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← Real Life Options

2024-03-31-accounts

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

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 2024

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

Contents

Page
Reference and Administration Details 1
Group Strategic Report
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 10
IX. Achievements and Performance 11
X. Constitution 14
XI. Financial Review 19
XII. Plans for the Future 21
Trustees Report 22
Statement of Trustees’ Responsibilities 24
Independent Auditor’s Report 25
Financial Statements 29
Notes 33

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS (A company limited by guarantee)

REFERENCE AND ADMINISTRATION DETAILS FOR THE YEAR ENDED 31 MARCH 2024

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 Deputy Chief Executive J Trench Managing Director Real Life Options Enterprise V Simons (resigned 21 June 2023) Director of Finance and Resources K E Platts (resigned 31 January 2024)

Advisers: Independent Auditor Grant Thornton UK LLP 30 Finsbury Square London EC2A 1AG Bankers Natwest 135 Bishopsgate London EC2M 3UR

Legal

Weightmans No1 Whitehall Riverside Whitehall Road Leeds LS1 4BN

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Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

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 of 31st March 2024, 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.”

RLO Group improved workforce planning taking into account changing legislation regarding recruitment through a complete review of the People Journey programme and a reformed People team. This resulted in improved induction, training and skills development aligned to roles across the Group. Updated policies recognise the importance of workforce health and well-being and staff being paid at least the National Minimum Wage.

RLO Group business resources have been better aligned to organisational and operational requirements to further develop our analytical ability to drive continuous improvements and quality service delivery at all levels. The referral process was reviewed resulting in a more efficient system supporting appropriate new growth.

Once again, RLO Group worked hard to achieve full compliance with internal and external reporting requirements, utilising regulatory and legislative frameworks to benchmark and embed best practice. Decision making is making more effective use of data to monitor and manage areas of pressure and non-conformance.

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REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

II. OBJECTIVES AND ACTIVITIES (continued)

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

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

Our Vision

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

Our Purpose

To provide excellent social care and support.

Our Values

To 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 circa 45 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 2023/24, RLO continued to develop the strategy further using a purpose led approach. The external environment changed significantly over the year including increased payroll costs, challenges in recruitment and energy insecurity. In response, the RLO Board implemented a more efficient leadership structure with a greater focus on purpose led growth and less on new service development.

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REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

III. STRUCTURE

Real Life Options’ structure:

IV. VOLUNTEERS

Real Life Options’ volunteer strategy initiative has grown considerably since it was implemented in 2019. We reviewed our management of the initiative in 2022/23 and made the decision to continue with one Strategic Volunteer and Social Value Lead for the Group rather than two 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. The volunteer strategy is undergoing a refresh in line with other modernisation and transformation plans being implemented across the organisation during 2024/25.

The volunteers support people we support with leisure activities, and they also raise funds for local projects. Many of the people we support also volunteer in their own communities in charity shops and community centres.

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 to enhance existing services and activities.

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REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

V. PUBLIC BENEFIT

The Trustees confirm that they have complied with 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 customer-focused services with the aim of improving the quality of life of people by:

VI. SECTION 172 STATEMENT

This section provides the 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 Group’s employees and other stakeholders, including the impact of its activities on the various communities we serve, the environment and the Group’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 Group for its stakeholders in the long term. Whilst the importance of giving due consideration to our stakeholders is not new, we are continuing to explain in detail 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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REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

VI. SECTION 172 STATEMENT (continued)

The 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 with those with responsibility for interacting with the Group’s principal stakeholders.

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REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

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 281.24 tCO2e (prior year 263.80 tCO2e), resulting from the direct combustion of 1,467,873 kWh of fuel (prior year 1,422,791 kWh). Scope 2 indirect emissions (purchased electricity) for this fourth year of reporting are 100.96 tCO2e (prior year 107.67 tCO2e), resulting from the consumption of 487,547 kWh of electricity (prior year 556,767 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 179.71 tCO2e (prior year 133.10 tCO2e) resulting from the consumption of 791,648 kWh of energy (prior year 575,431 kWh).

Real Life Options’ operations have an intensity metric of 10.66 tCO2e/£m (prior year 10.39 tCO2e/£m) turnover for this reporting year.

Real Life Options is the 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 it exceeds 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 2023/24
Consumption
(kWh)		 FY 2022/23 Consumption
(kWh)
Scope 1 Total 1,467,873 1,422,792
Gaseous and other fuels(Scope 1) 1,230,423 1,338,039
Transportation (Scope 1) 237,450 84,753
Scope 2 Total 487,547 556,767
Grid-Supplied Electricity (Scope 2) 487,547 556,767
Scope 3 Total 791,648 575,431
Transportation (Scope 3) 791,648 575,431
Total 2,747,067 2,554,990

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REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

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 2023/24 Consumption (tCO2e) FY 2022/23 Consumption (tCO2e)
Utility and Scope Location-based Location-based
Scope 1 Total 281.24 263.80
Gaseous and other fuels(Scope 1) 225.08 244.25
Transportation (Scope 1) 56.16 19.55
Scope 2 Total 100.96 107.67
Grid-Supplied Electricity (Scope 2) 100.96 107.67
Scope 3 Total 179.71 133.10
Transportation (Scope 3) 179.71 133.10
Total 561.91 504.57

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 the results of this analysis are as follows:

Intensity Metrics **Location-based tCO2e **
FY 2023/24 % change
All Scopes tCO2e per Turnover (£m) 10.66 +2.60%

Reporting Methodology

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

Government Emissions Factor Database FY2023 version 1.1 has been used, utilising the published kWh gross calorific value (CV) and kgCO2e emissions factors relevant for the reporting period 01/04/2023 – 31/03/2024.

