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2022-03-31-accounts

THE AVENUES TRUST GROUP

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

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 – 10
Strategic Report 11 - 22
Statement of trustees’ responsibilities 23
Independent auditor’s report 24 - 27
Consolidated statement of financial activities 28
Consolidated balance sheet 29
Company balance sheet 30
Consolidated statement of cash flows 31
Notes to the financial statements 32 - 57

THE AVENUES TRUST GROUP BOARD MEMBERS AND MANAGEMENT PERSONNEL

FOR THE YEAR ENDED 31 MARCH 2022

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

Chairman: Terry Rich Vice Chair: Evlynne Gilvarry (Member of the Audit and Risk Committee) Non-Executive Trustees: Andrew Bruce Calderwood Member of People, Culture and Reward Committee, Finance Committee and Quality Committee Alistair Oag (To May 2022) Chair of the Audit and Risk Committee and Finance Committee Mark Pittaway (To October 2021) Member of the Finance Committee Alistair Brown (Member of Audit and Risk Committee) (From May 2022) Chair of Audit and Risk Committee Nicola Bannister Member of People, Culture and Reward Committee and Audit and Risk 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 Director of Operations Caroline Neal Group Director of People and Organisational Development

Karina Hourd Group Business Development Director

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 2022

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: 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 2022

The Board presents herewith its Annual Report and the Audited Financial Statements of The Avenues Trust Group for the year ended 31 March 2022. 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 2022 and the 2021 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 the entities within the Group sharing a core group of trustees common to all the Boards (the majority of whom are non-executive) 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 o u 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 2022

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, 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 Community Benefit Society regulated by the FCA.

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, People, Culture and Reward (PCR) and Quality, Local Focus and Engagement (QLE). 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.

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Governance (Continued)

The People, Culture and Reward committee provides assurance to the Avenues Group Boards that it 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 places high the importance on 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. In 2021 we began a recruitment campaign to help diversify our board. This work continues and is a focus into 2022 when we plan to work with specialist advisors to help improve the diversity of our board.

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

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

The Charity Governance Code (continued)

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 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 2021 we identified the need for the following training: Health & Safety and safeguarding responsibilities 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.

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-today news and events. Regular information about the organisation is available through newsletters, online resources, team meetings and management briefings.

The Equality and Diversity 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. This has led to an increased profile for E&D in the organisation, linking with the People, Culture and Reward committee, raising the profile of the steering group and leading to an express focus on progressive Equality, Diversity &Inclusion. Disability and Transgender special interest groups have led to the development of Neurodiversity and Trans ally toolkits to support our workforce and, in particular, our managers to feel confident.

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022 Our Employees (Continued)

and skilled when fostering diverse teams. The Trustee Recruitment special interest group has supported the diversification of our Trustee group and will continue to do so on an ongoing basis. To complement our commitment to E,D&I Avenues is pursuing Investors in Diversity accreditation having placed in the top 100 most inclusive workplaces in 2021.

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.

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.

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Public Benefit (continued)

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:

The Group works on the basis of an overlapping board structure as outlined above in the board structure. The table below identifies 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.

Group London South East East South
Trustee Core
Independent Independent Independent Independent Independent
Alistair Brown
Bruce Calderwood
Cathryn Law
Emma Keegan
Evlynne Gilvarry
Jo Land(Exec)
Lauren Stoner
Martin Owen
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 2022

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 2022 and 2021 comparatives are as follows:

