The Exaireo Trust Ltd as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the account do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
5. the accounts have not been prepared in accordance with the methods and principles of the Housing SORP 2018.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
N Coupland FCA DChA Northgate House North Gate New Basford Nottingham NG7 7BQ
28 September 2023
6
**THE EXAIREO TRUST LTD STATEMENT OF COMPREHENSIVE INCOME**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**Note**
Turnover
3
Operating Expenditure
3
Other Income
3
**Operating Surplus/(Deficit)**
Profit on disposal of fixed assets
Interest receivable
Interest and financing costs
3
Surplus/(Deficit) before tax
Taxation
**Total comprehensive income for the year**|**2023**
**£**
824,629
(1,052,464)
165,176
(64,009)
-
-
(10,195)
(72,854)
-
(72,854)|**2022**
**£**
798,441
(1,015,586)
178,761|
|---|---|---|
|||(38,384)
-
-
(8,599)|
|||(46,983)
-|
|||(46,983)|
The Charity’s results relate wholly to continuing activities. The accompanying notes form part of these financial statements.
The financial statements were approved by the Board on 28 September 2023.
**Mrs B Wallington Trustee**
**Mr G Bradshaw-Mays Trustee**
7
**THE EXAIREO TRUST LTD**
**STATEMENT OF CHANGES IN RESERVES**
## **AS AT 31 MARCH 2023**
|Balance as at 1 April 2021
Total comprehensive income for the year
Balance as at 31 March 2022
Total comprehensive income for the year
**Balance as at 31 March 2023**|**Unrestricted**
**Income &**
**Expenditure**
**Reserve**
**£**
329,790
(47,762)
282,028
(72,015)
210,013|**Restricted**
**Reserve**
**£**
309
779
1,088
(839)
249|**Total**
**£**
330,099
(46,983)|
|---|---|---|---|
||||283,116
(72,854)|
||||210,262|
8
**THE EXAIREO TRUST LTD**
**(REGISTRATION NUMBER 06595498)**
## **STATEMENT OF FINANCIAL POSITION**
## **AS AT 31 MARCH 2023**
|**Note**
**Fixed Assets**
Tangible fixed assets
7
**Current Assets**
Trade & other debtors
8
Cash & cash equivalents
**Creditors: amounts falling due within one year**
9
Net current assets
Total assets less current liabilities
**Creditors: amounts falling due after**
**more than one year**
9
**Total net assets**
**Reserves**
Income & expenditure reserve
Restricted reserve
**Total reserves**|**2023**
**£**
270,521
81,296
52,749
134,045
(50,967)
83,078
353,599
(143,337)
210,262
210,013
249
210,262|**2022**
**£**
273,294|
|---|---|---|
|||91,793
97,267|
|||189,060
(30,690)|
|||158,370|
|||431,664
(148,548)|
|||283,116|
|||282,028
1,088|
|||283,116|
For the financial year ended 31 March 2023, the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to the accounting records and preparation of accounts.
The notes on pages 11 to 26 form part of these financial statements
The financial statements were approved by the Board on 29 September 2023.
Mrs B Wallington Trustee
Mr G Bradshaw-Mays Trustee
9
**THE EXAIREO TRUST LTD**
## **STATEMENT OF CASH FLOWS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**Net cash generated from operating activities**
**Cash flow from investing activities**
Purchase of tangible fixed assets
Sale of tangible fixed assets
**Cash flow from financing activities**
Interest paid
New loans
Loans paid
Repayments of borrowings
**Net change in cash and cash equivalents**
**Cash and cash equivalents at beginning of the year**
**Cash and cash equivalents at end of the year**|**2023**
**£**
(15,118)
(14,091)
-
(29,209)
(10,195)
-
-
(5,114)
(15,309)
(44,518)
97,267
52,749|**2022**
**£**
(26,502)
(20,737)
-|
|---|---|---|
|||(20,737)
(8,599)
(1,500)
1,200
(3,702)|
|||(12,601)
(59,840)
157,107|
|||97,267|
The accompanying notes form part of these financial statements.