Estimations were undertaken to cover missing billing periods for properties directly invoiced to Real Life Options. These were calculated at the meter level on a kWh/day pro-rata basis. For properties where Real Life Options is indirectly responsible for utilities (i.e. via landlord or service charge) or no data is available for the meter, an average kWh consumption was calculated at meter level and was applied to the properties with similar operations with no available data.

These full-year estimations were applied to one gas supply. All estimations equated to 3.88% of reported consumption.

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REAL LIFE OPTIONS

(A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

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

Real Life Options reports its emissions using a market-based method. Market-based emissions were calculated by applying fuel mix factors specific to the suppliers from which Real Life Options procures its energy (Ovo Energy and Corona Energy) to overall electricity consumption.

An intensity metric has been calculated using total tCO2e figures and the selected performance indicator(s) agreed with Real Life Options for the relevant report period:

Total turnover (£m) FY2023/24 £52.70m FY2022/23 £48.56m

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 2023/24

Head Office LED Installation

In FY2023/24, RLO decided to replace their older, inefficient halogen bulbs and install LED lighting at the Head Office, making the office fully LED. This will increase energy efficiency in their office space and reduce Scope 2 emissions.

Falkirk Office Boiler Replacement

During FY2023/24 RLO undertook a boiler replacement at their office in Falkirk. As the previous boiler had been malfunctioning, the replacement will increase efficiency and assist in reducing Scope 1 Natural Gas emissions.

Supply Chain Changes

RLO has decided to minimise business travel by using local contractors in their service area where possible. This project will reduce travel and, by extension, transport emissions.

Measures prioritised for implementation in 2024/25

LED Lighting Installation

Beginning in FY2024/25, RLO plans to begin replacing older lighting units that are failing with efficient LED lighting. This project will allow RLO to gradually transition to lower-emitting light sources and lower emissions from lighting across the board.

Energy Efficient Appliances

In FY2024/25, RLO will begin to ensure that any purchased appliances are highly energy efficient. Once implemented, this will reduce Scope 2 emissions.

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REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

VIII. PRINCIPAL RISKS AND UNCERTAINTIES

Real Life Options operate a dynamic risk programme which mirrors best practice as per The Charity Commissions Governance guidance.

The use of a traditional risk register is vigorously supported by two risk mitigation subgroups and a robust risk governance programme, which adopts ‘a three lines of defence’ structure and underpins effectiveness, transparency and targeted risk mitigation.

Subgroup details

Leadership Risk Action Group whose purpose is to ensure that the Real Life Options leadership Group:

Corporate Safeguarding Group whose purpose is to ensure:

Serious Incident Panel

Where required, our Serious Incident Panel Process will also support risk mitigation and ensure we comply with our corporate reporting responsibilities in line with regulatory requirement.

The purpose of the panel is to:

Formally and robustly review any incident that has the potential to seriously impact on and/or cause harm to supported individuals, our staff, members of the public and the reputation of the organisation as a whole.

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REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

IX. 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 2025. 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 2023/24, RLO continued to develop the strategy further using a purpose led approach. The leadership team worked on interpreting these 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.

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REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

IX. 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 has 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 any such practices and explore the least restrictive options where required.

Two years prior, 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 broken down into achievable goals and provide information regarding progress.

Investment in building skills and capabilities within the Specialist Support team remains a key focus. Learning acquired by the team will be disseminated throughout the organisation to support a positive behaviour support culture across the organisation.

Social Impact

During 2023/24, 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 2024/25 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 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 2023/24, RLO Group continued to deliver against the Community Connection Fund, our small grants programme designed to empower both the people we support and the 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 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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REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

IX. ACHIEVEMENTS AND PERFORMANCE (continued)

Staff Health and Wellbeing

Real Life Options Group are committed to supporting our staff with their health and well-being. During the year, the Health and Well-being Core Group met to further develop the plan for the future health and well-being strategy. The plan confirms the organisation’s 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 and well-being.

  3. Providing a specific focus on mental health awareness.

  4. Providing health and well-being/mental health representatives and support networks.

  5. Encouraging open conversations about mental health.

  6. Providing good working conditions and 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 well-being.

The Group Health and Well-being lead oversees the organisation on all well-being related matters and is a key driver of the Action Plan.

Staff Learning and Development

The learning and development team is made up of three people who analyse existing structures and processes and plan new ways of working to better support the organisations training needs going forward. This proactive approach is to ensure people’s training needs are met in advance. The team also support the business with the standard day to day training needs, ad hoc training requests and assisted with the implementation of the EDI framework.

We have recently introduced a new Learning Management System which gives us more autonomy and control over the training data. Managers now have access to their team’s training, and all existing courses have been reviewed and redesigned to fit the needs of the different learning styles within the organisation. Having greater control of training will reduce non-attendance thus creating greater savings within the learning and development budget.

The People Team has recently been restructured; we now have People Partners with designated areas who are supporting managers with their workforce data linked to the Employee Journey Model. The main aim is to reduce staff turnover, staff absence and case work. Support, training and coaching is now provided to all managers when there is a change in policy/process which upskills the knowledge of managers within the organisation.

We continue to provide funding through the Memorial Learning Fund which was created to remind us of those people whom we lost through COVID. Any employee can apply for this funding and go through a fair shortlisting process; whoever is successful has the opportunity to study the qualification of their choice in line with their role and the Organisation will fund this.

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.

