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← The Avenues Trust Group

2024-03-31-accounts

Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024 Charity Registration Number: 1130473 Company Registration Number: 03804617

Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

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 – 24
Statement of Trustees’ Responsibilities 25
Independent Auditor’s Report 26 - 30
Consolidated Statement of Financial Activities 31
Consolidated Balance Sheet 32
Company Balance Sheet 33
Consolidated Statement of Cash Flows 34
Notes to the Financial Statements 35 - 66

Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP

BOARD MEMBERS AND MANAGEMENT PERSONNEL

FOR THE YEAR ENDED 31 MARCH 2024

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

Chair Terry Rich Vice Chair Evlynne Gilvarry - Member of the Audit and Risk Committee, Member of the Digital & IT Committee Non-Executive Trustees: Bruce Calderwood Member of People, Culture and Reward Committee, Finance Committee and Quality Local Focus and Engagement Committee Alistair Brown Chair of Audit and Risk Committee and Member of the Finance Committee Nicola Bannister Member of People, Culture and Reward Committee and Audit and Risk Committee Rina Pandya Member of People, Culture and Reward Committee Jonathan Hardie (From 01 Nov 2023) Member of Finance Committee and Integration Committee Termination of Appointment 22 Oct 2024

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
Lauren Osman Company Secretary and Group Head of Governance
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 2024

Principal and Registered Office

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

Advisers

Bankers: E14 5HP

External 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 2024

The Board presents its Annual Report and the Audited Financial Statements of The Avenues Trust Group for the year ended 31 March 2024.

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 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 accounts for 2024 and the 2023 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.

At the heart of our mission is a desire to empower individuals and communities, ensuring their well-being and fostering social equity. We firmly believe that every person deserves respect, dignity, and equal opportunities. Through our work we actively strive to uplift vulnerable people, promote inclusivity, and support the development of sustainable and resilient communities.

We recognise that, whilst delivering our mission, our actions today shape the world of tomorrow. As a dedicated and compassionate organisation, we believe in the power of Environmental, Social and Governance (ESG) principles to drive sustainable progress and create a lasting impact on our planet for the people that we support, our employees and the wider community. In the course of our work, we are already really good at delivering against the social and governance aspects of these principles. We have made some progress against the environmental principles but are currently working on improving our impact in this area.

SOCIAL

Public Benefit

Avenues Group provides community-based support to autistic people, and those with learning disabilities, acquired brain injuries and complex needs.

Most of our work is commissioned by local government and the NHS, and delivered through Supported Living arrangements and small sized care homes which are registered under the Care Quality Commission (CQC). This methodology is recognised to deliver better outcomes and significant savings to the public purse when

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2024

compared to residential and clinical alternatives.

Avenues Group supports more than 630 people to enjoy community-based life and employs more than 2,000 staff.

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. No provider can do this effectively in isolation, and we work with a wide range of organisations and networks to achieve this, including Skills for Care, the British Institute of Learning Disabilities (BILD), The Restraint Reduction Network and the Voluntary Organisations Disability Group (VODG).

Quality is of paramount importance to Avenues, so we also work with the Tizard Centre at the University of Kent, which acts as a critical friend and audits our standards.

At a statutory level we are regulated by the Care Quality Commission.

Quality and 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 know that well-supported people support people well.

We take into account shared interests when matching staff to people they support. This means support is personalised and encourages retention and consistency. Staff take time to get to know people, working out what matters to them and what they enjoy, meaning they can live the lives they want to live.

Through our approach we can, over time, reduce people's support needs so they can live with increasing independence.

On 1 November 2023 Autism Hampshire a registered charity joined Avenues, bringing with it additional expertise in neurodiversity, and strong shared values. This will be used to advance our existing support for autistic people across all the Group’s services.

The trustees of 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.

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 also have an ongoing commitment to ensuring that our employees are competitively rewarded, especially in light of the most recent cost of living challenges.

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2024

We value diversity and social inclusion across all of our activities and our recruitment process ensures that all applicants are recruited on a values basis, treated with respect and dignity and are screened to ensure that they are suitable to work with vulnerable people.

Our commitment to Equality, Diversity & Inclusion resulted in us retaining a place in the top 100 most inclusive employers in 2022 with the National Centre for Diversity.

We have a comprehensive wellbeing offering supporting mental, physical, social and financial wellbeing. It includes but is not limited to an Employee Assistance Programme, which includes free counselling to those that need it, weekly Mindfulness sessions, money management advice and Early Pay which is a facility whereby employees can draw down their earned salary on a weekly basis should they need it to prevent the need for expensive pay day loans. We have in place an extensive training package that supports safe working practices and have a well embedded practice of risk assessment to ensure safe practice and equipment. Our supervision practice is robust and ensures that wellbeing action planning is front and center of our discussions with the workforce.

In the event of a change in an employee’s health, in accordance with our sickness absence policy, we 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. We have good rehabilitation practices in place to support those with substantial health issues to return to employment as early as possible.

Employee communication and engagement is key to the success of the Group. Through good local management and our communications team, we ensure that all employees are kept informed about the charity’s strategy, objectives and performance, as well as day-to-day news and events. Regular information about the organisation is available through newsletters, online resources, team meetings and management briefings. All employees are encouraged to give their views and opinions on strategy and performance. As well as local mechanisms to get in touch, employees can contact the Executive Management Team (EMT) direct via email or by joining one of our regular virtual meetings with EMT members.

Our learning and development programme meets the standards and requirements set out by Skills for Care, the workforce development body for adult social care in England. The endorsement is a trusted quality mark only awarded to the best learning and development providers within the social care sector. Avenues has held this accreditation for a number of years now and were most recently reaccredited in February 2024. All of our managers undergo a specially designed induction at a Leadership and Management Academy that supports them to be effective leaders and managers. Training is free to our employees and freely available to them to attend through the publication of extensive quarterly training calendars.

Recognition of our workforce and their skilled and dedicated support to vulnerable people is key and is underpinned by our system of local monthly employee of the

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2024

month awards which across the course of the year culminate in an annual awards ceremony.

Statement on Employment of Disabled Persons

Commitment to Diversity and Inclusion:

Avenues is committed to promoting diversity and inclusion across all areas of its work. We believe that a diverse workforce enriches our organisation and enhances our ability to serve the community effectively. In line with this commitment, we actively promote equality of opportunity for all, including those with disabilities.

Employment Practices:

We ensure that our recruitment processes are inclusive and accessible to disabled candidates. We make reasonable adjustments throughout the recruitment process, ensuring that disabled applicants can compete on equal terms.

For existing employees who become disabled, Avenues is committed to supporting their continued employment by making reasonable adjustments to their work environment, duties, or role where necessary. This may include adjustments such as modified equipment, flexible working arrangements, or additional support.

Training and Development:

Avenues provides training to all employees, including those with disabilities, to ensure they have the skills and opportunities to develop in their roles. We regularly review our training programs to ensure they meet the needs of our disabled employees and support their career progression within the organization.

Accessibility and Reasonable Adjustments:

We regularly assess the accessibility of our workplace and the services we provide to ensure they meet the needs of our disabled employees and people we support. Reasonable adjustments are made as required to remove barriers to participation and employment, and we consult with employees on the adjustments they may need to succeed in their roles.

Monitoring and Reporting:

We monitor the effectiveness of our policies and practices relating to the employment of disabled persons and regularly review our performance in this area. This includes tracking the number of disabled employees, the types of adjustments made, and employee satisfaction levels. The findings are reported to senior management and used to inform future improvements.

Anti-Discrimination:

Avenues is committed to preventing discrimination against disabled employees and job applicants. We have clear policies in place that prohibit discrimination, harassment, and victimization on the grounds of disability, and we take any such incidents seriously, ensuring they are investigated and addressed promptly.

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2024

ENVIRONMENTAL

We believe that safeguarding our environment is not just a responsibility but an urgent necessity. Avenues is committed to reducing our carbon footprint, promoting ecofriendly practices and supporting initiatives that protect and preserve our natural resources. By working with our partners and stakeholders, we are on a journey to implement sustainable strategies that contribute to a cleaner, greener and more resilient world.

We are working to reduce the harmful impact on the environment we work in. As a provider of care services much of what we do is through people working with other people but we are also an active user of resources:

To minimise our carbon footprint we are committed to reducing the use of natural resources including our reliance on fossil fuels. We have already:

Over the next four years we will continue to invest in improvements to ensure the insulation and energy efficiency in our buildings. We continue to keep these measures under review, introducing new initiatives and building on the work we already do. In doing so we will reduce our carbon footprint and create more environmentally sustainable ways of working.

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.

