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← Affinity Trust

2024-03-31-accounts

Company number: 06893564 Charity Commission number: 1139891 Office for Scottish Charities Regulator number: SC043881 VAT number 381364491

Affinity Trust

Report and financial statements For the year ended 31 March 2024

Affinity Trust

Contents

For the year ended 31 March 2024

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 year ended 31 March 2024

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 R Butler Interim Finance Director (joined May 2024) J Kenny Interim Director of People (joined March 2024) D Leedham Director of Quality S Wight Director of Business Development and Innovation 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 S Rees Chair of the Quality Committee H Burgess Chair of the Finance Committee C Akpakwu C King C Ncube R Parry

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Affinity Trust

Reference and administrative information

For the year ended 31 March 2024

Bankers
NatWest
Willow Court
Minns Business Park
7 West Way
Oxford
OX2 0JB
Nationwide
Kings Park Road,
Moulton Park,
Northampton
NN3 6NW
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
110 Golden Lane
London
EC1Y 0TG

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Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

The Trustees present their report and the audited financial statements for the year ended 31 March 2024.

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

Purpose 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 approximately 900 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.

Outreach services - providing smaller amounts of support on a flexible basis.

Shared living services - support to small numbers of people who live together.

Day opportunities - supporting people with learning disabilities to access work, sporting, leisure, creative and other opportunities in the community.

Housing - Affinity Trust owns several 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

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Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

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).

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 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, for example where they may have been placed in a hospital setting, often remote from family and friends and at a greater financial cost.

Our Strategic Plan for 2023-28

2023-24 marked the first year of our new Strategic Plan for 2023 – 2028, which has been developed by the Trustees and the Executive. The Strategic Plan has five overarching strategic aims which are to:

1. Enable people to live great lives.

We will provide person-centred support driven by choice and opportunity for everyone, with regulator ratings of GOOD or better. We will leverage our technology to evidence the great outcomes for the people that we support.

2. Support more people to live at home.

We will help people transition from hospital back into the community. We will increase the number of people living in their own homes in the communities of their choice.

3. Be a workplace where people can grow and develop.

We will be an inclusive and diverse organisation, and we will recruit more managers with protected characteristics. We will improve our employee experience through investments in technology. We will focus on the health and wellbeing of our people and provide continued development opportunities.

4. Actively partner, collaborate and influence.

We will be a collaborative and valued partner for evolving health systems, local authorities and other providers to improve the outcomes for people we support. We will advocate alongside the people we support and their families to transform social care policy.

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Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

5. Be financially fit to meet our ambitions.

We will ensure we are financially sustainable and maintain a healthy level of reserves enabling us to continue to grow, innovate and invest to improve the lives of those we support. We will continue to find more efficient ways of working, and to ensure that every pound counts.

For each year of our strategy we develop a business plan that sets out the key objectives for the year, along with a set of Key Performance Indicators to track and evidence the delivery of those objectives.

Organisational achievements for 2023-24

This was the first year of our new five year strategic plan, and we are proud of what our people achieved together during the year.

Strategic Aim 1. Enable people to live great lives.

Strategic Aim 1. Enablepeople to livegreat lives.
What we set out to do in 2023-24 What we achieved
Establish a new organisational approach to
coproduction		 We piloted coproduction in ten locations to help us
learn what works
Redesign our in-house service quality audit
provision		 We configured risk, quality and compliance
software, RADAR as our new audit and assurance
tool designed to evidence and improve service
qualityand compliance
Evaluate our use of assistive technology Learned where we are using assistive technology
and its impact onpeople’s independence
Maintain CQC and CI ratings with 90% rated Good
and a further 5% Outstanding		 We maintained our CQC and CI ratings, with only 2
locations requiringimprovement
Invest in our technology to improve ways of working
and evidence outcomes for thepeople we support		 We automated our rota management and designed
a new Outcomes tool

Strategic Aim 2. Support more people to live at home.

What we set out to do in 2023-24 What we achieved
Support 50 more people We increased our reach with an additional 91
people receivingsupport
Win new contracts from tenders and negotiations
with Commissioners		 We secured nearly £10 million in new contracts

Strategic Aim 3. Be a workplace where our people will grow and develop.

What we set out to do in 2023-24 What we achieved
Launch our new organisational values We launched our new organisational values
alongside our new strategicplan and brand
Create a new staff development and training plan Commenced the development of a new
management developmentprogramme
Achieve minimum of 85% training compliance We exceeded the target, with 89% training
compliance

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Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

Develop our Equality, Diversity and Inclusion (EDI) We developed our EDI action plan, overseen by the plan ERDI working group

Strategic Aim 4. Actively partner, collaborate and influence.

What we set out to do in 2023-24 What we achieved
Refresh and launch our brand and website We launched our new brand and website, reflecting
our new organisational values
Establish relationships with the new Integrated
Care Boards and Systems, as well as provider
collaboratives		 We began to develop our presence in the
Integrated Care Systems where we work, and
gained a better understanding of the changes in our
sector
Actively work with two new housing providers We connected with new social housing developers
and housing associations to help us deliver our
growth ambitions

Strategic Aim 5. Be financially fit to meet our ambitions.

What we set out to do in 2023-24 What we achieved
Exit any contracts that are unsustainable or do not
align with our long-termgrowth objectives		 We completed the work to exit contracts that were
not financiallysustainable
Lease our property portfolio to a specialist housing
provider		 We continued the work to lease our property
portfolio
Achieve or exceed the annual budget for 2023-24 We exceeded our 2023-24 budget

Our People

In line with the sector, staff turnover continues to be a primary concern because of the associated impact on costs and quality of support. Our turnover in the 12 months to April 2024 has remained high, albeit we are now seeing signs that it is reducing, and it currently stands at 38% compared to 43% for the prior year. We will be launching our new people strategy in 2024-25, a large part of which focusses on staff recruitment and retention. This will encapsulate the initiatives we already have in place, plus new ones to tackle turnover and other staffing priorities. Several new initiatives were introduced in 2023-24 including:

In 2024-25 we will be introducing a holiday buying and selling scheme and a Health Care Plan for all employees. We are also launching a staff mentoring scheme whereby new starters will be mentored by an existing staff member to help them successfully navigate through their first 6 months with us.

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Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

Under our Transform 21 change programme we have made huge strides in modernising our IT technology. We have replaced manual, paper-based tasks with more streamlined processes, enabling our people to work more efficiently and effectively in delivering impact for the people that we support. We have implemented a new support management system (Nourish), new rota management system (Sona), new service quality and compliance tool (RADAR), as well as new HR and Payroll systems (iTrent). We have a roadmap to deliver further benefits in the coming months.

