OpenCharities

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2023-03-31-accounts

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

Company Registered Number 02699638 Registered Charity Number in England and Wales 1156258 Registered Charity Number in Scotland SC045939

REAL LIFE OPTIONS (A company limited by guarantee)

Annual Report and Financial Statements For the year ended 31 March 2023

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

Contents

Page
Reference and Administration Details 1
Structure Governance & Management
I. Status 2
II. Objectives and Activities 2
III. Structure 4
IV. Volunteers 4
V. Public Benefit 5
VI. Section 172 Statement 5
VII. Streamlined Energy & Carbon Reporting (SECR) 7
VIII. Principal Risks and Uncertainties 9
IX. Serious Incident report 11
Group Strategic Report
I. Achievements and Performance 12
II. Constitution 14
III. Financial Review 18
IV. Plans for the Future 20
Trustees Report 21
Statement of Trustees’ Responsibilities 23
Independent Auditor’s Report 24
Financial Statements 28
Notes 32

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

REFERENCE AND ADMINISTRATION DETAILS FOR THE YEAR ENDED 31 MARCH 2023

Organisation’s Name

Real Life Options (“RLO”)

Status

Real Life Options is a charitable company limited by guarantee.

Real Life Options’ governing documents are its Memorandum and Articles of Association.

Company Registration Number 02699638 Charity Registration Number 1156258 Office of the Scottish Charity Regulator Number SCO45939 Principal Office and Registered Address David Wandless House A1 Business Park Knottingley Road Knottingley West Yorkshire WF11 0BU Trustees D Wilkin R A Hendry D I Sargent C A Maltby C R McCorkindale

Officers: Company secretary R Milner Chief Executive D I Sargent Chief Operating Officer I Hardcastle Managing Director Real Life Options Enterprise V Simons Managing Director Real Life Options Charity J Trench Director of Huma Resources A Holden (resigned August 2022) Director of Finance and Resources K E Platts Advisers: Independent Auditor Grant Thornton UK LLP 1 Holly Street Sheffield City Centre Sheffield S1 2GT Bankers Natwest 135 Bishopsgate London EC2M 3UR Legal Weightmans Westgate Point Leeds LS1 2AX

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

I. STATUS

Real Life Options (“RLO”) is a company limited by guarantee. Our governing documents are the Memorandum and Articles of Association.

Governing Body and Structure

Our governing body is a Board of Directors who are also the Trustees of the charity. As at 31st March 2023 there were five Trustees.

The RLO constitution also facilitates a membership group which is distinct from the Board and appointed through a separate process to ensure impartiality. The current seven members hold the Board to account in terms of ensuring that the organisation operates in accordance with its values.

Real Life Options has, over the years, evolved the organisation’s structure to cope with increasing regulation, legislation, and complexity. The Board meets regularly in accordance with the constitutional requirements. The Board also benefits from an audit committee, remuneration committee and other working groups.

Real Life Options has a well-established annual planning and budgeting process.

Decision making

The Board meets quarterly in accordance with an annual work programme agreed annually in advance. In addition, it meets annually for an average of two days during which time it works with the Leadership team to set the strategic agenda and review previous performance.

Operational responsibility is delegated to the Chief Executive Officer. The Board is supported by a Company Secretary. At its meetings, the Board receives strategic and operational reports as well as a financial report.

II. OBJECTIVES AND ACTIVITIES

Real Life Options is founded on the values of respect, honesty, responsibility and excellence. These underpin our person-centred approach and help us work towards our vision of enabling every person to achieve their potential – whether they are someone we support or a member of staff.

The objects of the charity are:

“The Charity’s objects are the relief of those in the United Kingdom who are in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage.”

Real Life Options supports people to achieve their potential. We focus particularly on supporting people with learning disabilities and autism.

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

II. OBJECTIVES AND ACTIVITIES (continued)

The Charity’s main activities in relation to its objects and for the public benefit are the provision of tailored, person-centred care and support to people who have been identified by local authorities as qualifying for publicly funded services.

The Trustees have had due regard to the guidance published by the Charity Commission on public benefit in directing the Charity’s activities.

Our Vision

Is to be recognised as leaders in enabling people to achieve their potential.

Our Purpose

Is to provide excellent social care and support.

Our Values

Focus on respect, honesty, responsibility and excellence.

Our purpose is to provide relief to those that are in need through the provision of excellent care and support. We provide over 50,000 hours of care each week, working with 43 different local authorities throughout England and Scotland.

We support:

Real Life Options is an innovative provider of a range of service models which allow for individualised support packages including:

The focus of the charity’s effort will continue to be care and support for those who need it, particularly people with a learning or other disability.

During 2022/23 RLO continued to develop the strategy further using a purpose led strategic approach. The external environment changed significantly over the year including reduced impact from the lockdowns, increased costs, challenges in recruitment and energy insecurity. In response RLO Board planned for the creation of a more efficient leadership structure with a greater focus on purpose led growth and less on new service development.

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

III. STRUCTURE

Real Life Options’ Structure:

IV. VOLUNTEERS

Real Life Options’ volunteer strategy initiative has grown considerably since it was implemented in 2019 and the initiative has grown considerably since. We reviewed our management of the initiative in 22/23 and made the decision to continue with 1 Strategic Volunteer and Social Value Lead for the Group rather than 2 Volunteer and Social Value Managers operating out of England and Scotland. The organisation has just over 240 volunteers and although the numbers are continuing to grow this remains stable due to the economic climate and people returning to paid employment. Alongside the volunteer strategy we continue to have a robust fundraising initiative that enables staff, people we support and groups across the communities to formally raise funding and contribute to the future development of our community connections work planning and opportunity to enhance existing services and activities.

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

V. PUBLIC BENEFIT

The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the Charity Commission's guidance on public benefit. This Trustees' report clearly sets out our charitable objectives and how they benefit the public. The organisation is set up to benefit people who are in need because they have disabilities or require support at home. It also works with people who have severe learning difficulties. The organisation works to achieve its vision of a society in which disabilities are not a barrier to people taking control of their lives. We deliver professional, innovative and effective customerfocused services with the aim of improving the quality of life of people by:

VI. SECTION 172 STATEMENT

This section provides RLO Group's section 172 statement. It needs to be read in the context of the whole annual report as evidence of the Directors’ compliance with Section 172 of the Companies Act which requires Directors to take into consideration the interests of stakeholders in their decision making. The Directors continue to consider the Company’s employees and other stakeholders, including the impact of its activities on the various communities we serve, the environment and the Company’s reputation, when making decisions.

Acting in good faith and fairly between stakeholders, the Directors consider what is most likely to promote the success of the Company for its stakeholders in the long term. Whilst the importance of giving due consideration to our stakeholders is not new, we are explaining in more detail this year how the Board engages with our stakeholders, thus aiming to comply with the requirement to include a statement setting out how our Directors have discharged this duty.

The Board regularly reviews our principal stakeholders and how we engage with them. This is achieved through a number of channels including our independent membership which is in regular receipt of information concerning the organisation's activities. The Board has also invested in our Support and Enablement programme which is primarily concerned with ensuring that services provided are designed and delivered in accordance with the wishes and expectations of people we support and their families. Thus, the stakeholder voice is brought into the boardroom throughout the annual cycle through information provided by the leadership team and also by direct engagement with stakeholders themselves.

The relevance of each stakeholder group may increase or decrease depending on the matter or issue in question, so the Board seeks to consider the needs and priorities of each stakeholder group during its discussions and as part of its decision making.

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

VI. SECTION 172 STATEMENT (continued)

RLO Group's principal stakeholders are defined as:

Prime Base Partner People we support Local Authorities Researchers Families Commissioners Technical informers Staff Banks Civil leaders Volunteers Regulators Strategic partners Suppliers Media Local Communities Donors

The Board continues to enhance its methods of engagement with the workforce. The RLO employee journey was designed to provide multiple points of engagement:

We aim to work responsibly with our suppliers. RLO remains committed to ensuring that there is no Modern Slavery or Human Trafficking in our supply chains or in any part of our business.

The Chief Executive Officer has continued to enhance the skills and expertise of the Leadership Team to support him in his duties and decision making. This includes recognition of the Senior Leadership Group which comprises the senior functional management roles and together is comprised of those with responsibility for interacting with the Company’s principal stakeholders.

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

VII. STREAMLINED ENERGY & CARBON REPORTING (SECR)

This report summarises the energy usage, associated emissions, energy efficiency actions and energy performance for Real Life Options, under the government policy Streamlined Energy & Carbon Reporting (SECR), as implemented by the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.

Real Life Options is a UK incorporated charity. Under the new SECR legislation we are mandated to include energy consumption, emissions, intensity metrics and all energy efficiency improvements implemented in our most recent financial year.

Real Life Options’ Scope 1 direct emissions (combustion of natural gas and transportation fuels) for this fourth year of reporting are 263.80 tCO2e (prior year 276.25 tCO2e), resulting from the direct combustion of 1,422,791 kWh of fuel (prior year 1,480,812 kWh). Scope 2 indirect emissions (purchased electricity) for this fourth year of reporting are 107.67 tCO2e (prior year 125.65 tCo2e), resulting from the consumption of 556,767 kWh of electricity (prior year 591,785 kWh) purchased and consumed in day-to-day business operations. Scope 3 emissions (resulting from sources not directly owned by Real Life Options Group i.e., business travel undertaken in employee-owned vehicles) has been reported this year for the first time and is 133.10 tCO2e (prior year 91.42 tCO2e) resulting from the consumption of 575,431 kWh of energy (prior year 394,083 kWh).

Real Life Options’ operations have an intensity metric of 10.39 tCO2e/£m (prior year 10.93 tCO2e/£m) turnover for this reporting year.

Real Life Options is the highest parent company out of four trading companies (Real Life Options, 1st Home Care Ltd, Montana Home Care Ltd and Affinity Homecare Shrewsbury Ltd). Only Real Life Options is required to comply with SECR as a group, as we exceed the qualification threshold of two of the three criteria.

