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2021-03-31-accounts

THE AVENUES TRUST GROUP

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Charity Registration Number: 1130473 Company Registration Number: 03804617

THE AVENUES TRUST GROUP

Index Page
Reference and administrative details of the charity, 1-2
its advisers and trustees
Trustees’ report and strategic report 3 – 11
Strategic Report 12 - 24
Statement of trustees’ responsibilities 25
Independent auditor’s report 26 - 29
Consolidated statement of financial activities 30
Consolidated balance sheet 31
Company balance sheet 32
Consolidated statement of cash flows 33
Notes to the financial statements 34 - 58

THE AVENUES TRUST GROUP BOARD MEMBERS AND MANAGEMENT PERSONNEL

FOR THE YEAR ENDED 31 MARCH 2021

Reference and administrative details of the charity, its advisers and trustees

Chairman: Terry Rich Vice Chair: Evlynne Gilvarry (Member of the Audit Committee and Risk Committee)

Non-Executive Trustees:

Andrew Bruce Calderwood Member of HR and Nominations Committee and Quality Committee Lynne Holmes (To August 2020) Chair of HR and Nominations Committee Alistair Oag Chair of the Audit and Risk Committee and Finance Committee Mark Pittaway (To October 2021) Member of the Finance Committee Alistair Brown (From March 2021) Member of Audit and Risk Committee Nicola Bannister (From March 2021) Member of HR & Nominations Committee

Executive Trustees:

Joanne Land Nicola Ford

Key Management Personnel:

Joanne Land Group Chief Executive Nicola Ford Group Director of Finance Steven Parker Group Director of Housing and Development Daniel Gower-Smith Group Operations Director Caroline Neal Group Director of People and Organisational Development (From October 2020) Karina Hourd Group Business Development Director (From September 2020)

Company Secretary Lauren Osman

CHARITY REGISTRATION NUMBER 1130473 COMPANY REGISTRATION NUMBER 03804617

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THE AVENUES TRUST GROUP

BOARD MEMBERS AND MANAGEMENT PERSONNEL

FOR THE YEAR ENDED 31 MARCH 2021

Principal and Registered Office

River House, 1 Maidstone Road, Sidcup, Kent, DA14 5TA

Advisers

Bankers: Barclays Bank PLC, One Churchill Place, Canary Wharf, London E14 5HP Independent auditor: RSM UK Audit LLP, 25 Farringdon Street, London EC4A 4AB

Solicitors: Hempsons, 40 Villiers Street, London WC2N 6NJ; Trowers & Hamlin, 3 Bunhill Row, London EC1Y 8YZ.

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Board presents herewith its Annual Report and the Audited Financial Statements of The Avenues Trust Group for the year ended 31 March 2021. The legal and administrative information set out on pages 1-2 forms part of this report. The Financial Statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP second edition – October 2019) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS 102) applicable in the UK and in the Republic of Ireland (effective January 2019).

“Avenues”/”Avenues Group” means the Avenues Trust Group Limited and its subsidiaries.

Introduction

The Avenues Trust Group (“Avenues”) accounts for 2021 and the 2020 comparative figures are constructed in line with best practice, as set out above. Compliance with best practice extends to the need to address the “public benefit” provided by Avenues, in line with Charity Commission guidelines.

Structure, Governance and Management

Board Structure

The Avenues Group Boards operate an overlapping board governance structure. The overlapping board structure involves all of the entities within the Group sharing a core group of trustees common to all of the Boards (the majority of whom are nonexecutive) with a small number of independent trustees who sit on one but not any of the other Boards. This way of operating provides for efficiency but also the effectiveness of our governance. It increases the speed of ou r decision making, streamlines information flows and improves clarity regarding accountabilities.

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Structure

The Avenues Group is the trading name for The Avenues Trust Group and is constituted as a company limited by guarantee. The Avenues Group is also a registered charity.

The Avenues Trust Group is the ultimate holding company for Avenues South East, Avenues South (formerly Welmede Housing Association Limited) Avenues London and Avenues East. All subsidiary companies bar Avenues South are registered charities and are constituted as companies limited by guarantee; Avenues South is a Charitable Housing Association.

The names of the members of the Board of the Avenues Trust Group are listed on Page 1. The members of the Board, who for the purposes of the charity/company law are the trustees/directors of the charitable company, are appointed by the Board.

Jo Land, Group Chief Executive and Nicola Ford, Group Director of Finance are executive trustees of the Avenues Trust Group and all subsidiaries.

Membership

All directors of all boards within the Group are members of the parent entity. Membership is automatic on appointment and resignation to any board within the Group.

Governance

The Group Board meets around six times per year and more frequently if required and is responsible for determining the strategy of the organisation and for ensuring successful operational performance, in line with the expectations of stakeholders.

The Avenues Group has four committees which discuss the business of the whole Group. The committees are Audit & Risk, Finance, HR & Nominations and Quality, Local Focus and Engagement. Committees report directly to all the Boards within the Avenues Group.

The Audit & Risk committee, in line with good governance principles, is expected to bring a further degree of detachment from the Board’s responsibilities in discharging its distinctive duties. The committee oversees all systems, controls and processes that may have an impact on the ability to meet our aims.

The Finance committee provides an additional layer of oversight regarding any financial matters that may have a significant impact on the charity.

The HR & Nominations committee provides assurance to the Avenues Group Boards that the

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Governance (Continued)

Avenues Group has an effective People and Pay Strategy in place, promoting an effective, high performing and diverse workforce. The committee also oversees issues relating to the remuneration of staff, with specific responsibility for making recommendations to the Boards regarding the Group Remuneration Policy and the Executive Management Team’s remuneration .

In addition, the committee is responsible for linking the Group’s strategy to future changes on the Boards whilst giving full consideration to succession planning for directors and other senior executives in the course of its work.

The Quality, Local Focus and Engagement committee (QLE) provides assurance to the Avenues Group Boards regarding the quality of our services and the engagement of the people we support across the organisation is our priority and so this committee was introduced to provide assurance to the board(s) around the operational delivery of quality support. Our aspiration is that the support we provide enables people to maximize their independence and opportunities whilst keeping them safe.

The committee will also find the best way to engage with all stakeholders within particular regions, ensuring their voices are heard so they are involved in the setting of the organisation’s goals, quality and culture.

Avenues Group has made qualifying third party indemnity provisions for the benefit of its trustees.

The Charity Governance Code

The Avenues Group recognises the importance of good governance and uses the Charity Governance Code to inform any reviews and changes to all governance policies. All trustees are made aware upon appointment of their responsibilities under the Code.

In our efforts to strive to be the best we can be in governance we have used the Code to undertake board and trustee appraisals, making sure that the principles of our appraisal tools are based on and support the guidelines and recommendations outlined in the Code.

All of our trustees are selected in a manner consistent with the organisation's recruitment, diversity and equality policies, ensuring that the selection process is both time and cost effective. Our trustees serve a period of four years, with an option to extend for a further four years. In addition to making direct approaches to suitable candidates Avenues may advertise for trustees through notice boards, network recruitment or in the media. When a recruitment need is identified the Company Secretary will work with the board or committee

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Charity Governance Code (continued)

to carry out a skills audit before a recruitment campaign begins. Policies and procedures are in place for the induction and training of new trustees. Training needs are continuously identified through board/committee discussions and surveys and board and trustee appraisals. When a training need is identified we organise externally facilitated training sessions. In 2020 we identified the need for the following training; Health & Safety and safeguarding responsibilities and Finance and Risk at a board level and these sessions were externally facilitated.

Data Protection Compliance

The Avenues Group Boards have continued to help ensure our compliance with UK data Protection Laws following Brexit. Avenues has always taken data protection seriously and we continue to strengthen our policies and procedures to ensure that the protection of people's information remains a high priority. In 2020 we commissioned an internal audit review of our GDPR compliance which resulted in reasonable assurance.

Our Employees

In line with the vision of The Avenues Trust Group, we are committed to ensuring that all job applicants and employees are treated fairly in line with our equality of opportunities, diversity and fair treatment policy and procedure.

We value diversity and social inclusion across all of our activities and our recruitment process ensures that all applicants have equality of opportunity, are treated with respect and with dignity and are checked properly and screened to ensure that they are fit and suitable to work with vulnerable people.

In the event of a change in an employee’s health, in accordance with our sickness absence policy, we would work with occupational health and the individual to establish whether this constitutes a disability and in the event it did, we would continue to work with them to make every reasonable effort to sustain ongoing employment.

Employee communication and engagement is key to the success of the Group. Through good local management and our communications team, we ensure that all employees are kept informed about the charity’s strategy, objectives and performance, as well as day-to-day news and events. Regular information about the organisation is available through newsletters, online resources, team meetings and management briefings.

The Equality and Diversity (“E&D”) steering group is comprised of staff and people we support from across the organisation. This allows for two way communication and the chair has direct access to the CEO. During 2020/21 this has led to an increased profile for E&D in

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Our Employees (Continued)

the organisation, linking with HR and Nominations committee, raising the profile of the steering group and leading to an express focus on progressive Equality,

Diversity &Inclusion. This has led to the creation of special interest subgroups including a trustee recruitment special interest group.

All employees are encouraged to give their suggestions for improvement and views on performance and on strategy.

Public Benefit

The Avenues Group specialises in providing complex support, most commonly working with people who have a profound learning disability, autism, or acquired brain injury.

The majority of our work is commissioned by local government and the NHS, and delivered through community-based Supported Living; a methodology which is recognised to deliver better outcomes and significant savings to the public purse when compared to traditional residential and clinical alternatives.

The Avenues Group supports more than 600 people to enjoy community-based life, and employs more than 1,600 staff.

The coronavirus pandemic demonstrated what an exceptional workforce we have, and our culture means we will not allow external challenges to inhibit the lives of the people we support.

Our aspiration is not to manage people’s lives, but to understand what really matters to them and unlock the opportunities they want to take. But no provider can do this effectively in isolation.

Quality is of paramount importance to Avenues. It’s central to all our plans and we work with the Tizard Centre to audit our standards. At a statutory level we are regulated by the Care Quality Commission.

