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2023-03-31-accounts

Docusign En¥ÈlopÈ ID". 18E225A4-A43E4650-BES8-62E6FEDDDE23 NoR￿00D Taking on life together NORWOOD SCHOOLS LIMITED (A Charitable Company Limited by Guarantee) Trustees. Annual Report and Financial Statements Forthe year ended 31 March 2023 Register8d Charity No. 1059050 Register8d Company Number.. 00516901

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Contents Page
Charity Information 3
Trustees’ Annual Report (incorporating the Strategic Report) 4
Independent Auditor’s Report 19
Statement of Financial Activities 24
Balance Sheet 25
Notes to the financial statements 26-42

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Charity Information

Trustees and The directors of the charity are its trustees for the purpose of charity law. Directors The trustees that served during the financial year and since the year end are: Neville Kahn Ben Freeman Tim Isaacs Senior Leadership Chief Executive Officer Team - to 11.11.22 Beverley Jacobson - from16.1.23 Naomi Dickson Director of Finance and Corporate Services Patrick Murphy Director of Engagement - to 20.8.22 Hazel Kaye Director of Fundraising, Communications and Community Engagement - from 12.10.22 Liz Jessel Director of Services and Development - to 1.4.23 Caroline Taylor - from 1.4.23 Hannah Barnett Director of Human Resources Steve Bennett Director of Change Management - to 31.1.23 Johanna Day Director of Risk and Compliance Philippa Shirtcliffe Director of Major Projects - from 1.4.23 Caroline Taylor Company Secretary Patrick Murphy Auditors Grant Thornton UK LLP, 30 Finsbury Square, London EC2A 1AG Investment Managers CCLA Investment Management Ltd, 85 Queen Victoria St, London EC4V 4ET Sarasin & Partners LLP, 100 St Paul’s Churchyard, London EC4M 8BU Bankers Barclays Bank plc, 126 Station Road, Edgware, HA8 7RY Principal and Registered Office Broadway House, 80-82 The Broadway, Stanmore, HA7 4HB

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Trustees’ Annual Report (incorporating Strategic Report)

The trustees are pleased to present their annual report and audited financial statements for the year ended 31 March 2023. These statements comply with the Charities Act 2011 and the Charities (Protection and Social Investment) Act 2016, the Companies Act 2006, the Memorandum and Articles of Association, and the 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 – FRS102 (effective 1 January 2019).

About Norwood

Founded in 1795, Norwood is the oldest Jewish charity in the UK. We support people with learning disabilities and autism and offer support to vulnerable children and families. The ways we work continually evolves but our motivation remains the same: to do everything we can to help people live their best possible lives.

Each year, Norwood supports the needs of more than 2,500 people, including some of the Jewish community’s most vulnerable children, adults and families.

Our Services

Norwood’s sector-leading services celebrate our Jewish culture and are run in accordance with Jewish vales but are open to all who need our support. Our services fall into two main categories namely: children and families facing challenges and anyone with a learning disability or autism.

We offer a range of programmes for children and the whole family experiencing a range of social, educational, and mental health challenges. These include family support, parenting programmes, support groups for siblings and parents of children with learning disabilities, short breaks for families who have children with complex needs, specialist therapy, counselling, and psychotherapy. Our adult services comprise registered care and supported living homes for those with a learning disability or autism, and other associated complex needs.

Children & Family Services

The Children and Family team has returned to delivering a range of 'in person' one-on-one and group support sessions during the past year (since the Covid-19 pandemic), whether based at the Kennedy Leigh Family Centre or in a school environment.

Our holistic offer provides practical, social and emotional support to families impacted by learning disability and autism. This includes:

We continue to offer advice, support and signposting to the community through our direct-to-user advice line. We also provide generic groups and courses, including:

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Our Psychotherapy and Counselling service delivers:

Our Schools & Education team provide a range of services to schools and the wider community.

Adult Services

Compliance and Operational Risk Management

Risk is inherent in our operations and the decisions made in pursuit of our charitable goals. The Board is responsible for the nature and extent of the principal risks that we are willing to take. It reviews the principal risks to the organisation and ensures that risks are effectively managed through our governance structure.

We have a comprehensive risk management framework to identify and manage financial, strategic, operational, and regulatory risks that may impact our ability to meet Norwood’s objectives. Our risk management procedures are bench marked against best practice found within social care providers and other not-for-profit organisations.

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We identify and manage risks in the following ways:

Quality and Compliance

During 2022-23 Norwood, in preparation for CQC’s changing approach to inspection, has changed the audit process to ensure it is focused on the experience of people using our services and working within our services. In preparation for the required digitalisation of care and support plans, the team has been working to standardise the paperwork used by managers within our services and to ensure our policies and procedures meet best practices and are accessible for all.

In 2022-23, as part of our Positive Behaviour Support (PBS) strategy, we re-established the Positive Behaviour Support Panel, conducted a review of the PBS Training and have an experienced core group of PROACT-SCIPr practitioners supporting our services and training our staff. We successfully recruited a Practice Improvement Manager and Positive Behaviour Support Manager to work with the people we support and our staff. In 2023, we commissioned an audit of our PBS approach and will be working with a board-certified behaviour analyst to provide clinical supervision to our PBS practitioners to ensure positive outcomes for the people we support.

Safeguarding

In 2022-23, following a comprehensive training programme, we re-introduced face-to-face safeguarding training at Levels 2 and 3. We provided managers with fact finding training led by an external training specialist and the senior managers attended Level 4 designated lead training to enhance their knowledge and skills further.

In 2023 we commissioned the Ann Craft Trust to carry out a strategic review of our safeguarding processes. This will involve meeting with staff, volunteers, people we support and trustees. We will use the learning from the review to strengthen our approach to safeguarding.

Health and Safety

In 2023, we ran an awareness campaign with operational staff to develop their understanding of accidents, incidents and near-miss reporting and ran a series of workshops to improve practice. This has been supported by managers undertaking the Institute of Occupational Safety & Health training to deepen the registered manager and locality manager's knowledge. In addition, every incident is reviewed and reported upon weekly with monthly themes and trends shared.

Data Security and Data Protection

In 2022 Norwood successfully completed the Data Security and Protection Toolkit and submitted as ‘standards met'. We have fulfilled our legal responsibility throughout 2022/3 in terms of data protection and security in line with the Information Commissioners Code of Practice.

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Our Goals, Challenges and Achievements

  1. Overview and Adults Services Restructuring

Our new Chief Executive Naomi Dickson assumed the role in January 2023 and began the process of reviewing the organisation.