The total consumption (kWh) figures for energy supplies reportable by Real Life Options are as follows:

Utility and Scope FY 2022/23
Consumption
(kWh)		 FY 2021/22 Consumption
(kWh)
Scope 1 Total 1,422,791 1,480,812
Gaseous and other fuels(Scope 1) 1,338,039 1,377,609
Transportation (Scope 1) 84,753 103,203
Scope 2 Total 556,767 591,785
Grid-Supplied Electricity (Scope 2) 556,767 591,785
Scope 3 Total 575,431 394,083
Transportation (Scope 3) 575,431 394,083
Total 2,554,989 2,466,680

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

VII. STREAMLINED ENERGY & CARBON REPORTING (SECR) (continued)

The total emission (tCO2e) figures for energy supplies reportable by Real Life Options are as follows. Conversion factors utilised in these calculations are detailed in Real Life Options 's Streamlined Energy & Carbon Reporting (SECR) available on request:

FY 2022/23 Consumption (tCO2e) FY 2021/22 Consumption (tCO2e)
Utility and Scope Location-based Location-based
Scope 1 Total 263.8 276.25
Gaseous and other fuels(Scope 1) 244.25 252.32
Transportation (Scope 1) 19.55 23.93
Scope 2 Total 107.67 125.65
Grid-Supplied Electricity (Scope 2) 107.67 125.65
Scope 3 Total 133.1 91.42
Transportation (Scope 3) 133.1 91.42
Total 504.56 493.33

An intensity metric of tCO2e per £m turnover has been applied for the annual total emissions of Real Life Options. The methodology of the intensity metric calculations detailed in Real Life Options 's Streamlined Energy & Carbon Reporting (SECR) are available on request, and results of this analysis is as follows:

Intensity Metrics **Location-based tCO2e **
FY 2022/23 % change
All Scopes tCO2e per Turnover (£m) 10.39 -4.94%

Reporting Methodology

This report (including the Scope 1, 2 and 3 consumption and CO2e emissions data) have been developed and calculated using the GHG Protocol – A Corporate Accounting and Reporting Standard (World Business Council for Sustainable Development and World Resources Institute, 2004); Greenhouse Gas Protocol – Scope 2 Guidance (World Resources Institute, 2015); ISO 14064-1 and ISO 14064-2 (ISO, 2018; ISO, 2019a); Environmental Reporting Guidelines: Including Streamlined Energy and Carbon Reporting Guidance (HM Government, 2019).

Government Emissions Factor Database 2022 version 1.1 has been used, utilising the published kWh gross calorific value (CV) and kgCO2e emissions factors relevant for reporting period 01/04/2022 – 31/03/2023.

Estimations were undertaken to cover billing periods where data was not received from suppliers. These were calculated utilising historical and present invoice readings and additional supplier provided consumption data where available. Where no data was available, a median value for the portfolio was utilised. Inspired PLC are maintaining efforts in the sourcing of the required verifiable data for the 2022/23 reporting year and will reissue restated figures for use in 2023/24 reporting as soon as received.

Intensity metrics have been calculated using total tCO2e figures and the selected performance indicator agreed with Real Life Options for the relevant report period:

Total turnover (£m) FY2022/23(FY2021/22) £48.56m (£45.13m)

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

VII. STREAMLINED ENERGY & CARBON REPORTING (SECR) (continued)

Energy Efficiency Improvements

Real Life Options are ESOS compliant and ISO14001 accredited. As an organisation we are committed to operating a sustainable environmentally conscious business, as much as is reasonably practicable, whilst also mindful of our obligations as a Charity to the people we support.

Real Life Options are committed to year-on-year improvements to their operational energy efficiency. A register of energy efficiency measures has been compiled, with a view to implementing these measures in the next five years.

Measures ongoing and undertaken through 2022/23

Cycle-to-Work Scheme

The Cycle-to-work scheme has been actively promoted within the business following re-launch in 2021/22. While not impacting the operational carbon footprint of Real Life Options, this scheme emphasises the importance of reducing reliance on less sustainable modes of transport, and reduces emissions associated with staff commuting to work.

Electric Car Scheme

Real Life Options has a company-wide electric car benefit scheme which was launched in April 2022. This demonstrates the commitment of Real Life Options to reduce the emissions associated with business travel, and supports the UK-wide goal of moving away from internal combustion engine (ICE) vehicles in the future.

Measures prioritised for implementation in 2023/24

Smart Meters

Real Life Options will be increasing the number of smart meters in properties to highlight energy usage. This will not only enable Real Life Options to have greater visibility on energy use through the portfolio, but deliver granular accurate data to the business, that can be utilised in the future to ensure accurate billing and reduce energy wastage throughout the portfolio.

VIII. PRINCIPAL RISKS AND UNCERTAINTIES

Real Life Options Group uses a dynamic risk management programme which consists of a number of subcommittees, which meet on a quarterly basis. These sub committees comprise of:

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

VIII. PRINCIPAL RISKS AND UNCERTAINTIES (continued)

The risk management programme is based on three lines of defence as per the diagram below.

RLO also has a Group Risk Committee. This group meets quarterly and its purpose is to:

Risk Advisory Panel

Although this panel is aligned with the sub group process, it operates independently from the rest of the sub groups. This ensures that a clear and robust focus on the assessment and on-going review of emerging risks across the Real Life Options Group (including 1st Home Care Ltd., Montana Home Care Ltd. and Affinity Homecare Shrewsbury Limited) is maintained at all times. The purpose of the panel is to:

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

IX. SERIOUS INCIDENT REPORTING

During the year an incident was reported to the Charity Commission which has since been satisfactorily resolved. There are no legal or financial matters arising from this incident.

I. ACHIEVEMENTS AND PERFORMANCE

During this year, the Board has continued to oversee the next implementation stages of the strategic plan with a strong focus on leadership, collaboration and accountability. The organisation’s strategic plan known as ’Our Plan’ - a five year blueprint and direction of travel towards 2022 was built upon and extended to 2024. Built on seven core themes underpinned by an ethos of safeguarding, it provides a framework for innovation and agile working:

A key priority for our strategic plans is to have the right people, in the right place, at the right time to create and deliver excellent frontline support. Our Plan is a live working document that utilises Innovation Groups as the forum for co-production and collaboration with individuals, families, professional services and staff teams.

Our strategic aims are to:

During 2022/23 RLO continued to develop the strategy further from 2022-2024, using a purpose led strategic approach. Leadership Team worked on interpreting these seven themes into an updated Group strategy linked to ‘Our Purpose – Always with a lasting connection’. The six pathways were: Choice and Inclusion: Achieving Potential: Lifelong connections: Independence at Home: Community Connected and Investment for Impact. From this the 2022-24 strategic objectives and commitments were determined.

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

I. ACHIEVEMENTS AND PERFORMANCE (continued)

Person Centred Support and Enablement

Real life Options continue to invest in the Person Centred Support and Enablement (PCSE) strategy. The primary focus of this strategy is to ensure all supported people have the opportunity to engage in an ordinary life within their local communities. The Specialist Support Team have developed a PCSE Framework which highlights the skills, experience and knowledge all employees require to provide person centred support. In addition to this the organisation have invested in raising awareness on restrictive practices by ensuring webinars and coaching sessions are available to support operational and business support teams to identify restrictive practices, provide support to reduce them and explore least restrictive options where required. Last year a substantial investment was made by the organisation to develop bespoke PCSE training based on real life experiences of supported people, eLearning and face to face academies continue to take place to ensure all those providing direct and non- direct support have the skills, knowledge and experience to provide person centred support.

A bespoke electronic outcomes tool has also been developed to support individuals to identify personal outcomes, break the outcome down in to achievable goals and provide information regarding progress. Investment in building skills and capabilities within the Specialist Support Team has also been a key focus. Two of the Specialist Support Partners were successful in achieving a level five Professional Diploma in Positive Behaviour Support and the Head of Specialist Support completed a Masters in Applied Behaviour Analysis and Positive Behaviour Support. Learning acquired by the team will be disseminated throughout the organisation to support a Positive Behaviour Support culture across the organisation.

Social Impact

During 2022-23 we reported quarterly to the Board on the social impact measures, outputs and outcomes which dovetailed into the wider Group strategy, “Our Purpose”. The approach has captured and evidenced our Social Impact in a user-friendly format introducing interactive case studies and links to wider Group reports. The year-end report will be used as a strong baseline to measure 23/24 against. We can already see the impact that volunteer input is having across many of our services. In addition, feedback from people we support is now shaping new pieces of work and further development of services across the wider Group as well as for individuals we support.

The Social Impact report continues to be broken down into the six pathways of the Our Purpose – Always with a lasting connection Group Strategy and involves feedback from across the Real Life Options Group as well as external partners and People we Support.

Community Connection Fund

In 2022/23 RLO Group continued to deliver against the Community Connection Fund, our small grants programme designed to empower people we support and staff in local services to invest in their communities by submitting funding applications for activities that make a difference locally. Throughout the year we have seen the impact that match funding raised by teams/families and guardians has had in many of our services and community events. New Community Hubs have been introduced in several areas across our service portfolio, not only widening the service model for people we support but also opening up new opportunities for volunteers from within the communities.

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

I. ACHIEVEMENTS AND PERFORMANCE (continued)

Staff Health and Wellbeing

Real Life Options Group are committed to supporting our staff with their health and wellbeing. Over the year the Health & Wellbeing Core Group have met to further develop the plan for the future Health & Wellbeing Strategy. The plan confirms the organisations commitment to the following objectives:

  1. Producing, implementing, and communicating a mental health at work plan that encourages and promotes good mental health in the workplace.

  2. Communicating of Health & Wellbeing

  3. Providing a specific focus on mental health awareness

  4. Providing Health & Wellbeing/Mental Health Representatives & Support Networks

  5. Encouraging open conversations about mental health

  6. Providing good working conditions, ensuring staff have a healthy work life balance

  7. Providing good career and role development opportunities

  8. Promoting an effective people management environment

  9. Routinely monitoring employee mental health and wellbeing by

  10. Analysing data

The new Group Health & Wellbeing Lead will lead the organisation through its plan in the coming year. This role will be responsible for training Health & Wellbeing Champions across our services and be a key driver of the Action Plan.

Staff Learning and Development

2022 – 2023 has been a year of change for the L&D team, we saw the team triple in size (1 person to 3) and that therefore lead to a period of reflection and change for the team. During the year we analysed existing structures and processes and planned new ways of working to better support the organisations training needs going forward. This was done with the view of us being more proactive to ensure peoples training needs are met in advance rather than being reactive. Whilst doing this we also supported the business with the standard day to day training needs, ad hoc training requests and supported the implementation of the EDI framework.

Staff engagement

In the last year we have engaged with staff to hear opinions, ideas and gain an insight into what it is like to work for Real Life Options. We did this through surveys and staff forums, with more than 500 people taking part across the organisation.

We have increased the range of surveys that we undertake to hear from our staff, surveys conducted since April 2022 include:

Participation in the surveys overall has increased in the last 12 months however we have paused the staff forums due to previous low attendance. The Employee Happiness surveys are regularly completed by around 40% of those receiving the texts.