Performance is reliant on all employees' shared ambition to make a positive difference to the lives of people we support, so recruitment is based on aptitude - regardless of previous experience. Staff complete mandatory training, as well as specialist courses based on the needs of the people, we provide services to.

We always take into account shared interests when matching staff to people they might support. This means support is personalised and encourages retention and consistency. Staff take time to get to know people, supporting them to do things differently or for the first time, working out what matters to them and what they enjoy.

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Public Benefit (Continued)

Avenues is committed to developing the way it supports its staff, as we know that wellsupported people support people well.

We continue to work with the University of Kent on mindfulness packages to strengthen employee wellbeing, and professional training around positive behaviour support. This advances the efficacy of the care we provide and therefore reduce people's support needs over time.

The trustees of the Avenues Group have read the Charity Commission guidance on public benefit and have paid due regard to the guidance in preparing their statements on public benefit in this report.

Investment Policy

The Group’s current investment policy is to place surplus cash requirements on the money market both overnight and for longer periods, earning interest at the money market rates at the time of placement.

Related Parties

The Avenues Trust Group has the following wholly owned subsidiary entities, all limited by guarantee, with the exception of Avenues South which is limited by Share Capital: Avenues South East Limited (Company number 3923486)

The Group works on the basis of an overlapping board structure as outlined above in the board structure. The table below identified core trustees (who sit on each board within the Avenues Group) and independent trustees (who sit on only one subsidiary board). The independent trustees manage conflicts of interest across the group. There are minimal related parties however registers are maintained see note 18. The table below identifies core and independent trustees for each board.

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Related Parties (continued)

Group London South East East South
Trustee Core
Independent Independent Independent Independent Independent
Alistair Brown
Alistair Oag
Bruce Calderwood
Cathryn Law
Emma Keegan
Evlynne Gilvarry
Jo Land(Exec)
Mark Pittaway
Martin Owen
Myles Kaplan
Nicola Bannister
Nicola Ford(Exec)
Peter Hepburn
Rich Hodgson
Terry Rich

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Carbon and Energy Reporting

As a large qualifying group, The Avenues Group is required to report its energy use and carbon emissions in accordance with the Companies Regulations 2018 because it meets the thresholds for reporting. Other subsidiaries in the Group do not meet the thresholds for reporting and are not required to report individually.

The energy use and carbon emissions for the Group for the year ended 31 March 2021 and 2020 comparatives are as follows:

Energy Source Consumption Scope Emissions calculation 2020/21 Emissions calculation 2019/20
Gas – total kWh (kilowatt-hours) used
for the year taken from gas bills		 180,808 kWh (gross CV
(calorific value))		 Scope 1 180,808 kWh * 0.18316 (2021
fuels, natural gas conversion factor
gross CV to kg Co2e)= 33,117
kgCO2e= 33.12 tCO2e		 1,487,227 kWh * 0.18387 (2020 fuels, natural gas
conversion factor gross CV to kg Co2e)= 273,456
kgCO2e= 273.46 tCO2e
Electricity – total kWh used for the
year, taken from the electricity bills		 779,310 kWh Scope 2 779,310 kWh * 0.21233 (2021
electricity conversion factor to
kgCO2e) = 165,471 kgCO2e=
165.47 tCO2e		 840,085 kWh * 0.23314 (2020 electricity
conversion factor to kgCO2e) = 195,857 kgCO2e=
195.86 tCO2e
Transport – 6,170 miles in the year 6,170 miles * 1.1217 (2021
SECR kWh pass & delivery
vehs, cars - average and
unknown fuel)= 6,920 kWh		 Scope 1 6,170 miles 0.27596 (2021
managed assets vehicles, average
car conversion factor to kgCO2e)=
1,703 kgCO2e= 1.70 tCO2e*		 81,000 miles * 0.27584 (2020 managed assets
vehicles, average car conversion factor to kgCO2e)=
22,343 kgCO2e= 22.34 tCO2e
Transport – People carriers/vans -
51,336 miles in the year		 51,336 miles * 1.71004
(2021 SECR kWh pass &
delivery vehs, vans class 3 –
used in lieu of passenger
vehicles conversion)=
87,786 kWh		 Scope 1 51,336 miles = 82,617km 82,617km
0.26529 (2021 managed assets
vehicles, vans class 3 – used in lieu
of passenger vehicles conversion)=
21,917 kgCO2e= 21.92 tCO2e*
239,000 miles = 384,633 km 384,633 km * 0.27171
(2020 managed assets vehicles, vans class 3 – used
in lieu of passenger vehicles conversion)= 104,509
kgCO2e= 104.51 tCO2e
Transport – total mileage reimbursed
from staff claims = 99,639 miles		 99,639 miles * 1.1217
(2021 SECR kWh pass &
delivery vehs, average car
conversion factor to
kWh)=111,765 kWh		 Scope 3 99,639 miles * 0.27596 (2021
managed assets vehicles, average
car conversion factor to kgCO2e)=
27,496 kgCO2e= 27.50 tCO2e		 310,933 miles * 0.27584 (2020 managed assets
vehicles, average car conversion factor to kgCO2e)=
85,768 kgCO2e= 85.77 tCO2e
Total 1,116,589 kWh 249.71 tCO2e 3,175,057 kWh 681.94 tCO2e
Intensity ratio Emissions data (tCO2e)
compared with an
appropriate business
activity (Average FTE)		 249.71 tCO2e/1,029 FTE= 0.24
tCO2e per FTE		 681.94 tCO2e/1,210 FTE= 0.56 tCO2e per FTE

Methodology

The data detailed in this table represents energy use and emissions for which The Avenues Group is responsible for the period 1 April 2020 to 31 March 2021. It includes the metered electricity and gas used in our properties, and emissions from fuel used in vehicles on company business (both private and leased). For leased vehicles this has been estimated based on the contractual mileage where actuals were not available. These are the energy use and emissions sources required by the regulations for large unquoted organisations. We have used the main requirements of the GHG Protocol Corporate Accounting and Reporting Standard as our emissions calculation methodology. This methodology recommends that emissions are calculated by multiplying activity data (for example energy use in kWh) by an appropriate conversion factor.

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Carbon and Energy Reporting (Continued)

We have used the UK government GHG conversion factors for company reporting 2021 to calculate our emissions.

Our emissions intensity is reported by full-time employee (FTE). This is because our employee numbers are directly related to our business activities, as increased business may result in higher FTE numbers. These intensity metrics allow comparison of our energy efficiency performance over time.

The Streamlined Energy and Carbon Reporting (SECR) regulations apply to company financial years starting on or after 1 April 2019.

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

STRATEGIC REPORT

Objectives and Activities

The charitable objects of The Avenues Trust Group and its subsidiaries are for the public benefit as they support and promote the intellectual, emotional, physical and spiritual welfare of people aged nine and upward with complex support needs. This is achieved by providing professional, high quality, not-for-profit services to people, supporting them to enjoy their lives within their communities.

The governing instruments for the Avenues Trust Group and the subsidiary entities are their respective Articles of Association, with the exception of Avenues South which is governed under its Model Rules.

Strategy

Avenues has always gone the extra mile to provide the best support to people with profound and multiple learning disabilities, autism and acquired brain injury. Our strategy for 2021-25 ‘Building Better Lives Together’ will mean we are able to continue to provide our unique support for the long term; and offer it to more people, in more places.

Over the lifetime of this strategy, our digital journey and use of technology will afford us the opportunity to promote greater independence for the people we support whilst also improving our operations. We will continue to build a justified reputation for supporting even more people to flourish, regardless of the challenge.

Avenues is a community of people; those supported, their families, the people who work for us and others. All their voices must be heard. We will find new ways for everyone to appropriately influence how we make best use of the funding we have, and make sure people continue to smile, laugh and grow.

By 2025 we will …

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Strategy (Continued)

We will continue to go the extra mile.

Section 172 (1) of the Companies Act 2006

Under Section 172 of the Companies Act 2006 the Board of Trustees, (who are also directors of The Avenues Trust Group for the purposes of company law), have a duty to promote the long term success of The Avenues Group. They have done that during 2020/21 by duly considering the impact of the decisions they make on the future of the Group. All key decisions that will have an impact on the long-term future of the Group are discussed at the relevant sub-committees and Boards. They have taken into account the view of different stakeholder groups who will be affected by the decisions and have weighed and considered the different options that were available to the Group on each occasion. The Boards believe they have acted throughout the year in the best interests of the Group and in a manner, which will bring about long term success.

The trustees consider the key stakeholder groups for The Avenues Group to be the people it supports and their families, friends and advocates, its employees, its competitors, its funders and its suppliers.

The impact of major decisions on staff are discussed at the HR & Nominations committee and the Boards who also received regular updates on staff pay, health and safety and safeguarding.

The Boards receive a summary of the biennial staff engagement survey which highlights both strengths and areas for potential improvement on employment matters and how these will be mitigated through specific actions.

The quality of our services and the engagement of the people we support across the organisation is our priority and so the Quality, Local Focus and Engagement committee was introduced to provide assurance to the Boards) around the operational delivery of quality support. This committee engages with stakeholders at all levels and reviews and obtains assurance relating to complaints and compliments. This committee provides a mechanism to make sure that stakeholders are involved in

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

the setting of the organisations goals, quality and culture. The committee is made up of trustees, parents of people we support and a qualified social worker. New Directions is a subgroup of this committee made up of people we support who meet to review and discuss Avenues Group and give their ideas for its future. As part of this they have recommended a similar group per subsidiary which is being reviewed.

To develop and maintain strong business relationships, The Avenues Group collaborates regularly with Local Authorities and CCGs and its competitors through face to face meetings and roundtable discussions. Avenues recognises the benefit of working together, not just for the people we support and our employees but the wider adult social care provision. We have many examples where through joint working projects we have achieved better outcomes for the people we support. We have been working with Surrey County Council to develop a joint strategy that will not only see the modernisation of the housing provision but will offer a wider choice of support and accommodation solutions that will be fit for the future for adults with a learning disability. We can only achieve such great outcomes by bringing together the skills, knowledge and experience of both parties. The Avenues Group management team have also worked closely with Local Authorities to share lived experiences of services where we support people with challenging behaviour to help shape tenders and ensure high quality service provision.