2. Pay Review and Financial Sustainability

The Board of Trustees approved a recommendation by the Senior Leadership Team to significantly increase Support Worker pay rates. On 1[st] February 2023 the hourly rate for all permanent and bank Support Workers was increased to £11.50 per hour, which represented an average 12.7% increase for all frontline care staff. This uplift in Support Worker pay represents an increase in operating costs of £1.4 million a year for Norwood, at a very challenging time for charities and for fundraising. The move was made ahead of the National Living Wage increase to £10.42 per hour, which became mandatory on 1[st] April 2023. In the interim, and before introducing the new salary scale, Norwood made a series of one-off Cost of Living Relief payments as a short-term solution to help support front-line care staff through this latest crisis.

We simultaneously embarked on a comprehensive and systematic review of all current care packages for the adults Norwood supports. We have been working to redress the discrepancy between the cost of the statutory services we provide and the funding that we receive from the Local Authority, in line with their obligations to provide the care and support required by the individual in the most appropriate environment. We have embarked on a systematic process of working to resolve the funding issues identified, to help ensure that the required funding from Local Authorities is in place to support the level of care we are committed to providing. This renegotiation has already borne fruit, as we continue to work with all relevant agencies and residents’ families. This work will continue into 2023-24.

3. Fundraising

There were some key successes throughout the year. The London Marathon saw our biggest team compete with 26 runners and £78,000 raised and we launched a new cycle Challenge in Botswana.

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We hosted our first in-person Property Lunch since the start of the Covid-19 pandemic, and ran a second matched funding campaign, which reached its budgeted target of £2,100,000. Other successful corporate and community events included YN Property Awards, the Distressed Investing Dinner, the first ever Norwood Carnival, and our Golf Day.

However, we also experienced some real challenges, largely impacted by the cost of living crisis. Total trust income for the 22/23 financial year was approximately two thirds of a budgeted £1.4m. The shortfall was due to a shift in many Trusts’ focus to support smaller grassroots charities. Our Philanthropy Team continued to focus on improving the stewardship of our donors, maximising all our fundraising opportunities, and our Young Norwood fundraiser joined their team to ensure the pipeline of future mid-level and major donors is well-stewarded.

4. Recruitment and Retention

Despite well documented care sector-wide staffing challenges, Support Worker recruitment and retention performance in the year ended 31[st] March 2023 was significantly improved on prior year. Retention in particular was markedly better, with permanent Support Worker turnover 41% lower than in 2021/22.

As mentioned above, in February 2023, a 12.7% increase was applied to Support Worker pay rates across the charity to a base rate of £11.50 per hour, and early indications are that this has materially increased the volume of employment applications.

In March of the same year, Norwood participated in a national staff wellbeing and engagement survey operated by an independent charity consultancy. In total, 40% of the workforce responded and the management team have developed an action plan to address key findings, which in turn should further enhance recruitment and retention performance in 2023/24 and beyond.

5. Ravenswood Village

In October 2022, we announced an in-principle decision to transfer operations at Ravenswood Village from Norwood to an alternative provider. Members of Norwood’s Board of Trustees and Senior Leadership Team offered staff and family members the opportunity to scrutinise the plans for the transfer and the future operations objectives at the Village. Subsequent to this, due to the worsening economic climate, the previously-communicated process of due diligence that is required in order to complete the transfer of operations was delayed, and we updated stakeholders to inform them that the process of transfer was taking longer than previously anticipated. We are continuing to keep both staff and families of people supported at the Village updated as to the latest timing of the intended transfer.

In the meantime, Norwood remains fully committed to providing high standards of care for the residents at Ravenswood Village. We welcomed five new residents into the Village in 2022-23 and continue to explore appropriate referrals to fill voids across the Village. We have also reviewed the needs and care plans of existing residents, facilitating a transfer to other homes that more appropriately meet their needs, where necessary, which included transferring residents of Kadimah to other provision in the Village to facilitate extensive planned refurbishment of that home, to maximise capacity in the future.

Our Strategic Priorities and Focus for 2023/2024

Children and Family Services Review

Following an extensive review on our future Children & Family service provision, a decision was taken not to renew the current statutory and private educational services that Norwood provides beyond the end of this academic year. This forms part of Norwood’s commitment to ensuring we focus our

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resources to meet the needs of the community’s children and families as possible, specialising in holistic support for families of children and young people with learning disabilities and autism. We are conducting a review of our short-breaks provision, which will see us pause overnight shortbreaks services over the Summer 2023 period, though day services will remain. This will allow us to continue conversations with Local Authority Commissioners to identify where the need for shortbreaks lies. We will also conduct surveys of existing users of short-breaks services, as well as our broader children and family service users to determine what they would like to see from our provision to ensure it meets the needs of the community.

We have appointed a new Head of Children & Family Services, who will take up the role in Summer 2023 and who will lead on a review of our children and family operations structure and planning.

Adult Services Review

We plan to embed the adult services staffing restructure across the organisation. We will continue to work to review, update and ensure care packages accurately reflect each individual’s care needs discussing the costs with the relevant local authorities, as well as upgrading properties.

We are working to develop consistent staff retention, particularly across our operational services, to ensure we are able to create sustained relationships between staff and service users.

Our Chief Executive, supported by the Senior Leadership Team is planning to undertake a review of Norwood’s vision, mission, values and strategy review in the second quarter of the financial year, which will be partly informed by an organisation-wide series of conversations reflecting on what Norwood does well and what can be improved, comprising staff, service users, families and volunteers.

Ravenswood Village

The Board of Trustees is committed to continuing to engage with the third-party provider who is interested in taking over the operation of services at the Village. In the meantime, supporting the residents who live there alongside their dedicated staff continues to remain a priority, with new residents settling in well.

Section 172(1) Statement Of The Companies Act 2006

During the course of their duties, the trustees have had full regard for their obligations in promoting the success of the organisation. Norwood’s detailed charitable objects are contained within its memorandum and articles and in keeping with these, the trustees’ strategic priorities ensure that the charity’s activities are carried out for the public benefit. This has been further clarified in the following sections of this report:

Employee Engagement

The ongoing challenges presented by the coronavirus pandemic necessitated that we consider new ways of promoting engagement with staff throughout the organisation. In front line services, operations managers have been supported to improve communications through the introduction of a monthly Staff Bulletin, issued by the Director of Services & Development, with the objective of improving the quality and consistency of engagement with and amongst staff, and as a means of

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creating a formal channel for upward communication. The executive management team has developed an organisation-wide leadership development initiative called, ‘Lead to Succeed’ to support managers in improving their performance with respect to staff engagement and motivation. Within the central functions, as most organisations, we have now adopted hybrid (office and home based) working practices, which means less face-to-face interaction, as a consequence of which we have sought ways to better use technology and online systems of working. Significant investment in our IT infrastructure has significantly improved engagement, knowledge sharing, and problem resolution, and in many instances the increased use of Teams meetings has enhanced the quality and effectiveness of cross-functional interactions.