Equality, Diversity, and Inclusion

Real Life Options Group is committed to ensure that all our diverse groups of staff experience job satisfaction and wellbeing at work. The Equality, Diversity, and Inclusion framework was further developed in 2022-23. A face-to-face EDI training session was created, which was piloted with a mixture of staff (support workers, managers, and business support staff) at the end of 2022/23 and will be taken organisation wide in 2023/24. This will give our staff the knowledge, and skills to ensure that our values are lived and culture and generational differences in the workplace recognised.

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

II. CONSTITUTION

The organisation is a company limited by Guarantee. The organisation’s governing documents are its Articles of Association. The liability of each member of Real Life Options is £1. There are a minimum of six members and a maximum of twelve members. Only one Non-Executive and one Senior Manager of the company can be a member at any time.

The Articles require a minimum of three Non-Executive Directors (who are also Trustees) and a maximum of eight non-executive Directors. The articles allow for the appointment of up to two Executive Directors as Trustees, with no minimum number.

The Board reviews its own operational effectiveness and governance annually to ensure that it is meeting the needs of the organisation and complying with all applicable regulations.

RLO Group's governance policy and structure complies with the following regulators:

Under the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014: Regulation 17, providers must have effective governance, including assurance and auditing systems or processes. These must assess, monitor, and drive improvement in the quality and safety of the services provided, including the quality of the experience for people using the service. The systems and processes must also assess, monitor, and mitigate any risks relating the health, safety and welfare of people using services and others. Providers must continually evaluate and seek to improve their governance and auditing practice. RLO Group's governance approach drives performance in compliance with this.

Operation of the Board of Trustees

The Board of Trustees meets quarterly during the year to monitor performance against agreed strategic goals and review the organisation’s and Leaderships Team’s work and services. An Audit Committee, comprised of Non-Executive Trustees, has responsibility for reviewing the organisation’s accounting policies and financial accounts. It meets at least annually, with the Chief Executive and Director of Finance in attendance.

A Remuneration Committee, comprising Non-Executive Trustees, has specific responsibility to review and determine the remuneration of the CEO and review the remuneration of the Leadership Team based on external benchmarking and, where appropriate, recommendation and discussion with the Chief Executive. Oversight is also provided to the Remuneration Committee on levels of remuneration/rewards throughout the whole organisation.

Recruitment and appointment of new Trustees

Under the leadership of the Chair, the recruitment needs of the Board of Trustees is monitored. This includes a review of the current knowledge, experience, skills and abilities, and how these will be affected by any planned Trustee departures in the future. Trustee vacancies are advertised externally. Applicants are shortlisted against the criteria in the person specification for the role, including any specific matters highlighted during the above review. Shortlisted applicants are recruited through a process which includes being interviewed by at least two Non-Executive Trustees (one of whom will be the Chair) and meeting a panel comprising people we support and their support workers. Shortlisted applicants are appointed only where they have the necessary skills and qualities to contribute effectively to the organisation’s management and development.

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

II. CONSTITUTION (continued)

Recruitment and appointment of new Trustees (continued)

New Trustees are inducted in two main ways:

During the year there were no new Trustees appointed.

Related parties

The only related parties are the Trustees. Except for the transaction below, transactions have been only those in the normal course of their employment and through standard delivery of services.

During the year, Real Life Options purchased services and assets amounting to £24,705.69 from Enable Unity CIC, a company in which Dr D Sargeant is a trustee. These services and assets were purchased on an arm’s length basis. Real Life Options had no amounts outstanding to or due from Enable Unity CIC at the 31 March 2023.

Subsidiaries

At the balance sheet date, Real Life Options had nine wholly owned subsidiaries and 13 dormant newly incorporated subsidiaries (see note 14).

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

II. CONSTITUTION (continued)

Staff Management

During the year under review the Leadership Team (LT) had the following staff structure:

The Chief Executive has overall responsibility for all operational matters and reports directly to the Board of Trustees on a regular basis.

Environmental Policy

We recognise our responsibility to help protect the planet. We are committed to minimizing our impact on the environment and supporting those who are working to improve global environmental sustainability. We are committed to operating our business responsibly in compliance with all legal requirements relating to the provision of bespoke support services for those with learning disabilities, complex behavioural issues, autistic spectrum disorders, profound multiple disabilities and people with enduring mental ill health and older people.

We are mindful of The Climate Change Act 2008 and The Climate Change (Emissions Reduction Targets) (Scotland) Act 2019, and our policy is to operate with and to maintain good relations with all regulatory bodies. We carry out all measures reasonably practicable to meet, exceed or develop all necessary or desirable requirements and to continually improve environmental performance through the implementation of the following:

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DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

II. CONSTITUTION (continued)

Modern Slavery Act 2015 - Modern Slavery and Human Trafficking Statement

Real Life Options Group will always work to the highest ethical standards and comply with all laws, regulations and rules relevant to our business. Our reputation is paramount and we take our Corporate and Social Responsibilities very seriously. We realise that our relationships with those we deal with, whether service users, employees, stakeholders, suppliers or the local community, are key to our success and consequently we take our obligations to those people very seriously.

This statement which covers the financial period 1st April 2022 to 31st March 2023, is made on behalf of the Board at Real Life Options Group with regards to the Modern Slavery Act 2015, which requires large employers to be transparent about their efforts to eradicate Slavery and Human Trafficking in their supply chains. This statement describes how we recognize and prevent human trafficking and slavery in our supply chains.

Since 1992, Real Life Options has been delivering high quality, ethically managed social care for people with learning disabilities and autism. We have a national reputation for providing person-centred care and services to support people to live their lives. We provide self- directed support to ensure people have equal rights as citizens, to maximize their independence and social inclusion and to exercise choice about their own lives.

Our supply chains include procurement of agency staff, facilities maintenance and utilities.

We are committed to ensuring that there is no modem slavery or human trafficking in our supply chains or in any part of our business. We are committed to acting ethically and with integrity in all our business relationships and to implement and enforce effective systems and controls to ensure slavery and human trafficking is not taking place anywhere in our supply chains. We expect our supply chains to comply with all relevant regulatory pre-employment checks and verification of certification and eligibility.

We have various checks that enable us to identity and mitigate risk in relation to slavery and human trafficking. We will ensure that we work with suppliers who treat their obligations towards modern slavery with the same importance that we do. We maintain systems that:

To ensure a high level of understanding of the risks of modem slavery and human trafficking in our supply chains and our business, staff are made aware through our safeguarding learning module. Our employees are encouraged to identify any potential anti- slavery concerns and receive regular communications regarding what to do if they suspect this and we have in place protection for whistle blowers.

Gender Pay Reporting

Our gender pay report can be found on the government website.

Operating in the social care sector, we employ a high percentage of female employees (74.7%) in common with sector norms. Our strategy is to build a diverse workforce ensuring that all employees are treated fairly and with respect. We ensure that all our pay and reward scales are transparent and ensure that all employees have equal opportunity to progress within the organisation.

We are pleased to note that there is no pay differential in our Median hourly wage rates and a 0.2% differential towards males in our Mean hourly wages. We continue to strive towards parity among all employees and all new recruits are paid at standard rates to help us achieve this. The organisation will continue to review any evident pay gaps both at Mean and Quartile levels, with an aspiration to close any gaps and ensure pay parity for all employees.

17

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

II. CONSTITUTION (continued)

Fundraising

Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. Although we do not undertake widespread fundraising from the general public, the legislation defines fundraising as “soliciting or otherwise procuring money or other property for charitable purposes.” Such amounts received are presented in our accounts as “voluntary income” and include legacies and grants when they are received.

In relation to the above we can confirm that all solicitations are managed internally, without the involvement of commercial participators, professional fundraisers or third parties. The day to day management of all income generation is delegated to the Leadership Team, who are accountable to the Board of Trustees.

The charity is not bound by any undertaking to a regulatory scheme and the charity does not consider it necessary to comply with any voluntary code of practice. We have received no complaints in relation to fundraising activities. Our terms of employment require staff to behave reasonable at all times. As we do not approach individuals for funds we do not particularise this to fundraising activities nor do we consider it necessary to design specific procedures to monitor such activities.

III. FINANCIAL REVIEW

In the year to 31 March 2023, Real Life Options Group turnover increased by 7.7% from £45.1 million to £48.6 million. This increase reflects an increase in services across Real Life Options with a decrease in subsidiary income. Real Life Options turnover increased by 13.2% from £39.2 million to £44.5 million and its subsidiaries decreased from £5.8 million to £4.1 million.

Net movement in funds for the group increased by 159.9% from £332,000 to £863,000 reflecting the increase in activity throughout England and Scotland. Fee levels have increased largely in response to the increase in the National Minimum Wage and Scottish Living Wage, although not all local authorities have responded promptly or comprehensively to the increase in the rates that we are obliged to pay.

We continue to discuss the need for fee rates that ensure quality provision and sustainable services for the people we support. The most significant challenge during the year has been to recruit and retain staff, because of competition for staff from the hospitality and retail sectors, this has been particularly challenging in the homecare business where this has hampered growth plans. Recruitment and Retention of staff is a key focus currently and staff remuneration is being managed to ensure staff are attracted and retained so that the business is sustainable into the future. We continue to work with commissioners in both England and Scotland to ensure that we are in a position to continue to provide effective and economic services.

We continue to grow Outreach services organically and we opened a new day service opening in Sheffield in September 2022.

The two new person-centred and modern supported living services provided in partnership with a social builder and the local authority in Derbyshire opened in November 2022 and January 2023.

Statement of Financial Position

Debt collection remains strong and the relationship with local authorities that commission our services ensures strong cashflow. Our relationship with our long term lenders remains strong and through the year debt has been repaid in accordance with the agreed schedules. Short term cashflow requirements have been met using arrangements already in place with RBS Invoice Financing.

There has been no substantial investment in property.

18

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

III. FINANCIAL REVIEW (continued)

Taxation

The activities of the charity fall within the exemptions conferred by sections 505 and 506 of the Income and Corporation Taxes Act 1988. Consequently, no corporation tax will be provided for in the financial statements for the charity in this and future years.

The group’s trading subsidiaries are subject to corporation tax where retained reserves are insufficient for all surpluses to be paid to the charity by way of gift aid. In the current year there has not been a declaration of any donations that will qualify for gift aid relief to the parent charity, but the accounts have been prepared on the assumption that the gift will be made and corporation tax relief granted.