10
**THE EXAIREO TRUST LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **1. Legal status**
The Exaireo Trust Ltd is registered under the Companies Act 2006 and is a registered provider of social housing and a registered charity.
## **2. Accounting Policies**
## **Basis of accounting**
The financial statements of the Charity are prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP) including Financial Reporting Standard 102 (FRS 102) and the Housing SORP 2018: Statement of Recommended Practice for Registered Social Housing Providers,and comply with the Accounting Direction for Private Registered Providers of Social Housing 2022.
## **Basis of preparation**
The Exaireo Trust Ltd meets the definition of a public benefit entity in accordance with FRS 102.
The financial statements are presented in Sterling (£).
## **Going concern**
The Charity’s business activities, its current financial position and factors likely to affect its future development are set out within the report from the board. The Charity has in place long-term debt facilities which provide adequate resources to finance committed development programmes, along with the Charity’s day to day operations. The Charity also has a long-term business plan which shows that it is able to service the debt facilities whilst continuing to comply with the lenders’ covenants. As at 31 March 2023 the Charity had available cash balances of £52,749.
As part of the going concern assessment and conclusion, the trustees believe they have strong controls within a very detailed risk assessment to minimise the risks to staff and residents.
On this basis, the board has a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months after the date on which the report and financial statements are signed. The board have considered the foreseeable future for their going concern assessment to cover the period to 30 September 2023.
On this basis, the board continues to adopt the going concern basis in the financial statements.
## **Significant judgements and estimates**
Preparation of the financial statements requires management to make significant judgments and estimates.
## **Useful lives of depreciable assets**
Management reviews its estimate of the useful lives of depreciable assets at each reporting date based upon the expected utility of the assets including any components. Uncertainties of these estimates relate to technological obsolescence that may change the utility of certain software and IT equipment, changes to Decent Homes Standards and changes to energy efficiency requirements which may require more frequent replacement of key components. Accumulated depreciation of housing properties as at 31 March 2023 was £21,762. The carrying amount of the housing properties was £234,583 at the year ended 31 March 2023.
## **Turnover and revenue recognition**
Turnover comprises rental income receivable in the year, and other services included at the invoiced value of goods and services supplied in the year and grants receivable in the year.
11
**THE EXAIREO TRUST LTD NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2023**
## **2. Accounting policies (continued)**
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity, and it is probable that these conditions will be fulfilled in the reporting period.
Donated services and facilities are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. No income is recognised when there is no financial cost borne by a third party.
## **Taxation**
The Exaireo Trust Ltd is a registered charity and is, therefore, exempt from taxation upon profits arising from its charitable activities.
## **Debtors**
Short term debtors are measured at the transaction price.
Loans receivable are measured initially at fair value.
## **Creditors**
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
## **Employee Benefits**
Short-term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.
## **Housing properties – Properties held at cost**
Housing properties are properties held for the provision of social housing or to otherwise provide social benefit. Housing properties are principally properties available for rent and are stated at cost less accumulated depreciation and. Cost includes the costs of acquiring land and buildings.
## **Government grants**
Government grants include grants receivable from local authorities, and other government organisations.
Grants relating to revenue are recognised in income and expenditure over the same period as the expenditure to which they relate once reasonable assurance has been gained that the entity will comply with the conditions and that the funds will be received.
Grants due from government organisations or received in advance are included as current assets or liabilities.
## **Other grants**
Grants received from non-government sources are recognised using the performance model. A grant which does not impose specified future performance conditions is recognised as revenue when the grant proceeds are received or receivable. A grant that imposes specified future performance-related conditions on the association is recognised only when these conditions are met. A grant received before the revenue recognition criteria are satisfied is recognised as deferred income.
12
**THE EXAIREO TRUST LTD**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **2. Accounting policies (continued)**
Deferred income represents amounts received for future periods and is released to incoming resources in the period for which it has been received. Such income is only deferred when:
- The donor specifies that the grant or donation must only be used in future accounting periods; or
- The donor has imposed conditions which must be met before the Trust has unconditional entitlement.