Energy Source Consumption Scope Emissions calculation 2021/22 Emissions calculation 2020/21
Gas – total kWh (kilowatt-hours) used
for the year taken from gas bills		 1,141,732 kWh (gross CV
(calorific value))		 Scope 1 1,141,732 kWh * 0.18 (2022 fuels,
natural gas conversion factor
gross CV to kg Co2e)= 205,512
kgCO2e= 205.51 tCO2e		 1,299,357 kWh * 0.18316 (2021
fuels, natural gas conversion
factor gross CV to kg
Co2e)=237,117 kgCO2e= 237.12
tCO2e
Electricity – total kWh used for the
year, taken from the electricity bills		 1,403,966 kWh Scope 2 1,403,966 kWh * 0.19338 (2022
electricity conversion factor to
kgCO2e) = 271,498 kgCO2e=
271.50 tCO2e		 919,988kWh * 0.21233 (2021
electricity conversion factor to
kgCO2e) = 195,341 kgCO2e=
195.34 tCO2e
Transport – 6,170 miles in the year 4,944 miles * 1.1132 (2022
SECR kWh pass & delivery
vehs, cars - average and
unknown fuel)= 5,504 kWh		 Scope 1 4,944miles 0.27465 (2022
business travel land, average car
conversion factor to kgCO2e)=
1,357 kgCO2e= 1.36 tCO2e*		 6,170 miles 0.27596 (2021
managed assets vehicles, average
car conversion factor to kgCO2e)=
1,703 kgCO2e= 1.70 tCO2e*
Transport – People carriers/vans -
51,336 miles in the year		 64,905 miles * 1.49 (2022
SECR kWh pass & delivery
vehs, vans class 3 – used in
lieu of passenger vehicles
conversion)=96,776 kWh		 Scope 1 64,905 miles 0.29203 (2022
business travel land MPV
unknown)= 14,992 kgCO2e= 15.00
tCO2e*
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*
Transport – total mileage reimbursed
from staff claims = 99,639 miles		 334,456 miles * 1.1132
(2022 SECR kWh pass &
delivery vehs, cars -
average and unknown
fuel)=372,316 kWh		 Scope 3 334,456 miles * 0.27465 (2022
business travel land, average car
conversion factor to kgCO2e)=
91,858 kgCO2e= 91.6 tCO2e		 99,639 miles * 0.27596 (2021
managed assets vehicles, average
car conversion factor to kgCO2e)=
27,496 kgCO2e= 27.50 tCO2e
Total 3,020,294 kWh 584.97 tCO2e 483.58 tCO2e
Intensity ratio Emissions data (tCO2e)
compared with an
appropriate business
activity (Average FTE)		 584.97 tCO2e/1,232 FTE= 0.47
tCO2e per FTE		 483.58 tCO2e/1,252 FTE= 0.39
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 2021 to 31 March 2022. 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

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Carbon and Energy Reporting (continued)

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.

We have used the UK government GHG conversion factors for company reporting 2022 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 2022

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 …

We will continue to go the extra mile.

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

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 2021/22 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 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

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

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 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 2021/22 are the coronavirus pandemic impact and the challenges in the underlying competitive labour market for quality operational staff. All necessary measures have been taken to mitigate these risks going forward, which

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

included the setting up of a specific working party for the coronavirus pandemic and reviewing all guidance provided by the government and other bodies.

Principal Risks and Uncertainties - Coronavirus

As the financial year started our sector, the nation and indeed world were still in the pandemic with continued uncertainty. We continued to navigate our way through the changing guidance for the UK and Adult Social Care. The continued impact of coronavirus has been far reaching and has affected the people we support, their families, our staff teams in many ways.

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 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. The group continued to meet weekly throughout the financial year with additional ad-hoc meetings as required.

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 continue to work with and seek support from 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 maintained 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.

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Principal Risks and Uncertainties – Coronavirus (continued)

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 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. In December 2021 as a new strain of the virus was being detected, we requested daily testing of all staff ahead of the Government advice 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 communicated to Service Managers and copies saved to the CV19 Intranet for use.

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FOR THE YEAR ENDED 31 MARCH 2022

Principal Risks and Uncertainties – Coronavirus (continued)

Finally, as we exit the financial year the Government issued guidance detailing how, as a nation, we will be living with COVID-19 and this prompted addition guidance for Adult Social Care. Our overarching principle of keeping the people we support and our staff teams as safe as possible remains our top priority whilst the whole organisation adapts to the living with COVID-19.

The Oversight group reviewed each and every action taken over the past two years and agree the most appropriate next steps. Policies and Procedures were reviewed in line with guidance and decision and we, once again, increased communication with our workforce.

We recognise and understand, that after two years of COVID-19 restrictions that moving to “Living with COVID-19” would be a worrying time for the people we support, their family members and our staff teams. We therefore have written to each person we support, their family members and staff detailing the organisations approach to “Living with COVID”.

Whilst keeping people as safe as possible we knew going forward we wouldn’t be just living with Covid, we will be supporting people to once again enjoy their lives, live the lives they want and be active citizens once again . Going forward we will be returning to “enabling people” and not just “caring for” people but doing things “with” and not “for” ; in short, together we will progress from surviving to thriving once again.

See Going Concern on page 20 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 this work has been delayed due to Covid restrictions and access to services but is in our plans for 22/23 and beyond.

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Achievements and Performance (Continued)

Over the past year we have continued to develop our services 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.

The Avenues Trust Group has a monthly balanced scorecard which is used for reporting to management and trustees. Within this are 4 headline Key Performance Indicators which are underpinned by a set range of Key Performance Indicators as follows:

Financial Sustainability

This is measured by our operational performance to budget. For financial year 2021/22 the Surplus was £1,369k compared to a budgeted surplus of £18k. Underneath this we set KPIs for the level of central cost spend, services making a deficit contribution, agency spend and debtor days.