Our Volunteers

During 2022/23, our regular volunteering activities in homes across London and Ravenswood and at the Kennedy Leigh Centre were able to resume, following the lifting of lockdown restrictions and infection control measures.

Much of our calendar of volunteer-led activities were able to recommence in-person, including extensive Mitzvah Day activities to deliver daily and seasonal volunteer-led activities direct to our residents.

Our two Charity shops (Stanmore & Southgate) are both full of volunteers 6 days a week, 2 shifts per day and both shops are running a full Duke of Edinburgh programme to students over 14 years.

Volunteers played an integral part in Norwood’s Matched Giving Campaign both for the telethon and as team leaders. We have been able to invite our volunteers back into Broadway House in Stanmore this year and have seen a growth in the number of placements and new recruits who support Head Office staff.

We are delivering training to new staff starters monthly on the importance of volunteering to Norwood and the people we support, the process of requesting new volunteers for their service and volunteer management within the organisation.

Business Relationships

Norwood works closely with its customers and donors with relationships, some of which span several decades to ensure we are providing a high level of care to the people we support. Norwood values its suppliers and has multi-year contracts with key suppliers. Norwood reports its performance and practices in line with reporting requirements.

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Structure, Governance and Management

Every year, we provide direct intervention to two and half thousand individuals including children, young adults and families experiencing social, emotional and wellbeing challenges and children and adults with learning disabilities and autism. While our head office is in Stanmore, we support individuals living in more than thirty homes across London and Berkshire, we run a family centre in north-west London with hubs in both Hackney and Redbridge. This is to ensure that we can continue to provide localised and bespoke care and support. As set out in our Memorandum and Articles of Association, our charitable purposes are “to provide relief for children, young people and adults drawn primarily, but not exclusively, from the Jewish community, who are in need by reason of disability, abuse, neglect, financial hardship or other disadvantages, through providing or securing or assisting

in the provision of education, training, support, care, treatment, substitute family care, accommodation and/or other assistance of a charitable nature.”

Norwood Schools is governed by its Memorandum and Articles of Association. The subscribers to the Memorandum of Association were the first members of the charity. Any individual or organisation wanting to become a member has to apply to the board of trustees. The members of Norwood are entitled to attend and vote at the Annual General Meetings (AGM) and Extraordinary General Meetings (EGM). The responsibility of overseeing Norwood’s activities lies with our board of trustees which exercises all the powers of the charity other than where they are subject to restrictions imposed by Companies House, the Charity Commission, the Memorandum and Articles of Association and any special resolution. Our trustees have due regard for their specific responsibilities in respect of the charity and apply care and diligence in ensuring that the requirements of the Charities Act 2011 and the Charities (Protection and Social Investment) Act 2016 are adhered to.

Our board of trustees delegates the day-to-day management of Norwood’s operations to the Chief Executive Officer and the Senior Leadership Team. To support the crucial role of the Norwood’s board, sub-committees and service review, panels were set up with specific terms of reference and delegated authorities. Trustees are appointed for a four-year term and may serve a second consecutive term. An advisory council was set up to provide valuable advice and guidance to our board on the delivery of safe, quality and viable services. The members of our advisory council are professionals in their fields, contributing a wealth of knowledge to Norwood’s governance. While the advisory council meets once a year, the board of trustees meets at least six times in a year.

To support the overarching responsibilities of Norwood’s board, three main committees (the Corporate Services Committee, the Operational Services Committee and the Fundraising Committee) were set up with specific terms of reference and authorities delegated to them by the board. The Corporate Services Committee has since established an Audit and Risk Committee, an Investment Committee and a Property Strategy Group. The Fundraising Committee provides support in achieving our fundraising strategy and annual fundraising targets. The membership of each subcommittee is drawn from the board and a pool of lay leaders (i.e. co-optees) with relevant expertise. Committees meet at least four times a year and reported in the financial statements of Norwood Ravenswood (charity number; 1059050).

Trustees And Lay Leaders’ Recruitment and Remuneration Policy

We adopt a transparent and objective approach when recruiting our trustees and lay leaders. Arrangements are made for new members to meet the Trustees, the Chief Executive and the Senior Leadership Team, visit some of our homes and meet with some of the people we support. Our trustees are also provided with key sector updates. All are invited to attend relevant training, some of which is mandatory, to ensure they are kept abreast of prevailing changes that may affect the charity and the social care sector.

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None of our trustees or lay leaders receive remuneration, expense claims or benefits in kind for their work with the charity. They are, however, entitled to receive reimbursements of travel expenses. Any connection between a trustee and the charity’s stakeholders is declared to the board of trustees in the same way as any contractual relationship with a related party. Such disclosures are dealt with by the board and committee meetings in the form of Declaration of Interests. No allegation of fraud was raised against any trustee or lay leaders in the year. Details of related party transactions and trustees’ expenses are disclosed in Note 17 of the financial statements.

Financial Review

The operating surplus for the year was £0.4m (2022: £0.4m), before recognising unrealised revaluation losses of £0.4m (2022: gains £1.2m). This included a £9.0m grant (2022: £8.5m) received from the parent company – Norwood Ravenswood – which operates as the fundraising arm of the group of entities. At the end of the financial year, Norwood Schools generated £18.6m (2022: £19.0m) income from its core charitable activities and expended £28.0m (2022: £28.3m) on core services, reflecting a funding shortfall of £9.4m (2022: £9.3m). Whilst some of the charity’s activities are chargeable and funded by commissioning authorities such as the adults learning disability care and autism services, the charity relies on voluntary donations to deliver its children and families support services and meet the funding gap in statutory services.

Like other social care providers, Norwood Schools continues to feel the impact of the growing funding gap for adult social care from local authorities. While our London supported living services returned a contribution of £0.1m, a turnaround of £0.7m compared to the prior year, our registered care services' performance was substantially worse. We were successful at securing annual increases from some local authorities, however most local authorities we work with were not forthcoming with increases. Norwood Schools will continue to pursue operational efficiencies and maximise limited resources. During the year work was undertaken to perform an hours and pricing review for every service user, on top of annual uplifts to address cost of living increases. With this data we have begun to a take a robust approach with Local Authorities around unsustainable contracts.

