Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
Charity registration number 1171529
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Mr A Glen | |
|---|---|---|
| Mr B Wagner-Adair | (Appointed 6 December | |
| 2023) | ||
| Mr J Brooks | (Appointed 31 October | |
| 2023) | ||
| 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 | |
| Azets Audit Services | ||
| Carlton House | ||
| Grammar School Street | ||
| Bradford | ||
| BD1 4NS | ||
| Bankers | Unity Trust Bank Plc | |
| Birmingham | ||
| B1 2HB |
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 11 |
| Statement of trustees' responsibilities | 12 |
| Independent auditor's report | 13 - 15 |
| Statement of financial activities | 16 |
| Balance sheet | 17 |
| Statement of cash flows | 18 |
| Notes to the financial statements | 19 - 26 |
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The trustees present their annual report and financial statements for the year ended 31 March 2024.
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
Lack of appropriate and affordable accommodation with accessible support is recognised as a significant contributory factor to individuals in the criminal justice system being unable to exit the ‘revolving door’ of prison and homelessness. The local and national housing crisis has continued to deepen over the last year further highlighting the need for our scheme. As Private Rent Landlords are increasingly relied upon to step in where Local Authority accommodation is in short supply, the housing crisis continues to be exacerbated by changes to the Benefits system and across the board cuts to government funding. The disparity that opened up when interest rates spiralled over the summer of 2023 resulted in mortgage rates and subsequently Private Rent levels outstripping the Local Housing Allowance available to Benefit Claimants seeking private rent accommodation. In some areas, this resulted in a bidding war for smaller more affordable properties, with private landlords and letting agents being increasingly reluctant to offer accommodation to Benefit Claimants, in particular those with criminal records, favouring professional renters instead. As the housing crisis continues, some Landlords have reportedly used the S21 No Fault eviction process to remove benefit claimants from properties and replace them with professionals or those able to pay the escalating rents resulting in groups such as prison leavers claiming Housing Benefit being further disadvantaged in their search for suitable, stable accommodation and increasing the need for the services of organisations such as Axis SL.
Axis SL remains committed to bridging the gap between homelessness and independent living for those subject to the criminal justice system that have shown motivation to change, by providing the opportunities, accommodation, skills and support historically denied to them.
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: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Achievement and Performance
-
During the last 12 months Axis SL has offered continued reassurance, not only to our Service Users but also our wider group of stakeholders such as Probation staff and West Yorkshire Police Public Protection Officers (WYPPU) who have faced the challenge of ensuring their clients find suitable, stable accommodation but also Leeds City Council who face rising homelessness levels whilst balancing their supported housing finances, that Axis SL are working effectively to ensure that our Service Users do not become unnecessarily homeless due to rent rises and barriers to accessing permanent accommodation.
-
By continuing to develop close working relationships with a range of private landlords, Leeds Probation Services Managers, DWP, Leeds City Council Hostels Department, Leeds Housing Options and Leeds City Council Homelessness Prevention and Prison Leavers Team, the Senior Managers have negotiated ‘reasonable’ and ‘acceptable’ rent levels, implemented specific referral criteria, agreed legally binding confidential information sharing agreements, developed a comprehensive and successful Needs Assessment document with linked Support and Risk Management Plans, demonstrated clear levels of the support provided through Contact Reports culminating in a streamlined Housing Benefit Claim submission process.
-
As a result of closer working relationships, particularly those built during the Supported Housing Review, along with support from the Homelessness Prevention and Prison Leavers Team and dedicated Axis SL Support Workers, more positive outcomes are now being achieved. During the 2020-21 financial period, 5 Service Users successfully moved on to Local Authority accommodation compared to 34 in the last financial year 2023-24. In 2020-21 financial period a total of 24 Service Users left the scheme and were replaced with new Service Users compared to 60 between 2023-24 which is a 150% increase in turnover. During the period 2020-21 to April 2024 the number of Service Users leaving Axis SL accommodation for permanent long-term accommodation is 106 with 74 of those successfully securing local authority tenancies. Were it not for the determination of support staff and commitment by the Senior Managers to build those positive relationships, many Service Users may have found the barriers to securing stable, good quality, accommodation too great to overcome by themselves, potentially leading to a return to prison.