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.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

Our plans for 2024-25

2024-25 will be the second year of our 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.

There remain numerous challenges facing the broader social care sector at the current time. Affinity Trust intends to continue to work with all stakeholders to tackle these issues and ensure that it continues to support people safely and with a personalised approach and to grow in pursuit of these overall objectives for the benefit of more people with learning disabilities, their families and their friends.

In 2024-25 we plan to focus on areas including the following:

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Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

Financial review

For the year ended 31 March 2024, Affinity Trust achieved a surplus of £1.9m before investments (prior period 18 month net loss of £2.4m). The total surplus for the period was £2m and this was after recognising a restricted capital grant from the NHS of £1.06m.

Internal financial reviews of management performance are based on key performance indicators as follows:

Total income for the year ended 31 March 2024 was £66.2m (prior period: £62.7m when restated for 12 months) with growth driven by a £1m capital grant, council inflationary uplifts and new contracts.

Total expenditure for the year ended 31 March 2024 was £64.3m, a slight increase over the prior period (prior period £64.2m when restated for 12 months) principally due to the prior period including the early pay rise in August 2023 for front line staff.

Debtors days increased to 21 days from 19 days in the prior period despite active management of receivables which continues. Cash and Investment balances increased by £0.2m during the year as a result of the operating surplus. 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 achieving efficiencies through cost savings. The turnover for the year ended 31 March 2024 was £5.6m (2023: £370k) with the growth in the year being due to contract novations and securing two new contracts in the final quarter in the name of Affinity Trust Support Limited. The subsidiary made a profit of £223k (2023: £4k) which will be distributed in full to the parent company Affinity Trust by way of gift aid in September 2024 within the 9 month deadline.

Reserves policy

Affinity Trust operates a reserves policy that sets a target range for General Reserves equivalent to one month and three months of total operating expenditure. This allows Affinity Trust to manage the liquidity risk arising from delays between the timing of staff related payments and income receipts from Local Authorities. Our reserves policy ensures that our work is protected from the risk of disruption at short notice due to a lack of funds. It allows us to be able to fund strategic opportunities in the future and so that we remain a resilient and financially sustainable organisation.

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Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

At March 2024 Affinity Trust held £10.3m of General Reserves. This is equivalent to 1.7 months of total operating expenditure and therefore within the reserves target range of 1-3 months. Total funds at 31 March 2024 were £14.4m.

Total designated funds are £2.6m relating to the Net Book Value of Tangible Fixed Assets. The majority of designated fixed assets are properties that are people's homes that could not easily be realised in the short or medium term.

Restricted funds consist of £1m which is an NHS capital grant received to fund the capital works at Copton Ash in Leicestershire, 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 cash-flow forecasts until 31 March 2027 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.

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. The Trustees approved this change in approach to achieve attractive returns that were available on the money markets with low levels of risk, following the Bank of England raising of interest rates. We plan to review our investment strategy approach during 24/25.

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.

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Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

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 2024 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.

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 Development and implementation of a people strategy that aims to
improve both recruitment and retention. Specific actions include:
-
Implementation of both leadership and management development
programmes, and a focus on career pathways
-
Developments in our approach to wellbeing and resilience
-
Developments in our approach to engagement and communications
-
A broad range of flexible benefits
-
Continued development of our infrastructure and systems
Failure to recruit the workforce
we need		 Development and implementation of a people strategy that aims to
improve both recruitment and retention. Specific actions include:
-
Enhancing the capacity and capability in our recruitment team,
including appointing a new Head of Recruitment and Inclusion role
-
Improving our approach to employer branding and our value
proposition

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Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

-
Developing our social media presence
-
Implementing a new candidate focussed applicant tracking system
-
Improving and developing our approach to sponsorship and
overseas recruitment
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.
-
We will maintain Cyber Essential accreditation.
Abuse of people we support -
Development of new Quality Assurance tool using RADAR, with
improved reporting focusing on good practise and areas for
improvement.
-
A summary quarterly Safeguarding report is reviewed by the
Executive Team,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.
-
Creation of a Director role with responsibility for service quality and
compliance.
-
Tenders are prepared for in advance.
-
New service Quality Assurance framework and auditing tool
implemented.
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 is processed.
-
Work is overseen byData Protection specialist consultancy.
Reduced ratings by Regulators -
Mock inspections have been carried out to identify locations at risk
and actions required.
-
A Quality Team has been established under the newly created role
of Director of Qualityand Compliance.
Failure to be financially
sustainable		 -
Trustees approve balanced or surplus budget with financial
performance monitored regularly.

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Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

- Ensuring robust controls over cash management are in place,
including debt management.
- Ensuring Support Worker pay reflects market conditions, subject to
affordability.

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 January 2023. It currently holds seven local authority contracts and this is expected to continue to grow during 2024-25. 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:

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Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

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 Finance Director, the Director of Operations, the Director of Quality Improvement and Compliance 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, Peterborough, Surrey, Oxfordshire, West Berkshire

South – Kent, East Sussex, Portsmouth, Southampton, Somerset, Central Bedfordshire, Bristol, 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 two Trustees who meet annually to review and determine the remuneration of the Executive 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

Affinity Trust engages and consults with colleagues using various mechanisms including staff forums, team meetings, surveys and a newsletter, Stargazer.

Further engagement with and related to colleagues with protected characteristics is led by the Equality Diversity and Inclusion group.

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Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

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”).

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 5 below.

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Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

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:

The charity’s consumption and associated greenhouse gas emissions for the period April 2023 to March 2024 are shown in Tables 1 and 2 with the prior financial reporting figures (April 2022 to March 2023) in tables 3 – 4

Table 1: Total energy consumption and associated greenhouse gas emissions for SECR Year 3 reporting period

Energy Type Energy Use
(kWh)		 % Split kWh Emissions
(tCO2e/yr)		 % Split CO2e
Gas 321,832 26% 59 21%
Electricity 146,891 9% 30 11%
Transport 797,236 65% 185 68%
Total 1,265,959 100% 274 100%

Table 2: Energy and Carbon Conversion Factors

Activity Fuel Unit Year kg CO2e
Combustion of fuel Natural Gas kWh 2023 0.18256
Electricity generation UK Electricity kWh 2023 0.207074
Transport (average car) Petrol Mile 2023 0.2627

Table 3: Total energy consumption and associated greenhouse gas emissions for SECR Year 2 reporting period 1[st] April 2022 – 31[st] March 2023 – restated to cover properties in scope only.


scope only.
Energy Type Energy Use
(kWh)		 % Split kWh Emissions
(tCO2e/yr)		 % Split CO2e
Gas 500,078 34% 91 28%
Electricity 153,574 8% 30 9%
Transport 848,168 58% 208 63%
Total 1,501,820 100% 329 100%

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Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

Table 4: 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)
~~•~~		 Petrol Mile 2022 0.27436

Vehicle use is based on fleet vehicles and employee travel using their own vehicles for business use. An assumption has been made in both years that all vehicles use standard petrol. Both years assumed an engine transmission of 2 litres or less.