Avenues put the people we support at the centre of everything we do, ensuring individuals have meaningful plans, including communication needs, recorded in ways that are accessible for them. All individuals have a Service User Guide which details the expectations of both parties and a copy of our Complaints Procedure, although we try to anticipate issues and challenges, taking steps to address them at the earliest opportunity, preventing issues becoming too problematic. High quality care and support exists where people using social care have informed choice and control, with as much involvement in decisions about their care and support as they want to have.

Senior Operations Managers are responsible for ensuring that user involvement is positively encouraged through genuine involvement in shaping and providing feedback. We hold regular forums to understand the experiences of the carers and people who are in the individual’s circle of support. This enables us to develop the service in a meaningful and informed way. As with user involvement, it is important that stakeholders, such as families, friends and professionals, involved in individuals lives are encouraged to be involved in decisions about the care and support provided.

We acknowledge that the wider public and mainstream services have a real part to play in the lives of the individual and we prepare the local community to accepting the schemes as valued resources. For example, we encourage individuals to develop

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

relationships with their neighbours and others within their local community and always reinforce the message that we intend to support them to be good and involved citizens.

The trustees and the Executive Management Team have now published the 2021/25 strategic plan for Avenues group. The year one plan is operational and the overall plan will help to ensure the long term success of the Avenues group via the New Directions.

Risk Management

The Boards of the Avenues Group operate a formal risk management process and risk register, which involves continuous review of the risks identified and those emerging, their potential impact and means of mitigation. The risk register is reviewed by the group Audit Committee, which, in turn, reports on risk to the Avenues Group Boards on a quarterly basis.

The key risks identified for 2020/21 were Brexit and the coronavirus pandemic impact. All necessary measures have been taken to mitigate these risks going forward, which included the setting up of specific working parties for both Brexit and the coronavirus pandemic and reviewing all guidance provided by the government and other bodies. The national issue of potential back-pay liabilities in relation to sleep-ins was eradicated following the Supreme Court’s dismissal of the appeals against the Court of Appeal judgement.

Principal Risks and Uncertainties - Coronavirus

As the financial year started our sector, the nation and indeed world were still trying to understand what the coronavirus pandemic would mean and moreover, how we would navigate through it.

Every step, and every decision, was taken to keep the people we support and our staff teams safe and well and in line with the current guidelines. We know that well supported people, support people well and we have made every effort to make sure our teams have had everything they need to maintain their own resilience and wellbeing, so that they can continue to provide the support people deserve.

In response to the emerging pandemic, The Avenues Trust Group set up the “COVID-19 management team”. The group is chaired by the Group Director of Operations and includes members from all key areas of the organisation.

Initially the group met bi-weekly and changed the frequency as required and at its peak this was daily. The group applied the theory of a graded response meaning that actions changed as information, data or guidance from central Government was

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Principal Risks and Uncertainties – Coronavirus (Continued)

issued and that we didn’t go to the most restrictive solution if it wasn’t required at that time.

Communication and support didn’t just come from within Avenues and it was clear that the sector needed to support each other. We encouraged managers to join external sessions:

Directors collaborated with other social care organisations to share lessons learnt, our approach and to offer additional support.

Data is collected from front line managers to enable services/teams to be risk rated to ensure the required dedicated management support is deployed to make certain a safe service is delivered. The data included, but not limited to:

A separate CV19 risk register was developed and updated weekly relating to actions taken to support the organisation and managing risks. The risk register and reports were shared with the Avenues Group Boards.

Policies and procedures were reviewed in light of coronavirus pandemic and where changes were required, they were agreed via the COVID-19 Oversight Group and documented. The Policy Review Group (PRG) monitored progress, managed updates and ensured the organisation takes action as required. Updated policies and procedures have been reissued.

Personal Protective Equipment (PPE) continues to require a significant level of management oversight. We have at least, a minimum, of four month’s supply of the required PPE supported by monthly stock takes. Central repeat orders were placed as

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Principal Risks and Uncertainties – Coronavirus (Continued)

required to maintain a minimum levels. All registered locations made full use of the governments’ supply chain.

A key part to successful management of the coronavirus included prompt infection control practice. In addition to the use of PPE and deep cleans as required, the level of cleaning was increased and visitors stopped as per government guidelines. Staff movement was minimised and steps were taken to ensure that the same staff worked with each other where possible.

In the event of two or more confirmed cases within a service a Task Force meeting has been convened to ensure the required support and action is taken. The main aim was to ensure that the required support was provided to the affected team.

We reviewed our approach to occupational sick pay and in line with government funding, employees were paid their normal salary for all sickness and time away from work due to coronavirus.

Testing for the people we support and employees has always been a top priority and we have always followed the government advice in all settings. We recognised early on that regular testing was required, not only to ensure our operational teams were not spreading the virus but also to enable us to manage any outbreaks. We requested weekly testing of all staff ahead of the Government advice where such facilities were available. Testing for people we support, has been a challenge and Avenues follow the Government advice for each setting. The size of our individual services is such that where we had outbreaks, they could be contained more easily to minimise the spread and impact.

The organisation is supportive of the vaccine programme for both the people we support and employees. To ensure, as far as possible, the workforce is able to have the vaccine, we have paid employees for their time and travel to have the vaccine where required.

We have shared, relevant accessible information for the people we support. This was communicate to Service Managers and copies saved to the CV19 Intranet for use.

The Group wide Business Continuity Plan was reviewed at the start of the pandemic and has remained under regular review.

Finally, whilst we were all learning as we navigated through the pandemic the CV19

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TRUSTEES’ REPORT AND STRATEGIC REPORT

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Principal Risks and Uncertainties – Coronavirus (Continued)

Oversight Group, chaired by Avenues Learning and Development Manager completed our lessons learnt exercise based on our experience and feedback. As a result of this work, changes were made both with regards to the coronavirus management but in other areas of the organisation.

Throughout this period we have been astounded by the determination, resilience and compassion of our staff, whose professionalism has been pivotal in keeping people with complex health needs safe at home, protecting NHS beds for the critically ill.

See Going Concern on page 22 for financial risk assessment.

Achievements and Performance

Avenues' reputation for delivering high-quality services established us as a key player in the Transforming Care programme, and strengthened our relationship with NHS England.

This means all Avenues subsidiaries are well positioned to deliver new complex services which move people from secure locations back into their home communities, alongside the continuation of the outstanding support provided to existing service users, fulfilling the Group's vision,

As well as our ambition to support people for the long term, we continue to offer genuine career prospects to employees and positive succession planning.

Our commitment to quality has continued through our strategic partnership with the University of Kent, focusing on the promotion of positive behavioural support and active support - both approaches that are demonstratively effective in supporting the people that Avenues work with.

During the year we were successful in winning a contract to provide Positive Behaviour Services to four people in the London Borough of Haringey, opening the service in August 2020. The individuals living there have a variety of complex support needs, with some having spent significant amounts of time in Assessment and Treatment Units. The individuals have, at their own pace, been becoming part of their local community, and participating in ordinary activities. This is the type of provision we aim to provide more of in the future.

Over the past year we have continued to develop our other services of this type across our subsidiaries, proving once again that people with the highest support needs, and most challenging behaviour, can enjoy better lives through tailored, community-based support that brings significant savings to the public purse.

Page | 18

AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Achievements and Performance (Continued)

The Avenues Trust Group has a monthly balanced scorecard which is used for reporting to management and trustees. Within this are Key Performance Indicators for each strand of the Strategic plan as follows;

Better Lives/Quality

The first priority of the plan is to ensure that the lives of the people we support continually improve. A good indicator of this is percentage of employees trained in Active support. The 2019/20 target was 30% for the year ended 31 March 2020 we achieved 24%. This was still a priority for 2020/21 however delivery was significantly impacted by coronavirus. Our aim for 2021/22 is to review and improve the Quality of Life for each individual we support. We aim to achieve a completed evaluation of all services by the end of 21/22. To support this target we are working through an extensive Positive Behaviour Support Project which enables us to collect baseline data. This data will be comparably reviewed for the years ahead and allow Avenues to provide and demonstrate significant improvements in the lives of the people we support.

Better Jobs

Our second priority is to continually improve the experience of working for us. We have a target of 80% of experienced employees to be retained. For the year ended 31 March 2021 this stood at 80% (March 2019: 77%).

Better Business

The final strand of our strategic plan is Better Business. This is being measured by the percentage of services that are making a loss before central costs. The target for this is less than 5%, however at 31 March 2021, 9.3% of services were making a loss before central costs (reduced from 13% at March 2020). This includes services under review together with newly established services which are expected to make a surplus going forward.

Financial Results for the Year Ended 31 March 2021

The income and expenditure performance of the Group in 2020/21, shows income of £46.7m and a surplus of £1.2m (compared to a deficit of £1.2m in the prior year).

Total income for the year increased by £3.1m (7%) and expenditure has increased by £1m (2.3%), excluding loss on sale of fixed assets.

Page | 19

AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Financial Results for the Year Ended 31 March 2021 (Continued)

The consolidated balance sheet shows total group funds of £5.3m compared to £5.6m as at March 2020. This includes the impact of the revaluation of the Social Housing Pension Scheme (SHPS) pension liability of £1.5m.

The consolidated Group had gone into 2020/21 with a small surplus budget. This is a key deliverable of the 2021/25 strategic plan and the Executive Management Team.

Reserves Policy

As part of the 2021-25 strategic planning processes conducted in 2020/21, the Avenues Group Board carried out a thorough review of the reserves requirement and policy to ensure these are adequate to support the Group going forward.

As a contract based service provider, the Avenues Group Board have concluded that the Group does not need to carry significant levels of reserves. However, the free reserves available need to be sufficient to mitigate against any significant organisational risks as identified via the risk management procedures whilst enabling the group to capitalise on opportunities and deliver the 4 year strategic plan ensuring sustainability for the future. Based on this revised reserve policy the Board has concluded that the target for free reserves should be £1.5m. This has been considered by the Audit and Risk Committee in June 2021 and deemed to be still appropriate.

Subsidiaries

This reserves policy is established at a Group level.