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REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

IX. ACHIEVEMENTS AND PERFORMANCE (continued)

Staff engagement (continued)

We have increased the range of surveys that we undertake to hear from our staff; surveys conducted since April 2023 include:

Equality, Diversity, and Inclusion

The Real Life Options Group is committed to ensuring that all our diverse Groups of staff experience job satisfaction and well-being at work. The Equality, Diversity, and Inclusion framework was further developed in 2023/24 and EDI training was taken organisation wide in 2023/24. This gives our staff the knowledge and skills to ensure that our values are upheld, and culture and generational differences in the workplace are recognised.

X. 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 leadership 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 Group Head of Finance in attendance.

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REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

X. CONSTITUTION (continued)

Operation of the Board of Trustees (continued)

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.

New Trustees are inducted in two main ways:

During the year, no new Trustees were 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 £6,991 from Enable Unity CIC, a company in which D I Sargent 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 2024.

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REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

X. CONSTITUTION (continued)

Subsidiaries

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

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.

16

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

X. CONSTITUTION (continued)

Environmental Policy (continued)

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:

Modern Slavery Act 2015 - Modern Slavery and Human Trafficking Statement

The 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, be they service users, employees, stakeholders, suppliers or the local community, are key to our success and consequently we take our obligations very seriously.

This statement which covers the financial period 1st April 2023 to 31st March 2024, 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 recognise 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 maximise 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.

17

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

X. CONSTITUTION (continued)

Modern Slavery Act 2015 - Modern Slavery and Human Trafficking Statement (continued)

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 regulations including 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 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 protection in place 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 (72.9%) 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 acknowledge that there was a 3.3% pay differential in our median hourly wage rates and a 1.2% differential towards males in our mean hourly wages in the year ended 31 March 2024. 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.

18

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

X. 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.

Our fundraising and grant funding activities are beginning to grow across the organisation, and we are seeing an increase in donations through a range of events and sponsored activities. In response, the grants and fundraising strategy is undertaking a refresh and re-launch across 2024/25.

XI. FINANCIAL REVIEW

In the year to 31 March 2024, Real Life Options Group turnover increased by 8.4% from £48.6 million to £52.7 million. This upturn reflects an increase in services across Real Life Options with a decrease in subsidiary income. Real Life Options turnover increased by 9.2% from £44.5 million to £48.6 million and its subsidiaries decreased from £4.1 million to £4 million.

Net movement in funds for the Group increased by 149% from £863,000 to £2,152,000 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 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 primarily due to competition for staff from the hospitality and retail sectors. This has been particularly challenging in the homecare business which 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.

Statement of Financial Position

Debt collection remains a key focus and the relationship with local authorities that commission our services ensures a healthy cashflow. Our relationship with our long term lenders remains strong and through the year, debt has predominantly been repaid in accordance with the agreed schedules.

There has been no substantial investment in property.

19

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

XI. 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 or 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 £10.8m (2023 - £8.6m).

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 to 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 or losses of contracts. RLO has many contracts with a large number of local authorities which protects the organisation from any significant pressure of the loss of contract from one or two local authorities.

The Board have agreed that unrestricted reserves should be kept at a minimum of 10% of turnover or £5m. At 31 March 2024, this would equate to minimum reserves of £5m.

Unrestricted Group reserves as at 31 March 2024 were £10,731,000 which is higher than the minimum required reserve level. The Board are comfortable with the level of reserves which meet the strategic plan operating cost cover period of three months. In addition, the excess over the minimum level permits timely investment in areas to continue to meet the needs of the people RLO support.

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 £1,470 (2023: £1,400).

20

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS (A company limited by guarantee)

GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024

XI. FINANCIAL REVIEW (continued)

Going concern

The Trustees have determined that the expected level of reserves held, and the expected cash available to the Charity and its subsidiaries to 31 March 2026, will provide sufficient funding to support all existing commitments.

In addition, the Trustees have reviewed profit and loss and balance sheet forecasts to 31 March 2026, and concluded that the Charity and its subsidiaries will be able to meet its liabilities as they fall due over this period.

The Charity and subsidiaries’ forecasts prepared for the purposes of the going concern analysis were constructed on a prudent basis and reflect the expected minimum wage increases from 1 April 2025, the August 2024 rate of inflation and modest fee increases from local authorities. No additional business volume was included in the forecasts.

Sensitivity analysis has been undertaken for a number of different albeit highly unlikely scenarios including the impact of being unable to secure fee uplifts from Local Authorities and a significant reduction in the volume of care provided. In addition, reverse stress testing was carried out as part of the going concern analysis.

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 adjustments 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.

XII. PLANS FOR THE FUTURE

During the year ended 31 March 2024, Real Life Options worked on interpreting the strategic plan to ensure that it focused on supporting people throughout their lives and ensuring that the RLO Group focused 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.

RLO Group is undergoing a year-long strategic review utilising external expertise to support the Board and Executive team in building the next five-year strategy, the details of which will be announced in due course. This will reflect the significant changes anticipated in social care over the next decade.

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 external policies, in particular those which will be implemented in April 2025 following the October 2024 Government budget announcements.

ON BEHALF OF THE BOARD

D Wilkin

Director and Chair of the Trustees

21

9 December 2024

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

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

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

The Trustees present their report with the audited financial statements of the charitable company and the Group for the year ended 31 March 2024.

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 £2,152,000 (2023: £863,000).

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 £1,470 (2023 - £1,400).

Events after the reporting period

No significant post year end events have been identified

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.

22

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

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

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

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

9 December 2024

23

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

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

STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024

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's and Group’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and the Group and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the trust deed. The Trustees are also responsible for safeguarding the assets of the charitable company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

D I Sargent

Director

9 December 2024

24

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

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 2024

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 2024, which comprise the Consolidated Statement of Financial Activities, the Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows, 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 such as inflation, 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.