-
Building on the experience of the Supported Housing Review, close Senior Management liaison with Leeds Hostels Department, an understanding of the DWP’s Supported Housing criteria, ability to submit comprehensive support records for individual claim ‘reviews’ by the DWP has enabled extended occupancy timeframes to be agreed where necessary and the quick resolution of disputes, further preventing the prospect of homelessness for those that demonstrate the need for continued engagement with supported accommodation services beyond the standard agreed timescales.
-
The charity experienced a challenging operating environment this fiscal year with the general rise in market rents not being matched by increases in Housing Benefit until April 2024. This limited access to suitable properties for accommodating service users and has resulted in negative financial and operational impacts on the CIO. The Board are working on a restructuring programme which will make the CIO more financially robust and deliver a more responsive service provision.
-
2 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Support Services
-
Axis SL Support Staff continue to provide individually tailored support plans and encourage Service User involvement at all stages, enabling support to be delivered in a structured but flexible way that can react to changes in risk and the individual needs and goals of Service Users at the earliest opportunity. As a result, the support delivered remains relevant and encourages positive progress.
-
As many have nothing more than the clothes they stand up in when they are released from custody, all Service Users receive a tenancy starter pack which includes a full set of new bedding, duvet and pillows; crockery, cutlery, kettle, toaster and pans. A food parcel can be arranged if circumstances require and as many do not have the skills to prepare a meal from scratch, a microwave is also provided in all properties.
-
With increasing utility costs and the myriad of energy providers, Service Users receive assistance setting up their initial utility accounts and receive ongoing support and encouragement to resolve issues as they arise and before they become problematic. On the whole, our properties are equipped with pre-payment meters to avoid costly build-up of utility charges, but suitable payment plans for gas, electricity and water supplies can be arranged 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 to ensure they are paying the lowest price possible.
-
Where a Service User experiences financial difficulties, applications are made to various Trust Funds for outstanding debts to be assessed and where possible written off. The reassurance of Support Worker presence helps prevent Service Users from feeling overwhelmed or powerless in the face of large organisations, which would ordinarily lead to them giving up and abandoning dealing with bills and debts.
-
As more and more organisations expect access to their services online, many of our Service Users do not have access to computers due to low income, offence restrictions or the lack of knowledge and confidence to use them. In recognition of this, laptops are provided to all Support Workers for use with Service Users in their homes during their weekly Support Sessions and have proved to be invaluable, providing the means, equipment and confidence for all our Service Users to undertake regular bidding through their Leeds Homes account and search for move on accommodation, access their benefits accounts and correspond generally with online services.
-
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.
-
For many Service Users this will be their first experience of living independently and having the responsibility of managing a tenancy. The financial responsibility of managing their finance on their income from benefits is the number one concern for many. To alleviate the worry of financial responsibility and anxiety of managing a tenancy, after an initial settling in period all Service Users are encouraged to undertake a budgeting plan with their support worker. Not only does this offer clarity, but regular reviews also help in dealing with financial issues as they arise and before they become problematic.
-
Stable tenancies with long term quality support means that Service Users feel secure enough to begin accessing community-based 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 Ingeus, 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, Leeds Activity Hub, Andys Man Club, Cognitive Behavioural Therapy and voluntary gardening work. A stable tenancy also enables Service Users to prepare for employment even if they are not ready to take on work yet. A small number of Service Users have entered into or are continuing to work full and part time whilst remaining with Axis SL. Continued support and encouragement to deal with changing DWP Benefit entitlements at the earliest opportunity whilst in employment has seen those Service Users taking responsibility and paying top up rent to Axis SL from their earnings.
-
3 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
-
Moving from Axis SL can be a daunting prospect with Council properties offering unsupported ‘bare bones’ accommodation. When Service Users are ready to move on, Support Workers continue to provide guidance and practical help with sourcing affordable furniture and white goods through either specialist organisations or the councils own resettlement schemes, transport when moving personal belongings and contacting utility companies, resulting in Service Users settling into their Local Authority tenancies more quickly and successfully. Senior Management continue to provide this outreach support to bridge the transition into independent tenancies despite no funding being available for this and this remains a challenge for the future.