Reserves were as follows at March 2021: £’000
-
General		 6,231
-
Designated		 75
-
Pension scheme		 (2,294)
-
Restricted		 1,296
TOTAL RESERVES 5,308
Less unrestricted tangible fixed assets held for charities own use (5,563)
Less restricted reserves (1,296)
Less designated reserves (75)
FREE RESERVES(Deficit) (1,626)

Free reserves are therefore NIL.

Tangible fixed assets are stated after netting off capital grant liability.

Page | 20

AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Reserves Policy (Continued)

Restricted funds do not form part of general reserves as these have been received from funders/donors for specific projects/purposes and are therefore not freely available for use by the group.

Designated reserves of £75k relate to a legacy left to Avenues in relation to a person supported at Chelsham Lodge. The trustees have decided that the legacy should be used for this person, as such a designated fund has been set up.

£5,563k related to amounts invested in fixed assets and these reserves can only be realised on disposal.

One of the aims of the 2021/25 strategic plan is financial sustainability and the creation of free reserves which will be achieved by asset disposals and the consistent delivery of financial surpluses. Over the life of this plan we expect to achieve sustainable surpluses to create free reserves will be used to weather the social care sector storms and enable the Group to make strategic choices.

The free reserves held at the balance sheet date remain below the target set by the Board and reserves policy.

Risks to Funding/Financial Climate

In the event of the sudden closure/liquidation of the group any outstanding commitments and liabilities would be funded by the sale of properties.

Liquidity and Working Capital

Whilst the reserves policy sets a target for free reserves it is recognised that this does not create liquidity within the group and the Board would also like to address this and have set a target for this of £1m which have now been met in 2020-21. The group will continue to work to improve its position to build sustainable services and grow the charity.

The current working capital position of the group is:

2020/21 £2.0m (2019/20 £1.1m)

Page | 21

AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Going Concern

The primary objective for 2020/21 was to eliminate the annual deficit in line with the strategic plan 2018-21 and to consolidate the financial strength of the group to capitalise on future opportunities and build long term sustainability. In order to achieve this a number of initiatives have been undertaken during 2020/21:

The above measures and increased scrutiny around monthly financial results and deviation from budgets mean that a small surplus is expected in 2021/22.

The Avenues Group operates within a cross guarantee arrangement and cash is pooled across the group to service working capital requirements.

As part of the going concern assessment, we have considered the ongoing financial impact of coronavirus in terms of operating performance and cashflow. We believe the funding support from Government coupled with the measures taken by the organisation in response to the coronavirus pandemic mean that the negative financial impact of the virus is mitigated and at this time does not represent a financial or going concern risk.

We have sufficient contingency funds in place to cover existing coronavirus related voids and should there be another wave we believe we are well placed to deal with it and minimise the overall impact on the Group and as a result the financial position of the Group.

Avenues holds a significant number of long term contracts and provides a very high quality of service provision, which ensures continued success in securing new contracts and retaining existing ones. With this in mind, whilst there are significant challenges within the sector, particularly around recruitment of staff, Avenues is well placed for the future.

The impact of potential sleep-in payments on going concern has been considered following the Supreme Court decision in the Mencap case which clarifies there is no liability for any back pay relating to sleep-in payments.

Page | 22

AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Future Developments

2020/21 is the last year of the three year Strategic Plan for the Group. Our strategy for 2021-25, Building Better Lives Together’, will mean we are able to continue to provide our unique support for the long term; and offer it to more people, in more places.

Our approach will remain centred on supporting more people with learning disabilities and/or autism whose behaviour challenges, while ensuring ongoing quality of services for those we already work with.

This commitment to quality will be supported by our renewed relationship with the University of Kent, particularly around training in positive behavioural support and active support. Getting these areas right is essential to our aspiration of delivering increasingly high-quality services for people with the most complex needs.

Recruitment and retention of a high quality workforce in the sector and for the Group remains an ongoing challenge. Despite the challenges brought about by the pandemic, Avenues was able to make an investment to improve the salaries of our employees and differentiate ourselves in the employment market. As a result of this investment, and the benefits of working in social care in the context of the pandemic and its associated restrictions, we have seen a material upturn in interest in the opportunities that we offer and have been successful in converting that interest into meaningful employment for people. As conditions change and other sectors reopen we anticipate some difficulties in sustaining some of the positive impacts we have achieved in the longer term and we are developing strategies that build on our experiences and learning from 2020/21 to enable us to maintain and further develop our successes where possible.

2020/21 saw the establishment of a business development function led by a Director of Business Development, appointed with significant sector experience of business development. During the coming year we anticipate a busy year of development opportunities which we will be well placed to respond to.

We will continue to address the agency spend and level of voids across the group via focus groups. To date this had a positive impact on both quality and costs which we expect to continue.

We are looking to increase use of digital solutions and the aspiration of operating paperless offices as far as practicable. We will work to ensure that use of technology allows us to compete effectively in current business environment and to invest time saved from more efficient administrative processes in continuous improvement of our services.

Page | 23

AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Avenues provides high-quality, cost effective and successful community-based alternatives to institutional care. As well as hugely improving people’s quality of life, we offer rewarding long-term employment and careers. People are at the centre of everything we do.

These are challenging times for society and the sector, but we are confident that we have the strategy and people in place to become even more resilient, and deliver our vision to more people who need our unique support.

The Trustees’ Report is approved by order of the Board as trustees and the Strategic Report (included therein) is approved by the Board of Trustees in their capacity as the directors at a meeting on 12th October 2021and signed on its behalf by

Terry Rich Chair Date: 12th October 2021

Page | 24

THE AVENUES TRUST GROUP

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2021

The trustees (who are also directors of The Avenues Trust Group for the purposes of company law) are responsible for preparing the Trustees’ Annual Report including the incorporated Strategic 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 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 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 that disclose with reasonable accuracy at any time the financial position of the Group and charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

Auditor

RSM UK Audit LLP has indicated its willingness to continue in office.

Page | 25

THE AVENUES TRUST GROUP

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE AVENUES TRUST GROUP

Opinion

We have audited the financial statements of The Avenues Trust Group (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated and Charity Cash Flow Statements and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We have been appointed auditors under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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 group and parent charitable 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Annual Report. 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.

Page | 26

THE AVENUES TRUST GROUP

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE AVENUES TRUST GROUP

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters 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 by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within the Trustees’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 25, the trustees (who are also the directors of the charitable company for the purposes 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 group’s and parent 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 group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Page | 27

THE AVENUES TRUST GROUP

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE AVENUES TRUST GROUP

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.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of noncompliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the parent charitable company’s governing document and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents and evaluating advice received from external advisors.

Page | 28

THE AVENUES TRUST GROUP

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE AVENUES TRUST GROUP

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to the Care Act 2014. We performed audit procedures to inquire of management and those charged with governance whether the group is in compliance with these law and regulations and inspected correspondence with regulatory authorities.

The group audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to 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 the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

NICHOLAS SLADDEN (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants 25 Farringdon Street, London, EC4A 4AB

Date[20 October 2021]

Page | 29

THE AVENUES TRUST GROUP CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including Consolidated Income & Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2021

Notes
INCOME FROM:
Donations and Legacies
Donations
3
Grants
3
Charitable Activities:
Provision of care and housing services
Provision of care to young people
Services to Adults
Services to Older People
Other trading activities
3
Investment Income
Other
Total Income
EXPENDITURE ON:
Raising funds
Charitable activities:
Provision of care and housing services
4
Provision of care to young people
4
Services to Adults
4
Services to Older People
4
YourTime - Leisure activities
4
Loss/(gain) on sale of assets
Total Expenditure
Net Income/(expenditure)
5
Transfer between funds
Reduction in fair value adjustment
Remeasurement of defined benefit
pension schemes
16
Net movement in funds
Reconciliation of funds:
Fund balances brought forward
14
Fund balances carried forward		 Unrestricted Unrestricted Restricted
Total
Total
General Funds
Pensions
Funds
2021
2020
£'000
£'000
£'000
£'000
£'000
6
-
-
6
2
3
-
-
3
-
9
-
-
9
2
10,781
-
-
10,781
11,941
1,611
-
-
1,611
1,379
30,450
-
-
30,450
28,541
1,657
-
-
1,657
1,640
44,499
-
-
44,499
43,501
25
-
-
25
21
-
-
-
-
3
1,098
-
1,087
2,185
106
45,632
-
1,087
46,718 43,633
-
-
-
-
-
11,913
-
-
11,913
12,304
1,434
-
-
1,434
1,295
29,345
-
1,087
30,432
29,299
1,713
-
-
1,713
1,587
-
-
-
-
1
44,405
-
1,087
45,492
44,486
34
34
300
44,439
-
1,087
45,526 44,786
1,192
-
-
1,192 (1,153)
(307)
307
-
-
-
-
-
-
(301)
-
(1,517)
-
(1,517)
1,516
885
(1,210)
-
(325)
62
5,421
(1,084)
1,296
5,633
5,571
6,306
(2,294)
1,296
5,308
5,633

The notes on pages 34 to 58 form part of these financial statements.

Page | 30

THE AVENUES TRUST GROUP CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2021 COMPANY NO: 03804617

FIXED ASSETS
Tangible assets
8
Intangible assets
9
CURRENT ASSETS
Debtors
11
Cash at bank and in hand
CREDITORSfalling due within one year
12
NET CURRENT ASSETS
CREDITORSfalling due in more than one year
12
NET ASSETS EXCLUDING PENSION LIABILITY
Pension scheme liability
16
Notes		 £'000
10,090
71
10,161
4,274
2,455
6,729
(4,690)
2,039
(4,598)
7,602
(2,294)
2021		 £'000
10,355
27
2020
10,382
4,853
923
5,776
(4,678)
1,098
(4,763)
6,717
(1,084)
NET ASSETS
14		 5,308 5,633
FUNDS
Unrestricted funds:
General funds
13
Designated fund
13
Pension scheme funding reserve
13
Restricted funds
13
TOTAL FUNDS
14		 6,231
75
(2,294)
4,012
1,296
5,308		 5,346
75
(1,084)
4,337
1,296
5,633

The notes on pages 34 to 58 form part of these financial statements.