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 5: 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)
2023-24 1,229,461 267 65 1890 0.41
2022-23 1,455,411 320 62 2347 0.52

Energy Efficiency Actions

Overall Affinity Trust’s energy usage decreased by 17% in the SECR year 3 figures. Since February 2022 we have only had one building for Head Office use instead of two as Head Office staff now work from home for part of the week, and we continue to identify and deliver opportunities to further reduce energy consumption and to be more efficient in how we run our properties and incur business travel. 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.

During 2024-25 we plan to develop an Environmental Sustainability plan for Affinity Trust, with the goal of being more energy efficient through awareness-raising and reduction initiatives. We have appointed an Energy Saving Opportunity Scheme “ESOS” compliance consultant to complete our ESOS assessment and notify our compliance to the Environment Agency.

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:

16

Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

Charity Governance Code

The Trustees follow the Charity Governance Code and have reviewed their approach to governance during the period, including its reviews of strategy and risk and the use of Key Performance Indicators (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

17

Affinity Trust

Trustees’ annual report

For the period ended 31 March 2024

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:

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, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). 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:

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 March 2024 was 22 (2023 - 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, incorporating the strategic report, has been approved by the Trustees in their capacity as directors on 26 September 2024.

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 2024 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:

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:

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:

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:

21

Affinity Trust | Independent auditor’s report to the trustees and members of Affinity Trust

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: 22 October 2024 for and on behalf of Sayer Vincent LLP, Statutory Auditor 110 Golden Lane, LONDON, EC1Y 0TG

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 year ended 31 March 2024

12 months ended 31 March 2024
Unrestricted
Restricted
Total
Note
£
£
£
Income from:
2
-
1,064,000
1,064,000
3
56,287,111
-
56,287,111
3
4,362,418
-
4,362,418
3
2,281,647
-
2,281,647
3
650,724
-
650,724
3
599,387
-
599,387
3
659,267
-
659,267
320,241
-
320,241
-
-
-
65,160,795
1,064,000
66,224,795
4
14,330
-
14,330
4
55,890,690
-
55,890,690
4
4,169,718
-
4,169,718
4
1,774,544
-
1,774,544
4
848,434
-
848,434
4
589,197
884
590,081
4
1,008,590
-
1,008,590
64,295,503
884
64,296,387
865,292
1,063,116
1,928,408
12
89,566
-
89,566
5
954,858
1,063,116
2,017,974
Reconciliation of funds:
12,037,950
305,057
12,343,007
20
12,992,808
1,368,173
14,360,981
Donations and grants
Investment manager's fees
Surplus on disposal of fixed assets
Expenditure on:
Total income
Net income before net gains on investments
Total funds brought forward
Total funds carried forward
Raising funds
Charitable activities
Housing
Total expenditure
Social enterprises
Shared living
Outreach services
Supported employment & day opportunities
Net gains on investments
Net movement in funds
Investments
Charitable activities
Supported living
Shared living
Outreach services
Supported employment & day opportunities
Social enterprises
Housing
Supported living		 12 months ended 31 March 2024
Unrestricted
Restricted
Total
Note
£
£
£
Income from:
2
-
1,064,000
1,064,000
3
56,287,111
-
56,287,111
3
4,362,418
-
4,362,418
3
2,281,647
-
2,281,647
3
650,724
-
650,724
3
599,387
-
599,387
3
659,267
-
659,267
320,241
-
320,241
-
-
-
65,160,795
1,064,000
66,224,795
4
14,330
-
14,330
4
55,890,690
-
55,890,690
4
4,169,718
-
4,169,718
4
1,774,544
-
1,774,544
4
848,434
-
848,434
4
589,197
884
590,081
4
1,008,590
-
1,008,590
64,295,503
884
64,296,387
865,292
1,063,116
1,928,408
12
89,566
-
89,566
5
954,858
1,063,116
2,017,974
Reconciliation of funds:
12,037,950
305,057
12,343,007
20
12,992,808
1,368,173
14,360,981
Donations and grants
Investment manager's fees
Surplus on disposal of fixed assets
Expenditure on:
Total income
Net income before net gains on investments
Total funds brought forward
Total funds carried forward
Raising funds
Charitable activities
Housing
Total expenditure
Social enterprises
Shared living
Outreach services
Supported employment & day opportunities
Net gains on investments
Net movement in funds
Investments
Charitable activities
Supported living
Shared living
Outreach services
Supported employment & day opportunities
Social enterprises
Housing
Supported living		 12 months ended 31 March 2024
Unrestricted
Restricted
Total
Note
£
£
£
Income from:
2
-
1,064,000
1,064,000
3
56,287,111
-
56,287,111
3
4,362,418
-
4,362,418
3
2,281,647
-
2,281,647
3
650,724
-
650,724
3
599,387
-
599,387
3
659,267
-
659,267
320,241
-
320,241
-
-
-
65,160,795
1,064,000
66,224,795
4
14,330
-
14,330
4
55,890,690
-
55,890,690
4
4,169,718
-
4,169,718
4
1,774,544
-
1,774,544
4
848,434
-
848,434
4
589,197
884
590,081
4
1,008,590
-
1,008,590
64,295,503
884
64,296,387
865,292
1,063,116
1,928,408
12
89,566
-
89,566
5
954,858
1,063,116
2,017,974
Reconciliation of funds:
12,037,950
305,057
12,343,007
20
12,992,808
1,368,173
14,360,981
Donations and grants
Investment manager's fees
Surplus on disposal of fixed assets
Expenditure on:
Total income
Net income before net gains on investments
Total funds brought forward
Total funds carried forward
Raising funds
Charitable activities
Housing
Total expenditure
Social enterprises
Shared living
Outreach services
Supported employment & day opportunities
Net gains on investments
Net movement in funds
Investments
Charitable activities
Supported living
Shared living
Outreach services
Supported employment & day opportunities
Social enterprises
Housing
Supported living		 12 months ended 31 March 2024
Unrestricted
Restricted
Total
Note
£
£
£
Income from:
2
-
1,064,000
1,064,000
3
56,287,111
-
56,287,111
3
4,362,418
-
4,362,418
3
2,281,647
-
2,281,647
3
650,724
-
650,724
3
599,387
-
599,387
3
659,267
-
659,267
320,241
-
320,241
-
-
-
65,160,795
1,064,000
66,224,795
4
14,330
-
14,330
4
55,890,690
-
55,890,690
4
4,169,718
-
4,169,718
4
1,774,544
-
1,774,544
4
848,434
-
848,434
4
589,197
884
590,081
4
1,008,590
-
1,008,590
64,295,503
884
64,296,387
865,292
1,063,116
1,928,408
12
89,566
-
89,566
5
954,858
1,063,116
2,017,974
Reconciliation of funds:
12,037,950
305,057
12,343,007
20
12,992,808
1,368,173
14,360,981
Donations and grants
Investment manager's fees
Surplus on disposal of fixed assets
Expenditure on:
Total income
Net income before net gains on investments
Total funds brought forward
Total funds carried forward
Raising funds
Charitable activities
Housing
Total expenditure
Social enterprises
Shared living
Outreach services
Supported employment & day opportunities
Net gains on investments
Net movement in funds
Investments
Charitable activities
Supported living
Shared living
Outreach services
Supported employment & day opportunities
Social enterprises
Housing
Supported living		 18 months ended 31 March 2023
Unrestricted
Restricted
Total
£
£
£
-
-
-
80,347,177
-
80,347,177
6,006,977
-
6,006,977
3,931,267
-
3,931,267
954,332
-
954,332
752,900
-
752,900
971,098
-
971,098
159,758
-
159,758
856,423
-
856,423
93,979,932
-
93,979,932
62,883
-
62,883
83,669,887
-
83,669,887
5,836,820
-
5,836,820
3,982,180
-
3,982,180
1,159,872
2,032
1,161,904
758,405
-
758,405
906,161
-
906,161
96,376,208
2,032
96,378,240
(2,396,276)
(2,032)
(2,398,308)
(310,650)
-
(310,650)
(2,706,926)
(2,032)
(2,708,958)
14,744,876
307,089
15,051,965
12,037,950
305,057
12,343,007
65,160,795 1,064,000 66,224,795 93,979,932
14,330
55,890,690
4,169,718
1,774,544
848,434
589,197
1,008,590		 -
-
-
-
-
884
-		 14,330
55,890,690
4,169,718
1,774,544
848,434
590,081
1,008,590		 62,883
83,669,887
5,836,820
3,982,180
1,159,872
758,405
906,161
64,295,503 884 64,296,387 96,376,208
865,292
89,566		 1,063,116
-		 1,928,408
89,566		 (2,396,276)
(310,650)
954,858
12,037,950		 1,063,116
305,057		 2,017,974
12,343,007		 (2,706,926)
14,744,876
12,992,808 1,368,173 14,360,981 12,037,950