-
Many of our Service Users are institutionalised, having spent much of their life in custody being told what to do and when to do it. Axis SL Support Workers play a valuable role in promoting personal involvement in each Service User’s journey into permanent accommodation and developing a sense of personal responsibility and thinking for themselves. The aim is to build confidence to ensure stability in their new accommodation such as the importance of attending DWP appointments and maintaining their benefit claims, accessing community support services, asking for help when they are struggling rather than ignoring problems, all of which will be vital to their success at sustaining their new tenancies once they no longer have the support of Axis SL.
Income Generation/Fundraising activities
-
Income comes directly from two sources. Leeds City Council Housing Benefit Department is responsible for the payment of rents whilst the DWP funds the Service Charge. Both have their own eligibility criteria that must be met in order for Axis to receive funding. Housing Benefit is awarded to each Service User and remains their claim. However, Axis has an agreement with both Leeds City Council and the Service User that all rent payments are sent directly to Axis. Rent amounts are agreed with Leeds Hostels Department and based upon the current Local Housing Authority allowance. There is an expectation that as a Supported Housing service, rents payable fall below the LHA rate and all new rental amounts are negotiated by Axis SL with both the landlord and LCC to ensure ‘best value’. Housing Benefit is also reliant on the Service User having an active claim for benefits, such as Universal Credit and any disruption to that claim can lead to a suspension of Housing Benefit. Axis work hard to ensure that Service User claims remain active and that any suspension is investigated and remedied as quickly as possible to avoid any income shortfall. The service charge is reliant on Service Users meeting the DWP’s eligibility criteria for supported housing, meeting the requirements of a Needs Assessment and evidencing support is being offered at the level expected throughout their tenancy. The charge is negotiated annually through Leeds Hostels Team.
-
No fundraising activities took place during this period.
-
Some income is generated from Service Users who have obtained employment or have personal pensions alongside state pensions and contribute to their charges from their income where Housing Benefit payments are appropriately reduced. Others are repaying historic Housing Benefit overpayments or arrears through their current benefits awards.
-
4 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Principal Risks and Uncertainties
-
Potential for changes in Government and Local Authority funding policy.
-
i. An increase in funding per claim in line with inflation, has been approved in April every year since Axis SL was formed. An increase of 4% has already been implemented for 2024-25 and therefore funding policy remains stable and this risk appears minimal.
-
i. Close working relationships between Senior Management and LCC/DWP departments ensures Axis SL is able to adjust and demonstrate compliance with any changes in policy quickly and effectively as demonstrated in January 2023 with the design and implementation of new procedures and documentation, close adherence to referral criteria and robust selection procedures, resulting in all Claims being approved on first submission.
-
i. Furthermore, the outcome of DWP reviews meetings in 2023-24 resulted in individual Service Users having their time and funding on the scheme extended successfully which demonstrates our ability to adapt to changes in government policies and maintain the best outcome for our Service Users.
-
i. Rapidly increasing turnover of Service Users successfully coming through the scheme, whilst being a positive outcome, has cost implications for the organisation with increased expenditure and reduced income accordingly. For example, increased turnover generates more property void periods and associated costs, Senior Managers’ time managing the referrals process and systems for new Service Users coming onto the scheme, increased Support Worker time managing outreach support for those leaving the scheme, all whilst income is reduced due to there being no Housing Benefit or Service Charge received during the time the property is unoccupied and rent to the Landlord still guaranteed.
-
i. The Housing Crisis and increasing pressures on local authorities and Probation Services to find short term and emergency places to achieve their targets, has been placing pressure on Axis SL Managers to provide a more general needs homelessness service, potentially diverting the scheme away from it’s original niche service. However, Senior Management are focused on maintaining the original aims and objectives to support a specific group who have historically been disadvantaged in general needs housing provision.
-
Landlords potentially leaving the scheme due to uncertainty in the housing market.
-
i. Increased regulation and certification of Private Rent accommodation being introduced by Central Government and Selective Licensing Schemes being adopted by Leeds City Council have had limited impact on those Landlords on the Axis SL scheme due to our continued criteria for taking only good quality properties and committed Landlords. During recent Selective Licencing Inspections on 4 properties on the scheme only a few minor improvements were required which were completed immediately by the Landlords and therefore this risk also appears minimal.
