Company number: 06893564 Charity Commission number: 1139891 Office for Scottish Charities Regulator number: SC043881
## Affinity Trust
Report and financial statements For the 18-month period ending 31 March 2023
**Affinity Trust**
## **Contents**
## **For the 18-month period ended 31 March 2023**
Reference and administrative information ............................................................................................ 1 Trustees’ annual report ...................................................................................................................................... 3 Independent auditor’s report ............................................................................................................................ 19 Consolidated statement of financial activities (incorporating an income and expenditure account) ............... 24 Balance sheets ................................................................................................................................................ 25 Consolidated statement of cash flows .............................................................................................................. 26 Notes to the financial statements .................................................................................................................... 27
**Affinity Trust**
## **Reference and administrative information**
## **For the 18-month period ended 31 March 2023**
**Status** The organisation is a company limited by guarantee, incorporated on 30 April 2009 in the name of Affinity Trust. **Company number** 06893564 **Charity number** 1139891 **OSCR number** SC043881 **Country of registration** England & Wales and Scotland. **Country of incorporation** United Kingdom
**Governing document** the organisation is governed by its articles of association dated 30 April 2009 as amended by special resolution registered at Companies House on 11 January 2011.
**Registered office and operational address** 1 St Andrew's Court Wellington Street Thame Oxfordshire OX9 3WT **Executive Team** L Sowerby Chief Executive and Company Secretary A Beland Director of Operations G Law Director of Finance and Resources (joined June 2023) D Leedham Director of Quality S Wight Director of Business Development and Innovation (joined February 2022) N Brittle Development Director (left December 2021) S Hubble Finance Director (from May 2022 Director of Finance and HR; left April 2023)) A Kippax Human Resources Director (left May 2022) **Trustees** Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: T Barron Chair of Trustees and Chair of the Nominations Committee J Edwards A Anketell Retired September 2022 Dr S Ross Retired March 2023 T Tamblyn Retired September 2022 D Walden Retired September 2022 S Rees Chair of the Quality Committee H Burgess Chair of the Finance Committee (formerly known as the Finance and Audit Panel) C Akpakwu C King C Ncube Appointed July 2022 R Parry Appointed July 2022
1
**Affinity Trust**
## **Reference and administrative information**
## **For the 18-month period ended 31 March 2023**
|**Bankers**||
|---|---|
||NatWest|
||Willow Court|
||Minns Business Park|
||7 West Way|
||Oxford|
||OX2 0JB|
||Bank of Scotland|
||Phase 2|
||Canons House|
||Canons Way|
||Bristol|
||BS99 7LB|
|**Bankers & Investment**||
|**Manager**|Coutts & Co|
||440 Strand|
||London|
||WC2R 0QS|
|**Solicitors**|Simons Muirhead & Burton LLP|
||8-9 Frith Street|
||London|
||W1D 3JB|
|**Auditor**|Sayer Vincent LLP|
||Chartered Accountants and Statutory Auditor|
||Invicta House|
||108 – 114 Golden Lane|
||London|
||EC1Y 0TL|
2
**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
The Trustees present their report and the audited financial statements for the 18 month period ended 31 March 2023.
Reference and administrative information set out on pages 1 and 2 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.
## **Objectives and activities**
## **Purposes and aims**
The Board has set the following as Affinity Trust’s purpose statement and values:
## **Purpose Statement**
Supporting people to live their life, their way. Together we make it possible.
## **Values**
## **People are at the heart of everything we do.**
We listen, we learn, we build on strengths.
## **We give our best.**
What we do matters. Good days and bad, we take responsibility.
## **We work together** .
We are one team and value people’s strengths and differences. We are open and trusting with each other.
## **We have courage** .
We try new things. We are creative and adaptable.
Affinity Trust supports 874 people in communities across England and Scotland with support arrangements which range from a few hours per month to "24/7" intensive support. A key part of our ethos is to help support people to live in their own homes and as part of their communities. The main activities of the organisation have been the provision of: -
**Supported living services** - providing personalised support for people living in their own home. The levels of support are substantial but flexible to meet the needs of the individual. Increasingly, the emphasis on support is more towards people who have more complex and specialist needs, for example people with a dual diagnosis of mental health and learning disability, learning disability with autism and/or people with behaviours which challenge.
**Outreach services** - providing smaller amounts of support on a flexible basis.
**Children and Young People -** including the Positive Behaviour Support services **Shared living services** - support to small numbers of people who live together.
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**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
**Day opportunities** - helping people with learning disabilities to access work, sporting, leisure, creative and other opportunities in the community.
**Housing** - Affinity Trust owns a number of properties, most of which provide accommodation for people in our supported living services. We also work with our commissioning partners to help find accommodation that Affinity Trust does not own, typically via Housing Associations or occasionally through private landlord short term leasing arrangements.
**Social Enterprise** - Affinity Trust runs a social enterprise garden centre that provides employment and day opportunities for the people that we support.
The main source of funding for the organisation is Local Government contractual income, and to a much lesser extent income from the NHS, in addition to contributions from the people we support (as shown in Note 3).
## **Strategic Plan**
The Trustees and the Executive Team have developed a new five year Strategic Plan for 2023 – 2028. The plan has five overarching strategic aims which are to:
- Enable people to live great lives
- Support more people to live at home
- Be a workplace where people can grow and develop
- Actively partner, collaborate and influence
- Be financially fit to meet our ambitions
The aims each have performance indicators to enable progress to be assessed during the year.
## **Achievements and performance**
The charity's main activities and beneficiaries are described below. Its charitable activities focus on people with learning and other disabilities and are undertaken to further Affinity Trust’s charitable purposes for the public benefit.
## **Beneficiaries of our services**
The beneficiaries of Affinity Trust are primarily the people to whom we provide direct support in our services across England and Scotland, whereby people are provided with the person centred support that they need to achieve their personal goals. As a result there is a direct and tangible benefit for each person in terms of being more independent and enabled to live a valued and fulfilled life in the particular community where they choose to live, with equality of access to services and the same opportunities and choices that all citizens have. There is also an indirect benefit for the families and friendship groups of the people we support and beyond this the obvious wider benefits as a result of integrating people into their local communities. This is particularly the case where Affinity Trust helps support people to move back to their local community e.g. where they may have been placed in a hospital setting, often remote from family and friends and at a greater financial cost.
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**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
## **Main Achievements against strategic objectives**
|**STRATEGIC**
**OBJECTIVES**|**INDICATORS**|**2021-2023**
**TARGET**|**End of period performance**|
|---|---|---|---|
|**IMPROVE**
**QUALITY**||||
||CQC ratings|85% Good|92% Good|
||Key Quality Audits|Complete and implement
review of KQA January
2022|Interim KQA implemented
pending new system|
||Feedback from people
we support|Collate feedback from
qualityaudits|Feedback obtained and acted
upon|
||Implementation of new
operations system via
Transform 21|Implementation by April
2022|New system implemented across
the organisation|
|**SKILLED &**
**ENGAGED**
**WORKFORCE**||||
||Staff turnover|32%|43%|
||Staff vacancies|10% fewer vacancies than
at September 2021|Vacancies reduced by 3%|
||Staff training|85%|87% achieved|
||Health & wellbeing|Implementation of health
and wellbeingchampions|Health & wellbeing champions
appointed in operational areas|
||Equality, Diversity &
Inclusion|Development of EDI Action
Plan|Plan developed and EDI staff
working groupestablished|
||Pay drawdown facility|Implement Wagestream so
staff can draw wages
beforepayday|Implemented in November 2022
and being used|
|**STRATEGIC**
**GROWTH**||||
||Value of new contracts|£4.5m new contracts
£3.4m netgrowth|New contracts value £2m|
||Number of new people
supported|40|19|
|**FINANCIAL**
**RESILIENCE**||||
||Surplus|Achieve budget surplus|Not achieved due to staff pay
increase|
||Agency cost on budget|3.5% of income|Agency costs were 7.4% of
income|
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**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
||New rota system|Implementation of rota
system|New rota system was
implemented|
|---|---|---|---|
||Improved efficiency|Implementation of new
HR/Payroll, Operations and
Finance systems in time
and on budget|The new systems were all
implemented creating £1m of
efficiency savings|
||Income from legacies|50 people using our free
wills service|Website launch was delayed
Six wills have been completed|
||VAT implementation|£100k saving|Savings of £0.7k achieved|
## **Staff Turnover and Staff Vacancies**
In line with the sector, staff turnover continues to be a primary concern because of the associated impact on costs and quality of support. At times the turnover rate has approached 50% but has reduced during the latter part of the period. A Recruitment and Retention Strategy Group was created to focus on turnover and review business initiatives to support retention. A number of new initiatives were therefore introduced including: Cycle to Work Scheme, Pension Salary Sacrifice Scheme, new Refer a Friend scheme, Condensed Working Trial (compressed hours), celebrating Equality, Diversity and Inclusion (“EDI”) and relaunching the EDI group, online payslips, booking annual leave online, outsourcing exit interviews, Wagestream (allowing employees to access up to 40% of their wages prior to payday) and an introduction of an electronic rota system. Further initiatives are being reviewed with a view to implementation during 2023.
## Promoting the Purpose of Affinity Trust
The Trustees confirm that throughout the year they have acted in a way most likely to promote the purpose of Affinity Trust in achieving its charitable objectives, as set out in the Purposes and Aims section of this report.
In doing so the Trustees have taken a long-term view, have endeavoured to achieve the highest standards of business conduct and have taken into account the interests of beneficiaries, employees, suppliers, the community and other stakeholders as set out in this report.
## Plans for the future
Affinity Trust is now in the first year of a five-year strategic plan. The focus remains on being a provider of high quality with a strong desire to support more people with learning disabilities, especially those who may have more complex needs.
The strategic aims and objectives 2023-2028 are:
- Enable people to live great lives;
- Support more people to live at home;
- Be a workplace where you will grow and develop;
- Actively partner, collaborate & influence;
- Be financially fit to meet our ambitions.
6
**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
There remain numerous challenges facing the broader social care sector at the current time and Affinity Trust intends to continue to work with all stakeholders to tackle these and ensure that it continues to support people safely and with a personalised approach and to continue to grow in pursuit of these overall objectives for the benefit of more people with learning disabilities, their families and their friends.
## Financial review
Affinity Trust decided to change the year end to 31[st] March to be in line with Local Authorities and make providing financial information to them easier. This has resulted in an 18 month period to 31[st] March 2023. For the 18-month period ended 31 March 2023, Affinity Trust recorded a net loss of £2.4m before investments (prior year positive movement £1.1m). The loss was planned and budgeted for and arose principally because Affinity Trust increased the wages paid to frontline staff in August 2022 in order to improve retention rates and reduce agency spend. Income from the councils did not increase until April 2023 and therefore Affinity Trust was making a loss on a substantial number of contracts. The loss for the period was £2.7m and this was after posting an £856k gain on the disposal of two properties during the period.
During the months leading to March 2023 a review of the performance of all contracts was carried out with the aim of withdrawing from contracts which were operating at a financial loss and where the Local Authority would not provide the necessary increase in the contract price. Ultimately, most of the increases for 2023/24 were sufficient to meet increased costs and only four contracts were or are being, for a variety of reasons, handed back.
The organisation made good progress on a significant Transformation programme, ‘Transform 21’ that started during 2021. This involved input from across the organisation on a bottom-up basis to identify solutions to challenges facing the organisation across a range of areas including recruitment, HR, payroll, finance and operations. This programme has resulted in changes in process and procedures and in the selection of new systems. The programme has enabled the organisation to move from paper-based ways of working to electronic ways of working with systems which interface and provide real time data to management. This has created a better and more comprehensive digital platform, is more efficient and effective leads to a better working experience for our staff and will deliver efficiencies for the organisation.
Internal financial reviews of management performance are based on key performance indicators as follows:
- Income, costs and surplus comparisons to budget, prior year amounts and forecasts;
- Staff turnover and absence management;
- Payroll and agency staff costs, trend and comparison to targets;
- Aged debtor management;
- Cash balances
After adjusting for an 18 month period overall income was still higher than the prior year principally due to growth in services including our Specialist Support Division.
Total expenditure was higher than the prior year principally due to the early pay rise for front line staff and inflationary cost pressures.
