Servol Community Services ser%éol Mental Health Care in Good Hands Report and Financial Statements For the year ended 31 March 2025 Company Reglstratlon No. 034707521 Charity Registration No. 1125896
Servol Community Services Report and financial statements for the year ended 31 March 2025 CONTENTS OF THE FINANCIAL STATEMENTS Page Report of the Trustees Independent Audltorfs Report 16 Consolidated Statement of Flnandal ActltIeS 20 Consolidated Balance Sheet 21 Charitable Company Balance Sheet 22 Consolidated Statement of Cash Flows 23 Notes to the Financlal Statements 24 Registered Office and Professional Advisers 41 Pagel 2
Servol Community Services Report and financlal statements for the year ended 31 March 2025 REPORT OF THE TRUSTEES Chair of the Board Report l am pleased to present our annual report for 2024125, which highlights the slgnlflcant progress Servol has made in supporting individuals severely affected by mental illness. This year's report reflects that progress of hope, transformation, and the vltal role community-based mental health services play In helping people rebuild their lives. Our continued Investment in staff development, systems improvement, and servlce user engagement underplns our commitment to high-quality, SponSive care. This past year has continued to be marked by uncertainty and growlng pressure across the mental health sector, and in particular real risks on existing contracts not having sufficient funding to provlde the much-needed services. Equally, for those living with severe mental illness and for their carers the environment has remained challenging, with demand for services Increasing and wider forms of support often limited or difficult to access. Against this difficult backdropi I am deeply appreciative of the dedlcation and resilience shown by our staff, whose unwavering cornmitment has enabled us to not only maintain but also strengthen our service provision. In particular, we have focused on enhanclng the quallty and reach of our supported housing services, ensuring that more people can access stable, person-centred support on thelr Journey toward recovery. Notably, the latter part of 2024125 brought new opportunities, including the launch of a new commissioned sen11 in the London Borough of Sutton, a significant milestone that signals our ongoing growth and the recognition of our impact wlthln the sector. Additionally, the successful introduction of our first-ever Staff Awards allowed our organisation to celebrate the indlviduals and teams who embody our values and make our work posslble. Their sense of pride and recognitlon affirmed our belief In nurturlng a posltlve, Inclusive culture. As we look to the future, the change In narional government brlngs wlth it the hope of renewed focus and investment in mental health. We are optimistic that a fresh policy directlon wlll deliver improved outcomes for people living with mental illness, and we are committed to playing our part In shaplng that future. On behalf of the Board of Trustees, l extend our deepest thanks to all who have supported Servol over the past year, our staff, volunteers, partners, commissloners, and community members. Your contributlons have been invaluable. Together, we remain focused on delivering meaningful impact and continuing to support recoveryi Independence, and dignity for als those we seNe. George Branch Board Chair Page13
Servol Community Services Report and flnancial statements for the year ended 31 March 2025 REPORT OF THE TRUSTEES Chief Executive's Report It is with great pride that I present Servol's Annual Report for thls perlod, a year marked by resilience, growth, and unwavering commitment to the people we serve. A Year of Challenge and Commitment As we reported last year the cost-of-llvlng crlsTS and cuts to public sector fundlng natlonally contlnues to impact both our sector and the communities we serve. Despite raising concerns and reviewing our contract flnancial envelopes with commlssloners thls dld not result In any real meaningful uplifts to our cUrnt contract value. Yet, recognising the dedlcatlon and financial pressures faced by our frontllne teams, our Trustees approved a wage increase for staff. This decision, warmly reived, was a testament to the value we place on those who deliver our services every day. Celebratlng Our People In April 2024, we were thrilled to host Servol's first-ever Staff Awards Ceremony In Birmingham, an event that was met with energy, prlde, and Joy. Trustees played an active role as part of the judging panel, personally presenting awards to Indivldual staff and teams whose contributions have made a remarkable impact. The day was a powerful reminder of the dedicatlon, compassion, and skill that drive our work forward. Bulldlng on thls success, we are exctted to announce that next yearfs ceremony will take place in London, where we plan to make it even bigger and better. Financlal Stablllty and Innovation Through careful expendlture management, targeted fundraisingf and successful grant applications, Servol not only sustained but increased income levels, resulting in a small surplu5. Thls strong flnanclal posltlon Is essentlal enabllng us to maintain vital servIs, pioneer new models of worklngi and strengthen collaborative partnerships. Service UseTrLed Innovation At the heart of Seniol's mission is a steadfast commltment to co-productlon with our service users. Thls ensures their voices shape every aspect of our work. A standout achievement this year was the launch of Phase 2 of the Healthy Eating, Healthy Llving programme, building on the strong results of our pllot. Participants from the pllot played a key role In shaplng the new delivery, bringing their lived experien to the design process and proudly stepping up as programme ambassadors, sharing Its benefits at resident meetings. Healthy Eatlng, Healthy Llvlng empowers participants with practical guldance on nutrltion, tips for eating well on a budget, and the chance to take part in gentle, accessible exercise-helping to make healthier lifestyles achievable for all. Growth and Expanslon December 2024 saw a major milestone as Servol was awarded a new supported accommodation contract In the Borough of Sutton, Surrey. Thls expansion Into a new locality strengthens our reach, enabling us to support more individuals to achieve independence and stability. We also maintsined strong partnerships wlth Wandsworth and Rlchmond Local Authority Health and Social Care, while actively seeking opportunities to expand our footprint across London and beyond. Our resldentlal servlces have sustalned full occupancy for much of the year, despite natural fluctuations. Following the introduction Page14
Servol Community Services Report and financial statements for the year ended 31 March 2025 REPORT OF THE TRUSTEES of a new service in Sutton, we restructured our London management provision to ensure contlnued strong leadership. In early 2025, we launched My Path My Journeyi a groundbreaklng pilot project for SeNol fvnded by the Mental Hea5th Provider Collalx)rative for Bsol. This innovative initiative offers dedicated, person-centred support to Individuals living with severe mental Illness (SMI), helping them navigate the transition from acute care with confidence. By focusing on recovery, stability, and empowerment, the project aims to reduce the rSsk of relapse and prevent readmission. paving the way for lasting wellbeing. Our Bellef and Vlsion SeNol's belief is simple but powerful: we see the potential In every person, regardless of their history or vulnerabilities. Our vision is to deliver quality mental health support and to be recognised as a leader In our field. This year, we have supported long-standlng residents, some after more than 20 years with us, to move Into Independent living. These successes embody our mlsslon and the transformative impact of our work. Looklng Ahead The year ahead wlll see us bullding on our achievements deepen5ng community impart, strengthening partnerships, and exploring new opportunities for growth and innovation. We will continue to diversify our income streams to ensure long-term sustainability, while remaining steadfast in our focus on delivering the best possible outcomes for those we serve. In October 2025 we will launch the Phoenix Project which will provide specialist supported accommodation for prison leavers with complex mental health needs, helping them reintegrate Into the local communlty and reduce reoffending. Acknowledgements Our progress this year would not have been posslble without: Our Board of Trustees, for thelr guldance and governance. Our exceptional staff, for their dedication, creativity, and resilience. Our servlce users, whose courage and contributions inspire us daily. Servol faces the future with optimism, determinatlon, and the belief that together we can continue to build lives of hope, dignlty, and opportunity. Phillp Gayle Chief Executive Page15
