2022-03-31-accounts

Registered number: 07931728 Charity number: 1146481

The Kenward Trust

(A company limited by guarantee)

Trustees' report and consolidated financial statements

for the year ended 31 March 2022

The Kenward Trust

(A company limited by guarantee)

Contents

	Page
Reference and administrative details of the Charity, its Trustees and advisers	1 - 2
Trustees' report	3 - 10
Independent auditor's report on the financial statements	11 - 15
Consolidated statement of financial activities	16
Consolidated balance sheet	17 - 18
Charity balance sheet	19 - 20
Consolidated statement of cash flows	21
Notes to the financial statements	22 - 47

The Kenward Trust

(A company limited by guarantee)

Reference and administrative details of the Charity, its Trustees and advisers for the year ended 31 March 2022

Trustees

P Andrews, Chair of Kenward Enterprises P Brook (resigned 16 March 2022) S Belton J Elks, Chair of Spirituality Committee Dr. A Jones H Kendall B Langstaff (resigned 23 June 2021) G Monk A Parvin (resigned 16 March 2022) S Thomson, Chair of Quality Assurance Committee S Webster, Chair of the Finance Committee C Munday, Chair of Board of Trustees (appointed 23 June 2021) A Price Dr S Plummer (appointed 14 September 2022)

Company registered number

07931728

Charity registered number

1146481

Registered office

Kenward House Kenward Road Yalding Maidstone Kent ME18 6AH

Company secretary

Paul Brown

Chief executive officer

Penny Williams

Page 1

The Kenward Trust

(A company limited by guarantee)

Reference and administrative details of the Charity, its Trustees and advisers (continued) for the year ended 31 March 2022

Independent auditor

Kreston Reeves LLP Chartered Accountants Statutory Auditor Montague Place Quayside Chatham Maritime Chatham Kent ME4 4QU

Solicitors

Whitehead Monckton Limited 72 King Street Maidstone Kent ME14 1BL

Page 2

The Kenward Trust

(A company limited by guarantee)

Trustees' report for the year ended 31 March 2022

The Trustees present their annual report together with the audited financial statements of the Kenward Trust for the year 1 April 2021 to 31 March 2022. The Annual report serves the purposes of both a Trustees' report and a Directors' report under company law. The Trustees confirm that the Annual report and financial statements of the Charity comply with the current statutory requirements, the requirements of the Charity's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

About Us

Kenward Trust provides support to those affected by addiction, homelessness and crime.

The Trust was founded in 1968 by Ray and Violet Sinden, a couple with a strong Christian faith. The couple’s eldest daughter, Olive, was friendly with a Church Army Captain who worked amongst the homeless individuals on the streets of London. Many of them had been sober for some weeks and wished to remain in recovery, but there was no place that would give them shelter. Ray decided to take some of these men home for rehabilitation, but one quickly turned into three and their farm in Sevenoaks became overcrowded. The family sold up and purchased our estate in Yalding, which is where Kenward began.

From those modest beginnings, the Trust today takes in around 100 residents each year across five buildings, as well as reaching hundreds of young people through prevention initiatives and helping others with advice and support.

Why our work is important

At Kenward Trust we provide a breadth of services, all with the same aim of helping support those with addiction issues to transform their lives and create new futures for themselves away from their addictions. Our work centres upon giving people the opportunity to change their lives and reach their full potential, and with a success ratio of 73% out work is successful for the vast majority who access it.

Our Vision, Mission, Values & Christian Ethos

Our Vision:

Every individual suffering with addiction issues receives the support they need to transform their lives.

Our Mission:

To support and empower all individuals affected by addiction and homelessness so they can transform their lives and create new futures.

Our Values:

Kenward Trust has a strong sense of its Christian roots and ethos, from which we draw the underlying value underpinning every aspect of our work and the way we deliver services. At our core is our belief in empowering and involving service users and significant others in all we do.

Open-minded:

We are open to new ways of collaborative working and being flexible to meet the needs of the individuals who require our support.

Care:

Care is central to everything that we do. We are compassionate and supportive within our staff team as well as to our residents.

Page 3

The Kenward Trust

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2022

Empathy:

We listen. Every voice is heard and appreciated and all of our services are judgement-free.

Empowerment:

We empower all that access or run our services in order for them to reach their full potential.

Education:

Being informed and reducing stigma around addiction, homelessness and crime guides all aspects of our work.

Our Christian Ethos:

Our Christian Ethos underpins the way we help people in crisis. We aim to reach out to those who are on the margins of society and we believe that everyone deserves a second chance.

Chairman - C Munday:

This has been another challenging and exceptional year for Kenward but with real signs of growth across the Charity. We are still wrestling with the fall out from Covid but now only occasionally. Our cafe, alpaca walking and conferences all reopened and our schools and therapy groups have one from strength to strength. We have been able to welcome many more people needing help into our accommodation and programmes which is what we are all about. Finances have also improved steadily. On behalf of the Board I would like to thank all the Kenward team, under the leadership of Penny Williams, who have worked so hard and so effectively to support so many people in the grip of addiction. Kenward can face the future with confidence.

CEO - P Williams:

The world has changed! We have had significant staff changes over the last 18 months and had to adopt new safety protocols and flexible working practices Our previous business plan was focused on self-funders for stage one, filling our Move On Properties and building upon the increased revenue from Kenward Enterprises. The pandemic changed what we could do but we have been flexible and developed around these challenges.

During the pandemic we were engaging with more D&A units in councils and running an efficient quarantine meant we actually saw numbers increase in Stage One. As we see the outcome of the Dame Carole Report ringfenced investment in the sector filter through, we are seeing record occupancy levels.

Alongside this, we recognise the increased demand for Move On accommodation and having developed Uckfield to now be home for 15 residents we have taken on another three-bedroom property in Canterbury, Hawkinge and Bridge and planning an 11 bed in Wateringbury. Strategically this is an important step for us, enabling us to engage with more partners for referrals and allowing more choice for Stage One residents.

Our focus is on increased capacity by property acquisition. Short term this may be constrained by cashflow, however we will continue explore consortiums with trustees and other partners, and discounted rentals.

Staffing is the biggest cost for the trust and this has been reviewed from a cost, and contribution to the business perspective, vigorously during the pandemic. We have a strong senior team in place and support staff, to sustain the progress we have now made - see organogram (appendix). We will invest in our staff and focus on their welfare to aspire to be an employer with a strong reputation for caring.

Additionally with the power crisis we will continue to work towards sustainability at the Yalding site with the first step of utilising solar panels.