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THE AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2024

The energy use and carbon emissions for the Group for the year ended 31 March 2024 and 2023 comparatives are as follows:

Energy Source Consumption Scope Emissions calculation 2023/24 Emissions calculation 2022/23
Gas – total kWh (kilowatt-hours)
used for the year taken from gas
bills		 4,307,763 kWh (gross CV
(calorific value))		 Scope 1 4,307,763 * 0.18 (2024 fuels,
natural gas conversion factor
gross CV to kg Co2e)= 775,397
kgCO2e =
775.4 tCO2e		 3,138,227 * 0.18 (2023 fuels,
natural gas conversion factor
gross CV to kg Co2e)= 564,880
kgCO2e =
564.88 tCO2e
Electricity – total kWh used for the
year, taken from the electricity
bills		 1,553,814 kWh Scope 2 1,553,814 kWh * 0.20705 (2024
electricity conversion factor to
kgCO2e) = 321,717 kgCO2e =
321.72 tCO2e		 1,646,073 kWh * 0.20707 (2023
electricity conversion factor to
kgCO2e) = 340,852 kgCO2e =
340.85 tCO2e
Transport – 13,259 miles in the year 13,259 miles * 1.11314
(2024 SECR kWh pass &
delivery vehs, cars -
average and unknown
fuel)=14,759 kWh		 Scope 1 13,259miles *0.2686 (2024
business travel land, average
car conversion factor to
kgCO2e)= 3,561 kgCO2e =
3.56 tCO2e		 8,740miles *0.2663 (2023
business travel land, average
car conversion factor to
kgCO2e)= 2,327 kgCO2e =
2.33 tCO2e
Transport – People carriers/vans -
63,026 miles in the year		 63,026 miles * 1.74 (2024
SECR kWh pass &
delivery vehs, vans class
3 – used in lieu of
passenger vehicles
conversion)=109,665		 Scope 1 63,026 miles *0.28793 (2024
business travel land MPV
unknown)= 18,147 kgCO2e =
18.15 tCO2e		 58,617 miles *0.28750 (2023
business travel land MPV
unknown)= 16,852 kgCO2e =
16.85 tCO2e
Transport – total mileage
reimbursed from staff claims =
373,292 miles
373,292 miles * 1.11314
(2024 SECR kWh pass &
delivery vehs, cars -
average and unknown
fuel)=415,526 kWh		 Scope 3 373,292 miles * 0.2686 (2024
business travel land, average
car conversion factor to
kgCO2e)= 100,266 kgCO2e =
100.3 tCO2e		 171,990 miles * 0.2663 (2023
business travel land, average
car conversion factor to
kgCO2e)= 45,800 kgCO2e = 45.8
tCO2e
Total
6,401,527 kWh		 1,219.13 tCO2e 970.71 tCO2e
Intensity ratio Emissions data (tCO2e)
compared with an
appropriate business
activity (Average FTE)		 1219.13 tCO2e/1,568 FTE = 0.77
tCO2e per FTE		 970.71 tCO2e/1,289 FTE = 0.75
tCO2e per FTE

The increase in the intensity ratio reflects the changing nature of our work, as we have resumed more community-based activities following covid, and grown our services. Our Growth includes successful tendering for new services in and around London and our merger with Autism Hampshire. There was also a short-term significant increase in travel as a direct result of the integration activity related to the merger.

Methodology

The data detailed in this table represents energy use and emissions for which The Avenues Group is responsible for the period 1 April 2023 to 31 March 2024. 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.

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2024

These are the energy use and emissions sources required by the regulations for large unquoted organisations. We have used the main requirements of the GHG Protocol Corporate Accounting and Reporting Standard as our emissions calculation methodology. This methodology recommends that emissions are calculated by multiplying activity data (for example energy use in kWh) by an appropriate conversion factor. We have used the UK government GHG conversion factors for company reporting 2024 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.

Looking forward we will invest in more energy efficiency measures to reduce our consumption of fuel. These will include:

GOVERNANCE

Transparency is the cornerstone of our governance. We hold ourselves accountable to the highest standards of governance, adhering to ethical practices and ensuring the responsible allocation of resources. We embrace openness in our decision making processes, fostering trust and confidence among our stakeholders.

Legal 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 a registered charity.

The Avenues Trust Group is the ultimate holding company for Avenues South East, Avenues South, Avenues London, Avenues East, Autism Hampshire because it appoints the trustee board of the charities and Avenues Management Services Limited as it owns the company’s issued share capital.

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2024

All subsidiary companies bar Avenues South and Avenues Management Services Limited 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.

Joanne Land, Group Chief Executive and Nicola Ford, Group Director of Finance are Executive trustees of the Avenues Trust Group and all subsidiaries with the exception of Autism Hampshire.

Avenues Group has made qualifying third-party indemnity provisions for the benefit of its trustees. The cost for all Avenues Group ongoing Trustees is £5,712, which will be apportioned across the subsidiaries, with each paying their share.

Our Board

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 nonexecutive) with a small number of independent trustees who sit on only one of the Boards. This way of operating provides for efficiency but also the effectiveness of our governance. It increases the speed of ou r decision making, streamlines information flows and improves clarity regarding accountabilities.

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.

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 five committees which discuss the business of the whole Group. The committees are:

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TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2024

Committees report directly to all the Boards with the Avenues Group.

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

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

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

The Quality, Local Focus and Engagement committee (QLE) provides assurance regarding the quality of our services and the engagement of the people we support across the organisation. 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.

The Digital & IT Committee is still in its formation stage but has been put in place to bring a greater degree of engagement in our digital strategy, priorities, spend, delivery and direction so that digital interests are adequately represented at the Group Boards and to enable assurance on technology delivery and digital priorities.

In addition to our committees, we have also introduced Special Interest Groups for specific organisational wide projects. These are task and finish groups which oversee projects that are integral to the delivery of the strategic plan set by the board. Each Special Interest Group includes trustees as members. This year Special Interest Groups includes Integration (of Autism Hampshire into the Avenues Group), Community Services and Fundraising.

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FOR THE YEAR ENDED 31 MARCH 2024

The Charity Governance Code

The Avenues Group recognises the importance of good governance and uses the Charity Governance Code to inform any reviews and changes to all governance policies.

All trustees are made aware upon appointment of their responsibilities under the Code.

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

All of our trustees are selected in a manner consistent with the organisation's recruitment, diversity and equality policies, ensuring that the selection process is both time and cost effective. In 2021 we began a recruitment campaign where we worked with specialist advisors to help us successfully improve the diversity of our board. This was successful and will continue going forward.

Our non-executive trustees serve a period of four years, with an option to extend for a further five years. In addition to making direct approaches to suitable candidates Avenues may advertise for trustees through notice boards, network recruitment or in the media. When a recruitment need is identified the Head of Governance 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 training to meet that need and this can be delivered online, internally or through externally facilitated training sessions.

How we work with our stakeholders

Family Matters Group

Avenues are continually looking for ways to improve the support we provide and are keen to develop greater involvement in what we do from the families, carers and friends involved in the lives of the people we support. Last year we started our Family Matters Group and members were given the opportunity to meet with Trustees to share their experiences and feedback.

The aim of the Family Matters Group is to provide a real voice for families, carers and friends in the work that we do, ensuring that our practices, policies, procedures and initiatives have their involvement.

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FOR THE YEAR ENDED 31 MARCH 2024

The Family Matters Group has an independent chair and provides a forum which allows communication and transparency between us and the parents and advocates of the people we support.

The Group’s role is to:

New Directions

New Directions is a local engagement group. It is made up of people we support and is supported by one of our team from the Quality Assurance and Practice team. The group is well established, and members chair the meetings.

The purpose of the group is to:

Recently the group has developed its work on role profiles and report templates for the local engagement groups across the Group. It is also working with our Communications team to design the new website, joint facilitating the co-production training for all staff in the organisation, rewriting the role profiles for support workers and becoming quality checkers.

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FOR THE YEAR ENDED 31 MARCH 2024 Data Protection Compliance

We believe that everyone has rights with regard to how their personal information is handled. Complying with Data Protection Law ensures people can trust us to use their data fairly and responsibly.

Safety and providing quality services are at the heart of everything we do. It is very important to us that we keep all personal information that we hold safe.

The Avenues Group Boards have continued to oversee our compliance with UK data Protection Laws and GDPR. 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. Data Protection compliance is reported directly to the Audit and Risk Committee.

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 is made up of a group of wholly owned subsidiary entities, all limited by guarantee, with the exception of Avenues South which is a mutual society limited by Share Capital and regulated by the Financial Conduct Authority:

The Group operates an overlapping board structure (also known as a common board) as outlined above in the board structure section. 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.

