DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022** **Charity registration number 1171529** DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|Mrs G Prashar|(Appointed 4 May 2021)| |---|---|---| ||Mr R Craven|(Appointed 27 July 2021)| ||Mr S Spence|| ||Mr W Beecroft|| ||Mr A Glen|(Appointed 27 July 2021)| |**Senior Management Team**|J Flynn|| ||D Jowitt|| ||P Atkinson|| |**Charity number**|1171529|| |**Principal address**|Unit 2A|| ||Barras Garth Road|| ||Leeds|| ||LS12 4JW|| |**Registered office**|Unit 2A|| ||Barras Garth Road|| ||Leeds|| ||LS12 4JW|| |**Auditor**|Alison Whalley FCA|| ||Naylor Wintersgill Limited|| ||Carlton House|| ||Grammar School Street|| ||Bradford|| ||BD1 4NS|| |**Bankers**|Unity Trust Bank Plc|| ||Birmingham|| ||B1 2HB|| DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 6| |Statement of trustees' responsibilities|7| |Independent auditor's report|8 - 10| |Statement of financial activities|11| |Balance sheet|12| |Statement of cash flows|13| |Notes to the financial statements|14 - 22| DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **TRUSTEES' REPORT** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ The trustees present their annual report and financial statements for the year ended 31 March 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [foundation], the Charities Act 2011 and "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). ## **Objectives and activities** The objectives of the charity are to enable individuals who have been subject to National Probation Service (NPS) Supervision who have served substantial or repeated Custodial Sentences to:- - Gain access to good quality single occupancy private rented accommodation that would otherwise be denied to them due to their criminal convictions or status as benefit claimants. - Gain skills needed to maintain their tenancy and overcome a range of issues that may otherwise cause them to lose their tenancy and therefore become homeless and potentially be recalled back to prison as a result. ## Our Mission Statement We aim to support our service users on their journey to independent living, build their confidence, life skills, self-belief and motivation By providing single occupancy, well maintained accommodation; committed, skilled support workers; flexible, tailored support plans To National Probation Service Clients assessed as high risk of harm who have served repeated or long sentence and now demonstrate the motivation to change their future During this accounting period the organisation's policies and objectives have focussed on:- - Continuing to provide appropriate, single occupancy tenancies. - Working with each service user to develop individual and purposeful support plans that encourage them to gain the skills needed to maintain stability in their accommodation. - Continuing to develop flexible and meaningful support services to meet the varied needs of our service users. - Support our service users to access suitable move on accommodation at the appropriate time. - Continuing to develop appropriate KPls to ensure meaningful evaluation of our key services. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. - 1 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **Leeds City Council Supported Housing Services Review** The outcome of this overdue Review held between November 2021 and March 2022, led to LCC removing, without notice, the Exempt Accommodation Status for a number of Service Users. LCC’s decision was based upon the length of time service users had been resident with Axis SL rather than their individual circumstances, support needs and continued barriers to suitable move on accommodation and did not consider the complex demographic of those individuals Axis SL support and accommodate. Removal of the funding for eligible Service Charges, and rents being limited to local housing authority rates, left those Service Users potentially homeless as they became ineligible to reside in their Axis property. This also signified the need for a fundamental change in our approach to support and removes the principle of giving vulnerable, disadvantaged and institutionalised individuals the time they need to become stable and build confidence to live independently. However, at the same time an increase in funding was negotiated and approved in line with rising inflation, for those deemed eligible for our support services for the 2022-23 financial year and assurances have been given that Supported Housing Services remain a priority in the LCC Homelessness Prevention Strategy. The challenge for the SMT in the coming year is to assist those Service Users affected by the funding cuts to secure alternative accommodation as quickly as possible, but also to adjust our service and support to ensure future Service Users joining the scheme gain access to suitable move on accommodation within the time limits now being imposed. The support put in place both by LST and ourselves during this financial period, has already increased successful access to LCC properties. SMT are determined to ensure that the focus on moving Service Users on within a shorter period of time will not be detrimental to the service that is proving vital to those