Page 4

The Kenward Trust

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2022

This is what an ex resident says about our service:

I found the time in The Barn at Kenward Trust to be exactly what I needed, when I didn’t know what I needed!

The vision for the Project alone is empowering. The building itself and the grounds make it feel like a safe, warm, nurturing place where a broken soul can be secure to be vulnerable and start to repair. The whole essence of the Kenward Community feels like this, there is an air of humour, empathy and courage on site and these all were things I needed.

The content of my 16 weeks here was great. The 12 Step work was essential. I’d been trying and trying to do this on my own but I needed to get away from the noise and control of day to day life to let this become part of my routine, to change my thinking and to build trust in a Higher Power. Being able to attend so many meetings in the community was vital, as were the speakers invited into the Barn from the fellowship.

The work we did around other psychotherapy models was also essential as it gave me context to my story, my history, and understanding of how to re-write trauma, and courage to face my consequences. The therapeutic elements gave a great balance, I’m using many of the tools I learnt - breathing, exercise and outdoors especially.

Finally, for me, I couldn’t have been lucky enough to have such a great counsellor in Denise, but above all else Tricia and Lucy. These two strong, real, women are a formidable force of recovery - the straight talking, gentle questioning and professionalism with real honest personalities encouraged me to get honest, to hurt and cry, to forgive and to see hope. They are a credit to Kenward and I benefited hugely from their knowledge.

Thank you for managing such a great rehab and for all the staff you have in place. Every single one made an impact on me. I hope to see you again when I have grown more on my own two feet, I have the tools, the faith and the hope again. I have the 12 steps.

Page 5

The Kenward Trust

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2022

Our Strategic Aims for 2022/23

Growth

The Resettlement project is essential for some of our residents, giving them the chance to acclimatise to their new lives remaining in recovery. We are very keen to expand on our property portfolio and also geographically, into the East of Kent, enabling this project to be able to provide support to more individuals in need. The aim is to expand our accommodation and engage with more agencies for referrals.

Additionally we will look at how to expand our Stage One project to cater for the increased waiting list.

Sustainability

There has been significant progress in improving financial sustainability this year. The objective now is to build upon this progress next year, to ensure the longer term viability of all of the services that the Trust provides. Development of the income from Kenward Place, Youth services and fundraising will be part of the increase in income along with increased accommodation. On the cost side during a period of rising cost pressures, we continue to look at the cost base of the Trust and strive to make savings wherever possible.

Additionally with the current power crisis we will continue to develop our plans for sustainability by expanding our solar power.

Progression

We have moved the case management system from paper to online and will be exploring other means of improving quality and service through technology.

Additionally, our focus will be on improving our services and value to our clients and documenting our progress.

Our Board Assurance Consultant is working with Senior Managers to focus on quality improvement initiatives and the impact they have on improving quality of treatment at Kenward Trust Identifying gaps in quality we are implementing new strategies to promote progression and achieve excellence.

Development

Increase our offering to our residents through the development of other activities eg Yoga and programmes will be very important to ensuring that our residents get the best opportunities and ensure they have the best possible start in their recovery journey.

On a mission to engage, elevate and empower our residents and achieve meaningful learning outcomes.

To engage through relevant and motivating courses to achieve meaningful outcomes which elevate them to go on to further education, training and work and empower them to take control of their lives. Should have the opportunity to discover develop and make use of their abilities to affirm their identities contribute to society

Outcome measures will be tracked in order to improve the service eg unplanned exits, engagement whilst in treatment

Investment in our people will be key to our long-term success. A focus on employee engagement ensuring their ability to contribute to the success of the organisation. We will adopt the 3 C Components of employee engagement 1. Career 2. Competence 3. Care

Financial review

The pre-pandemic challenges the Trust faced during the 2021 financial year continued into this year. Once again, the requirements for quarantine and isolation to prevent COVID from getting on-site impacted our revenues. Restrictions notwithstanding, we managed to increase revenues over the prior year - and to further reduce costs, albeit marginally.

Page 6

The Kenward Trust

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2022

Despite these improvements the Trust had an operating loss, but 40% less than the prior year.

A revaluation of our largest Move-On house and our main site at Kenward turned the operating loss into a substantial profit of £1,454,071. This completes the revaluation exercise for the Trust’s property portfolio and further gains are not expected in the short term.

There has been an increase in accommodation capacity which contributed to revenue increases in 2022. The Trust will continue to evaluate and implement any cost-effective opportunity which enables us to offer more capacity to funders wanting to place recovering addicts with us.

The Trust has a long-term Business Loan from Unity Trust Bank who continue to show their support and believe in our recovery business plan. They are aware of our strategy of careful cost control and boosting capacity for income. We are confident this strategy will move the Trust into a surplus position in the 2023 financial year from capacity related revenue increases.

Total income for the year was £1,585,593 (2021: £1,464,188). This is an increase of £121,405 compared to 2021. Whilst we have continued our focus on cost control, our reduction in overheads is somewhat smaller than last year as we have had volume related cost uplifts from extra residents.

Expenditure for the year has reduced by a small amount to £1,774,951 (2021: £1,781,048), and the Charity has net outgoing resources before revaluations for the year of £189,358 compared to net outgoing resources of £316,860 in 2021.

Following these revenue and cost improvements and adding the property revaluations, our total funds have increased to £5,167,098 (2021: £3,713,027) at the year-end, comprising £5,128,890 (2021: £3,707,445) unrestricted and £38,208 (2021: £5,582) restricted.

The Balance Sheet shows negative net current assets of £(108,337) (2021: positive £111,686) which represents a decrease on the prior year of £220,023.

Kenward belongs to a scheme with The Pensions Trust. Entry to the defined benefit scheme was closed several years ago and now a defined contribution auto-enrolment scheme is in operation. The old scheme is underfunded which means that an actuarial deficit must be included in the accounts; the provision for this has decreased in the year to £18,367 (2021: £89,827). The overall withdrawal liability remains much higher. This will only be triggered if The Kenward Trust were to withdraw from the scheme completely, which it does not plan to do.

Reserves Policy

The Board of Trustees has reviewed the Reserves Policy of the Kenward Trust with regard to the Charity's current operations and its future plans. Particular attention and reference has been given to guidance provided within FRS 102, Charity Commission publications RS3 and CC19 (Charity Reserves and Charities and Reserves, respectively) and Charity Commission Guidance OG43 (Charity Income Reserves). The Board of Trustees has agreed a reserves policy equivalent to two months of employment costs. For the financial year 1st April 2021 to 31st March 2022, this was projected as £170,500. While our liquid cash reserves have been below this level for the financial year, the Board of Trustees will continue to be prepared to sell one or more of the Charity's freehold properties in order to generate the appropriate level of liquid funds. The Trustees remain confident that the Trusts growth strategy mean this reserves target is achievable in the short to medium term.