Reputational

This is measured by the percentage of services which have met their monthly quality KPI thresholds. A target of 90% was set and we achieved a monthly average of 93%. This is underpinned a significant number of quality KPIS which are measured across all services.

People

This is measured as the percentage of job vacancy levels across the workforce with a target of less than 20% - we achieved an average of 25% so behind the target which was the impact of well documented recruitment challenges for the Adult Social Care sector, in the second half of the year. In addition to this we track and closely monitor sickness absence and retention rates

Growth and Development

Having established the Business Development function in the previous year, this was our first year of considering the potential whilst the team was still being recruited. We determined that this be measured by the full year growth achieved compared to the budgeted target. As a result of Covid restrictions and recruitment challenges we finished the year behind target but are confident with the bedding in of the Business Development team we can achieve the targets set for 22/23.

Financial Results for the Year Ended 31 March 2022

The income and expenditure performance of the Group in 2021/22, shows income of £47m and a surplus of £1.4m (compared to a surplus of £1.2m in the prior year). Total income for the year increased by £0.3m (1%) and expenditure has increased by £0.2m (0.34%), excluding gain on sale of fixed assets.

Page | 17

AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

The consolidated balance sheet shows total group funds of £7.3m compared to £5.3m as at March 2021. This includes the impact of the revaluation of the Social Housing Pension Scheme (SHPS) pension asset of £0.6m.

The consolidated Group had gone into 2021/22 with a small surplus budget. This is a key deliverable of the 2021/25 strategic plan and the Executive Management Team.

As a result of the 2020/21 transformation plan, we have seen improvements in legacy void levels, agency spend and deficit contribution services which have all contributed towards an improved operating performance.

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 2022 and deemed to be still appropriate. In additional the Group Boards have recommended a minimum cash holding of £1m.

Subsidiaries

This reserves policy is established at a Group level.

Reserves were as follows at March 2022:
-
General
-
Designated
-
Pension scheme
-
Restricted
TOTAL RESERVES
Less unrestricted tangible fixed assets held for charities’ own use
Less restricted reserves
Less designated reserves
FREE RESERVES(Deficit)		 £’000
7,300
77
(1,398)
1,299
7,278
(6,185)
(1,299)
(77)
(283)

Free reserves are therefore NIL.

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

Page | 18

AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

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.

£77k of Designated reserves 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.

£6,185k 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: 2021/22 £2.5m (2020/21 £2.0m)

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Going Concern

The primary objective for 2021/22 was to continue to improve 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 2021/22:

The above measures and increased scrutiny around monthly financial results and deviation from budgets mean that a small surplus is expected in 2022/23.

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.

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Future Developments

2021/22 is the first year of our strategy for 2021-25, Building Better Lives Together’, which sets out our renewed ambition to ensure that we will 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. Post pandemic, as conditions have changed and other sectors have reopened, we are facing a highly competitive labour market across all sectors including social care and competition for good staff is high. Despite 2 pay awards during 2021/22 and an increase in National Minimum wage from April 22 recruitment is extremely challenging and vacancy rates remain high and as a result we have seen an increased spend in agency costs in the second half of 2021/22. We anticipate these challenges will continue into 22/23 and beyond. Avenues continues to raise the challenges of pay and recruitment with our commissioners and with central government 2020/21 saw the establishment of a business development function led by a Director of Business Development and given the successes in 2021/22 this will be an area of continued focus and investment. Whilst core growth and void filling remain high on the agenda.

We are also looking to generate other income streams through grants, fundraising and legacies. 2022/23 will see us expand into new geographies and strengthen our connection with the health sector.

In addition, we will continue to explore all cost saving initiatives to ensure efficiencies across all functions. This includes a review of office space and working patterns including hybrid working following the pandemic.

We are increasing the use of digital solutions and the aspiration of operating paperless offices as far as practicable. We are half way through our front line digital roll out programme giving digital access to all services to provide more efficient support. Our workforce have embraced this change and are excited for future changes. In 22/23 we are embarking on a programme of work to upgrade our central core systems to further improve processes and drive efficiencies.

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

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 18th October 2022 and signed on its behalf by

Terry Rich Chair Date: 18th October 2022

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THE AVENUES TRUST GROUP

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2022

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 | 23

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 2022 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.

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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 23, 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.