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**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
Total agency spend increased from £2.2m in 2021 to £6.9m for the 18 month period to 2023. The increase was driven by the challenging recruitment market.
Debtors days reduced to 19 days from 21 days in the prior year due to active management of receivables which continues. Cash and Investment balances fell by £1.18m during the period as a result of the operating losses. The portfolio generated an unrealised loss of £0.3m in the year. This represented a 4.9% loss, below the 5.5% - 7.5% targeted long-term return for the portfolio. The loss is in line with market conditions. The investment portfolio was liquidated in August 2023 and the funds are now invested in treasury reserve accounts.
Affinity Trust Support Limited commenced trading in January 2023 with the aim of recovering VAT on a proportion of expenditure. It made a profit of £3,891 which was distributed in full to the parent company Affinity Trust by way of gift aid in September 2023.
## Reserves policy
The Board has reviewed the reserves policy and confirmed the need to hold reserves to meet all potential creditor obligations as they fall due. A minimum level of general reserves equivalent to one month’s expenditure (c. £5.0m) is required to ensure staff payroll commitments are always met, as staff are typically paid in advance of Local Authorities paying for the support provided. General reserves of £8m were held at year-end and were therefore above the minimum amount. The Trustees took the decision to invest part of the reserves in above inflation pay increases from August 2022 in order to address the recruitment and retention challenges and ensure services remained appropriately staffed. This decision was funded by the use of reserves. Total funds at 31 March 2023 were £12.3m.
Total designated funds are £3.8m which relate to the Net Book Value of Tangible Fixed Assets. The majority are properties that are people's homes that could not easily be realised in the short or medium term.
Restricted funds consist of a capital grant of £0.3m and a small number of voluntary donations from friends and family of people we support and members of the public (see fundraising policy below).
## Going Concern
The accounts have been prepared on a going concern basis. The Trustees have reviewed budgets and cashflow forecasts until 31 March 2024 which support the preparation of the financial statements on this basis. The organisation has significant cash and investment balances and many costs are linked to services. If the organisation was to no longer provide a service for any reason then these costs would no longer be incurred. Further details on the going concern accounting policy are included in Note 1d.
## Investment policy
Affinity Trust’s investment policy is documented within the Treasury Management and Investment Policy, which is reviewed annually by the Finance Committee. To summarise the policy, a widely diversified investment portfolio is established within which a range of investments across the whole risk spectrum from high to low may be held with the expectation that there will be no concentration of assets at the high or low end of the risk spectrum at any point in time. The policy requires Environmental, Social and Governance (ESG) factors to be taken into consideration.
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**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
The Finance Committee is responsible for determining a suitable investment strategy using this approach. The objective is to invest the portfolio to provide a return that exceeds the real (inflation adjusted) value of capital over the longer term. The investment portfolio was liquidated in August 2023 and the funds placed in fixed term deposit bank accounts.
## Fundraising
Donors to Affinity Trust can be assured that we comply with the regulatory standards for fundraising. We are registered with the Fundraising Regulator and are committed to the Fundraising Promise and adherence to the Code of Fundraising Practice. We also hold organisational membership of the Chartered Institute of Fundraising.
In 2021 we recruited a Legacy Development Manager to develop and grow a legacy giving programme for Affinity Trust. The aim was create a new income stream to generate additional funding to support people with learning disabilities and complex needs. This is a medium-long term ambition and no voluntary income was received in the financial period.
We use third-party suppliers to support our fundraising aims where appropriate. We currently use a will writing company to promote online gifts in wills. We have safeguards in place when working with suppliers so that we protect our supporters and the reputation of our charity. Affinity Trust is committed to promoting best practice and demonstrating compliance with the law, in all our fundraising approaches to individual supporters. Affinity Trust commits to fundraising in an honest and transparent way. Therefore, it is vital that the relationship we build with our supporters and potential supporters is a positive one, this is particularly so for vulnerable people. We will ensure that vulnerable people are treated fairly and with compassion and integrity. This policy demonstrates our commitment to the fair treatment of our supporters (or potential supporters) who may lack capacity or find themselves in vulnerable circumstances. Affinity Trust will abide with the requirements set out in the Code of Fundraising Practice and the Charities (Protection and Social Investment) Act 2016 on vulnerable people. We are also committed to our Supporter Promise.
Our website outlines our feedback, compliments and complaints policy for the public and clearly explains how an individual can complain. In the 2021-23 financial year we received no complaints in relation to fundraising.
We have a Vulnerable Supporters’ Policy and a Supporter Promise. We are also signed up to the Fundraising Preference Service to enable individuals to opt out from receiving fundraising communications from us.
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**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
## Principal risks and uncertainties
During the year the Board of Trustees has reviewed the risks facing the organisation and determined specific activities to be carried out in order to reduce and manage these risks. The Board uses an assessment method which identifies risk and then assesses the probability of the risk materialising and the impact on Affinity Trust if it did. This produces a rating for each aspect of risk which enables risks to be prioritised for action and actions are agreed which are designed to manage the risk. The principal risks and uncertainties managed during the year were:
|**Risk**|**Mitigating Actions**|
|---|---|
|High Staff Turnover|-
An above inflation pay increase was made in August 22 and sleep-in
payments have been simplified
-
The transformation programme is improving work and induction
processes
-
Staff recognition and reward schemes are inplace|
|Recruitment|-
Recruitment methods andprocesses have been reviewed|
|Cyber Attack|-
Annual penetration testing is undertaken
-
The new e-mail monitoring and blocking system continues to be
effective
-
Multi-factor authentication has been rolled out across the
organisation
-
Regular off-site system back-ups are made to enable the system to
be restored in the event of an outage|
|Abuse of people we support|-
A Safeguarding Vulnerable Adults (“SOVA”) incident reporting log is
used to detail open, unresolved incidents
-
A summary quarterly SOVA report is reviewed by Senior
Management,the QualityCommittee and the Board|
|Untoward death of someone
we support|-
The organisation ensures mandatory training is up to date and
reported monthly
-
Lessons Learned initiatives are implemented following serious
incidents.
-
External care Management assessments are sought to inform
trainingneeds|
|Loss of high value contracts|-
Operational staff review high value contracts as part of business
review and 121 meetings
-
A Director role has been appointed to improve our offering around
quality
-
Tenders areprepared for in advance|
|Breach of GDPR requirements|-
All managers complete GDPR training
-
The organisation regularly raises awareness and the importance of
data privacy and communicates at appropriate levels within the
organisation
-
Privacy Impact Assessments are undertaken for all significant
changes in the way personal data isprocessed|
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**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
||Reduced ratings by Regulators|-
Registered Managers are provided with support to enable them to
understand the changes in regulatory approach
-
Mock inspections have been carried out to identify locations at risk
and actions required.|
|---|---|---|
The Board of Trustees acknowledges that the work in which Affinity Trust is engaged is never risk free, and nor would the Board wish to completely avoid risk, but it is satisfied that the identified risks are being positively managed.
## Structure, governance and management
Affinity Trust, the parent company, is a charitable company limited by guarantee and is registered with the Charity Commission and the Office of the Scottish Charity Regulator (“OSCR”). Governance is led by a Board of Trustees, who are the directors of the company and who serve fixed terms of office. The company is governed by its Articles of Association which establish the objects and powers of the company.
The objectives of the organisation are the provision of support and other services for people with learning disabilities and other groups who need support.
The non-charitable subsidiary, Affinity Trust Support Limited commenced trading on 27[th] January 2023. It currently holds two local authority contracts and this is expected to grow during 2023-24. All care and support is provided by Affinity Trust staff.
## Appointment of trustees
Recruitment of new Trustees takes place through a formal open recruitment process.
## Trustee role, induction and training
A formal induction process for new Trustees is in place which includes the visiting of services delivered and meeting all levels of staff. Annual appraisals are conducted for individual Trustees by the Chair of the Board of Trustees and Trustees are able to access relevant conferences and training as required.
The Board of Trustees has established some Committees which receive more detailed information and provide greater scrutiny of their designated areas than would be possible by the Board itself. However, the Board continues to receive regular reports and information concerning these areas.
## The Committees are:
- The Finance Committee which meets four times a year and reviews management accounts, draft financial statements, budgets and forecasts, compliance with financial regulations, appointment of auditors, bankers investment managers and other external service providers, management and performance of the investment portfolio financial risk assessments and the Treasury Management and Investment Policy and Reserves Policy.
- The Quality Committee which meets four times a year to review quality assurance of support services, safeguarding, health and safety and other areas relating to and affecting the quality of support which is delivered.
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**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
- The Remuneration Committee meets annually to review and determine the remuneration of the Executive Team; and
- The Nominations Committee and meets as required to facilitate the recruitment of new Trustees and other such matters.
Trustees are remunerated and are able to claim expenses for any work undertaken on behalf of the charity and such remuneration is reviewed and recommended by the Independent Panel for Trustees Remuneration. Remuneration and expenses reclaimed from the charity are set out in note 6 to the financial statements.
The Board of Trustees delegates day-to-day responsibility for the management of the organisation to the Chief Executive and Executive Team consisting of the Director of Finance and Resources, the Director of Operations the Director of Quality and Performance and the Director of Business Development and Innovation. The charity’s operational activities are structured into five geographic operating divisions each headed by a Divisional Director plus a division for Children and Young People.
The divisions and their related Councils for whom we provided services in the year are:
**Scotland –** Argyll and Bute, South Ayrshire, North Ayrshire, Aberdeen **North -** Leeds, Wakefield, Bradford, Staffordshire, East Riding, Wolverhampton, Hereford **Central** – Leicester, Leicestershire, Sheffield and Loughborough, Herefordshire **East** – Norfolk, Suffolk, Cambridgeshire and Peterborough City Council
**South** – Surrey, Portsmouth, Southampton, Somerset, Central Bedfordshire, Oxfordshire, Bristol and Dorset **Children and Young People** – Bradford, Gloucestershire, Greater Manchester, Wakefield
## Remuneration policy for key management personnel
As outlined above under Structure, Governance and Management, the Remuneration Committee is a subcommittee of the Board comprised of four Trustees who meet annually to review and determine the remuneration of the Senior Management Team. The Committee uses all available relevant benchmark data to determine levels of remuneration including any comparable sector remuneration information. As Trustees are also key management personnel, remuneration and expenses reclaimed from the charity by the Trustees are set out in note 6 to the financial statements.
## Employee engagement (including employment of disabled persons)
Affinity Trust aims to provide full and fair opportunities for employment of disabled applicants and to ensure, through training and practical assistance when required, their continued employment and promotion. Staff who become disabled will be given support and accorded every possible opportunity for maintaining their position or for retraining if appropriate. The organisation is committed to ensuring that those staff who require extra equipment, facilities or assistance, both routinely and in an emergency, will have such needs met.
All disabled employees have the opportunity to contribute to discussions about workplace health and safety through the staff group on Equality, Diversity and Inclusion and in individual meetings with their manager.
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**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
Newly appointed disabled staff and staff who become disabled will receive specific information and training on all relevant matters of health and safety. Affinity Trust will ensure that the information is presented in an accessible format.
The Equality, Diversity and Inclusion (“EDI”) Forum engages with representatives across the workforce and continually reviews how EDI is being translated across the business, ensuring we are an accessible organisation for a range of backgrounds. The annual Business Plan is communicated to managers by the Executive Team at divisional meetings each autumn.
## Anti-Corruption and Bribery Policy
Affinity Trust is committed to achieving the highest standard of probity, accountability and openness. This is achieved through a formal policy that is communicated to all staff to ensure that everyone is aware of and has complete clarity about what is acceptable in our dealings with our operating partners, be they suppliers, customers/commissioners or the people we support and their friends and families. Affinity Trust regards bribery and corruption as completely unacceptable. No bribe or inducement should ever be made to any person, or accepted from any other person, in any circumstance, whether or not such inducements result in personal gain.
## Engagement with Suppliers, Customers and Others
Affinity Trust engages in a variety of ways with a wide range of interests and stakeholders in the community. We regularly engage with our major suppliers. We engage with the people we support and their families in a variety of ways including via people we support and family forums and seeking their opinions and feedback via annual surveys. We work with commissioners and other providers e.g. within provider forums at a local level and by actively contributing to market engagement events related to new growth opportunities. Affinity Trust is a member of the All Party Parliamentary Group for Adult Social Care, working alongside other providers and Government representatives including at Minister level. We are also active contributors of forums such as VODG (Voluntary Organisations Disability Group).