Servol Community Services Report and financial statements for the year ended 31 March 2025 REPORT OF THE TRUSTEES The Trustees submlt thelr strategic report and flnanclal ststements of Servol Communlty Servlces for the year ended 31 March 2025. The Trustees have adopted the provlslons of the Statement of Recommended Practice (SORP) -Accountlng and Reporting by Charities" (FRS 102) In preparing the annual report and financial statements of the charity. The group comprlses the parent company, Servol Community Services (the company), and Its subsidiary undertaking Servol Trading Limlted. Strategic direction & Business Plan Review At our Annual Trustees, Board Away Day, the Trustees of Serrfol Community Services undertook a comprehensive review of the organlsatlon's Strategic Business Plan. This review provided the opportunlty to assess progress against our objectives, evaluate the impact of our services, and ensure our strategy remalns aligned with the needs of our Servi users and the changlng extemal envlronment. Further Iteratlons of the plan wlll be made to reflect the current financial cllmate In which we operate, ensuring that se01 remalns resilient, responsive, and able to seize opportunities for growth and Innovation. Servol's Strategic Business Plan sets out our organlsational direction through 2024125. It Identifles the priority areas where Servol can make the most slgnlflcant and lastlng difference In the lives of vulnerable mental health service users and those who face dlsadvantage. The plan also outlines how we will continue to strengthen our internal capabilities, develop our workforce, and build the resources required to sustaln and expand our servlces. Our strategic objettives were establlshed at the outset of the plan, each designed to maximise our impact, strengthen organlsational resilience, and deliver measurable outcomes for those we support. Throughout thc ycar, wc havc measured our performance against these objectives, using the results to Inform serdlce Improvements, investment decisions, and our future dlrectlon. Delivering Safe, Fulfillingi and Independent Lives We are committed to enabling more adults to lead safe, fulfilling lives by dellverlng hlgh- quality, evidence-based support services that promote wellbeingi recovery, and Independence. Success will be measured by the positive outcomes achieved for every person we support. Our approach is underpinned by the Outcome Star recovery model, embedded across all services, alongside a culture of continuous Improvement in care and support. Our contlnuous Improvement programme for Adult Seniices will focus on: Recovery Deliver recovery-focused services that put each individual's journey at the centre of all decislons. Support service users to Ilve In the least restrictive environment possible. Promote maximum independence, autonomyi and self-determination. Page | 6
Servol Community Services Report and financial statements for the year ended 31 March 2025 REPORT OF THE TRUSTEES Recrultment and Retention Attract and retain staff who embrace our values and are motivated to deliver excellence. Actively respond to staff feedback to improve working conditions. Invest In tralning, supervision, and career development opportunlties. Enhance pay and introduce reward schemes to recognise excellence and commitment. Service User Involvement Deepen engagement with our"experts by experience- to ensure their priorlties are heard and acted upon. Give service users a central role In servlce redeslgn and Improvement initiatives. Service User Satisfaction Strengthen the way we gather and respond to feedback. Ensure senilce users, voices actively shape the future of our servlces. Quallty Adopt proven quality improvement methods across all senilces. Review and refine internal audit processes to focus on quality-driven outcomes. Achleve and maintain a Care Quality Commisslon (CQC) Good rating or higher across all regulated services. Ensure consistent quality standards in all non-CQC regulated Servi5. Innovation Work wlth partners to review and redesign services where needed to enhance our offer. Prepare proactively for the next mental health contract cycle (anticipated In 2026127). Maximise regional partnerships to expand and diversify services for people with Serious Mental Illness (SMI). Dlgltal Inclusion Ensure service users are supported to access and navigate the dlgltal world. Provlde tools, skills, and programmes to reduce digital poverty and exclusion. Help servlce users use technology to aC$S beneflts, utllitles, and wider support networks. The Focus of Our Work At Servol, we believe that every individual regardless of their history or clrcumstances has the unquestionable right to safe, decent, and well-maintained accommodation, alongside the care and support essential for mental wellness. For those livlng with Serious Mental Illness (SMI), these are not liixiiries; they are the foundation for r@covery, dignity, and hope. Our work is grounded in the voices of the people we serve. We know that the best way to improve and innovate is to listen deeply and respectfully to those who live the reality of mental health challenges every day. Their Insight shapes our servlces, drives our decisions, and ensures our support remains relevant, compassionate, and life-changing. Pagel 7
Servol Communlty Services Report and financial statements for the year ended 31 March 2025 REPORT OF THE TRusfEES We also believe that exceptional care begins with exceptional people. That Is why we invest In our staff, equlpping them with the trainingi tools, and opportunities to grow. By nurturlng our team, we ensure that the quality of our services remains conslstently high and that every indivldual we support reiVeS care that is not only professional but personal. At our core, Servol's focus Is slmple but powerful: to deliver the hlghest standard of support and care to Individuals with SMI, enabling them to1Sve with dignity, fjndependen, and the belief that theSr future Is worth fighting for. Our Two Main Goals Servol exlsts to achieve two clear and unwaverlng goals: Flrst, to empower adults with serious mental illness and complex needs to Ilve as Independently, confldentlyi and fully as possible. Second, to deliver Servi of the hlghest quality and set the standard as a leader in mental health care and support. ublic Benefit In setting Servol's plans and prforlties, the Trustees have been guided by the Charity Commlssion's prlnclples on deliverlng public benefit. Every planned activity Is carefully assessed against our strateglc objectives to ensure it directly advances our charitable purpose. Our core mission is to promote the safety, support, and care of individuals Ilvlng wlth mental 111 health, particularly those with Serious Mental Illness (SMI) and complex needs. We belleve that by delivering high-quallty, person-centred services, we not only mcct Immediate needs but also empower our service users to rebulld their lives, restore dlgnity, and achleve greater Independen. Servol's work beneflts both the individuals we serve and the wider community. By supporting some of the most vulnerable members of soclety to 5tabilise, recover, and thrive, we help unlock thelr potential to contribute positively to society whlle also reducing the social and economic impact of untreated mental 111 health. Our commitment Is clear: to create pathways of opportunity, hope, and inclusion ensuring every person we support Is given the chance to Ilve a Ilfe of purpose and possibility. Financial Stability and Sustainable Growth We are committed to safeguarding Servol's future by managlng our resources with precision, discipline, and foresight. Every pound we recelve is an opportunity to extend our Smpact, and we are determined to maximise its value through robust governance, efflcient operatlons, and strategic investment. Our approach will be built on: strong Foundatlons - Maintaining rlgorous internal systems and processes that provide the platform for dellvering consistently hlgh-quality services while ensuring long-term financlal stabillty and sustainable growth. Page18