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Core Group
~~Ind~~		 London
~~Ind~~		 South East
~~Ind~~		 East
~~Ind~~		 South
~~Ind~~		 Autism
~~Hampshi~~		 AMSL
~~Directors~~
Alistair Brown ~~Ind~~ ~~Ind~~ ~~Ind~~ ~~Ind~~ ~~Ind~~ ~~Hampshi~~ ~~Directors~~
Alistair Oag
Alistair Oag
Bruce Calderwood
Cathryn Law
Cathryn Law
Emma Keegan
Emma Keegan
Evlynne Gilvarry
Jayne Turnbull
Jayne Turnbull
Jeff Boateng
Jeff Boateng
Jonathan Hardie
Jo Land (Exec)
Jo Land (Exec)
Lauren Stoner
Nicola Bannister
Nicola Ford (Exec)
Nicola Ford (Exec)
Peter Hepburn
Peter Hepburn
Rich Hodgson
Rich Hodgson
Rina Pandya
Sireesh
Terry Rich

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FOR THE YEAR ENDED 31 MARCH 2024

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. The company was established under a Memorandum of Association which established the objects and powers of the charitable company, which is governed under its Articles of Association. The Memorandum of Association was last reviewed and updated in May 2020. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.

Strategy

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

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

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

By 2025 we will:-

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key stakeholders, with new customers, funders and commissioners, diversifying our income streams.

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 2023/24 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 People, Culture and Reward 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.

To develop and maintain strong business relationships, The Avenues Group

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2024

collaborates regularly with Local Authorities and ICBs and other parties through face to face meetings and roundtable discussions. Avenues recognises the benefit of working together, not just for the people we support and our employees but the wider adult social care provision. We have many examples where through joint working projects we have achieved better outcomes for the people we support. We have been working with Surrey County Council to develop a joint strategy that will not only see the modernisation of the housing provision but will offer a wider choice of support and accommodation solutions that will be fit for the future for adults with a learning disability. We can only achieve such great outcomes by bringing together the skills, knowledge, and experience of both parties.

The Avenues Group management team have also worked closely with Local Authorities to share lived experiences of services where we support people who can present behaviors of concern; to help shape tenders and ensure high quality service provision.

Avenues put the people we support at the center of everything we do, ensuring individuals have meaningful plans, including communication needs, recorded in ways that are accessible for them. All services 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 support staff 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 are working towards the 2021/25 strategic plan for Avenues Group which will help to ensure the long term success of the Avenues Group.

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2024

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 & Risk Committee, which, in turn, reports on risk to the Avenues Group Boards on a quarterly basis.

The key risks identified for 2023/24 were the challenges in the underlying competitive labour market for quality operational staff and impact of this on delivery and agency spend and cost of living/inflationary pressures. All necessary measures have been taken to mitigate these risks going forward including changes to recruitment and resourcing processes, investment in employee pay, introduction of agency vendor, negotiations of 2024/25 fee uplifts and improved agency monitoring.

Achievements and Performance

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 behavioral support and active support - both approaches that are demonstratively effective in supporting the people that Avenues work with.

Over the past year we have continued to develop our services across our subsidiaries, proving once again that the people with support can enjoy better lives through tailored, community-based support.

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 2023/24 the total deficit including Autism Hampshire was £1,546k (excluding sale of fixed assets and revaluation surplus on acquired properties) compared to a budgeted surplus of £506k. This deficit was driven by income less than was budgeted; delay in projected growth and more than budgeted voids in the period.

Reputational

This is measured by number of services under monitoring across the group. A target of less than 3 was set and we achieved a monthly average of 4 across the year. This is underpinned by a significant number of quality KPIs which are measured across all

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2024

services.

The Quality Assurance and Practice team are dedicated to supporting the delivery of compassionate, person-centred care and support with a strong emphasis on dignity, respect, individual needs and inclusion within the local community. With a proven track record of excellence, we prioritise the well-being and independence of those we support, supported by a team of highly trained and empathetic professionals. Our commitment to quality and continuous improvement ensures that we provide the highest standard of care, fostering a supportive and inclusive environment for all.

This is measured by a significant number of quality KPIs which are measured across all services. Outcomes and impact is measured for the people support and supported by case studies and personal stories.

People

This is measured as the percentage of job vacancy levels across the workforce with a target of less than 20%. We reduced our vacancy rate from 29% at the start of the year to 19% - recruiting and retaining an additional 200 headcount- and we achieved this through robust and focused recruitment activities. We track a range of other people metrics including sickness absence and voluntary staff turnover both of which reduced throughout the year and are ahead of organisational KPIs. Accordingly, our usage of temporary agency staff has reduced by the end of the year from £2.8k in 2022/23 to £2.5k in 2023/24 across the group with the addition of an additional entity for half the year.

Growth and Development

This is measured by the full year growth income achieved compared to the budgeted target. The target was £5,225k and we achieved £6,779k (a significant tender win in Hertfordshire helped us to exceed the target). This is supported by other KPI’s around voids, tenders, and grants.

Financial Results for the Year Ended 31 March 2024

The financial activities of the year are set out in detail on the Statement of Financial Activities (SOFA). The income and expenditure performance of the Group in 2023/24, shows a deficit of £1m (including Autism Hampshire’s part year loss of £344k and net asset transfer of £2.3m) compared to a deficit of £1.9m in the prior year. This shows an improved performance compared to the prior year, but a less favourable performance compared to the 2023/24 budget surplus of £985k.

Total income for the year increased by £8.2m (13%) and expenditure has increased by £8m (15%), excluding gain on disposal of fixed assets of £0.4m and revaluation surplus of property assets £0.36m.

The consolidated balance sheet after the transfer of net assets from Autism

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2024

Hampshire shows total group funds of £5.9m compared to £5.1m in March 2023. This includes the impact of the revaluation of the Social Housing Pension Scheme (SHPS) pension liability of £0.3m to a year end balance of £1.4m.

The deficit in 2023/24 was driven mainly by reduction in budgeted income; plan growth not realised in full and some unforeseen unfunded voids. The consolidated Group had gone into 2024/25 with a breakeven budget with a plan to realise a small surplus by the end of financial year 2024/25. On this basis the group has no free reserves. The group is seeking to generate future surpluses through the initiatives listed in the Going Concern Paragraph below.

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 5 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 2024 and deemed to be still appropriate. In addition, the Group Boards have recommended a minimum cash holding of £1m.

One of the aims of the 2021/25 strategic plan was financial sustainability and the creation of free reserves which was to be achieved by asset disposals and the consistent delivery of financial surpluses.

The free reserves held at the balance sheet date remain below the target set by the Board and reserves policy. Over the next three years (to year ended 31 March 2027) we expect to achieve sustainable surpluses of between 1.5-2% and realised assets to meet our reserves policy and create free reserves which will be used to build resilience to weather the social care sector storms and enable the Group to make strategic choices. During this period, we will keep the policy under review and will look to index the £1.5m in line with inflation and organisational growth if required.

Risks to Funding/Financial Climate

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2024

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

Reserves were as follows as at March 2024:
-
General
-
Designated
-
Pension scheme
-
Restricted
TOTAL RESERVES
Less unrestricted tangible fixed assets held for charities’ own use
Add pension scheme
Less restricted reserves
Less designated reserves
FREE RESERVES(Deficit)		 £’000
6,939
77
(1,383)
320
5,953
(9,015)
1,383
(320)
(77)
(2,076)

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

£9,015k relates to amounts invested in fixed assets and these reserves can only be realised upon disposal.

Subsidiaries

This reserves policy is established at a Group level.

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 has not been met in 2023-24. The group will continue to work to improve its position to build sustainable services and grow charity.

The current working capital position of the group is: (£0.5m) (2022/23 £0.6m)

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2024

Going Concern

The primary objective for 2023/24 was to continue to improve the financial strength of the group to capitalise on future opportunities and build long term sustainability. In order to achieve this a number of initiatives have been undertaken during 2023/24:

The above measures and increased scrutiny around monthly financial results and deviation from budgets resulted in us setting a break-even budget for 2024/25.

Further to this, we have undertaken a review of all costs across the group and have set cost savings across the central functions and agency spend. This coupled with continued focus on filling voids and embedding of new business means that we expect the group to realise a surplus in 2024/25.

We have two properties which are no longer required within the group and are actively being sold to provide additional cash resources for the group and fund investment system upgrades which will in turn bring efficiencies to the group.

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

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.

Future Developments

2023/24 is the third 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

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AVENUES TRUST GROUP

TRUSTEES’ REPORT AND STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2024

unique support for the long term; and offer it to more people, in more places.