We utilise our website and social media channels. Within our Children and Young People division we actively engage with local parent’s forums and have provided foundation level PBS training free of charge to over 200 health and social care professionals in the Bradford area. At a community level we engage with a wide range of organisations including businesses, leisure facilities and community groups to enable opportunities for the people we support to develop their skills and independence, become active participants in their local community and develop pathways to education, training and employment.
## Environmental Policy
The Trustees are aware of the importance of protecting the local environments where services operate and Affinity Trust is committed to ensuring that the activities of the organisation have a minimal adverse impact on the environment. Wherever possible, travel related environmental impacts are minimised through the provision of technology to facilitate meetings and/or online training provision and whilst the organisation only operates from a relatively small number of properties (for accommodation or office use), each of these locations has been the subject of an energy audit under the first and second phases of the Energy Saving Opportunities Scheme (“ESOS” & “ESOS2”).
13
**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
## Energy and Carbon Reporting
As part of the obligations set out under the Energy and Carbon Report Regulations 2018, the charity is required to disclose the energy and carbon created as an organisation over the last reporting year. To fulfil this, we have measured our UK Energy and greenhouse gas emissions as classified within scope 1 and 2 (Streamlined Energy and Carbon Reporting (SECR)) which are presented in tables 1 to 6 below.
## **Energy Consumption and Greenhouse Gases**
The methodology used for determining energy and carbon emissions within this section of the report are as per the regulations above. The calculations include a number of sources of our greenhouse emissions:
Natural gas used for heating the building we occupy and for hot water.
- Electricity used for lighting, cooling and air conditioning.
- Fuel consumption in vehicles that are used for business including staff vehicles and hire cars.
- Gas and electricity consumption have been taken from invoices and sub-meter readings as appropriate.
- Fuel consumption is measured from mileage incurred by employees travelling to and from locations.
The charity’s consumption and associated greenhouse gas emissions for the period April 2022 to March 2023 are shown in Tables 1 and 2 with the prior financial reporting figures (October 2020 to September 2021) in tables 3 – 4
**Table 1: Total energy consumption and associated greenhouse gas emissions for SECR Year 3 reporting period**
|**reporting period**|||||
|---|---|---|---|---|
|**Energy Type**|**Energy Use**
**(kWh)**|**% Split kWh**|**Emissions**
**(tCO2e/yr)**|**% Split CO2e**|
|Gas|1,031,064|46%|188|40%|
|Electricity|374,251|16%|72|16%|
|Transport|848,168|38%|208|44%|
|**Total**|**2,253,483**|**100%**|**468**|**100%**|
**Table 2: Energy and Carbon Conversion Factors**
|**Activity**|**Fuel**|**Unit**|**Year**|**kg CO2e**|
|---|---|---|---|---|
|Combustion of fuel|Natural Gas|kWh|2022|0.18219|
|Electricity generation|UK Electricity|kWh|2022|0.19338|
|Transport (average car)|Diesel|Mile|2022|0.27492|
|Transport (average car)|Petrol|Mile|2022|0.27436|
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**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
**Table 3: Total energy consumption and associated greenhouse gas emissions for SECR Year 2 reporting period 1[st] October 2020 – 30[th] September 2021**
|**Energy Type**|**Energy Use**
**(kWh)**|**% Split kWh**|**Emissions**
**(tCO2e/yr)**|**% Split CO2e**|
|---|---|---|---|---|
|Gas|1,089,968|51%|199|54%|
|Electricity|374,502|18%|79|21%|
|Transport|654,450|31%|92|25%|
|**Total**|**2,118,920**|**100%**|**370**|**100%**|
**Table 4: Energy and Carbon Conversion Factors**
|**Activity**|**Fuel**|**Unit**|**Year**|**kg CO2e**|
|---|---|---|---|---|
|Combustion of fuel|Natural Gas|kWh|2021|0.18282|
|Electricity generation|UK Electricity|kWh|2021|0.21016|
|Transport (average car)|Diesel|KWh|2021|0.14119|
|Transport (average car)
~~•~~|Diesel|Mile|2021|0.22722|
Vehicle use is based on fleet vehicles and employee travel using their own vehicles for business use. An assumption has been made that all vehicles use standard petrol (year 1 assumption was diesel). Both years assumed an engine transmission of 2 litres or less (same assumption as in year 1).
## **Intensity Ratio**
Intensity ratios compare emissions data with an appropriate business metric or financial indicator. This allows a comparison of energy efficiency performance over time and with other similar types of organisation. We have chosen to compare our overall emissions with our annual turnover.
**Table 3: Intensity Ratio**
||**Energy**
**Consumption**|**Total green-**
**house gases**
**emissions**|**Annual**
**Turnover**|**Intensity Ratio**|**Intensity Ratio**|
|---|---|---|---|---|---|
|Year|(kWh|(tCO2e)|£ million|(kWh/£100,000
turnover)|(tCO2e/£100,000)|
|2021-22|2,253,483|468|62|3,635|0.75|
|2020-21|2,118,920|370|58|3,628|0.63|
15
**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
## Energy Efficiency Actions
Overall Affinity Trust’s energy usage increased by 6% in the SECR year 2 figures (year one they declined by 10% due to Covid – 19). The impact of this has been enhanced by COVID-19 restrictions being lifted which have required management, administrative and front-line staff to return to work in offices and the homes of people we support. Affinity Trust recognises that supporting people is at the core of what the organisation does and therefore a significant amount of travel for staff will always be appropriate and required so our staff and the people we support have face to face interaction.
## Trustees’ duty to promote the success of the Trust – section 172 statement
Trustees have a duty to promote the success of the Trust, and in doing so, are required by section 172(1) of the Companies Act 2006 to have regard to the following specific factors:
- The likely consequences of any decision in the long term
All key decisions that will have an impact on the long-term future of the charity are discussed at the relevant sub-committee and Board. Major and long running projects are overseen on behalf of the Board by the Finance Committee to ensure that there is appropriate oversight and that appropriate action is taken where necessary, with regular reports to the full Board.
- The interest of the company’s employees
The impact of major decisions on staff are discussed by the Board who also receive regular updates on staff pay, health and safety, and safeguarding.
- The need to foster the company’s business relationships with suppliers, customers and others
The Board receives information on compliment and complaint levels and any underlying themes. The Board discusses the nature of the relationships it wants with key stakeholders and there are clear processes for engagement with suppliers and customers.
- The impact of the Trust’s operations on the community and the environment
The Trust’s key objective is to support people with learning disabilities, including those with intensive or specialist needs, to live fulfilled lives as active members of their communities. The Board receives regular quality updates on the services provided to ensure funds are used efficiently and effectively with particular attention paid to CQC, Care Inspectorate and our own internal audit ratings.
- The desirability of the organisation maintaining a reputation for high standards of business conduct
The nature of the Trust’s work as a charity makes the maintenance of its reputation for keeping high standards of particular importance. Appropriate systems and processes are in place to ensure the
16
**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
highest standards in business conduct. The Senior Management Team will also update the board with any matters that may have given rise to a reputational risk including any mitigating actions being taken.
- The need to act fairly between members of the Trust
As a registered charity Trust does not have shareholders. The Trustees, who are members of the company, ensure that any surpluses are invested back into the business for the benefit of those for whom we provide care and support.
## Charity Governance Code
The Trustees follow the Charity Governance Code and have reviewed their approach to governance during the period, including its use of KPIs, and has developed a KPI dashboard which is reviewed at every Board Meeting.
## Statement of responsibilities of the Trustees
The Trustees (who are also directors of Affinity Trust for the purposes of company law) are responsible for preparing the Trustees’ annual report including the 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently
- Observe the methods and principles in the Charities SORP
- Make judgements and accounting estimates that are reasonable and prudent
- State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. In so far as the Trustees are aware:
- There is no relevant audit information of which the charitable company’s auditor is unaware
17
**Affinity Trust**
## **Trustees’ annual report**
## **For the period ended 31 March 2023**
- The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information
## Guarantees
Members of the company guarantee to contribute an amount not exceeding £1 to the assets of the company in the event of winding up. The total number of guarantors at 31[st] March 2023 was 22 (2021 - 22). Members of the Board of Trustees have no beneficial interest in the organisation.
## Professional Indemnity Insurance
Affinity Trust holds professional indemnity insurance which includes indemnity for members of the Board of Trustees and officers. This policy also includes fidelity guarantee insurance.
The Trustees’ annual report which includes the strategic report has been approved by the Trustees in their capacity as directors on 28 September 2023.
Tanya Barron Chair
18
Affinity Trust | Independent auditor’s report to the trustees and members of Affinity Trust
## Opinion
We have audited the financial statements of Affinity Trust (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the period ended 31 March 2023 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the 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:
- Give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 March 2023 and of the group’s incoming resources and application of resources, including its income and expenditure, for the period then ended
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- Have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulation 2006 (as amended)
## Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 Affinity Trust'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.
19
Affinity Trust | Independent auditor’s report to the trustees and members of Affinity Trust
## Other Information
The other information comprises the information included in the trustees’ annual report, including the strategic 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:
- The information given in the trustees’ annual report, including the strategic report, for the financial period for which the financial statements are prepared is consistent with the financial statements
- The trustees’ annual report, including the strategic report, has been prepared in accordance with applicable legal requirements
## 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 its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report, including the strategic report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:
- Adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- The parent charitable company financial statements are not in agreement with the accounting records and returns; or
- Certain disclosures of trustees’ remuneration specified by law are not made; or
- We have not received all the information and explanations we require for our audit.
20
Affinity Trust | Independent auditor’s report to the trustees and members of Affinity Trust
## Responsibilities of trustees
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent 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 the 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 the 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
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts.
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.
## Capability of the audit in detecting irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- We enquired of management, and the finance committee, which included obtaining and reviewing supporting documentation, concerning the group’s policies and procedures relating to:
- Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
21
Affinity Trust | Independent auditor’s report to the trustees and members of Affinity Trust
- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
- The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
- We inspected the minutes of meetings of those charged with governance.
- We obtained an understanding of the legal and regulatory framework that the group operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the group from our professional and sector experience.
- We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
- We reviewed any reports made to regulators.
- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
- We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.