Servol Community Services Report and financial statements for the year ended 31 March 2025 REPORT OF THE TRUSTEES Efficlency Through Technology - Automating key processes and harnesslng digltal transformation to streamllne operatlons, redu manual workloads, and free resources to focus where they are most needed. Smarter Spendlng - Embedding a culture of cost awareness and value for money across the organisation, ensuring every decision delivers measurable benefit. Cost savings wlll be reinvested directly Into initlatives that increase our reach and Improve our impact. Environmental Responsibility Integrating environmentally sustalnable practices Into all aspects of our operatlons, reducing C02 emissions and contributing to the wellbeing of the communltles we senie. Through this disciplined and forward-looking approach, we will ensure Servol remains flnancially strong, operationally agile, and fully equipped to meet both the challenges and opportunitles ahead. Flnancial revlew During 2024-25 Servol has been able to secure new income to support its charitable activities and deliver Its objectives In accordance with Its strateglc buslness plan. The current publlc sector funding environment rernalns challenging and contingency plans are in place to minimise the effect on our charitable activlties should our income be adversely affected. The financial staterrienis show total incoming resources of £3.7m (2024: £3.3m). The prlnclpal source of Servol's Income Is mainly in the form of accommodation fees and care and support fees towards the cost of the services we provide. Such fees are charged for the provlslon of residential and supported living accommodation senilces and are pald for by local and health authorities mainly in London and Birmingham, as well as local authorltles in Sutton, Derby and East Sussex. Staff costs are the largest resource and such expenditure for the organisation averages 60% - 70% of total expenditure annually. During the year, operational income increased by £314k over the financial year ended March 2025. Total operational expenditure also increased significantly by £208k. Net income before gains on investment was £30k for the year (2024: net expenditure of E26k. During the year £59k of leasehold improvements were written down due to early terminatlon of a lease by the landlord. Total group funds carried forward were therefore £635k (2024: £605k). Servol's major flnanclal risks continue to come from running ser11S with the posslblllty of high voids, arrears and the high usage of agency staff. Reserves and Risk Management strategy The Reserves Pollcy undergoes a thorough review each year. The Trustees are committed to ensuring that Servol maintains a flnanclal reSere robust enough to sustaln effective operations, partlcularly considering the prevailing practice whereby contracting bodtes release payments retrospectively, most often on a quarterly basis. This safeguard is Page19
Servol Community Services Report and financial statements for the year ended 31 March 2025 REPORT OF THE TRUSTEES deslgned to enable Servol to contlnue delivering its servlces even in the face of signiflcant challenges, providlng vital breathing space to adapt strategles in response to shlftlng clrcumstances. The Trustees recognise the importance of careful stewardshipi ensuring reserves are neither excesslve nor idle. Each year, the adequacy of the reserve Is evaluated against anticlpated Income levels. Should the resenie surpass the agreed threshold, the surplus wlll be channelled dlrertly into advancing the charity's objectives. Conversely, If reserves fall below the level requlred to cover operatlonal costs, urgent steps and an action plan will be taken to the finance subcommittee for approval and support to stem further depletlon and rebuild the fund without delay. Servol operates In an envlronment where both financial and operational rlsks are ever- present. The Trustees actively assess these potential threats and maintain systems deslgned to mitigate them effectlvely. The most presslng financial vulnerabllltles stem from operatlng ServIS wlth high vacancy rates and sustaining long-term contracts that requlre renegotiatlon and renewed dlalogue. As noted In our previous report, where'new, regulatory requirements are Introduced to enhance service standards without the provislon of additional fundlngi the strain on resources is significant. Nonetheless, Servol's exlstlng control measures have improved significantly and are now strong and provide the Board with a reliable, though not absolute, level of assurance against material misstatement or loss. When emerging rlsks are identified, Servol remains ready to strengthen its safeguards by Implementing further systems and procedures as necessary. Unrestricted undesignated reserves Unrestricted undesignated or'free, resen/es are those funds avallable to meet the day~to- day needs of the organisation's work. The Trustees have decided thati given the long-term commitments in the organisation's work, the fragillty of external fundlng for some of its services and the uncertainty of voluntary Income and legacies, these reserves should be held for not less than 3 months and not more than 6 months, expenditure. At the balance sheet date, the group's 'free' reserves amounted to £192k (2024.. £107k), equlvalent to less than one month of unrestricted expendlture. These reserves are therefore stlll below the reseNes pollcy minimum level. The Trustees continue to follow a strategic plan, which amongst other thlngs, seeks to diversify income streams and rebuild 'free' resees. Risk Management and Internal Controls Overview Over the past year, Seniol Community Services has continued to apply its comprehensive risk managernent framework and register. This structured framework clearly delineates the roles and responsibilities for rlsk oversight across the organisation, while establishing a systematic methodology for the identification, assessment, mltlgatlon, monitoring, and review of rlsks. Furthermore, It promotes a culture of continuous learning, ensurlng that Insights gained from risk management activities are embedded Into organisational practice. Page 110
Servol Community Services Report and financial statements for the year ended 31 March 2025 REPORT OF THE TRUSTEES Governance and Oversight The Board of Trustees retains ultimate responslbllity for the management and control of risks across Servol. While overall accountability rests with the Board, speclflc elements of the rlsk management process are delegated to the Finan Committee, the Quality and Safety Committee, the senior leadership team, operatlonal managers, and other key colleagues who are in attendan at the committee meetings. These two groups work In close collaboration to maintain the integrity and effectiveness of the corporate risk register, whlch serves as the central tool for identifying and tracking organisational rlsks. The register is formally reviewed at meetings of both the Finance and the Quality & Safety Committees, where key risks are examined in detail and appropriate actions are discussed. Recommendations and findings from these committees are subsequently presented to the Board, ensuring informed oversight and robust decision- making The following risks have been Ident5fled as the most significant the organlsation faces: Risk Actions taken to address the rlsk Recruitment and retention We recognlse that if we fail to have the competitlve salary and benefits package, together with the right culture, we may be unable to deliver ServIS in a challenging recruitment market. We moved closer to becoming a London Llving Wage employer; for the first time this was achieved for staff worklng at the Sutton scheme in Surrey. We have developed pay bands and are working on developing a job evaluatlon framework, making Servol more competitlve witli salaries. Financial Sustainability We recognise that if we fail to cultlvate a diverse portfollo of income streams, supported by robust capital resenies, we cannot deliver long-term financial stability. Our current phase of strategic growth is designed not only to strengthen Servol's financial position, but to embed the resilience needed to sustain and expand our Impact well into the future. Our support contracts remain under significant financial pressure, as revenue growth continues to lag behind the escalating costs driven by increases in the Living Wage and inflation. In response, we have intensified our efforts on rigorous cost control, Implementlng robust housing management practices to mlnlmlse vold periods, and stngthenIng arrears recovery prO$se$ to safeguard Income. Health and Safety We acknowledge that deficiencies in health and safety systems, processes policies, or staff awareness can significantly increase the risk of serious Incidents, accidents, and work- related I Ilnesses. We commlssloned an Independent review of our health and safety at our properties, providing valuable insights that have enabled us to accelerate the completion of our Flre Rlsk Assessments. In addition, we have enhanced the capablllty of our support staff through targeted training, equipplng them with greater knowledge and awareness of health and safety requirements to strengthen compllance and redu risk across the or anisation. Page 111