individuals who are motivated to make long term changes to their futures. Along with the determination and commitment of our team of hard- working staff we are confident this change in expectation can be managed and we can continue to achieve positive outcomes for our service users. Furthermore, the supported accommodation review has clarified LCC’s position on some specific elements of our support services they now deem ineligible for funding going forward. This will enable the SMT to explore alternative funding opportunities for specific services we are keen to develop such as outreach support to bridge the transition into independent tenancies, with a period of continued support whilst Service Users settle into their new homes. ## **Achievements and performance** Close Liaison with Leeds City Council Landlord Support Scheme (LST) since October 2021 has resulted in the number of Service Users securing permanent tenancies with Leeds City Council and Housing Associations increasing 3 fold on previous years. Most of those Service Users had been with Axis SL for over 2 years or more. Stable tenancies with long term quality support means that Service Users feel secure enough to begin accessing services and courses with a realistic expectation of completion, which the disruption of short term, temporary tenancies discourage. Some of the activities our Service Users currently engage with include Forward Leeds drug and alcohol treatment, Mental Health services, Leeds Mind, Work Place Leeds, Anger Management courses, Lighthouse project, Touchstone, Helping Hands Men’s Group, Leeds Wood Recycling, Together Women’s Project, Reid in Partnership with DWP, Five Ways Recovery, Black Health Initiative, Mental Health Activity Hub, Cognitive Behavioural Therapy and voluntary gardening work. Stable accommodation and long term support has resulted in increased numbers of Service Users going into employment with others completing Warehouse Operatives, Fork lift Truck and CSCS card courses enabling entry into the building industry or related trades. Some Service Users continue to work full time, part time and selfemployed whilst remaining with Axis SL, benefiting from continued support and encouragement to deal with changing DWP Benefit entitlements as well as paying top up rent to Axis SL from their earnings and one Service User has completed a Maths Degree with the Open University, demonstrating that long term stable accommodation is crucial to successful outcomes. - 2 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **Support Services** Support Staff provide individually tailored support plans and encourage Service User involvement at all stages, enabling support to be delivered in a structured but flexible way and can react to changing risks, needs and goals of Service Users, therefore support remains relevant and encourages positive progress whilst addressing risk issues at the earliest opportunity. Support Workers continue to work alongside the challenges created as we learn to live with Covid 19 and subsequent reliance on organisations working more remotely. All new Service Users receive a starter pack including a full set of new bedding, duvet and pillows; crockery, cutlery, kettle, toaster and pans and a food parcel from a food bank if required as many have nothing more than the clothes they stand up in when they are released from custody and this year a microwave has been put in all properties to enable cheaper cooking facilities ahead of the expected rise in fuel bills. Service Users receive assistance setting up their initial utility suppliers and encouragement to persist in getting issues resolved, setting up suitable payment plans for their gas, electricity and water supplies or having pre-pay meters installed if appropriate. Support Workers also ensure Service Users are on a Water Meter where possible and if not are put on Yorkshire Water’s Assessed Tariff so everyone is paying the lowest price possible for their utilities as the cost of cost of living is expected to rise sharply in the coming months. Applications are also made to Trust Funds for outstanding debts to be written off where appropriate. Support Worker presence helps Service Users to feeling overwhelmed or powerless in the face of large organisations, which often leads to them giving up and avoiding dealing with bills and debts at all. As Service Users establish their stable address and Debt Recovery Agencies pursue previous outstanding debt, our support gives Service Users confidence to tackle debt as well as help understanding and claiming any additional help the Government has put in place, resulting in better long-term outcomes. Many of our Service Users do not have access to computers either due to low income, PPU restrictions or the knowledge and confidence to use computers and during this financial year we have updated our computer systems and provided laptops to all Support Workers for use with Service Users in their homes during their Support Sessions. Therefore, weekly support sessions are providing the means, equipment and confidence for all our Service Users to bid regularly on Leeds Homes accounts and search for move on accommodation. When Service Users are ready to move