Norwood took the decision in 2021, due to the challenges faced by the high street, to commence the phased closure of its retail operations. Trading from the two remaining shops generated income of £0.2m (2022: £0.3m).

Income

Total income generated in the year was £28.8m (2022: £29.1m), a £0.3m decrease on the prior year, substantially due to lower statutory income due to changes in our children’s services. 61% (£17.7m) of the charity’s income came from Adults Learning Disability Services through its supported living and residential accommodation services. 33% (£9.5m) came from donations and grants largely from the parent company while the remaining 6% came from Children and Families Services, investment and other income including our retail shops.

Expenditure

Total expenditure in the year was £28.4m (2022: £28.7m) of which 86% (£24.3m) was expended on Adults Learning Disability Services. 13% (£3.6m) was expended on Children and Families Services, and the remaining 1% on generating voluntary, trading, and investment income. Included in the cost of services is £4.7m (2022: £4.8m) support and governance costs. Staff costs (£20.4m), representing 72% of the expenditure, remains the largest spend of the charity. Efficiencies in staffing structures were achieved to counter the cost of agency staff which grew to £3.6m (2022: £2.7m).

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Reserves Policy

An important role for trustees is to manage the long-term sustainability of the charity. Norwood Schools’ reserves policy sets out the basic principles that should:

The trustees calculate the free reserves at Group level due to how the parent and subsidiary entities operate. Norwood Schools Limited acts as the operating entity within the Group structure which the parent company, Norwood Ravenswood, generates voluntary income to meet the funding gap and support the operations of the charity undertaken through Norwood Schools. The Group’s free reserves is the unrestricted income fund that is freely available after taking account of the restricted funds that have been donated and earmarked for specific projects. Understanding the nature of the funds allows trustees to identify unrestricted funds which can be spent on the core activities of the charity. As at 31 March 2023, unrestricted reserves were £27.3m whilst the free reserves of Norwood Schools was £1.0m. However, the free reserve for the Group was £4.8m (2022: £8.0m).

Free Reserves for Norwood Schools Limited

31-Mar-23 Restated 31-
Mar-22
£’000 £’000
Net assets(Total reserves) 33,265 33,342
Less restricted funds (5,987) (6,570)
Less unrestricted fixed assets (19,311) (19,842)
Less Investment Property (6,970) (7,380)
Free Reserves 997 (450)

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Free Reserves for the Group

31-Mar-23 Restated 31-
Mar-22
£’000 £’000
Groupnet assets(Total reserves) 42,447 47,472
Less Endowment fund (1,888) (1,982)
Less restricted fund (6,040) (6,622)
Less unrestricted fixed assets (19,728) (20,325)
Less Investmentproperty (9,970) (10,580)
Free Reserves 4,821 7,963

The trustees have set a target range of free reserves for the Group of 3 months or more of its annual expenditure, being £7.8m. Whilst free reserves are under the target set, Norwood has sufficient liquidity within its managed investment portfolio of £15.7m to meet its working capital requirements over the next 12 months and beyond.

Investment Policy and Performance

Norwood Schools holds investments to generate income for the furtherance of its charitable activities. The trustees adopt a Total Return investment policy to ensure potential returns are well balanced with the appropriate levels of risks. The Investment Policy Statement was reviewed by the Investment Committee during the year to ensure it remained effective and relevant given the dynamics of the investment markets and the charity’s operating environment.

The Board of Trustees has delegated the regular monitoring of investment performance against investment objectives to the Investment Committee. The Trustees understand that to generate returns, in the longer term, in excess of inflation and net of the portfolio total expenses ratio (TER), it will be necessary to expose the portfolio to a degree of risk. The trustees risk appetite for all its funds is medium risk. The TER is a measure of the total costs associated with managing and operating an investment fund. Valuation as at 31 March 2023 was £1.4m (2022: £1.5m).

Going Concern

These financial statements have been prepared on a going concern basis. The majority of Norwood Schools’ income is secure as it arises from statutory sources. However, we have modelled a 4% and 6% reduction in statutory income due to attrition rates, with 6% being an extreme case. The forecasting performed and support in the form of an intercompany grant from the parent charity endorses the accounts being prepared on a going concern basis.

Norwood Ravenswood intends to support Norwood Schools Limited for at least 12 months from the date of approval of the statutory financial statements for the year ended 31 March 2023 and has the liquidity to do so. The trustees consider this uncertainty not to be material and hence do not consider the charities ability to continue as a going concern to be at risk for at least 12 months from the signing of the accounts. Accordingly, the trustees have prepared these accounts on a going concern basis.

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Principal Risks
Risk Title
Existing Treatment and Mitigating Actions
The future of Ravenswood Continue to manage the project professionally and diligently;
being transparent with our information sharing (including timely
updates regarding our financial position)
- Maintaining close engagement with potential partners and
working collaboratively where appropriate
Continue with a ‘business as usual' approach across the site to
ensure safe, high-quality services.
Village
Losses continue due to A proactive targeted approach to fee management and
increases. Engagement with Access Care to support fee
negotiations.
significant underfunding of care
hours, lack of historical fee
increases and rising costs,
including staff salaries and
regulatory requirements
Pay rates and recruitment and A 12.7% increase was applied to Support Worker pay rates
across the charity to a base rate of £11.50 per hour, and early
indications are that this has materially increased the volume of
employment applications.
Norwood participated in a national staff wellbeing and
engagement survey operated by an independent charity
consultancy. 40% of the workforce responded and
management developed an action plan to address key findings,
which should further enhance recruitment and retention
performance in 2023/24 and beyond.
retention continue to present
staffing challenges for the
organisation
Lack of regulatory compliance Quality Audit Framework in place with Key Audits, follow up and
Thematic audits taking place, with resulting action plans
developed to drive continuous improvement.
Weekly reporting on safeguarding and incident analysis is
carried out, with monthly internal reviews and trustee committee
meetings.
Face to Face Induction training is now delivered over 4 days in
the classroom, with a work-based competency assessment
required before full induction is signed off.
Governance Meetings in place for both regulated services in
which lessons are shared and risks highlighted.
with CQC and Ofsted result in
services being closed,
registration being suspended,
harm to people we support and
staff, and reputational damage

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Risk Title
Existing Treatment and Mitigating Actions
Risk of underreporting in Several external audits, recent surveys upon the changes in
service provider and the change of recent internal personnel
suggest all regulatory compliance is in place.
To mitigate the risk of under-reporting within services, a new
programme of Health and Safety support visits have
commenced by the Health & Safety Manager, as well as
monitoring via the Health and Safety Operational meetings.
A Risk, Health & Safety Committee has now been established
of senior leaders and stakeholders (including an external
industry representative) to provide additional oversight that
Norwood remains compliant with its regulatoryobligations.
services, contrary to regulatory
requirements
Historic underinvestment in IT
Pilots completed on care planning software and strategy
developed following competitive tendering process with project
commenced to implement digital care planning.
Phase 1 of a new website has been rolled out with phase at
planning stage. The development of a new intranet platform has
commenced with completion anticipated by Autumn 2023.
Work to improve the CRM applications has commenced to
improve user experience and functionality.
solutions including care
management system, intranet
and CRM has created inefficient
paper-based working methods,
contrary to best practice for adult
social care provision.