22
Affinity Trust | Independent auditor’s report to the trustees and members of Affinity Trust
## 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 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Fleur Holden (Senior statutory auditor) Date: 24 October 2023
for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL
Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006
23
## **Affinity Trust**
**Consolidated statement of financial activities** (incorporating an income and expenditure account)
## **For the period ended 31 March 2023**
|**18 months ended 31 March 2023**
Unrestricted
Restricted
**Total**
Note
£
£
**£**
**Income from:**
3
80,559,937
-
**80,559,937**
3
6,006,977
-
**6,006,977**
3
3,931,267
-
**3,931,267**
3
741,572
-
**741,572**
3
752,900
-
**752,900**
3
971,098
-
**971,098**
159,758
-
**159,758**
856,423
-
**856,423**
93,979,932
-
**93,979,932**
4
62,883
-
**62,883**
4
83,872,198
-
**83,872,198**
4
5,836,820
-
**5,836,820**
4
3,982,180
-
**3,982,180**
4
957,561
2,032
**959,593**
4
758,405
-
**758,405**
4
906,161
-
**906,161**
96,376,208
2,032
**96,378,240**
(2,396,276)
(2,032)
**(2,398,308)**
12
(310,650)
**-**
**(310,650)**
5
(2,706,926)
(2,032)
**(2,708,958)**
**Reconciliation of funds:**
14,744,876
307,089
**15,051,965**
20
12,037,950
305,057
**12,343,007**
Net (losses)/gains on investments
**Net (expenditure)/income for the period and**
**net movement in funds**
Investments
Charitable activities
Supported living
Shared living
Outreach services
Supported employment & day opportunities
Social enterprises
Housing
Housing
**Total expenditure**
Social enterprises
Shared living
Outreach services
Supported employment & day opportunities
Investment manager's fees
Surplus on disposal of fixed assets
**Expenditure on:**
**Total income**
**Net (expenditure)/income before net**
**gains/(losses) on investments**
Total funds brought forward
**Total funds carried forward**
Raising funds
Charitable activities
Supported living|**18 months ended 31 March 2023**
Unrestricted
Restricted
**Total**
Note
£
£
**£**
**Income from:**
3
80,559,937
-
**80,559,937**
3
6,006,977
-
**6,006,977**
3
3,931,267
-
**3,931,267**
3
741,572
-
**741,572**
3
752,900
-
**752,900**
3
971,098
-
**971,098**
159,758
-
**159,758**
856,423
-
**856,423**
93,979,932
-
**93,979,932**
4
62,883
-
**62,883**
4
83,872,198
-
**83,872,198**
4
5,836,820
-
**5,836,820**
4
3,982,180
-
**3,982,180**
4
957,561
2,032
**959,593**
4
758,405
-
**758,405**
4
906,161
-
**906,161**
96,376,208
2,032
**96,378,240**
(2,396,276)
(2,032)
**(2,398,308)**
12
(310,650)
**-**
**(310,650)**
5
(2,706,926)
(2,032)
**(2,708,958)**
**Reconciliation of funds:**
14,744,876
307,089
**15,051,965**
20
12,037,950
305,057
**12,343,007**
Net (losses)/gains on investments
**Net (expenditure)/income for the period and**
**net movement in funds**
Investments
Charitable activities
Supported living
Shared living
Outreach services
Supported employment & day opportunities
Social enterprises
Housing
Housing
**Total expenditure**
Social enterprises
Shared living
Outreach services
Supported employment & day opportunities
Investment manager's fees
Surplus on disposal of fixed assets
**Expenditure on:**
**Total income**
**Net (expenditure)/income before net**
**gains/(losses) on investments**
Total funds brought forward
**Total funds carried forward**
Raising funds
Charitable activities
Supported living|**18 months ended 31 March 2023**
Unrestricted
Restricted
**Total**
Note
£
£
**£**
**Income from:**
3
80,559,937
-
**80,559,937**
3
6,006,977
-
**6,006,977**
3
3,931,267
-
**3,931,267**
3
741,572
-
**741,572**
3
752,900
-
**752,900**
3
971,098
-
**971,098**
159,758
-
**159,758**
856,423
-
**856,423**
93,979,932
-
**93,979,932**
4
62,883
-
**62,883**
4
83,872,198
-
**83,872,198**
4
5,836,820
-
**5,836,820**
4
3,982,180
-
**3,982,180**
4
957,561
2,032
**959,593**
4
758,405
-
**758,405**
4
906,161
-
**906,161**
96,376,208
2,032
**96,378,240**
(2,396,276)
(2,032)
**(2,398,308)**
12
(310,650)
**-**
**(310,650)**
5
(2,706,926)
(2,032)
**(2,708,958)**
**Reconciliation of funds:**
14,744,876
307,089
**15,051,965**
20
12,037,950
305,057
**12,343,007**
Net (losses)/gains on investments
**Net (expenditure)/income for the period and**
**net movement in funds**
Investments
Charitable activities
Supported living
Shared living
Outreach services
Supported employment & day opportunities
Social enterprises
Housing
Housing
**Total expenditure**
Social enterprises
Shared living
Outreach services
Supported employment & day opportunities
Investment manager's fees
Surplus on disposal of fixed assets
**Expenditure on:**
**Total income**
**Net (expenditure)/income before net**
**gains/(losses) on investments**
Total funds brought forward
**Total funds carried forward**
Raising funds
Charitable activities
Supported living|**18 months ended 31 March 2023**
Unrestricted
Restricted
**Total**
Note
£
£
**£**
**Income from:**
3
80,559,937
-
**80,559,937**
3
6,006,977
-
**6,006,977**
3
3,931,267
-
**3,931,267**
3
741,572
-
**741,572**
3
752,900
-
**752,900**
3
971,098
-
**971,098**
159,758
-
**159,758**
856,423
-
**856,423**
93,979,932
-
**93,979,932**
4
62,883
-
**62,883**
4
83,872,198
-
**83,872,198**
4
5,836,820
-
**5,836,820**
4
3,982,180
-
**3,982,180**
4
957,561
2,032
**959,593**
4
758,405
-
**758,405**
4
906,161
-
**906,161**
96,376,208
2,032
**96,378,240**
(2,396,276)
(2,032)
**(2,398,308)**
12
(310,650)
**-**
**(310,650)**
5
(2,706,926)
(2,032)
**(2,708,958)**
**Reconciliation of funds:**
14,744,876
307,089
**15,051,965**
20
12,037,950
305,057
**12,343,007**
Net (losses)/gains on investments
**Net (expenditure)/income for the period and**
**net movement in funds**
Investments
Charitable activities
Supported living
Shared living
Outreach services
Supported employment & day opportunities
Social enterprises
Housing
Housing
**Total expenditure**
Social enterprises
Shared living
Outreach services
Supported employment & day opportunities
Investment manager's fees
Surplus on disposal of fixed assets
**Expenditure on:**
**Total income**
**Net (expenditure)/income before net**
**gains/(losses) on investments**
Total funds brought forward
**Total funds carried forward**
Raising funds
Charitable activities
Supported living|12 months ended 30 September 2021
Unrestricted
Restricted
Total
£
£
£
49,956,692
-
49,956,692
4,290,888
-
4,290,888
2,298,648
-
2,298,648
675,049
-
675,049
626,723
-
626,723
470,362
-
470,362
59,130
-
59,130
-
-
-
58,377,492
-
58,377,492
16,957
-
16,957
49,197,275
-
49,197,275
3,419,272
-
3,419,272
2,949,148
-
2,949,148
603,940
-
603,940
545,656
-
545,656
503,710
-
503,710
57,235,958
-
57,235,958
1,141,534
-
1,141,534
531,916
-
531,916
1,673,450
-
1,673,450
13,071,426
307,089
13,378,515
14,744,876
307,089
15,051,965|12 months ended 30 September 2021
Unrestricted
Restricted
Total
£
£
£
49,956,692
-
49,956,692
4,290,888
-
4,290,888
2,298,648
-
2,298,648
675,049
-
675,049
626,723
-
626,723
470,362
-
470,362
59,130
-
59,130
-
-
-
58,377,492
-
58,377,492
16,957
-
16,957
49,197,275
-
49,197,275
3,419,272
-
3,419,272
2,949,148
-
2,949,148
603,940
-
603,940
545,656
-
545,656
503,710
-
503,710
57,235,958
-
57,235,958
1,141,534
-
1,141,534
531,916
-
531,916
1,673,450
-
1,673,450
13,071,426
307,089
13,378,515
14,744,876
307,089
15,051,965|
|---|---|---|---|---|---|
||93,979,932|-|**93,979,932**|58,377,492|58,377,492|
||62,883
83,872,198
5,836,820
3,982,180
957,561
758,405
906,161|-
-
-
-
2,032
-
-|**62,883**
**83,872,198**
**5,836,820**
**3,982,180**
**959,593**
**758,405**
**906,161**|16,957
49,197,275
3,419,272
2,949,148
603,940
545,656
503,710|16,957
49,197,275
3,419,272
2,949,148
603,940
545,656
503,710|
||96,376,208|2,032|**96,378,240**|57,235,958|57,235,958|
||(2,396,276)
(310,650)|(2,032)
**-**|**(2,398,308)**
**(310,650)**|1,141,534
531,916|1,141,534
531,916|
||(2,706,926)
14,744,876|(2,032)
307,089|**(2,708,958)**
**15,051,965**|1,673,450
13,071,426|1,673,450
13,378,515|
||12,037,950|305,057|**12,343,007**|14,744,876|15,051,965|
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 20 to the financial statements.
24
**Affinity Trust**
Company no. 6893564
## **Balance sheets**
## **As at 31 March 2023**
|**As at 31 March 2023**|**As at 31 March 2023**|**As at 31 March 2023**|||
|---|---|---|---|---|
|**31 March**
**2023**
Note
**£**
£
**Fixed assets:**
10
**1,664,639**
2,042,432
10
**2,008,285**
2,730,355
11
**409,999**
91,078
12
**4,685,684**
6,325,269
**8,768,607**
11,189,134
**Current assets:**
14
**100,924**
77,131
15
**4,993,196**
6,624,049
**5,453,260**
4,991,472
**10,547,380**
11,692,652
**Liabilities:**
16
**5,381,868**
5,938,219
**5,165,512**
5,754,433
**13,934,119**
16,943,567
18
**1,591,112**
1,891,602
**12,343,007**
15,051,965
20
**305,057**
307,089
20a
**3,782,923**
4,563,865
20a
**8,255,027**
10,181,011
Total unrestricted funds
**12,037,950**
14,744,876
**12,343,007**
15,051,965
**Total assets less current liabilities**
Stocks
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
**Net current assets**
Housing properties
Other tangible fixed assets
Investments
Land
**The group**
30 September
2021
**Total net assets**
Restricted funds
Creditors: amounts falling due after one year
**The funds of the charity:**
**Total charity funds**
Unrestricted funds:
General funds
Designated funds|||**31 March**
**2023**
**£**
£
**1,664,639**
2,042,432
**2,008,285**
2,730,355
**409,999**
91,078
**4,685,685**
6,325,270
**8,768,608**
11,189,135
**100,924**
77,131
**5,045,743**
6,624,048
**5,337,653**
4,991,472
**10,484,320**
11,692,651
**5,318,809**
5,938,219
**5,165,511**
5,754,432
**13,934,119**
16,943,567
**1,591,112**
1,891,602
**12,343,007**
15,051,965
**305,057**
307,089
**3,782,923**
4,563,865
**8,255,027**
10,181,011
**12,037,950**
14,744,876
**12,343,007**
15,051,965
**The charity**
30 September
2021||
||**8,768,607**
**100,924**
**4,993,196**
**5,453,260**|11,189,134
77,131
6,624,049
4,991,472|**8,768,608**
**100,924**
**5,045,743**
**5,337,653**|11,189,135
77,131
6,624,048
4,991,472|
||**10,547,380**
**5,381,868**|11,692,652
5,938,219|**10,484,320**
**5,318,809**|11,692,651
5,938,219|
||**5,165,512**|5,754,433|**5,165,511**|5,754,432|
||**13,934,119**
**1,591,112**|16,943,567
1,891,602|**13,934,119**
**1,591,112**|16,943,567
1,891,602|
||**12,343,007**|15,051,965|**12,343,007**|15,051,965|
||**305,057**
**3,782,923**
**8,255,027**|307,089
4,563,865
10,181,011|**305,057**
**3,782,923**
**8,255,027**|307,089
4,563,865
10,181,011|
||**12,037,950**|14,744,876|**12,037,950**|14,744,876|
||**12,343,007**|15,051,965|**12,343,007**|15,051,965|
Approved by the trustees on 28 September 2023 and authorised for issue and signed on their behalf by
Tanya Barron
Trustee and Chair
Hanah Burgess
Trustee and Chair of the Finance Committee
25
**Affinity Trust**
## **Consolidated statement of cash flows**
## **For the period ended 31 March 2023**
|**Net (expenditure)/income for the reporting period**
**(as per the statement of financial activities)**
Losses/(Gains) on investments
Dividends and interest from investments
Interest payable
Depreciation charges
Impairment
Surplus on the disposal of properties
(Increase)/decrease in stocks
Decrease / (increase) in debtors
(Decrease) / increase in creditors
Dividends and interest from investments
Proceeds from the sale of property fixed assets
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
Repayments of borrowing
Interest paid
Cash flows from new borrowing
1 October 2020
**£**
**Net cash provided by/(used in) investing activities**
**Cash flows from financing activities:**
**Analysis of changes in net funds / (debt)**
**Net cash (used in)/provided by operating activities**
**Cash flows from investing activities:**
**Net cash used in financing activities**
**Change in cash and cash equivalents in the period**
Cash and cash equivalents at the beginning of the period