Our approach will remain centered on supporting more people with learning disabilities and/or who are autistic, 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 behavioral 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. We are facing a highly competitive labour market across all sectors including social care and competition for good staff is high. Despite these challenges, following a renewed focus to drive up our workforce numbers we saw positive changes from October 2023 round to the end of the year with vacancy rates reducing from 29% to 19%, which is under our organisational target.

We anticipate these challenges will continue into 2024/25 and beyond but have retained our commitment to improving our workforce numbers. Early signs are good, and our vacancy rate has further reduced and associated agency spend is under budget. Avenues continues to raise the challenges of pay and recruitment with our commissioners and with central government.

Whilst core growth and void filling remain high on the agenda, we are also looking to extend our income through developing into new geographies and with new commissioners, including health. We continue to embed fundraising from trusts and foundations and exploring other income streams including retail, direct sales and expanding our fundraising.

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 22nd October 2024 and signed on its behalf by:

\J ewy Few (Vv.A47F8403F28949C...ed by: Terry Rich, Chair

Date: 22nd October 2024

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THE AVENUES TRUST GROUP

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

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.

Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

In so far as the trustees are aware:

Auditor

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

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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 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Cash Flow Statement 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.

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THE AVENUES TRUST GROUP

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

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.

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 and Strategic 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

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THE AVENUES TRUST GROUP

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

As explained more fully in the Statement of Trustees’ responsibilities set out on page 22, 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.

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:

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THE AVENUES TRUST GROUP

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

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 and tax legislation. 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 and Strategic Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents and inspecting correspondence with tax authorities.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to the group companies operating licenses, the Care Act 2014, Care Quality Commission regulations, health and safety regulations and the UK General Data Protection Regulations (UK GDPR). We performed audit procedures to inquire of management and those charged with governance whether the group is in compliance with these laws and regulations and inspected correspondence with regulatory authorities.

The group audit engagement team identified and revenue recognition as the areas 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, challenging judgments and estimates applied throughout the financial statements and testing of revenue cut off around the year end.

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

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THE AVENUES TRUST GROUP

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

and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

ce by:

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

19 November 2024 Date

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including Consolidated Income & Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2024

Notes
INCOME FROM:
Donations, grants and Legacies
Donations
3
Autism Hampshire net assets
3
Grants
3
3
Charitable Activities:
Provision of care and housing services
Provision of care to young people
Services to Adults
Services to Older People
Regulated services
Community Partnerships
3
Other trading activities
3
Investment Income
3
Other
3
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
Regulated services
4
Community Partnerships
4
(Gain)/Loss on sale of assets
Total Expenditure
Net (expenditure)/income
5
Transfer between funds
13
Remeasurement of defined benefit pension schemes
16
Net movement in funds
Reconciliation of funds:
Revised Fund balance brought forward
14
Fund balances carried forward		 Unrestricted Restricted
Total
Total
General Funds
Funds
2024
2023
£'000
£'000
£'000
£'000
50
12
62
12
2,271
116
2,387
-
-
2
2
-
2,321
130
2,451
12
16,999
-
16,999
11,504
771
-
771
1,377
35,211
-
35,211
34,643
1,950
-
1,950
2,075
2,415
2,415
-
151
-
151
-
57,497
-
57,497
49,599
50
-
50
136
3
-
3
-
363
-
363
138
60,234
130
60,364 49,885
55
-
55
-
17,722
3
17,725
12,556
734
-
734
1,422
36,103
-
36,103
35,626
2,168
-
2,168
2,090
2,639
-
2,639
-
213
73
286
-
59,579
76
59,655
51,694
(434)
(434)
65
59,200
76
59,276 51,759
1,034
54
1,088 (1,874)
1,034
(1,034)
-
-
(257)
-
(257)
(282)
1,811
(980)
831 (2,156)
3,822
1,300
5,122
7,278
5,633
320
5,953
5,122

The notes on pages 35 to 66 form part of these financial statements.

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2024 COMPANY NO: 03804617

Notes 2024 2023
£'000 £'000
FIXED ASSETS
Tangible assets 8 12,904 12,250
Intangible assets 9 242 242 308
13,146 12,558
CURRENT ASSETS
Debtors 11 6,087 4,611
Cash at bank and in hand 1,104 277
7,191 4,888
CREDITORSfalling due within one year 12 (7,671) (5,445)
NET CURRENT LIABILITIES (480) (556)
CREDITORSfalling due in more than one year 12 (5,330) (5,482)
NET ASSETS EXCLUDING PENSION LIABILITY 7,336 6,519
Pension scheme liability 16 (1,383) (1,397)
NET ASSETS 14 5,953 5,122
FUNDS
Unrestricted funds:
General funds 13 6,939 5,142
Designated fund 13 77 77
Pension scheme funding reserve 13 (1,383) (1,397)
5,633 3,822
Restricted funds 13 320 1,300
TOTAL FUNDS 14 5,953 5,122

The notes on pages 35 to 66 form part of these financial statements.

The financial statements were approved and authorised for issue by the Board of Trustees on 22 October 2024 and were signed on its behalf by:

Terry Rich Chair

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP COMPANY BALANCE SHEET AS AT 31 MARCH 2024 COMPANY NO: 03804617

Notes
FIXED ASSETS
Tangible assets
8
Intangible assets
9
242		 2024
2023
£'000
£'000
239
272
242
308
CURRENT ASSETS
Debtors
11
Cash		 481
580
19,517
5,328
22
104
CREDITORSfalling due within one year
12		 19,539
5,432
(19,932)
(6,023)
NET CURRENT LIABILITIES
CREDITORSfalling due in more than one year
12		 (393)
(591)
(92)
(138)
NET LIABILITIES (5)
(149)
FUNDS
Unrestricted funds:
General reserve
13
Designated fund
13		 (18)
(1,068)
2
2
Restricted funds
13
11		 (16)
(1,066)
11
917
DEFICIT
14		 (5)
(149)

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 surplus of £144k (2023: deficit of £10k).

Included in the parent charity's result for the year is a profit of £175k (2023: £20k) gifted by Avenues Management services Limited (AMSL) to the parent under the Deed of Covenant.

The notes on pages 35 to 66 form part of these financial statements.

The financial statements were approved and authorised for issue by the Board of trustees on 22 October 2024 and were signed on its behalf by:

Terry Rich A47F8403F28949C. Chair

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024

----- Start of picture text -----
2024 2023
Cashflow from operating activities £'000 £'000
Net cash used in operating activities (220) (1,372)
Interest received 3 -
Interest paid (58) (50)
Net cash (used in)/generated from operating activities (a) (275) (1,422)
Cashflow from investing activities:
Purchase of intangible fixed assets (35) (279)
Purchase of tangible fixed assets (703) (2,246)
Purchase of business 1,067 -
Proceeds of sale of tangible fixed assets 881 46
Net cash provided by/(used in) investing activities 1,210 (2,479)
Financing:
Repayments against unsecured loans (63) (59)
Proceeds of new bank loan - 1,112
Net cash outflow from financing (63) 1,053
(Decrease)/increase in cash in the year 872 (2,848)
Change in cash and cash equivalents in the reporting period 872 (2,848)
Cash and cash equivalents at the beginning of the reporting period (492) 2,356
Cash and cash equivalents at the end of the reporting period (b) 380 (492)
(a) Reconciliation of net income to net cash flow from operating activities: 2024 2023
£'000 £'000
Net income 1,088 (1,874)
Finance costs 125 50
Net movement in pension provision (341) (283)
Loss on disposal of tangible fixed assets (434) 65
Depreciation charges 738 653
Amortisation of intangible fixed assets 101 76
-
Net assets donated on merger with Autism Hampshire (2,387)
Movement in debtors 1,689 (3,686)
Movement in creditors (799) 3,627
Net cash used in operating activities (220) (1,372)
(b) Analysis of cash and cash equivalents:
Overdraft facility repayable on demand (724) (769)
Cash at bank and in hand 1,104 277
Total cash and cash equivalents 380 (492)
Brought Cash Carried
(c) Analysis of changes in net debt
forward flows forward
£'000 £'000 £'000
Cash at bank and in hand 277 827 1,104
Bank overdrafts (769) 45 (724)
Bank loans (1,323) 63 (1,260)
Net debt (1,815) 935 (880)
----- End of picture text -----

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 Trustees’ 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 Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) 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 charity has departed from the Charities SORP (FRS 102) and maintained the accounting treatment set out in Housing SORP 2018 – (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.

Grant amounts that are not recognised as income in the year are included in 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 FRS102. Assets and liabilities are initially recognised at historical cost or 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 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 exemption in its individual financial statements:

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

The financial statements are prepared in sterling which is the functional currency of the Charity and the group. Monetary amounts shown in these financial statements are rounded to the nearest £'000.

b) Preparation of the accounts on a going concern basis

The group financial statements have been prepared on a going concern basis and the position on going concern for The Avenues Trust Group and its subsidiaries ultimately rests with the Group.