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 2024

As at 31 March 2024 As at 31 March 2024 As at 31 March 2024
31 March
2024
Note
£
£
Fixed assets:
10
1,664,639
1,664,639
10
1,975,113
2,008,285
11
372,687
409,999
12
-
4,685,684
4,012,439
8,768,607
Current assets:
14
96,049
100,924
15
6,162,056
4,993,196
5,014,195
-
5,364,916
5,453,260
16,637,216
10,547,380
Liabilities:
16
5,806,516
5,381,868
10,830,700
5,165,512
14,843,139
13,934,119
18
482,158
1,591,112
14,360,981
12,343,007
20
1,368,173
305,057
20a
2,648,439
3,782,923
20a
10,344,369
8,255,027
Total unrestricted funds
12,992,808
12,037,950
14,360,981
12,343,007
Unrestricted funds:
General funds
Designated funds
Total charity funds
Total net assets
Restricted funds
Creditors: amounts falling due after one year
The funds of the charity:
Housing properties
Other tangible fixed assets
Investments
Land
The group
31 March
2023
Total assets less current liabilities
Stocks
Debtors
Short term deposits
Cash at bank and in hand
Creditors: amounts falling due within one year
Net current assets		 31 March
2024
£
£
1,664,639
1,664,639
1,975,113
2,008,285
372,687
409,999
1
4,685,685
4,012,440
8,768,608
96,049
100,924
5,983,515
5,045,743
5,014,195
-
5,131,049
5,337,653
16,224,808
10,484,320
5,394,109
5,318,809
10,830,699
5,165,511
14,843,139
13,934,119
482,158
1,591,112
14,360,981
12,343,007
1,368,173
305,057
2,648,439
3,782,923
10,344,369
8,255,027
12,992,808
12,037,950
14,360,981
12,343,007
The charity
31 March
2023
4,012,439
96,049
6,162,056
5,014,195
5,364,916		 8,768,607
100,924
4,993,196
-
5,453,260		 4,012,440
96,049
5,983,515
5,014,195
5,131,049		 8,768,608
100,924
5,045,743
-
5,337,653
16,637,216
5,806,516		 10,547,380
5,381,868		 16,224,808
5,394,109		 10,484,320
5,318,809
10,830,700 5,165,512 10,830,699 5,165,511
14,843,139
482,158		 13,934,119
1,591,112		 14,843,139
482,158		 13,934,119
1,591,112
14,360,981 12,343,007 14,360,981 12,343,007
1,368,173
2,648,439
10,344,369		 305,057
3,782,923
8,255,027		 1,368,173
2,648,439
10,344,369		 305,057
3,782,923
8,255,027
12,992,808 12,037,950 12,992,808 12,037,950
14,360,981 12,343,007 14,360,981 12,343,007

Approved by the trustees on 26 September 2024 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 year ended 31 March 2024