## **Depreciation of housing properties**
Where possible the major components of housing properties are separately identified and depreciated to write down the cost of each component to its estimated residual value on a straight-line basis over its estimated useful economic life.
Unless identified at acquisition, newly acquired properties are treated as a single structure until subsequent valuations and/or replacement expenditure is quantified.
The charity depreciates the major components of its housing properties at the following annual rates:
Structure and roofs 2% Kitchen and bathrooms 10%
Freehold land is not depreciated.
## **Other tangible fixed assets**
Other tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is provided evenly on the cost of tangible fixed assets to write them down to their estimated residual values over their expected useful economic lives. No depreciation is provided on freehold land. The principal annual rates used for other assets are:
Motor Vehicles 25% reducing balance Computer Equipment 33.33% straight line Fixtures, Fittings & Equipment 16.67% straight line
## **Leases**
Rentals paid under operating leases are charged to income and expenditure on a straight-line basis over the lease term.
## **Reserves**
Unrestricted income funds are general funds that are available for use at the trustee’s discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
13
**THE EXAIREO TRUST LTD**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **3. Particulars of turnover, cost of sales, operating costs and operating surplus/(deficit)**
|**Social housing lettings**
**Other social housing**
**activities**
Charges for support services
Other
**Activities other than social**
**housing**
**Social housing lettings**
**Other social housing**
**activities**
Charges for support services
Other
**Activities other than social**
**housing**|**Turnover**
**£**
824,629
-
-
-
165,176
989,805
**Turnover**
**£**
798,441
-
-
-
178,761
977,202|**Cost of**
**Sales**
**£**
(217,058)
-
-
-
(216)
(218,624)
**Cost of**
**Sales**
**£**
(250,746)
-
-
-
(216)
(250,962)|**2023**
**Operating**
**expenditure**
**£**
(680,898)
-
-
-
(164,487)
(845,385)
**2022**
**Operating**
**Expenditure**
**£**
(624,613)
-
-
-
(148,610)
(773,223)|**Operating**
**(deficit)**
**£**
(73,327)|
|---|---|---|---|---|
|||||-
-|
|||||-|
|||||473|
|||||(72,854)|
|||||**Operating**
**(deficit)**
**£**
(76,918)|
|||||-
-|
|||||-|
|||||29,935|
|||||(46,983)|
14
**THE EXAIREO TRUST LTD**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
**3. Particulars of turnover, cost of sales, operating costs & operating surplus/(deficit) (continued)**
|**Homeless needs supported housing**
Rent receivable net of identifiable service charges
Donations
Grant
**Turnover from social housing lettings**
**Direct costs**
Rent
Rates and water
Light, heat and power
Repairs and maintenance
Other direct costs
**Other operating expenditure**
Wages and salaries
Staff NIC
Staff pensions
Trustee remuneration
Trustee NIC
Trustee pension
Travelling
Rent
Rates and water
Light, heat & power
Insurance
Other expenses
Repairs & maintenance
Telephone
Office expenses
Motor expenses
Training
Accountancy costs
Independent examiners fees
Legal and professional fees
Depreciation of housing properties
Loan and mortgage interest paid
Other interest paid
Bank fees|**2023**
**£**
824,629
-
-
824,629
128,661
19,195
46,221
7,882
15,099
217,058
423,178
24,642
7,972
66,069
6,955
1,555
14,010
26,380
2,183
1,385
9,680
19,997
11,614
12,931
21,911
4,791
1,071
3,356
3,180
3,600
3,627
10,195
-
616
680,898|**2022**
**£**
798,441
-
-|
|---|---|---|
|||798,441|
|||132,884
24,566
45,035
31,587
16,674|
|||250,746|
|||395,311
21,385
7,611
59,816
5,815
925
10,001
15,000
1,001
(1,316)
10,160
23,386
18,330
11,579
18,715
5,012
1,508
2,056
3,000
2,400
3,627
8,580
19
692|
|||624,693|
15
**THE EXAIREO TRUST LTD**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
**3. Particulars of turnover, cost of sales, operating costs & operating surplus/(deficit) (continued)**
|**Activities other than social housing**
Donated goods and services
Donation income
Grants
Other revenue