Page 7

The Kenward Trust

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2022

Structure, Governance & Management Governing Document

The Kenward Trust is a charitable company limited by guarantee, incorporated on 1st February 2012 and registered with the Charity Commission on 21st March 2012. The Company took over delivery of services and ownership of property from The Kenward Trust Fund (charity number 265394) on 1st April 2012.

The Kenward Trust Fund was registered as a charity on 27th March 1973 and has been governed by its Trust Deed, dated 24th May 1972. On incorporation, the fundamental elements of the Trust Deed were removed from the Charity Register on 9th January 2015. Therefore, the Charity remains governed by the vision, purpose and intentions of the founding trustees; as now set out in the Articles.

Membership is open to individuals or organisations that apply to the Charity and are approved by the Trustees.

There are currently eleven members (the Directors/Trustees of the Charity), each of whom agreed to contribute £10 in the event of the Charity winding up.

Appointment of Trustees

The Articles of Association (Articles) provide that the Board of Trustees may be constituted of a minimum of three Trustees, but no more than twelve. For the purposes of the Companies Act 2006, Trustees of the Charity are also directors of the Company. In accordance with the Articles, on appointment, Trustees become members of the Company.

Under the requirements of the Articles, any person appointed as a Trustee by the Board of Trustees must retire at the next annual general meeting, at which time the appointment must be either ratified or terminated. At each Annual General Meeting, Trustees who have been in office for 3 years must retire from office, but may stand for reelection.

Trustee Induction and Training

As a Care Quality Commission (CQC) registered organisation the Trustees take recruitment, induction and training of our Trustees very seriously. The Kenward Trust complies with Regulation 5 to ensure that all prospective and existing Trustees are assessed and continue to be deemed a fit and proper person to act as a Trustee of the Charity.

New Trustees undergo an orientation day to brief them on: their legal obligation under charity and company law, the Charity Commission guidance on public benefit, and inform them of the content of the business plan and recent financial performance of the Charity. During the induction day, they meet key employees and other Trustees.

Trustees are encouraged to attend on-going, appropriate, external training events where these will facilitate the undertaking of their role.

Organisation

The Board of Trustees, which can have between three and twelve members, administers the Charity. The Board normally meets quarterly and there are sub-committees covering Finance, Business Development, Spirituality, Quality Management and People & Policies, which also meet on a quarterly basis.

A Chief Executive is appointed by the trustees to manage the day-to-day operations of the Charity.

To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the Trustees, for operational matters including finance, employment and programme delivery.

Page 8

The Kenward Trust

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2022

Related Parties and Cooperation with Other Organisations

None of our Trustees receive remuneration or other benefits from their work with the Charity. Any connection between a Trustee or senior manager of the Charity with a resident, must be disclosed to the full Board of Trustees in the same way as any other contractual relationship with a related party. In the current year, no such party transactions were reported.

The Charity's wholly owned subsidiary, Kenward Enterprises Ltd, was established to operate the social enterprise activities. Kenward Enterprises Limited was incorporated on 20th February 2016.

Pay Policy for Senior Staff

The directors consider that the Board of Trustees and the Senior Management Team comprise the key management personnel of the Charity in charge of directing and controlling, running and operating of the Charity on a day to day basis. All Trustees give their time freely and no Trustee received remuneration in the year.

The pay of senior staff is reviewed from time to time. In the view of the nature of the Charity, the Trustees benchmark against pay levels in other charities of a similar size. Some senior talent is retained on a consultancy basis in order to attract the best people.

Fund Raising Policy

The charity undertakes fundraising activities, which include fundraising in the community, applying to and partnering with companies and grant-giving trusts, appeals and organising of events. Our fundraising activities are carried out in line with the Fundraising Code of Practice as set out by the Fundraising Regulator. No third party agencies are used to fundraise on behalf of the charity.

Risk Management

The charity continues to enhance and improve risk management systems. The Business Assurance Framework (BAF) was approved by the Board of Trustees on 3rd November 2015 and has been used as a governance tool ever since.

The BAF identifies principal risks to delivery of strategic objectives (as directed and agreed by the Board of Trustees for each financial year). The document sets out the strategic objectives alongside a progress summary (monitoring and performance) and the BAF (monitoring principal risks and supporting actions) for each objective.

The BAF is an important part of our governance process and provides a vehicle through which the Trustees, Chief Executive, Senior Management Team and Project Managers, as appropriate can:

1. Agree and analyse the Charity's strategic objectives; 2. Identify the principal risks to achieving them;

2. Agree necessary actions or establishment of systems and procedures to mitigate those risks identified; and 4. Implement procedures to minimise any potential impact on the Charity, in the event that the risks materialise.

The BAF is reviewed on a regular basis by the Senior Management Team and then reported to each of the Board sub-committees (each strategic objective being allocated to a sub-committee) on a quarterly basis, before being formally reported to the full Board of Trustees.

External risks to funding and high committed costs relating to assets have led to the development of a strategic plan which allows for, and will continue to allow for, the diversification of funding and activities.

Internal risks are minimised by the implementation of procedures for the authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of The Kenward Trust.

Those procedures are periodically reviewed in order to ensure that they continue to meet the needs of the Charity.

Page 9

The Kenward Trust

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2022

Trustees' responsibilities statement

The Trustees (who are also directors of Kenward Trust for the purposes of company law) are responsible for the preparing of the Group strategic report and the financial statements in accordance with applicable law and United Kingdom (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

• Select suitable accounting policies and apply them consistently;

• Observe the methods and principles of the Charities SORP;

• Make judgements and accounting estimates that are reasonable and prudent;

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the group and charity's transactions and disclose with reasonable accuracy at any time the financial position of the group and charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group 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 Charity's website. Legislation in the United Kingdom governing the preparation and the dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as disclosure to our auditors

In so far as the Trustees are aware at the time of approving our trustees' annual report:

• There is no relevant information, being information needed by the auditor in connection with preparing their report, of which the Charity's auditor is unaware; and

• The Trustees, having made enquiries of fellow directors and the Charity's auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Auditor

The auditor, Kreston Reeves LLP, has indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.

This report has been prepared in accordance with the FRS 102 and relevant positions of the Companies Act 2006. This report incorporating the Group strategic report was approved by Trustees, in their capacity as company directors and signed on their behalf by:

Mr C Munday Chair

Date: 26/01/2023

Page 10

The Kenward Trust

(A company limited by guarantee)

Independent auditor's report to the Members of The Kenward Trust

Opinion

We have audited the financial statements of The Kenward Trust (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 March 2022 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

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 United Kingdom, including the Financial Reporting Council'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.