For the year ended 31 March 2024 For the year ended 31 March 2024
Net income/(expenditure) for the reporting period
(as per the statement of financial activities)
(Gains)/losses on investments
Dividends and interest from investments
Interest payable
Depreciation charges
Impairment
Surplus on the disposal of properties
Decrease/ (increase) in stocks
(Increase) / decrease in debtors
Decrease 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
1 October 2021
£
Cash and cash equivalents at the end of the period
Net cash (used in) / provided by investing activities
Cash flows from financing activities:
Analysis of changes in net funds / (debt)
Net cash provided by/ (used in) 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		 £
£
2,017,974
(89,566)
(320,241)
11,830
269,489
-
-
4,875
(1,168,860)
(684,306)
41,195
320,241
-
(199,005)
688,870
(859,346)
(49,240)
(95,429)
(11,830)
(107,259)
(115,304)
5,453,260
26,960
5,364,916
Cash flow
1 April 2023
£
£
461,788
5,453,260
43,865
(47,188)
43,865
(47,188)
165,561
(198,241)
165,561
(198,241)
671,214
5,207,831
12 months ended 31 March
2024		 £
(2,708,958)
310,650
(159,758)
63,416
298,267
254,866
(856,423)
(23,793)
1,630,853
(856,842)
18 months		 £
(2,047,722)
2,865,479
(407,771)
409,986
4,991,472
51,802
ended 31 March
2023
320,241
-
(199,005)
688,870
(859,346)		 159,758
1,895,532
(545,707)
3,923,952
(2,568,057)
(95,429)
(11,830)		 (344,355)
(63,416)
Cash flow
£		 Cash flow
£
5,364,916 5,453,260
1 April 2023
£		 31 March 2024
£
Cash at bank and in hand
Bank loans payable less than one year
Debt due within one year
Bank loans payable more than one year		 4,991,472
(91,053)		 461,788
43,865		 5,453,260
(47,188)		 (88,344)
47,188		 5,364,916
-
(91,053)
(363,802)		 43,865
165,561		 (47,188)
(198,241)		 47,188
48,241		 -
(150,001)
Debt due after oneyear (363,802) 165,561 (198,241) 48,241 (150,001)
Total net funds 4,536,617 671,214 5,207,831 7,085 5,214,916

26

Affinity Trust

Notes to the financial statements

For the year ended 31 March 2024

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 year ended 31 March 2024

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:

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:

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 2024: £745,412 (31 March 2023: £528,717) was held by Affinity Trust on behalf of people we support.

28

Affinity Trust

Notes to the financial statements

For the year ended 31 March 2024

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 Oxfordshire Pension Fund ( both defined benefit schemes). The South Yorkshire Penion Fund (also defined benefit) was closed in June 2023. 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).

t) 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.

2 Income from donations and grants

NHS capital grant Copton Ash Unrestricted
£
-		 £
1,064,000
Restricted		 12 months
ended 31
March 2024
18 months
ended 31
March 2023
Total
Total
£
£
1,064,000
-
1,064,000
-
- 1,064,000

See Note 20 for details on the NHS capital grant.

29

Affinity Trust

Notes to the financial statements

For the year ended 31 March 2024

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
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
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
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
Government Grants		 12 months
ended 31
March 2024
18 months
ended 31
March 2023
Total
Total
£
£
55,007,680
76,967,962
1,279,431
2,373,955
-
1,005,260
56,287,111
80,347,177
4,257,625
5,861,782
104,793
21,129
-
124,066
4,362,418
6,006,977
2,112,891
3,577,821
168,756
275,550
-
77,896
2,281,647
3,931,267
584,775
809,557
53,555
129,648
12,394
15,127
650,724
954,332
8,968
11,820
5,971
3,818
584,448
737,262
599,387
752,900
203,553
295,666
393,104
586,560
62,610
88,872
659,267
971,098
64,840,554
92,963,751

Some prior period numbers have been changed for consistency with current classifications.

30

Affinity Trust

Notes to the financial statements

For the year ended 31 March 2024

4a Analysis of expenditure (current period)

Staff Costs
Training
Recruitment
Insurance
Transport and Travel Costs
Property
Office
IT Software, Equipment and Repairs
Audit & Professional Fees
Trading
Activities
Food and Household Goods
Bad Debt Charge
Sundries
Support costs
Governance costs
Total expenditure 2024
Total expenditure 2023		 Staff costs
Cost of
raising funds
£
14,330		 Charitable activities Charitable activities Div overhead
Housing
Support costs
£
5,125,232
107,402
71,023
236,135
202,222
449,278
187,524
918,374
-
-
630
28,940
(165,968)
103,736		 Div overhead
Governance
£
49,655
-
-
281
4,165
-
383
-
48,789
-
-
-
-
-		 £
£
58,050,066
87,356,758
432,518
771,789
398,308
660,190
464,177
408,812
669,736
929,076
1,502,815
1,492,609
633,733
1,081,909
934,619
1,621,780
716,648
921,188
305,149
397,397
2,065
24,698
225,906
357,493
(162,296)
77,274
122,943
277,267
12 months
ended 31
March 2024
Total
18 months
ended 31
March 2023
Total
Supported
Living
£
47,471,976
264,567
285,294
175,841
297,708
125,411
262,420
12,693
265,521
-
-
124,550
(12,811)
2,619		 Shared Living
£
3,089,449
28,490
21,348
14,019
85,439
301,353
86,327
1,770
44,651
-
-
66,349
29
-		 Outreach
services
£
1,427,201
25,705
16,481
7,207
44,468
1,079
15,324
-
17,830
-
-
4,196
15,368
814		 £
647,380
3,944
3,692
3,943
31,571
56,023
7,099
34
2,449
-
1,436
655
-
-
Supported
employment &
day		 Social
enterprises
£
166,436
2,372
469
597
-
39,871
3,742
1,749
43,122
305,149
-
848
1,090
1,444		 Housing
£
72,737
39
-
26,154
4,162
529,800
70,914
-
294,286
-
-
368
(5)
-
14,330
-
-		 49,275,789
6,522,181
92,720		 3,739,224
424,460
6,034		 1,575,673
196,083
2,788		 758,226
88,944
1,264		 566,889
22,867
325		 998,455
9,993
142		 7,264,528
(7,264,528)
-		 103,273
-
(103,273)		 64,296,387
96,378,240
-
-
-
-
64,296,387
96,378,240
14,330 55,890,690 4,169,718 1,774,544 848,434 590,081 1,008,590 - -
62,883 83,669,887 5,836,820 3,982,180 1,161,904 758,405 906,161 - -

The bad debt charge is a credit in the year as the bad debt provision has fallen.