Streamlined Energy and Carbon Report (SECR)

Norwood Ravenswood is required to report under the Streamlined Energy and Carbon Reporting (SECR) framework. The Trustees are committed to complying with the new mandatory UK-wide energy and carbon reporting framework which seeks to improve transparency and help reduce UK carbon emissions associated with large business and charities.

Methodology

Norwood’s footprint is calculated in accordance with the Greenhouse Gas (GHG) Protocol and Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance. 2022 Department for Environment, Food and Rural Affairs (DEFRA) emission factors have been used for all emission sources as this provides the most comprehensive list of factors available. They allow an activity to be converted into carbon dioxide equivalent (CO2e). Market based emissions factors have been sourced from each relevant supplier.

Scope

The scope of emission included natural gas, diesel (gas oil), electricity, Bio Diesel and petrol. For ease of reporting and comparison, the emission types were categorised as:

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SECR Annual Report Statement

Energy Efficiency Measures undertaken by the charity

Work to upgrade our energy efficiency during the year has included:

We anticipate that further improvements will take place during the coming year, which will include new LED lighting, insulation improvements and boiler upgrades.

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Trustees’ Responsibilities Statement

The trustees (who are also directors of Norwood Schools Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

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

The trustees confirm that:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Neville Kahn

Director/Chair

Ben Freeman Director/Joint Treasurer

04 August 2023

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Independent auditor's report to the members of Norwood Schools Limited

Opinion

We have audited the financial statements of Norwood Schools Limited (the ‘charitable company’) for the year ended 31 March 2023, which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102; The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We have been appointed as auditor under the Companies Act 2006 and report in accordance with regulations made under that Act. 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

In our evaluation of the trustees’ conclusions, we considered the inherent risks associated with the charitable company’s business model including effects arising from macro-economic uncertainties such as Brexit, Covid-19 and cost of living crisis, we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the charitable company’s financial resources or ability to continue operations over the going concern period.

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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 charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the Trustees’ Annual Report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

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

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

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 Companies Act 2006 requires us to report to you if, in our opinion:

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Responsibilities of trustees for the financial statements

As explained more fully in the Trustees' Responsibilities Statement set out on page 18, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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  - Identifying and testing journal entries

  - Identifying and testing related party transactions

  - Inspecting the board minutes

  - Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an

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auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Dean

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

04 August 2023

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Statement of Financial Activities

For the year ended 31 March 2023

(Incorporating the Income and Expenditure Account)

----- Start of picture text -----
Continuing Operations Discontinued Operations
Unrestricted Restricted Total Unrestricted Total
Funds Funds Funds Funds Funds Total Total
2023 2023 2023 2023 2023 2023 2022
Notes £'000 £'000 £'000 £'000 £'000 £'000 £'000
Income from:
Donations and legacies 2 9,004 498 9,502 - - 9,502 9,371
Charitable activities 3 18,556 18 18,574 - - 18,574 19,031
Trading activities 4 - - - 231 231 231 321
Investments 5 463 - 463 - - 463 414
Total income 28,023 516 28,539 231 231 28,770 29,137
Expenditure on:
Raising voluntary income and marketing 6a 224 - 224 - - 224 170
Trading activities 6a - - - 177 177 177 151
Charitable activities 6a 26,904 1,099 28,003 - - 28,003 28,378
Total cost 27,128 1,099 28,227 177 177 28,404 28,699
Operating surplus/ (deficit) 895 (583) 312 54 54 366 438
- - -
Net (losses) / gains on investments 10 (442) - (442) - - (442) 1,204
Net income / (expenditure) 453 (583) (130) 54 54 (76) 1,642
Reconciliation of funds:
Total funds brought forward 18 26,973 6,570 33,543 (202) (202) 33,342 31,700
- -
Total funds carried forward 15 27,426 5,987 33,413 (148) (148) 33,265 33,342
----- End of picture text -----

All income and expenditure derived from continuing operations is shown separately from discontinued trading operations. The comparative figures for each fund are shown in the notes to the financial statements (Note 18). The accompanying notes on pages 26 to 42 of this report form an integral part of these accounts.

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Balance sheet

as at 31 March 2023

2023
2022
Fixed Assets
Intangible fixed assets
Tangible fixed assets
Investments: Managed investment portfolio
Directly managed property		 Note
£'000
£'000
8
151
164
9
20,880
21,478
10
1,446
1,503
10
6,970
7,380
Interest rate derivative -
5
Total fixed assets 29,447
30,530
Current Assets
Debtors 11
10,971
10,403
Cash at bank and in hand 554
799
Total current assets 11,525
11,202
Liabilities
Creditors: amounts falling due within one year 12
(4,312)
(4,584)
Net current assets 7,213
6,618
Total assets less current liabilities 36,660
37,148
Creditors: amount falling due after one year 13
(3,395)
(3,806)
Total net assets 33,265
33,342
Funds
Including cumulative revaluation gains of £1.9m (2022: £2.3m)
Restricted funds 14
5,987
6,570
27,278
26,771
Unrestricted funds
Total Funds 33,265
33,342

The accompanying notes on pages 26 to 42 of this report form an integral part of these accounts. Approved by the Board of Trustees on 04 August 2023

_________ Neville Kahn Director/Chair

Ben Freeman

Director/Joint Treasurer

Norwood Schools Ltd

Registered Company Number: 00516901

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Notes to the Financial Statements for the year ended 31 March 2023

1: Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - Charities SORP (FRS 102) and the Companies Act 2006.