Avenues, along with other providers in the sector, have faced a number of significant issues over the last 12 months. This has included an increase in National Living Wage beyond available funding and an increase in delays from Commissioners to fill voids, both of which have had a significant financial impact. Robust response plans have been created and implemented and their positive impact is already evident.

The Group has an operational loss of £1.3m in 2023/24 and loss of £1.9m in 2022/23. As at March 2024, reserves stood at £5.9m, with net current liabilities of £0.5m. The 2023/24 results include a £434k gain on the sale of two properties (Cleve Court gain - £117k & Moor House gain - £317k).

Avenues maintains numerous long-term contracts and delivers high-quality services, ensuring continued success in securing new contracts and retaining existing ones.

Going into 2024/25, there continues to be focus on recruitment and retention and lower dependency on agency staff. To date, Avenues has restructured its recruitment and onboarding functions to better respond to the challenging environment and reduce the need for agency coverage, while developing a relationship with a neutral vendor of agencies to reduce the price per unit.

External cost pressures including insufficient Local Authority/ Integrated Care Boards (ICB) funding negatively impacts the financial sustainability of our services and the Group. Avenues has partnered with Access Social Care; a leading charity supporting organisations to receive a fair price for care and support services whilst routinely and proactively challenging funding packages that fall below a sustainable level. Where negotiations have not been successful, contracts have been exited. Financial action plans are in place for every service that doesn’t achieve full cost recovery.

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Avenues continuously monitors voids to enable prompt marketing and to take action to mitigate the financial impact. Strategic action includes investment in properties to ensure they are both desirable and fit for the future, together with the robust marketing of our services and making full use of social and multimedia.

Fixed costs within Avenues East and Autism Hampshire have been reduced through the sourcing of new, cost-effective office spaces. There are increased income opportunities for Autism Hampshire through its community services team who, by way of an example, have been commissioned to deliver Oliver McGowan training. Our increased business development focus on Avenues East and Autism Hampshire will ensure they benefit from the same economies of scale as other subsidiaries within the Group.

The merger between Avenues and Autism Hampshire brought an area of specialism to the Group and future financial sustainability for Autism Hampshire. The integration of the organisations has been managed by way of a detailed plan overseen by a project group which is led by an EMT member and progress reported to Trustees. The planned integration spend of £455k has contributed to the Group’s overall financial position. However, its spend is finite and well controlled, which will contribute to an improvement in Autism Hampshire’s financial performance.

Cash is carefully forecast, planned and managed along with focussed aged debt management and collection. Carefully planned property disposals, where surplus to existing requirements, have been and will continue to be part of our strategy to improve the cash position. Operational performance is closely monitored to ensure it is well managed in line with expected budgetary controls, with actions taken as necessary. All budget holders have contributed to a reduced spend against their budgets in 2024/25.

The Group is reliant on its overdraft facility of £1.5m which has been sufficient to cover for low cash months. There is a longstanding and positive relationship with Barclays Bank plc, who provide the Group with its overdraft facility, which is subject to periodic review, and although this facility is payable on demand, Barclays have been supportive of the Group and its operational cash needs and therefore this risk is not considered to pose a serious threat or concern.

Working capital requirements are covered at a Group level. The Avenues Group operates within a cross-guarantee arrangement, pooling cash across the group to meet working capital requirements.

Although this is a challenging landscape, the Trustees are assured that the issues Avenues face are common among social care providers. Avenues has a wealth of skill and experience through its senior leadership teams, executive management

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

team and its Trustees that enables the organisation to successfully navigate these challenges with agility as the Group has in the past. To this end, Trustees are confident of Avenues’ success into the future and have no material uncertainty over its going 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.

The results of all subsidiaries cover a full 12 month period up to the 31 March 2024 except Autism Hampshire which was acquired by the Group from 1 November 2023. All assets and liabilities have been accounted for the Group from that date. The consolidated Statement of Financial Activities incorporates the results of Autism Hampshire from the acquisition date of 1 November 2023.

The cost of a business combination is the fair value at the acquisition date, of the assets given and liabilities incurred or assumed, plus directly attributable costs. The excess of the cost of a business combination over the fair value of the identifiable

assets, liabilities and contingent liabilities acquired is recognised as goodwill. Fair values recognised are considered for impairment in the period following the acquisition date.

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.

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 which includes consideration of when probate is granted.

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.

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

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Intangible assets under construction (IAC)

Intangible assets under construction (IAC) are costs directly attributable to creating, producing, or preparing the asset for its intended use and are recognised at cost where it is probable that the future economic benefits attributable to the asset will flow and the cost can be measured reliably. Expenditure after initial recognition is capitalised where directly attributable to the development of the asset to bring it to a working condition.

If the project is abandoned or its value becomes impaired during construction, the capitalised costs may need to be written down to their recoverable amount. The IAC test annually for impairment or whenever there is an indication that the asset might be impaired. If the carrying amount exceeds the recoverable amount, an impairment loss will be recognised.

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 obligations 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 (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 Consolidated 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 scheme administrator, are charged to the Consolidated 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 Consolidated Statement of Financial Activities in the period to which they relate. As at 31 March 2024 the schemes actuaries provided each employers organisation with its defined benefit liability together with comparative information as at 31 March 2023. The scheme is treated as a defined benefit scheme in accordance with FRS102.

The pension schemes are disclosed in Note 16.

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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.

l) Allocation of support costs

Support costs are those functions that assist the work of Avenues but do not directly undertake charitable activities. Support costs include back office costs, finance, human resources, payroll, IT and governance costs which supports Avenues charitable activities. All costs are allocated between the expense categories of the SOFA on the basis designed to reflect the use of the resources.

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.

Designated funds are funds set aside formally by the trustees for a particular purpose.

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.

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 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.

Upon acquisition of Autism Hampshire, the properties have been revalued and held at Fair Value in the Group accounts. The properties have been reviewed for indications of impairment, no adjustment to the carrying value of the properties is considered necessary at 31 March 2024.

Autism Hampshire properties have been revalued at fair value in the Group accounts.

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2) Financial performance of the charity

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

----- Start of picture text -----
The summary performance of the charity alone is: 2024 2023
£000s £000s
Income from charitable activities 177 136
177 136
Expenditure on charitable activities (208) (166)
Profit received from AMSL through deed of covenant 175 20
Net Income/(Expenditure) 144 (10)
Total funds brought forward (149) (139)
Total funds carried forward (5) (149)
Represented by:
Restricted income funds 11 917
Unrestricted income funds (16) (1,066)
Total (5) (149)
----- End of picture text -----

Included in the unrestricted fund there is £175k (2023: £20k) relating to profit donated by the Avenues Management Services Ltd (AMSL) subsidiary to the parent under Deed of Covenant.

3) Income

3) Income
Donations, grants and legacies 2024
2023
£000s
£000s
Donations 62
12
Autism Hampshire net assets
Grants
Other trading activities income
Contribution towards training costs
Other Income
Other
AMSL trading company gross income
Forest Lane Service mobilisation
Other		 2,387
-
2
-
2,451
12
6
4
44
132
50
136
195
42
107
-
61
96
363 138

Income from Donations, grants and legacies was £2,451k (2023: £12k), of which £130k (2023: nil) was restricted, including grants of £2k.

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Income from Charitable activities was £57,488k (2023: £49,599k) all of which was unrestricted in both years. Other trading activities income is broken down above.

Income relating to the mobilisation of Forest Lane Service in Avenues London has been expensed out to cover for the mobilisation project cost.

The Group’s total income for the year is £60m which includes the results of Autism Hampshire for the period 1 November 2023 to 31 March 2024 and the donation of its net assets on joining the Group as at 1 November 2023

Acquisition - Business combination

On the 1st of November 2023, Avenues Board of Trustees, and Autism Hampshire Board jointly elected to combine operations. From that date, Autism Hampshire became an operating subsidiary of Avenues. The combination was a substance of gift to Avenues as the acquisition was at nil value.

The total net assets of Autism Hampshire up to the date of acquisition is therefore consolidated and shown within Donations, Legacies and Grant income on the SOFA (see table below).

Avenues Trust Group (Avenues) is the sole member of Autism Hampshire and holds 100% of the votes on any decision required by members. No general meeting is quorate without the parent representative present. Avenues also has the right to remove from and appoint all board members.