-
ii. The Renters Reform bill which has been going through Parliament for a considerable time does not appear to have deterred any of the Landlords on the Scheme and removal of the S21 Notices on Assured Shorthold Tenancy Agreements could make our support services more attractive to Landlords due to their Agreement with Axis SL being a Company Let Lease with our Service Users being on a License to Occupy, managed by Axis SL. Therefore, S21 Notices and their removal does not affect Landlords on our scheme. However, leaving the scheme and taking on tenants on Assured Shorthold Tenancies themselves would then become an issue to consider particularly as removal of S21 Notices has been a significant promise in the Manifestos of both major parties in the General Election due to be held on 4[th] July 2024.
-
5 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
-
Lack of available appropriate properties within rent limits if Local Housing Allowance (LHA) remains static and achievable rents continue to rise.
-
i. As rent levels on the open market saw a sharp increase in the second half of this reporting period, when interest rates rose sharply and consequently mortgage payments rose sharply in parallel, some Landlords introduced rent rises to bridge the gap between rental income and mortgage payments. Static LHA payments failed to meet this increase and as a result some properties were removed from the scheme by some landlords. Whilst new properties were added to the scheme, the ensuing bidding war on small, affordable properties such as the type suitable for the Axis SL scheme, led to a reduced number of properties on the scheme towards the end of the reporting period and has had a significant impact on income levels towards the end of the 2023-24 financial year.
-
iii. Since the introduction of a substantial increase in the LHA rate from 1[st] April 2024, numbers of properties on the scheme have stabilised as Senior Management have negotiated hard between Landlords and LCC to achieve mutually acceptable increases in rent levels and stemmed further property loses. Furthermore, Senior Management are in discussions with existing and new Landlords where there is renewed interest to add further properties to the scheme, with enquiries already made through word-of-mouth introductions by existing Landlords, giving firm reassurance that there is potential for the dip in property numbers and income to be redressed in the coming financial year 2024-25.
-
ii. Two properties which have had ongoing structural issues have had to be returned to Landlords where appropriate improvements have not been possible or carried out as part of our ongoing policy to maintain a good standard of accommodation for Service Users and our policy on this issue has remained constant in line with our Charity Aims and Objects.
-
Over saturation within specific areas of the city.
-
i. Close liaison with NPS and WYPPU, effective property management and ensuring new Landlords in different areas come onto the scheme continue to limit this risk.
-
6 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Leeds City Council Supported Housing Services Review
-
As a result of the Supported Housing Review, in January 2023 new documentation was required to prove eligibility at the point of application and in order for Claims to be approved through Leeds City Council Hostels department. Due to the hard work and diligence of Axis SL Senior Managers in developing a comprehensive Needs Assessment document, completing thorough face to face Needs Assessment Interviews with potential Service Users, linked Support Plans and electronic submission of claims, every claim submitted has been approved on first submission and without delays in processing and payment. Axis have not experienced any application rejections as has been the experience of some other organisations who have subsequently approached Axis SL Senior Managers for advice on this process.
-
Furthermore, during the Supported Housing Review, persistence and determination by our Operations Director in questioning the review process and the closing and suspension of claims for some of our longterm Service Users, seems to have had an affect with increased acknowledgement within Housing Benefit that some Service Users have additional barriers to securing permanent accommodation beyond their initial support needs. As a result, Senior Management have been able to secure longer terms for some individuals to remain on the scheme, when recent claim ‘reviews’ by DWP have threatened their funding withdrawal.
-
When subsequently conducting claim ‘reviews’, Housing Benefit staff have recognised that Axis SL staff and Service Users are working hard to meet the agreed 2 year timescale for funding on the Axis SL scheme, shown in the evidence provided for support offered by our Support Workers to enable Service Users to comply with the bidding process. Close liaison between our Operations Co-ordinator and Housing Options Prisons Leavers team ensures correct banding is achieved at the earliest opportunity and all supporting documentation is collected and submitted appropriately through the correct electronic channels which many of our Service Users feel unable to tackle independently. This has resulted in a continued increase in the number of Service Users being offered permanent local authority tenancies with Leeds City Council and move on from Axis SL within the DWP’s agreed 2 year timescale during this accounting period.