31

Affinity Trust

Notes to the financial statements

For the year ended 31 March 2024

4b Analysis of expenditure (prior year)

Analysis of expenditure (prior year)
Staff Costs
Training
Recruitment
Insurance
Transport and Travel Costs
Property
Office
IT Software, Equipment and Repairs
Audit & Professional Fees
Trading
Activities
Food and Household Goods
Bad Debt Charge
Sundries
Support costs
Governance costs
Total expenditure 2023		 Cost of
raising funds
£
-
-
-
-
-
-
-
-
-
-
-
-
62,883		 Charitable activities Support costs
£
9,558,115
34,896
329,562
41,601
241,452
358,314
532,656
1,284,740
371,687
-
761
24,995
2,327
92,835		 Governance
£
£
87,830
87,356,758
-
771,789
22,300
660,190
412
408,812
9,462
929,076
-
1,492,609
144
1,081,909
-
1,621,780
60,354
921,188
-
397,397
-
24,698
-
357,493
-
77,274
718
277,267
181,220
96,378,240
-
-
(181,220)
-
-
96,378,240
18 months
ended 31
March 2023
Total
Supported
Living
£
68,971,472
676,388
262,976
292,064
479,973
370,099
223,206
210,969
284,123
-
5,043
195,703
1,131
12,805		 Shared Living
£
4,400,748
18,455
15,482
12,895
90,126
350,384
16,072
45,573
29,628
-
10,658
102,494
-
646		 Outreach
services
£
3,221,792
33,884
14,907
15,033
81,990
3,062
17,117
13,197
16,149
-
-
26,804
68,195
2,385		 £
899,508
6,653
3,299
4,903
21,993
77,608
2,875
4,122
2,735
-
8,236
5,266
46
1,476
Supported
employment &
day		 Social
enterprises
£
217,293
1,513
856
879
110
53,873
2,778
9,017
33,660
397,397
-
1,365
225
2,721		 Housing
£
-
-
10,808
41,025
3,970
279,269
287,061
54,163
122,852
-
-
866
5,350
100,798
62,883
-
-		 71,985,952
11,521,750
162,185		 5,093,162
733,335
10,323		 3,514,515
461,173
6,492		 1,038,720
121,474
1,710		 721,686
36,209
510		 906,161
-
-		 12,873,941
(12,873,941)
-
62,883 83,669,887 5,836,820 3,982,180 1,161,904 758,405 906,161 -

Some prior period numbers have been changed for consistency with current classifications.

32

Affinity Trust

Notes to the financial statements

For the year ended 31 March 2024

5 Net income / (expenditure) for the period

This is stated after charging / (crediting):

12 months 18 months
ended 31 ended 31
March 2024 March 2023
£ £
Depreciation 269,489 298,267
Impairment - 254,866
5000. Inventory recognised as an expense 305,149 397,397
8509. Interest payable on loans 11,830 63,416
Operating lease rentals:
Property 360,441 465,624
Other 22,488 11,008
Auditor's remuneration (excluding VAT):
8509. Audit - Affinity Trust 28,000 24,000
Audit - Affinity Trust Support Limited ("ATSL") 10,000 6,000
Other services - corporation tax ATSL 1,500 1,050

Staff costs were as follows:

Staff costs were as follows:
12 months 18 months
ended 31 ended 31
March 2024 March 2023
£ £
Salaries and wages 46,803,452 71,812,296
6018. Redundancy and termination costs 143,810 441,799
6003 Social security costs 4,106,361 6,248,045
Employer’s contribution to defined contribution pension schemes 977,343 1,678,421
6004 Operating costs of defined benefit pension schemes treated as defined contribution pension schemes 235,271 325,579
52,266,237 80,506,140
6005.
6009.		 Agency costs 5,783,829 6,850,618
58,050,066 87,356,758

£245,063 of pension costs were included within creditors (2023: £132,706).

The following number of employees received employee benefits (excluding employer's national insurance and employer pension costs) over £60,000 during the period between:

12 months 18 months
ended 31 ended 31
March 2024 March 2023
No. No.
£60,000 - £69,999 7 55
£70,000 - £79,999 1 18
£80,000 - £89,999 5 7
£90,000 - £99,999 2 9
£100,000-£109,999 1 1
£130,000 - £139,999 1 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 £648,566 (2023: £1,035,630). The following was paid to trustees:

Board of trustees' remuneration
Board of trustees' expenses		 12 months
ended 31
March 2024
18 months
ended 31
March 2023
£
£
49,393
84,486
1,216
2,807
50,609
87,293

33

Affinity Trust

Notes to the financial statements

For the year ended 31 March 2024

6 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel (continued)

Board members (other than the Chair) were paid £5,935 on average for the year (18 month period 2023: £6,758). Board members who are also members of the Finance Committee were paid £5,980 for the year (18 month period 2023: £6,020) each and Board members who are also members of the Quality Committee were paid £5,980 for the year (18 month period 2023: £6,485) on average. The Chair was paid £9,062 for the year (18 month period 2023: £12,960). 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 of £1,216 were incurred by 7 Trustees (2023: £2,807 by 8) 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:-

J Edwards
S Rees
T Barron (Chair)
H Burgess
S Ross (Retired 31st March 2023)
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		 12 months
ended 31
March 2024
18 months
ended 31
March 2023
£
£
9,062
12,960
5,826
8,277
5,995
8,579
5,943
8,277
5,803
8,375
6,287
8,556
5,766
3,946
5,927
3,680
-
9,519
-
5,623
-
6,039
-
3,462
50,609
87,293

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:

Supported living
Outreach services
Supported employment & day opportunities
Social enterprises
Housing
Support
Chidrens Services
Shared living		 12 months
ended 31
March 2024
18 months
ended 31
March 2023
No.
No.
115
130
1,798
1,802
157
155
29
32
18
19
1
2
37
33
98
110
2,253
2,283

Other than Trustee remuneration as detailed in Note 6 there are no related party transactions to disclose for 2024 (2023: none).

There were no donations from related parties and no restricted donations from related parties.

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 £223,164 to Affinity Trust within 9 months of the financial year end which alleviates the corporation tax liability.

8 Related party transactions

9 Taxation

34

Affinity Trust

Notes to the financial statements

For the year ended 31 March 2024

10 Tangible fixed assets

10 Tangible fixed assets
Housing Assets Owned Outright
The group and charity Freehold
Freehold Land property Alterations Total
£ £ £ £
Cost
At the start of the period 1,377,139 2,163,071 247,950 3,788,160
SCF Additions - - 29,326 29,326
SCF Disposals in period - - - -
Reclassification in year - (57,428) 57,428
At the end of the period 1,377,139 2,105,643 334,704 3,817,486
Depreciation
At the start of the period - 368,736 205,866 574,602
Charge for the period - 43,654 13,094 56,748
Impairment - - - -
SCF Eliminated on disposals - - - -
Reclassified in year - (946) 946
At the end of the period - 411,444 219,906 631,350
Net book value
At the end of the period 1,377,139 1,694,199 114,798 3,186,136
~~B/S~~
At the start of the period 1,377,139 1,794,335 42,084 3,213,558
Other Housing Assets
The group and charity Freehold
Freehold Land property Alterations Total
£ £ £ £
Cost
At the start of the period 287,500 287,500 185,498 760,498
Disposals in period - - - -
At the end of the period 287,500 287,500 185,498 760,498
Depreciation
At the start of the period - 115,634 185,498 301,132
Charge for the period - 5,750 - 5,750
Eliminated on disposal - - - -
At the end of the period - 121,384 185,498 306,882
Net book value
At the end of the period 287,500 166,116 - 453,616
~~B/S~~
At the start of the period 287,500 171,866 - 459,366

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.

