OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-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 2023

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

CONTENTS

Page
Reference and administrative details 1
Trustees' report 2-9
Trustees’ responsibilities 10
Auditors' report to the trustees 11-14
Statement of financial activities 15 - 18
Balance sheet 19 - 20
Consolidated cash flow statement 21
Notestothefinancialstatements 22-41

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

Charity number (England & Wales) 1128532 Charity number (Scotland) $C044074 Company registration number 06396577

Principal Office Suite 20, Kent Space
6-8 Revenge Road
Chatham
ME5 8UD
Registered Office Airport House
PurleyWay
Croydon
England
CRO 0OXZ
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
EC3M1HD

1

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 2023 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:

¢ The main documents which set out the operational framework for the charity including the latest published accounts, resourcing and financial position

¢ Future plans and objectives

¢ The obligations of becoming Trustee

¢ A feedback session to understand if this process is beneficial and how it can be improved

2

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:

3

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 — |n 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 past year has been a year of adding new services to our portfolio, with the purchase of a new business located in the West Sussex area, dedicated to providing accommodation and support services to adults with learning disabilities, Duckyls Farm Centre. The growth of this service line is a strategic focus for Diagrama which, with the launch of Supported Living homes in the previous year, and now Duckyls Farm Centre, consolidates this service line in our group. It has also been a year of consolidation of the services already in operation, through the sustainability of occupancy rates, the increase in our fees with respect to the previous year to compensate cost increases, and the optimisation of resources. On the other hand, it has also been a year of restructuring the portfolio of services, so that the semi-independent homes Diagrama managed in Canterbury have ceased to operate, leaving Diagrama Semi-Independent Services Ltd without operation from summer 2022.

4

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

TRUSTEES REPORT

Diagrama has for some time intended to acquire Duckyls Farm Centre, a well-established residential care home near East Grinstead, West Sussex which provides personal care and accommodation for 8 people with learning disabilities and autism. This incorporation finally took place in February 2023. The transaction included the purchase of the service and properties, which include an 8-bed building, adjoining buildings and farm land. Feasibility studies and renovations are underway to expand the number of beds to 10. In addition, an adjoining cottage was purchased in February 2023 and will be remodelled to serve as a supported living home.

In addition, Diagrama has restructured its services, ceasing to provide semi-independent services at the end of June 2023, with the closure of the last two homes we had in the Canterbury area, due to the difficulty in finding users in this area. On the expenditure side, the group has had to cope with constant increases in wages, inflation, increase in financing costs by the increase in Bank of England rate and restructuring our liabilities to finance the acquisition of Duckyls Farm, the necessary repairs of our premises.

In terms of financial cost management, Diagrama continues to make an annual review of the fees we charge for our services, to offset increases in salaries, National Minimum Wage (NMW), CPI and overheads. As has been the case in recent years, letters have been sent to local authorities to increase our prices for 2023 and 2024. The responses from the councils have been very satisfactory, especially for Edensor Care Centre, where we have seen our prices increase by 8% and 20% for residential and nursing placements, respectively. We have a budget drawn up at the beginning of the year for all the group's resources and by the different departments, which is approved before the start of the fiscal year by the Trustees. This budget is reviewed each month with the CEO and COO to determine possible deviations, so that we are able to resolve them quickly and appropriately.

In contrast to the last two years, Diagrama has stopped receiving financial support from public institutions to mitigate the effects of COVID this year 2022-2023. In the last two years, this aid has allowed us to adapt to the new reality, establish contagion prevention plans, purchase medical and preventive material, reorganise the distribution of workers in our centres, and implement incentives and retention measures for our employees.

Diagrama has continued to improve and make renovations to our properties so that our residences and homes are comfortable and safe for our residents and users.

Ultimately, the group is now in a strong financial position, and we advance that this is being consolidated for the year 2023-24.