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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 | 26

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

Page | 27

THE AVENUES TRUST GROUP CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including Consolidated Income & Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2022

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
Loss/(gain) on sale of assets
Total Expenditure
4
Net Income/(expenditure)
5
Transfer between funds
Remeasurement of defined benefit
pension schemes
16
Net movement in funds
Reconciliation of funds:
Fund balances brought forward
13
Fund balances carried forward		 Unrestricted Unrestricted Restricted
Total
Total
General Funds
Pensions
Funds
2022
2021
£'000
£'000
£'000
£'000
£'000
1
-
19
20
6
-
-
-
-
3
1
-
19
20
9
9,904
-
-
9,904
10,781
1,303
-
-
1,303
1,611
32,634
-
-
32,634
30,450
1,874
-
-
1,874
1,657
45,715
-
-
45,715
44,499
115
-
-
115
25
-
-
-
-
-
97
-
1,072
1,169
2,185
45,928
-
1,091
47,019 46,718
-
-
-
-
-
10,343
-
-
10,343
11,913
1,200
-
-
1,200
1,434
31,242
-
1,072
32,314
30,432
1,791
-
-
1,791
1,713
44,576
-
1,072
45,648
45,492
(17)
(17)
34
44,559
-
1,072
45,631 45,526
1,369
-
18
1,388
1,192
(298)
314
(16)
-
-
-
582
-
582 (1,517)
1,071
896
2
1,970
(325)
6,306
(2,294)
1,296
5,308
5,633
7,377
(1,398)
1,299
7,278
5,308

The notes on pages 32 to 57 form part of these financial statements.

Page | 28

THE AVENUES TRUST GROUP CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2022 COMPANY NO: 03804617

THE AVENUES TRUST GROUP
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2022
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
10,757
116
10,873
4,453
2,356
6,809
(4,319)
2,490
(4,687)
8,676
(1,398)
2022		 £'000
10,090
71
2021
10,161
4,274
2,455
6,729
(4,690)
2,038
(4,598)
7,602
(2,294)
NET ASSETS
14		 7,278 5,308
FUNDS
Unrestricted funds:
General funds
13
Designated fund
13
Pension scheme funding reserve
13
Restricted funds
13
TOTAL FUNDS
14		 7,300
77
(1,398)
5,979
1,299
7,278		 6,231
75
(2,294)
4,012
1,296
5,308

The notes on pages 32 to 57 form part of these financial statements.

The financial statements were approved and authorised for issue by the Board of Trustees on 18th October 2022 and were signed on its behalf by:

Terry Rich, Chair

Page | 29

THE AVENUES TRUST GROUP COMPANY BALANCE SHEET AS AT 31 MARCH 2022 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
Designated Fund
13
Restricted funds
13
DEFICIT
14		 2022
£'000
236
116
352
1,643
1,550
3,193
(3,684)
(491)
(139)
(1,058)
2
(1,056)
917
(139)		 2021
£'000
147
71
218
573
999
1,572
(1,903)
(331)
(113)
(1,021)
2
(1,019)
906
(113)

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 £26k (2021: deficit of £13k).

The notes on pages 32 to 57 form part of these financial statements.

The financial statements were approved and authorised for issue by the Board of trustees on 18th October 2022 and were signed on its behalf by:

Terry Rich Chair

Page | 30

THE AVENUES TRUST GROUP CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

2022
2021
Cashflow from operating activities
£'000
£'000
Net cash generated from operating activities
(a)
1,145
2,162
Cashflow from investing activities:
Purchase of intangible fixed assets
(88)
(451)
Purchase of tangible fixed assets
(1,441)
(74)		 2022
2021
Cashflow from operating activities
£'000
£'000
Net cash generated from operating activities
(a)
1,145
2,162
Cashflow from investing activities:
Purchase of intangible fixed assets
(88)
(451)
Purchase of tangible fixed assets
(1,441)
(74)
Sale of tangible fixed assets 223
156
Net cash provided by/(used in) investing activities
Financing:
Repayments of bank loans		 (1,306)
(369)
(3)
-
Payment of KCC loan (33)
(33)
Proceeds of new bank Loan
Net cash inflow/(outflow) from financing
Increase 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		 273
-
237
(33)
76
1,760
76
1,760
2,280
520
2,356
2,280
2022
2021
£'000
£'000
1,388
1,192
(314)
(307)
(17)
34
567
526
42
30
Net movement in creditors (less debtors) (523)
687
Net cash generated from operating activities
(b)Analysis of cash and cash equivalents:		 1,143
2,162
Overdraft facility repayable on demand -
(175)
Cash at bank and in hand
Total cash and cash equivalents		 2,356
2,455
2,356
2,280
Borrowings excluding overdrafts -
(33)
Total cash, cash equivalents and borrowings 2,356
2,247

Page | 31

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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 Avenues South 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 Avenues South, 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 | 32

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

b) Preparation of the accounts on a going concern basis

The Avenues Trust Group has had operational surplus of £1.2m in 2020/21 and surplus of £1.4m in 2021/2022. As at March 2022, reserves stood at £7.3m, with positive net working capital of £2.5m. The sale of 26 Courtyard realised cash of £195K which added to the liquidity position of the Group. The 2021/22 results include a £17k gain on disposal.