**Turnover from other activities**
Fundraising costs
Wages and salaries
Staff NIC
Staff pensions
Depreciation of other fixed assets
Rent, rates and water
Light, heat and power
Personal support costs|**2023**
**£**
34,567
32,821
5,695
92,093
165,176
216
77,531
3,742
1,261
13,237
31,277
5,467
31,972
164,487|**2022**
**£**
31,427
68,561
32,376
46,397|
|---|---|---|
|||178,761|
|||216|
|||59,409
1,948
614
9,746
42,835
3,779
30,279|
|||148,610|
16
**THE EXAIREO TRUST LTD**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **4. Operating surplus/(deficit)**
The operating surplus/(deficit) is arrived at after charging/(crediting)
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Depreciation of housing properties|3,627|3,627|
|Depreciation of tangible fixed assets|13,237|9,746|
|Surplus on disposal tangible fixed assets|-|-|
|Operating lease rentals|||
|Land and buildings|184,699|185,852|
## **5. Employees**
The average number of persons employed by the charity (including trustees) during the year was:
|Administration
Housing, support and care
The aggregate payroll costs of these persons were as follows:
Wages and salaries
Social security costs
Other pension costs|**2023**
**No.**
11
31
42
**£**
566,778
35,340
10,787
612,905|**2022**
**No.**
7
33|
|---|---|---|
|||40|
|||**£**
514,536
29,148
9,150|
|||552,834|
Mrs B Wallington received remuneration of £36,817 (2022: £37,086), employer pension contribution of £917 (2022: £925) and travel expenses of £Nil (2022: £Nil) in her capacity as Support manager.
Mr G Bradshaw-Mays received remuneration of £29,251 (2022: £22,730) for support working, and travel expenses of £1,167 (2022: £838).
No directors received remuneration for their role as trustees.
No employee received emoluments of more than £60,000 during the year (2022 – No. Nil)
## **6. Taxation**
The company is a registered charity and is, therefore, exempt from taxation.
17
**THE EXAIREO TRUST LTD**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **7. Tangible fixed assets**
|**.**
**Tangible fixed assets**||
|---|---|
|**Social**
**Housing**
**Properties**
**for letting**
**£**
**Cost**
As at 1 April 2022
256,345
Additions
-
Disposals
-
As at 31 March 2023
256,345
**Depreciation**
As at 1 April 2022
18,135
Charge for the year
3,627
Disposals
-
As at 31 March 2023
21,762
**Net book value**
As at 31 March 2023
234,583
As at 1 April 2022
238,210
The number of units managed by the charity at the start and end of the period were:
**2023**
**No.**
Homeless needs supported housing
51
**8.**
**Debtors**
**2023**
**£**
Trade debtors
52,875
Other debtors
9,253
Prepayments and accrued income
19,168
81,296
Included within Trade debtors are:
Rent and service charges
43,702
**Less**provision for bad debts
-
43,702|**Plant and**
**machinery**
**including**
**motor**
**vehicles**
**£**
69,897
14,091
-|
||83,988|
||34,813
13,237
-|
||48,050|
||35,938|
||35,084|
||**2022**
**No.**
50|
||**2022**
**£**
58,999
12,187
20,607|
||91,793|
||50,069
-|
||50,069|
18
**THE EXAIREO TRUST LTD**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **9. Creditors: Amounts falling due within one year**
|Bank and other loans
Trade creditors
Taxation and social security
Other creditors
Accruals and deferred income
Accruals and deferred income include the following deferred income:
As at 01 April 2022
Resources deferred in the period
Amounts released from previous periods
As at 31 March 2023
**Creditors: amounts falling due after more than one year**
Bank and other loans
The bank loan is repayable as follows:
Within one year
Within one to two years
Within two and five years
Five years or more|**2023**
**£**
3,797
6,284
9,870
12,233
18,783
50,967
779
5,833
(779)
5,833
**2023**
**£**
143,337
3,797
3,797
11,391
128,149
147,134|**2022**
**£**
3,700
3,869
8,468
1,837
12,816|
|---|---|---|
|||30,690|
|||3,143
779
(3,143)|
|||779|
|||**2022**
**£**
148,548|
|||3,700
3,700
11,100
133,748|
|||152,248|
## **10. Creditors: amounts falling due after more than one year**
The bank loan is repayable by monthly instalments, with interest charged at 5.5 %; the loan is secured by a charge over the property.