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 needs-
driven
digital communication vocational training course to
E-PROFID Erasmus+ KA226 -VET givethem access to upskilling and lifelong learning. Moreover
it aims
to
foster
“Professional
Identity”
for
people
with
, disabilities/other excluded groups, celebrating
‘ability! and
usingcornerstonesofEmpowerment,RealWork&Quality.

5

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

TRUSTEES REPORT

This was the second year of the E-PROFID project, which ends in the first half of the 2023-2024 financial year. The consortium, originally formed by 5 European partners, among them Diagrama Foundation Psychosocial Intervention as lead partner, experienced the departure of one of them, and the tasks left by this partner had to

be taken over by the rest of the members. Nevertheless, the implementation of the project has been successful. The participants made several learning visits to the facilities of the different partners in Europe, with Diagrama Foundation hosting a training event at the end of November 2022. During the period April 2022 to March 2023 we have received the second payment from the British National Agency, but it has not covered all the expenses incurred this year to develop the planned activities, having to make a transfer of unrestricted funds to avoid the deficit of the project this year. However, this is not a problem as Diagrama has received the final payment for the project in September 2023, covering the full costs.

Diagrama Healthcare Services Limited

Year 2022/2023 has been characterized by the good performance of our centres. This is the second year we started managing Supported Living Homes in Bromley area, with a total of 35 residents distributed in 9 homes. Duckyls farm has been added to this company, and we started managing this centre from February 2023.

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 fact, it continues to be our reference service when implementing new therapies, such as those based on Montessori method, and serving as an example of good practice for our other services.

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. Recruitment has continued to be an issue this year, which is commonly observed across the sector. We have continued to recruit from overseas, with satisfactory results. Occupancy has remained consistent and the average number of filled beds has been approximately 45. This has been maintained post year end. The increase in average weekly fees has been another important factor that has allow us to cover the costs and provide high quality service to our residents.

Supported Living Homes is the service incorporated in the company’s portfolio from April 2021, as a result of being successful in the tender for provision of supported living servicesfor[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 1* 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.

Duckyls Farm Centre is the latest service incorporated in the company’s portfolio. It is located in West Sussex and provides care and accommodation for 8 residents with learning disabilities. Our residents benefit from the former farmhouse’s idyllic location. It is on the outskirts of the village of West Hoathly and sits in extensive grounds with masses of space for outdoor pursuits. Our highly trained and professional on-site team are always on hand to support residents while encouraging them to be as independent as possible via a wide-ranging programme of trips and activities. Diagrama took over the running of Duckyls in February 2023. The care provided is tailor-made for each resident to ensure everyone's abilities and interests are fully catered for. 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.

6

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

TRUSTEES REPORT

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, Supported Living Homes and Duckyls Farm Centre we believe we are making good progress towards delivering excellent service in the future.

Diagrama Children’s Services Limited

Adoption and Fostering services — Although the average number of foster children this year has not been as high as the previous year (on average we have had 14 foster children compared to 18 last year), this decrease in fostering incomes has also meant a reduction in direct costs for fostering services. Furthermore, the improvement in the results of the Adoption services (we have completed a greater number of adoption placements in year 2022-2023, 20 placements compared to 18 last year), has offset the reduction in Fostering income, allowing us to achieve a profit similar to the previous year.

Is our intention to increase our presence as panel provider in councils in the area, by applying for being part of their foster frameworks in future tenders.

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.

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

Despite the good progress of the business during the past few years, which allowed us to open three homes for over-16 semi-independent users, the last one being Alder House in September 2020, from September 2021 we found difficulties in filling the home vacancies at a competent rate that would allow us to cover the costs of providing the service. The occupancy rate in semi-independent homes decreased during 2022-2023, culminating in the closure of the last two homes at the end of June 2022.

The closure of this service has been quick and without important cost of cessation of service. Tenancy agreements have been terminated at the end of June 2022, staff have been redeployed to the Supported Living Homes service and the charity, and operational costs have been finalised.