on from Axis SL, Support Workers provide guidance and practical help with finding affordable furniture, white goods, transport and contacting utility companies, resulting in Service Users settling in more quickly and therefore remaining in their permanent Local Authority tenancies. ## **Financial review** The results of the year to 31 March 2022 are set out in the Statement of Financial Activities. Incoming resources excluding investment income totalled £950,860 (2021: £962,209) from a portfolio of 84 properties. Using this as a benchmark going forwards will give a good indication of the financial success of the charity. Expenditure is £947,193 (2021: £890,531). It is hoped that through improved relations with the local authority and landlords that expenditure will become more efficient. Overall the charity generated a surplus of £3,948 (2021: £71,707) in the period. The charity is able to meet its financial commitments such as landlords' rents, salaries and overhead costs from the working capital of the charity. The assets and liabilities of the charity as of 31 March 2022 are set out in the balance sheet. - 3 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **Going Concern** After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The Trustees expect that the policy on ‘Living with Covid 19’ will continue to have minimal impact on the CIO due to funding remaining guaranteed and stable. Furthermore, all activities are being maintained with safety measures in place and Government Guidance maintained at every stage. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. ## **Reserves Policy** - 3 months operating costs and any extended Lease commitments have been assessed as adequate to enable the CIO to be closed in a structured way, enabling alternative accommodation to be found for those Service Users unable to stay in their accommodation should the CIO cease to operate. - Sufficient surplus is being held separately to operating capital to cover the funding necessary to support the Policy. ## **Income Generation/Fundraising activities** - Income directly from LCC and Housing Benefit Dept. and DWP - No fundraising activities during this period. - Some income is generated from Service Users who have obtained employment and contribute to their charges from their earnings where Housing Benefit payments are subsequently reduced. Others are repaying historic Housing Benefit overpayments or arrears through their current benefits awards. All of which prepares them for making similar payments successfully when they reach the stage where move on is appropriate. ## **Principal Risks and Uncertainties** - Long term changes in Government and Local Authority funding policy. - Landlords potentially leaving the scheme due to uncertainty in the housing market. However, the number of Landlords joining the scheme continues to increase which would suggest this risk remains minimal. - Lack of available appropriate properties within rent limits, however as properties continue to be offered and increased rent levels continue to be met by LCC then this also suggests this risk remains minimal. - Over saturation within specific areas of the city, close liaison with NPS and PPU, effective property management and new landlords continues to ensure appropriate placement of Service Users and this risk remains minimal. ## **Plans for future periods** - To maintain the quality of accommodation provided on the scheme by continuing to source new properties to replace substandard properties and maintain housing stock availability. - Create a designated fund to self-insure against damage to properties by Service Users. - Identify and submit applications for grant funding to cover those items now identified and clarified in the - LCC Housing Support Services Review as ‘ineligible’. - Further develop a robust Board of Trustees and ensure skills are relevant, to support SMT in maintaining the Charity Objects. - 4 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **Structure, governance and management** The charity is a Charitable Incorporated Organisation registered on 8 February 2017, registration number 1171529 registered in England and Wales. The Constitution and Objects of the organisation states the purpose of the Charity as: “for the public benefit the relief of those in need because of youth, age, ill-health, disability, financial hardship or other disadvantage in particular by:- - a. Providing accommodation to high risk, vulnerable and socially disadvantaged individuals and particularly those subject to the criminal justice system; and - b. Providing support and assistance to those individuals to enable them to manage and maintain their tenancy.” Over the 2021-22 accounting period the Board of Trustees has consisted of the Chair who was voted back onto the Board for a further 4 year period in May 2021 and five Trustees voted onto the Board during the previous 2 financial years as the original Trustees completed their agreed terms successfully with one Trustee resigning in January 2022 as he had retired and was moving away from the area. A Trustee Skills Audit was undertaken in August 2021 taking account of skills, knowledge and experience in relation to the