25

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

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 2024

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.

Other information

The other information comprises the information included in the Annual Report and Financial Statements, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the Annual Report and Financial Statements. 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 Trustees' 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:

26

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

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 2024

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on page 24, 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.

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:

27

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

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 2024

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.

_femee Gard

James Bird

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

10/12/2024 Date:

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

28

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

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 2024

Unrestricted
Restricted
Designated
Note
Funds
Funds
Funds
£'000
£'000
£'000
Incoming resources
Charitable activities
4
48,377
-
-
Donations
-
14
-
Trading activities:
Trading subsidiaries
income
4,076
-
-
Other income
250
-
-
_
_
_
Total incoming
resources
52,703
14
-
_
_
_
Resources expended
Trading expenditure:
Trading subsidiaries
expenditure
3,519
-
-
Charitable activities
47,021
10
18
_
_
_
Total resources
expended
5
50,540
10
18
_
_
_
Net income before
transfers and tax
2,163
4
(18)
UK corporation tax
11
3
-
-
_
_
_
Net movement in
funds
2,166
4
(18)
_
_
_
Fund balances at
1 April 2023
27
8,388
61
195
_
_
_
Total fund balances
at 31 March 2024
27
10,554
65
177


 2024
Total
£'000
48,377
14
4,076
250
_
52,717
_
3,519
47,049
_
50,568
_
2,149
3
_
2,152
_
8,644
_
10,796
 2023
Total
£'000
44,141
52
4,091
274
_
48,558
_
3,875
43,820
_
47,695
_
863
-
_
863
_
7,781
_
8,644

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 33 to 58 form part of these financial statements.

29

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an income and Expenditure account)

FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted
Restricted
Designated
Note
Funds
Funds
Funds
£'000
£'000
£'000
Incoming resources
Charitable activities
4
48,379
-
-
Donations
-
14
-
Other income
250
-
-
Investment income
240
-
-
_
_
_
Total incoming resources
48,869
14
-
_
_
_
Resources expended
Charitable activities
46,685
10
18
_
_
_
Total resources expended
5
46,685
10
18
_
_
_
Net movement in funds
2,184
4
(18)
_
_
_
Fund balances at 1 April
2023
27
10,782
61
195
_
_
_
Total fund balances at
31 March 2024
27
12,966
65
177


 2024
Total
£'000
48,379
14
250
240
_
48,883
_
46,713
_
46,713
_
2,170
_
11,038
_
13,208
 Restated
2023
Total
£'000
44,142
52
274
685
_
45,153
_
43,510
_
43,510
_
1,643
_
9,395
_
11,038

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

Restatement of the prior year figures relates to reclassifying Investment income to Incoming resources that had previously been included separately from income. The whole balance relates to Gift Aid from subsidiaries. Incoming resources has increased by £685k to £45,153k. There is no effect on net movement in funds, or the prior year figures in note 27.

The notes on pages 33 to 58 form part of these financial statements.

30

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

CONSOLIDATED AND CHARITY BALANCE SHEETS

Registered No 02699638

AS AT 31 MARCH 2024

Group Charity
Note 2024 2023 2024 2023
£'000 £'000 £'000 £'000
Fixed assets
Intangible assets 12 1,320 1,663 - -
Tangible assets 13 3,896 3,979 3,894 3,980
Investments in Subsidiaries 14 - - 4,919 4,919
_ _ _ _
5,216 5,642 8,813 8,899
Current assets
Debtors: amounts recoverable within
one year		 15 4,881 7,474 5,136 7,965
Cash at bank and in hand 25 5,251 1,953 4,630 1,507
_ _ _ _
10,132 9,427 9,766 9,472
Creditors:
Amounts falling due within one year 16 (4,111) (5,789) (4,932) (6,701)
_ _ _ _
Net current assets 6,021 3,638 4,834 2,771
_ _ _ _
Total assets less current liabilities 11,237 9,280 13,647 11,670
Creditors:
Amounts falling due after more than
one year		 18 (439) (631) (439) (632)
Provisions:
Deferred taxation 21 (2) (5) - -
_ _ _ _
Net assets 28 10,796 8,644 13,208 11,038
_ _ _ _
_ _ _ _
Reserves
Unrestricted Funds 10,554 8,388 12,966 10,782
Restricted Funds 65 61 65 61
Designated Funds 177 195 177 195
_ _ _ _
Total Funds 27 10,796 8,644 13,208 11,038
_ _ _ _

The financial statements were approved and authorised for issue by the Trustees on and 9/12/2024 signed on their behalf by:

D Wilkin Chair of the Board

The notes on pages 33 to 58 form part of these financial statements.

31

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS

AS AT 31 MARCH 2024

Cash flows from operating activities
Surplus for the financial year
Adjustments for:
Amortisation of intangible assets
12
Depreciation of fixed assets
13
Net interest payable
Taxation
11
Decrease in stock
Decrease/(increase) in debtors
15
(Decrease)/increase in creditors
16
Interest paid
Net cash from/(used in) operating activities
Cash flows from investing activities
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
Bank loans repaid
Net cash used in financing activities
Net increase/(decrease) 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		 2024
£'000
2,152
343
132
63
(3)
-
2,593
(1,540)
(63)
_
3,677
_
(49)
-
-
_
(49)
_
(330)
_
(330)
_
3,298
1,953
_
5,251
_
5,251
_		 2023
£'000
863
324
159
54
-
26
(3,672)
1,706
(52)
_
(592)
_
(30)
(9)
9
_
(30)
_
(335)
_
(335)
_
(957)
2,910
_
1,953
_
1,953
_

The notes on pages 33 to 58 form part of these financial statements.