## **11. Operating lease commitments**
As at 31 March 2023 the charity has annual commitments under non-cancellable operating leases as follows:
|Operating leases which expire:
Within one year
Within two and five years
More than five years|**Land and buildings**
**2023**
**2022**
**£**
**£**
26,208
44,950
-
26,208
-
-
26,208
71,158|**Land and buildings**
**2023**
**2022**
**£**
**£**
26,208
44,950
-
26,208
-
-
26,208
71,158|
|---|---|---|
|||71,158|
19
**THE EXAIREO TRUST LTD**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **12. Related parties**
## **Controlling entity**
The charity is controlled by the trustees who are also directors of the company.
## **Related party transactions**
## **G & S Services (E.Mids) Community Interest Company**
Mr G Bradshaw-Mays (Resigned 10 November 2022) and Mrs B Wallington are directors of this company.
During the year The Exaireo Trust Ltd paid £Nil (2022: £Nil) to this company for goods and services supplied. There is an outstanding balance of £Nil (2022: £Nil) included in creditors.
During the year The Exaireo Trust Ltd received £Nil (2022: £250) from this company for the supply of goods and services. There is an outstanding balance of £250 (2022: £250) included in trade debtors.
Included within other debtors is a loan of £3,911 (2022: £6,467). This is due from the company to Exaireo Trust Ltd.
## **Mrs J Millman**
(Wife of the Chairman)
During the year, Mrs J Millman received a salary of £14,950 (2022: £16,021).
## **13. Members liability**
The charity is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the liabilities of the charity in the event of liquidation.
20
**THE EXAIREO TRUST LTD**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**14. Funds analysis**
**General funds**
Unrestricted income fund
**Total unrestricted funds**
**Restricted funds**
Residents fishing club
LCC Communities Fund
Drug & Outreach work|**At 1**
**April**
**2022**
**£**
282,028
282,028
309
779
1,088
283,116|**Incoming**
**Resources**
**£**
985,638
985,638
-
-
4,166
4,166
989,805|**Resources**
**Expended**
**£**
(1,057,653)
(1,057,653)
(60)
(779)
(4,166)
(5,006)
(1,062,659)|**At 31**
**March**
**2023**
**£**
210,013|
|---|---|---|---|---|
|||||210,013|
|||||249
-
-|
|||||249|
|||||210,262|
Residents fishing club was established by a grant from Charnwood Borough Council.
LCC – funding to contribute towards costs associated with delivering boxing sessions for women.
Drug & Outreach work – funding to contribute towards staff cost of the project.
|**15. Cash flow from operating activities**
Deficit for the year
**Adjustments for non-cash items:**
Depreciation of tangible fixed assets
(Increase) in trade & other debtors
Increase/ (decrease) in trade & other creditors
**Adjustments for investing or financing activities:**
Net gain on sale of fixed assets
Interest payable
**Net cash consumed by operating activities**|**2023**
**£**
(72,854)
16,864
10,497
20,180
-
10,195
(15,118)|**2022**
**£**
(46,983)
13,373
(7,389)
5,898
-
8,599|
|---|---|---|
|||(26,502)|
21
**THE EXAIREO TRUST LTD**
**NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2023**
## **15. Cash flow from operating activities (continued)**
|**At 1 April**
**2022 £**|**Cash flows £**|**Other non-cash**
**movements £**|**At 31 March**
**2023 £**|
|---|---|---|---|
|**97,267**|**(44,518)**||**52,749**|
|||||
|**(3,700)**||**(97)**|**(3,797)**|
|**(148,548)**|**5,114**|**97**|**(143,337)**|
|**(54,981)**|**(39,404)**|**-**|**(94,385)**|
## **16. Value for Money Standard**
## _**Introduction**_
As part of the Value for Money Standard: The Regulator of Social Housing has adopted a series of regulatory metrics as a tool to keep a consistent measure of Value for Money (VFM) across all providers.