Fund Accounting

At the end of the year the Group held total reserves of £8.6m (2022 - £7.8m).

The Group's funds are held for a variety of purposes, to ensure that the organisation can operate as a going concern in the future and also fulfil its legal obligations. The funds are summarised as follows:

The funds policy review still recognises the need for free reserves to cover short-term risk. The Board of Trustees considers it prudent that unrestricted reserves should be sufficient to manage and changes in the funding from local authorities in respect of fee rates and losses of contracts. RLO has many contracts with c. 43 local authorities which protects the organization from any significant pressure of the loss of contract from one or two of these local authorities.

The Board have agreed that reserves should be kept at a minimum of 10% of turnover or £5m.

The reserves are sufficient to meet the requirements of the reserves policy.

The Board of Trustees has reviewed the reserves policy in light of changing risks presented to the organisation and will formally review the reserves policy and levels maintained on an annual basis. The Trustees recognise that investment in trading subsidiaries and operational assets ties up funds that would otherwise be available for spending but have concluded that funds do not need to be set aside for a specific purpose at this time and that additional funds are not required to meet future commitments.

The Charity purchases Directors and Officers Liability insurance. The cost of the premium in the year was £1,400 (2022 £1,400).

19

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023

III. FINANCIAL REVIEW (continued)

Going concern

The Trustees have determined that the level of reserves held, the cash available to the Charity and its subsidiaries to the 31 March 2024 will ensure there is sufficient funding to support the existing commitments. During the year and following a business review by the Groups lending bank, the need to comply with loan covenants was removed.

The Trustees have reviewed forecasts to 31 December 2024, and it was concluded that the Charity will be able to meet its liabilities as they fall due over the period.

During 2022-23 a review of RLO’ s liquidity was undertaken by RLO Group’s lending bank. This was initiated following a restructure of the finance team and change to the sales invoicing process which resulted in a temporary need for additional working capital. The assessment has been concluded and the Group has been returned to standard banking arrangements.

Sensitivity analysis has been undertaken for a number of scenarios including the impact of being unable to

secure fee uplifts from Local Authorities.

The Trustees expect that Real Life Options has sufficient resources to enable it to continue to adopt the going concern basis in preparing the financial statements. These financial statements do not include any adjustment that would arise if the going concern basis of preparation was not considered appropriate.

As a result of the above, the trustees, after reviewing cashflow forecasts prepared for a 12 month period after the date these financial statements are signed, do not believe that there are any material uncertainties, which cast significant doubt on the ability of the Trust to continue as a going concern.

IV. PLANS FOR THE FUTURE

During this year Real Life Options worked on interpreting the strategic plan to ensure that it is focussed on supporting people throughout their lives and ensuring that RLO Group focusses on local communities across the UK to build on the organisation's ability to deliver charitable outcomes.

In future Real Life Options will consider the development of services in home care, supported living and mixed models of partnership delivery.

Supported Living for People with Learning Disabilities is a core segment of Real Life Options’ portfolio and provides opportunities for innovation and viability.

Real Life Options is aware that place-based commissioning is likely to generate other forms of support going forwards and that whole life planning where care and support is delivered through collaboration is part of the journey going forwards.

The forward plan is influenced by changes resulting from the current pandemic and external policies.

ON BEHALF OF THE BOARD

D Wilkin

Director and Chair of the Trustees

20/12/2023

20

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee) REAL LIFE OPTIONS

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present their report with the audited financial statements of the charitable company and the group for the year ended 31 March 2023.

Principal Activities and Future Developments

The principal activities of the group are set out in the Group Strategic Report. The group continues to deliver public services.

Results

The group surplus for the year, after taxation amounted to £863,000 (2022: £332,000).

Directors

The Directors who served during the year were:

D I Sargent D Wilkin R A Hendry C A Maltby C R McCorkindale

Employees

Local arrangements have continued for managers to meet employees and their representatives to discuss matters of mutual interest and concern including the provision of relevant information.

Employment of the disabled

The company recognises its responsibility for the employment, training, career development and promotion of disabled persons and gives full consideration of applications irrespective of an individual’s background. Every effort is made to continue to employ those who become disabled while working for the company.

Qualifying indemnity insurance

The Charity purchases Directors and Officers Liability insurance. The cost of the premium in the year was £1,400 (2022 £1,400).

Events after the reporting period

On 18 September 2023, Real Life Options contacted the Home Office in respect of an error relating to student visa holders who were found to working beyond their legally permissible hours, thereby violating immigration legislation. At present the risk to the organisation in terms of the level of penalties imposed cannot be accurately determined and therefore is not included in the financial statements. The maximum penalties would be £15,000 per employee a total of £585,000.

Disclosures included in the strategic report

Disclosures required under S416(4) of the Companies Act 2006 are commented upon in the Strategic Report in accordance with S414C(11) as the Directors consider them to be of strategic importance to the company.

21

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee) REAL LIFE OPTIONS

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

Statement as to disclosure of information to auditor

The trustees confirm that:

Auditor

The auditor, Grant Thornton UK LLP will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD

D Wilkin

Director and Chair of the Trustees

20/12/2023

22

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee) REAL LIFE OPTIONS

STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2023

The Trustees (who are the directors of Real Life Options for the purposes of Company Law) are responsible for preparing the Group Strategic Report, the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. 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 the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period.

.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and group’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Dr D I Sargent

Director

20/12/2023

23

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee) REAL LIFE OPTIONS

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF REAL LIFE OPTIONS FOR THE YEAR ENDED 31 MARCH 2023

Opinion

We have audited the financial statements of Real Life Options (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2023, which comprise the Group Charitable Company Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Charitable Company Cash Flow Statement, and notes to the financial statements, 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:

Basis for opinion

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. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We are responsible for concluding 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 parent charitable company and group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the parent charitable company or group to cease to continue as a going concern.

In our evaluation of the trustees’ conclusions, we considered the inherent risks associated with the parent charitable company’s and group’s business model including effects arising from macro-economic uncertainties, we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the group’s and parent charitable company’s financial resources or ability to continue operations over the going concern period.

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

24

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee) REAL LIFE OPTIONS

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF REAL LIFE OPTIONS FOR THE YEAR ENDED 31 MARCH 2023

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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is 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:

Matter on which we are required to report under the Companies Act 2006

In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified any material misstatements in the Strategic Report or the Directors’ Report included in the Annual Report.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement set out on page 23, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group 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 parent charitable company or to cease operations, or have no realistic alternative but to do so.

25

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee) REAL LIFE OPTIONS

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF REAL LIFE OPTIONS FOR THE YEAR ENDED 31 MARCH 2023

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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

26

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee) REAL LIFE OPTIONS

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF REAL LIFE OPTIONS FOR THE YEAR ENDED 31 MARCH 2023

 Understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation

 Knowledge of the industry in which the client operates

 Understanding of the legal and regulatory requirements specific to the entity

In assessing the potential risks of material misstatement, we obtained an understanding of:

 The entity's operations, including the nature of its revenue sources, products and services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement.

 The applicable statutory provisions

 The entity's control environment, including the policies and procedures implemented to comply with the requirements of its regulator

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members and trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006, Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members and 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 charitable company and its members and trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Edwards

Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Sheffield

Date: 20/12/2023

Grant Thornton UK LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

27

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating an income and Expenditure account)

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
Designated
Note
Funds
Funds
Funds
£'000
£'000
£'000
Incoming resources
Charitable activities
4
44,141
-
-
Donations
-
52
-
Trading activities:
Trading subsidiaries
income
4,091
-
-
Other income
274
-
-
_
_
_
Total incoming
resources
48,506
52
-
_
_
_
Resources expended
Trading expenditure:
Trading subsidiaries
expenditure
3,875
-
-
Charitable activities
43,799
15
6
_
_
_
Total resources
expended
5
47,674
15
6
_
_
_
Net income before
transfers and tax
832
37
(6)
UK Corporation tax
11
-
-
-
_
_
_
Net movement in
funds
832
37
(6)
_
_
_
Fund balances at
1 April 2022
27
7,556
24
201
_
_
_
Total fund balances
at 31 March 2023
27
8,388
61
195


 2023
Total
£'000
44,141
52
4,091
274
_
48,558
_
3,875
43,820
_
47,695
_
863
-
_
863
_
7,781
_
8,644
 2022
Total
£'000
39,203
27
5,808
40
_
45,078
_
5,078
39,661
_
44,739
_
339
(7)
_
332
_
7,449
_
7,781

The statement of financial activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities.

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

28

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating an income and Expenditure account)

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
Designated
Note
Funds
Funds
Funds
£'000
£'000
£'000
Incoming resources
Charitable activities
4
44,142
-
-
Donations
-
52
-
Other income
274
-
-
_
_
_
Total incoming resources
44,416
52
-
_
_
_
Resources expended
Charitable activities
43,489
15
6
_
_
_
Total resources expended
5
43,489
15
6
_
_
_
Net expenditure before gift
aid from subsidiaries and
transfers
927
37
(6)
Gift Aid from subsidiaries
685
-
-
_
_
_
Net movement in funds
before transfers
1,612
37
(6)
_
_
_
Net movement in funds
1,612
37
(6)
_
_
_
Fund balances at 1 April
2022
27
9,170
24
201
_
_
_
Total fund balances at
31 March 2023
27
10,782
61
195


 2023
Total
£'000
44,142
52
274
_
44,468
_
43,510
_
43,510
_
958
685
_
1,643
_
1,643
_
9,395
_
11,038
 2022
Total
£'000
39,203
27
40
_
39,270
_
39,265
_
39,265
_
5
996
_
1,001
_
1,001
_
8,394
_
9,395

The statement of financial activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities.