32

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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), Charity Act and the Charities (Regulation and Administration) (Scotland) Act 2023 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.

33

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS (A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2 Accounting policies (continued)

2.2. Going Concern

The Trustees have determined that the expected level of reserves held, and the expected cash available to the Charity and its subsidiaries to 31 March 2026, will provide sufficient funding to support all existing commitments.

In addition, the Trustees have reviewed profit and loss and balance sheet forecasts to 31 March 2026, and concluded that the Charity and its subsidiaries will be able to meet its liabilities as they fall due over this period.

The Charity and subsidiaries’ forecasts prepared for the purposes of the going concern analysis were constructed on a prudent basis and reflect the expected minimum wage increases from 1 April 2025, the August 24 rate of inflation and modest fee increases from local authorities. No additional business volume was included in the forecasts.

Sensitivity analysis has been undertaken for a number of different albeit highly unlikely scenarios including the impact of being unable to secure fee uplifts from Local Authorities and a significant reduction in the volume of care provided. In addition, reverse stress testing was carried out as part of the going concern analysis.

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 adjustments 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.

34

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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.

35

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS (A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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.

36

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 activities.

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.

37

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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.

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.

38

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 £14k (£52k).

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 2024
Trading subsidiaries
expenditure
Charitable activities
GROUP 2023
Trading subsidiaries
expenditure
Charitable activities		 Human
Total
Governance
Costs
Resources
& Training
£'000
£'000
£'000
3,519
-
3,000
47,049
185
40,119
_
_
_
50,568
185
43,119
_
_
_
Human
Total
Governance
Costs
Resources
& Training
£'000
£'000
£'000
3,875
-
3,288
43,820
219
37,686
_
_
_
47,695
219
40,974


 Property
Costs
Administration
and Finance
£'000
£'000
134
385
2,291
4,454
_
_
2,425
4,839
_
_
Property
Costs
Administration
and Finance
£'000
£'000
162
425
1,925
3,990
_
_
2,087
4,415

Total expenditure for the year for the Group was £50,568k (2023: £47,695k) of which £10k (2023: £15k) was restricted, £18k (2023: £6k) was designated and £50,540k (2023: £47,674k) was unrestricted.

CHARITY 2024

CHARITY 2024
Charitable activities
CHARITY 2023
Charitable activities		 Human
Total
Governance
Costs
Resources
& Training
£'000
£'000
£'000
46,713
185
40,118
_
_
_
Human
Total
Governance
Costs
Resources
& Training
£'000
£'000
£'000
43,510
219
37,685


 Property
Costs
Administration
and Finance
£'000
£'000
2,290
4,120
_
_
Property
Costs
Administration
and Finance
£'000
£'000
1,925
3,681

Total expenditure for the year for the Charity was £46,713k (2023: £43,510k) of which £10k (2023: £15k) was restricted, £18k (2023: £6k) was designated and £46,685k (2023: £43,489k) was unrestricted.

39

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

5 Analysis of resources expended (continued)

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 to trading subsidiaries’ expenditure where they are incurred in those subsidiaries.

All expenditure in the current and preceding year was unrestricted.

6 Analysis of governance costs

Analysis of governance costs
Audit fees
Other financial services including
accountancy services
Audit and non audit services
Statutory audit of parent and
consolidated accounts
Statutory audit of subsidiary
companies
Tax services
Other services		 GROUP
2024
Restated
2023
£'000
£'000
131
137
54
82
_
_
185
219
_
_
GROUP
2024
Restated
2023
£'000
£'000
131
137
-
-
26
32
28
50
_
_
185
219

 CHARITY
2024
Restated
2023
£'000
£'000
131
137
54
82
_
_
185
219
_
_
CHARITY
2024
Restated
2023
£'000
£'000
131
137
-
-
26
32
28
50
_
_
185
219

The Group and Charity audit and governance analyses were misstated in error in the prior year and corrected this year. There is no impact on net assets or profit.

40

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

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
Staff costs
Wages and salaries
Social security costs
Other pension costs - contributions to
defined contribution schemes		 GROUP
2024
£'000
750
210
132
63
337
6
______
GROUP
2024
£'000
38,664
3,363
747
_
42,774
 2023
£'000
743
218
159
54
313
11
__
2023
£'000
36,231
3,215
690
_____
40,136
 CHARITY
2024
£'000
665
205
135
63
-
-
_

CHARITY
2024
£'000
35,924
3,151
702
_
39,777
 2023
£'000
661
213
157
54
-
-
__
2023
£'000
33,245
2,965
641
_____
36,851
_ _ _

8 Staff costs

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
2024
2023 Restated
Number
Number
4
7
4
2
-
-
-
1
-
-
1
2
1
-
1
-
-
-
-
-
-
-
-
1
1
-
-
-
-
1
_
_
12
14

 CHARITY
2024
2023 Restated
Number
Number
4
6
3
2
-
-
-
1
-
-
1
2
1
-
1
-
-
-
-
-
-
-
-
1
1
-
-
-
-
1
_
_
11
13

41

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

8 Staff costs (continued)

All employees earning more than £60,000 contributed to a personal pension scheme. The Charity contributed £39,997 (2023 - £47,966) on their behalf.

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

Staff GROUP
2024
Number
1,952
 2023
Number
1,824
 CHARITY
2024
Number
1,717
 2023
Number
1,587

Redundancy costs of £267,600 (2023 - £164,524) were payable of which £nil (2023 - £nil) was unpaid at the year end. This related to compensation for loss of office for 7 (2023 – 6) individuals.