Future developments

Healthcare Service. It is the field we could potentially develop further. We are finding that generally the people we are looking after are coming with more complex needs and there has been an increase of people of mental health who are requiring more one to one care.

  1. | Edensor, as we explained in other years, we do not anticipate growing this service. We are developing our methodology to improve and give a very high-quality care service. We are investing in the building as it was in need of improvements. Training will continue to be our focus. The LA increased the fees last year which made us to minimise the impact of the NMW and this year we are going to find in a very similar situation where we need to work very closely with the LAs for next NMW increase.

7

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

TRUSTEES REPORT

2: Cabrini, we are in a situation where the occupancy is very settled for a long time which makes that our residents are aging, and we need to adapt ourselves for the new needs that they are having. We would do so by training and retraining the staff for meet the service users’ needs. In this particular service we need to make the staff team more settled as we had some gaps which had an impact early in the year. To maintain the staff is important for giving the consistency to the care in the service.

  1. Supported Living: This is potentially the service we would be able to expand further in a short/medium term. We have 2 more years ofthis contract with an option of4 more years. We need to keep improving our procedures and keep learning, however the culture now in this service is very Diagrama now.

  2. Ducklys is going over our expectation in our projections. We are in the process of developing the site. Firstly, we are putting everything in order as it has had no investment in a long time. After that we are planning of increasing the care service upgrading the different buildings for including two homes for supporting living. Apart of that we are also exploring to develop the rest of the land as there has beena lot of interest from different LAs for us to deliver day activities services.

Children Services. We still feel that the field is very instable and is always the most uncertain service in the group. Our staff are working very hard to find the way to develop the service and is taking longer than we expected. It would be very good to increase foster and adopter families, but the situation changes all the time due to the politics around them.

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 £7,037,733, while income received was £7,794,917 meaning there was a net inflow of funds during the year of £757,184. As a result of this the group had net assets at the year end of £2,912,567 compared to net assets at the end of 2022 of £2,155,384. 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 2023 is £330,644, and a gift aid distribution to the parent charity of £321,632 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 2023 is £5,488.

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 2023 is £1,014,853, and a gift aid distribution to the parent charity of £1,408,347 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 2023 is £7,680, and a gift aid donation to the parent charity of £92,077 was made.

8

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

TRUSTEES REPORT

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.

Going concern

The financial statements for the year ended 31 March 2023 show an overall surplus in funds of £2,912,567 made up of unrestricted reserves of £980,944 and a revaluation reserve of £1,925,296. Net current assets at the yearend stood at £1,953,994. As set out further in note 22, the post year-end financial performance has been strong. Consequently, the accounts have been prepared on a going concern basis.

Statement of Disclosure to Auditors

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

----- Start of picture text -----
Date: % / 2 | wad Ch 3
----- End of picture text -----

9

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

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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.

10

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 2023 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 isa 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.

11

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

12

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:

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.

13

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.

Thomas Roach FCA (Senior Statutory Auditor) PKF Francis Clark

Chartered Accountants and Statutory Auditor

Lowin House

Tregolls Road Truro Cornwall TR1 2NA

----- Start of picture text -----
Date: earls
----- End of picture text -----

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

14

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

FOR THE YEAR ENDED 31 MARCH 2023

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

Unrestricted Restricted 2023
funds funds Total
Notes £ £ £
Income and Endowments from:
Donations and legacies 2 534,263 11,480 545,743
Other trading activities 3 7,222,992 - 7,222,992
Covid-19 Income 636 - 636
Other income 4 25,546 3,975 29,521
Tee! ineeme 7,783,437 15,455 7,798,892
Expenditure on:
Raising funds 5 (6,153,001) - (6,153,001)
Charitable activities 6 (866,596) (21,367) (887,963)
Other expenditure (745) - (745)
Total expenditure
P		 (7,020,342) (21,367) (7,041,709)
Net (expenditure)/income 763,095 (5,912) 757,183
Transfers
Transfers between funds 24/25 (7,868) 7,868 ;
Net(expenditure)/income before
other recognised gains and losses		 755,227 1,956 757,183
Other recognised gains/losses
Gains on revaluation of fixed assets 13 - - -
(Losses)/gains on investment assets - - -
Net movement in funds 755,227 1,956 757,183
Reconciliation offunds
Total funds brought forward 2,151,013 4,371 2,155,384
Total
f
ied
f
r
otal
fundscarriedforward		 2,906,240 6,327 . 2,912,567