Servol Community Services Report and flnancial statements for the year ended 31 March 2025 REPORT OF THE TRUSTEES Risk Actions taken to address the risk IT Security We recognlse that inadequate IT infrastructure Increases vulnerability to cyberattacks, fraud, hackingi and system failures, any of whlch could compromlse operational contlnuity. We have achieved a "Standards Met" ratlng In our Data Security and Protectlon Toolkit assessment and have recently secured Cyber Essentials accreditation. Mobile phones and computers have been upgraded to strengthen security and performance. The Trustees have undertaken a revlew of Servol's Organlsation's internal control framework, assesslng the effectiveness of existlng measures and weighing the cost of maintaining speclflc controls against the benefits they deliver. These systems are structured to provide reasonable, though not absolute, assurance against material mlsstatement or loss. Key elements Include: A strategic plan and annual budget formally approved by the Trustees. Regular monitoring by the Trustees of flnancial performance, budget VarIanS, and non-financlal performance indicators. Clear delegation of day-to-day rnanagement authority, supported by appropriate segregation of dutles. Legal and Organisational Structure Servol Cornmunity Services exists to deliver high quality mental health care and support, improvlng Ilves and building stronger communities. Our work is underplnned by a clear legal and governance framework that ensures transparency, accountabillty, and alignment with our charitable purpose. Servol is registered as a charitable company Ilmlted by guarantee. It operates In accordance with its Articles of Assoclation and is guided by the objectives and powers set out in Its Memorandum of Association. In keeping with this structure, the liability of each member who also serves as a Trustee is strictly limited to £1. Thls framework safeguards the organisatlon whlle ensuring all resources are dlrected towards our mission. To further support our charitable objectlves, Servol owns and operates Servol Trdding Llmited, a wholly owned subsidiary. This entity generate5 income, which is reinvested into the charity's work, helping us to extend our reach, enhance service quallty, and remaln financially resilient. Thls structure ensures that Servol remalns both mission-driven and well-governed, enabllng us to focus on what matters most: delivering exceptional support to those who need it most, now and in the future. Employees Servol is committed to creating an outstandlng workplace where employees feel valued, supported, and empowered to grow both professionally and personally. We actively provlde opportunities for learning and development, ensurlng our people have the tools and knowledge to excel In their roles. Employees are engaged in shaping our corporate Page 112
Servol Community Services Report and financial statements for the year ended 31 March 2025 REPORT OF THE TRUSTEES strategies and objectives, fostering a sense of shared ownership and purpose. We also maintain a continuous focus on evaluating how effectively we manage, support, and involve our workforce, ensuring their voices remain ntral to our organisational progress. Engagement with employees Over the past 12 months, Servol has strengthened its commltment to valuing colleagues and embedding our core values within our organisational culture. We have worked to ensure our people remaln well-informed about developments across the organlsatlon and that their perspectives are meaningfully considered in decision-making processes. Our employee awards programme continued to celebrate individuals whose contributions exemplify our values in action. The results of our annual staff survey provided valuable insight, enabllng us to recognise and lebrate areas of significant progress whlle also Identifying opportunities for further improvement. This ongoing dialogue beeen leadership and staff has not only enhanced transparency but has also deepened engagement and a shared sense of poSe. Pensions As a responsible employer, Servol Is commltted to supportlng the long-term financlal securlty of our colleagues. We continue to operate a workplace pension scheme through NEST Pension, ensuring all eligible employees have access to a rellable and regulated means of saving for their future. Leadership and Management Strong leadershlp and effective governance are the foundation of Servol's success. At the strategic helm, our Board of Trustees brings vision, accountability, and a deep commitment to our mission. Guided by the Chalr, and comprising a further seven Trustees wlth expertise in finance, academla, houslng, and governance and offender management, the Board's diverse mlx of backgrounds and perspectives ensures decisions are grounded in both professional insight and the lived realitles of the communitles we serve. Thelr collective leadershlp has driven year-on-year growth, secured financial stability, met cost Improvement targets, and consistently enhanced the quallty of our services. Whlle the Board sets the strategic directlon, operatlonal excellence Is delIved by our Senior Management Team. This results-driven group is made up of the Chief Executive Officer, Dlrector of Services, Head of Operations and Head of Finance and Corporate Services, transforms strategy into day-to-day Impact. Brlnglng together deep sector expertise, operational know-how, and a shared passion for making a difference, they lead wlth clarity, agility, and purpose. RemLJneration for this team is reviewed annually and benchmarked against comparable charities in the West Midlands, ensurlng falrness, competitiveness, and alignment with the exceptional responsibilitles they shoulder. A key fixture in our governan calendar Is the annual Board Awayday-a dedicated forum for in-depth reflection, innovation, and forward planning. In 2024125, the session focused on refining the 2025/26 strategic business plan considering emerglng challenges, such as the continued limited finances when it comes to uplifts in contracts. The Awayday enabled the Board to set bold prlorltles: expanding and enhancing services, diversifying into new areas of work, increasing housing stock to support growth, and generating more unrestricted income. Together, the Board of Trustees and Senior Management Team form Page113
Servol Community Services Report and financial statements for the year ended 31 March 2025 REPORT OF THE TRUSTEES a leadership partnership that Is both visionary and hands on ensurlng Servol remains resilient, forward-lookingi and committed to making a lasting Impact on the lives of those we serve. Trustees The directors of the company, for the purposes of company law, are also the Trustees and they oversee and dlrect strategy. The following Trustees served during the year: Trustee G Branch L Found A Grant A Howell K Jackson R Smlth V Taylor R Zitola Role Board Chair Subcommittee Quallty and Safety Commlttee Quality and Safety Committee Quality and Safety Committee Quality and Safety Committee Finance Commlttee Finance Commlttee Flnance Committee Subcommlttee Chair Subcommittee Chair Statement of Trustees. Responsibilities The Trustees, who also act as the charlty's directors under company law, are responsible for preparing the Trustees, Report and flnanclal statements each year In Ilne wlth UK law and accountlng standards. They must ensure these statements give a true and falr vlew of Servol's finances-showing its income, how resources have been used, and its overall financial posltlon. To meet this duty, the Trustees: Choose suitable accounting policies and apply them consistently. Follow the Charities SORP and UK accounting standards. Make careful and reasonable judgements and estimates. Prepare the statements on a -golng COnrn. basis unless they belleve Servol cannot continue operatlng. They are also responsible for keeplng accurate financial records, safeguarding the charlty's assets, and taklng reasonable steps to prevent and detect fraud or other irregularities. Disclosure of Inforniation to auditor At the time of approving thls report, each Trustee has confirmed that, to the best of their knowledge, all relevant audit information has been shared with the charlty's audltor. They have also confirmed that they have taken all reasonable steps to Identify such informatlon and to ensure the auditor is fully infonned. Audltors A resolutlon to reappoint HB&O Ltd as the Company's extemal auditor will be proposed at the forthcomlng Annual General Meeting. Page114
Servol Community Services Report and financial statements for the year ended 31 March 2025 REPORT OF THE TRUSTEES Funds held as custodlan At 31 March 2025 Servol held funds totalling £120,643 on behalf of service users. The transactlons and assets assocSated with residents, funds are accounted for separately and are not included within the financial statements of Servol. Residents, funds are held In separate bank accounts and speclfic controls are in place to safeguard these funds. Going concern After making approprlate enquiries, the trustees have a reasonable expectation that Servol has adequate resources to continue in operational existence for the foreseeable future. It therefore continues to adopt the going concem basls In preparing the financial statements. Appreciatlon & Thanks We extend our heartfelt thanks to all who have stood alongside Servoli year after year, in support of our mission. To our stakeholders, your encouragement and commitment have been instrumental in enabling us to deliver life-changing support to those who need It most. To our funders, we are deeply grateful for your belief in our work and your investment In the vital ServIS we provide. Your tnjst empowers us to continue making a difference. We also wish to acknowledge the dedication of the Mental Health Teams In Blrmingham and London, whose close partnership with our sLaff helps us to provide the highest quality of care to our service users and communitles. It Is through this shared commltment that we are able to achieve so much together. As we look ahead to 2025/26, we do so with gratitude, optimism, and the confidence that, with your contlnued support, we will build an even stronger future for the people we serve. Approved by order of the Board of Trustees on 25th September and signed on Its behalf by: Phlllp Gayle Company Secretary Page 115