The financial statements were approved and authorised for issue by the Board of Trustees on 12th October 2021and were signed on its behalf by:

Terry Rich

Chair

Page | 31

THE AVENUES TRUST GROUP COMPANY BALANCE SHEET AS AT 31 MARCH 2021 COMPANY NO: 03804617

Notes
FIXED ASSETS
Tangible assets
8
Intangible assets
9
CURRENT ASSETS
Debtors
11
Cash
CREDITORSfalling due within one year
12
NET CURRENT LIABILITIES
NET LIABILITIES
FUNDS
Unrestricted funds:
General reserve
13
Restricted funds
13
DEFICIT
14		 2021
£'000
147
71
218
573
999
1,572
(1,903)
(331)
(113)
(1,019)
(1,019)
906
(113)		 2020
£'000
143
27
170
921
-
921
(1,191)
(270)
(100)
(1,006)
(1,006)
906
(100)

As permitted by section 408 of the Companies Act 2006, the parent charity’s Statement of Financial Activities (including Income and Expenditure) has not been included in these financial statements. The parent charity’s result for the year was a deficit of £13k (2020: deficit of £1,087k).

The notes on pages 34 to 58 form part of these financial statements.

The financial statements were approved and authorised for issue by the Board of trustees on 12th October 2021and were signed on its behalf by:

Terry Rich Chair

Page | 32

THE AVENUES TRUST GROUP CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

2021
2020
Cashflow from operating activities
£'000
£'000
Net cash generated from /(used in) operating activities
(a)
2,162
(452)
Cashflow from investing activities:
Purchase of intangible fixed assets
(451)
(626)
Purchase of tangible fixed assets
(74)
(22)		 2021
2020
Cashflow from operating activities
£'000
£'000
Net cash generated from /(used in) operating activities
(a)
2,162
(452)
Cashflow from investing activities:
Purchase of intangible fixed assets
(451)
(626)
Purchase of tangible fixed assets
(74)
(22)
Sale of tangible fixed assets 156
2,653
Net cash provided by/(used in) investing activities
Financing:		 (369)
2,005
Payment of KCC loan (33)
(36)
Net cash outflow from financing
Increase/(Decrease) in cash in the year
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting
period
Cash and cash equivalents at the end of the reporting period
(b)
(a) Reconciliation of net income to net cash flow from operating
activities:
Net income
Net movement in pension provision
Loss on disposal of tangible fixed assets
Depreciation charges
Amortisation of intangible fixed assets
Net movement in creditors (less debtors)
Net cash used in operating activities
(b)Analysis of cash and cash equivalents:
(33)
(36)
1,760
1,518
1,760
1,518
520
(998)
2,280
520
2021
2020
£'000
£'000
1,192
(1,153)
(307)
(259)
34
300
526
647
30
16
687
(2)
2,162
(452)
Overdraft facility repayable on demand (175)
(403)
Cash at bank and in hand
Total cash and cash equivalents
Borrowings excluding overdrafts
Total cash, cash equivalents and borrowings		 2,455
923
2,280
520
(33)
(66)
2,247
454

Page | 33

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1) Accounting Policies

The Avenues Trust Group is a charitable company limited by guarantee, incorporated in England and Wales. The registered office is River House, 1 Maidstone Road, Sidcup, Kent, DA14 5TA. The Charity’s principal activities are disclosed in the Board Members’ Report.

The principal accounting policies adopted, judgements and key sources of estimation and uncertainty in the preparation of the financial statements are as follows:

a) Basis of preparation

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 Standards applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS 102 second edition October 2019)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006, except for the treatment of Welmede Housing Association social housing grants which would normally be shown through the Statement of Financial Activities. The group has departed from the Charities SORP (FRS 102) and maintained the accounting treatment set out in Housing SORP 2014 (Statement of Recommended Practice for social housing providers) which is followed by Welmede Housing Association, where government grants are recognised in income using the accruals model and recognised over the life of the underlying asset when housing properties are measured at cost.

Amounts not recognised in income are shown as creditors as deferred capital grants. The trustees consider that this is the appropriate policy to use in the consolidated financial statements.

The Avenues Trust Group meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost of transaction value unless otherwise stated in the relevant accounting policy notes. The reporting currency is pound sterling and the financial statements are presented to the nearest thousand pounds.

The parent charity is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepare a publicly available consolidated financial statements, including this charity, which are intended to give a true and fair view of the assets, liabilities, financial position and surplus or deficit of the group. The parent charity has therefore taken advantage from the following exemptions in its individual financial statements:

Page | 34

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

b) Preparation of the accounts on a going concern basis

The Avenues Trust Group has had operational loss of £1.2m in 2019/20 and surplus of £1.2m in 2020/2021. As at March 2021, reserves stood at £5.3m, with positive net working capital of £2.0m. The sale of 20 Faraday realised cash of £246K which added to the liquidity position of the Group. The 2020/21 results includes a £34k loss on disposal on this property.

Going into 2020/21, there is continuous focus on recruitment and retention to lower dependency on agency; full review of loss making services across the group and increased scrutiny around void levels. These measures coupled with the targeted growth across the Group will continue to build a sustainable future. The increased scrutiny around monthly financial results and the increased funding support due to covid19 have resulted in a surplus position for 2020/21.

As part of the going concern assessment, we have considered the ongoing financial impact of coronavirus in terms of operating performance and cashflow. We believe the funding support from Government coupled with the measures taken by the organisation in response to the coronavirus pandemic mean that the negative financial impact of the virus is mitigated and at this time does not represent a financial or going concern risk.

We recognised early on that regular testing was required, not only to ensure our operational teams were not spreading the virus but also enable us to manage any outbreaks. We requested weekly testing of all staff ahead of the Government advice where such facilities were available and this will continue. In addition to the use of PPE and deep cleans as required, the level of cleaning has increased and visitors stopped as per government guidelines. Staff movement is being minimised and steps were taken to ensure that the same staff work with each other where possible. This combined with our relatively small individual services means that we can work to reduce the spread and mitigate the impact of the virus across the organisation. We have sufficient contingency funds in place to cover existing coronavirus related voids for the full year and staff sickness is still being paid for by the Infection Prevention Grant. Should there be another wave we believe we are well placed to deal with it and minimise the overall impact on the Group and as a result the financial position of the Group.

Avenues holds a significant number of long term contracts and provides a very high quality of service provision, which ensures continued success in securing new contracts and retaining existing ones. With this in mind, whilst there are significant challenges within the sector, particularly around recruitment of staff, Avenues is well placed for the future.

The Group has an overdraft facility of £1.5m. There is a longstanding and positive relationship with Barclays and although this facility could be withdrawn at any time, this risk does not pose any serious threat or concern.

c) Group financial statements

The financial statements consolidate the results of the charity and its subsidiaries on a line by line basis. Control is determined when the charity controls over 50% of the voting rights, or has the ability to appoint or remove a majority of board members. A separate Statement of Financial Activities and Income and Expenditure account for the charity has not been presented because Avenues has taken advantage of the exemption afforded by Section 408 of the Companies Act 2006.

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THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

The result of all subsidiaries cover a full 12 month period up to 31 March 2021.

d) Income

Income is recognised when the group has entitlement to the funds, any performance related conditions attached to the item(s) of income has been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ (except capital grants relating to social housing properties – see policy (e)) or ‘revenue’ grants, are recognised when the charity has entitlement to the funds, any performance related conditions attached to the grant have been met, it is probable that the income will be received and the amount can be measured reliably and not deferred.

Income received in advance of a service is deferred until the criteria for income recognition are met (Note 12). Income is measured at the fair value of the consideration receivable. Legacy income is recognised at the earlier of the charity being notified of a distribution or the receipt of a legacy, or when the receipt of the legacy is determined to be measurable and probable.

e) Capital grants in respect of social housing properties

All Social Housing Capital grants are recognised under the accrual model. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred it is recognised under creditors after more than one year separately as capital grant and not deducted from the carrying amount of the asset.

f) Tangible fixed assets and depreciation

Fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at the following annual rates in order to write off the assets over their estimated useful lives;

Tablets, laptops and computers 33% per annum on cost
Office equipment 15-25% per annum on cost
Furniture and equipment 15-25% per annum on cost
Furniture and equipment (River House) 10% per annum on cost
Specialist equipment 15% per annum on cost
Motor vehicles 25% per annum on cost
Freehold Land 0%
Freehold Buildings and offices 2% per annum on cost
Leasehold properties Over the term of the lease

Depreciation of an asset commences from the point the asset is brought into use. The groups’ policy is to capitalise all assets over £500. Asset values and consideration of any impairments needed are reviewed on an annual basis.

Barclays Bank Plc holds a charge over the group as security for the Groups’ overdraft.

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THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

g) Intangible assets and amortisation

Intangible assets are stated at cost less accumulated amortisation. Amortisation is provided at the following annual rates in order to write off the assets over their estimated useful lives:

Software

20% per annum on cost

h) Employee benefits policy

The costs of short-term employee benefits are recognised as a liability and an expense. The best estimate of the expenditure required to settle obligation for termination of benefits is recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

i) Pension costs

The Avenues Trust Group has employees enrolled in The Social Housing Pension Scheme (SHPS) defined contribution scheme (also referred to as ‘Pensions Trust’) which is an ongoing scheme. The contributions paid to this scheme by the group are charged to the Statement of Financial Activities as they fall due.

The Avenues Trust Group also participates in an unfunded pension scheme operated by the National Health Service. The contributions to this scheme, as advised by the scheme administrator, are charged to the Statement of Financial Activities as they fall due.

The group also contributes to the defined benefit Social Housing Pension Scheme (closed to future accrual). Contributions are charged to the Statement of Financial Activities in the period to which they relate. As at 31 March 2020 the schemes actuaries provided each employers organisation with its defined benefit liability together with comparative information as at 31 March 2019. The scheme treated as a defined benefit scheme in accordance with FRS102.

The Avenues Trust Group previously has employees who were members of the Kent County Council defined benefit pension scheme. The assets of the scheme are held separately from those of the group. Avenues South East officially withdrew from the scheme on 1 April 2015 and as such no further contributions are being made. The withdrawal from the scheme resulted in the crystallisation of a liability of £231k. It was agreed to pay this over a period of seven years, attracting interest of £23k. This cost is being recognised in the statement of financial activities evenly over a seven year period.