-
However, Senior Management remain determined to ensure that the focus on moving Service Users on within this shorter period of time is not 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 whose workload has increased as Service Users move more quickly through the Axis SL pathway to permanent accommodation, we are confident this change in expectation is being managed and we are continuing to achieve positive outcomes for increasing numbers of our Service Users.
Financial review
The results of the year to 31 March 2024 are set out in the Statement of Financial Activities.
Incoming resources excluding investment income totalled £1,036,828 (2023: £933,120) from a portfolio of 78 properties. Using this as a benchmark going forwards will give a good indication of the financial success of the charity.
Expenditure is £1,065,691 (2023: £987,187). It is hoped that through improved relations with the local authority and landlords that expenditure will become more efficient.
Overall the charity had a deficit of £28,863 (2023: £54,067) in the period.
The funds at 31 March 2024 £293,695 (2023 £322,558).
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 2024 are set out in the balance sheet.
- 7 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
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.
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. This equates to £284,040.
-
Surplus funds are being held separately to operating capital to cover the funding necessary to support the Policy.
Surplus funds are being held separately to operating capital to cover the funding necessary to support the Policy. However, the challenging financial environment experienced by the organisation over the last 18 months has reduced the amount available to cover the reserves policy. The level of reserves being held has however, provided the protection needed to enable the organisation to ride this turbulent period successfully with no impact on those Service Users on the scheme or interruption to support.
The Board of Trustees and Senior Managers expect that the increase in LHA and more stable housing market in the coming year will result in an increase in the number of properties on the scheme and therefore increased income for the next financial period and along with future plans for organisational streamlining, there is opportunity for the Reserves Fund to return to previous levels.
Income Generation/Fundraising activities
-
Income comes directly from LCC, Housing Benefit Dept. and DWP
-
No fundraising activities took place 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 appropriately reduced. Others are repaying historic Housing Benefit overpayments or arrears through their current benefits awards.
Principal Risks and Uncertainties
-
Potential for changes in Government and Local Authority funding policy as budget cuts continue. However, the 2022 Supported Housing Review has been completed and appropriate adjustments have been made to procedures to ensure all claims will be met going forward. Furthermore, as increased funding in line with inflation has been agreed for 2023-24 funding continues to be stable going forward.
-
Landlords potentially leaving the scheme due to uncertainty in the housing market. But whilst new properties continue to be offered to the scheme this risk remains minimal. However, changes being introduced with the Renters Reform bill during 2023-24 period could see some Landlords leaving the industry however, removal of the S21 Notices on Assured Shorthold Tenancy Agreements could make our support services more attractive to Landlords.
-
Lack of available appropriate properties within rent limits as Local Housing Allowance remains static and achievable rents continue to rise. However, increased rent levels are currently being met by Housing Benefit and LCC therefore risk remains minimal at present but may increase if rent levels continue to rise sharply and landlords remove properties from the scheme to achieve higher open market rents.
-
Over saturation within specific areas of the city. However, close liaison with NPS and PPU, effective property management and ensuring new landlords come onto the scheme will limit this risk.
-
8 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Plans for future periods
- a. Increase property numbers on the scheme and foster new housing stock from Landlords who are committed to being socially responsible in their rental businesses and compliant with Government regulation.
ii. Build on increased interest in the scheme since changes to LHA rates were implemented, promoting the benefits of the scheme to attract new Landlords through active canvassing of existing Landlords and greater external networking by Senior Managers to increase opportunities within our network of stakeholders.
iv. Ensure the quality of accommodation provided by Axis SL remains in line with requirements of Selective Licensing Schemes being introduced in the Leeds area by liaising closely with Landlords to prevent potential future loss of properties from the scheme.
iii. Minimise expenditure and work closely with Landlords to ensure property related costs continue to be appropriately allocated between Axis SL and Landlords responsibilities to ensure best use of resources and balancing budgets.
ii. Maximise income by maintaining close liaison with LCC and DWP departments to ensure effective submission of claims, compliance with eligibility criteria and processing of payments at the earliest opportunity whilst ensuring those Service Users who have additional barriers to accessing suitable move on accommodation have their claims and access to our support services extended appropriately.