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

29

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

CONSOLIDATED AND CHARITY BALANCE SHEETS

Registered No 02699638

AS AT 31 MARCH 2023

Note
Fixed assets
Intangible assets
12
Tangible assets
13
Investments in Subsidiaries
14
Current assets
Stock
Debtors: amounts recoverable within
one year
15
Cash at bank and in hand
25
Creditors:
Amounts falling due within one year
16
Net current assets
Total assets less current liabilities
Creditors:
Amounts falling due after more than
one year
18
Provisions:
Deferred taxation
21
Net assets
28
Reserves
Unrestricted Funds
Restricted Funds
Designated Funds
Total Funds
27		 Group
2023
£'000
1,663
3,979
-
_
5,642
-
7,474
1,953
_
9,427
(5,789)
_
3,638
_
9,280
(631)
(5)
_
8,644
_
8,388
61
195
_
8,644
 2022
£'000
1,978
4,117
-
_
6,095
26
3,802
2,910
_
6,738
(4,081)
_
2,657
_
8,752
(966)
(5)
_
7,781
_
7,556
24
201
_
7,781
 Charity
2023
£'000
-
3,980
4,919
_
8,899
-
7,965
1,507
_
9,472
(6,701)
_
2,771
_
11,670
(632)
-
_
11,038
_
10,782
61
195
_
11,038
 2022
£'000
-
4,115
4,919
_
9,034
26
4,118
2,210
_
6,354
(5,026)
_
1,328
_
10,362
(967)
-
_
9,395
_
9,170
24
201
_
9,395

The financial statements were approved and authorised for issue by the Trustees on and signed on their 20/12/2023 behalf by:

D Wilkin

Chair of the Board

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

30

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS

AS AT 31 MARCH 2023

Cash flows from operating activities
Surplus for the financial year
Adjustments for:
Amortisation of intangible assets
12
Depreciation of fixed assets
13
Impairment of goodwill
12
Loss on disposal of fixed asset
Net interest payable
Taxation
11
Decrease/(increase) in stock
(Increase)/decrease in debtors
15
Increase/(decrease) in creditors
16
Cash generated from operations
Interest paid
Taxation paid
Net cash (used in)/generated from operating activities
Cash flows from investing activities
Acquisition of subsidiary
Purchases of tangible fixed assets
13
Purchase of intangible fixed assets
12
Disposal of fixed assets
Net cash used in investing activities
Cash flows from financing activities
Receipt of new bank loans
Bank loans repaid
Deferred consideration paid
Net cash used in financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
25
Cash and cash equivalents comprise:
Cash at bank and in hand
25,26		 2023
£'000
863
324
159
-
-
54
-
26
(3,672)
1,706
_
(540)
(52)
-
_
(592)
_
-
(30)
(9)
9
_
(30)
_
-
(335)
-
_
(335)
_
(957)
2,910
_
1,953
_
1,953
 2022
£'000
332
395
145
46
3
28
7
(26)
297
(212)
_
1,015
(28)
(1)
_
986
_
-
(224)
(32)
-
_
(256)
_
425
(458)
(212)
_
(245)
_
485
2,425
_
2,910
_
2,910

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

31

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 General information

The charity is a private charitable company limited by guarantee incorporated in England and Wales and has no share capital. The address of the registered office is given on the company information page and the nature of the group's operations and its principal activities are set out in the Trustees Report.

2 Accounting policies

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) (effective 1 January 2019) - Charities Statement of Recommended Practise (FRS 102), UK Generally Accepted Accounting Practice (UK GAAP) including the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Assets and Liabilities are recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The charity meets the definition of a public benefit entity under FRS 102.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The financial statements have been prepared in pounds sterling and rounded to the nearest thousand pounds.

Parent company disclosure exemptions

In preparing the separate financial statements of the charity, advantage has been taken of the following disclosure exemptions available in FRS 102:

The following principal accounting policies have been applied:

2.1. Basis of Consolidation

The consolidated financial statements present the results of Real Life Options and its subsidiaries ("the Group") as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of financial affairs from the date on which control is obtained. They are deconsolidated from the date control ceases.

32

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2 Accounting policies (continued)

2.2. Going Concern

The Trustees have determined that the level of reserves held, the cash available to the Charity and its subsidiaries to the 31 December 2024 will ensure there is sufficient funding to support the existing commitments. During the year and following a business review by the Groups lending bank, the need to comply with loan covenants was removed.

The Trustees have reviewed forecasts to 31 December 2024, and it was concluded that the Charity will be able to meet its liabilities as they fall due over the period.

During 2022-23 a review of RLO’ s liquidity was undertaken by RLO Group’s lending bank. This was initiated following a restructure of the finance team and change to the sales invoicing process which resulted in a temporary need for additional working capital. The assessment has been concluded and the Group has been returned to standard banking arrangements.

Sensitivity analysis has been undertaken for a number of scenarios including the impact of being unable to secure fee uplifts from Local Authorities.

The Trustees expect that Real Life Options has sufficient resources to enable it to continue to adopt the going concern basis in preparing the financial statements. These financial statements do not include any adjustment that would arise if the going concern basis of preparation was not considered appropriate.

As a result of the above, the trustees, after reviewing cashflow forecasts prepared for a 12 month period after the date these financial statements are signed, do not believe that there are any material uncertainties, which cast significant doubt on the ability of the Trust to continue as a going concern.

2.3. Income

All income is included in the Statement of Financial Activities ('SOFA') when:

Income may be accrued if the work has been completed and the service under the contract delivered. Income may be deferred if the service has not been provided even if the value has been invoiced and payment received.

Grants are received from bodies within Local Government and the National Health Service and are specific to the charitable activities.

All grants, donations, rental income and contractual payments are included on a receivable basis.

For legacies, income will be recognised if the amount can be measured and there is a clear indication that a distribution will be made from the estate.

Donated professional services and donated facilities will be recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. The economic benefit will be the amount the charity would have been willing to pay to obtain those services or facilities on the open market; a corresponding amount will be recognised in expenditure in the period of receipt.

In accordance with the Charities SORP (FRS 102), the contribution of volunteers’ general time to the Charity will not be recognised in the financial reports but will be referred to in the trustees’ annual report.

33

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2 Accounting policies (continued)

2.3. Income (continued)

Deferred capital grants are treated as deferred income in compliance current GAAP and are credited to the income and expenditure account over the expected useful economic life of the relevant fixed asset on a basis consistent with the depreciation policy.

Other grants are recognised as and when conditions for their release are fulfilled.

2.4. Expenditure

Expenditure is included in the statement of financial activities on an accruals basis, inclusive of any VAT which cannot be recovered.

Charitable expenditure and support costs comprise direct expenditure including direct staff costs attributable to the activity. The charity has one type of activity – support services. All support costs are allocated to this activity. Governance costs are those incurred in connection with the management of the Charity's assets, organisational administration and costs regarding compliance with constitutional and statutory requirements.

Trading expenditure comprises the costs of the trading subsidiaries, and is recognised on an accruals basis.

2.5. Fund Accounting

Unrestricted funds, which have not been designated for other purposes, are available for use at the discretion of the Trustees, in furtherance of the general objectives of the Charity.

Designated funds are transferred from general unrestricted funds for specific purposes, based on available cost information. These amounts are monitored annually and may be amended or re-designated by the Board.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by conditions relating to the arrangements leading to the receipt of the money; conditions under which money has been donated; or which have been raised by the Charity for particular purposes. If there is an obligation to use resources generated for a specific purpose the income will be accounted for in a restricted fund. The costs of raising and administering such funds will be charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

2.6. Intangible assets

Goodwill

At the date of acquisition, goodwill will initially be measured as the excess of the cost of the business combination over the fair value of the net amount of the identifiable assets, liabilities and contingent liabilities.

After initial recognition, the goodwill shall be measured as cost less accumulated amortisation and accumulated impairment losses. An estimate of the useful life of the Goodwill will be made at the time of acquisition and the Goodwill be amortised on a systematic basis over that life. The useful life of the goodwill will not normally be more than 10 years.

Using the definitions in FRS 102, as part of the annual impairment review process, the value of goodwill will be compared with the recoverable amount of the asset. In the event that the value of the goodwill is found to be less than the recoverable amount, the value of the impairment will be recognised in the accounts.

34

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2 Accounting policies (continued)

2.6. Intangible assets (continued)

Software

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. Software is amortised over a period of 3 years.

2.7. Tangible Assets

Tangible fixed assets costing more than £1,000 are capitalised and valued at historical cost along with any incidental expenses of acquisition.

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost less estimated residual value on a straight line or reducing balance basis over the following ranges of expected useful economic lives:

Freehold land & buildings - 50 years straight line Leasehold improvements - 10 years straight line or the length of the lease if shorter Fixtures and fittings - 3-10 years straight line Computer equipment - 2-4 years straight line Motor vehicles - 25% reducing balance Office equipment - 3-4 years straight line

Freehold Land will not be depreciated.

2.8. Accounting for Investments in Subsidiaries

Investments in subsidiaries are stated at cost less any assessed impairment in the asset.

2.9. Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.10. Financial Instruments

Real Life Options and its group entities only enter into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

Debt instruments that are payable or receivable within one year, typically trade payables or receivables are measured, initially and subsequently, at the undiscounted amounts of the cash or other consideration expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently amortised at cost.

35

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2 Accounting policies (continued)

2.10. Financial Instruments (continued)

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

2.11. Current and Deferred Taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in the statement of financial affairs.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the UK.

Deferred balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except:

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of the liabilities acquired and the amount that will be assessed for tax.

Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

36

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2 Accounting policies (continued)

2.12. Pension

Retirement benefits to the majority of employees are provided by the Group's defined contribution scheme. Contributions payable to the Group's pension scheme are charged to the profit and loss account in the period to which they relate.

A small, and reducing, number of employees are members of the NHS pension scheme. This is a defined benefit scheme and the assets are held separately from those of the Group. The NHS Pension scheme is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective benefit method. The NHS pension scheme is a multi-employer scheme.

The Group will recognise in the accounts its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis if it is possible and economical to identify its share of the cost. If it is not possible or economical to identify the Group’s share of the underlying assets and liabilities the NHS pension scheme will be treated as a defined contribution scheme and the Group’s contributions will be recognised as they are paid each year.

2.13. Operating Leases

Income and costs associated with operating leases are either credited or charged to the SOFA on an accruals basis in accordance with the contracts in force during the year.

The cost of the lease payments over the contracted period, after allowing for any lease incentives, will be apportioned equally over the life of the lease.

2.14. Gift aid distribution

The payment of Gift Aid is subject to the reserves policy of the gifting entity, and the approval of the charity.

Gift Aid is recognised on the accruals basis in line with the deed of covenant.

3 Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements the directors have made the following judgements:

The Directors have reviewed the carrying value of the Group’s assets, including goodwill, to determine whether there are any indicators of impairment. Factors taken into account include the economic viability and expected future financial performance of the assets.

Other key sources of estimation uncertainty

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of assets and residual values are assessed on acquisition and may be revised if operating circumstances change significantly.

The Directors have made assumptions about the potential value and likelihood of success of claims against the company for unpaid wages from current and former employees.

4 Analysis of Income from Charitable Activities

All activity relates to the provision of care services in the UK.

All income is unrestricted other than restricted donations of £52k (£27k).

