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2022-03-31-accounts

Registered Charity in England & Wales 1128532 Registered Charity in Scotland SC044074 Company number: 06396577

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

CONTENTS

Page
Reference and administrative details 1
Trustees' report 2-8
Trustees’ responsibilities 9
Auditors' report to the trustees 10 - 13
Statement of financial activities 14-17
Balance sheet 18-19
Consolidated cash flow statement 20
Notestothefinancialstatements 21-41

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

Charity number (England & Wales)

1128532

Charity number (Scotland)

SC044074

Company registration number

06396577

Principal Office

Suite 20, Kent Space 6-8 Revenge Road Chatham ME5 8UD

Registered Office

Airport House Purley Way Croydon England CRO 0XZ

Trustees

Mr Francisco Legaz Cervantes Ms Elisa Moraga Sarrion Ms Maureen Walby

Chief Executive Officer

Mr David McGuire

Auditors

PKF Francis Clark Lowin House Tregolls Road Truro Cornwall

TR1 2NA

Charity bankers

Banco Bilbao Vizcaya Argentaria Cannon

30-40 Eastcheap Street London

EC3M 1HD

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT

The trustees present their report and the consolidated financial statements of the charity and its trading subsidiaries for the year ended 31 March 2022 which are also prepared to meet the requirements of a directors’ report and accounts for Companies Act purposes. The trustees, who are also directors of Diagrama Foundation — Psychosocial Intervention for the purposes of company law and who served during the year and up to the date of this report, are set out on page 1.

The financial statements comply with the Charities Act 2011 (England and Wales), the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Structure, governance and management Governing document and constitution

The organisation was formed under a constitution and became a charitable company limited by guarantee, incorporated on 11th October 2007 and registered as charity on 12th March 2009. The company was established under a Memorandum of Association, which established the objects and power of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1. In June 2013 Diagrama Foundation - Psychosocial Intervention registered with the Scottish Charity Regulator to deliver the same activity as those in England and Wales but to date the organization has not carried out an activity there. Recruitment and Appointment of Trustees The trustees, who are also the directors of the company are listed on page 1. The articles of association provides for the trustees to have the power to co-opt new trustees to hold office until the next Annual General Meeting. The members may by ordinary resolution at a general meeting appoint new trustees.

Trustee Training and Induction

The Trustees are familiar with the charity's work and are proactively engaged and are encouraged to attend and take part in formal and non-formal events. They regularly attend the charity's head office and offer their services and expertise wherever they can be utilised by the charity.

There have been no new Trustees but it is our policy in due course to invite and encourage new Trustees to attend a series of short training sessions in which they will be briefed about the Charity in order to gain an understanding and a context within which it operates.

The Chief Executive will lead this induction on behalf on the Chair of the Trustees and in outline will cover the following:

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT

Related parties and co-operation with other organisations

Diagrama Foundation — Psychosocial Intervention is part of a larger network of charities in Spain which are Members of Diagrama International (Fundacién Diagrama) who work in Europe, Africa and America developing centres, programmes, projects, research and initiatives. Since the beginning, Diagrama International was conceived as a network for collaboration and teamwork between its constituting and adherent members, but also with any organisation or entity, in the public, private or academic spheres, that wants to cooperate materialising viable and sustainable answers to the main problems that the groups are facing.

The charity has four wholly owned trading subsidiaries and a further three dormant subsidiaries. See note 15 for a summary of the subsidiaries operating under the parent charity.

Pay policy for senior staff The directors consider that the board of directors, who are the charity's trustees, and the heads of service of the charity and its trading subsidiaries make up the key management personnel of the group in charge of directing and controlling, running and operating the group on a day to day basis. All trustees of the charity give of their time freely and no trustee received remuneration in the year. Details of trustees’ expenses are disclosed in note 7 to the accounts.

The pay of the senior staff is reviewed annually and normally increased in accordance with average earnings.

Risk Management

The trustees actively review the risks which the charity faces on a regular basis, and will endeavour to build up reserves to three months expenditure in line with the stated reserves policy. The trustees recognise the inherently uncertain commercial climate within which the charity operates. The trustees have developed a risk register for the charity which identifies specific areas of risk, provide dates and details of actions to be taken to reduce risks faced by the charity.

Objectives and aims

Our charity's objectives as set out in the objects contained in the company's memorandum are to promote:

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT

The main aim of the Diagrama Foundation — Psychosocial Intervention currently is to promote the development of centres, programmes and research dedicated to the prevention, treatment and integration of children and young people in social difficulty, including those in custody and detention.

Ensuring our work delivers our aims

We review our aims, objectives and activities each year endeavouring to ensure our activities remain at all times consistent with our aims and objectives. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and we seek to measure the benefits they have brought to those groups of people we set out to help.

The review also helps us ensure our aims, objectives and activities remain focused on our stated purposes. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the objectives they have set.

Group Strategic report

Principal risks and uncertainties

Cash flow risk - Due to the continual growth of the group there is a risk that the cash flow is strained during the purchase of assets from other organisations. The parent charity aims to improve the performance of the trading subsidiaries in order to generate further profits to assist with cash flow.

Liquidity risk — In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the group uses a mixture of long-term and short-term debt finance.

The main focus of our work

Our main objectives for the year were those mentioned above. The strategies we utilised to meet these objectives included:

How our activities deliver public benefit

Our main activities throughout the year and who we tried to help are described below. All our charitable activities focus on the prevention, treatment and integration of disadvantaged people in social difficulty and are undertaken to further our charitable purposes for the public benefit.

Activities and performance

The group continues to operate in the care sector and there has been a drive in the past year to consolidate and cut costs where possible.

The past financial year has been a year of expansion and consolidation, expanding our portfolio of services and improving those that already exist, especially in the care sector.