-
ii. Ensure increased occupancy turnover remains sustainable with Senior Managers working closely with all staff to streamline front line procedures, increase efficiency, effectiveness and best practice whilst continuing to develop relevant support to Service Users.
-
a. Identify and submit applications for grant funding to cover those items now identified and clarified in the LCC Housing Support Services Review as ‘ineligible’.
-
b. Restructure the organisation to align resources with operational needs whilst reducing the cost of overheads and ensuring the CIO is more financially robust and better able to navigate any market headwids.
-
c. Further develop a robust Board of Trustees and ensure skills are relevant to support Senior Managers in maintaining the Charity Objects.
-
d. Ensure Axis SL’s long-term future through the new Board of Trustees commitment to working closely with Senior Managers to develop effective policies and procedures and ensure Axis SL builds on it’s successful beginnings, addresses the current challenges in the Housing Crisis and develops into a managerially robust and sustainable organisation.
-
9 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Structure, governance and management
The charity is a Charitable Incorporated Organisation by guarantee 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:-
-
b. Providing accommodation to high risk, vulnerable and socially disadvantaged individuals and particularly those subject to the criminal justice system; and
-
c. Providing support and assistance to those individuals to enable them to manage and maintain their tenancy.”
Over the 2023-24 accounting period the Board of Trustees has seen 3 resignations. One Trustee resigned following a change in personal circumstances. Two Trustees, including the Chairperson, resigned following a ‘conflict of interest’ issue which arose. Two new Trustees have been recruited and have brought a wealth of additional expertise to the Board including experience of working within Leeds City Council Housing Department, current employment in a senior role with a large national charity in the housing sector and also legal training. An existing Trustee has been voted in as the new Chairperson, bringing continuity to the Board. Furthermore, changes to the Board have brought a fresh approach to the Governance of the organisation and the support it offers to the Senior Management Team at a time of change in the Housing Sector and following a year of increasing challenges for the organisation itself. As part of this fresh approach, strategic Policies and Procedures are being reviewed and extended in line with the Charity Commission’s changes to the annual reporting requirements in 2023.
The trustees who served during the year and up to the date of signature of the financial statements were:
| Mrs G Prashar | (Resigned 12 March 2024) |
|---|---|
| Mr S Spence | (Resigned 13 September 2023) |
| Mr W Beecroft | (Resigned 13 September 2023) |
| Mr A Glen | |
| Mr B Wagner-Adair | (Appointed 6 December 2023) |
| Mr J Brooks | (Appointed 31 October 2023) |
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.
Trustees are recruited through the Reach Volunteering website which is a nationally recognised site for such appointments. Applicants supply their CV's and have a phone interview followed by a face to face meeting with other Trustees. If suitable they are invited to the next Trustee meeting and voted onto the Board at that point. The term of appointment is 4 years which is detailed in the Constitution. The new Trustees undergo ID verification and sign the Trustee Eligibility Declaration form and an Auto Disqualification Declaration with guidance supplied.
The Board of Trustees continue to delegate their powers for day-to-day management of the CIO to a Senior Management Team of three. However, one senior manager is currently on long term sickness absence and the Board are working closely with our external employment support service Peninsula to manage the return-to-work process.
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.
- 10 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
At present charity does not have a set of policies and procedures that relate specifically to Trustees induction and training.
Trustees receive all documents in accordance with Constitution and Charity Commission rules which are CC3 Essential Trustee Guidelines; CIO Constitution; Minutes of the previous Trustee meeting and last set of signed Financial Statements and in Aug 2021 Charity conducted a skills audit of all Trustees to assess the strengths and weaknesses of the Board of Trustees.
Our Senior Management Team had their pay reviewed in July 2020 by our then HR specialist Trustee who conducted a thorough Benchmarking exercise using Industry equivalent posts and also looked at performance measures across the period of setting up of the Charity over the previous 3 years for each of the 3 SMT members and an appropriate rate was agreed by the Board of Trustees. SMT salaries are currently subject to the annual pay rise which reflects any annual funding increase approved by our funders in line with all other staff in the organisation.
Auditor
During the year the Azets Audit Services Limited, trading as Azets Audit Services Limited were appointed as auditors following their acquisition of Naylor Wintersgill Limited, on 1 May 2023.