Autism Hampshire net assets at acquisition:

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

----- Start of picture text -----
£'000
Fixed assets:
Fixed assets (book value) 744
Fair value adjustment 358
Fixed assets (fair value) 1,102
Trade Debtors 359
Other Debtors 14
Accrued Income & Prepayments 304
Cash 1,067
Total assets 2,846
Creditors
Trade Creditors (59)
Other taxation and social security (179)
Other Creditors (96)
Accruals (125)
Total Liabilities (459)
NET ASSETS 2,387
----- End of picture text -----

Post acquisition results are disclosed in note 18.

Autism Hampshire contributed turnover of £2,646k and a deficit of £333k between 1 November 2023 to 31 March 2024

4) Expenditure

Charitable Activities Direct
Costs
Support
Costs
2024
Total
2023
Total
£000s
£000s
£000s
£000s
Provision of care and housing services 15,668
2,057
17,725
12,556
Provision of care to young people
Services to Adults
Services to Older People
Regulated services
Community Partnerships
2024 Totals
2023 Totals		 653
81
734
1,422
31,850
4,253
36,103
35,626
1,926
242
2,168
2,090
2,212
427
2,639
-
240
46
286
52,549
7,106
59,655
45,9185,776
**51,694 **

Expenditure on charitable activities of £59,655k (2023; £51,694k) was all attributed to unrestricted funds. This balance does not include pension re-measurement adjustments of (£257k) (2023: (£282k)) and (gain)/loss on sales of assets, gain - £434k (2023; loss £65k).

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Expenditure for fund raising was £55k (2023: nil) which was all raised by Autism Hampshire and are attributed to unrestricted funds.

Analysis of governance and support costs

The Avenues 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 note 3) in the year. Support costs is allocated on the basis of salary costs for each activity.

----- Start of picture text -----
General Governance 2024 2023
support function Total Total
£000s £000s £000s £000s
EMT and Governance 1,533 146 1,679 1,227
-
Group Finance 2,259 2,259 1,861
-
Group Human Resources 1,446 1,446 1,237
Group Office Management 1,071 - 1,071 903
Group Practice Development and Assurance 651 - 651 548
Total 6,960 146 7,106 5,776
----- End of picture text -----

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

2024 2023
£'000 £'000
Depreciation of tangible fixed assets 735 653
Amortisation 101 76
External Audit 105 100
Internal Audit 15 12
Operating lease charges for motor vehicles and equipment 113 69
Operating lease charges for land and buildings 1,173 1,284
Interest paid 84 51
Loss/(gain) on disposal of assets (434) 65

6) Trustees’ remuneration

The trustees are the directors of the company. During the year, 11 (2023: 6) member(s) of the Board have been reimbursed for expenses £4.6k (2023: £2.5k).

J Land, Chief Executive, is also a Trustee of Avenues Group. During the 2023/24 financial year she received £155k (2023: £149k) in remuneration including £14k of pension contributions (2023: £12k) from The Avenues Trust Group in respect of her role as Chief

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Executive. No remuneration or pension contributions were paid in relation to her role as a trustee (2023: none).

N Ford, Group Director of Finance, is also a Trustee of Avenues Group. During the 2023/24 financial year she received £117k (2023: £111k) in remuneration including £9k of pension contributions (2023: £8k) 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 (2023: none).

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 (2023: £0.5k) which is a collective premium to cover Trustees Liability insurance.

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:

----- Start of picture text -----
2024 2023
No. No.
£60k - £70k 5 4
£80k - £90k - 5
£100k - £110k 5 -
£110k - £120k - 1
£130k - £140k 1 -
----- End of picture text -----

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

equivalents are as follows:
Office staff
Care staff
Part-time support staff
Bank contract staff		 No.
No.
FTE
FTE
2024
2023
2024
2023
142
144
154
143
812
750
818
757
539
474
433
389
513 556
- -
2,006
1,924 1,405
1,289

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.

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

----- Start of picture text -----
2024 2023
Staff costs - Group £'000 £'000
Wages and salaries 37,699 36,455
Social security costs 3,021 2,830
Pension costs (Per Note 16) 1,000 935
Agency staff costs 2,481 2,764
44,201 42,984
----- End of picture text -----

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:

----- Start of picture text -----
2024 2023
£'000 £'000
Wages and salaries 601 570
Social security costs 80 81
Pension costs 66 58
747 709
----- End of picture text -----

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

8) Tangible fixed assets – Group

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

----- Start of picture text -----
Freehold Long Furniture Motor Office
Housing leasehold and Vehicles Equipment Total
Properties properties Equipment
£'000 £'000 £'000 £'000 £'000 £'000
Cost
At 1 April 2023 - Group 11,119 1,507 4,090 29 262 17,007
Additions - acquisition 1,045 - 38 19 - 1,102
Additions 137 39 558 - 2 736
-
Disposals (509) (80) (7) (14) (610)
At 31 MARCH 2024 11,792 1,466 4,679 34 264 18,235
Depreciation
At 1 April 2023 - Group 1,229 18 3,233 29 248 4,757
Charge for year 200 16 369 1 3 589
Charge for year - grant (Note 12) 146 - - - - 146
- -
Disposals (142) (14) (5) (161)
At 31 MARCH 2024 1,433 20 3,597 30 251 5,331
Net book value
At 31 MARCH 2024 10,359 1,446 1,082 4 13 12,904
At 31 March 2023 9,890 1,489 857 - 14 12,250
----- End of picture text -----

8) Tangible fixed assets – Charity

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

----- Start of picture text -----
Furniture
and Total
Equipment
£'000 £'000
Cost
At 1 April 2023 1,321 1,321
Additions 93 93
At 31 MARCH 2024 1,414 1,414
Depreciation
At 1 April 2023 1,049 1,049
Charge for the year 126 126
At 31 MARCH 2024 1,175 1,175
Net book value
At 31 MARCH 2024 239 239
At 31 March 2023 272 272
----- End of picture text -----

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 Welmede chose 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 £4,131k (2023 £4,277k). (See note 12).

Long Leasehold

All long leasehold properties have remaining leases of between 81 and 113 years.

9) Intangible assets – Group and Charity

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Cost
At 1 April 2023
Additions
At 31 MARCH 2024
Amortisation
At 1 April 2023
Charge for year
At 31 MARCH 2024
Net book value
At 31 MARCH 2024
At 31 March 2023		 People
Planner
Digitalisation
Project
Intangibles
under
Construction
Total
2024
£'000
£'000
£'000
£'000
90 358 70 518
-
(13) 48 35
90
345 118
553
90 120
- 210
- 101
- 101
90
221
- 311
-
124
118
242
- 308
- 308

Amortisation of software has been charged to central overheads which is then allocated across the charitable activities on a staff costs basis.

Intangible assets under construction represent our business system upgrade programme, which has been capitalised and shown separately without being amortised. The cost for the assets will be held until time when it will be put into its intended use. The amortisation for these assets are nil.

10) Investments in subsidiary undertakings

The group holds an investment in Avenues South of £8 (2023: £8) and Avenues Management services Limited £1 (2023: £1) both of which are equivalent to the entire share capital of the subsidiaries.

11) Debtors

Contract fees receivable
Other debtors
Prepayments and accrued income
Amounts due from subsidiary undertakings		 Group
2024
2023
2024
2023
£'000
£'000
£'000
£'000
-
-
4,501
2,546
217
80
299
236
526
550
1,287
1,829
18,774
4,698
-
-
Charity
19,517
5,328
6,087
4,611

Included within group Other Debtors are amounts totalling £160k (2023: £160k) relating to a rental deposit falling due after more than one year. 12) Creditors

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Amounts falling due within one year: 2024
2023
2024
2023
£'000
£'000
£'000
£'000
Charity
Group		 2024
2023
2024
2023
£'000
£'000
£'000
£'000
Charity
Group
Bank overdraft 724 435
724 769
Trade creditors
Other taxation and social security
Other creditors
Deferred income
Accrued expenditure
Amount owed to Subsidairy companies
Loan falling due within one year
Movements in deferred income:		 157
-
1,878
1,341
201
197
2,030
1,467
17
29
221
400
- -
1,172 386
120 72
1,582
964
18,667 5,244
0
-
46 46
63 118
19,932
6,023
7,670
5,445
£'000
£'000
Income recognised in the year
Income deferred in the current year
Income deferred at the year end
Deferred income at the beginning of the year		 386
853
(386)
(853)
1,171
386
1,171
386

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.