Since we were not successful in our bid to run a "secure school", we have been reducing several important costs in our headquarters, which we were affording expecting to get the "secure school”. We moved from our old office,

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT larger and more spacious, to the current office that is more appropriate to the current situation, derived from COVID-19 and the promotion of remote working, which has given the organization greater flexibility.

Diagrama has started to manage 9 supported living homes in the area of London Borough of Bromley, providing supporting services to 35 vulnerable people, which allows us to spread our care model in that area.

In addition, Diagrama has been reviewing its costs, including the impact on our organisation over the long term of funding of Local Authority places, increases in the National Minimum Wage (NMW), CPI and general running costs, and letters have been written to Councils and users to set out our price increase for 2022 and 2023. More than 90% of the Councils and users agreed our uplifts.

The COVID-19 situation at the beginning was a challenge we had to face. Plans were put in place; medical and prevention material was purchased and staff organisation was adapted. In this year, preventive measures and procedures to avoid contagion have continued to be present in our centres. For that purpose, during the year, the group has received aid and grants offered by local and central authorities for fighting against COVID-19.

Ultimately, the group is now in a strong financial position, and we advance that this is being consolidated for the year 2022-23.

Activities fall into the following categories:-

European Commission Projects

After Brexit, we are now closed to further EU funds, nevertheless, we have still one Erasmus plus project which started in June 2021 and it will be running until Summer 2023.

The project aims to create a new professional profile for workers in the Social Care Sector by creating a new needsdriven digital communication vocational training course to E-PROFID Erasmust+ KA226 - VET give them access to upskilling and lifelong learning. Moreover it aims to foster “Professional Identity” for people with disabilities/other excluded groups, celebrating ‘ability! and using cornerstones of Empowerment, Real Work & Quality.

Diagrama Healthcare Services Limited

Year 2021/2022 has been characterized by the good performance of our centres and particularly, the incorporation of a new service to the company's services portfolio, Supported Living Homes.

Cabrini House- our home in Orpington for adults with learning disabilities - has retained a 'Good' CQC rating. These homes are fully occupied with 23 residents since summer 2020, and we estimate this occupancy level will be retained for several years due to the stable nature of the placements. In addition, the experience in managing this service has been used for the management of Supported Living Homes, due to the similarities between both services, with the consequent transfer of the Cabrini manager to Supported Living Homes and the reorganization of management team in Cabrini.

Edensor Care Centre has retained a 'Good' rating from the Care Quality Commission, which was achieved in January 2020. Since acquiring this 48-bed nursing home in December 2016, we continue making substantial progress in all areas of operation and management. A new electronic medication administration record system has been introduced in order to improve the security when medicating to our residents, and optimize the time dedicated to the tasks of administration, ordering and booking medication. Staff training has been provided to keep it up to date, and carried out needed remedial works to the building. Recruitment has continued to be an issue this year, which is commonly observed across the sector. We have continued to recruit from overseas,

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT

with satisfactory results. Occupancy has remained consistent and the average number of filled beds has been 45. This has been maintained post year end.

Supported Living Homes is the latest service incorporated in the company’s portfolio from this year, as a result of being successful in the tender for provision of supported living services for thirty-five vulnerable people to develop the skills and confidence to live in their own house either on their own or with others so they can lead independent, fulfilled lives. It encompasses nine properties situated within the London Borough of Bromley. The contract commenced on 1st April 2021 for an initial period of five years, with an option to extend on the same terms and conditions for two periods of up to two years each. The annual fee has been £1.75m.

We have continued to develop a model to better meet the needs of our clients, instead of simply providing activities to fill in time. For that purpose, we use the knowledge of Montessori Method which is based on the fundamental belief that adult with disabilities learns best by doing. With the Montessori Method, learning takes place in an environment where passive acceptance and memorisation of pre-existing knowledge are replaced with active pursuit of experiences. Instead of employee directed group activities, adults with disabilities learning according to the Montessori Method are encouraged to discover activities on their own. They may work alone, with other residents or as part of a group.

We are developing experiences using Montessori training and we could utilise all that we have learnt in improving residents’ quality of life, focusing on dementia and reminiscing. We are seeking grant funding to expand work in this area.

With regard to both Cabrini House, Edensor and Supported Living Homes we believe we are making good progress towards delivering excellent service in the future.

Diagrama Children’s Services Limited

Fostering — In past year, the performance of this service has been very satisfactory. It has been our intention to increase our presence as panel provider in councils in the area. In September, November and December 2021, we applied for South Central Foster framework, Cambridge County Council Foster tender and Kent Foster framework, respectively, being successful in both, with the outcome of being part of panel providers for these councils. In year 2021-2022 we have reached our maximum number of fostering placements since we began providing this service, passing from 16 foster children in 2021 to 18 in 2022. On the other hand, an increase of foster carer allowances was approved in summer 2021 in order to help our families. Fostering is a complex service and approving families to foster is a costly and drawn-out process. We are therefore hoping to build on our partnerships in this area with a view to increasing our number of approved families so we are better able to meet demand.

Adoption - as with fostering, our practice is strong in this area and we continue to work hard to meet demand. New types of adoption placements have been carried out this year, such as Early Permanence placements, which broaden our capacity to meet demand.

We approved a retention plan with salary uplift for Adoption and Fostering employees in 2021 and a bonus payment has been made to our staff due to the good results of the year.

United Safe Care Limited

Significant changes have been made to this arm of the business some years ago. After ceasing security services from March 2018, we decided four years ago to finalise delivering detention and training services and unfortunately, from 2020 we decided to finish our last service supplied, the provision of medical response, due to the high central costs.

Since we were not successful in our bid to run the new ‘secure school’ pilot, we need to focus in other areas to keep the business in the current position until we try to get another opportunity to be successful in a new bid. Even though it has no activity at the moment, we are still in discussions with the Authority to provide services in the youth justice field. It is much unknown when it would happen as the Government still lost in their suggestions.