37

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

5 Analysis of resources expended

The charity allocates its support costs as shown in the table below. Regional Office costs are allocated to the relevant region. Support Service costs are apportioned between the regions based on the percentage of income per region.

GROUP 2023
Trading subsidiaries
expenditure
Charitable activities
GROUP 2022
Trading subsidiaries
expenditure
Charitable activities		 Human
Total
Governance
costs
Resources
& Training
£'000
£'000
£'000
3,875
-
3,288
43,820
219
37,686
_
_
_
47,695
219
40,974
_
_
_
Human
Total
Governance
costs
Resources
& Training
£'000
£'000
£'000
5,078
-
4,444
39,661
143
34,297
_
_
_
44,739
143
38,741


 Property
Costs
Administration
and Finance
£'000
£'000
162
425
1,925
3,990
_
_
2,087
4,415
_
_
Property
Costs
Administration
and Finance
£'000
£'000
177
457
1,459
3,762
_
_
1,636
4,219

Total expenditure for the year for the group was £47,695k (2022: £44,739k) of which £15k (2022: £14k) was restricted, £6k (2022: £8k) was designated and £47,674k (2022: £44,717k) was unrestricted.

CHARITY 2023
Charitable activities
CHARITY 2022
Charitable activities		 Human
Total
Governance
costs
Resources
& Training
£'000
£'000
£'000
43,510
219
37,685
_
_
_
Human
Total
Governance
costs
Resources
& Training
£'000
£'000
£'000
39,265
143
34,300


 Property
Costs
Administration
and Finance
£'000
£'000
1,925
3,681
_
_
Property
Costs
Administration
and Finance
£'000
£'000
1,458
3,364

Total expenditure for the year for the charity was £43,510k (2022: £39,265k) of which £15k (2022: £14k) was restricted, £6k (2022: £8k) was designated and £43,489k (2022: £39,243k) was unrestricted.

38

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

6 Analysis of governance costs

Analysis of governance costs
Analysis of governance costs
Audit fees
Other financial services including
accountancy services
Other professional fees
Audit and Non Audit Services
Statutory audit of parent and
consolidated accounts
Statutory audit of subsidiary
companies
Tax Services
Other Services		 GROUP
2023
£'000
171
47
56
_
274
_
GROUP
2023
£'000
172
-
17
30
_
219
 2022
£'000
77
24
42
_
143
_
2022
£'000
38
39
12
12
_
101
 CHARITY
2023
£'000
171
47
56
_
274
_
CHARITY
2023
£'000
172
-
17
30
_
219
 2022
£'000
38
24
81
_
143
_
2022
£'000
38
-
12
12
_
62

Governance costs relate to the audit and other professional services in connection with governance of the charity. All other costs are allocated to charitable activities where they are incurred within the charity or trading subsidiaries expenditure where they are incurred in those subsidiaries.

All expenditure in the current and preceding year was unrestricted.

7 Net income

Net income is stated after charging:

Operating lease rentals:
- land & buildings
- equipment
Depreciation - owned assets
Loan interest
Amortisation of goodwill
Amortisation of software		 GROUP
2023
£'000
743
218
159
54
313
11
 2022
£'000
639
194
138
27
389
6
 CHARITY
2023
£'000
661
213
157
54
-
-
 2022
£'000
558
189
138
-
24
-

39

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

8 Staff costs

Wages and salaries
Social security costs
Other pension costs - contributions to
defined contribution schemes		 GROUP
2023
£'000
36,231
3,215
690
_
40,136
 2022
£'000
34,218
3,128
682
_
38,028
 CHARITY
2023
£'000
33,245
2,965
641
_
36,851
 2022
£'000
30,157
2,810
621
_
33,588

The figures shown above represent all staff costs for the Group and Company including operational staff costs, as shown in Note 5, together with costs relating to staff who work in support services and regional offices, which are incorporated within the support cost figures in note 5.

The number of employees whose emoluments as defined for taxation purposes amounted to over £60,000 in the year was as follows:

£60,001 - £70,000
£70,001 - £80,000
£80,000- £90,000
£90,001- £100,000
£100,001-£110,000
£110,001-£120,000
£120,001-£130,000
£130,001-£140,000
£140,001-£150,000
£150,001-£160,000
£160,001-£170,000
£170,000-£180,000
£180,000-£190,000
£200,000-£210,000
£260,000-£270,000		 GROUP
2023
Number
8
1
1
1
-
2
-
-
-
-
-
1
-
1
1
_
16
 2022
Number
5
1
2
-
1
-
-
1
-
1
1
1
1
-
-
_
14
 CHARITY
2023
Number
7
2
-
1
-
2
-
-
-
-
-
1
-
1
1
_
15
 2022
Number
5
1
2
-
1
-
-
1
-
1
1
1
1
_
14

All employees earning more than £60,000 contributed to a personal pension scheme. The Charity contributed £47,966 (2022 - £43,605) on their behalf.

The number of full and part-time employees, calculated on a monthly average basis, was:

Staff GROUP
2023
Number
1,824
 2022
Number
1,853
 CHARITY
2023
Number
1,587
 2022
Number
1,539

Redundancy costs of £164,524 (2022 - £41,306) were payable of which £Nil (2022 - £ Nil) was unpaid at year end. This related to compensation for loss of office for 6 (2022 – 6) individuals.

40

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

9 Directors' Remuneration

Directors' emoluments
Company contributions to defined contribution pension scheme		 GROUP AND CHARITY
2023
2022
£'000
£'000
619
769
59
26
__
_
678
795
_
__

There were 4 directors in the group's defined contribution pension scheme (2022 - 5). None of the directors accrued benefits under a defined benefit pension scheme during the year (2022 - none).

Other than the directors, there are not considered to be any other employees who are key management personnel.

Emoluments of the highest paid director were £278k (2022 - £187k). Company pension contributions of £2k (2022 - £4k) were made to a defined contribution pension scheme on their behalf.

Under the Articles of Association the charity is allowed to remunerate non-executive trustees for their duties.

In the year ended 31 March 2023, or the year ended 31 March 2022, no non-executive trustees were remunerated.

Trustees are reimbursed for expenditure incurred in attending trustees meetings or visiting the Group’s home and facilities in their roles as Trustees. In the year to 31 March 2023, costs totalling £642 (2022 - £436) were reimbursed to no (2022 - None) Non-Executive Trustees.

During the year ended 31 March 2023, there was an amount of £128,546 (2022 - £41,306) paid to directors as compensation for loss of office. Of this £Nil (2022 - £Nil) was unpaid at the year end.

10 Indemnity insurance

The Charity purchases Directors and Officers Liability insurance. The cost of the premium in the year was £1,400 (2022 - £1,400).

41

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

11 Taxation

Corporation Tax
Charge for year
Adjustment in respect of prior periods
Total
Deferred Tax
Origination and reversal of timing differences
Adjustments in respect of prior periods
Change to tax rates
Total tax credit for the year
Net incoming resources before other recognised gains, losses and
transfers
Profit on ordinary activities multiplied by the standard rate of corporation
tax in the UK of 19% (2022 - 19%)
Income not subject to tax
Impairment of goodwill
Expenses not deductible for tax purposes
Adjustments in respect of prior periods
Remeasurement of deferred tax for changes in tax rates
Deferred tax not recognised
Other adjustments
Total tax credit for the year		 GROUP
2023
£'000
-
-
_
-
-
-
-
_
-
_
-
_
863
164
(8,449)
-
8,285
-
-
-
-
_
-
 2022
£'000
-
1
_
1
167
(122)
(39)
_
6
_
7
_
339
64
(7,461)
-
7,536
(122)
42
(53)
1
_
7

Factors that may affect future tax charges

An increase in the future main corporation tax rate to 25% from 1 April 2023, from the previously enacted 19%, was announced at the budget on 3 March 2021, and substantively enacted on 24 May 2021. The deferred tax balance at the year end has been calculated based on the rate substantively enacted at the time the deferred tax is expected to unwind.

42

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

12 Intangible assets
Group
Goodwill Software Total
£'000 £'000 £'000
Cost
At 1 April 2022 5,925 29 5,954
Additions - 9 9
_ _ _
At 31 March 2023 5,925 38 5,963
_ _ _
Amortisation
At 1 April 2022 3,970 6 3,976
Amortisation in the year 313 11 324
_ _ _
At 31 March 2023 4,283 17 4,300
_ _ _
Net book value
At 31 March 2023 1,642 21 1,663
_ _ _
At 1 April 2022 1,955
_		 23
_		 1,978
_
Charity
Goodwill
£'000
Cost
At 1 April 2022 and 31 March 2023 474
Amortisation
At 1 April 2022 and 31 March 2023 474
_
Net book value
At 1 April 2022 and 31 March 2023 -
_

43

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

13
Tangible fixed assets
Freehold
land and
Leasehold
buildings
improvements
GROUP
£'000
£'000
Cost
At 1 April 2022
4,275
367
Additions
-
10
Disposals
-
-
_
_
At 31 March 2023
4,275
377
_
_
Depreciation
At 1 April 2022
504
153
Provided during the year
60
44
Disposals
-
-
_
_
At 31 March 2023
564
197
_
_
Net Book Value
At 31 March 2023
3,711
180
_
_
At 31 March 2022
3,771
214

 Fixtures
and
fittings
£'000
204
-
-
_
204
_
190
14
-
_
204
_
-
_
14
 Motor
Office
Computer
vehicles
equipment
equipment
£'000
£'000
£'000
68
1
1,357
14
-
6
-
(1)
(8)
_
_
_
82
-
1,355
_
_
_
10
-
1,298
16
-
25
-
-
-
_
_
_
26
-
1,323
_
_
_
56
-
32
_
_
_
58
1
59


 Total
£'000
6,272
30
(9)
_
6,293
_
2,155
159
-
_
2,314
_
3,979
_
4,117

44

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

13 Tangible fixed assets (continued)

Freehold
land and
Leasehold
Fixtures and
buildings
improvements
fittings
CHARITY
£'000
£'000
£'000
At 1 April 2022
4,275
367
233
Additions
-
10
-
Disposals
-
-
-
_
_
_
At 31 March 2023
4,275
377
233
_
_
_
Depreciation
At 1 April 2022
504
153
209
Provided during the year
60
44
15
Disposals
-
-
-
_
_
_
At 31 March 2023
564
197
224
_
_
_
Net book value
At 31 March 2023
3,711
180
9
_
_
_
At 31 March 2022
3,771
214
24