Change in cash and cash equivalents in respect of cash
held by investment manager
**Cash and cash equivalents at the end of the period**|**£**
**£**
(2,708,958)
310,650
(159,758)
63,416
298,267
254,866
(856,423)
(23,793)
1,630,853
(856,842)
**(2,047,722)**
**159,758**
**1,895,532**
**(545,707)**
**3,923,952**
**(2,568,057)**
**2,865,479**
**(344,355)**
**(63,416)**
**-**
**(407,771)**
**409,986**
**4,991,472**
**51,802**
**5,453,260**
Cash flow
1 October
2021
**£**
**£**
**(2,962,302)**
**4,991,472**
49,638
(91,053)
617,070
-
**666,708**
**(91,053)**
56,517
(363,802)
(318,333)
(1,527,800)
**(261,816)**
**(1,891,602)**
**(2,557,410)**
**3,008,817**
**18 months ended**
**31 March 2023**|**£**
**£**
(2,708,958)
310,650
(159,758)
63,416
298,267
254,866
(856,423)
(23,793)
1,630,853
(856,842)
**(2,047,722)**
**159,758**
**1,895,532**
**(545,707)**
**3,923,952**
**(2,568,057)**
**2,865,479**
**(344,355)**
**(63,416)**
**-**
**(407,771)**
**409,986**
**4,991,472**
**51,802**
**5,453,260**
Cash flow
1 October
2021
**£**
**£**
**(2,962,302)**
**4,991,472**
49,638
(91,053)
617,070
-
**666,708**
**(91,053)**
56,517
(363,802)
(318,333)
(1,527,800)
**(261,816)**
**(1,891,602)**
**(2,557,410)**
**3,008,817**
**18 months ended**
**31 March 2023**|£
£
1,673,450
(531,916)
(59,130)
24,796
136,700
-
-
93,797
(736,817)
414,763
1,015,643
59,130
-
(566,052)
2,591,781
(5,607,347)
(3,522,488)
(106,155)
(24,796)
(298,737)
(429,688)
(2,936,533)
7,953,774
(25,769)
4,991,472
Cash flow
**31 March**
**2023**
**£**
**£**
**461,788**
**5,453,260**
43,865
(47,188)
-
-
**43,865**
**(47,188)**
165,561
(198,241)
134,930
(1,392,870)
**300,490**
**(1,591,112)**
**806,143**
**3,814,960**
12 months ended
30 September 2021|£
£
1,673,450
(531,916)
(59,130)
24,796
136,700
-
-
93,797
(736,817)
414,763
1,015,643
59,130
-
(566,052)
2,591,781
(5,607,347)
(3,522,488)
(106,155)
(24,796)
(298,737)
(429,688)
(2,936,533)
7,953,774
(25,769)
4,991,472
Cash flow
**31 March**
**2023**
**£**
**£**
**461,788**
**5,453,260**
43,865
(47,188)
-
-
**43,865**
**(47,188)**
165,561
(198,241)
134,930
(1,392,870)
**300,490**
**(1,591,112)**
**806,143**
**3,814,960**
12 months ended
30 September 2021|
|---|---|---|---|---|
||**159,758**
**1,895,532**
**(545,707)**
**3,923,952**
**(2,568,057)**||59,130
-
(566,052)
2,591,781
(5,607,347)||
||**(344,355)**
**(63,416)**
**-**||(106,155)
(24,796)
(298,737)||
||Cash flow
**£**||Cash flow
**£**||
|||**5,453,260**||4,991,472|
|||1 October
2021
**£**||**31 March**
**2023**
**£**|
|**Cash at bank and in hand**
**7,953,774**
Bank loans
(140,691)
Other loans
(617,070)|**(2,962,302)**
49,638
617,070|**4,991,472**
(91,053)
-|**461,788**
43,865
-|**5,453,260**
(47,188)
-|
|**Debt due within one year**
**(757,761)**
Bank loans
(420,319)
Other loans
(1,209,467)|**666,708**
56,517
(318,333)|**(91,053)**
(363,802)
(1,527,800)|**43,865**
165,561
134,930|**(47,188)**
(198,241)
(1,392,870)|
|**Debt due after oneyear**
**(1,629,786)**|**(261,816)**|**(1,891,602)**|**300,490**|**(1,591,112)**|
|**Total net funds**
**5,566,227**|**(2,557,410)**|**3,008,817**|**806,143**|**3,814,960**|
26
**Affinity Trust**
## **Notes to the financial statements**
## **For the period ended 31 March 2023**
## **1 Accounting policies**
## **a) Statutory information**
Affinity Trust is a charitable company limited by guarantee and is incorporated in England.
The registered office address is 1 St Andrew's Court, Wellington Street, Thame, OX9 3WT. Refer to Trustees Report for principal activities.
## **b) 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 (FRS 102) and the Companies Act 2006.
These financial statements consolidate the results of the charity and its wholly-owned subsidiary Affinity Trust Support Ltd on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006, A summary of the result for the year is disclosed in the notes to the accounts.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note. The financial statements are presented in (£) Sterling which is also the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1.
## **c) Public benefit entity**
The charitable company meets the definition of a public benefit entity under FRS 102 and has therefore applied the relevant public benefit requirements of FRS102.
## **d) Going concern**
The Trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern as the Trustees have reviewed budgets and forecasts for the 12 months following the end of the reporting period which support the fact that the charity is a going concern. In addition the organisation has sufficient reserves available to meet its liabilities as they fall due and has sufficient cash and liquid reserves available to meets its needs. Further details on the trustees' appraisal of going concern is included in the Trustees' annual report.
## **e) Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.
## **f) Income from investments and bank deposits**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.
## **g)**
## **Fund accounting**
Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.
Unrestricted funds are donations and other income received or generated for the charitable purposes.
Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.
27
**Affinity Trust**
## **Notes to the financial statements**
## **For the period ended 31 March 2023**
## **1 Accounting policies (continued)**
## **h) Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of raising funds relate to the costs incurred by the charitable company in generating investment income via its investment portfolio managed by Coutts & Co.
- Expenditure on charitable activities includes the costs of delivering the supported living, registered care and outreach/opportunities services in addition to the cost of the social enterprise and housing activities and support costs.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **i) Allocation of support and governance costs**
Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function is apportioned based on staff cost attributable to each activity.
## **j) Operating leases**
Rental charges are charged on a straight line basis over the term of the lease.
## **k) Tangible fixed assets**
Items of equipment are capitalised where the purchase price exceeds limits as follows: portable buildings £2,000, software, electrical equipment and fixture & fittings £1,000, computer & telephone equipment £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life on a straight line basis. The depreciation rates in use are as follows:
- Freehold land 0%
- Freehold property 2% Property alterations 10% Cars 25% - 33% Office equipment 10% - 50%
An annual impairment review is undertaken in accordance with FRS102. When the carrying amount of the asset is higher than the recoverable amount the asset is written down. Should the recoverable amount of the asset then exceed its carrying amount, the impairment provision will be reversed.
## **l) Listed investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Net gains/(losses) on investments’ in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.
## **m) Stocks**
Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks.
## **n) Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **o) Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term deposits. Cash balances exclude any funds held by the charitable company on behalf of the people supported. At 31 March 2023: £528,717 (30 September 2021: £648,421) was held by Affinity Trust on behalf of people we support.
28
**Affinity Trust**
## **Notes to the financial statements**
## **For the period ended 31 March 2023**
## **1 Accounting policies (continued)**
## **p) Creditors**
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 are normally recognised at their settlement amount after allowing for any trade discounts due.
## **q) Financial instruments**
The charity 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **r) Pensions**
Affinity Trust operates a defined contribution pension scheme. The assets of the scheme are held separately from those of Affinity Trust in an independently administered fund. The pension cost charge represents contributions payable under the scheme by Affinity Trust to the fund. Affinity Trust has no liability under the scheme other than for the payment of those contributions.
Certain employees are members of the NHS Pension Scheme, a defined benefit scheme. The company makes contributions on behalf of employees who are members in accordance with the requirements of the scheme. Other than those contributions there is no additional liability to Affinity Trust in respect of the scheme (See details in note 24).
In addition the charity makes contributions to the West Yorkshire Pension Fund and the South Yorkshire Pension Fund (both defined benefit schemes). The employer's contributions are determined in relation to the current service period only, and consequently the charity accounts for contributions to the schemes as if they were defined contribution schemes (See details in note 24).
## **s) Contingent liabilities**
The payment of interest accrued on grants payable to the Secretary of State for Health is contingent on Affinity Trust intending to sell the properties purchased with the grants. The accrued interest is therefore disclosed as a contingent liability. The substance of the agreements Affinity Trust has with the Secretary of State for Health is for the Secretary of State to receive their share of the increase in the value of the properties (see note 23).
## **2 Key judgements and estimates**
In the application of the charity's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised.
The Trustees do not consider that there are any sources of estimation uncertainty, including from reviewing any impact of the contingent liabilities in note 23, at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
29
**Affinity Trust**
## **Notes to the financial statements**
## **For the period ended 31 March 2023**
## **3 Income from charitable activities**
|**3**
**Income from charitable activities**|||
|---|---|---|
|_Local a_
_Contrib_
_Govern_
**SOFA**
_Local a_
_Contrib_
_Govern_
**SOFA**
_Local_
_Contri_
_Gover_
**SOFA**
_Local_
_Contri_
**SOFA**
_Local_
_Contri_
_Tradin_
**SOFA**
_4180_
_4160_
_4170_
**SOFA**
Government Grants
**Shared living**
Local authorities
Contributions from the people we support
Sub-total for Shared living
**Outreach services**
Government Grants
Government Grants
**Supported living**
Local and NHS authorities
Contributions from the people we support
Sub-total for Supported living
Local authorities
Contributions from the people we support
Government Grants
Sub-total for Supported employment & day opportunities
**Social enterprises**
Trading sales
Local authorities
Contributions from the people we support
Local authorities
Contributions from the people we support
Sub-total for Outreach services
**Supported employment & day opportunities**
**Total income from charitable activities**
Sub-total for Social enterprises
**Housing**
Local authorities
Housing benefit
Contributions from the people we support
Sub-total for Housing|**18 months**
**ended 31**
**March 2023**
**Total**
**£**
**77,157,750**
**2,396,927**
**1,005,260**|12 months
ended 30 Sept.
2021
Total
£
48,936,305
793,020
227,367|
||**80,559,937**
**5,861,782**
**21,129**
**124,066**|49,956,692
4,272,659
17,498
731|
||**6,006,977**
**2,861,177**
**992,194**
**77,896**|4,290,888
2,214,619
10,151
73,878|
||**3,931,267**
**619,769**
**106,677**
**15,127**|2,298,648
581,804
93,245
-|
||**741,572**
**11,820**
**3,818**
**737,262**|675,049
2,487
3,228
621,008|
||**752,900**
**295,666**
**586,560**
**88,872**|626,723
93,923
309,786
66,653|
||**971,098**|470,362|
||**92,963,751**|**58,318,362**|
All income for both years is unrestricted.