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT

It would take some time for them to let us know how they would like to proceed. However, we need to maintain it open and ready in case there is a quick turn round.

Diagrama Semi Independent Services Limited

This is the fourth year since we started providing this service in the Canterbury area. Due to the good progress of the business during these years, we have opened up to three homes for over-16 semi-independent users. The last one was Alder House in September 2020. However, Willow house was working well from the beginning until September 2021, when it was left empty, so it was finally closed in December. So far, the business has performed well, generating profits.

Future developments

We are focused on expand the care services we provide, particularly in those related with adults with learning disabilities and supported living services. Previous year we begun an internal and external due diligence for the acquisition of a new resource, called Duckyls Farm Centre, similar than Cabrini centre in terms of service, size and fees. We are now very close to complete this acquisition, which will allow to Diagrama to expand its presence and spread our care model in the south of England. Apart from that, we continue to intent to increase our supporting living services in Bromley area by applying for a new tender for managing 3 additional homes.

Reserves policy

The charity requires reserves to ensure it can fulfil and complete the charitable obligations and commitments it enters into. The trustees believe that the level of unrestricted reserves that are freely available for its general purpose should aim to be the equivalent of three months total expenditure, approximately £250,000. The trustees will aim to achieve this level of reserves in the future.

Investment policy

At the present time, the reserves of the company are held as cash. A formal investment policy will be developed as the resources available grow. Investment powers are governed by the Memorandum and Articles, which permit monies not immediately required, to be invested in such investments, securities or property, as may be thought fit subject to conditions imposed or required by law.

Financial review

Overall expenditure for the year stood at £6,201,753, while income received was £7,553,746 meaning there was a net inflow of funds during the year of £1,351,993. As a result of this the group had net assets at the year end of £2,155,384 compared to net assets at the end of 2021 of £349,435. There were no restricted reserves held at the year-end which is in-line with the prior year.

Diagrama Children’s Services Limited was a company purchased by Diagrama Foundation — Psychosocial Intervention on 15 March 2012. The profit for the year to 31 March 2022 is £319,822, and a gift aid distribution to the parent charity of £374,737 was made.

United Safe Care Limited was a company purchased by Diagrama Foundation — Psychosocial Intervention on 29 June 2012. The loss before tax for the year to 31 March 2022 is £10,084.

Diagrama Healthcare Services Limited was incorporated on 13 October 2014 as a subsidiary of Diagrama Foundation — Psychosocial Intervention. The profit for the period to 31 March 2022 is £1,404,457, and a gift aid distribution to the parent charity of £920,762 was made.

Diagrama Semi Independent Services was incorporated on 3 April 2014 as a subsidiary of Diagrama Foundation — Psychosocial Intervention. The profit for the year to 31 March 2022 is £99,725, and a gift aid donation to the parent charity of £87,348 was made.

Fundraising

No fundraising has been undertaken in the year as funds have been relied on from other sources. There has been no professional fundraiser employed and no complaints received.

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT

Going concern

The financial statements for the year ended 31 March 2022 show an overall surplus in funds of £2,155,384 made up of unrestricted reserves of £225,717 and a revaluation reserve of £1,925,296. However, net current assets at the year-end stood at £1,440,199. As set out further in note 22, the post year-end financial performance has been strong, nevertheless the deficit in unrestricted funds indicates that the business will need financial support going forward in order to continue as a going concern. The directors have received a letter of support from Fundacion Diagrama (the Spanish organisation that has helped to set up and support Diagrama Foundation in the United Kingdom) that confirms that the parent company will provide both financial and other support to enable the business to continue trading for a period covering at least 12 months from the date of signing the accounts. Consequently, the accounts have been prepared on a going concern basis.

Statement of Disclosure to Auditors

In so far as the trustees are aware at the time of approving our trustees’ annual report:

Small company provisions

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

Approved by the board and signed on its behalf by:

Mr Francisco Legaz Cervantes Trustee

Date: 16" December 2022

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Statement of trustees’ responsibilities

The trustees (who are also directors of Diagrama Foundation — Psychosocial Intervention for the purpose of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which 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 the group 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 in the United Kingdom governing the preparation and dissemination of financial statements may differ from the legislation in other[jurisdictions.]

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION

Opinion on financial statements

We have audited the financial statements of Diagrama Foundation — Psychosocial Intervention for the year ended 31 March 2022 which comprise the consolidated statement of financial activities, balance sheet, consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP —FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Report of the Board of Trustees, other than the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements ora material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report on by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Board of Trustees.

We have nothing to report in respect of the following matters where the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 9, the trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our

opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of our audit planning, we obtained an understanding of the legal and regulatory framework that is applicable to the charity and the sector in which it operates to identify the key laws and regulations affecting the entity. The key laws and regulations we identified were health and safety, safeguarding, data protection, employment law and compliance with grant funding conditions. We also considered those laws and regulations

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION

Auditor’s responsibilities for the audit of the financial statements (continued)

that have a direct impact on the preparation of the financial statements, primarily the Companies Act 2006, Charities Act 2011 and compliance with the Charities Statement of Recommended Practice.

We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deals with reporting any issues if they arise.

We assessed the susceptibility of the charity's financial statements to material misstatement, including how fraud might occur as part of the audit planning process. We determined that these risks are low considering the fact that the charity operates on a not for profit basis and so there would be no motivation for management to influence performance for individual gain.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

“We reviewed legal and professional costs to identify any non-compliance or legal costs in relation to noncompliance.

*We made enquires to management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements.