At the start of the period
Net book value
At the end of the period
The group and charity		 Freehold Land
£
1,664,639		 Freehold
property
£
1,860,315		 Alterations
Total
£
£
114,798
3,639,752
42,084
3,672,924
Total Housing Assets		 Alterations
Total
£
£
114,798
3,639,752
42,084
3,672,924
Total Housing Assets
1,664,639 1,966,201 42,084 3,672,924

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 two properties during the year (2023: all properties) and no properties were valued at less than net book value (2023: only one property was valued at less than net book value. Impairment was booked in the prior period for this one property).

35

Affinity Trust

Notes to the financial statements

For the year ended 31 March 2024

11 Other tangible fixed assets

SCF
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
Cost
At the start of the period
Additions in period
Disposals in period
The group and charity		 Office
equipment
£
1,269,167
169,679
(538,988)		 Total
£
1,269,167
169,679
(538,988)
899,858 899,858
859,168
206,991
(538,988)		 859,168
206,991
(538,988)
527,171 527,171
372,687 372,687
409,999 ~~B/S~~
409,999

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 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
Fees
Investments comprise:		 2024
2023
£
£
4,658,724
6,325,269
(4,823,500)
(1,500,000)
715,771
3,968,403
(688,870)
(3,923,952)
62,639
140,398
(14,330)
(40,744)
89,566
(310,650)
-
4,658,724
-
26,960
-
4,685,684
2024
2023
£
£
-
4,658,724
-
-
-
26,960
-
4,685,684
The group
The group		 2024
2023
£
£
4,658,724
6,325,269
(4,823,500)
(1,500,000)
715,771
3,968,403
(688,870)
(3,923,952)
62,639
140,398
(14,330)
(40,744)
89,566
(310,650)
-
4,658,724
-
26,960
-
4,685,684
2024
2023
£
£
-
4,658,724
-
-
-
26,960
-
4,685,684
The group
The group		 2024
2023
£
£
4,658,724
6,325,269
(4,823,500)
(1,500,000)
715,771
3,968,403
(688,870)
(3,923,952)
62,639
140,398
(14,330)
(40,744)
89,566
(310,650)
-
4,658,724
-
26,960
-
4,685,684
B/S
2024
2023
£
£
-
4,658,724
1
1
-
26,960
1
4,685,685
The charity
The charity
- 4,685,684

36

Affinity Trust

Notes to the financial statements

For the year ended 31 March 2024

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, Hanah Burgess and Keith Cameron, together with the Chief Executive, are also Directors of the subsidiary.

A summary of the results of the subsidiary is shown below:

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
Assets
Liabilities
Share Capital and Reserves
Operating profit/(loss)
Interest receivable
Profit/(loss) on ordinary activities
The aggregate of the assets, liabilities and reserves was:
Interest payable
Turnover
Cost of sales
Retained earnings
Total comprehensive income		 12 months
ended 31
March 2024
£
5,635,695
(5,376,511)		 18 months
ended 31
March 2023
£
369,704
(358,613)
259,184
(40,542)		 11,091
(7,200)
218,642
4,522
-		 3,891
-
-
223,164
-		 3,891
-
223,164 3,891
-
223,164
(223,164)		 -
3,891
(3,891)
- -
1,632,218
(1,632,217)		 425,564
(425,563)
1 1

Amounts owed to the parent undertaking are shown in note 15.

Included within administrative expenses above is a management charge of £5,462,216 (2023: £353,613) from the parent entity.

Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

12 months 18 months
ended 31 ended 31
March 2024 March 2023
£ £
Gross income 71,910,175 94,353,526
Result for the year 2,022,751 (2,703,036)

37

Affinity Trust

Notes to the financial statements

For the year ended 31 March 2024

14 Stocks

14 Stocks
Group Charity
2024 2023 2024 2023
£ £ £ £
1000 Stocks held at Englefield Garden Centre 96,049 100,924 96,049 100,924
96,049
B/S		 100,924 96,049
B/S		 100,924
15 Debtors
Group Charity
2024 2023 2024 2023
£ £ £ £
1110 Trade debtors 3,815,713 2,286,102 2,659,266 2,066,554
Amounts due from group undertakings - - 1,219,801 362,503
Other debtors 62,372 85,006 62,372 85,006
Prepayments and accrued income 2,283,971 2,622,088 2,042,076 2,531,680
6,162,056
B/S		 4,993,196 5,983,515
B/S		 5,045,743

16 Creditors: amounts falling due within one year

16
Creditors: amounts falling due within one year
2210.
2304. Bank loans
2100. Trade creditors
2203
Taxation and social security
2101
Other creditors
Accruals and deferred income		 2024
2023
£
£
-
47,188
1,790,178
1,566,769
1,809,877
1,268,080
370,468
263,281
1,835,993
2,236,550
5,806,516
5,381,868
B/S
Group		 2024
2023
£
£
-
47,188
1,785,318
1,566,769
1,412,030
1,212,221
370,468
263,281
1,826,293
2,229,350
5,394,109
5,318,809
B/S
Charity
5,806,516
B/S		 5,381,868

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		 2024
2023
£
£
194,420
160,155
(194,420)
(160,155)
350,045
194,420
350,045
194,420
Group		 2024
2023
£
£
194,420
160,155
(194,420)
(160,155)
350,045
194,420
350,045
194,420
Group		 2024
2023
£
£
194,420
160,155
(194,420)
(160,155)
350,045
194,420
350,045
194,420
Charity
350,045 194,420

38

Affinity Trust

Notes to the financial statements

For the year ended 31 March 2024

18 Creditors: amounts falling due after one year

Bank loans
Repayable grants:
NHS Grant
Secretary of State for Health		 2024
2023
£
£
150,001
198,241
-
1,064,000
332,157
328,871
482,158
1,591,112
B/S
Group		 2024
2023
£
£
150,001
198,241
-
1,064,000
332,157
328,871
482,158
1,591,112
B/S
Group		 2024
2023
£
£
150,001
198,241
-
1,064,000
332,157
328,871
482,158
1,591,112
B/S
Charity
482,158
B/S		 1,591,112

Bank loans secured by first mortgages held by NatWest plc on Affinity Trust's housing properties owned outright were repaid during the year. Interest was accruing on these 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, but only to the maximum amount of any proceeds received.