30
**Affinity Trust**
## **Notes to the financial statements**
## **For the period ended 31 March 2023**
## **4a Analysis of expenditure (current period)**
|Staff Costs
Training
Recruitment
Insurance
Transport and Travel Costs
Property
Office
Audit & Professional Fees
Trading
Activities
Food and Household Goods
Bad Debt Charge
Sundries
Support costs
Governance costs
**Total expenditure 2023**
Total expenditure 2021|Staff costs
Cost of
raising funds
£
-
-
-
-
-
-
-
-
-
-
-
62,883|Supported||Charitable activities|Charitable activities|||Div overhead
Housing
Support costs
£
9,558,115
34,896
329,562
41,601
241,452
1,643,054
532,656
371,687
-
761
24,995
2,327
92,835|Div overhead
Governance
£
87,830
-
22,300
412
9,462
-
144
60,354
-
-
-
718|**£**
**87,356,758**
**771,790**
**660,190**
**408,812**
**929,077**
**3,114,389**
**1,081,909**
**921,188**
**397,397**
**24,698**
**357,493**
**77,274**
**277,265**
**18 months**
**ended 31**
**March 2023**
**Total**|£
50,523,138
172,407
293,444
226,678
419,536
2,466,020
490,377
1,035,075
318,844
17,312
637,584
393,642
241,901
12 months
ended 30 Sept
2021
Total|
|---|---|---|---|---|---|---|---|---|---|---|---|
|||Supported
Living
£
69,142,011
678,034
263,580
293,873
481,352
605,722
224,163
284,686
-
5,043
195,863
1,131
12,806|Shared Living
£
4,400,748
18,455
15,482
12,895
90,126
395,958
16,072
29,628
-
10,658
102,494
-
646|Outreach
services
£
3,221,792
33,884
14,907
15,033
81,990
16,259
17,117
16,149
-
-
26,804
68,195
2,384|£
728,969
5,007
2,695
3,094
20,614
57,076
1,918
2,172
-
8,236
5,106
46
1,477
Supported
employment &
day|Social
enterprises
£
217,293
1,513
856
879
110
62,889
2,778
33,660
397,397
-
1,365
225
2,718|Housing
£
-
-
10,807.61
41,025.23
3,970.43
333,431.29
287,061.00
122,852.12
-
-
866.20
5,349.99
100,797.32|||||
||62,883
-
-|72,188,264
11,521,749
162,185|5,093,162
733,336
10,323|3,514,515
461,174
6,492|836,409
121,475
1,710|721,686
36,210
510|906,161
-
-|12,873,942
(12,873,942)
-|181,219
-
(181,219)|**96,378,240**
**-**
**-**|57,235,958
-
-|
||**62,883**|**83,872,198**|**5,836,820**|**3,982,180**|**959,593**|**758,405**|**906,161**|**-**|**-**|**96,378,240**|57,235,958|
||16,957|49,197,275|3,419,272|2,949,148|603,940|545,656|503,710|-|-|||
31
**Affinity Trust**
## **Notes to the financial statements**
## **For the period ended 31 March 2023**
## **4b Analysis of expenditure (prior year)**
|**Analysis of expenditure (prior**|**year)**||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|Staff Costs
Training
Recruitment
Insurance
Transport and Travel Costs
Property
Office
Audit & Professional Fees
Trading
Activities
Food and Household Goods
Bad Debt Charge
Sundries
Support costs
Governance costs
**Total expenditure 2021**|Cost of
raising funds
£
-
-
-
-
-
-
-
-
-
-
-
16,957|||Charitable activities||||Support costs
£
5,321,101
9,292
90,835
19,797
61,519
1,271,302
316,608
815,952
-
1,588
40,334
-|Governance
£
57,983
-
4,574
274
2,886
-
-
35,054
-
-
-
-|**£**
**50,523,138**
**172,407**
**293,444**
**226,678**
**419,536**
**2,466,020**
**490,377**
**1,035,075**
**318,844**
**17,312**
**637,584**
**393,642**
**241,901**
**12 months**
**ended 30 Sept**
**2021**
**Total**|
|||Supported
Living
£
39,722,280.00
122,623.00
171,860.00
179,913.00
190,072.00
537,706.00
143,586.00
121,324.00
-
-
452,159.00
267,158.44
134,189.56|Shared Living
£
2,547,512
19,411
14,307
11,777
77,798
120,056
11,815
16,039
-
13,524
128,200
-|Outreach
services
£
2,311,614
15,027
8,508
9,901
68,977
36,758
11,538
16,603
-
551
10,507
124,571
70|£
426,200
5,225
2,769
2,890
17,948
60,731
3,201
1,516
-
1,649
5,048
-
Supported
employment &
day|Social
enterprises
£
136,448
829
420
526
34
37,309
2,752
19,715
318,844
-
1,301
2,902|Housing
£
-
-
171
1,600
302
402,158
877
8,872
-
-
35
1,913
87,782||||
||16,957
-
-|42,042,871
7,064,834
89,570|2,960,439
453,089
5,744|2,614,625
330,335
4,188|527,177
75,802
961|521,080
24,268
308|503,710
-
-|7,948,328
(7,948,328)
-|100,771
-
(100,771)|**57,235,958**
**-**
**-**|
||**16,957**|**49,197,275**|**3,419,272**|**2,949,148**|**603,940**|**545,656**|**503,710**|**-**|**-**|**57,235,958**|
32
**Affinity Trust**
## **Notes to the financial statements**
## **For the period ended 31 March 2023**
## **5 Net income / (expenditure) for the period**
This is stated after charging / (crediting):
|||**18 months**|12 months|
|---|---|---|---|
|||**ended 31**|ended 30 Sept|
|||**March 2023**|2021|
|||**£**|£|
||Depreciation|**298,267**|136,700|
||Impairment|**254,866**|-|
|_5000._|Inventory recognised as an expense|**397,397**|326,645|
|_8509._|Interest payable on loans|**63,416**|24,796|
||Operating lease rentals:|||
||Property|**465,624**|521,325|
||Other|**11,008**|123,759|
||Auditor's remuneration (excluding VAT):|||
|_8509._|Audit - Affinity Trust|**24,000**|22,500|
||Audit - Affinity Trust Support Limited ("ATSL")|**6,000**||
||Other services - corporation tax ATSL|**1,050**|-|
- **6 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel**
Staff costs were as follows:
|6018.
6003
_6004_
_6005._
_6009._
Salaries and wages
Redundancy and termination costs
Social security costs
Employer’s contribution to defined contribution pension schemes
Operating costs of defined benefit pension schemes treated as defined contribution pension schemes
Agency costs|**18 months**
**ended 31**
**March 2023**
**£**
**71,812,296**
**441,799**
**6,248,045**
**1,678,421**
**325,579**|12 months
ended 30 Sept
2021
£
43,361,611
8,811
3,611,838
1,017,074
297,246|
|---|---|---|
||**80,506,140**
**6,850,618**|48,296,580
2,226,558|
||**87,356,758**|50,523,138|
## £132,706 of pension costs were included within creditors (2021: £193,064).
The following number of employees received employee benefits (excluding employer's national insurance and employer pension costs) over £60,000 during the period between:
||**18**|**months**|12 months|
|---|---|---|---|
||**ended 31**||ended 30 Sept|
||**March 2023**||2021|
|||**No.**|No.|
|£60,000 - £69,999||**55**|5|
|£70,000 - £79,999||**18**|1|
|£80,000 - £89,999||**7**|3|
|£90,000 - £99,999||**9**|2|
|£100,000-£109,999||**1**|-|
|£120,000 - £129,999||**-**|1|
|£130,000 - £139,999||**2**|-|
|£160,000 - £169,999||**1**|-|
|£190,000 - £199,999||**1**|-|
The total employee benefits (including employer pension contributions and employer's national insurance) of the key management personnel who are the senior management team as defined on page 1 plus Trustees was £1,035,630 (2021: £738,789). The following was paid to trustees:
|Board of trustees' remuneration
Board of trustees' expenses|**18 months**
**ended 31**
**March 2023**
**£**
**84,486**
**2,807**|12 months
ended 30 Sept
2021
£
55,919
771|
|---|---|---|
||**87,293**|56,690|
33
**Affinity Trust**
## **Notes to the financial statements**
## **For the period ended 31 March 2023**
## **6 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel (continued)**
Board members were paid £7,041 on average for the 18 month period (2021: £5,169). Board members who are also members of the Finance Committee were paid £6,020 for 18 months (2021: £5,411) each and Board members who are also members of the Quality Committee were paid £6,485 for 18 months (2021: £5,411) on average. The Chair was paid £12,960 for 18 months (2021: £8,471). The basis for Trustees' remuneration is set out in the Articles of Association of Affinity Trust. Trustees' remuneration is reviewed annually by an Independent Panel and approved by the Board.
Travel, subsistence, phone and IT expenses were incurred by 8 Trustees (2021: 4) in the course of their duties. There were no retirement benefits accruing for the Trustees.
Affinity Trust holds professional indemnity insurance which includes indemnity for members of the Board of Trustees and officers. This policy also includes fidelity guarantee insurance.
Individual amounts paid to each Trustee for the current period and prior year were as follows:-
|S Ross
T Tamblyn (Retired 30 September 2022)
D Walden (Retired 30 September 2022)
A Anketell (Retired 15 May 2022)
C Akpakwu
C King
C Ncube
R Parry
K Cameron (Vice Chair, Retired 30 March 2021)
M Moody (Retired 30 September 2021)
J Edwards
S Rees
T Barron (Chair)
H Burgess|**18 months**
**ended 31**
**March 2023**
**£**
**-**
9,519
5,623
6,039
3,462
-
8,277
8,579
12,960
8,277
8,375
8,556
3,946
3,680|12 months
ended 30 Sept
2021
£
2,706
5,411
5,411
5,411
5,411
5,411
5,411
4,610
8,471
5,411
1,127
1,127
-
-|
|---|---|---|
||**87,293**|55,918|
## **7 Staff numbers**
The average number of employees (head count based on actual number of staff employed, not FTE) during the period was as follows:
|Shared living
Supported living
Outreach services
Supported employment & day opportunities
Social enterprises
Housing
Support
Chidrens Services|**18 months**
**ended 31**
**March 2023**
**No.**
**130**
**1,802**
**155**
**32**
**19**
**2**
**33**
**110**|12 months
ended 30 Sept
2021
No.
133
1,686
206
68
17
14
23
138|
|---|---|---|
||**2,283**|2,285|
## **8 Related party transactions**
Other than Trustee remuneration as detailed in Note 6 there are no related party transactions to disclose for 2023 (2021: none).
There were no donations from related parties and no restricted donations from related parties.
## **9 Taxation**
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary Affinity Trust Support Limited has distributed profits of £3,891 to Affinity Trust in August 2023 which alleviates the corporation tax liability.
34
**Affinity Trust**
## **Notes to the financial statements**
## **For the period ended 31 March 2023**
## **10 Tangible fixed assets**
|**10**
**Tangible fixed assets**|||||
|---|---|---|---|---|
|**SCF**
**SCF**
**SCF**
**Cost**
**The group and charity**
**Depreciation**
At the start of the period
Charge for the period
Eliminated on disposals
At the end of the period
At the start of the period
Additions
Disposals in period
At the end of the period
Impairment
**Cost**
At the start of the period
**The group and charity**
**Net book value**
**At the end of the period**
At the start of the period
Charge for the period
Eliminated on disposal
At the end of the period
Disposals in period
At the end of the period
**Depreciation**
At the start of the period
**Net book value**
**At the end of the period**
At the start of the period|Freehold Land
£
1,664,932
-
(287,793)|Freehold
property
Alterations
**Total**
£
£
**£**
2,423,436
338,591
**4,426,959**
27,428
9,925
**37,353**
(287,793)
(100,566)
**(676,152)**
2,163,071
247,950
**3,788,160**
59,764
238,799
**298,563**
73,772
25,388
**99,160**
254,866
-
**254,866**
(19,666)
(58,321)
**(77,987)**
368,736
205,866
**574,602**
1,794,335
42,084
**3,213,558**
~~**B/S**~~
2,363,672
99,792
4,128,396
Freehold
property
Alterations
**Total**
£
£
**£**
377,500
249,309
**1,004,309**
(90,000)
(63,811)
**(243,811)**
287,500
185,498
**760,498**
110,609
249,309
**359,918**
9,675
-
**9,675**
(4,650)
(63,811)
**(68,461)**
115,634
185,498
**301,132**
171,866
-
**459,366**
~~**B/S**~~
266,891
-
644,391
**Housing Assets Owned Outright**
**Other Housing Assets**|||
||1,377,139|2,163,071|247,950|**3,788,160**|
||-
-
-
-|59,764
73,772
254,866
(19,666)|238,799
25,388
-
(58,321)|**298,563**
**99,160**
**254,866**
**(77,987)**|
||-|368,736|205,866|**574,602**|
||1,377,139|1,794,335|42,084|**3,213,558**
|
||1,664,932|2,363,672|99,792|~~**B/S**~~
4,128,396|
||Freehold Land
377,500
(90,000)|Freehold
property
£
377,500
(90,000)|||
||287,500|287,500|185,498|**760,498**|
||-
-
-|110,609
9,675
(4,650)|249,309
-
(63,811)|**359,918**
**9,675**
**(68,461)**|
||-|115,634|185,498|**301,132**|
||287,500|171,866|-|**459,366**
~~**B/S**~~|
||377,500|266,891|-|644,391|
Housing assets which are the subject of a legal charge in favour of the Secretary of State are shown separately from those which are owned outright by Affinity Trust.
|**The group and charity**
**Net book value**
**At the end of the period**
At the start of the period|Freehold Land
£
**1,664,639**|Freehold
property
£
**1,966,201**|Alterations
**Total**
£
**£**
**42,084**
**3,672,924**
99,792
4,772,787
**Total Housing Assets**|Alterations
**Total**
£
**£**
**42,084**
**3,672,924**
99,792
4,772,787
**Total Housing Assets**|
|---|---|---|---|---|
||2,042,432|2,630,563|99,792|4,772,787|
All fixed assets are used for charitable purposes. Except as noted above trustees are comfortable there are no other indicators of impairment. A valuation exercise was carried out on the properties during the period and only one property was valued at less than net book value. Impairment has been booked for this one property.