As part of our enquiries, we discussed with management whether there have been any known instances, allegations or suspicions of fraud of which there were none.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher that the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION

Use of our report

This report is made solely to the charitable company’s trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

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Thomas Roach FCA (Senior Statutory Auditor) PKF Francis Clark

Chartered Accountants and Statutory Auditor

Lowin House Tregolls Road Truro Cornwall TR1 2NA

Date: Seliafea...

PKF Francis Clark is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (incorporating the income and expenditure account)

Unrestricted Restricted 2022
funds funds Total
Notes £ £ £
Income and Endowments from:
Donations and legacies 2 136,381 21,618 157,999
Other trading activities 3 7,121,719 - 7,121,719
Covid-19 Income 219,818 - 219,818
Other income 4 54,210 - 54,210
Total income
7,532,128 21,618 7,553,746
Expenditure on:
Raising funds 5 (5,786,302) - (5,786,302)
Charitable activities 6 (397,247) (17,247) (414,494)
Other expenditure (957) - (957)
Total
expenditure
xP		 (6,184,506) (17,247) (6,201,753)
Net (expenditure)/income 1,347,622 4,371 1,351,993
Transfers
Transfers between funds 24/25
: :
Net(expenditure)/income before
other recognised gains and losses		 1,347,622 4,371 1,351,993
Other recognised gains/losses
Gains on revaluation of fixed assets 13 453,956 - 453,956
(Losses)/gains on investment assets - - -
Net movement in funds 1,801,578 4,371 1,805,949
Reconciliation offunds
Total funds broughtforward 349,435 - 349,435
Total funds carried forward
2,151,013 4,371 2,155,384

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

PARENT CHARITY STATEMENT OF FINANCIAL ACTIVITIES (incorporating the income and expenditure account)

Unrestricted Restricted 2022
funds funds Total
Notes £ £ £
Income and Endowments from:
Donations and legacies 25 1,441,901 21,618 1,463,519
Other trading activities 35,369 - 35,369
Covid-19 Income - - -
Total income
1,477,270 21,618 1,498,888
Expenditure on:
Charitable activities 25 (511,267) (17,247) (528,513)
Total expenditure
P		 (511,267) (17,247) (528,513)
Net (expenditure)/income 966,003 4,371 970,374
Transfers
Transfers between funds - - -
Net(expenditure)/income before
other recognised gains and losses		 966,003 4,371 970,374
Other recognised gains/losses
Gains on revaluation of fixed assets 453,956 - 453,956
(Losses)/gains on investment assets - - -
Net movement in funds 1,419,959 4,371 1,424,330
Reconciliation offunds
Total funds broughtforward (946,775) - (946,775)
Total funds carried forward
473,184 4,371 477,555

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (incorporating the income and expenditure account)

Unrestricted Restricted 2021
funds funds Total
£ £ £
Income and Endowments from:
Donations and legacies 297 ,632 4,664 302,296
Other trading activities 5,364,909 - 5,346,909
Covid-19 income 362,120 - 362,120
Other income 10,579 - 10,579
T
.
otal income		 TT TO
6,035,240 4,664 6,039,904
Expenditure on:
Raising funds (4,453,644) - (4,453,644)
Charitable activities (865,660) (4,664) (870,324)
Other expenditure (8,560) - (8,560)
T
.
otalexpenditarg		 OT
(5,327,864)		 TO
(4,664)		 ae
(5,332,528)
Net (expenditure)/income 707,376 - 707,376
Transfers
Transfers between funds
_ ' _
Net (expenditure)/income before
other recognised gains and losses		 707,376 . 707,376
Other recognised gains/losses
Gains on revaluation of fixed assets 20 - 20
(Losses)/gains on investment assets - - -
Net movement in funds 707,396 - 707,396
Reconciliation offunds
Total funds broughtforward (357,961) - (357,961)
Total
f
ied f
otal
funds carried
forwar		 d
349,435 . 349,435

16

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

PARENT CHARITY STATEMENT OF FINANCIAL ACTIVITIES (incorporating the income and expenditure account)

Unrestricted Restricted 2021
funds funds Total
£ £ £
Income and Endowments from:
Donations and legacies 772,506 4,664 777,170
Other trading activities 6,625 - 6,625
Covid-19 income 25,588 - 25,588
Total Inert
804,719 4,664 809,383
Expenditure on:
Charitable activities (946,305) (4,664) (950,696)
Total expenditure (946,305) (4,664) (950,696)
Net (expenditure)/income (141,586) - (141,586)
Transfers
Transfers between funds - - -
Net(expenditure)/income before
other recognised gains and losses		 (141,586) . (141,586)
Other recognised gains/losses
Gains on revaluation of fixed assets 20 - 20
(Losses)/gains on investment assets - - -
Net movement in funds (141,566) - (141,566)
Reconciliation offunds
Total funds broughtforward (805,209) - (805,209)
.
f
Total funds carried
forward		 rs TO TO
(946,775) ; (946,775)

17

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

CONSOLIDATED AND PARENT CHARITY BALANCE SHEET AS AT 31 MARCH 2022

Group Group Charity Charity
2022 2021 2022 2021
Notes £ £ £ £
Fixed assets
Tangible assets 13/14 4,830,375 4,233,524 4,767,785 4,157,620
Investments 15 - - 901,402 901,402
Intangible assets 11/12 187,995 260,951 89,084 112,585
5,018,370 4,494,475 5,758,271 5,171,607
Current assets
Debtors 16 419,026 555,591 90,527 140,564
Cash at bank and in hand 1,719,334 931,303 45,162 11,342
2,138,360 1,486,894 135,689 151,906
Sreelione:anionstalliig
due within one year		 17 (698,161) (862,794) (2,367,901) (2,914,748)
Net current assets/ 1,440,199 624,100 (2,232,212) (2,762,842)
(liabilities)
Total assets less current
liabilities 6,458,569 5,118,575 3,526,059 2,408,765
Creditors: amounts falling
due after more than one 19 (4,303,223) (4,770,135) (3,048,504) (3,355,540)
year
Provisions for Liabilities 38 995 - -
Net assets/ (liabilities) 2,155,384 349,435 477,555 (946,775)
Funds
Restricted income funds 25 4,371 - 4,371 -
Unrestricted income funds 24 225,717 (1,121,905) (1,452,112) (2,418,115)
Revaluation reserve 1,925,296 1,471,320 1,925,296 1,471,320
Total funds
2,155,384 349,435 477,555 (946,775)

The financial statements have been prepared in accordance with FRS 102.