Material uncertainty related to going concern

We draw attention to note 1.5 in the financial statements, which indicates that there are a number of financial restraints and issues that the Charity faces. As stated in note 1.5, these events or conditions, along with the other matters as set forth in note 1.5, indicate that a material uncertainty exists that may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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. Our evaluation of the Trustees' assessment of the Group's ability to continue to adopt the going concern basis of accounting included:

• Understanding the Group’s processes and related controls over the assumptions in the going concern assessment;

• Considering the reasonableness of the projections and the appropriateness of the sensitivities performed by management;

• Evaluating the accuracy and completeness of the projections;

• Assessing the disclosures relating to going concern.

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

Page 11

The Kenward Trust

(A company limited by guarantee)

Independent auditor's report to the Members of The Kenward Trust (continued)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Trustees' report including the Strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the Trustees' report and the Strategic report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report including the Strategic report.

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

• the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and 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.

Page 12

The Kenward Trust

(A company limited by guarantee)

Independent auditor's report to the Members of The Kenward Trust (continued)

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 is detailed below:

Capability of the audit in detecting irregularities, including fraud

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.

Based on our understanding of the charity and sector, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of non compliance with laws and regulations related to health and safety, anti bribery and employment law. We considered the extent to which non compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:

• Discussions with management and assessment of known or suspected instances of non compliance with laws and regulations and fraud; and

• Challenging assumptions and judgements made by management in its significant accounting estimates; and

• Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and

• Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and

• Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and

• Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.

Page 13

The Kenward Trust

(A company limited by guarantee)

Independent auditor's report to the Members of The Kenward Trust (continued)

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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.

• Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in my Auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of my Auditor's report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Page 14

The Kenward Trust

(A company limited by guarantee)

Independent auditor's report to the Members of The Kenward Trust (continued)

Use of our report

This report is made solely to the Charity's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity's trustees 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 Charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Susan Robinson BA FCA FCIE DChA (Senior statutory auditor)

for and on behalf of Kreston Reeves LLP Chartered Accountants Statutory Auditor Chatham Maritime

Date: 27/01/2023

Page 15

The Kenward Trust

(A company limited by guarantee)

Consolidated Statement of financial activities (incorporating income and expenditure account) for the year ended 31 March 2022

Note Income from: Donations and legacies 3 Charitable activities 4 Other trading activities 5 Investments 6 Total income Expenditure on: Raising funds 7 Charitable activities 8 Total expenditure Net (expenditure)/income Transfers between funds 19 Net movement in funds before other recognised gains Other recognised gains: Gains on revaluation of fixed assets Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Unrestricted funds 2022 £ 60,452 1,277,278 95,535 32 1,433,297 78,021 1,587,664 1,665,685 (232,388) 10,404 (221,984) 1,643,429 1,421,445 3,707,445 1,421,445 5,128,890	Restricted funds 2022 £ 106,393 - 45,903 - 152,296 - 109,266 109,266 43,030 (10,404) 32,626 - 32,626 5,582 32,626 38,208	Total funds 2022 £ 166,845 1,277,278 141,438 32 1,585,593 78,021 1,696,930 1,774,951 (189,358) - (189,358) 1,643,429 1,454,071 3,713,027 1,454,071 5,167,098	Total funds 2021 £ 146,795 1,203,667 113,584 142 1,464,188 109,882 1,671,166 1,781,048 (316,860) - (316,860) 216,250 (100,610) 3,813,637 (100,610) 3,713,027

The Consolidated statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 22 to 47 form part of these financial statements.

Page 16

The Kenward Trust

(A company limited by guarantee) Registered number: 07931728

Consolidated balance sheet as at 31 March 2022

Note Fixed assets Intangible assets 12 Tangible assets 13 Current assets Stocks 15 Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current liabilities / assets Total assets less current liabilities Creditors: amounts falling due after more than one year 18 Net assets excluding pension liability Defined benefit pension scheme liability 25 Total net assets	4,750 199,702 108,034 312,486 (420,823)	2022 £ 3,523 6,303,809 6,307,332 (108,337) 6,198,995 (1,013,260) 5,185,735 (18,637) 5,167,098	14,125 166,414 293,284 473,823 (362,137)	2021 £ 11,977 4,726,855 4,738,832 111,686 4,850,518 (1,047,664) 3,802,854 (89,827) 3,713,027

Page 17

The Kenward Trust

(A company limited by guarantee) Registered number: 07931728

Consolidated balance sheet (continued) as at 31 March 2022

Note Charity funds Restricted funds 19 Unrestricted funds Designated funds 19 General funds 19 Total unrestricted funds 19 Total funds	5,014,187 114,703	2022 £ 38,208 5,128,890 5,167,098	3,856,442 (148,997)	2021 £ 5,582 3,707,445
				3,713,027

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees on _______26/01/2023 and signed on their behalf by:

Mr C Munday Chair

Page 18

The Kenward Trust

(A company limited by guarantee) Registered number: 07931728

Charity balance sheet as at 31 March 2022

Note Fixed assets Intangible assets 12 Tangible assets 13 Investments 14 Current assets Stocks 15 Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 18 Net assets excluding pension liability Defined benefit pension scheme liability 25 Total net assets	3,284 376,009 79,292 458,585 (371,569)	2022 £ 3,523 6,275,059 5,000 6,283,582 87,016 6,370,598 (1,013,260) 5,357,338 (18,637) 5,338,701	13,399 333,202 254,401 601,002 (303,656)	2021 £ 11,977 4,698,963 5,000 4,715,940 297,346 5,013,286 (1,047,664) 3,965,622 (89,827) 3,875,795

Page 19

The Kenward Trust

(A company limited by guarantee) Registered number: 07931728

Charity balance sheet (continued) as at 31 March 2022

Note Charity funds Restricted funds 19 Unrestricted funds Designated funds 19 General funds 19 Total unrestricted funds 19 Total funds	5,014,187 286,306	2022 £ 38,208 5,300,493 5,338,701	3,856,442 13,771	2021 £ 5,582 3,870,213
				3,875,795

The Charity's net movement in funds for the year was £1,462,906 (2021 - £(73,624)).

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees on _______26/01/2023 and signed on their behalf by:

Mr C Munday Chair

The notes on pages 22 to 47 form part of these financial statements.