||**Metric to Measure**|**Outcome**|
|---|---|---|
|Reinvestment % (due to the nature of the project we
have not developed new stock during this financial year)||**N/A**|
|New Supply Delivered % (due to the nature of the
project we have not developed new stock during this
financial year)||**N/A**|
|Gearing (Housing Properties at cost)||**57.4%**|
|Earnings before interest, tax, depreciation, amortisation,
major repairs included Interest Cover %||**(584.77)%**|
|Headline social housing cost per unit||**£17,606**|
|Operating Margin % - social housing only||**(7.22)%**|
|Operating Margin % - overall||**(7.36)%**|
|Return on capital employed||**(20.60)%**|
## **’ VFM– Exaireo s Own Metrics**
In addition to the 7-core metrics, set by the Regulator, organisations can choose other metrics that best define their ethos. All these metrics are reported in, or with, the annual accounts.
22
**THE EXAIREO TRUST LTD NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **16. Value for Money Standard (continued)**
## _**Choosing What Exaireo Will Measure**_
Exaireo specialises in Supported Housing for homeless persons many of whom have life controlling issues such as mental health, drug or alcohol dependency, offending behaviour or other issues which affect their ability to successfully maintain a tenancy.
Our aims are not only to provide somewhere to live, but to address the causes of homelessness. A major part of this is for residents to develop new routines and keep active with positive activities.
Therefore, alongside meeting the raw homelessness need, as effectively as possible, by providing a good standard of housing; Exaireo has always had the ethos of keeping resident active, in positive ways, to help their recovery and ‘move them on’ in their lives, rather than just provide the accommodation for a ‘steady-state’ existence. This has been with a ‘vision’ for future work readiness, as working is a major part of future independence and builds self-esteem in the meantime.
Exaireo has developed an innovative _Work Ladder_ program to move residents on from just somewhere to live (the bottom rung), stepping-up through volunteering, ESA Permitted Work, etc, to eventual full employment (the top rung).
We have translated these objectives into our own Metrics: see table **1** below.
|**1**|**Exaireo’s Strategic Objective**|**Exaireo’s Strategic Objective**||**Metric to Measure our VFM**
**Achievement**|
|---|---|---|---|---|
|Meeting the homelessness need in
the local community as effectively as
possible||||VOID management: Occupancy|
|Keeping residents positive & active
and buildingwork-readiness||||Work Experience / Volunteering hours|
||||||
|Providing a good standard of
housing||||Meeting the Decent Homes Standard
(DHS)|
||||||
|Providing an excellent service to
make a real difference in the lives of
our residents||||Overall Satisfaction|
|||||Complaint Resolution|
23
**THE EXAIREO TRUST LTD NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **16. Value for Money Standard (continued)**
## _**VFM Achievement in 2021-22**_
For this year’s outcomes, against our chosen metrics, please see table **2** below.
|**2**|**Metric to Measure our VFM**
**Achievement**||**2022-23**
**Outcome**|**Measure**|
|---|---|---|---|---|
|VOID management: Occupancy|||**96.1%**|Occupancy Rate of
units available to let|
|Work Experience / Volunteering hours|||**162.10**|Average Resident
hours per week**1**|
|Meeting the Decent Homes Standard
(DHS)|||**100%**|Units meeting the
DHS quality
measure|
|Overall Satisfaction|||**90.3%**|Residents either
Very or Fairly
Satisfied with the
overall Exaireo
service**2**|
|Complaint Resolution|||**100%**|Complaints
resolved within the
target timescale**3**|
**1** Exaireo encourages a work ethos through resident volunteering and provides work experience. We keep robust statistics to demonstrate this unique extra value provided, not only to the resident themselves, but also to Exaireo and indeed the wider community. Our usual service in this area, had largely returned to normal by the end of the reporting year (31[st] March 2023) following the Coronavirus pandemic. However, our robust stats were limited to our Reuse unit only from January 2023 to specifically demonstrate the VFM of this venture. Not including stats were limited on external or other internal placements, that are still taking place, has meant a slight dip in the numbers that would otherwise have been recorded here. [To further note: this applies purely to _resident_ volunteers / work experience and does not include the numerous externally sourced hours provided to our charity by generous members of our local community].