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

15

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

FOR THE YEAR ENDED 31 MARCH 2023

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

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Unrestricted|Restricted|2023| |funds|funds|Total| |Notes|£|£|£| |Income|and|Endowments|from:| |Donations|and|legacies|25|2,326,513|11,480|2,337,993| |Other|trading|activities|100,558|3,975|104,533| |Totalotal|incomeinco|2,427,071|11,480|2,442,526| |Expenditure|on:| |Charitable|activities|25|(1,140,155)|(21,367)|(1,161,522)| |Total|expenditureP|(1,140,155)|(21,367)|(1,161,522)| |Net|(expenditure)/income|1,286,916|(5,912)|1,281,004| |Transfers| |Transfers|between|funds|(7,868)|7,868|-| |Net (expenditure)/income|before|4,279,048|1,956|4,281,004| |other|recognised|gains|and|losses| |Other|recognised|gains/losses| |Gains|on|revaluation|of|fixed|assets|-|-|-| |(Losses)/gains|on|investment|assets|-|-|-| |Net|movement|in|funds|1,279,048|1,956|1,281,004| |Reconciliation|of|funds| |Total|funds|brought forward|473,184|4,371|477,555| |Total funds|carried|forward|1,752,232|6,327|1,758,559|

----- End of picture text -----

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

16

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION

(A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2023

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

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

----- End of picture text -----

17

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

FOR THE YEAR ENDED 31 MARCH 2023

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

Unrestricted Restricted Restricted 2022
funds funds Total
£ £ £
Income and Endowments from:
Donations and legacies 1,441,901 21,618 1,463,519
Other trading activities 35,369 = 35,369
Total income 1,477,270 21,618 1,498,888
Expenditure on:
Charitable activities (511,267) (17,247) (528,513)
Tata! expengitute (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 4,374 970,374
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 of funds
Totalfunds broughtforward (946,775) - (946,775)
.
f
Totalfundscarriedforward		 TT
473,184		 TT 4,371 TT
477,555

18

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

FOR THE YEAR ENDED 31 MARCH 2023

CONSOLIDATED AND PARENT CHARITY BALANCE SHEET AS AT 31 MARCH 2023

Group Group Charity Charity
2023 2022 2023 2022
Notes £ £ £ £
Fixed assets
Tangible assets 13/14 6,351,833 4,830,375 6,297,710 4,767,785
Investments 15 - - 901,402 901,402
Intangible assets 11/12 115,039 187,995 65,583 89,084
6,466,872 5,018,370 7,264,695 5,758,271
Current assets
Debtors 16 465,829 419,026 15,697 90,527
Cash at bank and in hand 2,099,027 1,719,334 103,796 45,162
2,564,856 2,138,360 119,493 135,689
Grenier:aioetelling
due within one year		 17 (610,862) (698,161) (3,790,182) (2,367,901)
Net current assets/ 1,953,994 1,440,199 (3,670,689) (2,232,212)
(liabilities)
Total assets less current
liabilities 8,420,866 6,458,569 3,594,006 3,526,059
Creditors: amounts falling
due after more than one 19 (5,507,592) (4,303,223) (1,835,447) (3,048,504)
year
Provisions for Liabilities (707) 38 = -
Net assets/ (liabilities) 2,912,567 2,155,384 1,758,559 477,555
Funds
Restricted income funds 25 6,327 4,371 6,327 4,371
Unrestricted income funds 24 980,944 225,717 (173,064) (1,452,112)
Revaluation reserve 1,925,296 1,925,296 1,925,296 1,925,296
Total funds
2,912,567 2,155,384 1,758,559 477,555