A resolution proposing that Azets Audit Services Limited be reappointed as auditor of the company will be put at a General Meeting.
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 A Glen Trustee
23 January 2025
- 11 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 MARCH 2024
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.
- 12 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
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 2024 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 2024 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.
-
13 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
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.
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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
-
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
-
Reviewing minutes of meetings of those charged with governance;
-
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
-
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
-
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Other matters
- 14 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF AXIS SUPPORTED LIVING
Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
==> picture [91 x 37] intentionally omitted <==
Azets Audit Services
23 January 2025
Chartered Accountants Statutory Auditor
Carlton House Grammar School Street Bradford BD1 4NS
Azets Audit Services 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.
- 15 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
| Unrestricted Unrestricted | Unrestricted Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2024 | 2023 | ||
| Notes | £ | £ | |
| Income from: | |||
| Charitable activities | 3 | 1,032,885 | 932,605 |
| Investments | 4 | 3,943 | 515 |
| Total income | 1,036,828 | 933,120 | |
| Expenditure on: | |||
| Charitable activities | 5 | 1,065,691 | 987,187 |
| Net expenditure for the year/ | |||
| Net movement in funds | (28,863) | (54,067) | |
| Fund balances at 1 April 2023 | 322,558 | 376,625 | |
| Fund balances at 31 March 2024 | 293,695 | 322,558 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 16 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
BALANCE SHEET
AS AT 31 MARCH 2024
| Notes Fixed assets Tangible assets 10 Current assets Debtors 11 Cash at bank and in hand Creditors: amounts falling due within one year 12 Net current assets Total assets less current liabilities Income funds Unrestricted funds Designated funds 13 General unrestricted funds |
2024 £ 74,158 237,787 311,945 (21,131) 284,040 9,655 |
£ 2,881 290,814 293,695 293,695 293,695 |
2023 £ 63,895 275,193 339,088 (20,467) 264,481 58,077 |
£ 3,937 318,621 |
|---|---|---|---|---|
| 322,558 | ||||
| 322,558 | ||||
| 322,558 |
The financial statements were approved by the Trustees on 23 January 2025
Mr A Glen Trustee
- 17 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024
| Notes Cash flows from operating activities Cash absorbed by operations 17 Investing activities Investment income received Net cash generated from investing activities Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2024 £ 3,943 |
£ (41,349) 3,943 - (37,406) 275,193 237,787 |
2023 £ 515 |
£ (66,251) 515 - (65,736) 340,929 275,193 |
|---|---|---|---|---|
- 18 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
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 page 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. 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.
- 19 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
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.
- 20 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
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.
- 21 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
3 Charitable activities
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Housing benefit and support | 1,024,446 | 911,277 | |
| Service user rent | 8,439 | 21,328 | |
| 1,032,885 | 932,605 | ||
| 4 | Investments | ||
| **Unrestricted ** | Unrestricted | ||
| funds | funds | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Interest receivable | 3,943 | 515 | |
| 5 | Charitable activities | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Staff costs | 265,723 | 225,385 | |
| Rates and landlord rents | 518,245 | 498,193 | |
| Repairs of tenanted properties | 46,376 | 37,571 | |
| Tenant expenses | 14,309 | 16,039 | |
| Rates on Vacant Properties | 5,293 | 4,900 | |
| 849,946 | 782,088 | ||
| Share of support costs (see note 6) | 210,045 | 199,225 | |
| Share of governance costs (see note 6) | 5,700 | 5,874 | |
| 1,065,691 | 987,187 |
- 22 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6 Support costs
| Staff costs Staff training Depreciation Office rent Repairs and renewals Light and heat Motor expenses Legal and professional Insurance Office costs Sundry Accountancy Bank charges Audit fees Analysed between Charitable activities |
Support costs Governance costs £ £ 137,082 - 812 - 1,056 - 15,352 - 2,124 - 4,299 - 26,581 - 7,605 - 7,082 - 3,294 - 1,857 - 2,420 - 481 - - 5,700 210,045 5,700 210,045 5,700 |
2024 £ 137,082 812 1,056 15,352 2,124 4,299 26,581 7,605 7,082 3,294 1,857 2,420 481 5,700 215,745 215,745 |
Support costs Governance costs £ £ 128,495 - 1,932 - 3,304 - 14,250 - 2,776 - 3,530 - 25,736 - 5,450 - 6,070 - 3,535 - 2,605 - 2,024 - 499 - - 5,874 199,225 5,874 199,225 5,874 |
2023 £ 128,495 1,932 3,304 14,250 2,776 3,530 25,736 5,450 6,070 3,535 2,605 2,024 499 5,874 |
|---|---|---|---|---|
| 205,099 | ||||
| 205,099 |
Governance costs includes payments to the auditors of £5,700 (2023- £5,874) 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:
| Employment costs Wages and salaries Social security costs Other pension costs |
2024 Number 10 2024 £ 335,251 27,061 40,493 402,805 |
2023 Number 9 |
|---|---|---|
| 2023 £ 293,499 24,421 35,960 |
||
| 353,880 |
- 23 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
8 Employees
(Continued)
During the year £nil was paid to one employee under a settlement agreement (2023 £2,000l).