Going into 2021/22, we have continued to focus on the 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 continuous funding support due to covid19 have resulted in a surplus position for 2021/22.

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 continued to request weekly testing of all staff ahead of the Government advice where such facilities were available. 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.

Page | 33

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

The result of all subsidiaries cover a full 12 month period up to 31 March 2022.

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.

Page | 34

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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 | 35

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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 | 36

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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 2022.

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
Income from other subsidiaries
Expenditure on charitable activities
Net (Expenditure)
Total funds brought forward
Total funds carried forward
Represented by:
Restricted income funds
Unrestricted income funds
Total		 2022
2021
£000s
£000s
115
26
-
-
115
26
(141)
(39)
(26)
(13)
(113)
(100)
(139)
(113)
917
906
(1,056)
(1,019)
(139)
(113)
3) Income
Donations and Legacies 2022
2021
£000s
£000s
Other Donations 20
9
Other trading income
Contribution towards training costs
Other Income		 20
9
15
13
100
12
115
25

Income from Donations was £20k (2021: £9k), of which £1k (2021: £9k) was unrestricted and £19k (2021: (nil) restricted.

Income from Charitable activities was £45,715k (2021: £44,499k) all of which was unrestricted in both years.

Covid Support Grant received £1,247k (2021; £2,517k) of which £1,072k (2021: £1,087k) was restricted.

Page | 37

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

4) Expenditure

Charitable Activities Direct
Costs
Support
Costs
2022
Total
2021
Total
£000s
£000s
£000s
£000s
Provision of care and housing services 8,988
1,338
10,326
11,947
Provision of care to young people
Services to Adults
Services to Older People
2022 Totals
2021 Totals		 1,077
123
1,200
1,434
28,770
3,544
32,314
30,432
1,599
192
1,791
1,713
40,434
5,197
45,631
40,635 4,891
45,526

Expenditure on charitable activities was £45,647k (2021; £45,492k) all of which was attributed to unrestricted funds. This balance does not include pension re-measurement adjustments of a gain £582k (2021: loss £1,517k) and gain on sales of assets £17k (2021: loss 34k).

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
1,069
95
1,164
1,521
-
1,521
1,197
-
1,197
789
-
789
441
-
441
5,017 95 5,112

Page | 38

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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

5) Net income for the year is stated after charging:
2022 2021
£'000 £'000
Depreciation of tangible fixed assets 568 526
Amortisation 43 30
External Audit 84 73
Internal Audit 8 10
Operating lease charges for motor vehicles and equipment 107 80
Operating lease charges for land and buildings 1,303 998
Interest paid 21 58
Loss(Gain)on disposal of assets 17 (34)

6) Trustees’ remuneration

The trustees are the directors of the company. During the year 4 (2021: 1) member(s) of the Board have been reimbursed for travelling expenses £3k (2021: £50).

J Land, Chief Executive, is also a Trustee of Avenues Trust Group. During the 2021/22 financial year she received £148k (2021: £147k) in remuneration including £12k of pension contributions (2021: £12k) from The Avenues Trust 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 2021/22 financial year she received £110k (2021: £110k) in remuneration including £8k of pension contributions (2021: £9k) from The Avenues Trust 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 (2021: £0.5k) 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:

2022 2021
No. No.
£60k - £70k 4 4
£70k - £80k - -
£80k - £90k 5 5
£110k - £120k 1 1
£120k - £130k - -
£160k - £170k - -

The 2021 employee numbers have been restated to exclude pension and employer NI.

Page | 39

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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

are as follows:
Office staff
Care staff
Part-time support staff
Bank contract staff		 No.
No.
FTE
FTE
2022
2021
2022
2021
154
149
144
138
719
737
724
743
444
453
364
371
627
654
- -
1,944 1,993
1,232
1,252

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		 2022
2021
£'000
£'000
33,514
30,748
2,617
2,505
921
950
1,236
2,991
38,288
37,194

The key management personnel of the Group comprise the trustees including; the Group Chief Executive, Group Director 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		 2022
2021
£'000
£'000
607
549
80
72
53
44
740
665

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 | 40

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

8) Tangible fixed assets – Group

Cost
At 1 April 2021 as previously stated
Adjustment (see below)
Additions
Disposals
At 31 MARCH 2022
Depreciation
At 1 April 2021 as previously stated
Adjustment (see below)
Charge for year
Charge for year - grant (Note 12)
Disposals
At 31 MARCH 2022
Net book value
At 31 MARCH 2022
At 31 March 2021		 Freehold
Freehold
Housing
Properties
Offices
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Long
leasehold
properties
Furniture
and
Equipment
Motor
Vehicles
Office
Equipment
Total
8,595
-
1,414
4,049
59
166
14,283
-
-
-
(435)
-
-
(435)
8,595
-
1,414