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

19

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

FOR THE YEAR ENDED 31 MARCH 2023

CONSOLIDATED AND PARENT CHARITY BALANCE SHEET (continued) AS AT 31 MARCH 2023

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

Mr Francisco Legaz Cervantes Trustee

Registered company number: 06396577

20

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

FOR THE YEAR ENDED 31 MARCH 2023

CONSOLIDATED CASH FLOW STATEMENT AS AT 31 MARCH 2023

2023 2022
£ £
Cash flows from operating activities
Net income/(expenditure) forthe reporting period 157,182 1,351,993
Adjustments to cash flows from non-cash items
Depreciation 32,929 (126,234)
Amortisation 72,956 72,956
Loss on disposal of tangible fixed assets 683 195
Impairment of goodwill ; -
Income tax expense 745 957
Currency exchange 82,973 (127,908)
190,286 (180,034)
Working capital adjustments
(Increase)/decrease in debtors (188,121) 476,839
Increase/(decrease) in creditors 267,951 (651,743)
Netcash flows from operating activities 1,027,298 997,055
Cash flows from investing activities
Purchase oftangible fixed assets (1,555,070) (17,057)
Sale of tangible fixed assets ; 200
Netcashflows from investing activities (1,555,070) (16,857)
Cash flows from financing activities
Value ofnew loans obtained during the period 3,743,038 -
Proceeds from issue of ordinary shares - =
Currency exchange = -
Repayment of loans and borrowings (2,835,573) (192,167)
Netcash flows from financing activities 907,465 (192,167)
Net (decrease)/increase in cash and cash equivalents 379,695 788,031
Cash and cash equivalents at 1 April 1,719,334 931,303
Cashandcashequivalentsat31March 2,099,029 1,719,334

21

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE) FOR THE YEAR ENDED 31 MARCH 2023

  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 2023.

Diagrama Foundation — Psychosocial Intervention also had three dormant subsidiaries that have prepared dormant company accounts for the year ended 31 March 2023.

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 2023 show an overall surplus in funds of £2,912,567. Net current assets at the year-end stood at £1,953,994, and the group had strong cash balances of £2,099,027. As set out further in note 22, the post year-end financial performance has been strong. The directors confirm that the parent company can continue trading for a period covering at least 12 months from the date of signing the accounts, and is able to meet its liabilities as they fall due. 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.

22

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

FOR THE YEAR ENDED 31 MARCH 2023

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.

23

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

FOR THE YEAR ENDED 31 MARCH 2023

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%straightline

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

Investment property

Investment properties are carried at fair value, with revaluation gains and losses being processed through the profit and loss account. No depreciation is provided on investment properties.

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.

24

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

FOR THE YEAR ENDED 31 MARCH 2023

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 ofthe 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.

25

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

FOR THE YEAR ENDED 31 MARCH 2023

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 ownershipofthe 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.

26

DIAGRAMA FOUNDATION — PSYCHOSOCIAL INTERVENTION (A COMPANY LIMITED BY GUARANTEE) FOR THE YEAR ENDED 31 MARCH 2023

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 2023 2022
funds funds Total Total
£ £ £ £
Donations 454,457 3,258 457,715 127,584
Grants receivable 79,806 8,222 88,028 30,415
534,263 11,480 545,743 157,999

3. Other trading activities

Unrestricted 2023 2022
funds Total Total
£ £ £
Sale of services 7,222,992 7,222,992 7,121,719
7,222,992 7,222,992 7,121,719