Servol Community Services Report and financial statements for the year ended 31 March 2025 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVOL COMMUNITY SERVICES Opinion We have audlted the flnancial statements of Servol Community Services (the 'parent charitable company,) and its subsidiary (the 'group') for the year ended 31 March 2025 whlch comprlse the consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charitable Company Balance Sheet, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of signlflcant accounting policies. The financial reporting framework that has been applled In their preparation is applicable law and United Kingdom Accounting Standards, Including Flnanclal Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Pract1). In our opinion the financlal statements: give a true and falr vlew of the state of the group's and parent charitable company's affairs as at 31 March 2025 and of the group's incoming resources and application of resources, Includlng its income and expenditure, for the year then ended; have been properly prepared in accordance with Unlted Klngdom Generally Accepted Accounting Practice. and have been prepared in accordance with the requlrements of the Companles Act 2006. Basis for opinion We conducted our audit in accordan with Intematlonal Standards on Audlting (UK) {ISAs (UK)) and appllcable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the flnanaal statements section of our report. We are independent of the group and charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statemp_nts in the UK. includlng the FRC'S Ethical Stsndard, and we have fulfilled our other ethical responsibilities in accordance wlth 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 golng concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basls of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identlfied any material uncertalntles relatlng to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charitable company's ability to contSnue as a going concern for a period of at least twelve months from when the flnanaal statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to golng concern are descrlbed In the relevant sections of thls report. other information The other Information comprises the informatlon included in the Report of the Trustees, other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information. Our oplnion on the financial statements does not cover the other informatlon and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Page116
Servol Community Services Report and financial statements for the year ended 31 March 2025 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVOL COMMUNITY SERVICES Our spOnSIbIlity is to read the other Infomiation and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtalned in the audit or otherwise appears to be materially misstated. If we identify such material inconslstencies 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 mlsstatement of this other information, we are required to report that fact. We have nothlng to report in this regard. Oplnlons on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audlt: the informatlon given in the Report of the Trustees, which includes the strategic report and the directors. report for the purposes of company law, for the financial year for whlch the financial statements are prepared Is conslstent with the flnanclal statements. and the strategic report and directors, report included within the Report of the Trustees have been prepared in accordance with appllcable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and parent charltable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the followlng matters where the Companies Act 2006 requlres us to report to you if, in our opinlon: adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been recelved from branches not visited by us. or the parent charitable company's financlal statements are not in agreement with the accountlng records and returns. or certaln disclosures of trustees, remuneration specified by law are not made. or we have not ceiVed all the information and explanations we require for our audlt; or the trustees were not entlded to take advantage of the small companles, exemption from the requirement to prepare a Strategic Report or In preparing the Report of the Trustees. Responsibilities of trustees As explained more fully in the Statement of Trustees, ResponslbllSties set out on page 14, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation or the flnancial statements and for belng satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assesslng the group and parent charitable company's ablllty to continue as a going COnrn, dlsclosingi as Page | 17
Servol Community Services Report and financial statements for the year ended 31 March 2025 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVOL COMMUNITY SERVICES applicable, matters related to going concern and uslng the going concern basis of accounting unless the trustees either intend to Ilquldate the group or parent charitable company or to cease operations, or have no reallstlc alternatlve but to do so. Auditor responsibilitles for the audlt 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 auditorfs report that inc.ludeq oijr opinion. Reasonable assLJrance Is a hlgh 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. Mlsstatements can arlse from fraud or error and are considered material If, Indlvldually or in the aggregate, they could reasonably be expected to influence the economic declslons of users taken on the basis of these financial statements. Irregularities, including fraud, are Instances of non-compliance with laws and regulations. We design procedures In Ilne with our responsibilities, outlined above, to detect material mlsstatements In respect of Irregularities, including fraud. The extent to which our procedures are capable of detectlng irregularities, including fraud is detalled below: The audit process includes an assessment of the group and parent charitable company's rlsk envlronment, through enquiry of and dlscusslon with management and those charged wlth governance, Including an assessment of any key laws and regulations with which the group and charitable company must comply In the ordinary course of its operatlons. Addltlonally, the overall risks of irregular transattions occurring are assessed following our observations and confirmation of the design and implementatlon of management's controls. Whi15t we are mindful of these risks, our audit focus Is geared towards the risk of material mlsstatement in the financial statements as a whole. As such, our procedures cannot guarantee that all transactions have been fully compliant with all relevant laws and regulations, includlng those regulations relating to fraud, as our procedures are not designed to detect all Instances of non-compllance. By definition, the risk of our detection of non-compl5an Is greater where compliance with a law or regulatlon is removed from the events and transactions reflected in the financlal statements, The risk Is also greater regarding irregularltles due to fraud rather than error, as fraud involves intentlonal concealment, forgery, collusion, omlsslon or misrepresentation. A further descrlptlon of our responsibilitles for the audit of the financlal statements is located on the Financial Reportlng Council's website at: htt www.frc.or libra standar s-codes- oli ssurance-and- ethics auditors-res onsibilities-for-the-audi This descrlptlon fonns part of our auditor's report. Use of our report Thls report is made solely to the charitable company's members, as a bodyi in accordance wlth 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 thern In an auditors, report and for no other purpose. To the fullest extent permltted by law, we do not accept or assume responsibillty to anyone other than Page 118
Servol Community Services Report and financial statements for the year ended 31 March 2025 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVOL COMMUNITY SERVICES the charitable company and the charitable company's members as a bodyi for our audit work, for this report, or for the opinions we have fonned. Gregg Olner MPhil BA (Hons) FCA (senior Statutory Auditor) for and on behalf of HB&O Ltd Chartered Accountants and Statutory Auditors Seven Stars House I Wheler Road Coventry CV3 4LB Date: 25 September 2025 Page 119