nature, needs and issues faced by Service Users as well as for the effective administration and financial management of the CIO and all new Trustees have been appointed on this same basis. This has extended the numbers, skills, knowledge and experience in line with the size of the CIO. The Trustees confirm that when developing and reviewing the Charity’s activities, policies and devising future plans they have referred to the Charity Commission’s general guidance on public benefit and complied with their duties under current legislation. The Board of Trustees continue to delegate their powers for day-to-day management of the CIO to a Senior Management Team (SMT) consisting of three Senior Support Workers with responsibilities as Director of Operations, Director of HR and Development and Director of Estates and Property Management. The SMT continues to report to the Board of Trustees on a 3 monthly schedule of meetings where decisions about all aspects of the activities and finances are monitored to ensure that these fall within the charitable objectives and are delivered for the public benefit. The SMT has remained stable throughout this period and no changes are expected in the foreseeable future. The trustees who served during the year and up to the date of signature of the financial statements were: Mrs G Prashar (Appointed 4 May 2021) Mr R Craven (Appointed 27 July 2021) Mr S Spence Mr W Beecroft Mr A Glen (Appointed 27 July 2021) Mr M W Walker (Resigned 25 January 2022) Mrs K Siddall (Resigned 19 October 2021) None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up. ## **Auditor** During the year the trustees approved Naylor Wintersgill as auditors. In accordance with the company's articles, a resolution proposing that Naylor Wintersgill Limited be reappointed as auditor of the company will be put at a General Meeting. - 5 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **Disclosure of information to auditor** Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. The trustees' report was approved by the Board of Trustees. Mr W Beecroft **Trustee** 10 November 2022 - 6 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. - 7 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF AXIS SUPPORTED LIVING** ## **Opinion** We have audited the financial statements of Axis Supported Living (the ‘charity’) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charity’s affairs as at 31 March 2022 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustees' report; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. - 8 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF AXIS SUPPORTED LIVING** ## **Responsibilities of trustees** As explained more fully in the statement of trustees' responsibilities, the trustees 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 charity’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 cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. ## **Capability of the audit in detecting irregularities, including fraud** Based on our understanding of the Charity and its industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK law and we considered the extent to which non-compliance might have a material effect on the financial statements of the Charity. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure or increase the capital position of the Company, and management bias in accounting estimates and judgmental areas of the financial statements such as · the recognition of income. Audit procedures performed by the engagement team included: - Discussions with trustees including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - Reviewing relevant meeting minutes; - Reviewing of correspondence in so far as they related to non-compliance with laws and regulations and fraud; - Procedures relating to the recognition of income; - Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, posted on unusual days, posted by infrequent users, posted by senior management or posted with descriptions indicating a higher level of risk; Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing over immaterial liabilities and assets balances. · There are inherent limitations in the audit procedures described above and the further removed non-·compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. - 9 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF AXIS SUPPORTED LIVING** A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// 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 charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. **Alison Whalley (Senior Statutory Auditor) for and on behalf of Naylor Wintersgill Limited** 10 November 2022 **Chartered Accountants Statutory Auditor** Carlton House Grammar School Street Bradford BD1 4NS Naylor Wintersgill Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. - 10 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2022**_ |||**Unrestricted **|**Unrestricted**| |---|---|---|---| |||**funds**|**funds**| |||**2022**|**2021**| ||**Notes**|**£**|**£**| |**Income from:**|||| |Charitable activities|**3**|950,860|962,209| |Investments|**4**|281|29| |**Total income**||951,141|962,238| |**Expenditure on:**|||| |Charitable activities|**5**|947,193|890,531| |**Net income for the year/**|||| |**Net movement in funds**||3,948|71,707| |Fund balances at 1 April 2021||372,677|300,970| |**Fund balances at 31 March 2022**||376,625|372,677| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. - 11 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **BALANCE SHEET** ## _**AS AT 31 MARCH 2022**_ |**Notes**