27

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

FOR THE YEAR ENDED 31 MARCH 2023

4. Other income

Unrestricted Restricted 2023 2022
funds funds Total Total
£ £ £ £
Other income 25,546 3,975 29,521 54,210
Covid-19 income 636 - 636 219,818
26,182 3,975 30,157 274,028
5. Raising funds
Unrestricted Restricted 2023 2022
funds funds Total Total
£ £ £ £
Costs of raising funds 6,153,000 - 6,153,000 5,786,302
6,153,000 - 6,153,000 5,786,302
6. Costs of charitable activities
Unrestricted Restricted 2023 2022
funds funds Total Total
£ £ £ £
Costs of charitable activities 838,330 21,367 859,697 379,174
Governance Costs 28,266 - 28,266 35,320
866,596 21,367 887,963 414,494

28

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

FOR THE YEAR ENDED 31 MARCH 2023

7. Trustees’ remuneration and expenses

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

Mr Francisco Legaz Cervantes

Mr Francisco Legaz Cervantes provided consultancy services to the charity in the year totalling £28,400 (2022: £19,500)

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

8.
Net incoming resources for the year
2023 2022
£ £
Net incoming resources is stated after charging:
Foreign currency (gains)/losses 82,973 (127,908)
Depreciation and other amounts written off tangible fixed assets 32,929 (126,233)
(Gains)/losses on revaluation offixed assets - (453,956)
Amortisationofgoodwill 72,956 72,956
9.
Employees
Employment costs 2023 2022
The aggregate payroll costs were as follows: £ £
Wages and salaries 4,253,919 4,048,724
Social security 375,265 347,358
Pension costs 144,492 152,608
4,773,676 4,548,690

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

2023 2022
No No
Carers, secure transportation, administration and management 191 194

29

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

FOR THE YEAR ENDED 31 MARCH 2023

The number of employees whose emoluments fell within the following bands were:

2023 2022
No No
£60,001 to £70,000 1 1

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 £178,231 (2022: £172,751).

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.

2023 2022
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
rigination and reversal of timing
differences		 (470) (275) (668) (289)

30

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

FOR THE YEAR ENDED 31 MARCH 2023

11. Intangible fixed assets

Group Goodwill Total
£ £
Cost
At 1 April 2022 960,705 960,705
At 31 March 2023 960,705 960,705
Amortisation
At 1 April 2022 772,710 772,710
Amortisation for the year 72,956 72,956
At 31 March 2023 845,666 845,666
Net book values
At 31 March 2023 115,039 115,039
At31March2022 187,995 187,995

31

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

FOR THE YEAR ENDED 31 MARCH 2023

12. Intangible fixed assets

Charity Goodwill Total
£ £
Cost
At 1 April 2022 235,006 235,006
At 31 March 2023 235,006 235,006
Amortisation
At1 April 2022 145,922 145,922
Amortisation for the year 23,501 23,501
At31 March2023 169,423 469,423
Net book values
At 31 March 2023 65,583 65,583
At31March2022 89,084 89,084

a2

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

FOR THE YEAR ENDED 31 MARCH 2023

13. Tangible fixed assets

Group Land & Office
buildings equipment Motor
freehold & fixtures vehicles Total
£ £ £ £
Cost / Valuation
At1 April 2022 4,750,000 647,621 69,171 5,466,792
Additions 1,510,182 18,398 26,490 1,555,070
Disposals - (3,431) - (3,431)
td Miench Sees 6,260,182 662,588 95,661 7,018,431
Depreciation
At1 April 2022 - 594,866 41,550 636,416
Charge for the year - 23,814 9,115 32,929
Eliminated on disposal - (2,748) - (2,748)
ALS) Maren 2023 - 615,932 50,665 666,597
BO
Net book values
At 31 March 2023 6,260,182 46,656 44,996 6,351,834
At31March2022 4,750,000 52,755 27,621 4,830,376

Revaluations

The land & buildings held in Diagrama Foundation — Psychosocial Intervention are held at a revalued amount following a revaluation on 22 April 2022 by independent qualified valuers from Knight Frank LLP.