Page 20

The Kenward Trust

(A company limited by guarantee)

Consolidated statement of cash flows for the year ended 31 March 2022

Note Cash flows from operating activities Net cash used in operating activities 22 Cash flows from investing activities Dividends, interests and rents from investments Proceeds from the sale of tangible fixed assets Purchase of intangible assets Purchase of tangible fixed assets Net cash (used in)/provided by investing activities Cash flows from financing activities Cash inflows from new borrowing Repayments of borrowing Net cash (used in)/provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 23 The notes on pages 22 to 47 form part of these financial statements	2022 £ (68,887) 32 - - (68,851) (68,819) - (47,544) (47,544) (185,250) 293,284 108,034	2021 £ (148,044) 142 361,888 (16,909) (105,650) 239,471 50,000 (33,785) 16,215 107,642 185,642 293,284

Page 21

The Kenward Trust

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Kenward Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

1.2 Fund accounting

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

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

1.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Page 22

The Kenward Trust

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

1. Accounting policies (continued)

1.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

1.5 Going concern

Despite the Charity continuing to experience funding difficulties, the financial statements have been prepared on a going concern basis, as the Trustees are of the opinion that the Charity can continue operating for a period of at least 12 months from the date these accounts were signed.

The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

1.6 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated statement of financial activities as the related expenditure is incurred.

1.7 Research and development

Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product or project.

Deferred research and development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related research and development is written off to the Consolidated statement of financial activities.

Page 23

The Kenward Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

1. Accounting policies (continued)

1.8 Tangible fixed assets and depreciation

Tangible fixed assets are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Land and buildings	- 1.25%
Plant and machinery	- 10%
Motor vehicles	- 20%
Fixtures and fittings	- 10%
Office equipment	- 20%
Computer equipment	- 20%

1.9 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

1.10 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

1.11 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

1.12 Debtors

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

1.13 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 24

The Kenward Trust

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

1. Accounting policies (continued)

1.14 Liabilities

Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.

1.15 Financial instruments

The Group 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.

1.16 Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

1.17 Intangible assets and amortisation

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.

The estimated useful lives are as follows:

Film

• 2 years

1.18 Pensions

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

Page 25

The Kenward Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

2. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Multi-employer defined benefit pension scheme

The Charity is part of the Pensions Trust Growth Plan, however entry to this scheme was closed a number of years ago. This is a multi employer defined benefit pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. It is not possible to separately identify the assets and liabilities of participating employers on a consistent and reasonable basis.

The fund is in deficit and if the charity was to withdraw from the scheme the cost of withdrawal would have been £386,284 on 30 September 2016. The charity does not plan to withdraw from the scheme.

A revised recovery plan took effect in April 2016 with new contributions. The results of this yearly update do not affect the deficit contributions due.

Deficit contributions are due from April 2016 to 31 March 2025, with the amount increasing in April each year by 3%.

The deficit contributions due from April 2020 will be £6,790 per year.

The group operates a Defined benefit pension scheme. However, the scheme is a multiple employer scheme and the group is unable to identify its share of the underlying assets and liabilities.

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme, as shown above.

Tangible fixed assets

The Charity has recognised tangible fixed assets with a carrying value of £6,303,809 at the reporting date (see note 13). These assets are stated at their cost less provision for depreciation and impairment. The Charity's accounting policy sets out the approach to calculating depreciation for immaterial assets acquired. For material assets such as land and buildings the Charity determines at acquisition reliable estimates for the useful life of the asset, its residual value and decommissioning costs. These estimates are based upon such factors as the expected use of the acquired asset and market conditions. At subsequent reporting dates the Trustees consider whether there are any factors such as technological advancements or changes in market conditions that indicate a need to reconsider the estimates used.

Page 26

The Kenward Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

2. Critical accounting estimates and areas of judgement (continued)

Where there are indicators that the carrying value of tangible assets may be impaired the Charity undertakes tests to determine the recoverable amount of assets. These tests require estimates of the fair value of assets less cost to sell and of their value in use. Wherever possible the estimate of the fair value of assets is based upon observable market prices less incremental cost for disposing of the asset. The value in use calculation is based upon a discounted cash flow model, based upon the Charity's forecasts for the foreseeable future which do not include any restructuring activities that the Charity is not yet committed to or significant future investments that will enhance the asset’s performance. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well expected future cash flows and the growth rate used for extrapolation purposes.

Critical areas of judgement:

Lease commitments

The Charity has entered into a range of lease commitments in respect of plant and equipment. The classification of these leases as either financial or operating leases requires the Trustees to consider whether the terms and conditions of each lease are such that the Charity has acquired the risks and rewards associated with the ownership of the underlying assets.

Multi-employer defined benefit pension scheme

Certain employees participate in a multi-employer defined benefit pension scheme. In the judgement of the Trustees, the Charity does not have sufficient information on the plan assets and liabilities to be able to reliably account for its share of the defined obligation and plan assets. Therefore the scheme is accounted for as a defined contribution scheme, see note 25 for further details.

Page 27

The Kenward Trust

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

3. Income from donations and legacies

Unrestricted funds 2022 £ Donations and grants Grants and trusts 22,054 Community fundraising 17,842 Other 2,962 Donations received 17,594 Government grants - 60,452 Total 2021 68,044 4. Income from charitable activities	Restricted funds 2022 £ 105,528 - 865 - - 106,393 78,751	Total funds 2022 £ 127,582 17,842 3,827 17,594 - 166,845 146,795	Total funds 2021 £ 78,692 14,806 5,412 12,664 35,221
			146,795

Unrestricted funds 2022 £ Residential rehabilitation fees 678,888 Housing benefit 513,413 Client cash contributions 41,685 RHI income 43,292 1,277,278 Total 2021 1,203,667	Total funds 2022 £ 678,888 513,413 41,685 43,292 1,277,278 1,203,667	Total funds 2021 £ 654,268 477,789 35,361 36,249
		1,203,667

Page 28

The Kenward Trust

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

5. Income from other trading activities

Unrestricted funds 2022 £ Telephone receipts 76 Rental income 29,071 Training income 4,671 Enterprise income 25,824 Other income 35,893 95,535 Total 2021 83,834	Restricted funds 2022 £ - - 34,270 - 11,633 45,903 29,750	Total funds 2022 £ 76 29,071 38,941 25,824 47,526 141,438 113,584	Total funds 2021 £ 222 35,037 30,518 28,340 19,467
			113,584

6. Investment income

Unrestricted funds 2022 £ Bank interest 32 Total 2021 142	Total funds 2022 £ 32 142	Total funds 2021 £ 142