Norwood Schools Limited is incorporated in the United Kingdom and meets the definition of a public benefit entity under FRS 102. The financial statements are presented in Sterling (£).

b) Preparation of the accounts on a going concern basis

These financial statements have been prepared on a going concern basis. The majority of Norwood Schools’ income is secure as it arises from statutory sources. However, we have modelled a 4% and 6% reduction in statutory income due to attrition rates, with 6% being an extreme case. The forecasting performed and support in the form of an intercompany grant from the parent charity endorses the accounts being prepared on a going concern basis. Norwood Ravenswood intends to support Norwood Schools Limited for at least 12 months from the date of approval of the statutory financial statements for the year ended 31 March 2023 and has the liquidity to do so. The trustees consider this uncertainty not to be material and hence do not consider the charities ability to continue as a going concern to be at risk for at least 12 months from the signing of the accounts. Accordingly, the trustees have prepared these accounts on a going concern basis.

c) Estimates

The preparation of financial statements requires management to make estimates, judgements and assumptions that affect reported assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:

Financial instruments

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in the income and expenditure account under finance costs or income as appropriate.

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Fair value of investment properties

Directly managed investment properties are periodically valued on the basis of fair value in accordance with the RICS valuation and relevant accounting standards, with desktop valuations conducted in the interim (where there has been no significant change to the underlying asset), with any change recognised in the Statement of Financial Activities. A special assumption that the office element of the property, occupied by Norwood, was sold on a long leasehold basis for a term of 999 years, at a peppercorn. The purpose of this special assumption is so that we can provide an opinion of Fair Value of the Supermarket element of the property, in isolation.

Other significant estimates and assumptions

Significant estimates and assumptions in these Financial Statements require the exercise of judgement and are used for, but not limited to, allowance for doubtful clients and local authorities’ account, estimates of future cash flows and other assumptions associated with asset impairment tests, including the reversal of previous impairments, useful lives for depreciation, determination of discount and other rate assumptions for contingencies. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates.

There are no significant judgements.

d) FRS 102 Cash flow exemption applied

In line with Financial Reporting Standard 102, a qualifying entity may take advantage of certain disclosure exemptions, including the preparation of a cash flow statement. Norwood Schools Limited is a qualifying entity as it is a member of a group where the parent company, Norwood Ravenswood, prepares publicly available consolidated financial statements which are intended to give a true and fair view of its assets, liabilities, financial position and profit or loss.

e) Income recognition

All income is accounted for when Norwood has entitlement, there is probability of receipt and the amount is measurable. If income relates to a future period or event and the purpose of that income is to support the costs and activities in the future, the income is deferred and recognised in the appropriate period.

Gifts in kind

Donated goods and services are included as income within the Statement of Financial Activities (with an equivalent amount in expenditure) at the estimated value to Norwood, where this is reasonably quantifiable, measurable and material.

Volunteers

The charity benefits from the involvement and enthusiastic support of its volunteers. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts.

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Grants

Grant income is recognised in the statement of financial activities when received or when Norwood becomes entitled to receipt. Grants that have been received will be treated as deferred income where there are specific requirements in the terms of the grant that the income recognition is dependent on certain activities being completed in a future accounting period.

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by Norwood which is usually upon notification of the interest paid or payable by the Bank.

f) Fund Accounting

Restricted, designated and unrestricted funds are separately disclosed, as set out in Note 15. Restricted funds are resources donated, the uses of which are subject to specific restrictions imposed by the donors or by the nature of the appeal. Designated funds are unrestricted funds set aside at the discretion of the Board for specific purposes. All other types of funds which are not restricted or designated funds form part of general funds. General funds are available to spend at the discretion of the Board, in furtherance of the charitable objectives of the charity. Transfers to and from designated funds are recognised as and when the Board designates or un-designates funds.

g) Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured.

Cost of raising funds

The costs of raising funds comprise of costs associated with charitable expenditure including fundraising, trading costs and publicity.

Irrecoverable VAT

Irrecoverable VAT is charged as a cost to the Statement of Financial Activities, being allocated on the same basis as the underlying expenditure to which it relates.

Support costs

Support costs are allocated to the different categories of activities. This is based on different apportionment bases as identified in Note 6 of the financial statements. Support costs include financial management, information systems, central management, human resources, property and facilities management, Jewish culture, volunteering and risk and assurance.

Governance Costs

Governance costs, other than those disclosed specifically in the notes to these accounts, are included within support costs and allocated on the same basis across services, as per Note 6. Governance costs relate to costs associated with the governance arrangements of the Norwood. These costs will

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normally include internal and external audit fees, legal advice for trustees and costs associated with constitutional and statutory requirements, for example the cost of trustee meetings and preparing statutory accounts. Also included within governance costs are any costs associated with the strategic as opposed to day-to-day management of the charity’s activities. An appropriate proportion of the central management support costs have also been attributed as governance costs to reflect the cost of Norwood’s employees involved in meetings with the trustees and the cost of all administrative support provided to the trustees.

Grants payable

Grants to individuals are recognised on payment and grants to institutions are recognised when there is a constructive obligation to make the payment.

h) Intangible and tangible fixed assets

Intangible fixed assets:

Intangible assets are measured at cost less accumulated amortisation and any accumulated

impairment losses (if applicable). Software development costs are recognised as an intangible asset when all of the following criteria are demonstrated:

Amortisation is charged so as to allocate the cost of intangible assets less their residual values over their estimated useful lives, using the straight-line method. The intangible assets are amortised over the following useful economic lives:

Software costs 4 to 7 years

Tangible fixed assets

Operational assets are held at depreciated cost. Expenditure relating to tangible fixed assets is expected to be used over several years and where the combined value of the asset or group of assets exceeds £1,000 they are capitalised at cost and depreciated over their estimated useful economic lives on a straight line basis.

Depreciation is provided on tangible fixed assets in order to write off their cost to their estimated realisable values by annual instalments over the following expected useful lives:

Freehold land - not depreciated Freehold buildings - 50 years

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Long leasehold land and buildings - 50 years or length of lease if shorter
Freehold and leasehold improvements - 10 years
Motor vehicles - 10 years
Furniture, fixtures, fittings and equipment - 10 years

Where there are indications that assets are or may be impaired in value or use, an impairment review is undertaken to establish the net realisable value and the value in use. The carrying amount of the assets is reduced by any excess over the higher of these valuations.

In the course of capital projects where costs are incurred for payments on account and assets under construction or installation of equipment, they are not subject to depreciation until they are reclassified after their completion and available for use.

i) Financial instruments

Norwood operates basic financial instruments in terms of its assets and liabilities.

Financial assets

Financial asset represents financial resources available to the charity and include financial investments in equities, debtors, intercompany debtors, cash and accrued income. Financial assets are carried at fair value and changes in fair value are recognised in the Statement of Financial Activities. Fair value of financial instruments is established by the open market value of the asset.