18

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

CONSOLIDATED AND PARENT CHARITY BALANCE SHEET (continued) AS AT 31 MARCH 2022

The financial statements on pages 14 to 41 were approved by the trustees, and authorised for issue on 16" December 2022 and signed on their behalf by:

Mr Francisco Legaz Cervantes Trustee

Registered company number: 06396577

19

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

CONSOLIDATED CASH FLOW STATEMENT AS AT 31 MARCH 2022

2022 2021
£ £
Cash flows from operating activities
Net income/(expenditure) forthe reporting period 1,351,993 707,376
Adjustments to cash flows from non-cash items
Depreciation (126,234) 98,872
Amortisation 72,956 72,956
Loss on disposal of tangible fixed assets 195 1,502
Impairment of goodwill - -
Income tax expense 957 8,560
Currency exchange (127,908) 22,507
(180,034) 204,397
Working capital adjustments
(Increase)/decrease in debtors 476,839 (174,335)
Increase/(decrease) in creditors (651,743) 90,450
Net cash flows from operating activities 997,055 827,888
Cash flows from investing activities
Purchase of intangible fixed assets - 2
Purchase of tangible fixed assets (17,057) (51,749)
Sale oftangible fixed assets 200 2,600
Netcash flowsfrom investing activities (16,857) (49,149)
Cash flows from financing activities
Value of new loans obtained during the period - -
Proceeds from issue of ordinary shares - -
Currency exchange - -
Repayment ofloans and borrowings (192,167) oe (69,468)
Net cash flows from financing activities (192,167) (69,468)
Net (decrease)/increase in cash and cash equivalents 788,031 709,271
Cash and cash equivalents at 1 April 931,303 222,032
Cashandcashequivalentsat31March 1,719,334 931,303

20

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE) FOR THE YEAR ENDED 31 MARCH 2022

  1. Accounting policies The principal accounting policies applied in the preparation of these financial statements are summarised below. The accounting policies have been applied consistently throughout the year and the preceding year.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) — (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The consolidated accounts comprise those of Diagrama Foundation — Psychosocial Intervention and its four wholly owned trading subsidiaries — Diagrama Children’s Services Limited, United Safe Care Limited, Diagrama Healthcare Services Limited and Diagrama Semi Independent Services Limited. The results of the subsidiary companies are consolidated on a line by line basis.

Diagrama Children’s Services Limited, United Safe Care Limited, Diagrama Healthcare Services Limited and Diagrama Semi Independent Services Limited have prepared accounts for the 12 month period to 31 March 2022.

Diagrama Foundation — Psychosocial Intervention also had six dormant subsidiaries that have prepared dormant company accounts for the year ended 31 March 2022.

Basis of preparation

Diagrama Foundation — Psychosocial Intervention meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The financial statements for the year ended 31 March 2022 show an overall surplus in funds of £2,155,384 made up of unrestricted reserves of £225,717 and a revaluation reserve of £1,925,296. However, net current assets at the year-end stood at £1,440,199. As set out further in note 22, the post year-end financial performance has been strong, nevertheless the deficit in unrestricted funds indicates that the business will need financial support going forward in order to continue as a going concern. The directors have received a letter of support from Fundacién Diagrama (the Spanish organisation that has helped to set up and support Diagrama Foundation in the United Kingdom) that confirms that the parent company will provide both financial and other support to enable the business to continue trading for a period covering at least 12 months from the date of signing the accounts. Consequently, the accounts have been prepared on a going concern basis.

Income and endowments

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Donations and legacies

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.

21

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised asa liability and included on the balance sheet as deferred income to be released.

Deferred income

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 charity has unconditional entitlement.

Other income

Where services are provided to the charity as a donation that would normally be purchased from our suppliers, this benefit is included in the financial statements at its fair value unless its fair value cannot be reliably measured, then at the cost to the donor or the resale value of goods that are to be sold.

The value of services provided by volunteers is not incorporated into these financial statements.

Incoming resources from tax reclaims are included in the statement of financial activities at the same time as the gift to which they relate.

Turnover in the subsidiary companies represents amounts chargeable in respect of the sales of services.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the assets use. Other support costs are allocated based on the spread of staff.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

22

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Tangible fixed assets

Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Amortisation

Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:

Asset Class Amortisation method and rate Goodwill 10% straight line

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset Class Depreciation method and rate
Freehold property (excluding land) 2% straight line
Improvements to property 2% straight line
Plant and machinery 25% straight line
Fixtures and fittings 25% straight line
Motor vehicles 25% reducing balance
Computerequipment 25%reducingbalance

Business combinations

Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the charity. All intra-group transactions, balances, income and expenses are eliminated on consolidation. In accordance with Section 35 of FRS 102, Section 10 of FRS 102 has not been applied in these financial statements in respect of business combinations effected prior to the date of transition.

Fixed asset investments

Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at year end.

23

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

Trade Debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and cash deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Foreign exchange

Transactions in foreign currencies are recorded at the rate of exchange during the period and their balance sheets at the rates ruling at the balance sheet date are reported at the rates of exchange prevailing at that.date.

The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity.