The pension schemes are disclosed in Note 16.

j) Operating leases

Operating lease rental costs are charged to the Consolidated Statement of Financial Activities on a straight-line basis over the period of the lease.

k) Resources expended and the basis of apportioned costs

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. VAT which cannot be recovered is included as part of the expenditure to which it relates. A liability is recognised once a legal or constructive obligation has been entered into by the group.

Page | 37

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

l) Allocation of support costs

Support costs are those functions that assist the work of Avenues but does not directly undertake charitable activities. Support costs include back office costs, finance, human resources, payroll, IT and governance costs which supports Avenues charitable activities.

m) Fund accounting

Unrestricted funds are funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Restricted funds are subject to specific restrictions imposed by donors. These funds are accounted for separately and are only available to be used in line with donor’s requirements.

n) Taxation

The company is a registered charity and as such its income and gains falling within Sections 471 to 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to its charitable objectives.

o) Debtors

Trade debtors and other income are recognised at the settlement amount due after trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts.

p) Cash and cash equivalents

Cash and cash equivalents includes cash at bank and in hand and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. In the cash flow statement, cash and cash equivalents are shown net of bank overdrafts, which are included as current borrowings in liabilities on the balance sheet.

q) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

r) Financial Instruments

The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

s) Management estimates and judgements

In the process of applying its accounting policies, The Avenues Trust Group is required to make certain estimates, judgements and assumptions that it believes are reasonable based on the information available. These judgements, estimates and assumptions affect the amounts of assets and liabilities at the date of the financial statements and the amounts of revenues and

Page | 38

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

expenses recognised during the reporting periods presented. There are no significant judgements or estimates made. The assumptions applied to the pension have the potential to materially impact the pension liability position and therefore have been reviewed with the Groups pension advisors and management consider they are reasonable. Upon acquisition of Avenues South the properties were revalued and held at Fair Value in the Group accounts and, as at March 2020, were assessed for impairment and as result an adjustment was made to ensure they are carried at an appropriate value. The properties are reviewed annually for indications of impairment, no adjustment to the carrying value of the properties is considered necessary at 31 March 2021.

2) Financial performance of the charity

The consolidated statement of financial activities includes the results of the charity's wholly owned subsidiaries (note 17)

The summary performance of the charity alone is:
Income from donations and Legacies
Expenditure on charitable activities
Net (Expenditure)
Total funds brought forward
Total funds carried forward
Represented by:
Restricted income funds
Unrestricted income funds
Total		 2021
2020
£000s
£000s
26
2,617
26
2,617
(39)
(3,704)
(13)
(1,087)
(100)
987
(113)
(100)
906
906
(1,019)
(1,006)
(113)
(100)
3) Income
Donations and Legacies 2021
2020
£000s
£000s
Other Donations 9
2
Other trading income
Contribution towards training costs
Other Income
Proceeds from sale of confectionary		 9
2
13
1
12
16
-
4
25
21

Income from Donations was £9k (2020: £2k), all of which was unrestricted and £4k is restricted in current year. Income from Charitable activities was £44,499k (2020: £43,501k) all of which was unrestricted in both years.

Covid Support Grant received £2,517k of which £1,087k was restricted.

Page | 39

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4) Expenditure

Charitable Activities Direct
Costs
Support
Costs
2021
Total
2020
Total
£000s
£000s
£000s
£000s
Provision of care and housing services 10,437
1,510
11,947
12,304
Provision of care to young people
Services to Adults
Services to Older People
YourTime - Leisure activities
2021 Totals
2020 Totals		 1,292
142
1,434
1,295
27,340
3,092
30,432
29,299
1,566
147
1,713
1,587
-
-
-
1
40,635
4,891
45,526
39,609 4,877
44,486

Expenditure on charitable activities was £45,492 (2020; £44,486k) was all attributed to unrestricted funds. This balance does not include pension re-measurement adjustments of a loss £1,517k (2020: gain £1,516k) and loss on sales of assets £34k (2020: 300k).

Analysis of governance and support costs

The Avenues Trust Group initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned between the key charitable activities undertaken (see above) in the year. Support costs are allocated on a blended percentage rate which takes into account the key drivers of central costs including staff costs, FTE, number of locations, number of people supported and vacancy rates.

EMT and Governance
Group Finance
Group Human Resources
Group Office Management
Group Practice Development and Assurance
Total		 General
support
Governance
function
Total
£000s
£000s
£000s
972
95
1,067
1,505
-
1,505
1,125
-
1,125
856
-
856
338
-
338
4,796 95 4,891

Page | 40

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

5) Net income/ (expenditure) for the year is stated after charging:

5) Net income/ (expenditure) for the year is stated after charging:
2021 2020
£'000 £'000
Depreciation of tangible fixed assets 526 647
Amortisation 30 16
External Audit 73 76
Internal Audit 10 14
Operating lease charges for motor vehicles and equipment 80 104
Operating lease charges for land and buildings 998 868
Interest paid 58 65
Loss on disposal of assets (34) (300)

6) Trustees’ remuneration

The trustees are the directors of the company. During the year 1 trustee(s) (2020: 2) were reimbursed expenses of £50 (2020: £2k) for travel expenses in roles as trustees.

J Land, Chief Executive, is also a Trustee of Avenues Trust Group. During the 2020/21 financial year she received £147k (2020: £161k) in remuneration including £12k of pension contributions (2020: £12k) from The Group in respect of her role as Chief Executive. No remuneration or pension contributions were paid in relation to her role as a trustee.

N Ford, Group Director of Finance, is also a Trustee of Avenues Trust Group. During the 2020/21 financial year she received £110k (2020: £126k) in remuneration including £9k of pension contributions (2020: £9k) from The Group in respect of her role as Group Finance Director. No remuneration or pension contributions were paid in relation to her role as a trustee.

The Directors of the Charity are remunerated by the Avenues Trust Group only to the extent permitted by the Charity's Articles of Association. A further payment was made in the year of £0.5k (2020: £3k) which is a collective premium to cover Trustees Liability.

No other Trustees received remuneration or pension contributions in the current or preceding period.

7) Staff costs and key management personnel

The number of employees whose emoluments exceeded £60k were:

2021 2020
No. No.
£60k - £70k 1 1
£70k - £80k 2 2
£80k - £90k 1 4
£110k - £120k 4
 -
£120k - £130k 2 2
£160k - £170k 1 1

The average total number of staff employed by the group as well as the full time equivalents are as follows:

Page | 41

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

No.
No.
FTE
FTE
2021
2020
2021
2020
Office staff 149
147
138
134
Care staff
Part-time support staff
Bank contract staff		 737
720
743
721
453
464
371
355
654
654
- -
1,993 1,985
1,252
1,210

The difference between the total number of staff and the FTEs is due to a number of staff being employed on "Bank" contracts, whereby they have an employment contract with Avenues but work irregular shifts as and when they are needed and are not included within FTE's.

Staff costs - Group
Wages and salaries
Social security costs
Pension costs (Per Note 16)
Agency staff costs		 2021
2020
£'000
£'000
30,748
29,430
2,505
2,221
950
911
2,991
4,457
37,194
37,019

The key management personnel of the Group comprise the trustees including; the Group Chief Executive, Group Deputy of Operations, Group Director of Finance, Group Director of People and Organisational Development, Group Director of Business Development, and Group Director of Housing and Development. The total employee benefits of the key management personnel were as follows:

Wages and salaries
Social security costs
Pension costs		 2021
2020
£'000
£'000
549
660
72
72
44
42
665
774

The exemption available for parent companies under FRS102 has been taken, therefore Charity only figures for key management personnel remuneration have not been disclosed.

Page | 42

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8) Tangible fixed assets – Group

----- Start of picture text -----
Freehold Freehold Long Furniture Motor Office
Housing leasehold and Vehicles Equipment Total
Properties Offices properties Equipment
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Cost
At 1 April 2020 as previously stated 8,550 (164) 1,438 3,823 59 159 13,865
Adjustment ( see note below) 164 - 27 - - 191
At 1 April 2020 as restated 8,550 - 1,438 3,850 59 159 14,056
Additions 45 - 200 199 - 7 451
- - - - -
Disposals (224) (224)
At 31 MARCH 2021 8,595 - 1,414 4,049 59 166 14,283
Depreciation
At 1 April 2020 as previously stated 482 (191) 28 2,975 58 158 3,510
Adjustment ( see note below) - 191 - - - - 191
At 1 April 2020 as restated 482 - 28 2,975 58 158 3,701
Charge for year 80 - 12 281 1 5 379
Charge for year - grant (Note 12) 147 - - - - - 147
- - - - -
Disposals (34) (34)
At 31 MARCH 2021 709 - 6 3,256 59 163 4,193
Net book value
At 31 MARCH 2021 7,886 - 1,408 793 - 3 10,090
At 31 March 2020 8,068 27 1,411 848 1 2 10,357
----- End of picture text -----

8) Tangible fixed assets – Charity

Cost
At 1 April 2020 as restated
Additions
At 31 MARCH 2021
Depreciation
At 1 April 2020 as restated
Charge for the year
At 31 MARCH 2021
Net book value
At 31 MARCH 2021
At 31 March 2020
At 1 April 2020 as previously stated
At 1 April 2020 as previously stated
Adjustment (see note below)
Adjustment (see note below)		 £'000
£'000
687
687
249
249
Furniture
and
Equipment
Total
936
936
76
76
1,012 1,012
544
544
249
249
793
793
72
**72 **
865 865
147 147
143 143

Adjustments: The opening balances of asset cost and Depreciation have been restated to reflect the charity's booked tangible assets with no impact on the NBV.

Page | 43

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

NHS Charge

The NBV of some of the Housing properties above are subject to an NHS charge. The NHS transferred the freehold of 23 properties to Avenues South in 1995 resulting in a legal charge against them; which is registered at the land registry on the freeholds. Consequently, should Avenues South choose to use the properties other than for care services, or sell the properties, Avenues South will have to pay back the current market value (or sale proceeds) to the NHS.

There is an offsetting capital grant creditor of £4,598k (2020 £4,730k). (See note 12).