Financial Liabilities

Financial liabilities are recognised on the date on which Norwood becomes a party to the contractual provisions of the instrument giving rise to the liability. These include trade creditors, other creditors, loan, accruals and intercompany creditors. Financial liabilities are initially recognised at fair value plus transaction costs and are no longer recognised when the contractual obligations are discharged, cancelled or expire. The bank loan shown in creditor amount falling due after one year is recognised at its principal amount advanced less capital repayments.

j) Investments

Investment properties

Investment properties are revalued annually by the trustees and periodically by independent Chartered Surveyors on a fair value basis. Gains and losses are recognised in the Statement of Financial Activities account for the period. Therefore no depreciation is provided on investment properties.

Equity Investments:

Equity investments are stated at fair value. Changes in fair value are recorded in the Statement of Financial Activities. Unrealised gains and losses are calculated based on the carrying value of the investments in the Balance Sheet.

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Investment management fees:

Norwood investments are held within collective investment schemes and managed by fund managers. The investment income is reported net of investment management costs. The investment management fees are disclosed in the Statements of Financial Activities. There are no ‘investment management costs’ to report in respect of the COIF Fund holdings. This is because there are no costs netted off investment income as costs are to the Fund.

k) Debtors

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

l) Cash at bank and in hand

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

m) Creditors and provisions

Creditors and provisions are recognised when Norwood has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Most amounts provided for are expected to be settled within 12 months and are therefore recognised at the estimated settlement amount.

n) Employee benefits

Short-term employee benefits are those expected to be settled wholly before twelve months after the end of the annual reporting period during which employee services are rendered, but to not include termination benefits. These include wages, salaries and any other benefits paid to current employees. All short-term employee benefits are recognised as expenses in the period in which they are incurred. Post-employment benefits, representing contributions into defined contribution plans for current employees are equally recognised as expenses in the period in which the contribution payable is exchanged for services rendered by employees. The assets of the scheme are held separately from the charity.

A termination benefit liability is recognised at the earlier of the following dates:

o) Leases

Operating lease rentals are charged to the Statement of Financial Activities as they are incurred.

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2: Incoming resources from donations and legacies

----- Start of picture text -----
Restricted
Unrestricted Income Total Total
Funds Funds 2023 2022
£'000 £'000 £'000 £'000
Donations - 495 495 867
Grant from parent entity 9,000 - 9,000 8,500
Grants 4 3 7 4
Total 9,004 498 9,502 9,371
----- End of picture text -----

3a: Incoming resources from charitable activities by income type

----- Start of picture text -----
Unrestricted Restricted Total Total
Funds Income Funds 2023 2022
£'000 £'000 £'000 £'000
Statutory income from Local Authorities 17,156 - 17,156 16,842
Gross fee income 233 - 233 286
Rental income 1,146 - 1,146 1,208
Other income 21 - 21 42
Government Grant - 18 18 653
Total 18,556 18 18,574 19,031
----- End of picture text -----

Included within Government Grants - Furlough Grants is £nil (2022: £118,000) relating to the Coronavirus Job Retention Scheme (CJRS), Infection Control Fund (ICF) Grants £18,000 (2022: £535,000).

3b: Incoming resources from charitable activities by service area

----- Start of picture text -----
Unrestricted Restricted Total Total
Funds Income Funds 2023 2022
£'000 £'000 £'000 £'000
Adults services 17,680 18 17,698 17,522
Family services 46 - 46 76
Children services 691 - 691 1,323
Support services 139 - 139 110
Total 18,556 18 18,574 19,031
----- End of picture text -----

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4: Trading activities - discontinued

----- Start of picture text -----
Unrestricted Restricted Total Total
Funds Funds 2023 2022
£'000 £'000 £'000 £'000
Trading income 231 - 231 294
Governments Grants - - - 27
Total 231 - 231 321
----- End of picture text -----

As a result of the challenges faced by the high street, Norwood took the decision to commence the phased closure of its retail operations in 2021. Included within Government Grants - Unrestricted Fund shop grants is £nil (2022: £22,000). Furlough Grant was £nil (2022: £5,000) relating to the Coronavirus Job Retention Scheme (CJRS).

5: Incoming resources from investments

----- Start of picture text -----
Unrestricted Restricted Total Total
Funds Income Funds 2023 2022
£'000 £'000 £'000 £'000
Bank deposit interest 64 - 64 41
Rental income from investment properties 399 - 399 373
Total 463 - 463 414
----- End of picture text -----

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6a: Resources expended

Direct Staff
Costs
Other Direct
Costs
Reallocated
Support Cost
Total
2023
Total
2022
Cost of generating voluntary income
Cost of trading - discontinued
Charitable expenditure:
Adults services
Family services
Children & educational services
Total cost of charitable expenditure		 £'000
£'000
£'000
£'000
£'000
3
-
221
224
170
74
64
39
177
151
15,396
5,312
3,644
24,352
25,108
953
(120)
335
1,168
1,049
942
1,042
498
2,482
2,221
17,291
6,234
4,477
28,003
28,378
Total resources expended 17,369
6,298
4,737
28,404
28,699

Within note 6a costs of trading represent costs of discontinued operations.

6b: Analysis of reallocated support costs with bases of apportionment

Support costs Adults Family Total Total
(basis of apportionment) services services Children services Fundraising Trading 2023 2022
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Financial Management 616 32 85 26 6 765 879
(percentage of staff)
Information Systems 692 143 91 100 13 1,039 1,153
(number of PCs)
Assistive Technology 48 10 10 - - 68 101
(equipment and time spent)
Human Resources 779 40 107 33 7 966 951
(percentage of staff)
Property and Facilities 575 30 79 24 5 713 536
(percentage of staff)
Central Management 545 28 75 23 5 676 557
(percentage of staff)
Jewish culture 50 3 7 2 - 62 58
(percentage of staff)
Risk and Assurance 59 3 8 2 1 73 32
(percentage of staff)
Volunteering 30 33 2 - - 65 158
(number of volunteers)
Governance 250 13 34 11 2 310 341
(percentage of staff)
Total 3,644 335 498 221 39 4,737 4,765

6c: Resources expended also include:

Total Total
2023 2022
£'000 £'000
Fees payable to the charitable company's auditor for the audit of the
External audit and related costs:
charitable company's annual accounts 39 33
Depreciation of owned fixed assets 1,578 1,491
Interest payable 122 50
Operating lease rentals: Plant & machinery 183 183
Properties 146 251
Trustees’ indemnity insurance premiums 7 6
(Losses)/gains on disposal of fixed assets (54) (19)