24

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

Other exchange differences are recognised in the statement of financial activities in the period in which they arise except for:

1) Exchange differences arising on gains or losses on non-monetary items which are recognised in other comprehensive income; and

2) In the case of the consolidated financial statements, exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised in other comprehensive income and reported under equity.

Fund Structure

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.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Charity after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangements constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or[financial][liability] is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

25

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

Investments

Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

2. Income from donations and legacies

Unrestricted Restricted 2022 2021
funds funds Total Total
£ £ £ £
Donations 127,584 - 127,584 177,692
Gift Aid Tax reclaim - - ~ -
Grants receivable 8,797 21,618 30,415 124,604
136,381 21,618 157,999 302,296

3. Other trading activities

Unrestricted 2022 2021
funds Total Total
£ £ £
Sale of services 7,121,719 7,121,719 5,364,909
7,121,719 7,121,719 5,364,909

26

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

4. Other income

Unrestricted 2022 2021
funds Total Total
£ £ £
Fees and supplies - - 6,625
Other income 54,210 54,210 3,954
Covid-19 income 219,818 219,818 362,120
274,028 274,028 372,699
5. Raising funds
Unrestricted 2022 2021
funds Total Total
£ £ £
Costs of raising funds 5,786,302 5,786,302 4,453,644
5,786,302 5,786,302 4,453,644
6. Costs of charitable activities
Unrestricted Restricted 2022 2021
funds funds Total Total
£ £ £ £
Costs of charitable activities 361,927 17,247 379,174 835,004
Governance Costs 35,320 - 35,320 35,320
397,247 17,247 414,494 870,324

27

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

7. Trustees’ remuneration and expenses

During the year the Charity made the following transactions with trustees:

Ms Maureen Walby

ENil (2021: ENil) of expenses were reimbursed to Ms Maureen Walby during the year.

Mr Francisco Legaz Cervantes

ENil (2021: £415) of expenses were reimbursed to Mr Francisco Legaz Cervantes during the year. Mr Francisco Legaz Cervantes also provided consultancy services to the charity in the year totalling £19,500 (2021: £11,600)

At the balance sheet date, the amount due from Mr Francisco Legaz Cervantes was £nil (2021: £Nil).

No other trustees, nor any persons connected with them, have received any other remuneration from the Charity during the year.

8. Net incoming resources for the year

8.
Net incoming resources for the year
2022 2021
£ £
Net incoming resources is stated after charging:
Foreign currency (gains)/losses (127,908) 22,507
Depreciation and other amounts written offtangible fixed assets (126,233) 98,872
(Gains)/losses on revaluation offixed assets (453,956) (20)
Amortisationofgoodwill 72,956 72,956

9. Employees

Employment costs 2022 2021
The aggregate payroll costs were as follows: £ £
Wages and salaries 4,048,724 2,981,656
Social security 347,358 239,767
Pension costs 152,608 65,267
4,548,690 3,286,690

28

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

The monthly average number of persons (including senior management team) employed by the Charity during the year were as follows:

2022 2021
No No
Carers, secure transportation, administration and management 194 155

The number of employees whose emoluments fell within the following bands were (2021: none more than £60,000):

£60,000):
2022 2020
No No
£60,001 to £70,000 1 0

The key management personnel of the Charity are the heads of services and the CEO. The total amount of employee benefits (including employer pension contributions) received by key management personnel for their services to the Charity was £172,751 (2021: £187,988).

10. Taxation

The charity's activities fall within the exemptions afforded by the provisions of the Income and Corporation Taxes Act 1988. Accordingly, there is no taxation charge in the financial statements of the parent; however, corporation tax liabilities arise on any taxable profits of the trading subsidiaries, where the taxable profits have not been donated to the parent charity.

2022 2021
United Safe Diagrama United Safe Diagrama
Care Ltd Children’s Care Ltd Children’s
Services Ltd Services Ltd
Current tax
_ :
Corporation tax charge
Deferred tax
Onisionand reversal oftiming
differences		 (668) (289) (936) (7,624)

29

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

11. Intangible fixed assets

Group Goodwill Total
£ £
Cost
At 1 April 2021 960,705 960,705
Additions - -
Impairments - -
Disposals - -
At 31 March 2022 960,705 960,705
Amortisation
At 1 April 2021 699,754 699,754
Amortisation for the year 72,956 72,956
Eliminated on disposal - -
At 31 March 2022 772,710 772,710
Net book values
At 31 March 2022 187,995 187,995
At31March2021 260,951 260,951

30

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

12. Intangible fixed assets

Charity Goodwill Total
£ £
Cost
At 1 April 2021 235,006 235,006
Additions - 2
Disposals - -
At 31 March2022 235,006 235,006
Amortisation
At 1 April 2021 122,421 122,421
Amortisation forthe year 23,501 23,501
At 31 March 2022 445,922 145,922
Net book values
At 31 March 2022 89,084 89,084
At31March2021 112,585 112,585

31

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

13. Tangible fixed assets

Group Land & Office
buildings equipment Motor
freehold & fixtures vehicles Total
£ £ £ £
Cost / Valuation
At 1 April 2021 4,296,044 632,564 68,838 4,997,446
Additions - 15,057 2,000 17,057
Revaluation 453,956 - - 453,956
Disposals - - (1,667) (1,667)
fad] Maren 2042 4,750,000 632,564 68,838 5,466,792
Depreciation
At 1 April 2021 160,659 569,315 33,948 763,922
Charge for the year - 25,551 8,874 34,425
Write back on revaluation (160,659) - - (160,659)
Eliminated on disposal - - (1,272) (1,272)
At 31 March 2022 ; 594,866 41,550 636,417
OO
Net book values
At 31 March 2022 4,750,000 52,755 27,621 4,830,375
At31March2021 4,135,385 63,249 34,890 4,233,524

Revaluations

The land & buildings held in Diagrama Foundation — Psychosocial Intervention are held at a revalued amount following a revaluation on 23 April 2018 by independent qualified valuers from Davis Coffer Lyons.