Creditors falling due in more than one year Capital grants

Capital Grant at 1 April
Additions
Grant release current year
Capital Grant at 31 March
Bank Loan
Due within 2 -5 years
Due over 5 years
Total long term Creditors		 2024
2023
£'000
£'000
(4,277)
(4,434)
(2)
0
146
157
(4,133)
(4,277)
(175)
(425)
(1,022)
(780)
(1,197)
(1,205)
(5,330)
(5,482)

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

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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

Bank loan relates to:

The following properties (Colman Stairs, Beresford Garden, Smock Acre, and Westbrook) are under the loan agreement. The loans are secure to these properties. Included in the loan was the purchase of software licences over a period of 5 years.

The amount falling due for more than one year is £92k.

13) Statement of Funds

Group:
Unrestricted funds:
General reserve
Designated Fund
Pension reserve
Restricted funds:
Autism Hampshire - Donation transfer
Active Communities Fund
Big Lottery
Community Futures other restricted funds
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		 2023
Income
Expenditure
Transfers
FRS 102
Pension Adj
2024
£'000
£'000
£'000
£'000
£'000
£'000
5,142
60,234
(59,200)
763
-
6,939
77 -
- - -
77
(1,397) -
- 271
(257)
(1,383)
116
(116)
-
11
-
-
-
-
11
12
-
-
-
-
12
176
-
-
(176)
-
-
11
-
-
-
-
11
22
-
-
(1)
-
21
15
-
-
-
-
15
38
-
-
-
-
38
4
4
9
-
-
-
-
9
4
-
-
-
-
4
62
-
-
-
-
62
10
-
-
(5)
-
5
Brighton road 730
-
-
(730)
-
-
Copse Hill 92
-
(3)
(25)
-
64
Other restricted projects
CSU Donations
Furniture Fund - Squirrel Lodge
Caring Communities Grant
Spectra App
Childwick Trust
Get Going Again
Serendipity Lottery Grant
Solent Employment Grant
Serendipity Skills Group (Will Charitable Trust)
HICWF
IAG Sensory SSB
Barratt Foundation
Percy Bilton
Total funds		 77
-
-
(77)
-
-
17
9
-
(20)
-
6
10
-
-
-
-
10
-
-
-
1
-
1
-
-
(1)
11
-
10
-
-
-
9
-
9
-
-
(19)
20
-
1
-
2
(47.69)
68
-
22
-
-
-
(2)
-
(2)
-
-
(2)
2
-
-
-
-
-
4
-
4
-
-
-
1
-
1
-
-
-
2
-
2
-
3
(3)
0
-
-
1,300
130
(76)
(1,034)
-
320
5,122
60,364
(59,276)
-
(257)
5,953

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

----- Start of picture text -----
FRS 102
Previous year balances 2022 Income Expenditure Transfers 2023
Pension Adj
General reserve 7,300 49,884 (51,759) (283) - 5,142
Designated reserve 77 77
Pension reserve (1,398) - - 283 (282) (1,397)
Restricted funds:
1 Active Communities Fund 11 - - - - 11
2 Big Lottery 12 - - - - 12
3 Community Futures other restricted funds 176 - - - - 176
4 Dementia Services - - - - - -
5 Disability Focus Day 11 - - - - 11
6 Disability Sports Project 22 - - - - 22
7 Employment Service 15 - - - - 15
8 Leisure activities in Avenues East 38 - - - - 38
9 Hope House holiday Fund 4 - - - - 4
10 Partnership Working 9 - - - - 9
11 Disability Forum for Suffolk 4 - - - - 4
12 Teaming Up 62 - - - - 62
13 Garden Fund 10 - - - - 10
14 Brighton road 730 - - - - 730
15 Copse Hill 92 - - - - 92
16 Other restricted projects 77 - - - - 77
17 CSU Donations 16 1 - - - 17
18 Furniture Fund - Squirrel Lodge 10 10
1,299 1 - - - 1,300
Total funds 7,278 49,885 (51,759) - (282) 5,122
----- End of picture text -----

The restricted reserves numbered 19 to 29 have been transferred into the Group as a result of the acquisition of Autism Hampshire.

The following transfers have been made in the year:

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. Designated funds are funds set aside formally by the trustees for a particular purpose.

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

From the 1 November all Autism Hampshire net funds were transferred to The Avenues Group, and Autism Hampshire became an operating subsidiary from that date onward. The combination was a substance of gift to Avenues as the acquisition was at nil value. The total net funds of Autism Hampshire up to the date of acquisition is therefore consolidated and shown in the respective funds.

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

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Page | 56

Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

----- Start of picture text -----
Parent Charity : 1 April Transfers 31 March
2023 Income Expenditure 2024
£'000 £'000 £'000 £'000 £'000
Designated fund 2 - - - 2
General reserve (1,068) 352 (208) 906 (18)
(1,066) 352 (208) 906 (16)
Restricted funds
Active Communities funds 11 - - - 11
Community Futures other restricted funds 32 - - (32) -
Brighton Road 730 - - (730) -
Other projects 144 - - (144) -
917 - - (906) 11
Total funds (149) 352 (208) - (5)
Parent Charity : 1 April Transfers 31 March
2022 Income Expenditure 2023
£'000 £'000 £'000 £'000 £'000
Designated fund 2 - - - 2
General reserve (1,058) 136 (166) (1,088)
Profit gift aided by subsidiary - 20 - - 20
(1,058) 156 (166) - (1,068)
Restricted funds
Active Communities funds 11 - - - 11
Community Futures other restricted funds 32 - - - 32
Brighton Road 730 - - - 730
Other projects 144 - - - 144
917 - - - 917
Total funds (139) 156 (166) - (149)
----- End of picture text -----

The following transfers have been made in the year:

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

14) Analysis of net assets between funds

Analysis of parent charity net assets between funds:

GROUP
Fund balances at 31 March 2024 are
represented by:
Tangible fixed assets
Intangible assets
Current assets
Current liabilities
Long term liabilities
TOTAL FUNDS BEFORE PENSION LIABILITY		 Restricted
Unrestricted
2024
Funds
Funds
Total
£'000
£'000
£'000
-
12,904
12,904
-
242
242
320
6,871
7,191
-
(7,671)
(7,671)
-
(5,330)
(5,330)		 Restricted
Unrestricted
2024
Funds
Funds
Total
£'000
£'000
£'000
-
12,904
12,904
-
242
242
320
6,871
7,191
-
(7,671)
(7,671)
-
(5,330)
(5,330)
320
7,016
7,336
Pension scheme liability -
(1,383)
(1,383)
TOTAL FUNDS INCLUDING LIABILITY ON
PENSION SCHEME RESERVE
320
5,633
5,953
Analysis of group net assets between funds - previous year
Tangible fixed assets
-
12,250
12,250
Intangible assets
-
308
308
Current assets
1,300
3,588
4,888
Current liabilities
-
(5,445)
(5,445)
Long term liabilities
-
(5,482)
(5,482)
TOTAL FUNDS BEFORE PENSION LIABILITY
1,300
5,219
6,519
Pension scheme liability
-
(1,397)
(1,397)
TOTAL FUNDS INCLUDING LIABILITY ON
PENSION SCHEME RESERVE
1,300
3,822
5,122
Fund balances at 31 March 2023 are represented by:
320
5,633
5,953
1,300
5,219
6,519
-
(1,397)
(1,397)
1,300
3,822
5,122

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

ANALYSIS OF PARENT CHARITY NET ASSETS BETWEEN FUNDS:

Tangible fixed assets
Intangible assets
Current assets
Current liabilities
Long term liabilities
TOTAL FUNDS
Fund balances at 31 March 2024 are
represented by:		 Restricted
Unrestricted
Funds
Funds
Total
£'000
£'000
£'000
-
239
239
-
242
242
11
19,528
19,539
-
(19,933)
(19,933)
-
(92)
(92)
11
(16)
(5)
Tangible fixed assets
Intangible assets
Current assets
Current liabilities
Long term liabilities
TOTAL FUNDS
Fund balances at 31 March 2023 are
represented by:		 - 272 272
- 308 308
917 4,515 5,432
-
(6,023)
(6,023)
-
(138)
(138)
917
(1,066)
(149)

15) Operating leases

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

----- Start of picture text -----
2024 2023
Land and Buildings £'000 £'000
Amounts due:
Within one year 786 655
Between two and five years 1,927 1,702
Beyond five years 1,308 415
4,021 2,772
Vehicles & equipments 2024 2023
Amounts due: £'000 £'000
Within one year - 10
- 10
----- End of picture text -----

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

16) Pension obligations

The Avenues Trust Group has contributed to both defined benefit and defined contribution schemes during the year and defined benefit schemes (Social Housing Pension Scheme - SHPS) 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 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;

----- Start of picture text -----
2024 2023 2024 2023
£'000 £'000 No. No.
Pensions Trust SHPS 977 912 1,095 1,095
NHS Pension 19 19 7 7
Pensions Trust - The Growth Plan 4 4 5 5
Per Note 7 1,000 935 1,107 1,107
----- End of picture text -----

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.