35
**Affinity Trust**
## **Notes to the financial statements**
## **For the period ended 31 March 2023**
## **11 Other tangible fixed assets**
|**SCF**
**Cost**
At the start of the period
Additions in period
Disposals in period
**The group and charity**
At the end of the period
**Depreciation**
At the start of the period
Charge for the period
Eliminated on disposal
At the end of the period
**Net book value**
**At the end of the period**
At the start of the period|Cars
Office
equipment
**Total**
£
£
**£**
62,178
760,813
**822,991**
-
508,354
**508,354**
(62,178)
-
**(62,178)**
-
1,269,167
**1,269,167**
62,178
669,735
**731,913**
-
189,433
**189,433**
(62,178)
-
**(62,178)**
-
859,168
**859,168**
-
409,999
**409,999**
~~**B/S**~~
-
91,078
91,078
**Cars and office equipment**|Cars
Office
equipment
**Total**
£
£
**£**
62,178
760,813
**822,991**
-
508,354
**508,354**
(62,178)
-
**(62,178)**
-
1,269,167
**1,269,167**
62,178
669,735
**731,913**
-
189,433
**189,433**
(62,178)
-
**(62,178)**
-
859,168
**859,168**
-
409,999
**409,999**
~~**B/S**~~
-
91,078
91,078
**Cars and office equipment**|Cars
Office
equipment
**Total**
£
£
**£**
62,178
760,813
**822,991**
-
508,354
**508,354**
(62,178)
-
**(62,178)**
-
1,269,167
**1,269,167**
62,178
669,735
**731,913**
-
189,433
**189,433**
(62,178)
-
**(62,178)**
-
859,168
**859,168**
-
409,999
**409,999**
~~**B/S**~~
-
91,078
91,078
**Cars and office equipment**|
|---|---|---|---|
||-|1,269,167|**1,269,167**|
||62,178
-
(62,178)|669,735
189,433
-|**731,913**
**189,433**
**(62,178)**|
||-|859,168|**859,168**|
||-|409,999|**409,999**
|
||-|91,078|~~**B/S**~~
91,078|
All fixed assets are used for charitable purposes. Trustees are comfortable there are no indicators of impairment.
## **12 Investments**
|Value at the start of the period
**SCF**
Capital (withdrawals)/additions during the period
Purchases within the portfolio
Sales within the portfolio
Income reinvested in the portfolio
**SOFA** Net gain/(loss) on change in fair value
Cash balance held by investment manager
Fair value at the end of the period
Common investment funds
Investment in subsidiary company
Cash
Investments comprise:
Fees|**2023**
2021
**£**
£
**6,325,269**
2,699,025
**(1,500,000)**
3,000,000
**3,968,403**
2,566,012
**(3,923,952)**
(2,591,781)
**140,398**
58,292
**(40,744)**
(16,957)
**(310,650)**
531,916
**4,658,724**
6,246,507
**26,960**
78,762
**4,685,684**
6,325,269
**2023**
2021
**£**
£
**4,658,724**
6,246,507
**-**
-
**26,960**
78,762
**4,685,684**
6,325,269
**The group**
**The group**|**2023**
2021
**£**
£
**6,325,269**
2,699,025
**(1,500,000)**
3,000,000
**3,968,403**
2,566,012
**(3,923,952)**
(2,591,781)
**140,398**
58,292
**(40,744)**
(16,957)
**(310,650)**
531,916
**4,658,724**
6,246,507
**26,960**
78,762
**4,685,684**
6,325,269
**2023**
2021
**£**
£
**4,658,724**
6,246,507
**-**
-
**26,960**
78,762
**4,685,684**
6,325,269
**The group**
**The group**|**2023**
2021
**£**
£
**6,325,269**
2,699,025
**(1,500,000)**
3,000,000
**3,968,403**
2,566,012
**(3,923,952)**
(2,591,781)
**140,398**
58,292
**(40,744)**
(16,957)
**(310,650)**
531,916
**4,658,724**
6,246,507
**26,960**
78,762
**4,685,684**
6,325,269
**B/S**
**2023**
2021
**£**
£
**4,658,724**
6,246,506
**1**
1
**26,960**
78,762
**4,685,685**
6,325,270
**The charity**
**The charity**|**2023**
2021
**£**
£
**6,325,269**
2,699,025
**(1,500,000)**
3,000,000
**3,968,403**
2,566,012
**(3,923,952)**
(2,591,781)
**140,398**
58,292
**(40,744)**
(16,957)
**(310,650)**
531,916
**4,658,724**
6,246,507
**26,960**
78,762
**4,685,684**
6,325,269
**B/S**
**2023**
2021
**£**
£
**4,658,724**
6,246,506
**1**
1
**26,960**
78,762
**4,685,685**
6,325,270
**The charity**
**The charity**|
|---|---|---|---|---|
||**4,685,684**|6,325,269|**4,685,685**|6,325,270|
36
**Affinity Trust**
**Notes to the financial statements**
## **For the period ended 31 March 2023**
## **13 Subsidiary undertaking**
The charity owns the whole of the issued ordinary share capital of Affinity Trust Support Ltd, a company registered in England and Wales. The company number is 13109670. The registered office address is 1 St Andrews Court, Wellington Street, Thame, OX9 3WT.
The subsidiary is used for the provision of support services and commenced trading on 27th January 2023. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are distributed under Gift Aid to the parent charity.
The Trustees Tanya Barron and Keith Cameron, together with the Chief Executive and Finance Director are also Directors of the subsidiary.
A summary of the results of the subsidiary is shown below:
|Assets
Liabilities
**Share Capital and Reserves**
**Operating profit/(loss)**
Interest receivable
Interest payable
**Profit/(loss) on ordinary activities**
The aggregate of the assets, liabilities and reserves was:
Turnover
Cost of sales
**Retained earnings**
**Total comprehensive income**
**Gross Profit**
Administrative expenses
Total retained earnings brought forward
Total comprehensive income
Distribution under Gift Aid to parent charity
**Total retained earnings carried forward**
Taxation on profit/(loss) on ordinary activities|**2023**
**£**
**369,704**
**(358,613)**|2021
£
-
-|
|---|---|---|
||**11,091**
**(7,200)**|-
-|
||**3,891**
**-**
**-**|-
-
-|
||**3,891**
**-**|-
-|
||**3,891**|-|
||**-**
**3,891**
**(3,891)**|-
-
-|
||**-**|-|
||425,564
(425,563)|-
-|
||1|-|
Amounts owed to the parent undertaking are shown in note 15.
Included within administrative expenses above is a management charge of £358,613 (2021: £nil) from the parent entity.
## **Parent charity**
The parent charity's gross income and the results for the year are disclosed as follows:
||**2023**|2021|
|---|---|---|
||**£**|£|
|Gross income|**94,353,526**|58,377,492|
|Result for the year|**(2,703,036)**|1,673,450|
37
**Affinity Trust**
## **Notes to the financial statements**
## **For the period ended 31 March 2023**
## **14 Stocks**
|1000
Stocks held at Englefield Garden Centre
**15**
1110
Trade debtors
Amounts due from group undertakings
Other debtors
Prepayments and accrued income
**16**
_2210._
_2304._ Bank loans
_2100._ Trade creditors
_2203_
Taxation and social security
_2101_
Other creditors
Accruals and deferred income
**Creditors: amounts falling due within one year**
**Debtors**|**2023**
2021
**£**
£
**100,924**
77,131
**100,924**
77,131
**B/S**
**2023**
2021
**£**
£
**2,286,102**
3,296,414
**-**
-
**85,006**
22,868
**2,622,088**
3,304,767
**4,993,196**
6,624,049
**B/S**
**2023**
2021
**£**
£
**47,188**
91,053
**1,566,769**
1,773,684
**1,268,080**
904,381
**263,281**
723,606
**2,236,550**
2,445,495
**5,381,868**
5,938,219
**B/S**
**Group**
**Group**
**Group**|**2023**
2021
**£**
£
**100,924**
77,131
**100,924**
77,131
**B/S**
**2023**
2021
**£**
£
**2,286,102**
3,296,414
**-**
-
**85,006**
22,868
**2,622,088**
3,304,767
**4,993,196**
6,624,049
**B/S**
**2023**
2021
**£**
£
**47,188**
91,053
**1,566,769**
1,773,684
**1,268,080**
904,381
**263,281**
723,606
**2,236,550**
2,445,495
**5,381,868**
5,938,219
**B/S**
**Group**
**Group**
**Group**|**2023**
2021
**£**
£
**100,924**
77,131
**100,924**
77,131
**B/S**
**2023**
2021
**£**
£
**2,066,554**
3,296,413
**362,503**
1
**85,006**
22,868
**2,531,680**
3,304,767
**5,045,743**
6,624,049
**B/S**
**2023**
2021
**£**
£
**47,188**
91,053
**1,566,769**
1,773,684
**1,212,221**
904,381
**263,281**
723,606
**2,229,350**
2,445,495
**5,318,809**
5,938,219
**B/S**
**Charity**
**Charity**
**Charity**|**2023**
2021
**£**
£
**100,924**
77,131
**100,924**
77,131
**B/S**
**2023**
2021
**£**
£
**2,066,554**
3,296,413
**362,503**
1
**85,006**
22,868
**2,531,680**
3,304,767
**5,045,743**
6,624,049
**B/S**
**2023**
2021
**£**
£
**47,188**
91,053
**1,566,769**
1,773,684
**1,212,221**
904,381
**263,281**
723,606
**2,229,350**
2,445,495
**5,318,809**
5,938,219
**B/S**
**Charity**
**Charity**
**Charity**|
|---|---|---|---|---|
||**5,381,868**
**B/S**|5,938,219|**5,318,809**
**B/S**|5,938,219|
## **17 Deferred income**
Deferred income included within "creditors: amounts falling due within one year" comprises income that has been invoiced in advance for services.
|Balance at the beginning of the period
Amount released to income in the period
_2118._ Amount deferred in the period
Balance at the end of the period|**2023**
2021
**£**
£
**160,155**
225,763
**(160,155)**
(225,763)
**194,420**
160,155
**194,420**
160,155
**Group**|**2023**
2021
**£**
£
**160,155**
225,763
**(160,155)**
(225,763)
**194,420**
160,155
**194,420**
160,155
**Group**|**2023**
2021
**£**
£
**160,155**
225,763
**(160,155)**
(225,763)
**194,420**
160,155
**194,420**
160,155
**Charity**|**2023**
2021
**£**
£
**160,155**
225,763
**(160,155)**
(225,763)
**194,420**
160,155
**194,420**
160,155
**Charity**|
|---|---|---|---|---|
||**194,420**|160,155|**194,420**|160,155|
38
**Affinity Trust**
## **Notes to the financial statements**
## **For the period ended 31 March 2023**
## **18 Creditors: amounts falling due after one year**
|**Creditors: amounts falling due after one year**|||||
|---|---|---|---|---|
|Bank loans
Repayable grants:
NHS Grant
Secretary of State for Health|**2023**
2021
**£**
£
**198,241**
363,802
**1,064,000**
1,064,000
**328,871**
463,800
**1,591,112**
1,891,602
**B/S**
**Group**||**2023**
2021
**£**
£
**198,241**
363,802
**1,064,000**
1,064,000
**328,871**
463,800
**1,591,112**
1,891,602
**B/S**
**Charity**||
||**1,591,112**
**B/S**|1,891,602|**1,591,112**
**B/S**|1,891,602|
Bank loans are secured by first mortgages held by NatWest plc on Affinity Trust's housing properties owned outright. Interest is accruing on the NatWest loans at rates between 1.25% and 2.25% above base rate.
Amounts owed to the Secretary of State for Health are secured by a second charge on the properties shown as Other Housing Assets in note 10. Any ultimate sale proceeds from these houses will be used to repay the Secretary of State for Health to a maximum of the original input in addition to rolled up compound interest of four percent above bank base rate.