The freehold land & buildings and improvements to freehold property held in Diagrama Foundation — Psychosocial Intervention were revalued on 17 May 2022 by independent qualified valuers from Knight Frank LLP.

The historical cost of the revalued properties was £2,824,724 (2021: £1,192,949). The depreciation to date on the historical cost basis is £173,807 (2021: £149,947).

32

DIAGRAMA FOUNDATION —- PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

14. Tangible fixed assets

Charity Land & Office
buildings equipment Motor
freehold & fixtures vehicles Total
£ £ £ £
Cost
At 1 April 2021 4,296,044 431,625 29,501 4,757,170
Additions - 1,480 - 1,480
Revaluation 453,956 - - 453,956
Disposals - - - -
At 31 March 2022 4,750,000 433,105 29,501 5,212,606
OO
Depreciation
At 1 April 2021 160,659 431,625 7,266 599,550
Charge for the year - 370 5,559 5,929
Write back on revaluation (160,659) - - (160,659)
Eliminated on disposal - - - -
Ala) Mapeh 2022 160,659 431,625 12,825 444,820
CO
Net book values
At 31 March 2022 4,750,000 1,110 16,676 4,767,786
At31March2021 4,135,385 - 22,235 4,157,620

33

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

15. Fixed asset investments

15.
Fixed asset investments
Group Charity
£ £
Cost
At 1 April 2021 - 901,402
Additions ~ -
Impairment - -
At 31 March 2022 - 901,402
All fixed asset investments are held within the United Kingdom.
The charity holds more than 20% ofthe share capital ofthe following companies:-
Subsidiary undertakings Country of Principal Activity Class %
Incorporation
Diagrama Children’s Services Limited England Adoption and fostering Ordinary 100
United Safe Care Limited England Secure transportation Ordinary 100
Diagrama Healthcare Services Limited England Provision of care Ordinary 100
Diagrama Semi Independent Services England Provision of semi- Ordinary 100
Limited independent living
Diagrama Hassockfield Limited England Dormant Ordinary 100
Basta UK Limited England Dormant Ordinary 100
Diagrama Medway Limited England Dormant Ordinary 100
Subsidiary undertakings Period End Capital & Reserves Profit/(Loss) forthe
period before tax
Diagrama Children’s Services Limited 31/03/2022 £597,917 £319,822
United Safe Care Limited 31/03/2022 (£480,771) (£10,084)
Diagrama Healthcare Services Limited 31/03/2022 £1,799,225 £1,404,457
Di
i
laprart Semi IndependentServices
Limited		 31/03/2022 £178,639 £99,725
Diagrama Hassockfield Limited 31/03/2022 £100 <
Basta UK Limited 31/03/2022 £100 -
DiagramaMedwayLimited 31/03/2022 £100 7

All fixed asset investments are held within the United Kingdom.

The charity holds more than 20% of the share capital of the following companies:-

34

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

16. Debtors

Group Group Charity Charity
2022 2021 2022 2021
£ £ £ £
Trade debtors 333,030 309,010 9,566 -
Amounts due from subsidiary undertaking - - 59,491 49,250
Other debtors 33,365 47,988 12,393 27,937
Deferred Tax - - - -
Prepayments and accrued income 52,631 198,593 9,077 63,377
419,026 555,591 90,527 140,564
  1. Creditors: amounts falling due within one year
Group Group Charity Charity
2022 2021 2022 2021
£ £ £ £
Bank loans and overdraft 308,323 366,569 184,172 278,142
Corporation tax payable - - - -
Other taxes and social security costs 94,202 56,505 5,132 7,281
Outstanding pension contributions 192 650 - -
Trade creditors 116,089 107,572 31,346 57,554
Other creditors 38,635 26,826 1,839 340
Amounts owed to subsidiary undertakings - - 2,055,656 2,415,206
Amounts owed to associated undertakings 76,775 78,974 76,775 78,974
Short term loans 200 17,477 200 17,477
Accruals and deferred income 63,745 208,221 12,781 54,780
698,161 862,794 2,367,901 2,914,748

The bank loans due in under 1 year in the parent entity include a secured loan of £184,172 (2021: £190,600); which is guaranteed by Fundacién Diagrama with a further charge over one of the properties owned by the parent.

The bank loan due in under 1 year in Diagrama Healthcare Services Limited totals £124,151 (2021: £88,427); the loan is secured by both floating charge and fixed charges on all the assets held, together with a cross guarantee with this group.

35

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

18. Deferred income

18.
Deferred income
Group Group Charity Charity
2022 2021 2022 2021
£ £ £ £
Balance as at 1 April 423 423 423 423
Amounts released to other trading income (423) - (423) -
Amounts deferred in the year 183 - - -
Balance as at 31 March 183 423 - 423
19.
Creditors: amounts falling due
after more than one year
Group Group Charity Charity
2022 2021 2022 2021
£ £ £ £
Bank loan 2,527,250 2,872,865 1,272,531 1,458,270
Other creditors - - - -
Amounts owed to associated undertaking 1,775,973 1,897,270 1,775,973 1,897,270
Provisions (38) (995) - -
4,303,185 4,769,140 3,048,504 3,355,540
Loans
Repayableinfiveyearsormore 461,234 639,147 461,234 639,147

The bank loan due in over 1 year in the parent entity include a secured loan of £1,272,531 (2021: £1,458,270); which is guaranteed by Fundacion Diagrama with a further charge over one of the properties owned by the parent.

The bank loan due in over 1 year in Diagrama Healthcare Services Limited totals £1,254,719 (2021: £1,414,595); the loan is secured by both a floating charge and fixed charges on all the assets held, together with a cross guarantee with this group.