Servol Communlty Services Report and financial statements for the year ended 31 March 2025 CONSOLIDATED STATEMENT OF FINANCIAL AcnvInES (INCLUDING THE INCOME AND EXPENDITURE ACCOUNT) 2025 Total funds 2024 Total funds Unrestricted fvnds Designated funds Restricted funds Note Income and endowments from: Donatlons and grants Charitable actlvltles Investment Income 109 3,559,859 13,970 3,573,938 27.794 64,001 27,903 3,623,860 13,970 3,665,733 3,309,361 25,336 3,334,697 91.795 Expendlture on: Charltable activities Other expenditure 3,468,830 8,108 66,952 75.060 91,795 3,568,733 66,952 3.635.685 3,360,486 3,468.830 91,795 3,360,486 Net gains on investments 158,810 Net Income/(expenditure) 105.108 (75,060) 30.048 133.021 Transfers between fvnds 19 (20,380) 20,380 Net movement In funds 84.728 (54,680) 30,048 133,021 Reconclllatlon of funds Total funds brought forward Total funds carrled forward 106,782 191,510 497,847 443,167 604,629 634,677 471,608 604,629 19 Servol Community Services uses the exemption in s408 of the Companles Act 2006 from presentlng a separate income and expendlture account for Servol Communlty Services as a separate entity. The net Income for Servol Communlty Services alone for the year to 31 March 2025 was £114,244 (2024: net expenditure £9,168) and the total funds movement in the year was £114,244 (2024: negative £9,168). The notes on pages 24 to 40 form part of these flnanclal statements. Page120
Servol Communlty Services Report and financSal statements for the year ended 31 March 2025 CONSOLIDATED BALANCE SHEEr 2025 2024 Note Ftxed assets Investment property Tangible fixed assets io li 415,663 27,504 443,167 395,000 102,847 497,847 Current assets Debtors Cash and cash equivalents 13 557,953 359,142 917,095 461,978 245,166 707,144 Creditors.. amounts falllng due within onÈ year 14 {716,418) (581,195) Net current assets 200,677 125,949 Total assets less current Ilabilltles 643.844 623,796 Credltors: amounts falllng due after more than one year 15 (9,167) (19,167) Total net assets 634,677 604,629 Funds Unrestricted funds Restrlcted funds Total funds 634,677 604,629 19 634,677 604,629 These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorised for Issue on 25th September 2025 and were signed on its behalf by: Chalr of Trust00S Georye Branch Page121
Servol Community Services Report and financial statements for the year ended 31 March 2025 CHARITABLE COMPANY BALANCE SHEET 2025 2024 Fixed assets Investment property Tangible fixed assets Investment in subsldlarles io li 12 415,663 27.504 395,000 102,847 443,174 497,854 Current assets Debtors Cash and cash equivalents 13 604,936 147,823 752,759 346,373 245,166 591,539 Creditors: amounts falling due within one year 14 (610,082) (607,786) Net current assets/{Ilabllltles) 142,677 (16,247) Total assets less current Ilabilities 585,851 481,607 Credltors: amounts falling due after more than one year 15 (9,167) (19,167) Total net assets 576,684 462.440 Funds Unrestricted reserves Restricted reserves Total funds 576.684 462,440 19 576,684 462,440 These financial statements have been prepared in accordance with the provisions applicable to charltable companies subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on 25th September 2025 and were signed on its behalf by: Chalr of Trustees George Branch Page122
Servol Community Services Report and financial statements for the year ended 31 March 2025 CONSOLIDATED STATEMENT OF CASHFLOWS 2025 2024 Note Cash flows from operatlng actlvlties Net cash provided by/ (used in) operating activities 20 139,178 (7,068) Cash flow from investlng activltles Purchase of tanglble fixed assets Purchase of investment property Interest and rent from Snvestments Net cash used in investing activities (8,509) (20,663) 13,970 (15.202) (3,43 1) (53,280) 25,336 {31,375) Cash flow from financing artivities Loan repayments in year Net cash used in flnanclng actlvities (10,000) {io,000) (7,872) (7,872) Change in cash and cash equivalents in the reporting period 113.976 (46.315) Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period 245,166 291,481 359,142 245,166 Page 123
Servol Community Services Report and financial statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL STATEMENTS l. Legal status Servol Community Services is a charitable company Ilmited by guarantee, Incorporated and domiciled In England and Wales and registered with Companies House and the Charlty Commlssion. The charitable company's reglstered office is 51 Pinfold Street, Blrmingharn, England, B2 4AY and Its principal place of business is 18 Bennetts Hill, Blmiingham, England, 82 5QJ. 2. Accounting policies Basis of accounting The financial statements have been prepared in accordance wlth the Charities SORP (FRS 102) Accountlng and Reporting by Charities: Statement of Recommended Practlce applicable to charities preparing thelr accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019), the Financlal Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Seniol Community Services meets the definition of a publlc benefit entity under FRS 102. Assets and Ilabllltles are initially recognlsed at historical cost or transactlon value unless otherwise stated in the relevant accounting policy. Going concern The financial statemcnts have been prepared on a going concern basls as the Trustees b@Ileve that no materlal uncertalntles exist, a view that has in part been informed by the additlonal work generated since the year end, In Ilne with the charlty's strategic plan. The Trustees have considered the level of funds held and the experted level of income and expenditure for the 12 months from authorising these flnanc5al statements and concluded that the charity has adequate resources to continue operating as a going concern. Basis of consolidation These flnancial statements consolidate the results of the charlty and its wholly owned subsidiaryi Servol Trading Limited for the year ended 31 March 2025. Income All income is recognised, net of value added tax, once the Charitable Company has entitlement to the Income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Grants are Included in the Statement of Flnancial Activlties on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income Is received in advance of entitlement of receipt, its recognltlon is deferred and included in creditors as deferred Income. Where entitlement occurs before income Is received, the Income is accrued. Income tax recoverable In relation to investment income is recognlsed at the tlme the investment Income is receivable. Page | 24
Servol Community Services Report and financial statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL STATEMENTS Other Income is recognised in the period In whlch It Is recelvable and to the extent the goods have been provided or on completion of the servi. Expenditure Expenditure Is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic beneflts wlll be requlred In settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each acttvity are made up of the total of dlrect costs and shared costs, Includlng support costs involved in undertaking each activlty. Direct costs attrlbutable to a single activity are allocated dlrectly to that actlvlty. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportloned between those activities on a basls conslstent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portlon of the asset's use. Support costs are those costs incurred directly in support of expenditure on the objects of the company. Governance costs are those incurred in connection with administration of the charitable company and compliance with constitutional and statutory requlrements. All expendtture is incluslve of Irrecoverable VAT. Tangible fixed assets and depreciation Tangible fixed assets costlng £1,000 or more are capitalised and recognised when future economlc benefits are probable and the cost or value of the asset can be measured reliably. Tanglble fixed assets are initially recognised at cost. After cOgnItIon, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to brlng a tanglble fixed asset into its intended working condition should be Included In the measurement of cost. Depreclatlon Is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives on the following bases: using the stra5ght-line and reducing balance methods: Long-term leasehold property - over the lease term Fixtures and fittings - IO% reducing balance Offlce equipment - 33% straight line Investments Fixed asset Investments are stated at cost, less impairment. Investment property Investment property is carried at fair value determined annually by elther external valuers or the trustees and is derived from the current market nts and investment property yields for comparable real estate, adjusted if necessary for any differences In the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognlsed in the Statement of Financial Activities. Page | 25