Page 29

The Kenward Trust

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

7. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted funds 2022 £ Sundries 7,659 PR and marketing 4,836 Wages and salaries 28,132 National insurance and social security costs 2,255 Pension costs 480 43,362 Total 2021 54,556 Social enterprise Unrestricted funds 2022 £ Purchases (inc opening and closing stock) 2,964 PR, Marketing and Advertising 3,755 Social Enterprise direct costs 15,592 Wages and salaries 5,860 Depreciation 5,517 Legal and professional fees 13 33,701 Total 2021 55,326	Total funds 2022 £ 7,659 4,836 28,132 2,255 480 43,362 54,556 Total funds 2022 £ 2,964 3,755 15,592 5,860 5,517 13 33,701 55,326	Total funds 2021 £ 13,100 13,498 25,000 2,238 720 54,556 Total funds 2021 £ 133 (202) 15,586 30,711 9,059 39 55,326

Page 30

The Kenward Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

7. Expenditure on raising funds (continued)

Other trading expenses

	Unrestricted	Total	Total
	funds	funds	funds
	2022	2022	2021
	£	£	£
Interest payable	958	958	-

8. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted funds 2022 £ Charitable activities 1,587,664 Total 2021 1,529,996	Restricted funds 2022 £ 109,266 141,170	Total 2022 £ 1,696,930 1,671,166	Total 2021 £ 1,671,166

9. Analysis of expenditure by activities

Charitable activities Total 2021	Direct costs 2022 £ 1,361,817 1,343,037	Support costs 2022 £ 335,113 328,129	Total funds 2022 £ 1,696,930 1,671,166	Total funds 2021 £ 1,671,166

Page 31

The Kenward Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

9. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs Council tax Light and heat Telephone Resident expenses Residents catering Therapy costs Household costs Motor expenses Consultancy Staff expenses Volunteer expenses Staff training and development Agency staff Rent and rates Therapists and supervision TV Licenses Waste and sanitation Testing costs Small equipment Animal expenses	Charitable activities 2022 £ 899,121 17,599 139,111 10,842 7,620 55,474 4,478 12,060 15,755 136,519 13,719 510 7,687 4,801 15,152 728 766 11,502 2,152 2,074 4,147 1,361,817	Total funds 2022 £ 899,121 17,599 139,111 10,842 7,620 55,474 4,478 12,060 15,755 136,519 13,719 510 7,687 4,801 15,152 728 766 11,502 2,152 2,074 4,147 1,361,817	Total funds 2021 £ 958,630 16,293 74,641 11,496 4,591 44,311 2,918 9,648 17,450 120,504 9,029 824 3,006 26,141 11,831 588 1,143 20,295 703 2,387 6,608
			1,343,037

Page 32

The Kenward Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

9. Analysis of expenditure by activities (continued)

Analysis of support costs

Depreciation Printing, postage and stationery Repairs and maintenance Bank charges Audit fees IT and website costs Recruitment costs Health and safety Insurance Loan interest and arrangement fees Legal and professional fees Leasing of equipment (Profit)/loss on disposal Governance costs	Charitable activities 2022 £ 138,264 8,926 44,613 1,784 7,666 17,282 6,799 7,081 24,506 32,421 10,412 11,341 343 23,675 335,113	Total funds 2022 £ 138,264 8,926 44,613 1,784 7,666 17,282 6,799 7,081 24,506 32,421 10,412 11,341 343 23,675 335,113	Total funds 2021 £ 92,804 8,911 60,595 1,314 9,999 22,371 5,933 8,531 31,866 33,209 4,465 9,831 28,112 10,188
			328,129

10. Staff costs

Wages and salaries Social security costs Pension costs	Group 2022 £ 903,990 61,283 (35,285) 929,988	Group 2021 £ 891,450 71,213 23,925 986,588	Charity 2022 £ 903,990 61,283 (35,285) 929,988	Charity 2021 £ 891,450 71,213 23,925
				986,588

The average number of persons employed by the Charity during the year was as follows:

	Group	Group	Charity	Charity
	2022	2021	2022	2021
	No.	No.	No.	No.
Average number expressed as headcount	52	54	52	54

Page 33

The Kenward Trust

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

10. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

		Group	Group
		2022	2021
		No.	No.
In the band £60,001	- £70,000	1	-

The total employment benefits including employer's pension contributions and employer's national insurance contributions of the key management personnel were £174,645 (2021 - £223,845)

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).

During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL).

12. Intangible assets

Group and Charity

Cost At 1 April 2021 At 31 March 2022 Amortisation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021	Intangible assets £ 16,909
	16,909
	4,932 8,454
	13,386
	3,523
	11,977

Page 34

The Kenward Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

13. Tangible fixed assets

Group

Land buildings Long- term leasehold property Plant and machinery Motor vehicles £ £ £ £ Cost or valuation At 1 April 2021 4,589,133 10,360 344,322 21,625 Additions 7,553 - 37,664 - Revaluations 1,503,314 - - - At 31 March 2022 6,100,000 10,360 381,986 21,625 Depreciation At 1 April 2021 108,182 343 220,777 21,625 Charge for the year 69,357 412 39,236 - On revalued assets (140,115) - - - At 31 March 2022 37,424 755 260,013 21,625 Net book value At 31 March 2022 6,062,576 9,605 121,973 - At 31 March 2021 4,480,951 10,017 123,545 -	Fixtures and fittings £ 193,169 15,716 - 208,885 81,954 25,400 - 107,354 101,531 111,215	Computer equipment £ 15,120 7,918 - 23,038 13,993 921 - 14,914 8,124 1,127	Total £ 5,173,729 68,851 1,503,314 6,745,894 446,874 135,326 (140,115) 442,085 6,303,809 4,726,855

Page 35

The Kenward Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

13. Tangible fixed assets (continued)

Charity

Cost or valuation At 1 April 2021 Additions Revaluations At 31 March 2022 Depreciation At 1 April 2021 Charge for the year On revalued assets At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021	Land and buildings £ 4,589,133 7,553 1,503,314 6,100,000 108,182 69,357 (140,115) 37,424 6,062,576 4,480,951	Plant and machinery £ 344,322 37,664 - 381,986 220,777 39,236 - 260,013 121,973 123,545	Motor vehicles £ 21,625 - - 21,625 21,625 - - 21,625 - -	Fixtures and fittings £ 133,913 9,341 - 143,254 40,573 20,295 - 60,868 82,386 93,340	Computer equipment £ 15,120 7,918 - 23,038 13,993 921 - 14,914 8,124 1,127	Total £ 5,104,113 62,476 1,503,314 6,669,903 405,150 129,809 (140,115) 394,844 6,275,059 4,698,963

Included in land and buildings is land of £1,021,320 (2021: £1,134,917) which is not depreciated.