3,614
59
166
13,848
890
-
189
362
-
-
1,441
-
-
(218)
(114)
(30)
-
(362)
9,485
-
1,385
3,862
29
166
14,927
709
-
6
3,256

59
163
4,193
-
-
-
(435)
-
-
(435)
709
-
6
2,821
59
163
3,758
107
-
14
296
-
3
420
148
-
-
-
-
-
148
-
-
(20)
(106)
(30)
-
(156)
964
- -
3,010
29
166
4,170
8,521
-
1,385
852
- -
10,757
7,886
- 1,408 793
- 3 10,090

The opening balance has been restated to accommodate the net book value of furniture and equipment in freehold offices that were disposed of but not fully written down in 2019/20.

Page | 41

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

8) Tangible fixed assets – Charity

8) Tangible fixed assets – Charity
Cost
At 1 April 2021
Additions
At 31 MARCH 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 MARCH 2022
Net book value
At 31 MARCH 2022
At 31 March 2021		 £'000
£'000
1,012
1,012
176
176
Furniture
and
Equipment
Total
1,188 1,188
865
865
87
87
952 952
236 236
147 147

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 £4,434k (2021 £4,598k). (See note 12).

Long Leasehold

All long leasehold properties have remaining leases of between 83 and 115 years.

Page | 42

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

9) Intangible assets – Group and Charity

Cost
At 1 April 2021
Additions
Disposal
At 31 MARCH 2022
Amortisation
At 1 April 2021
Charge for year
Disposal
At 31 MARCH 2022
Net book value
At 31 MARCH 2022
At 31 March 2021		 People
Planner
Digitalisation
Project Website
Total
£'000
£'000
£'000
£'000
90 72 24 186
- 88
- 88
- -
(24)
(24)
90
160
-
250
77 14
24
115
13 30
-
43
- -
(24)
(24)
90
44
-
134
0
116
-
116
13 58
- 71

10) Investments in subsidiary undertakings

The group holds an investment in Welmede Housing Association of £6 (2021: £6) which is equivalent to the entire share capital of the subsidiary.

A new entity has been formed, Avenues Management Services Limited with a share capital of £1 and the group owns the entire share of the subsidiary.

11) Debtors

Charity Group
2022 2021 2022 2021
£'000 £'000 £'000 £'000
Contract fees receivable - - 3,003 2,182
Other debtors 332 229 383 941
Prepayments and accrued
income 281 344 1,067 1,151
Amounts due from subsidiary
undertakings 1,030 - - -
1,643 573 4,453 4,274

Included within Other Debtors are amounts totalling £160k (2021: £160k) relating to a rental deposit falling due after more than one year.

Page | 43

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

12) Creditors

12) Creditors
Amounts falling due within one year: 2022
2021
2022
2021
£'000
£'000
£'000
£'000
Charity
Group
Bank overdraft -
175
-
175
Trade creditors
KCC Pension creditor
Other taxation and social security
Other creditors
Deferred income
Accrued expenditure
Intercompany
Loan falling due within one year		 -
9
438
406
- - -
33
227
231
1,203
876
34
148
256
1,198
- - 853 1,064
112 145 1,552
938
3,311 1,195
- -
- - 17
-
3,684
1,903
4,319
4,690
Movements in deferred income:
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		 £'000
£'000
1,064
978
(1,064)
(978)
853
1,064
853
1,064

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.

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		 2022
2021
£'000
£'000
-
33
- -
- 33
-
(33)
--

Page | 44

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

12) Creditors (continued)

Creditors falling dues in more than one year Capital grants

Creditors falling dues in more than one year
Capital grants
Capital Grant 2022
2021
£'000
£'000
Capital Grant at 1 April (4,598)
(4,730)
Grant Charge adjustment
Additional Grant
Grant release current year
Capital Grant at 31 March
Bank Loan		 16
-
(15)
148
147
(4,434)
(4,598)
Due within 2 -5 years (68)
-
Due over 5 years
Total Bank Loan
Total Long term Creditors		 (185)
-
(253)
-
(4,687)
(4,598)

A capital grant was received to purchase NHS properties in 1995. No further capital grants were received during the year.

The grants are amortised over the same period over which the housing properties are depreciated.

The bank loan relates to the purchase of 6 Colman Stairs and the loan is secure to the property.