Servol Community Services Report and flnancial statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL sfATEMENTS Fund accounting General funds can be used In accordan wlth the charitable objectives at the discretion of the trustees In furtherance of the general objectives of the Charltable Company and whlch have not been designated for other purposes. Restrlcted funds can only be used for particular restricted purposes within the objects of the charity. Restrictlons arlse when speclfled by the donor or when funds are raised for partlcular restricted purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for partlcular purposes. Pensions The group and charitable company operate a defined contribution pension scheme. Contributions payable to the group's and charitable company's penslon scheme are charged to the Statement of Financial Activities in the perlod to which they relate. Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade dlscounts due. Cash at bank and in hand Cash at bank and in hand includes cash and short-temi hlghly Ilquid Investments with a short maturity of three months or less from the date of acquisition or opening of the deposlt or simllar account. Liabilities Llabilltles are recognised when there Is an obllgatlon at the Balance sheet date as a result of a past event, it Is probable that a transfer of economSc benefit will be required in settlement, and the amount of settlement can be estimated reliably. Liabilities are recognlsed at the amount that the Charltable Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or servlces it must provide. Financial instruments The group and charitable company only have financlal assets and financlal Ilabllitles of a kind that qualify as baslc financial instruments. Basic financlal instruments are initially recognised at transactlon value and subsequently measured at their settlernent value wlth the exceptlon of bank loans whlch are subsequently measured at amortlsed cost using the effective interest method. Operating leases Beneflts received and re1vable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the tlme pattern of the lessee's beneflt from the use of the leased asset. Page126
Servol Community Services Report and financial statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL STATEMENTS Rentals payable on operating leases are charged on a straight-line basis over the lease term. Tax The charity Is considered to pass the tests set out in Paragraph I Schedule 6 Finance Act 2010 and therefore it meets the deflnition of a charitable company for UK corporation tax purposes. As such, It does not have liability to corporation tax in the course of its normal charitable activities. 3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY Estimates and judgements are contlnually evaluated and are based on hlstorlcal experience and other factors, Including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions: The group and charltable company make estSmates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by deflnltlon, seldom equal the related actual results. The estlmates and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next flnanclal year are discussed below. Critical areas of judgement: Investment property The financial statements include an investment property held at valuation, whlch Is a slgnlficant estimate. In order to arrlve at a reliable estimate, the trustees may make use of professional valuers. However, significant changes to the assumptions underlying the valuer's or the trustees, calculations, or slgnificant changes in market conditions could result in significant changes to the carrying value of investment property over the next financial year. Depreclation Depreciation Is charged against assets so as to write them down to thelr residual value at the end of their useful Ilves. At each reporting date the group and charitable company assesses whether there is any indication of impairment or deviation from the expected useful Ilves. If such indication exists, the recoverable amount of the asset is determined to be the higher of Its fair value less costs to sell and its value in use, An impairment loss Is recognised where the carrying amount exceeds the recoverable amount. Provlsion for doubtful debts The group and charitable company provides against doubtful debts based on the ageing and nature of the debts and the rlsk proflle of those debts. Thls Is a change from last year where the provlsion was calculated on a case-by-case basis. Page127
Servol Community Services Report and financial statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL STATEMENTS 4. Comparatives for the consolidated statement of financial activities 2024 Total funds Unrestricted fiJnds Designated funds Restricted funds Note Income and endowments from: Donations Charitable activities Investment income 2,587,039 25,336 2,61Z,375 31,107 2,618,146 25,336 2.734,234 31.107 Expenditure on: harltable actlvities Other expenditure 2.756,886 23.098 31,476 2,811,460 2,756,886 23,098 31,476 2,811,460 Net gains on Investments 158,810 158,810 Net income/(eXnd1tUrfj) (144.511) 135,712 (369) (9,168) Transfers between funds (56,711) 56,711 Net movement In funds {201,222) 192,423 (369) (9.168) Reconclliatlon of funds Total funds brought forward Total funds carried forward 165.815 106.782 305,424 497.847 369 471,608 604,629 Page 128
Servol Communlty ServSces Report and financial statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL STATEMENTS 5. Analysis of income 2025 Total funds Unrestricted funds Deslgnated funds Restricted funds Donations Gifts and donations 109 109 27,794 27,794 27,903 27,903 Charitable artivities Community and residential care: Local Authoritles CCG/ICB other 2.137.865 1.288,604 133,390 3,559,859 2,137,865 1,352,605 133,390 3,623,860 64,001 64,001 Investment income Bank interest Investment property rent 1,989 11,981 13.970 1,989 11,981 13,970 Total income 3.573,938 91,795 3,665,733 2024 Total funds Unrestricted funds Designated funds Restrltted funds Donations Gifts and donations Charitable Activities Community and residential care: Local Authorities - CCG/ICB - Grants 2,727,434 550,645 175 3,278,254 2,727,434 550,645 31,282 3,309,361 31,107 31.107 Investment Incame Bank interest Investment property rent Other 1,676 13,052 10,608 25.336 1,676 13,052 10,608 25,336 Total incorne 3.303.590 31,107 3,334,697 Page129
Servol Communlty Services Report and financlal statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL sfATEMENTS 6. Expenditure on charitable activities Dlrect costs Support costs 2025 Community and residential care 3.430,994 3,430,994 204,691 204,691 3,635,685 3,635.685 Direct Costs Support costs 2024 Community and resldential care 3,243,721 3.243,721 116,765 116.765 3,360,486 3,360,486 7. Support costs Community and resldentlal care 2025 Management Governance 173,420 31,271 204,691 173,420 31,271 204,691 Community and resldentlal ¢are 2024 Management Governance 103,497 13,268 116,765 103,497 13,268 116,765 Page130
Servol Community Services Report and financial statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL sfATEMENTS 8. Net income Net Income Is stated after charging: Group and CharitJble Company 2025 2024 Depreciation of tangible fixed assets operating lease rentals land and bulldings vehicles and other equipment 75,060 23,098 107,553 1,670 95,493 Auditors, remuneratlon audit fee tax admlnlstratlon other services 10,000 3,000 1,500 9,000 9. Employees and Trustees Average monthly number of employees during the year: Group and Charitable Company 2025 No. 2024 No. Care and support Administration 82 88 89 96 Employee costs Group and Charitable Cornpany 2025 2024 Wages and salaries Social securlty costs Penslon costs 2,156,924 189,880 45,015 391,819 2,112,843 173,293 39,621 2,325,757 Page 131
Servol Community Servlces Report and financial statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL STATEMENTS Senior management team The full-time equivalent number of staff who recelved remuneration (excludlng employer pension contrlbutlons) of £60,000 or more (excluding company dlrectors and includlng the senior management team) was as ft>llows: 2025 No. 2024 No. £60,000 to £70,000 The aggregate remuneration of the Senior Management Team, includlng pension contributlons, amounted to £276,367 (2024: £302,846). Durlng the year, In accordance with the provisions of the Charlty's articles of assoclatlon, five (2024: flve) of the Trustees received remuneration for their ServIS to the organisation and attendance at board meetlngs. One Trustee (2024: one) was reimbursed office expenses during the year totalling £233 (2024: £161). Name Remunerdtlon type 2025 2024 G Branch V Taylor A Grant K Jackson A Howell Board remuneration Board remuneration Board remuneratlon Board remuneration Board remuneration 4,375 2,500 2,500 2,500 2,500 14,375 3,500 2,500 2,500 2,500 1,250 12,250 10. Investment property Group and charitable company Fair value At l April 2024 Addltlons 395,000 20,663 415.663 At 31 March 2025 The property was valued by the Board of Trustees on 31 March 2025. Page 132