The Avenues Trust Group is aware that the Court of Appeal has recently upheld the decision in the Virgin Media vs NTL Pension Trustees II Limited case. The decision puts into question the validity of any amendments made in respect of the rules of a contracted-out pension scheme between 6 April 1997 and 5 April 2016. The judgment means that some historic amendments affecting s.9(2B) rights could be void if the necessary actuarial confirmation under s.37 of the Pension Schemes Act 1993 was not obtained. Until further investigations have been completed by the Social Housing Pension Scheme trustees and the TPT Retirement Solutions Growth Plan scheme trustees and/or any legislative action taken by the government, the potential impact if any, on the valuation of scheme liabilities remains unknown.

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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).

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 since April 2023.

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:

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

From 1 April 2022 to 31 January 2025

£3,312,000 per annum (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:

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		 2024
2023
£'000
£'000
4
7
4

7

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

Reconciliation of opening and closing provisions

Provision at start of period
Deficit contribution paid
Provision at end of period		 2024
2023
£'000
£'000
7
12
(4)
(5)
3
7
2024
2023
2022
% per
annum
% per
annum
% per
annum
ASSUMPTIONS
Rate of discount The Pensions Trust - Growth Plan
5.31
5.52
2.35

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.

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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)

----- Start of picture text -----
31 March 2024 31 March 2023
£'000 £'000
Fair Value of plan assets 5,907 6,350
Present value of defined benefit obligation 7,287 7,740
Surplus (deficit) in plan (1,380) (1,390)
Defined Benefit asset (liability) to be recognised (1,380) (1,390)
----- End of picture text -----

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		 Period ended
31st March 2024
Period ended
31st March 2023
£'000
£'000
7,740
11,210
10
9
362
310
(59)
(110)
(78)
(18)
(46)
(3,460)
Actuarial losses (gains) due to changes in financial assumptions
Benefits paid and expenses
Defined benefit obligation at end of period		 (642)
(201)
7,287
7,740

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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

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 2024
Period ended
31st March 2023
£'000's
£'000's
6,350
9,824
302
276
(440)
(3,870)
337
321
(642)
(201)
5,907
6,350

The actual return on the plan assets (including any changes in share of assets) over the period ended 31 March 2024 was £70,000.

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

----- Start of picture text -----
Period ended Period ended
31st March 2024 31st March 2023
£'000's £'000's
Expenses 10 9
Net interest expense 60 34
Defined benefit costs recognised in statement
of Financial Activities(SOFA) 70 43
----- End of picture text -----

Defined Benefit Costs Recognised In net movement in funds

----- Start of picture text -----
Period ended Period ended
31st March 2024 31st March 2023
£'000's £'000's
Experience on plan assets (excluding amounts included in net interest cost)
- gain (loss) (440) (3,870)
Experience gains and losses arising on the plan liabilities - gain (loss) 59 110
Effects of changes in the demographic assumptions underlying the present
value of the defined benefit obligation - gain (loss) 78 18
Effects of changes in the financial assumptions underlying the present value
of the defined benefit obligation - gain (loss) 46 3,460
Total actuarial gains and losses (before restriction due to some of the
surplus not being recognisable) - gain (loss) (257) (282)
Effects of changes in the amount of surplus that is not recoverable
- -
(excluding amounts included in net interest cost) - gain (loss)
Total amount recognised in other comprehensive income - gain (loss) (257) (282)
----- End of picture text -----

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Assets
Global Equity
Absolute Return
Distressed Opportunities
Credit Relative Value
Alternative Risk Premia
Emerging Markets Debt
Risk Sharing
Insurance-Linked Securities
Property
Infrastructure
Private Equity
Private Debt
Opportunistic Illiquid Credit
High Yield
Cash
Long Lease Property
Secured Income
Liability Driven Investment
Currency Hedging
Net Current Assets
Total assets		 31-Mar-24
31-Mar-23
£'000
£'000
589
119
230
69
208
193
194
240
187
12
76
34
346
468
31
160
237
274
597
725
4
-
233
283
231
271
1
22
116
46
39
191
176
291
2,405
2,924
(3)
12
10
16
5,907
6,350
Key Assumptions
Discount Rate
Inflation (RPI)
Inflation (CPI)
Salary Growth
Allowance for commutation of pension for
cash at retirement		 31-Mar-24
31-Mar-23
% per annum
% per annum
4.9
4.9
3.2
3.2
2.8
2.8
3.8
4.0
75% of
maximum
allowance
75% of
maximum
allowance

The mortality assumptions adopted at 31 March 2024 imply the following life expectancies:

Life expectancy Life expectancy
at age 65
at age 65
(2024) (2023)
Male retiring in 2024 (2023) 20.5 21
Female retiring in 2024 (2023) 23 23.4
Male retiring in 2044 (2043) 21.8 22.2
Female retiring in 2044 (2043) 24.4 24.9

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

17) Active subsidiary undertakings

The Avenues Trust Group controls Avenues South East (company number 03923486; charity number: 1079576), Avenues London (company number 06858705; charity number: 1130445), and Avenues East (company number 03326442, charity number: 1061241); Avenues Management Services (AMSL) Ltd (Company number 13890680), Autism Hampshire (company number 01710300). Five of the companies are limited by guarantee and registered in England except AMSL that is a private limited company with issued share capital.

The Avenues Trust Group also holds 100% control of Avenue South Limited 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 with the exception of Autism Hampshire for which only a part year (from 1 November) was consolidated and net funds brought forward gifted to Avenues as income. A summary of the results of the subsidiaries are shown below.

----- Start of picture text -----
Avenues Donated
South EastAvenues Avenues London Avenues East Avenues South Autism Hampshire Parent Management Services Intra-group movement Acquisitionon Total 2024 Total 2023
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Income 14,923 15,392 7,645 17,000 2,646 177 9,971 (9,776) 2,387 60,365 49,885
Expenditure (14,966) (15,800) (8,077) (17,227) (2,979) (208) (9,796) 9,776 - (59,277) (51,759)
Surplus/(deficit) on ordinary activities (43) (408) (432) (227) (333) (31) 175 - 2,387 1,088 (1,874)
Previous year:
Avenues
Avenues Avenues Avenues Avenues Intra-group Total Total
South East London East South Parent Management movement 2023 2022
Services
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Income 18,307 12,886 7,007 11,507 136 2,119 (2,077) 49,885 47,019
Expenditure (18,369) (13,345) (7,365) (12,492) (166) (2,099) 2,077 (51,759) (45,632)
Surplus/(deficit) on ordinary activities (62) (459) (358) (985) (30) 20 - (1,874) 1,387
----- End of picture text -----

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Docusign Envelope ID: 0C80570E-70D1-407F-9879-EB027428198C

THE AVENUES TRUST GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

The aggregate of the assets, liabilities
and funds as at 31 March 2024 was :		 Avenues
South East
Avenues
London
Avenues
East
Avenues
South
Autism
Hampshire
Parent
Avenues
Management
Services
Intra-group
movement
Donated
on
Acquisition
Total
2024
Total
2023
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Assets 10,934
12,599
1,417
18,810
2,597
20,019
11,130
(58,764)
1,595
20,337
17,445
Liabilities
Total funds
Assets
Liabilities
Total funds
The aggregate of the assets, liabilities
and funds as at 31 March 2023 was :		 (8,715)
(13,226)
(1,794)
(17,717)
(542)
(20,024)
(11,130)
58,764
-
(14,384)
(12,323)
2,219
(627)
(377)
1,093
2,054
(5)
- - 1,595
5,953
5,122
Avenues
South East
Avenues
London
Avenues
East
Avenues
South
Autism
Hampshire
Parent
Aveneues
Management
Services
Intra-group
movement
Donated
on
Acquisition
Total
2023
Total
2022
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
4,876
4,784
981
14,245
-
6,012
1,335
(16,383)
1,595
17,445
17,682
(2,540)
(5,002)
(927)
(12,741)
-
(6,161)
(1,335)
16,383
-
(12,323)
(10,404)
2,336
(218)
54
1,504
-
(149)
-
-
1,595
5,122
7,278

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.

----- Start of picture text -----
2024 2023
PARENT £'000 £'000
Balance owed at 1 April (546) (2,281)
Payroll services provided to subsidiary companies 25,755 31,800
Receipts taken on behalf of group companies (31,392) (34,739)
Payments made on behalf of group companies 8,694 7,963
Intercompany transfer from Avenues South (8,903) (9,018)
Recharges of head office costs 6,498 5,730
Balance due at 31 March 106 (546)
----- End of picture text -----

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