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. During the year to 31 March 2024 the Grant was realised in the statement of financial activities and a corresponding amount moved to restricted reserves.

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
Creditors due after more than one year
Net assets at 31 March 2023
Creditors due after more than one year
Net assets at 31 March 2024
Analysis of group net assets between funds (prior year)
Analysis of group net assets between funds (current period)
Tangible fixed assets
Net current assets
Investments
Net current assets		 2024
2023
£
£
-
47,188
-
119,293
-
264,721
482,158
1,207,098
482,158
1,638,300
General
unrestricted
£
£
-
2,648,439
10,826,527
-
(482,158)
-
10,344,369
2,648,439
General
Unrestricted
Designated
£
£
-
3,782,923
4,685,684
-
5,160,455
-
(1,591,112)
-
8,255,027
3,782,923
Designated
Group		 2024
2023
£
£
-
47,188
-
119,293
-
264,721
482,158
1,207,098
482,158
1,638,300
General
unrestricted
£
£
-
2,648,439
10,826,527
-
(482,158)
-
10,344,369
2,648,439
General
Unrestricted
Designated
£
£
-
3,782,923
4,685,684
-
5,160,455
-
(1,591,112)
-
8,255,027
3,782,923
Designated
Group		 2024
2023
£
£
-
47,188
-
119,293
-
264,721
482,158
1,207,098
482,158
1,638,300
Restricted
Total funds
£
£
3324
1,364,000
4,012,439
4,173
10,830,700
-
(482,158)
1,368,173
14,360,981
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		 2024
2023
£
£
-
47,188
-
119,293
-
264,721
482,158
1,207,098
482,158
1,638,300
Restricted
Total funds
£
£
3324
1,364,000
4,012,439
4,173
10,830,700
-
(482,158)
1,368,173
14,360,981
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
482,158 1,638,300 482,158 1,638,300
General
unrestricted
£
-
10,826,527
(482,158)		 £
2,648,439
-
-
Designated		 Restricted
£
3324
1,364,000
4,173
-		 Total funds
£
4,012,439
10,830,700
(482,158)
10,344,369 2,648,439 1,368,173 14,360,981
General
Unrestricted
£
-
4,685,684
5,160,455
(1,591,112)		 Designated
£
3,782,923
-
-
-		 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)

39

Affinity Trust

Notes to the financial statements

For the year ended 31 March 2024

20a Movements in funds (current period)

20a
Movements in funds (current period)
3321
3323
3324
3325
Total restricted funds
Total designated funds
General funds
Total funds at 31 March 2024
Total unrestricted charitable funds
Reading Services
Unrestricted funds:
Designated funds:
Fixed Assets
Restricted funds:
Ayrshire Activity club
Score Fund
Little Glen Road
NHS Grant Copton Ash		 At the start of
the year
£
2,200
1,857
300,000
1,000
-		 Income &
gains
£
-
-
-
-
1,064,000		 Expenditure &
losses
£
-
-
-
(884)
-		 Transfers
£
-
-
-
-
-		 At the end of
the year
£
2,200
1,857
300,000
116
1,064,000
305,057 1,064,000
~~SOFA~~		 (884)
~~SOFA~~		 - 1,368,173
3,782,923 - - (1,134,484) B/S
2,648,439
3,782,923 - - (1,134,484) 2,648,439
8,255,027 65,250,361 (64,295,503) 1,134,484 10,344,369
12,037,950 65,250,361 (64,295,503) - 12,992,808
12,343,007 66,314,361 (64,296,387) - 14,360,981

Affinity Trust obtained a Grant of £1,064,000 from the NHS to support the construction of 4 bungalows plus staff accommodation 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. During the year to 31 March 2024 the Grant was realised in the statement of financial activities and a corresponding amount moved to restricted reserves.

20b Movements in funds (prior year)

Movements in funds (prior year)
Total restricted funds
Total designated funds
General funds
Total unrestricted funds
Total funds at 31 March 2023
Designated funds:
Fixed Assets
Score Fund
Little Glen Road
Reading Services
Unrestricted funds:
Ayrshire Activity club
Restricted 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 - (2,032) - 305,057
4,563,865 - (780,942) 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 in 2023 arose on the sale of a property (Pymhurst).

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.

40

Affinity Trust

Notes to the financial statements

For the year ended 31 March 2024

20b Movements in funds (prior year) (continued)

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.

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
2024
£
217,154
105,966
87,594
Land and		 31 March
2023
£
310,416
394,898
-
Buildings		 31 March
2024
31 March
2023
£
£
37,708
7,484
31,107
7,217
36,493
1,429
105,308
16,130
Other items
410,714 705,314

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 (31 March 2023: five 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
2024
31 March
2023
£
£
2,662,070
2,394,568
Group and charity

41

Affinity Trust

For the year ended 31 March 2024

Notes to the financial statements

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 year in respect of this scheme was £230,187 (18 month period 2023: £311,803). The amount outstanding at 31 March 2024 was £15,524 (2023 £14,175). 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 the 1995/2008 and 2015 schemes are accounted for, and the scheme liability valued, as a single combined scheme. 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 2024, is based on valuation data as 31 March 2023, updated to 31 March 2024 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 2020. The results of this valuation set the employer contribution rate payable from April 2024 to 23.7% of pensionable pay.

42

Affinity Trust

For the year ended 31 March 2024

Notes to the financial statements

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 Regulations 2013 there are currently only 3 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 year ended March 2024 were £0 (2023:£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 Regulations 2013. 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 was closed in June 2023.

Oxfordshire Pension Fund

After the transfer of a number of services in Oxfordshire in February 2024, two employees retained their membership of the Oxfordshire Pension Fund 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 26.1% of salary and employee paid 5.8% and we continue to use this rate until we hear otherwise from the pension provider.

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
Charity Group and
charity
£ £
Financial assets
Assets measured at Fair Value 1 4,685,684

27 Capital Commitments

There are no capital commitments as at 31st March 2024. At 31st March 2023 there was a capital commitment of £70k for a new website and branding as at 31 March 2023. The total cost at 31st March 2023 was £84k of which £70k had not yet been paid .

43