Long Leasehold

All long leasehold properties have remaining leases of between 84 and 116 years.

9) Intangible assets – Group and Charity

Cost
At 1 April 2020
Additions
At 31 MARCH 2021
Amortisation
At 1 April 2020
Charge for year
At 31 MARCH 2021
Net book value
At 31 MARCH 2021
At 31 March 2020		 People
Planner
Digitalisation
Project
Website
Total
£'000
£'000
£'000
£'000
66 22 24 112
24 50
- 74
90
72
24
186
61
-
24
85
16 14
-
30
77
14
24
115
1358
**-71 **
5 22
- 27

10) Investments in subsidiary undertakings

The group holds an investment in Avenues South of £6 (2020: £6) which is equivalent to the entire share capital of the subsidiary.

11) Debtors

Contract fees receivable
Other debtors
Prepayments and accrued income
Amounts due from subsidiary undertakings		 2021
2020
2021
2020
£'000
£'000
£'000
£'000
-
123
2,182
3,173
229
192
941
622
344
339
1,151
1,059
-
267
-
-
Charity
Group
573
921
4,274
4,853

Included within Other Debtors are amounts totalling £160k (2020: £160k) relating to a rental deposit falling due after more than one year.

Page | 44

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

12) Creditors

Amounts falling due within one year: 2021
2020
2021
2020
£'000
£'000
£'000
£'000
Charity
Group		 2021
2020
2021
2020
£'000
£'000
£'000
£'000
Charity
Group
Bank overdraft 175
403
175
403
Trade creditors
KCC Pension creditor
Other taxation and social security
Other creditors
Deferred income
Accrued expenditure
Intercompany		 9
7
406
342
- - 33
33
231
105
876
891
148
75
1,198
730
- - 1,064 978
145 57 938
1,301
1,195 544
- -
1,903
1,191
4,690
4,678
Movements in deferred income: £'000
£'000

Income recognised in the year
Income deferred in the current year
Income deferred at the year end
Deferred income at the beginning of the year		 978
750
(978)
(750)
1,064
978
1,064
978

Deferred income comprises contract fee income which relates to services that will be provided in future periods, and grants and donations where milestones and conditions for recognition are expected to be met in future periods.

Amounts falling due in more than one
year:
KCC Pension creditor		 2021
2020
2021
2020
£'000
£'000
£'000
£'000
--
-
66
Charity
Group
- --
66

Included within Other creditors for the group are amounts totalling £225k (2020: £98k) in respect of outstanding pension contributions.

Long term creditors are repayable as
follows:
Due within one year
Between two and five years
Total amount due
Less: due within one year
Amount due after one year		 2021
2020
£'000
£'000
33
33
-
33
33 66
(33)
(33)
-
33

Page | 45

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

12) Creditors (continued)

Creditors falling dues in more than one year Capital grants

Creditors falling dues in more than one year
Capital grants
2021
2020
£'000
£'000
Capital Grant at 1 April (4,730)
(4,825)
Additional Grant
Grant release current year
Capital Grant at 31 March		 (15)
(51)
147
146
(4,598)
(4,730)

A capital grant was received to purchase NHS properties in 1995. 2 further capital grants were received during the year totalling £15k. The grants are amortised over the same period over which the housing properties are depreciated.

Page | 46

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13) Statement of Funds

Group:
Unrestricted funds:
General reserve
Pension reserve
Restricted funds:
Active Communities Fund
Big Lottery
Community Futures
other restricted
funds
Dementia Services
Disability Focus Day
Disability Sports Project
Employment Service
Leisure activities in Avenues East
Partnership Working
Teaming Up
Garden Fund
Brighton road
Copse Hill
Other restricted projects
Covid19 Support Grant
Total funds
Previous year balances
Unrestricted funds:
General reserve
Pension reserve
Restricted funds:
Active Communities Fund
Big Lottery
Community Futures
other restricted
funds
Dementia Services
Disability Involvement Day
Disability Sports Project
Employment Service
Leisure activities in Avenues East
Partnership Working
Teaming Up
Garden Fund
Brighton Road
Copse Hill
Other restricted projects
Total funds		 2020
Income
Expenditure
Transfers
FRS 102
Pension Adj
2021
£'000
£'000
£'000
£'000
£'000
£'000
5,421
45,631
(44,439)
(307)
-
6,306
(1,084)
-
-
307
(1,517)
(2,294)
11
-
-
-
-
11
12
-
-
-
-
12

218
-
-
-
-
218
2
-
-
-
-
2
11
-
-
-
-
11
23
-
-
-
-
23
10
-
-
-
-
10
35
-
-
-
-
35
9
-
-
-
-
9
63
-
-
-
-
63
5
-
-
-
-
5
730
-
-
-
-
730
92
-
-
-
-
92
75
-
-
-
-
75
-
1,087
(1,087)
-
-
-
1,296
-
-
-
-
1,296
5,633
46,718
(45,526)
-
(1,517)
5,308
2019
Income
Expenditure
Transfers
FRS 102
Pension Adj
2020
£'000
£'000
£'000
£'000
£'000
£'000
7,134
43,633
(45,087)
(259)
-
5,420
(2,859)
-
-
259
1,516
(1,084)
11
-
-
- -
11
12
-
-
- -
12

218
-
-
- -
218
2
-
-
- -
2
11
-
-
- -
11
23
-
-
- -
23
10
-
-
- -
10
35
-
-
- -
35
9
-
-
- -
9
63
-
-
- -
63
5
-
-
- -
5
730
-
-
- -
730
92
-
-
- -
92
75
-
-
- -
75
1,296
- -
- -
1,296
5,571
43,633
(45,087)
-
1,516
5,633

Page | 47

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13) Statement of funds (continued)

The main funds are as follows:

The general reserve represents the unrestricted, designated and restricted funds of the group. The Pension reserve represents the deficit on the defined benefit pension schemes as calculated using FRS102 methodology. The restricted funds are monies received from funders for the specific projects/purposes described above.

The restricted fund of the parent charitable company is represented by the Active Communities Fund.

10) The Teaming Up fund is restricted to various Teaming Up activities provided by Avenues East.

11) The Garden fund provided by Santander is for the renovation of a Garden at Wilson Avenue.

12) Brighton road. This fund is a specific legacy settled on this service. The fund is to be applied to the service and cover all support and running costs

13) Copse Hill. This fund is a specific legacy to this service. The fund is to be used by the service to cover some support and running costs

14) Other restricted grants are comprised of a number of individually immaterial funds

15) Covid Support Grant specific to cover support cost that is link to covid safety.

Page | 48

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13) Statement of funds (continued)

Parent Charity :
General reserve
Restricted funds
Active Communities funds
Community Futures other restricted funds
Brighton Road
Other projects		 1 April
31 March
2020
Income Expenditure
2021
£'000
£'000
£'000
£'000
(1,006)
26
(39)
(1,019)
11
-
-
11
32
-
-
32
730
-
-
730
133
-
-
133
Total funds 906 - -
906
(100) 26
(39)
(113)
Parent Charity :
General reserve
Restricted funds
Active Communities funds
Community Futures other restricted funds
Brighton Road
Other projects		 1 April
31 March
2019
Income Expenditure
2020
£'000
£'000
£'000
£'000
81
2,617
(3,704) - 1,006
11
-
-
11
32
-
-
32
730
-
-
730
133
-
-
133
906
-
-
906
987
2,617
(3,704)
(100)

Negative reserve in both years, if there continue to be negative reserve in 2021/22, intra-group debt equalisation will be considered.

14) Analysis of net assets between funds

GROUP
Fund balances at 31 March 2021 are
represented by:
Tangible fixed assets
Intangible assets
Current assets
Current liabilities
Long term liabilities
TOTAL
FUNDS
BEFORE
PENSION
LIABILITY
Pension scheme liability
TOTAL FUNDS INCLUDING LIABILITY ON
PENSION SCHEME RESERVE		 Restricted
Unrestricted
2021
Funds
Funds
Total
£'000
£'000
£'000
-
10,090
10,090
-
71
71
1,296
5,433
6,729
-
(4,690)
(4,690)
-
(4,598)
(4,598)
1,296
6,306
7,602
-
(2,294)
(2,294)
1,296
4,012
5,308

Page | 49

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14) Analysis of net assets between funds (continued)

Fund balances at 31 March 2020 are represented by:
Tangible fixed assets - 10,355 10,355
Intangible assets - 27 27
Current assets 1,296 4,480 5,776
Current liabilities - (4,678) (4,678)
Long term liabilities - (4,763) (4,763)
TOTAL
FUNDS
BEFORE
LIABILITY		 PENSION 1,296 5,421 6,717
Pension scheme liability - (1,084) (1,084)
TOTAL FUNDS INCLUDING LIABILITY ON
PENSION SCHEME RESERVE		 1,296 4,337 5,633

Analysis of parent charity net assets between funds

Tangible fixed assets
Intangible assets
Current assets
Current liabilities
TOTAL FUNDS
Tangible fixed assets
Intangible assets
Current assets
Current liabilities
TOTAL FUNDS
Fund balances at 31 March 2021 are
represented by:
Fund balances at 31 March 2020 are
represented by:		 Restricted
Unrestricted
Funds
Funds
Total
£'000
£'000
£'000
-
147
147
-
71
71
906
666
1,572
-
(1,903)
(1,903)
906
(1,019)
(113)
- 143 143
- 27 27
906 15 921
-
(1,191)
(1,191)
906
(1,006)
(100)

15) Operating leases

The total minimum lease payments under non-cancellable operating leases are as follows:

Land and Buildings
Amounts due:
Within one year
Between two and five years
Beyond five years		 2021
2020
£'000
£'000
998
839
1,288
1,428
671
358
2,957
2,625

Page | 50

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Vehicles & equipments
Amounts due:
Within one year
Between two and five years		 2021
2020
£'000
£'000
80
104
59
13
139
117
Parent only
Land and Buildings
Amounts due:
Within one year
Between two and five years		 2021
2020
£'000
£'000
225
338
-
225
225
563

16) Pension obligations

The Avenues Trust Group has contributed to both defined benefit and defined contribution schemes during the year and defined benefit schemes are accounted for as if they were defined contribution schemes if required by FRS 102 Section 28 'Employee benefits'. The total cost to the group for the year ended 31 March 2021 in respect of pension contributions, which have been allocated between resources expended categories in proportion to staff costs and charged to the Consolidated Statement of Financial Activities as appropriate, are as follows;

Pensions Trust SHPS
NHS Pension
Pensions Trust - The Growth Plan
Per Note 7		 2021
2020
2021
2020
£'000
£'000
No.
No.
925
814
1,260
1,226
20
8
1
5
25
7
28
950
839

There are three main schemes remaining with the majority of staff contributing to the defined contribution scheme with The Pensions Trust. This is the Social Housing Pension Scheme (SHPS). In addition there is a closed scheme, also within the SHPS and administered by The Pension Trust. The last scheme is the NHS Pension with details shown below.