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DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

20. Commitments

Operating lease commitments Group

As at 31 March 2022 the group had total commitments under non-cancellable operating leases as follows:-

Operating leases which expire:

31 March 2022 31 March 2021
£ £
Land and buildings
Within one year 8,074 8,074
Between 2 and 5 years - -
Over five years - -
8,074 8,074
Other
Within one year 21,885 21,885
Between 2 and 5 years 20,850 32,799
Over five years - -
42,735 54,684

Operating lease commitments Charity

As at 31 March 2022 the parent charity had total commitments under non-cancellable operating leases as follows:-

Operating leases which expire:

31 March 2022 31 March 2021
£ £
Land and buildings
Within one year 8,074 8,074
Between 2 and 5 years - -
Over five years - -
8,074 8,074
Other
Within one year 936 936
Between 2 and 5 years 936 936
Over five years - -
1,872 1,872

37

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

21. Related party transactions

Controlling entity

The charity is controlled by its trustees. Two of the trustees of the charity are also trustees of Fundacion Diagrama, a Spanish organisation. Fundacion Diagrama therefore have significant influence over the running of the charity.

Related party transactions — Parent charity

During the year Fundacién Diagrama provided staff and IT services to the group with an estimated value of £81,899 (2021: £83,220). Diagrama Foundation — Psychosocial Intervention paid interest of £80,634 (2021: £82,521) to Fundacién Diagrama during the year. At the balance sheet date the amount due to Fundaci6én Diagrama was £1,852,748 (2021: £1,976,245) which has been adjusted for exchange rate movements.

22. Going concern

Diagrama Foundation — Psychosocial Intervention

The charity has generated a surplus during the year of £970,374 and currently has net assets of £946,774. However, the group generated a surplus of £1,351,993 and had net assets of £2,155,384 as at 31 March 2022. Due to the net liabilities in the parent, there is some indication that the business will need financial support going forward in order to continue as a going concern. However the group has not been adversely affected by the Covid-19 pandemic with the group overall having its best performance to date. This has continued into the 202223 year.

As a result the latest management accounts to September 2022 show that the group had generated a surplus of £522,969 in the period. In addition the directors have received a letter of support from Fundacion Diagrama (the Spanish organisation that has helped to set up and support Diagrama Foundation in the United Kingdom) that confirms that they will provide both financial and other support to enable the charity and group to continue operating for a period covering at least 12 months from the date of signing the accounts.

As a result of the above the directors consider that is remains appropriate to prepare the accounts on a going concern basis.

United Safe Care Limited (Subsidiary company)

The performance of the company has improved slightly upon the prior year, generating a financial loss before tax across the company’s activities as a whole of £10,084 in the year. The company is currently showing net current liabilities on the balance sheet of £480,871. The trade of the company was ceased in November 2019, however discussions are currently being had regarding the provision of transportation services for a day centre upon the opening of the farm. Although, the company is currently relying on the support of other subsidiaries to support the company, with these discussions going on the director considered that it remains appropriate to prepare the accounts on a going concern basis.

38

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

23. Analysis of net assets between funds

23.
Analysis of net assets between funds
Unrestricted Restricted Total
funds funds funds
£ £ £
Fund balances at 31 March 2022 as represented by:
Intangible fixed assets 187,995 - 187,995
Tangible fixed assets 4,830,375 - 4,830,375
Current assets 2,133,989 4,371 2,138,360
Current liabilities (698,161) - (698,161)
Long-term liabilities (4,303,185) - (4,303,185)
2,151,013 4,371 2,155,384

Comparative information in respect of the preceding period is as follows:

Unrestricted Restricted Total
funds funds funds
£ £ £
Intangible fixed assets 260,951 - 260,951
Tangible fixed assets 4,233,524 - 4,233,524
Current assets 1,486,894 - 1,486,894
Current liabilities (862,794) - (862,794)
Long-term liabilities (4,769,140) - (4,769,140)
349,435 - 349,435

24. Unrestricted funds

----- Start of picture text -----
At Other At
1 April Incoming Outgoing gains/ 31 March
2021 resources resources Transfers (losses) 2022
£ £ £ £ £ £
Unrestrictedtricted fundsfunds — 349,435 7,532,128 (6,184,506) - 453,956 ~——2,151,013
group
Woresiteledtricted fundsMGS — 8 775) 1,477,270 (511,267) - 453,956 473,184
charity i
----- End of picture text -----

39

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

Comparative information in respect of the preceding period is as follows:

At Other At
1 April Incoming Outgoing gains/ 31 March
2020 resources resources Transfers (losses) 2021
£ £ £ £ £ £
Unrestricted funds
— group		 (357,961) 6,035,240 (5,327,864) - 20 349,435
eee ae ee
Unrestricted funds
— charity (as (805,209) 804,719 (946,305) - 20 (946,775)
restated)
25.
Restricted		 funds— group and charity
At Other At
1 April Incoming Outgoing gains/ 31 March
2021 resources resources Transfers (losses) 2022
£ £ £ £ £ £
Tesco bags for help - 13,125 (8,297) - - 4,828
EU Projects - 8,493 (8,950) - - (457)
- 21,618 (17,247) - - 4,371
Comparative information in respect of the preceding period is as follows:
At Other At
1 April Incoming Outgoing gains/ 31 March
2020 resources resources Transfers (losses) 2021
£ £ £ £ £ £
Tesco bags for help - 4,664 (4,664) - - -
- 4,664 (4,664) - - -

Purposes of restricted funds

Tesco bags for help — The purpose of this fund is to help and support foster carer panels. EU Projects — purpose of this fund is to provide training for Care Workers who support people with disabilities.

40

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2022

26. Company limited by guarantee

Diagrama Foundation — Psychosocial Intervention is a company limited by guarantee and accordingly does not have any share capital.

Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

41