9 Directors' Remuneration

Directors' emoluments
Company contributions to defined contribution pension scheme		 GROUP AND CHARITY
2024
2023
£'000
£'000
371
619
50
59
__
__
421
678

There were 4 directors in the Group's defined contribution pension scheme (2023 - 4). None of the directors accrued benefits under a defined benefit pension scheme during the year (2023 - 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 £187k (2023 - £278k). Company pension contributions of £4k (2023 - £2k) 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 2024 and the year ended 31 March 2023, Non-executive Trustees did not receive any remuneration.

Trustees are reimbursed for expenditure incurred in attending Trustee meetings or visiting the Group’s location and facilities in their roles as Trustees. In the year to 31 March 2024, costs totalling £587 (2023 - £642) were reimbursed to 2 (2023 restated - 2) Non-Executive Trustees.

During the year ended 31 March 2024, there was an amount of £nil (2023 - £128,546) paid to directors as compensation for loss of office. Of this £nil (2023 - £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 £1,470 (2023 - £1,400).

42

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 25% (2023 - 19%)
Income not subject to tax
Expenses not deductible for tax purposes
Adjustments in respect of prior periods
Total tax credit for the year		 GROUP
2024
£'000
-
-
_
-
(1)
(2)
-
_
(3)
_
(3)
_
2,149
537
(12,301)
11,763
(2)
_
(3)
 2023
£'000
-
-
_
-
-
-
-
_
-
_
-
_
863
164
(8,449)
8,285
-
_
-

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 in 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.

43

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

12 Intangible assets

Group Goodwill Software Total
£'000 £'000 £'000
Cost
At 1 April 2023 5,925 38 5,963
Additions - - -
_ _ _
At 31 March 2024 5,925 38 5,963
_ _ _
Amortisation
At 1 April 2023 4,283 17 4,300
Amortisation in the year 337 6 343
_ _ _
At 31 March 2024 4,620 23 4,643
_ _ _
Net book value
At 31 March 2024 1,305 15 1,320
_ _ _
At 1 April 2023 1,642 21 1,663
_ _ _
Charity
Goodwill
£'000
Cost
At 1 April 2023 and 31 March 2024 474
Amortisation
At 1 April 2023 and 31 March 2024 474
_
Net book value
At 1 April 2023 and 31 March 2024 -
_

44

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS (A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

13
Tangible fixed assets
Freehold
land and
Leasehold
buildings
improvements
GROUP
£'000
£'000
Cost
At 1 April 2023
4,275
377
Additions
-
30
Disposals
-
-
_
_
At 31 March 2024
4,275
407
_
_
Depreciation
At 1 April 2023
564
197
Provided during the year
60
37
Disposals
-
-
_
_
At 31 March 2024
624
234
_
_
Net Book Value
At 31 March 2024
3,651
173
_
_
At 31 March 2023
3,711
180

 Fixtures
and
fittings
£'000
204
2
-
_
206
_
204
2
-
_
206
_
-
_
-
 Motor
Office
Computer
vehicles
equipment
equipment
£'000
£'000
£'000
82
-
1,355
-
-
17
-
-
-
_
_
_
82
-
1,372
_
_
_
26
-
1,323
14
-
19
-
-
-
_
_
_
40
-
1,342
_
_
_
42
-
30
_
_
_
56
-
32


 Total
£'000
6,293
49
-
_
6,342
_
2,314
132
-
_
2,446
_
3,896
_
3,979

45

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS (A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

13 Tangible fixed assets (continued)

Freehold
land and
Leasehold
Fixtures and
buildings
improvements
fittings
CHARITY
£'000
£'000
£'000
At 1 April 2023
4,275
377
233
Additions
-
30
2
Disposals
-
-
-
_
_
_
At 31 March 2024
4,275
407
235
_
_
_
Depreciation
At 1 April 2023
564
197
224
Provided during the year
60
37
7
Disposals
-
-
-
_
_
_
At 31 March 2024
624
234
231
_
_
_
Net book value
At 31 March 2024
3,651
173
4
_
_
_
At 31 March 2023
3,711
180
9


 Motor
vehicles
Computer
£'000
£'000
82
1,307
-
17
-
-
_
_
82
1,324
_
_
26
1,283
14
17
-
-
_
_
40
1,300
_
_
42
24
_
_
56
24

 Total
£'000
6,274
49
-
_
6,323
_
2,294
135
-
_
2,429
_
3,894
_
3,980

46

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS (A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

14 Investments

Cost and net book value as at 1 April 2023
Movement in value of investments
Cost and net book value as at 31 March 2024		 CHARITY
2024
2023
£'000
£'000
4,919
4,919
-
-
_
_
4,919
4,919

An impairment review was carried out on the investment in Montana Home Care Ltd which made a small trading loss in the year ended 31 March 2024. The review was undertaken in accordance with the principles of FRS102 section 27. No impairment was identified and therefore the investment in Montana Home Care Ltd continues to be held at cost.

Subsidiary Control % Co. Number Registered Office
1st Home Care Ltd 100 SC272838 Suite 1, Ground Floor Academy House,
1346 Shettleston Road, Glasgow, G32
9AT
Orchard Care Services Limited 100 05767436 David Wandless House, A1 Business
Park, Knottingley Road, Knottingley,
WF11 0BU
Lowland Care Services Limited 100 SC236443 Real Life Options, 35 East Port,
Dunfermline, Fife, Scotland, KY12 7LG
Alpha Homecare (Scotland) Limited 100 SC263919 Real Life Options, 35 East Port,
Dunfermline, Fife, Scotland, KY12 7LG
RLO Orchard Care Limited 100 08164674 David Wandless House, A1 Business
Park, Knottingley Road, Knottingley,
WF11 0BU
Senior Service (Edinburgh) Limited* 100 SC312050 Real Life Options, 35 East Port,
Dunfermline, Fife, Scotland, KY12 7LG
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 Business 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.