The historical cost of the revalued properties was £4,334,886 (2022: £2,824,724). The depreciation to date on the historical cost basis is £430,488 (2022: £173,807).

33

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

FOR THE YEAR ENDED 31 MARCH 2023

14. Tangible fixed assets

Charity Land & Office
buildings equipment Motor
freehold & fixtures vehicles Total
£ £ £ £
Cost
At1 April 2022 4,750,000 433,105 29,501 5,212,606
Additions 1,510,812 - 26,490 1,536,672
At 31 March 2023 6,260,812 433,105 55,991 6,749,278
Depreciation
At 1 April 2022 - 431,995 12,825 444 820
Charge for the year - 370 6,377 6,747
At 31 March 2023 - 432,365 19,202 451,567
Net book values
At 31 March 2023 6,260,812 740 36,789 6,297,711
At31March2022 4,750,000 1,110 16,676 4,767,786

34

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

FOR THE YEAR ENDED 31 MARCH 2023

15. Fixed asset investments

15.
Fixed asset investments
Group Charity
£ £
Cost
At1 April 2022 - 901,402
At 31 March 2023 - 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
DiagramaMedwayLimited England Dormant Ordinary 100

All fixed asset investments are held within the United Kingdom.

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

Subsidiary undertakings Period End Capital & Reserves Profit/(Loss) forthe
period before tax
Diagrama Children’s Services Limited 31/03/2023 £606,929 £330,644
United Safe Care Limited 31/03/2023 (£486,259) (£5,488)
Diagrama Healthcare Services Limited 31/03/2023 £1,405,731 £1,014,853
i
dent
DiagramaSemi Independent
Limited		 Servi
Services		 31/03/2023 £04,242 £7,680
Diagrama Hassockfield Limited 31/03/2023 £100 -
Basta UK Limited 31/03/2023 £100 :
DiagramaMedwayLimited 31/03/2023 £100 -

35

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

FOR THE YEAR ENDED 31 MARCH 2023

16. Debtors

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Trade debtors 380,696 333,030 2,325 9,566
Amounts due from subsidiary undertaking - - - 59,491
Other debtors 33,365 33,365 6,580 12,393
Prepayments and accrued income 51,438 52,631 6,792 9,077
465,829 419,026 15,697 90,527
  1. Creditors: amounts falling due within one year
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Bank loans and overdraft 70,893 308,323 - 184,172
Other taxes and social security costs 86,814 94,202 9,263 5,132
Outstanding pension contributions 192 192 - -
Trade creditors 261,800 116,089 53,693 31,346
Other creditors 41,956 38,635 2,679 1,839
Amounts owed to subsidiary undertakings - - 3,622,278 2,055,656
Amounts owed to associated undertakings 83,204 76,775 83,204 76,775
Short term loans 200 200 200 200
Accruals and deferred income 65,803 63,745 18,865 12,781
610,862 698,161 3,790,182 2,367,901

The bank loan due in under 1 year in Diagrama Healthcare Services Limited totals £70,893 (2022: £124,151); the loan is secured by both a floating charge and fixed charges on all the assets held, including the properties held in Diagrama Foundation, together with a cross guarantee with this group.

36

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

FOR THE YEAR ENDED 31 MARCH 2023

18. Deferred income

18.
Deferred income
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Balance as at 1 April 183 423 - 423
Amounts released to other trading income (183) (423) - (423)
Amounts deferred in the year - 183 - -
Balance as at 31 March - 183 - -
19.
Creditors: amounts falling due
after more than one year
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Bank loan 3,672,145 2,527,250 - 1,272,531
Amounts owed to associated undertaking 1,835,447 1,775,973 1,835,447 1,775,973
Provisions 707 (38) - -
5,508,299 4,303,185 1,835,447 3,048,504
Loans
Repayableinfiveyearsormore - 461,234 - 461,234

The'bank loan due in over 1 year in Diagrama Healthcare Services Limited totals £3,672,145 (2022: £1,254,719); the loan is secured by both a floating charge and fixed charges on all the assets held, including the properties held in Diagrama Foundation, together with a cross guarantee with this group.