The Trustee commissions an actuarial valuation of the Scheme every three years. The main purpose of the valuation is to determine the financial position of the Scheme in order to address the level of future contributions required so that the Scheme can meet its pension obligations as they fall due.

National Health Service (closed Scheme)

The NHS operates an unfunded defined benefit scheme for the nursing sector, in which The Avenues Trust Group participates. The Avenues Trust Group is granted permission by the Secretary of State to be able to contribute to the cost of the scheme as a ‘Directed Employer’

Page | 51

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16) Pension obligations (continued)

(an employer that can continue to have non NHS employed staff as members of the NHS pension scheme).

The cost represents the contributions advised by the NHS Pensions Agency. The Avenues Trust Group is not liable for past service costs beyond these contributions. Contributions increased to 14% from 1 April 2005.

The Pensions Trust - The Social Housing Pension Scheme

The Social Housing Pension (SHPS) auto enrolment defined contribution scheme (also referred to as 'Pensions Trust') is an ongoing scheme. The contributions paid to this scheme by the group are charged to the Statement of Financial Activities as they fall due. This scheme also includes a defined benefit obligation although all employees have been transferred to the defined contribution scheme.

The Pensions Trust - The Growth Plan (closed scheme)

The group participates in the SHPS scheme, a multi-employer scheme which provides benefits to employees of some 900 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the group is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

£11,243,000 per annum From 1 April 2019 to 31 January 2025 (payable monthly and increasing by 3% each on 1st April)

Note that the scheme's previous valuation was carried out with an effective date of 30 September 2014: this valuation showed assets of £793m, liabilities of £970m and a deficit of £177m. To eliminate this funding shortfall, the Trustee has asked participating employers to pay additional contributions to the scheme as follows:

Page | 52

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16) Pension obligations (continued)

Deficit contributions

£12,945,440 per annum
From 1 April 2016 to 30 September 2025: (payable monthly and increasing by 3% each on 1st
April)
£54,560 per annum
From 1 April 2016 to 30 September 2028: (payable monthly and increasing by 3% each on 1st
April)
PRESENT VALUES OF PROVISION 2021 2020
£'000 £'000
Present value of provision - Avenues East 45 53
Total group provision 45 53

Avenues South East and Avenues South SHPS Pensions schemes are administered by TPT however the obligations for these schemes are now shown later in Note 17

Reconciliation of opening and closing provisions

Income and expenditure impact
Provision at start of period
Unwinding of the discount factor (interest expense)
Deficit contribution paid
Remeasurements:
- impact of any change in assumptions
- amendments to the contribution schedule
Provision at end of period		 2021
2020
£'000
£'000
54
65
1
1
(12)
(11)
2
(1)
-
-
45
54
16) Pension obligations (continued)
Interest expense
Remeasurements:
– impact of any change in assumptions
– amendments to the contribution schedule
contributions paid in respect of future service		 2021
2020
£'000
£'000
1
1
2
(1)
-
-

Assumptions
2021
2020
2019
% per
annum
% per
annum
% per
annum
Rate of discount The Pensions Trust - Growth Plan
0.66
2.53
1.39

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

Avenues East is the only member of the Group that has employees in this closed scheme.

Page | 53

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16) Pension obligations (continued)

The Pensions Trust - Social Housing Pension Scheme

Avenues Group participates in the scheme, a multi-employer scheme which provides benefits to some 500 non-associated employers. The scheme is a defined benefit scheme in the UK.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

31 March 2021 31 March 2020
£'000 £'000
Fair Value of plan assets 9,085 8,090
Present value of defined benefit obligation 11,334 9,120
Surplus (deficit) in plan -2,249 -1,030
Defined Benefit asset (liability) to be recognised -2,249 -1,030

Reconciliation of Opening and Closing Balances of the Defined Benefit Obligation

Defined benefit obligation at start of period
Expenses
Interest expense
Actuarial losses (gains) due to scheme experience
Actuarial losses (gains) due to changes in demographic assumptions
Actuarial losses (gains) due to changes in financial assumptions
Benefits paid and expenses
Losses (gains) due to benefit changes
Defined benefit obligation at end of period		 Period ended
31st March 2021
£'000
9,120
9
211
(37)
39
2,304
(313)
1
11,334

Page | 54

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16) Pension obligations (continued)

Reconciliation of Opening and Closing Balances of the Fair Value of Plan Assets

Fair value of plan assets at start of period
Interest income
Contributions by the employer
Contributions by plan participants
Benefits paid and expenses
Assets acquired in a business combination
Assets distributed on settlements
Exchange rate changes
Fair value of plan assets at end of period
Experience on plan assets (excluding amounts included in interest
income) - gain (loss)		 Period ended
31st March 2021
£'000's
8,090
191
789
328
-
(313)
-
-
-
9,085

Defined Benefit Costs Recognised In Statement of Financial Activities (SOFA)

Current service cost
Expenses
Net interest expense
Losses (gains) on business combinations
Losses (gains) on settlements
Losses (gains) on curtailments
Losses (gains) due to benefit changes
comprehensive income (SoCI)
Defined benefit costs recognised in statement of		 Period ended
31st March 2021
£'000's
-
9
20
-
-
-
1
30

Defined Benefit Costs Recognised In net movement in funds

Defined Benefit Costs Recognised In net movement in funds
Total amount recognised in other comprehensive income - gain (loss)
Effects of changes in the demographic assumptions underlying the present
value of the defined benefit obligation - gain (loss)
Experience on plan assets (excluding amounts included in net interest cost)
- gain (loss)
Experience gains and losses arising on the plan liabilities - gain (loss)
Effects of changes in the financial assumptions underlying the present value
of the defined benefit obligation - gain (loss)
Total actuarial gains and losses (before restriction due to some of the
surplus not being recognisable) - gain (loss)
Effects of changes in the amount of surplus that is not recoverable
(excluding amounts included in net interest cost) - gain (loss)		 Period ended
31st March 2021
£'000's
789
37
(39)
(2,304)
(1,517)
-
(1,517)

Page | 55

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16) Pension obligations (continued)

Assets
Global Equity
Absolute Return
Distressed Opportunities
Credit Relative Value
Alternative Risk Premia
Fund of Hedge Funds
Emerging Markets Debt
Risk Sharing
Insurance-Linked Securities
Property
Infrastructure
Private Debt
Opportunistic Illiquid Credit
High Yield
Opportunistic Credit
Cash
Corporate Bond Fund
Liquid Credit
Long Lease Property
Secured Income
Over 15 Year Gilts
Index Linked All Stock Gilts
Liability Driven Investment
Net Current Assets
Total assets		 31-Mar-21
31-Mar-20
£'000
£'000
1,448
1,184
502
422
262
156
286
222
342
565
1
4
366
245
331
274
219
248
189
178
606
602
217
163
231
195
272
-
249
-
-
-
537
461
108
3
178
140
377
307
-
-
-
-
2,309
2,686
55
35
9,085
8,090

None of the fair values of the assets shown above include any direct investments in the employer's own financial instruments or any property occupied by, or other assets used by, the employer.

Key Assumptions 31-Mar-21 31-Mar-20
% per annum % per annum
Discount Rate 2.2 2.4
Inflation (RPI) 3.3 2.6
Inflation (CPI) 2.9 1.6
Salary Growth 3.9 2.6
75% of 75% of
Allowance for commutation of pension for maximum maximum
cash at retirement allowance allowance

The mortality assumptions adopted at 31 March 2021 imply the following life expectancies:

Life
expectancy at
age 65 (Years)
Male retiring in 2019 21.6
Female retiring in 2019 23.5
Male retiring in 2039 22.9
Female retiring in 2039 25.1

Page | 56

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

17) Active subsidiary undertakings

The Avenues Trust Group controls Avenues South East (company number 03923486; charity number: 1079576), Avenues London (company number 06858705; charity number: 1130445), and Avenues East (company number 03326442, charity number: 1061241). All four companies are limited by guarantee and registered in England.

The Avenues Trust Group also holds 100% control of Avenue South formerly Welmede Housing Association Limited (company number R26230), a Charitable Housing Association incorporated under the Co-Operative and Community Benefit Societies Act 2014 and registered with the Registry of Friendly Societies which is administered by the Financial Conduct Authority in England.

All charities are controlled by Avenues Trust Group who have the ability to appoint and remove all members of each subsidiary Board of Trustees.

All charities' registered address is River House, 1 Maidstone Road, Sidcup, Kent, DA14 5TA. All activities have been consolidated on a line by line basis in the Consolidated Statement of Financial Activities. A summary of the results of the subsidiaries is shown below.

Page | 57

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18) Related party transactions

The Avenues Trust Group provides central support for each of its subsidiaries. The Group makes a charge for these central costs based on a blended ratio of group costs. In addition, The Avenues Trust Group acts as the central banker for the group, paying salary costs and creditors and receiving cash from customers.

and receiving cash from customers.
PARENT
Payroll services provided to subsidiary companies
Debt Equalisation
Balance due at 31 March
Payments made on behalf of group companies
Intercompany transfer from Welmede
Recharges of head office costs
Balance owed at 1 April
Receipts taken on behalf of group companies		 2021
2020
£'000
£'000
(277)
2,665
27,586
29,766
(37,811)
(29,457)
8,859
7,237
(4,385)
(12,606)
4,804
4,783
-
(2,665)
(1,224)
(277)

Page | 58