Servol Community Services Report and financlal statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL STATEMENTS 11. Tangible fixed assets Group and charitable company Fixtures and flttlngs Computer systems and equlpment Leasehold buildlngs Total Cost At l April 2024 Addltlons Disposals At 31 March 2025 55,975 82,872 5.769 196,783 2,740 (199,523) 335,630 8,509 (208,315) 135,824 (8,792) 47,183 88.641 Depreciation At l April 2024 Charged in year Disposals At 31 March 2025 19,061 4,365 81,151 3,743 132,571 66,952 {199,523) 232,783 75,060 (199,523) 108,320 23.426 84.894 Net book value At 31 March 2025 23,757 3,747 27,504 At 31 March 2024 36,914 1,721 64,212 102,847 12. Investments in subsidiaries Charitable company 2025 2024 Cost and net book value At 31 March 2025 the Charity held more than 200h of the allotted share capitsl of the followlng undertaklng: Country of Incorporatlon Class of share ¢apital Proportlon owned Nature of business Servol Trading Mited UK Ordlnary loo% Residentlal care servlces Servol Trading Limited's registered company number is 14287388. For the period to 31 March 2025 it had gross income of £713,019 (2024.. £691,215), expenditure of £657,215 (2024: £549,027) and profit of £55,804 (2024: £142,188). At 31 March 2025 the company had assets Page133
Servol Community Services Report and financial statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL STATEMENTS of £236,165 (2024: £242,250), liabilities of £178,166 (2024: £100,055) and capltal and reserves of £57,999 (2024: £142,195). 13. Debtors Group 2025 Charitable Company 2025 2024 2024 Due wlthln one year Trade debtors Less.. Provislon for bad and doubtful debts Amount due from Subsidiary undertaking Other debtors Prepayments and accrued income 479,729 (36.456) 486,205 (80,744) 454,881 (36,456) 71.831 370,600 (80,744) 20,450 36,067 461,978 20,450 36,067 346,373 114,680 557.953 114,680 604,936 14. Creditors: amounts falling due within one year Group 2025 Charitable Company 2025 2024 2024 Debt (note 17} Trade credltors Amount due to subsidiary undertaklng Corporatlon tax Other taxation and social security other creditors Accruals and deferred income 10,000 109,718 10,000 148.830 10,000 IOD,830 10,000 148,830 126,645 513 513 148,188 74,826 373,173 716.418 148,635 57,fA6 215,571 581.195 51,253 74,826 373,173 610.082 49,094 57,646 215,571 607,786 15. Creditors: amounts falling due after more than one year Group 20Z5 Charltable Companv 2025 2024 2024 Debt (note 17) 9,167 9,167 19,167 19,167 9,167 9.167 19,167 19,167 Page134
Servol Communlty Services Report and flnanclal statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL sfATEMENTS 16. Deferred income 2025 2024 At l April Resources deferred during the year Released to income during the year At 31 March 93,997 263,442 (93,997) 263.442 88,207 93,997 (88,207) 93.997 Deferred income represents service user income billed in advance. 17. Debt analysis Borrowings Group and Charitable Company 2025 2024 Due wlthin one year ank loans 10.000 10,000 Due between one and two years Bank Loans 9,167 10,000 Due between two and five years Bank Loans 9,167 Total borrowings 19,167 29,167 The charitable company received a £50,000 boun back loan In February 2021. The loan is repayable in equal instalments beginning in March 2022. The interest rate is flxed at 2.5% over the term of the loan wlth the first 12 months of interest being paid by the UK Government. 18. Pensions The group and charitable company operate a defined contribution pension scheme. The assets of the scheme are held separately from those of the group and charitable company in an independently administered fund. The pension cost charge represents contributions payable by the group and charltable company to the fund and amounted to £45,015 (2024: £39,621). Contributions totalling £20,751 (2024: £8,878) were payable to the fund at the balance sheet date and are included in creditors Page135
Servol Community Services Report and financial statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL STATEMENTS 19. Movement in funds Group At l Aprll 2024 Income Expendlture Transfers Galns/ (losses) At31 March 2025 Unrestricted fund$ General fund Deslgnated fund 106,782 497,847 604.629 3,573,938 (3,468,830) {75,060} (3,543.890) (20,380) 20,380 191,510 443,167 634,677 3,573,938 Restrirted funds Project funds 91,795 91.795 (91,795) (91,795) Total fund$ 604.629 3,665,733 (3,635,685) 634,677 The purpose of the designated fund Is to reflect the value of fixed assets at the balance sheet date which represents reserves which are not cash backed. At l April 2023 Income Expendlture Transfers Gains/ (losses) At31 March 2024 Unrestricted funds General fund Designated fund 165,815 305,424 471,239 3.303,590 (3,305,912) (23,098) (3.329,010) (56,711) 56,711 106,782 497.847 604,629 158,810 158,810 3.303.590 Restrfcted funds Project funds 369 369 31,107 31.107 (31,476) (31.476) Total funds 471.608 3.334.097 (3,360.480) 158,810 604,629 Page | 36
Servol Community Services Report and financial statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL sfATEMENTS Analysis of assets and liabilities representing funds Unrestricted Restricted Total Tanglble fixed assets Investments 27,$04 415,663 917,095 (725,585) 634,677 27,504 415,663 917,095 {725,585) 634,677 Current assets Llabilltles At 31 March 2025 Unrestrlcted Restrlcted Total Tanglble flxed assets Investments Current assets Liabilities At 31 March 2024 102,847 395,01)0 707,144 (600,362) 604,629 102,847 395,000 707,144 (600,362) 604,629 Charitable company At l April 2024 Income ExPendIre Transfers Galns/ (losses) At31 March 2025 Unrestricted funds General fund Designated fund (35,407) 497,847 462,440 3,507,172 (3,317,868) {75,060) {3,392,928) (20,380) 20,380 133,517 443,167 576,684 3,507,172 Restrl¢ted funds Project funds 91,795 91.795 (91,795) (91.795) Total funds 462.440 3.598.967 {3.484.723) 576,684 The purpose of the designated fund is to reflect the value of fixed assets at the balance sheot date which represents reserves which are not cash backed. Page 137
Servol Community Services Report and financial statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL STATEMENTS At l April 2023 Income Expenditure Transfers Galns/ (losses) At31 March 2024 Unrestrlcted funds General fund Designated fund 165,815 305,424 471,239 2,588,577 (2,733,088) (23,098) (2.756.186) (56,711) 56.711 (35,407) 497,847 462,440 158,810 158,810 2,588,577 Restrfcted funds Project funds 369 369 31,107 31.107 (31,476) (31,476) Total fund5 471.608 619,684 (2,787,662) 158,810 462,440 Analysis of assets and liabilities representing funds Unragtrlcted Restricted Total Tangible fixed assets Investments Current assets Llabllltles At 31 March 2025 27,504 415.670 752,759 (619,249) 576,684 27,504 415,670 752,759 (619,249) 576,684 Unrestricted Restrfcted Total Tanglble fixed assets Investrnents 102,847 395,007 591,539 {626,953) 462.440 102,847 395,007 591,539 (626,953) 462,440 Current assets Liabilitie5 At 31 March 2024 Page138
Servol Community Services Report and financial statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL STATEMENTS 20. Cash flow from operating activities 2025 2024 Net income for the reporting period 30,048 133.021 Adjustments for: Depreclation of tangible fixed assets Other adjustment to tangible fixed assets Galns on investments Interest and rent from investments Increase in debtors Increase in creditors 75,060 8,792 23,098 {158,810) (25,336) (163,294) 184,253 (13,970) (95,975) 135,223 Net cosh provided by/(used in) operations 139,178 (7,068) Analysis of changes in net funds At l April 2024 Cash Flow Non cash changes At 31 March 2025 Cash and Cash Equivalents Cash at bank and in hand 245,166 245,166 113,976 113,976 359,142 359,142 Borrowlngs Due wlthin l year Due after l year (10,000) (19,167) (29.167) 10.000 {io,000) 10,000 (10,000) (9,167) (19,167) 10,000 Net cash 215,999 123,976 339,975 Page139
Servol Community Services Report and financial statements for the year ended 31 March 2025 NOTES TO THE FINANCIAL STATEMENTS 21. Operating lease commitments The charitable company and group's future mlnlmum operatlng lease payments are as follows: Group and Charitable Company Bulldlngs other 2025 2025 2024 2024 Within one year Between one and five years 58,125 79,301 137,426 44,044 137,426 181,470 6.680 11,691 18,371 22. Related parties P Gayle, CEO of the charlty, Is also Chair of Blrmlngham and Sollhull Mental Health Foundation Trust (BSmH). As a charity, Servol Community Services in turn has a contract wlth BSmH. BSMHFf work in partnership with The Integrated Care Board (ICB) as part of the Birmingham and Sollhull Integrated ca System (ICS), whlch brlngs together the local NHS, councils and the voluntary, community and faith sector to achieve better outcomes for citlzens across the area. Together, all of the ICS'S partner organisations work In collaboration, building further on what has been achieved through integrated working so far. The value of the contract to dellver servlces was £458,617 in 2025 (2024: £551,202). Other than the transartions above and the trustee related transactlons as shown in note 9, there were no other related party transactlons for the year ended 31 March 2025. Page140
Servol Community Services Report and financial Statements for the year ended 31 March 2025 Registered Office 51 Pinfold Street Blrmingham 82 4AY Auditors HB&O Ltd Chartered Accountants and Statutory Auditors Seven Stars House I Wheler Road Coventry CV3 4LB Bankers Barclays Bank PIC 351-359 Soho Road Birmingham B21 9SE Page141