Page | 45

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

13) Statement of Funds

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
Hope House holiday Fund
Partnership Working
Disability Forum for Suffolk
Teaming Up
Garden Fund
Brighton road
Copse Hill
Other restricted projects
CSU Donations
Furniture Fund - Squirrel Lodge
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 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		 2021
Income
Expenditure
Transfers
FRS 102
2022
As previously
Stated
Pension Adj
£'000
£'000
£'000
£'000
£'000
£'000
6,306
45,928
(44,559)
(298)
-
7,377
(2,294)
-
-
314
582
(1,398)
11

-
-
-
-
11
12
-
-
-
-
12
218
-
-
(42)
-
176
2
-
-
(2)
-
0
11

-
-
-
-
11
23
-
-
(1)
-
22
10
-
-
5
-
15
35

-
-
3
-
38
-
-
-
4
-
4
9
-
-
-
-
9
-
-
-
4
-
4
63
-
-
(1)
-
62
5
-
-
5
-
10
730
-
-
-
-
730
92

-
-
-
-
92
75
-
-
2
-
77
-
9
-
7
-
16
-
10
-
-
-
10
-
1,072
(1,072)
-
-
-
1,296
1,091
(1,072)
(15)
-
1,300
5,308
47,019
(45,631)
-
582
7,278
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
1,087
(1,087)
--
1,296
5,633
46,718
(45,526)
-
(1,517)
5,308

Funds balances have been transferred to show the actual balance of each fund type.

Page | 46

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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.

Page | 47

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

13) Statement of funds (continued)

Parent Charity :
General reserve
Restricted funds
Active Communities funds
Community Futures other restricted funds
Brighton Road
Other projects
Total funds
Parent Charity :
General reserve
Restricted funds
Active Communities funds
Community Futures other restricted funds
Brighton Road
Other projects		 1 April
2021
Fund
Transfer
Income Expenditure31 March
2022
£'000
£'000
£'000
£'000
(1,019)
(11)
115
(141)
(1,056)
11
-
-
11
32
-
-
32
730
-
-
730
133
11
-
-
144
906 11 - - 917
(113) - 115
(141)
(139)
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
906
-
-
906
(100)
26
(39)
(113)

Negative reserve in both years, if there continue to be more negative reserve in 2022/23, intragroup debt equalisation will be considered.

14) Analysis of net assets between funds

14) Analysis of net assets between funds
GROUP
Fund balances at 31 March 2022 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
2022
Funds
Funds
Total
£'000
£'000
£'000
-
10,758
10,758
-
116
116
1,299
5,510
6,809
-
(4,319)
(4,319)
-
(4,687)
(4,687)
1,299
7,377
8,676
-
(1,398)
(1,398)
1,299
5,979
7,278

Page | 48

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

14) Analysis of net assets between funds (continued)

Analysis of group net assets between funds - previous year
Fund balances at 31 March 2021 are represented by:
Tangible fixed assets - 10,090 10,090
Intangible assets - 71 71
Current assets 1,296 5,433 6,729
Current liabilities - (4,690) (4,690)
Long term liabilities - (4,598) (4,598)
TOTAL
FUNDS
BEFORE
LIABILITY		 PENSION 1,296 6,306 7,602
Pension scheme liability - (2,294) (2,294)
TOTAL FUNDS INCLUDING LIABILITY ON
PENSION SCHEME RESERVE		 1,296 4,012 5,308

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 2022 are
represented by:
Fund balances at 31 March 2021 are
represented by:		 Restricted
Unrestricted
Funds
Funds
Total
£'000
£'000
£'000
-
236
236
-
116
116
917
2,276
3,193
-
(3,684)
(3,684)
917
(1,056)
(139)
- 147 147
- 71 71
906 666 1,572
-
(1,903)
(1,903)
906
(1,019)
(113)

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		 2022
2021
£'000
£'000
664
998
1,356
1,288
487
671
2,507
2,957

Page | 49

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Vehicles & equipments
Amounts due:
Within one year
Between two and five years
Parent only
Land and Buildings
Amounts due:
Within one year
Between two and five years		 2022
2021
£'000
£'000
49
80
10
59
59
139
2022
2021
£'000
£'000
-
225
- -
-
225

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 2022 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		 2022
2021
2022
2021
£'000
£'000
No.
No.
896
925
1,217
1,260
20
20
8
8
5
5
7
7
921
950
1,232
1,275

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

Page | 50

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

16) Pension obligations (continued)

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 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

£3,312,000 per annum From 1 April 2022 to 31 January 2025 (payable monthly)

Note that the scheme's previous valuation was carried out with an effective date of 30 September 2017: this valuation showed assets of £794.9m, liabilities of £926m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked participating employers to pay additional contributions to the scheme as follows:

Page | 51

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

16) Pension obligations (continued)

Deficit contributions

£11,243,000 per annum

From 1 April 2019 to 30 September 2025: (payable monthly and increasing by 3% each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

PRESENT VALUES OF PROVISION
Present value of provision - Avenues East
Total group provision		 2022
2021
£'000
£'000
12
45
12
45

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 16

Reconciliation of opening and closing provisions

Reconciliation of opening and closing provisions
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		 2022
2021
£'000
£'000
45
54
-
1
(11)
(12)
-
2
(22)
-
12
45
Income and expenditure impact £'000
£'000
-
1
(22)
2
2021
2020
% per
annum
% per
annum
0.66
2.53
Interest expense

Remeasurements:
– impact of any change in assumptions
2022
% per
annum
Rate of discount The Pensions Trust - Growth Plan
2.35
ASSUMPTIONS

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 | 52

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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.