Affinity Trust obtained a Grant of £1,064,000 from the NHS to support the construction of 4 bungalows plus staff accomodation for Supported Living in Leicestershire. The Grant is repayable if the property is sold or no longer used as accommodation for individuals with learning disability or mental health needs. As at 31 March 2023 the Grant was fully drawn down.
|**Maturity of total debt is as follows**
In one year or less
Between one and two years
Between two and five years
Over five years
Tangible fixed assets
Investments
Net current assets
Creditors due after more than one year
**Net assets at 31 March 2023**
**Analysis of group net assets between funds (current period)**|**2023**
2021
**£**
£
**47,188**
91,053
**119,293**
93,999
**264,721**
265,338
**1,207,098**
1,532,265
**1,638,300**
1,982,655
General
unrestricted
£
£
-
3,782,923
4,685,684
-
5,160,455
-
(1,591,112)
-
8,255,027
3,782,923
**Group**
Designated|**2023**
2021
**£**
£
**47,188**
91,053
**119,293**
93,999
**264,721**
265,338
**1,207,098**
1,532,265
**1,638,300**
1,982,655
General
unrestricted
£
£
-
3,782,923
4,685,684
-
5,160,455
-
(1,591,112)
-
8,255,027
3,782,923
**Group**
Designated|**2023**
2021
**£**
£
**47,188**
91,053
**119,293**
93,999
**264,721**
265,338
**1,207,098**
1,532,265
**1,638,300**
1,982,655
Restricted
**Total funds**
£
**£**
_3324_
300,000
**4,082,923**
-
**4,685,684**
5,057
**5,165,512**
-
**(1,591,112)**
305,057
**12,343,007**
**Charity**|**2023**
2021
**£**
£
**47,188**
91,053
**119,293**
93,999
**264,721**
265,338
**1,207,098**
1,532,265
**1,638,300**
1,982,655
Restricted
**Total funds**
£
**£**
_3324_
300,000
**4,082,923**
-
**4,685,684**
5,057
**5,165,512**
-
**(1,591,112)**
305,057
**12,343,007**
**Charity**|
|---|---|---|---|---|
||**1,638,300**|1,982,655|**1,638,300**|1,982,655|
||General
unrestricted
£
-
4,685,684
5,160,455
(1,591,112)|£
3,782,923
-
-
-
Designated|Restricted
£
_3324_
300,000
-
5,057
-|**Total funds**
**£**
**4,082,923**
**4,685,684**
**5,165,512**
**(1,591,112)**|
||8,255,027|3,782,923|305,057|**12,343,007**|
## **19a Analysis of group net assets between funds (current period)**
## **19b Analysis of group net assets between funds (prior year)**
|**Analysis of group net assets between funds (prior year)**|||||
|---|---|---|---|---|
|Investments
Net current assets
Creditors due after more than one year
**Net assets at 30 September 2021**
Tangible fixed assets|General
Unrestricted
£
-
6,325,269
5,747,344
(1,891,602)|Designated
£
4,563,865
-
-
-|Restricted
£
_3324_
300,000
-
7,089
-|**Total funds**
**£**
**4,863,865**
**6,325,269**
**5,754,433**
**(1,891,602)**|
||10,181,011|4,563,865|307,089|**15,051,965**|
39
**Affinity Trust**
## **Notes to the financial statements**
## **For the period ended 31 March 2023**
## **20a Movements in funds (current period)**
|_3321_
_3323_
_3324_
_3325_
**Total restricted funds**
**Total designated funds**
General funds
Reading Services
**Unrestricted funds:**
Designated funds:
Fixed Assets
**Restricted funds:**
Ayrshire Activity club
Score Fund
Little Glen Road
**Total funds at 31 March 2023**
**Total unrestricted charitable funds**|At the start of
the period
£
2,200
3,889
300,000
1,000|Income &
gains
£
-
-
-
-|Expenditure &
losses
£
-
(2,032)
-
-|Transfers
£
-
-
-
-|**At the end of**
**the period**
**£**
**2,200**
**1,857**
**300,000**
**1,000**|
|---|---|---|---|---|---|
||307,089|-
~~**SOFA**~~|(2,032)
~~**SOFA**~~|-|**305,057**|
||4,563,865|-|-|(780,942)|**B/S**
3,782,923|
||4,563,865|-|-|(780,942)|**3,782,923**|
||10,181,011|93,669,282|(96,376,208)|780,942|8,255,027|
||14,744,876|93,669,282|(96,376,208)|-|**12,037,950**|
|||||||
||15,051,965|93,669,282|(96,378,240)|-|**12,343,007**|
The transfer from designated funds arose on the sale of a property (Pymhurst).
## **20b Movements in funds (prior year)**
|**Total restricted funds**
**Total designated funds**
**General funds**
Score Fund
Little Glen Road
Reading Services
**Unrestricted funds:**
Ayrshire Activity club
**Restricted funds:**
**Total unrestricted funds**
**Total funds at 30 September 2021**
Designated funds:
Fixed Assets|At the start of
the year
£
2,200
3,889
300,000
1,000|Income &
gains
£
-
-
-
-|Expenditure &
losses
£
-
-
-
-|Transfers
£
-
-
-
-|**At the end of**
**the year**
**£**
**2,200**
**3,889**
**300,000**
**1,000**|
|---|---|---|---|---|---|
||307,089|-|-|-|**307,089**|
||4,134,513||-|429,352|**4,563,865**|
||4,134,513|**-**|**-**|429,352|**4,563,865**|
||8,936,913|58,909,408|(57,235,958)|(429,352)|**10,181,011**|
||13,071,426|58,909,408|(57,235,958)|-|**14,744,876**|
||13,378,515|58,909,408|(57,235,958)|-|**15,051,965**|
## **Purposes of restricted funds**
**Ayrshire Activity Club:** A club set up for the use of people with learning disabilities in Ayrshire.
**Score Fund:** Donations to provide opportunities for People with Learning Disabilities.
**Little Glen Road:** Grant given to cover a bond repayable to the Local Authority upon the sale of the property.
**Reading Services:** A donation was made by a private individual to be used for any purpose within the Reading services.
## **Purposes of designated funds**
**Fixed assets:** In 2020 the Trustees made the decision to designate the Net Book Value of fixed assets, excluding the Little Glen restricted funds which recognises the different liquidity profile of these funds, to other unrestricted funds included within the General Funds.
40
**Affinity Trust**
## **Notes to the financial statements**
## **For the period ended 31 March 2023**
## **21 Operating lease commitments**
The group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:
|Less than one year
One to two years
Two to five years|**31 March**
**2023**
**£**
**310,416**
**394,898**
**-**
Land and|30 September
2021
£
249,835
265,284
192,173
Buildings|**31 March**
**2023**
30 September
2021
**£**
£
**7,484**
42,877
**7,217**
9,662
**1,429**
-
**16,130**
52,539
Other items|**31 March**
**2023**
30 September
2021
**£**
£
**7,484**
42,877
**7,217**
9,662
**1,429**
-
**16,130**
52,539
Other items|
|---|---|---|---|---|
||**705,314**|707,292|**16,130**|52,539|
## **22 Post balance sheet events**
There were no post balance sheet events to report.
## **23 Contingent liabilities**
Affinity Trust has a contingent liability with regard to grants used to purchase five properties (30th September 2021: six properties). Affinity Trust will be liable to pay the interest accrued on grants to the Secretary of State for Health if the properties are sold, but only to the maximum amount of any proceeds received.
The substance of the agreements Affinity Trust has with the Secretary of State for Health is for the Secretary of State for Health to retain ownership over any change in the value of the properties and consequently the interest paid is offset against the sale proceeds.
At the current and prior period ends, the contingent liability due to the Secretary of State for Health in the event of Affinity Trust selling all of the properties was:
|Accrued interest payable to the Secretary of State for Health|**31 March**
**2023**
30 September
2021
**£**
£
**2,394,568**
2,953,998
**Group and charity**|
|---|---|
41
**Affinity Trust**
**Notes to the financial statements**
## **For the period ended 31 March 2023**
## **24 Defined benefit pension schemes**
## **NHS Pension Scheme**
Contributions to this scheme, which are charged against net income, are set by the Government Actuary as set out below. The pension charge for the period in respect of this scheme was £311,803 (2021: £297,246). The amount outstanding at 31 March 2023 was £14,175 (2021 £20,453).
Past and present employees are covered by the provisions of the NHS Pension Sceme(s) relevant to their membership. Details of the benefits payable and rules of the Schemes can be found on the NHS Pensions website at: www.nhsbsa.nhs.uk/pensions.
Both are unfunded defined benefit schemes that cover NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State for Health and Social Care in England and Wales. They are not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, each scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS Body of participating in the scheme is taken as equal to the contributions payable to that scheme for the accounting period.
In order that the defined benefit obligations recognised in the financial statements do not differ materially from those that would be determined at the reporting date by a formal actuarial valuation, the Financial Reporting Manual (FReM) requires that "the period between formal valuations shall be four years, with approximate assessments in intervening years".
## An outline of these follows:
## a) Accounting valuation
A valuation of scheme liability is carried out annually by the scheme actuary (currently the Government Actuary’s Department) as at the end of the reporting period. This utilises an actuarial assessment for the previous accounting period in conjunction with updated membership and financial data for the current reporting period, and is accepted as providing suitably robust figures for financial reporting purposes. The valuation of the scheme liability as at 31 March 2023, is based on valuation data as 31 March 2022, updated to 31 March 2023 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used.
The latest assessment of the liabilities of the scheme is contained in the report of the scheme actuary, which forms part of the annual NHS Pension Scheme Accounts. These accounts can be viewed on the NHS Pensions website and are published annually. Copies can also be obtained from The Stationery Office.
## b) Full actuarial (funding) valuation
The purpose of this valuation is to assess the level of liability in respect of the benefits due under the schemes (taking into account recent demographic experience), and to recommend contribution rates payable by employees and employers.
The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2016. The results of this valuation set the employer contribution rate payable from April 2019 to 20.6% of pensionable pay.
The actuarial valuation as at 31 March 2020 is currently underway and will set the new employer contribution rate due to be implemented from April 2024.
42
**Affinity Trust**
## **Notes to the financial statements**
## **For the period ended 31 March 2023**
## **24 Defined benefit pension schemes (continued)**
## **West Yorkshire Pension Fund**
Following the transfer of services from the Bradford and District Care Trust in December 2011, Of the 8 employees that retained their membership of the West Yorkshire Pension Fund (WYPF) which is a defined benefit scheme and operates under the provisions of the Local Government Pension Scheme (Administration) Regulations 2008 (as amended) there are currently only 4 remaining with active scheme membership. The employer's normal contribution rate is 0% and employees pay between 5.8% and 6.5%. Total employer contributions to the WYPF for the period ended March 2023 were £0 (2021:£0) as Affinity Trust received confirmation from the actuary that no 'deficit funding' payment were required. Affinity Trust and the City of Bradford Metropolitan District Council entered into an Admission Agreement and a separate commercial contract dated December 2012 and the substance of these agreements in relation to pension costs is that Affinity Trust's only liability is to pay the monthly employer contributions as determined from time to time by the Scheme actuary. Any actuarial deficit relating to the 8 employees at the end of the contract remains with the Council. The financial statements therefore reflect only the value of the monthly employer contributions described above. Following a triannual actuarial revaluation of the scheme, Affinity Trust were advised that an actuarial surplus had accumulated since the contract commenced and as a result no monthly contributions were required to be paid after March 2014.
## **South Yorkshire Pension Fund**
After the transfer of a number of services in Sheffield in November 2017, one employee retained their membership of the South Yorkshire Pension Fund (SYPF) which is a defined benefit scheme and operates under the provisions of the Local Government Pension Scheme (Administration) Regulations 2008 (as amended). The employer's normal contribution rate was 22.2% of salary and employee paid 6.8%. The employee left on 25th November 2022 and the scheme is in the process of being closed.
## **25 Legal status of the charity**
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.
## **26 Financial instruments**
The carrying amount of the group’s financial instruments was
|The carrying amount of the group’s financial instruments was|||
|---|---|---|
||**Group and charity**||
||**31 March**|30 September|
||**2023**|2021|
||**£**|£|
|**Financial assets**|||
|Assets measured at Fair Value|**4,685,684**|6,325,269|
## **27 Capital Commitments**
There is a capital commitment of £70k for a new website and branding as at 31 March 2023. The total cost is £84k of which £70k has not yet been paid . 30th September 2021 capital commitments were nil.
43