The net book value of assets held under finance leases or hire purchase contracts included above are £55,429 (2021: £82,719).

Page 36

The Kenward Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

14. Fixed asset investments

Charity Cost or valuation At 1 April 2021 At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021	Investments in subsidiary companies £ 5,000
	5,000
	5,000
	5,000

15. Stocks

Finished goods and goods for resale 16. Debtors Due within one year Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income	Group 2022 £ 4,750 Group 2022 £ 85,206 - 13,128 101,368 199,702	Group 2021 £ 14,125 Group 2021 £ 57,215 - 13,137 96,062 166,414	Charity 2022 £ 3,284 Charity 2022 £ 81,811 180,615 13,128 100,455 376,009	Charity 2021 £ 13,399
				Charity 2021 £ 52,147 172,511 13,128 95,416
				333,202

Page 37

The Kenward Trust

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

17. Creditors: Amounts falling due within one year

Bank loans Other loans Trade creditors Other taxation and social security Pension fund loan payable Other creditors Accruals and deferred income Deferred income at 1 April 2021 Resources deferred during the year Amounts released from previous periods	Group 2022 £ 41,667 35,129 160,896 70,142 6,128 5,895 100,966 420,823 Group 2022 £ 58,359 32,387 (58,359) 32,387	Group 2021 £ 50,000 34,137 109,832 19,317 11,927 5,981 130,943 362,137 Group 2021 £ 20,474 58,359 (20,474) 58,359	Charity 2022 £ - 35,129 153,872 69,895 6,128 5,584 100,961 371,569 Charity 2022 £ 58,359 32,387 (58,359) 32,387	Charity 2021 £ - 34,137 102,749 19,317 11,927 5,670 129,856
				303,656
				Charity 2021 £ 20,474 58,359 (20,474)
				58,359

18. Creditors: Amounts falling due after more than one year

	Group	Group	Charity	Charity
	2022	2021	2022	2021
	£	£	£	£
Other loans	1,013,260	1,047,664	1,013,260	1,047,664

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

	Group	Group	Charity	Charity
	2022	2021	2022	2021
	£	£	£	£
Payable or repayable by instalments	786,772	825,444	786,772	825,444

The amounts disclosed above relate to a single loan. The loan is repayable up to December 2042 and incurs interest at a rate of 2.75% above base rate. The loan is secured against the Charity's property.

Page 38

The Kenward Trust

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

19. Statement of funds

Statement of funds - current year

Unrestricted funds Designated funds Land and buildings General funds Fixed asset fund Free reserves Pension fund reserve Total Unrestricted funds	Balance at 1 April 2021 £ 3,856,442 82,719 (141,889) (89,827) (148,997) 3,707,445	Income £ - - 1,433,297 - 1,433,297 1,433,297	Expenditure £ (69,357) (27,290) (1,569,038) - (1,596,328) (1,665,685)	Transfers in/out £ (416,327) - 355,541 71,190 426,731 10,404	Gains/ (Losses) £ 1,643,429 - - - - 1,643,429	Balance at 31 March 2022 £ 5,014,187 55,429 77,911 (18,637) 114,703 5,128,890

Page 39

The Kenward Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

19. Statement of funds (continued)

Restricted funds RESET Youth/Communit y Services KIP - Think Differently Archery Project Think Differently Film Therapeutic Community Nationwide KCC Covid Grant 2021 Kent Police P Harrison Foundation B&Q Lawson Trust KCF - Patient Management System Arnold Clark Community Fund Janet Sturge in memorium Total of funds	Balance at 1 April 2021 £ - - - 301 5,281 - - - - - - - - - - 5,582 3,713,027	Income £ 22,167 28,020 34,083 - - 16,112 11,735 11,133 500 5,000 3,395 2,274 8,345 750 8,782 152,296 1,585,593	Expenditure £ (16,667) (28,020) (13,417) - - (11,846) (10,634) (11,133) (500) (4,860) (482) (2,175) - (750) (8,782) (109,266) (1,774,951)	Transfers in/out £ - - - - - (4,266) - - - - - - (6,138) - - (10,404) -	Gains/ (Losses) £ - - - - - - - - - - - - - - - - 1,643,429	Balance at 31 March 2022 £ 5,500 - 20,666 301 5,281 - 1,101 - - 140 2,913 99 2,207 - -
						38,208
						5,167,098

Page 40

The Kenward Trust

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

19. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds Designated funds Land and buildings General funds Fixed asset fund Free reserves Pension fund reserve Total Unrestricted funds	Balance at 1 April 2020 £ 3,640,192 110,008 132,222 (106,433) 135,797 3,775,989	Income £ - - 1,355,687 - 1,355,687 1,355,687	Expenditure £ - (27,289) (1,629,195) 16,606 (1,639,878) (1,639,878)	Transfers in/out £ - - (603) - (603) (603)	Gains/ (Losses) £ 216,250 - - - - 216,250	Balance at 31 March 2021 £ 3,856,442 82,719 (141,889) (89,827) (148,997) 3,707,445

Page 41

The Kenward Trust

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

19. Statement of funds (continued)

Restricted funds RESET Youth/Communit y Services KIP - Think Differently Kent Community Foundation Archery Project Think Differently Film Therapeutic Community KCC Move On Total of funds	Balance at 1 April 2020 £ 9,069 - - 9,179 6,400 13,000 - - - 37,648 3,813,637	Income £ 10,169 27,500 19,388 - 487 - 35,815 8,151 6,991 108,501 1,464,188	Expenditure £ (19,238) (28,103) (19,388) (9,179) (6,586) (7,719) (35,815) (8,151) (6,991) (141,170) (1,781,048)	Transfers in/out £ - 603 - - - - - - - 603 -	Gains/ (Losses) £ - - - - - - - - - - 216,250	Balance at 31 March 2021 £ - - - - 301 5,281 - - -
						5,582
						3,713,027

Page 42

The Kenward Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

19. Statement of funds (continued)

RESET - Amounts awarded by Colyer Ferguson, to be paid annually, to provide funding for a Manager. The manager controls the activities of our Stage 2 rehabilitation programme (Move-On) and our Homeless project.

Youth/Community Services - Amounts received from local councils to provide information to young people about alcohol and substance misuse. Young people are invited to site to connect with adults who have previously been residents. The funds are also used to provide out of hours support to 'hot-spots' as directed by the local councils, using the services of Kenward staff, a dedicated consultant and staff members.