47

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 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 100 13082113 David Wandless House A1 Business
Limited^ 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 was dissolved on 2 August 2022.

48

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

14 Investments (continued)

The income and expenditure for the year ended 31 March 2024 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
2024 2023 2024 2023 2024 2023
£'000 £'000 £'000 £'000 £'000 £'000
Turnover 3,006 2,889 442 566 595 637
Cost of sales (2,262) (2,382) (344) (458) - -
_ _ _ _ _ _
Gross profit 744 507 98 108 595 637
Administrative
expenses (330) (407) (116) (88) (467) (541)
_ _ _ _ _ _
Operating profit 414 100 (18) 20 128 96
Interest receivable
and similar income - - - - - -
_ _ _ _ _ _
Profit on ordinary
activities before tax 414 100 (18) 20 128 96
Taxation 3 - - - - -
_ _ _ _ _ _
Profit after tax 417 100 (18) 20 128 96
_ _ _ _ _ _
The aggregate of the assets liabilities and funds was:
Restated
As at As at As at As at As at As at
2024 2023 2024 2023 2024 2023
£'000 £'000 £'000 £'000 £'000 £'000
Assets 1,886 1,583 39 49 235 218
Liabilities (188) (211) (44) (16) (35) (49)
_ _ _ _ _ _
Reserves 1,698 1,372 (5) 33 200 169
_ _ _ _ _ _

49

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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
2024
£'000
3,311
-
58
1,511
1
_
4,881
 2023
£'000
6,447
-
69
957
1
_
7,474
 CHARITY
2024
£'000
3,019
960
58
1,099
-
_
5,136
 2023
£'000
6,098
929
65
873
-
_
7,965

The impairment loss recognised in the Group's Statement of Financial Activities for the period in respect of bad and doubtful trade debtors was £655,000 (2023 - £33,029). The impairment loss recognised in the Charity's Statement of Financial Activities for the period in respect of bad and doubtful trade debtors was £655,000 (2023 - £33,029).

In 2024, an arm’s length loan agreement was created between Real Life Options, the parent, and Montana Home Care Ltd. The loan balance at 31 March 2024 was £26,500 with an interest rate of 8%. All other 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
2024
£'000
253
555
699
704
1,900
-
_
4,111
 2023
£'000
391
1,887
722
961
1,828
-
_
5,789
 CHARITY
2024
£'000
253
541
664
612
1,985
877
_
4,932
 2023
£'000
391
1,854
683
883
1,907
983
_
6,701

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 this 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 £2,215k (2023 - £2,358k). These are not included within the funds of the Group.

50

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

17 Deferred income

Balance at 1 April
Amount released to income
Amount deferred in the period
Balance at 31 March		 GROUP
2024
£'000
703
(703)
402
_
402
 2023
£'000
767
(767)
703
_
703
 CHARITY
2024
£'000
704
(704)
401
_
401
 2023
£'000
767
(767)
704
_
704

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

18 Creditors : amounts falling due in more than one year

Bank loans
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
2024
£'000
439
_
GROUP
2024
£'000
253
235
204
_
692
 2023
£'000
631
_
2023
£'000
391
537
94
_
1,022
 CHARITY
2024
£'000
439
_
CHARITY
2024
£'000
253
235
204
_
692
 2023
£'000
632
_
2023
£'000
391
537
95
_
1,023

19 Bank loans

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
2024
2023
£'000
£'000
9,499
9,109
_
_
3,449
4,994

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.

51

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

21 Deferred taxation

----- Start of picture text -----
|||||| |---|---|---|---|---| |GROUP| |2024|2023| |£'000|£'000| |At 1 April 2023|(5)|(5)| |Charged in the year|3|-| |_|_| |At 31 March 2024|(2)|(5)| |_|_| |The deferred taxation (creditor)/debtor is made up as follows:| |GROUP| |2024|2023| |£'000|£'000| |Short term timing differences|(2)|(5)| |_|_| |Other financial commitments| |At 31 March 2024, the Group had commitments under non-cancellable operating leases as follows:| |GROUP|GROUP| |Land and Buildings|Equipment| |2024|2023|2024|2023| |£'000|£'000|£'000|£'000| |Expiry date:| |Within one year|963|541|66|198| |Between two and five years|1,584|124|116|145| |In more than 5 years|798|44|26|50| |_|_|_|_| |3,345|709|208|393| |_|_|_|_| |CHARITY|CHARITY| |Land and Buildings|Equipment| |2024|2023|2024|2023| |£'000|£'000|£'000|£'000| |Expiry date:| |Within one year|924|503|66|196| |Between two and five years|1,538|79|116|145| |In more than 5 years|798|44|26|50| |_|_|_|_| |3,260|626|208|391| |_|_|_|_|

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

22 Other financial commitments

52

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 2024, is based on valuation data as 31 March 2023, updated to 31 March 2024 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used.

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

b) Full actuarial (funding) valuation

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

The 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. 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 2023/24, employers’ contributions of £33,248 (2022-23: £31,011) 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.