**Fixed assets**
Tangible assets
**9**
**Current assets**
Debtors
**10**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**11**
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds
Designated funds
**12**
General unrestricted funds|**2022**
**£**
47,159
340,929
388,088
(18,704)
335,000
41,625|**£**
7,241
369,384
376,625
376,625
376,625|**2021**
**£**
53,402
319,811
373,213
(15,693)
-
372,677|**£**
15,157
357,520| |---|---|---|---|---| |||||372,677| |||||372,677| |||||372,677| The financial statements were approved by the Trustees on 10 November 2022 Mr W Beecroft **Trustee** - 12 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**Notes**
**Cash flows from operating activities**
Cash generated from operations
**16**
**Investing activities**
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed assets
Investment income received
**Net cash generated from investing**
**activities**
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**£**
(6,828)
16,306
281|**£**
11,359
9,759
-
21,118
319,811
340,929|**2021**
**£**
-
-
29|**£**
86,945
29
-| |---|---|---|---|---| |||||86,974
232,837| |||||319,811| - 13 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** ## **Charity information** Axis Supported Living is a Charitable Incorporated Organisation (CIO) in England and Wales. The address of the registered office is given in the charity information on Page 1 of the financial statements. The nature of the charity's operations and principal activities are given on page 2 onwards. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's [Foundation], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, [to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. ## **1.4 Income** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. - 14 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** **(Continued)** ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Leasehold improvements 33% Straight Line Computers 25% Straight Line Motor vehicles 25% Straight Line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. ## **1.7 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). ## **1.8 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.9 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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. - 15 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** **(Continued)** ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. ## **1.10 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.11 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. ## **2 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. - 16 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **3 Charitable activities** |||**2022**|**2021**| |---|---|---|---| |||**£**|**£**| ||Housing benefit and support|926,231|945,921| ||Service user rent|24,629|16,288| |||950,860|962,209| |**4**|**Investments**||| |||**Unrestricted **|**Unrestricted**| |||**funds**|**funds**| |||**2022**|**2021**| |||**£**|£| ||Interest receivable|281|29| |**5**|**Charitable activities**||| |||**2022**|**2021**| ||||**(as restated)**| |||**£**|**£**| ||Staff costs|218,359|179,743| ||Landlord rents|488,595|495,582| ||Property registration fees|150|300| ||Repairs of tenanted properties|34,755|39,326| ||Tenant expenses|10,476|8,004| ||Rates on Vacant Properties|5,089|2,962| |||757,424|725,917| ||Share of support costs (see note 6)|184,429|161,014| ||Share of governance costs (see note 6)|5,340|3,600| |||947,193|890,531| - 17 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **6 Support costs** |Staff costs
Staff training
Depreciation
Gain on disposal of
tangible fixed assets
Office rent
Repairs and renewals
Light and heat
Motor expenses
Legal and professional
Insurance
Office costs
Sundry
Accountancy
Bank charges
Audit fees
Independent examination
Analysed between
Charitable activities|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
116,926
-
3,002
-
12,356
-
(13,918)
13,650
-
4,891
-
3,029
-
26,004
-
2,665
-
6,162
-
4,497
-
2,605
-
2,115
-
445
-
-
5,340
-
-
**184,429**
**5,340**
184,429
5,340|**2022**
**Support**
**costs**
**Governance**
**costs**
**2021**
**(as restated)**
**(as restated)**
**£**
**£**
**£**
**£**
116,926
104,987
-
104,987
3,002
-
-
-
12,356
10,649
-
10,649
(13,918)
-
-
-
13,650
13,650
-
13,650
4,891
1,209
-
1,209
3,029
1,841
-
1,841
26,004
7,179
-
7,179
2,665
100
-
100
6,162
5,255
-
5,255
4,497
3,207
-
3,207
2,605
9,609
-
9,609
2,115
2,898
-
2,898
445
430
-
430
5,340
-
-
-
-
-
3,600
3,600
**189,769**
**161,014**
**3,600**
**164,614**
189,769
161,014
3,600
164,614|**2022**
**Support**
**costs**
**Governance**
**costs**
**2021**
**(as restated)**
**(as restated)**
**£**
**£**
**£**
**£**
116,926
104,987
-
104,987
3,002
-
-
-
12,356
10,649
-
10,649
(13,918)
-
-
-
13,650
13,650
-
13,650
4,891
1,209
-
1,209
3,029
1,841
-
1,841
26,004
7,179
-
7,179
2,665
100
-
100
6,162
5,255
-
5,255
4,497
3,207