| The number of employees whose annual remuneration was more than £60,000 | ||
|---|---|---|
| is as follows: | ||
| 2024 | 2023 | |
| Number | Number | |
| £60,000 - £70,000 | 3 | 3 |
9 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
10 Tangible fixed assets
| Leasehold improvements Computers Motor £ £ Cost At 1 April 2023 5,085 2,349 At 31 March 2024 5,085 2,349 Depreciation and impairment At 1 April 2023 5,085 2,252 Depreciation charged in the year - 96 At 31 March 2024 5,085 2,348 Carrying amount At 31 March 2024 - 1 At 31 March 2023 - 97 11 Debtors Amounts falling due within one year: Trade debtors Prepayments and accrued income |
vehicles £ 6,828 6,828 2,988 960 3,948 2,880 3,840 2024 £ - 74,158 74,158 |
Total £ 14,262 |
|---|---|---|
| 14,262 | ||
| 10,325 1,056 |
||
| 11,381 | ||
| 2,881 | ||
| 3,937 | ||
| 2023 £ 2,738 61,157 |
||
| 63,895 |
- 24 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
12 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 |
2024 £ 7,726 991 12,414 21,131 |
2023 £ 7,471 2,802 10,194 |
| 20,467 |
13 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:
| Balance at 1 April 2022 Transfers Balance at 1 April 2023 £ £ £ Reserves Policy 315,000 (70,519) 244,481 Self Insurance 20,000 - 20,000 335,000 (70,519) 264,481 Analysis of net assets between funds Unrestricted funds Designated funds 2024 2024 £ £ Fund balances at 31 March 2024 are represented by: Tangible assets 2,881 - Current assets/(liabilities) (29,001) 347,622 (26,120) 347,622 |
Transfers Balance at 31 March 2024 £ £ 39,559 284,040 (20,000) - 19,559 284,040 Total Unrestricted funds 2024 2023 £ £ 2,881 3,937 290,814 318,621 293,695 322,558 |
Transfers Balance at 31 March 2024 £ £ 39,559 284,040 (20,000) - 19,559 284,040 Total Unrestricted funds 2024 2023 £ £ 2,881 3,937 290,814 318,621 293,695 322,558 |
|---|---|---|
| 322,558 |
14 Analysis of net assets between funds
- 25 -
Docusign Envelope ID: 30CFD450-84F4-4849-B40A-ACE0F6F81893
AXIS SUPPORTED LIVING
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
15 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 |
2024 £ 31,133 16,182 47,315 |
2023 £ 31,037 16,731 |
|---|---|---|
| 47,768 |
16 Related party transactions
There were no disclosable related party transactions during the year (2023 - none).
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
| Aggregate compensation 17 Cash generated from operations Deficit for the year Adjustments for: Investment income recognised in statement of financial activities Depreciation and impairment of tangible fixed assets Movements in working capital: (Increase) in debtors Increase in creditors Cash absorbed by operations 18 Analysis of changes in net funds The charity had no debt during the year. |
2024 £ 237,568 2024 £ (28,863) (3,943) 1,056 (10,263) 664 (41,349) |
2023 £ 227,105 |
|---|---|---|
| 2023 £ (54,067) (515) 3,304 (16,736) 1,763 |
||
| (66,251) | ||
- 26 -