53

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 2024 2023
£ £
Real Life Options 1st Home Care Ltd 97,421 91,838
Real Life Options Affinity Homecare Shrewsbury Limited 7,784 3,588
Real Life Options Montana Home Care Ltd 4,764 3,999
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 1,477 1,467
The intercompany debtor/(creditor) at year end comprised:
2024 2023
£ £
1st Home Care Ltd 679,924 778,822
Affinity Homecare Shrewsbury Limited 121,722 129,506
Montana Home Care Ltd (37,015) (5,751)
Alpha Homecare (Scotland) Limited (31,675) (31,675)
Senior Service (Edinburgh) Limited (101,677) (101,677)
Real Life Options (Cymru) Limited (270,098) (270,098)
Lowland Care Services Limited 75,153 75,153
RLO Orchard Care Limited (440,853) (440,853)
Orchard Care Services Limited (79,120) (79,120)

During the year, Real Life Options purchased services and assets amounting to £6,991 (2023 - £24,706) from Enable Unity CIC, a company in which D I Sargent 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 2024 (2023 - £nil).

Transactions with Trustees are detailed in note 9.

25 Analysis of cash and cash equivalents

Short term deposits held GROUP
2024
£'000
5,251
 2023
£'000
1,953
 CHARITY
2024
£'000
4,630
 2023
£'000
1,507

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
2023
Cash flows
£'000
£'000
Short term deposits held
1,953
3,298
Bank loans
(1,022)
393
_
_
931
3,691

 Interest
At 31 March
2024
£'000
£'000
-
5,251
(63)
(692)
_
_
(63)
4,559

54

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

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
2023
£'000
61
_
61
_
195
8,388
_
8,583
_
8,644
_
At
1 April
2023
£'000
61
_
61
_
195
10,782
_
10,977
_
11,038
 Gains,
At
Losses
31 March
Income
Expenditure
Transfers
and Tax
2024
£'000
£'000
£'000
£'000
£'000
14
(10)
-
-
65
_
_
_
_
_
14
(10)
-
-
65
_
_
_
_
_
-
(18)
-
-
177
52,703
(50,540)
-
3
10,554
_
_
_
_
_
52,703
(50,558)
-
3
10,731
_
_
_
_
_
52,717
(50,568)
-
3
10,796
_
_
_
_
_
At
Gains and
31 March
Income
Expenditure
Transfers
Losses
2024
£'000
£'000
£'000
£'000
£'000
14
(10)
-
-
65
_
_
_
_
_
14
(10)
-
-
65
_
_
_
_
_
-
(18)
-
-
177
48,869
(46,685)
-
-
12,966
_
_
_
_
_
48,869
(46,703)
-
-
13,143
_
_
_
_
_
48,883
(46,713)
-
-
13,208

A figure of £177k (2023 - £195k) 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.

55

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS (A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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
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,
Losses
Income
Expenditure
Transfers
and Tax
£'000
£'000
£'000
£'000
52
(15)
-
-
_
_
_
_
52
(15)
-
-
_
_
_
_
-
(6)
-
-
48,506
(47,674)
-
-
_
_
_
_
48,506
(47,680)
-
-
_
_
_
_
48,558
(47,695)
-
-
_
_
_
_
Gains and
Income
Expenditure
Transfers
Losses
£'000
£'000
£'000
£'000
52
(15)
-
-
_
_
_
_
52
(15)
-
-
_
_
_
_
-
(6)
-
-
45,101
(43,489)
-
-
_
_
_
_
45,101
(43,495)
-
-
_
_
_
_
45,153
(43,510)
-
-



 At
31 March
2023
£'000
61
_
61
_
195
8,388
_
8,583
_
8,644
_
At
31 March
2023
£'000
61
_
61
_
195
10,782
_
10,977
_
11,038

56

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

28 Analysis of net assets

Group – current year

Group – current year
Designated Restricted
General fund fund fund Total funds
£000 £000 £000 £000
Intangible assets 1,320 - - 1,320
Tangible assets 3,896 - - 3,896
Current assets 9,890 177 65 10,132
Current liabilities (4,111) - - (4,111)
Non-current liabilities and provisions (441) - - (441)
_ _ _ _
10,554 177 65 10,796
_ _ _ _
Group – prior year
Designated Restricted
General fund fund fund Total funds
Intangible assets 1,663 - - 1,663
Tangible assets 3,979 - - 3,979
Current assets 9,171 195 61 9,427
Current liabilities (5,789) - - (5,789)
Non-current liabilities (636) - - (636)
_ _ _ _
8,388 195 61 8,644
_ _ _ _
Charity – current year
Designated Restricted
General fund fund fund Total funds
£000 £000 £000 £000
Tangible assets 3,894 - - 3,894
Investments in subsidiaries 4,919 - - 4,919
Current assets 9,524 177 65 9,766
Current liabilities (4,932) - - (4,932)
Non-current liabilities (439) - - (439)
_ _ _ _
12,966 177 65 13,208
_ _ _ _

57

Docusign Envelope ID: DD49B80D-CA48-46EA-8621-C0168A729B59

REAL LIFE OPTIONS

(A company limited by guarantee)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

28 Analysis of net assets (continued)

Charity – prior year

Charity – prior year
Designated Restricted
General fund fund fund Total funds
£000 £000 £000 £000
Tangible assets 3,980 - - 3,980
Investments in subsidiaries 4,919 - - 4,919
Current assets 9,216 195 61 9,472
Current liabilities (6,701) - - (6,701)
Non-current liabilities (632) - - (632)
_ _ _ _
10,782 195 61 11,038
_ _ _ _

29 Capital commitments

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

GROUP & COMPANY
2024 2023
£'000 £'000
Expenditure contracted for but not included in liabilities 13 -
_ _

58