37

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

FOR THE YEAR ENDED 31 MARCH 2023

20. Commitments

Operating lease commitments Group

As at 31 March 2023 the group had total commitments under non-cancellable operating leases as follows:-

Operating leases which expire:

As restated
31 March 2023 31 March 2022
£ £
Land and buildings
Within one year 24,900 18,529
Between 2 and 5 years - -
24,900 18,529
Other
Within one year 11,949 21,885
Between 2 and 5 years 7,966 19,914
19,914 41,799

Operating lease commitments Charity

As at 31 March 2023 the parent charity had total commitments under non-cancellable operating leases as follows:-

Operating leases which expire:

As restated
31 March 2023 31 March 2022
£ £
Land and buildings
Within one year 24,900 18,529
Between 2 and 5 years - -
24,900 18,529
Other
Within one year - 936
Between 2 and 5 years - -
- 936

38

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

FOR THE YEAR ENDED 31 MARCH 2023

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. Fundacién Diagrama therefore have significant influence over the running of the charity.

Related party transactions — Parent charity

During the year Fundacion Diagrama provided staff and IT services to the group with an estimated value of £Nil (2022: £81,899). Diagrama Foundation — Psychosocial Intervention paid interest of £81,720 (2022: £80,634) to Fundacion Diagrama during the year. At the balance sheet date the amount due to Fundacién Diagrama was £1,918,651 (2022: £1,852,748) 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 £1,281,006 and currently has net assets of £1,758,559. The group generated a surplus of £757,184 and had net assets of £2,912,567 as at 31 March 2023.

As a result the latest management accounts to September 2023 show that the group had generated a surplus of £262,151 in the 6-month period. Post year end cash balances remain strong at £2,358,785 on 31 October 2023.

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

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 2023 as represented by:
Intangible fixed assets 115,039 - 115,039
Tangible fixed assets 6,351,834 - 6,351,834
Current assets 2,558,528 6,327 2,564,855
Current liabilities (610,862) - (610,862)
Long-term liabilities (5,508,299) - (5,508,299)
2,906,240 6,327 2,912,567

39

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

FOR THE YEAR ENDED 31 MARCH 2023

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

Unrestricted Restricted Total
funds funds funds
£ £ £
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

24. Unrestricted funds

At Other At
1 April Incoming Outgoing gains/ 31 March
2022 resources resources Transfers (losses) 2023
£ £ £ £ £ £
U tricted
Pees		 funds
ees		 — 9.151,013 7,783,437 (7,020,342) (7,868) - 2,906,240
group
U
tricted
nrestriciee
charity		 funds
tans		 — 473,184
2,427,071
(1,140,155)
ee		 (7,868) - 1,752,232

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

At Other At
1 April Incoming Outgoing gains/ 31 March
2021 resources resources Transfers (losses) 2022
£ £ £ £ £ £
icted
Unrestricted		 fund
funds		 349,435 7,532,128 (6,184,506) - 453,956 —-2,151,013
— group
Unrestricted funds
— charity (as (946,775) 1,477,270 (511,267) - 453,956 473,184
restated)

40

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

FOR THE YEAR ENDED 31 MARCH 2023

25. Restricted funds — group and charity

At Other At
1 April Incoming Outgoing gains/ 31 March
2022 resources resources Transfers (losses) 2023
£ £ £ £ £ £
Tesco bags for help 4,828 1,874 (1,980) - - 4,722
EU Projects (457) 6,348 (13,759) 7,868 - -
Co-op - 3,258 (1,653) - - 1,605
4,371 11,480 (17,392) 7,868 - 6,327

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

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

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. Co-op — the purpose of this fund is to create a garden for residents at Cabrini House.

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