**2** HouseMark STAR standardised survey question on _overall_ service from the 2023 Resident Survey.
**3** Seven out of seven complaints received during the year (six out of six last year) were resolved within timescales.
24
**THE EXAIREO TRUST LTD NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2023**
## **16. Value for Money Standard (continued)**
## _**Further Metrics**_
The metrics recorded here are for the reporting year ending 31st March 2023. With effect from 1st April 2023 there is a new Tenant Satisfaction Measures Standard. This means that our report for the next reporting period will include a wider range of Tenant Satisfaction Measures (TSM’s). As part of this, for example, our next resident survey will capture and report on 12 tenant perception measures instead of the current 1 (overall satisfaction) in addition to other management measures
## _**Comparison with 2021-22, Benchmarking and Targets for 2023-24**_
Exaireo is a member of the Acuity Small Provider Benchmarking (SPBM) service. This helps us to benchmark (compare) the various elements and outcomes of our service with other similar organisations or peer groups.
Not all aspects of our service can be benchmarked, due to the bespoke nature of our service. Where benchmarking data is held by SPBM, it is given in relation to each of our chosen metrics.
**With reference to the previous tables** , the benchmarking data, together with our existing and proposed targets for the forthcoming 2023-24 reporting year, are summarised in table **3** below. The table also allows comparison with our outcomes for the previous 2021-22 reporting year.
|**3**|**Metric**|**Metric**|**2021-22**
**Outcome**|**2022-23**
**Outcome**|**Bench**
**mark**|**2022-23**
**Target**|**2023-24**
**Target**|
|---|---|---|---|---|---|---|---|
|Occupancy Rate||||**96.1%**|**96.4%***|**90%**|**90%**|
|||||||||
|Resident
Volunteering_(hours_
_per week)_|||**169.7**|**162.1**|**N/A**|**120**|**100**|
|Meeting DHS||||**100%**|**99.7%**|**97%**|**97%**|
|||||||||
|Overall Satisfaction||||**90.3%**|**85%**|**85%**|**85%**|
|||||||||
|||||||||
|Complaints
Resolution||||**100%**|**89.2%**|**85%**|**85%**|
|||||||||
Benchmarking obtained via Acuity Small Provider Benchmarking, peer group & HouseMark medians for 2022/23.
***** The only Benchmark measurement available for Occupancy relates to **General Needs** accommodation only; whereas Exaireo is exclusively Supported Housing. However, this figure is included here for an indicative comparison.
Supported Housing has intrinsically higher turnover, room damage, etc. This is due to the nature of the client-group served. Therefore, Occupancy rate is likely to be a margin lower for Supported Housing.
25
**THE EXAIREO TRUST LTD NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2023**
## **16. Value for Money Standard (continued)**
## **Targets**
The Resident Volunteering target for 2023-24 has been reduced to **100** average resident hours per week as external and other internal activities (e.g. Exaireo’s allotment, placement with the Maintenance Team, etc) are no longer being robustly measured. Hours are now only being recorded for our Reuse Warehouse Unit. This enables the specific demonstration of the VFM of Exaireo Reuse. Although stats are no longer being robustly captured for other resident activities, these activities are indeed still carrying on. The target has hence needed to be adjusted to reflect this.
Other targets have also been kept the same for now and, although the target values look low, they are realistic. This is due to the very low sample-sizes involved as Exaireo is a very small provider, with 51 directly managed units as at 31st March. Hence it would only take 1 actual failing to drastically change an outcome. E.g. Exaireo received only 7 complaints in this year.
Future targets for the new TSM’s have not been set at this point due to being initially rolled out from 1st April 2023. There is no historical reporting or benchmarking data available yet to enable an accurate judgement on this. Exaireo does intend to push itself on these however to ensure best value and improvements where identified.
26