 Motor
vehicles
Computer
£'000
£'000
68
1,309
14
6
-
(8)
_
_
82
1,307
_
_
10
1,261
16
22
-
-
_
_
26
1,283
_
_
56
24
_
_
58
48

 Total
£'000
6,252
30
(8)
_
6,274
_
2,137
157
-
_
2,294
_
3,980
_
4,115

45

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

14 Investments

Cost and net book value as at 1 April 2022 Movement in value of investments

Cost and net book value as at 31 March 2023

----- Start of picture text -----
CHARITY
2023 2022
£'000 £'000
4,919 4,916
- 3
_ _
4,919 4,919
_ _
----- End of picture text -----

Subsidiary Control
%		 Co Number Registered office
1st Home Care Ltd 100 SC272838 14B Dickson Street, Elgin Industrial
Estate, Dunfermline, Fife, KY12 7SN
Orchard Care Services Limited 100 05767436 David Wandless House, A1 Business
Park, Knottingley Road, Knottingley,
WF11 0BU
Lowland Care Services Limited 100 SC236443 14B Dickson Street, Elgin Industrial
Estate, Dunfermline, Fife, KY12 7SN
Alpha Homecare (Scotland) Limited 100 SC263919 14B Dickson Street, Elgin Industrial
Estate, Dunfermline, Fife, KY12 7SN
RLO Orchard Care Limited 100 08164674 David Wandless House, A1 Business
Park, Knottingley Road, Knottingley,
WF11 0BU
Senior Service (Edinburgh) Limited* 100 SC312050 14B Dickson Street, Elgin Industrial
Estate, Dunfermline, Fife, KY12 7SN
Real Life Options (Cymru) Limited 100 08165205 David Wandless House, A1 Business
Park, Knottingley Road, Knottingley,
WF11 0BU
Montana Home Care Ltd. 100 SC267110 88 Grahams Road, Falkirk, Stirlingshire,
FK2 7DL
Affinity Homecare Shrewsbury 100 09508514 Suite D, Global House Sitka Drive,
Limited Shrewsbury Busienss Park, Shrewsbury,
SY2 6LG

All subsidiaries are involved in the provision of care services.

Of the above named subsidiaries only Affinity Homecare Shrewsbury Limited, 1st Home Care Ltd and Montana Home Care Ltd are considered to be material to the operations of the group.

46

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

14 Investments (continued)

The following subsidiary Companies were incorporated during a previous financial year but were dormant. Each Company has 2 shares with an aggregate nominal values of £2.

They have been excluded from consolidation by virtue of of s394A of Companies Act 2006.

Subsidiary Control
%		 Co Number Registered office
Real Life Options West Yorkshire 100 13082099 David Wandless House A1 Business
Limited park Knottingley Road Knottingley WF11
0BU
Real Life Options Warwickshire 100 13082242 David Wandless House A1 Business
Limited park Knottingley Road Knottingley WF11
0BU
Real Life Options Tyne & Wear 100 13082119 David Wandless House A1 Business
Limited park Knottingley Road Knottingley WF11
0BU
Real Life Options Staffordshire 100 13082096 David Wandless House A1 Business
Limited park Knottingley Road Knottingley WF11
0BU
Real Life Options Derbyshire Limited 100 13082113 David Wandless House A1 Business
park Knottingley Road Knottingley WF11
0BU
Real Life Options County Durham 100 13082447 David Wandless House A1 Business
Limited park Knottingley Road Knottingley WF11
0BU
Real Life Options Cheshire Limited 100 13082164 David Wandless House A1 Business
park Knottingley Road Knottingley WF11
0BU
Real Life Options Angus Limited 100 13082200 David Wandless House A1 Business
park Knottingley Road Knottingley WF11
0BU
Real Life Options Aberdeenshire 100 13082153 David Wandless House A1 Business
Limited park Knottingley Road Knottingley WF11
0BU
Real Life Options Enterprise Ltd 100 13071404 David Wandless House A1 Business
park Knottingley Road Knottingley WF11
0BU
Real Life Options Innovation Ltd 100 13055357 David Wandless House A1 Business
park Knottingley Road Knottingley WF11
0BU
Real Life Options Services Ltd 100 13055350 David Wandless House A1 Business
park Knottingley Road Knottingley WF11
0BU
13055370 Ltd 100 13055370 David Wandless House A1 Business
park Knottingley Road Knottingley WF11
0BU

47

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

14 Investments (continued)

The income and expenditure for the year ended 31 March 2023 was as follows:-

1st Home Care 1st Home Care Montana Home Care Affinity Home Care Affinity Home Care
Year ended Year ended Year ended Year ended Year ended Year ended
31 March 31 March 31 March 31 March 31 March 31 March
2023 2022 2023 2022 2023 2022
£'000 £'000 £'000 £'000 £'000 £'000
Turnover 2,889 3,871 566 929 637 1,007
Cost of sales (2,382) (3,032) (458) (692) - -
_ _ _ _ _ _
Gross profit 507 839 108 237 637 1,007
Administrative
expenses (407) (447) (88) (128) (541) (815)
_ _ _ _ _ _
Operating profit 100 392 20 109 96 192
Interest receivable
and similar income - - - - - -
_ _ _ _ _ _
Profit on ordinary
activities before tax 100 392 20 109 96 192
Taxation - (5) - - - -
_ _ _ _ _ _
Profit after tax 100 387 20 109 96 192
_ _ _ _ _ _
The aggregate of the assets liabilities and funds was:
As
restated
As at As at As at As at As at As at
2023 2022 2023 2022 2023 2022
£'000 £'000 £'000 £'000 £'000 £'000
Assets 1,583 1,901 49 149 201 318
Liabilities (211) (246) (16) (26) (32) (53)
_ _ _ _ _ _
Reserves 1,372 1,655 33 123 169 265
_ _ _ _ _ _

48

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

15 Debtors: amounts due within one year

Trade debtors
Amounts due from subsidiary
undertakings
Other debtors
Prepayments and accrued income
Deferred tax asset
Total		 GROUP
2023
£'000
6,447
-
69
957
1
_
7,474
 2022
£'000
2,809
-
85
908
-
_
3,802
 CHARITY
2023
£'000
6,098
929
65
873
-
_
7,965
 2022
£'000
2,433
937
84
664
-
_
4,118

The impairment loss recognised in the Group's Statement of Financial Activities for the period in respect of bad and doubtful trade debtors was £33,029 (2022 - £Nil). The impairment loss recognised in the charity's Statement of Financial Activities for the period in respect of bad and doubtful trade debtors was £33,029 (2022 - £Nil).

Amounts due from subsidiary undertakings are interest free and due on demand.

16 Creditors: amounts falling due within one year

Bank loans and overdrafts
Trade creditors
Other taxes and social security
Accruals and deferred income
Other creditors
Amounts due to subsidiary
undertakings		 GROUP
2023
£'000
391
1,887
722
961
1,828
-
_
5,789
 2022
£'000
389
549
702
1,087
1,354
-
_
4,081
 CHARITY
2023
£'000
391
1,854
683
883
1,907
983
_
6,701
 2022
£'000
389
523
652
962
1,421
1,079
_
5,026

Amounts due to subsidiary undertakings are interest free and due on demand.

For a number of service users, the charity is an appointee for the purposes of benefit claims with the Department for Work and Pensions. The charity claims benefits on behalf of the service users and manages bank accounts opened specifically for the purpose on behalf of the claimant. In addition, the charity works with service users in supported living by managing shared resources in bank accounts. The total amount of money controlled by the company under these arrangements is £2,358k (2022 - £2,185k). These are not included within the funds of the group.

49

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

17 Deferred income

Balance at 1 April
Amount released to income
Amount deferred in the period
Balance at 31 March		 GROUP
2023
£'000
767
(767)
703
_
703
 2022
£'000
785
(785)
767
_
767
 CHARITY
2023
£'000
767
(767)
704
_
704
 2022
£'000
785
(785)
767
_
767

Deferred income relates to the provision of care services invoiced in advance.

18 Creditors : amounts falling due in more than one year

Bank loans
19
Bank loans
Repayments fall due as follows:
Within one year
In the second to fifth year inclusive
After 5 years
Total loans and overdrafts		 GROUP
2023
£'000
631
_
GROUP
2023
£'000
391
537
94
_
1,022
 2022
£'000
966
_
2022
£'000
389
814
152
_
1,355
 CHARITY
2023
£'000
632
_
CHARITY
2023
£'000
391
537
95
_
1,023
 2022
£'000
967
_
2022
£'000
389
814
153
_
1,356

The bank loans are secured by specific charges over the Group’s properties and floating charges on all of the Group’s assets and are repayable at varying rates of interest.

20 Financial instruments

Financial assets
Financial assets that are debt instruments measured at amortised cost
Financial liabilities
Financial liabilities measured at amortised cost		 GROUP
2023
2022
£'000
£'000
9,109
5,804
_
_
4,994
3,257

Financial assets measured at amortised cost comprise cash, trade and other debtors and accrued income.

Financial liabilities measured at amortised cost comprise bank loans, trade and other creditors and accruals.

50

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

21 Deferred taxation

At 1 April 2022
Charged in the year
At 31 March 2023
The deferred taxation (creditor)/debtor is made up as follows:
Short Term Timing Differences		 GROUP
2023
£'000
(5)
-
_
(5)
_
GROUP
2023
£'000
(5)
 2022
£'000
1
(6)
_
(5)
_
2022
£'000
(5)

22 Other financial commitments

At 31 March 2023 the group had commitments under non-cancellable operating leases as follows:

Expiry date:
Within one year
Between two and five years
In more than 5 years
Expiry date:
Within one year
Between two and five years
In more than 5 years		 GROUP
Land and buildings
2023
2022
£'000
£'000
541
613
124
45
44
-
_
_
709
658
_
_
CHARITY
Land and buildings
2023
2022
£'000
£'000
503
556
79
10
44
-
_
_
626
566

 GROUP
Equipment
2023
£'000
198
145
50
_
393
_
CHARITY
Equipment
2023
£'000
196
145
50
_
391
 2022
£'000
139
111
17
_
267
_
2022
£'000
135
109
17
_
261

51

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

23 Pension scheme obligations - Defined Contribution Schemes

Past and present employees are covered by the provisions of the two NHS Pension Schemes. Details of the benefits payable and rules of the Schemes can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions.

These schemes are unfunded, defined benefit schemes that cover NHS employers, General Practices and other bodies allowed under the direction of the Secretary of State in England and Wales. The schemes 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, the schemes are accounted for as though they were defined contribution schemes: the cost to the clinical commissioning group of participating in a scheme is taken as equal to the contributions payable to the scheme for the accounting period.