Present Values of Defined Benefit Obligation, Fair Value of Assets and Defined Benefit Asset (Liability)


(Liability)
31 March 2022 31 March 2021
£'000 £'000
Fair Value of plan assets 9,824 9,085
Present value of defined benefit obligation 11,210 11,334
Surplus (deficit) in plan -1,386 -2,249
Defined Benefit asset (liability) to be recognised -1,386 -2,249

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 2022
£'000
11,334
9
246
844
(172)
(882)
(169)
-
11,210

Page | 53

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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
Benefits paid and expenses
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 2022
£'000's
9,085
201
372
335
(169)
-
9,824

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

Current service cost
Expenses
Net interest expense
comprehensive income (SoCI)		 Period ended
31st March 2022
£'000's
-
9
45
54
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 2022
£'000's
372
(844)
172
882
582
-
582

Page | 54

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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
Currency Hedging
Index Linked All Stock Gilts
Liability Driven Investment
Net Current Assets
Total assets		 31-Mar-22
31-Mar-21
£'000
£'000
1,885
1,448
394
502
351
262
326
286
324
342
-
1
285
366
323
331
229
219
266
189
700
606
252
217
330
231
84
272
35
249
33
-
656
537
-
108
253
178
366
377
(38)
-
-
-
2,742
2,309
28
55
9,824
9,085
31-Mar-22
31-Mar-21
% per annum
% per annum
2.8
2.2
3.6
3.3
3.2
2.9
4.2
3.9
75% of
maximum
allowance
75% of
maximum
allowance
Key Assumptions
Discount Rate
Inflation (RPI)
Inflation (CPI)
Salary Growth
Allowance for commutation of pension for
cash at retirement

The mortality assumptions adopted at 31 March 2022 imply the following life expectancies:

Life
expectancy at
age 65 (Years)
Male retiring in 2022 21.1
Female retiring in 2022 23.7
Male retiring in 2042 22.4
Female retiring in 2042 25.2

Page | 55

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

17) Active subsidiary undertakings

The Avenues Trust Group control 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 Avenues 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.

Income
Expenditure
Assets
Liabilities
Total funds
Assets
Liabilities
Total funds
The aggregate of the assets,
liabilities and funds as at 31 March
2022 was :
The aggregate of the assets,
liabilities and funds as at 31 March
2021 was :
Surplus/(deficit) on ordinary
activities excluding debt
equalisation		 Avenues
South
East
Avenues
London
Avenues
East
Avenues
South
Parent
Total
2022
Total
2021
£'000
£'000
£'000
£'000
£'000
£'000
£'000
17,419
12,401
6,565
10,519
115
47,019
46,717
(16,305)
(12,467)
(6,426)
(10,291)
(142)
(45,632) (45,525)		 Avenues
South
East
Avenues
London
Avenues
East
Avenues
South
Parent
Total
2022
Total
2021
£'000
£'000
£'000
£'000
£'000
£'000
£'000
17,419
12,401
6,565
10,519
115
47,019
46,717
(16,305)
(12,467)
(6,426)
(10,291)
(142)
(45,632) (45,525)
1,114 (66)
139
228
(27)
1,387
1,192
Avenues
South East
Avenues
London
Avenues
East
Parent Avenues
South
Total
£'000
£'000
£'000
£'000
£'000
£'000
4,568
2,481
898
3,545
10,219
21,711
(2,125)
(2,239)
(486)
(3,684)
(7,242) (15,776)
2,443
242
412
(139)
2,977
5,935
Avenues
South East
Avenues
London
Avenues
East
Parent Welmede
Total
£'000
£'000
£'000
£'001
£'000
£'000
3,218
1,277
723
1,790
9,551
16,559
(1,838)
(969)
(450)
(1,903)
(7,688) (12,848)
1,380
308
273
(113)
1,863
3,711

Page | 56

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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
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		 2022
2021
£'000
£'000
(1,224)
(277)
28,708
27,586
(38,322)
(37,811)
9,486
8,859
(5,946)
(4,385)
5,017
4,804
(2,281)
(1,224)

Page | 57