-
3,207
2,605
9,609
-
9,609
2,115
2,898
-
2,898
445
430
-
430
5,340
-
-
-
-
-
3,600
3,600
**189,769**
**161,014**
**3,600**
**164,614**
189,769
161,014
3,600
164,614| |---|---|---|---| ||||**164,614**| ||||164,614| Governance costs includes payments to the auditors of £5,340 (2021- £Nil) for audit fees. ## **7 Trustees** None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year or prior year. ## **8 Employees** The average monthly number of employees during the year was: |**2022**|**2021**| |---|---| |**Number**|**Number**| |9|8| - 18 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**8**
**Employees**
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**(Continued)**
**2022**
**2021**
**£**
**£**
276,206
232,210
24,594
20,150
34,485
32,370
335,285
284,730|**(Continued)**
**2022**
**2021**
**£**
**£**
276,206
232,210
24,594
20,150
34,485
32,370
335,285
284,730| |---|---|---| |||284,730| |The number of employees whose annual remuneration was more than £60,000||| |---|---|---| |is as follows:||| ||**2022**|**2021**| ||**Number**|**Number**| |60,000 - 70,000|3|-| **9 Tangible fixed assets** |**9**
**Tangible fixed assets**|| |---|---| |**Leasehold**
**improvements**
**Computers Motor vehicles**
**£**
**£**
**£**
**Cost**
At 1 April 2021
5,085
2,349
33,534
Additions
-
-
6,828
Disposals
-
-
(33,534)
At 31 March 2022
5,085
2,349
6,828
**Depreciation and impairment**
At 1 April 2021
1,759
1,289
22,763
Depreciation charged in the year
1,678
587
10,091
Eliminated in respect of disposals
-
-
(31,146)
At 31 March 2022
3,437
1,876
1,708
**Carrying amount**
At 31 March 2022
1,648
473
5,120
At 31 March 2021
3,326
1,060
10,771
**10**
**Debtors**
**2022**
**Amounts falling due within one year:**
**£**
Prepayments and accrued income
47,159|**Total**
**£**
40,968
6,828
(33,534| ||14,262| ||25,811
12,356
(31,146| ||7,021| ||7,241| ||15,157| ||**2021**
**£**
53,402| - 19 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **11 Creditors: amounts falling due within one year** |**Creditors: amounts falling due within one year**||| |---|---|---| |Other taxation and social security
Other creditors
Accruals and deferred income|**2022**
**£**
7,240
2,157
9,307
18,704|**2021**
**£**
6,192
2,186
7,315| |||15,693| ## **12 Designated funds** The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes: |**Movement**
**in funds**
**Incoming**
**resources**
**Balance at**
**1 April 2021**
**£**
**£**
Reserves Policy
-
-
Self Insurance
-
-
-
-
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Designated**
**funds**
**2022**
**2022**
**£**
**£**
Fund balances at 31 March 2022 are represented
by:
Tangible assets
7,241
-
Current assets/(liabilities)
34,384
335,000
41,625
335,000|**Transfers**
**Balance at**
**31 March**
**2022**
**£**
**£**
315,000
315,000
20,000
20,000
335,000
335,000
**Total**
Unrestricted
funds
**2022**
2021
**£**
£
7,241
15,157
369,384
357,520
376,625
372,677|**Transfers**
**Balance at**
**31 March**
**2022**
**£**
**£**
315,000
315,000
20,000
20,000
335,000
335,000
**Total**
Unrestricted
funds
**2022**
2021
**£**
£
7,241
15,157
369,384
357,520
376,625
372,677| |---|---|---| |||372,677| ## **13 Analysis of net assets between funds** - 20 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **14 Operating lease commitments** ## **Lessee** At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: |Within one year
Between two and five years|**2022**
**£**
68,886
46,156
115,042|**2021**
**£**
53,639
-| |---|---|---| |||53,639| ## **15 Related party transactions** There were no disclosable related party transactions during the year (2021 - none). ## **Remuneration of key management personnel** The remuneration of key management personnel is as follows. |Aggregate compensation
**16**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of tangible fixed assets
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in debtors
Increase in creditors
**Cash generated from operations**|**2022**
**£**
208,748
**2022**
**£**
3,948
(281)
(13,918)
12,356
6,243
3,011
11,359|**2021**
**£**
195,110| |---|---|---| |||**2021**
**£**
71,708
(29)
-
10,649
3
4,614| |||86,945| ## **17 Analysis of changes in net funds** The charity had no debt during the year. - 21 - DocuSign Envelope ID: 5AD708F3-ACA3-4E0A-B90B-29731C5CBEA7 ## **AXIS SUPPORTED LIVING** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **18 Prior period adjustment** During the year it has come to the attention of the Trustees that staff costs were not appropriately split between direct and support costs for the year ended 31 March 2021. This error has been corrected in the comparative figures. The effect is to increase direct staff costs by £179,743 and reduce support staff costs by the same amount. There is no effect on the overall costs, surplus or fund balances previously reported. It has also come to the attention of the Trustees that costs for rates on vacant properties were inaccurately reported as support costs for the year ended 31 March 2021. This error has been corrected in the comparative figures. The effect is to increase direct charitable costs by £2,962 and reduce support costs by the same amount. There is no effect on the overall costs, surplus or fund balances previously reported. - 22 -