KIP Think Differently - Think Differently is our secondary school drug and alcohol education programme. We update young people and answer any questions on the potential lifechanging consequences of drug, substance and alcohol misuse, dependency and antisocial behaviour.

Archery project - Grant provided as part of project to use archery in supporting the charitable objectives. Think Differently film - Linked to our think differently project above except these funds are specifically for the creation of a film to help us educate young people.

Therapeutic Community - This represents funds received for the use in our main Stage One therapeutic treatments.

Nationwide - Funds provided by the Nationwide Building Society for use in the Therapeutic Gardens and workshops for equipment and consumables.

KCC COVID Grant 2021 - Funds provided by Kent County Council to enable the continued delivery of our therapeutic services by facilitating on-site testing and segregation of duties resulting from the COVID outbreak.

Kent Police - A grant provided for the purchase of tools for use in the Therapeutic Gardens and Workshops.

P Harrison Foundation - Funds provided for the purchase of gym equipment for resident use in our onsite gym.

B&Q - A grant provided for the purchase of tools and consumables for use in the Therapeutic Gardens and Workshops.

Lawson Trust - This represents funds received for the provision of bedding and testing equipment for use in our Move-on and Homeless projects.

KCF Patient Management System - A grant provided by the Kent Community Foundation for the introduction of a new digitised patient management system, including software, installation and training. Arnold Clark Community Fund - Funds designated for the purchase of furniture in our Stage One therapeutic programme.

Janet Sturge in Memorium - A bequest received for the use in the treatment and resettlement of ex offenders within our Stage One and Move-on projects.

Land and Buildings - This represents our fixed asset balance less any subsequent depreciation, gains or losses and loans.

Page 43

The Kenward Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

20. Summary of funds

Summary of funds - current year

Designated funds General funds Restricted funds	Balance at 1 April 2021 £ 3,856,442 (148,997) 5,582 3,713,027	Income £ - 1,433,297 152,296 1,585,593 Income £ - 1,355,687 108,501 1,464,188	Expenditure £ (69,357) (1,596,328) (109,266) (1,774,951) Expenditure £ - (1,639,878) (141,170) (1,781,048)	Transfers in/out £ (416,327) 426,731 (10,404) - Transfers in/out £ - (603) 603 -	Gains/ (Losses) £ 1,643,429 - - 1,643,429 Gains/ (Losses) £ 216,250 - - 216,250	Balance at 31 March 2022 £ 5,014,187 114,703 38,208 5,167,098 Balance at 31 March 2021 £ 3,856,442 (148,997) 5,582 3,713,027
Summary of funds - prior year
Designated funds General funds Restricted funds	Balance at 1 April 2020 £ 3,640,192 135,797 37,648 3,813,637

21. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted funds 2022 £ Tangible fixed assets 6,303,809 Intangible fixed assets 3,523 Current assets 274,278 Creditors due within one year (420,823) Creditors due in more than one year (1,013,260) Provisions for liabilities and charges (18,637) Total 5,128,890	Restricted funds 2022 £ - - 38,208 - - - 38,208	Total funds 2022 £ 6,303,809 3,523 312,486 (420,823) (1,013,260) (18,637) 5,167,098

Page 44

The Kenward Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

21. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Provisions for liabilities and charges Total	Unrestricted funds 2021 £ 4,726,855 11,977 468,241 (362,137) (1,047,664) (89,827) 3,707,445	Restricted funds 2021 £ - - 5,582 - - - 5,582	Total funds 2021 £ 4,726,855 11,977 473,823 (362,137) (1,047,664) (89,827) 3,713,027

22. Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Amortisation charges Dividends, interests and rents from investments Loss on the sale of fixed assets Decrease in stocks Decrease/(increase) in debtors Increase in creditors Pension movement Net cash used in operating activities 23. Analysis of cash and cash equivalents Cash in hand	Group 2022 £ (189,358) 135,326 8,454 (32) - 9,375 (33,288) 71,826 (71,190) (68,887) Group 2022 £ 108,034	Group 2021 £ (316,860) 96,931 4,932 (142) 28,112 425 43,199 11,965 (16,606) (148,044) Group 2021 £ 293,284

Page 45

The Kenward Trust

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

24. Analysis of changes in net debt

Cash at bank and in hand Debt due within 1 year Debt due after 1 year	At 1 April 2021 £ 293,284 (96,064) (1,047,664) (850,444)	Cash flows £ (185,250) 47,544 - (137,706)	Other non- cash changes £ - (34,404) 34,404 -	At 31 March 2022 £ 108,034 (82,924) (1,013,260) (988,150)

25. Pension commitments

The Charity is part of the Pensions Trust Growth Plan, however entry to this scheme was closed a number of years ago. This is a multi employer defined benefit pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. It is not possible to separately identify the assets and liabilities of participating employers on a consistent and reasonable basis.

The fund is in deficit and if the charity was to withdraw from the scheme the cost of withdrawal would have been £386,284 on 30 September 2016. The charity does not plan to withdraw from the scheme.

A revised recovery plan took effect in April 2016 with new contributions. The results of this yearly update do not affect the deficit contributions due.

Deficit contributions are due from April 2016 to 31 March 2025, with the amount increasing in April each year by 3%.

The deficit contributions due from April 2020 will be £6,790 per year.

The group operates a Defined benefit pension scheme. However, the scheme is a multiple employer scheme and the group is unable to identify its share of the underlying assets and liabilities.

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme, as shown above.

Page 46

The Kenward Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2022

26. Operating lease commitments

At 31 March 2022 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year Later than 1 year and not later than 5 years	Group 2022 £ 27,750 30,218 57,968	Group 2021 £ 11,393 - 11,393	Charity 2022 £ 27,750 30,218 57,968	Charity 2021 £ 11,393 -
				11,393

27. Related party transactions

The Charity has not entered into any related party transaction during the year (2021: £Nil), nor are there any outstanding balances owing between related parties and the Charity at 31 March 2022 (2021: £Nil).

28. Principal subsidiaries

The following was a subsidiary undertaking of the Charity:

Name			Company	Registered office or principal	Principal activity
			number	place of business
Kenward	Enterprises Limited		10017029	Kenward House, Kenward Road,	To provide a
				Yalding, Maidstone, Kent, ME18	commercial benefit
				6AH	to the parent charity
					and its beneficiaries
Class of	Holding	Included in
shares		consolidation
Ordinary	100%	Yes

The financial results of the subsidiary for the year were:

Name	Income	Expenditure	Profit/(Loss)	Net
	£	£	for the year	liabilities
			£	£
Kenward Enterprises Limited	25,824	(34,659)	(8,835)	(166,598)

Page 47