The schemes are subject to a full actuarial valuation every four years and an accounting valuation every year.

a) Accounting valuation

A valuation of scheme liability is carried out annually by the scheme actuary (currently the Government Actuary’s Department) as at the end of the reporting period. This utilises an actuarial assessment for the previous accounting period in conjunction with updated membership and financial data for the current reporting period, and is accepted as providing suitably robust figures for financial reporting purposes. The valuation of the scheme liability as at 31 March 2023, is based on valuation data as 31 March 2022, updated to 31 March 2023 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used.

The latest assessment of the liabilities of the scheme is contained in the report of the scheme actuary, which forms part of the annual NHS Pension Scheme Accounts. These accounts can be viewed on the NHS Pensions website and are published annually. Copies can also be obtained from The Stationery Office.

b) Full actuarial (funding) valuation

The purpose of this valuation is to assess the level of liability in respect of the benefits due under the schemes (taking into account recent demographic experience), and to recommend contribution rates payable by employees and employers.

The last published actuarial valuation undertaken for the NHS Pension Scheme was completed for the year ending 31 March 2016. The Scheme Regulations allow for the level of contribution rates to be changed by the Secretary of State for Health, with the consent of HM Treasury, and consideration of the advice of the Scheme Actuary and employee and employer representatives as deemed appropriate.

The next actuarial valuation is due with an effective date of 31 March 2020 and is due to be completed later in 2023. Changes to employer contribution rates as a result of the 2020 valuation are expected to take effect from April 2024. The direction assumptions are published by HM Treasury which are used to complete the valuation calculations, from which the final valuation report can be signed off by the scheme actuary. This will consider the cost of the Scheme relative to the employer cost cap. There are provisions in the Public Service Pension Act 2013 to adjust member benefits or contribution rates if the cost of the Scheme changes by more than 2% of pay. Subject to this ‘employer cost cap’ assessment, any required revisions to member benefits or contribution rates will be determined by the Secretary of State for Health after consultation with the relevant stakeholders.

For 2022-23, employers’ contributions of £31,011 (2021-22: £46,841) were payable to the NHS Pension Scheme at the rate of 14.38% of pensionable pay. The scheme’s actuary reviews employer contributions, usually every four years and now based on HMT Valuation Directions, following a full scheme valuation. The latest review used data from 31 March 2016. These costs are included within creditors.

52

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

24 Related party transactions

During the year there were no sales or direct purchases between Group companies (see note 14). Recharges between Group companies have been made for expenses and other costs on behalf of related parties:

Cost incurred by On behalf of 2023 2022
£ £
Real Life Options 1st Home Care Ltd 91,838 147,436
Real Life Options Affinity Homecare Shrewsbury Limited 3,588 3,030
Real Life Options Montana Home Care Ltd 3,999 13,889
Real Life Options Real Life Options (Cymru) Limited 36 -
Real Life Options Lowland Care Services Limited 1,270 -
Real Life Options RLO Orchard Care Limited 7 -
1st Home Care Ltd Real Life Options 1,467 -
The intercompany debtor/(creditor) at year end comprised:
2023 2022
£ £
1st Home Care Ltd 778,822 864,852
Affinity Homecare Shrewsbury Limited 129,506 133,094
Montana Home Care Ltd (5,751) (13,889)
Alpha Homecare (Scotland) Limited (31,675) (31,676)
Senior Service (Edinburgh) Limited (101,677) (101,677)
Real Life Options (Cymru) Limited (270,098) (270,062)
Lowland Care Services Limited 75,153 76,423
RLO Orchard Care Limited (440,853) (440,853)
Orchard Care Services Limited (79,120) (79,120)

The intercompany debtor/(creditor) at year end comprised:

During the year, Real Life Options purchased services and assets amounting to £24,706 (2022 - £Nil) from Enable Unity CIC, a company in which Dr D Sargeant is a trustee. These services and assets were purchased on an arm’s length basis. Real Life Options had no amounts outstanding to or due from Enable Unity CIC at the 31 March 2023 (2022 - £Nil).

Transactions with Trustees are detailed in note 9.

25 Analysis of cash and cash equivalents

Short term deposits held GROUP
2023
£'000
1,953
 2022
£'000
2,910
 CHARITY
2023
£'000
1,507
 2022
£'000
2,210

All cash at bank is held in deposit accounts and is immediately liquid. The group holds no investments other than the shareholding of subsidiaries

26 Analysis of net debt

At 1 April
2022
Cash flows
£'000
£'000
Short term deposits held
2,910
(957)
Bank loans
(1,355)
387
_
_
1,555
(570)

 Interest
At 31 March
2023
£'000
£'000
-
1,953
(54)
(1,022)
_
_
(54)
931

53

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

27 Funds

Group
Restricted funds
Services Fund
Total restricted
funds
Unrestricted funds
Designated
General fund
Total unrestricted
funds
Total funds
Charity
Restricted funds
Services Fund
Total restricted
funds
Unrestricted funds
Designated fund
General fund
Total unrestricted
funds
Total funds		 At
1 April
2022
£'000
24
_
24
_
201
7,556
_
7,757
_
7,781
_
At
1 April
2022
£'000
24
_
24
_
201
9,170
_
9,371
_
9,395
 Gains,
At
Losses
31 March
Income
Expenditure
Transfers
and tax
2023
£'000
£'000
£'000
£'000
£'000
52
(15)
-
-
61
_
_
_
_
_
52
(15)
-
-
61
_
_
_
_
_
-
(6)
-
-
195
48,506
(47,674)
-
-
8,388
_
_
_
_
_
48,506
(47,680)
-
-
8,583
_
_
_
_
_
48,558
(47,695)
-
-
8,644
_
_
_
_
_
At
Gains and
31 March
Income
Expenditure
Transfers
losses
2023
£'000
£'000
£'000
£'000
£'000
52
(15)
-
-
61
_
_
_
_
_
52
(15)
-
-
61
_
_
_
_
_
-
(6)
-
-
195
45,101
(43,489)
-
-
10,782
_
_
_
_
_
45,101
(43,495)
-
-
10,977
_
_
_
_
_
45,153
(43,510)
-
-
11,038

A figure of £195k (2022 - £201k) has been designated within the unrestricted reserves for the community connection fund, these are funds are provided on behalf of the clients supported by the group.

The restricted funds are funds collected for specific services that are ring fenced for projects they have collected for.

54

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

27 Funds (continued)

Group
Restricted funds
Services Fund
Total restricted
funds
Unrestricted funds
Designated
General fund
Total unrestricted
funds
Total funds
Charity
Restricted funds
Services Fund
Total restricted
funds
Unrestricted funds
Designated fund
General fund
Total unrestricted
funds
Total funds		 At
1 April
2021
£'000
11
_
11
_
209
7,229
_
7,438
_
7,449
_
At
1 April
2021
£'000
11
_
11
_
209
8,174
_
8,383
_
8,394
 Gains,
At
Losses
31 March
Income
Expenditure
Transfers
and tax
2022
£'000
£'000
£'000
£'000
£'000
27
(14)
-
-
24
_
_
_
_
_
27
(14)
-
-
24
_
_
_
_
_
-
(8)
-
-
201
45,051
(44,717)
-
(7)
7,556
_
_
_
_
_
45,051
(44,725)
-
(7)
7,757
_
_
_
_
_
45,078
(44,739)
-
(7)
7,781
_
_
_
_
_
At
Gains and
31 March
Income
Expenditure
Transfers
losses
2022
£'000
£'000
£'000
£'000
£'000
27
(14)
-
-
24
_
_
_
_
_
27
(14)
-
-
24
_
_
_
_
_
-
(8)
-
-
201
40,239
(39,243)
-
-
9,170
_
_
_
_
_
40,239
(39,251)
-
-
9,371
_
_
_
_
_
40,266
(39,265)
-
-
9,395

55

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS (A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

28 Analysis of net assets

Group – current year

Intangible assets
Tangible assets
Current assets
Current liabilities
Non-current liabilities and provisions
Group – prior year
Intangible assets
Tangible assets
Current assets
Current liabilities
Non-current liabilities
Charity – current year
Tangible assets
Investments in Subsidiaries
Current assets
Current liabilities
Non-current liabilities		 General
fund
Designated
fund
Restricted
fund
Total funds
£000
£000
£000
£000
1,663
-
-
1,663
3,979
-
-
3,979
9,171
195
61
9,427
(5,789)
-
-
(5,789)
(636)
-
-
(636)
_
_
_
_
8,388
195
61
8,644
_
_
_
_
General
fund
Designated
fund
Restricted
fund
Total funds
1,978
-
-
1,978
4,117
-
-
4,117
6,513
201
24
6,738
(4,081)
-
-
(4,081)
(971)
-
-
(971)
_
_
_
_
7,556
201
24
7,781
_
_
_
_
General
fund
Designated
fund
Restricted
fund
Total funds
£000
£000
£000
£000
3,980
-
-
3,980
4,919
-
-
4,919
9,216
195
61
9,472
(6,701)
-
-
(6,701)
(632)
-
-
(632)
_
_
_
_
10,782
195
61
11,038

56

DocuSign Envelope ID: B226ED00-A7E3-4F7C-9E7F-C007D50F2420

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

28 Analysis of net assets (continued)

Charity – prior year

----- Start of picture text -----
|||||| |---|---|---|---|---| |General|Designated|Restricted| |fund|fund|fund|Total funds| |£000|£000|£000|£000| |Tangible assets|4,115|-|-|4,115| |Investments in Subsidiaries|4,919|-|-|4,919| |Current assets|6,129|201|24|6,354| |Current liabilities|(5,026)|-|-|(5,026)| |Non-current liabilities|(967)|-|-|(967)| |_|_|_|_| |9,170|201|24|9,395| |_|_|_|_|

----- End of picture text -----

29 Capital commitments

The company has the following capital expenditure contracted for at the year end:

----- Start of picture text -----
|||| |---|---|---| |GROUP & COMPANY| |2023|2022| |£'000|£'000| |Expenditure contracted for but not included in liabilities|-|6| |_|_|

----- End of picture text -----

30 Events after the reporting period

On 18 September 2023, Real Life Options contacted the Home Office in respect of an error relating to student vis holders who were found to working beyond their legally permissible hours, thereby violating immigration legislation. At present the risk to the organisation in terms of the level of penalties imposed cannot be accurately determined and therefore is not included in the financial statements. The maximum penalties would be £15,000 per employee a total of £585,000.

57