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7a: Staff costs

2023
2022		 2023
2022
£'000
£'000
Direct staff expenditure:
Wages and salaries
14,600
15,810
Social security costs
1,373
1,395
Pension costs
431
493
Total direct staff costs
16,404
17,698
Other Staff expenditure:
Agency costs
3,553
2,652
Other staff costs
501
531
Total staff expenditure
20,458
20,881
7b: Redundancy and Termination costs:
2023
2022
£'000
£'000
Statutory redundancy payments
7
89
Payments in Lieu of notice period
45
122
Compensation for loss of office
88
3
Total payments on termination included above
140
214
7c: Average number of staff employed and the full-time equivalent
Staff employed
Full-time equivalent
2023
2022
2023
2022
Fundraising
Adults’ Services
Children and Family Services
Education and Support
Support Services		 Number
Number
Number
Number
6
6
6
5
517
598
351
407
82
28
29
21
15
18
6
10
59
57
55
51
679
707
447
494
7d: Earnings above £60,000
Staff employed Staff employed Full-time equivalent Full-time equivalent
2023 2022 2023 2022
Number Number Number Number
Fundraising 6 6 6 5
Adults’ Services 517 598 351 407
Children and Family Services 82 28 29 21
Education and Support 15 18 6 10
Support Services 59 57 55 51
679 707 447 494
7d: Earnings above £60,000

The number of employees who earned more than £60,000 during the year was:

2023 2022
Number Number
£60,001 - £70,000 3 3
£70,001 - £80,000 4 4
£80,001 - £90,000 1 -
£90,001 - £100,000 2 1
£100,001 - £110,000 2 -
£110,001 - £120,000 - 1
£120,001 - £130,000 - 1

Contributions made to the pension scheme for the twelve (2022: ten) employees who earned more than £60,000 amounted to £54,854 (2022: £49,133).

The trustees and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis.

Trustees received no remuneration and were not reimbursed any expenses in either year.

The total employee benefits of Key Management Personnel of the group were £884,154 (2022: £693,549).

7e: Pension

Norwood operates a defined contribution pension scheme for its employees. The assets of the scheme are held separately from those of the charity. Contributions payable in respect of the year were £431,000 (2022: £493,000) of which £122,000 was outstanding at 31 March 2023.

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8: Intangible fixed assets

Computer Total
Software
£'000 £'000
Cost
At 1 April 2022 2,814 2,814
Additions 56 56
At 31 March 2023 2,870 2,870
Depreciation
At 1 April 2022 2,650 2,650
Charge for the year 69 69
At 31 March 2023 2,719 2,719
Net Book Values:
At 31 March 2023 151 151
At 31 March 2022 164 164

9:Tangible fixed assets

Fixtures,
Freehold Leasehold Furniture &
properties properties Motor vehicles Equipment Total
£'000 £'000 £'000 £'000 £'000
Cost
At 1 April 2022 32,052 2,730 851 8,413 44,046
Additions 431 10 - 566 1,007
Disposals (42) (175) (176) (128) (521)
At 31 March 2023 32,441 2,565 675 8,851 44,532
Depreciation
At 1 April 2022 14,898 1,332 594 5,744 22,568
Charge for the year 863 100 57 498 1,518
Disposals (27) (164) (170) (73) (434)
At 31 March 2023 15,734 1,268 481 6,169 23,652
Net Book Values:
At 31 March 2023 16,707 1,297 194 2,682 20,880
At 31 March 2022 17,154 1,398 257 2,669 21,478

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DocuSign Envelope ID: 18E225A4-A43E-4650-BE5B-62E6FEDDDE23

10a: Investments - Managed Investment Portfolio

Market Value 2023 2022
£'000 £'000
Market values at 1 April 1,502 1,383
Disposals in the year 0 0
Net investment (losses)/gains (56) 119
Market value at 31 March 1,446 1,502
Historical Cost for comparison 2023 2022
£'000 £'000
Historical cost at 31 March 1,288 1,288
Cumulative revaluation gains (investment portfolio) 158 214
The underlying investments may also be analysed as follows:
Equity Investments by type 2023 2022
£'000 £'000
Multi-asset Investment Funds 1,446 1,502
Cash 0 0
Market Value at 31 March 1,446 1,502
10b: Investments - Directly Managed Properties
Market Value		 2023 2022
Valuation at 1 April £'000
7,380		 £'000
6,300
Net investment (losses)/gains - unrealised (380) 1,080
Provision for Capital expenditure (30) -
Carrying values at 31 March 6,970 7,380
Historical cost at 31 March 2023
£'000
5,200		 2022
£'000
5,200
Cumulative property revaluation gains for the year 1,770 2,180

The investment property relates to the ground floor of the building at 80-82 The Broadway, Stanmore leased to a third party (LIDL). In April 2023, an independent valuer, Cluttons LLP, undertook a valuation of the investment property.

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11: Debtors
2023 2022
£'000 £'000
Trade debtors and Local Authorities' debts 874 1,066
Amount due from group undertakings 9,489 8,810
Other debtors 214 187
Prepayments 347 332
Accrued income 47 8
Total debtors 10,971 10,403

12: Creditors: amount falling due within one year

2023 2022
£'000 £'000
Trade creditors 1,454 1,092
Accruals and deferred income 1,770 2,532
Bank loan repayable within one year 346 363
Other creditors 253 141
Other taxes and social security costs 489 456
Total creditors due in less than one year 4,312 4,584

12a: Deferred income

2023 2022
£'000 £'000
Opening balance at 01 April 702 586
Amounts released in year (631) (586)
Amounts deferred in year 576 702
Closing balance at 31 March
 647
 702
Deferred income relates to fee income invoices raised at the year-end which pertain to future periods.

13: Creditors: amount falling due after one year

----- Start of picture text -----
2023 2022
£'000 £'000
Bank loan repayable within two to five years 1,421 1,495
Bank loan repayable after five years 1,924 2,219
3,345 3,714
Provision for Dilapidation 50 50
Rental Deposit - 42
Total creditors due in more than one year 3,395 3,806
----- End of picture text -----

Loan: In October 2007 Norwood purchased Broadway House in Stanmore with a 25 year loan taken with RBS for 80% of purchase price, £6.68m. Capital repayments commenced after 60 months of loan issue (first 5 years is interest only). The bank loan is secured by a charge over Broadway House, Stanmore and is repayable in 240 monthly instalments from November 2012.

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14: Restricted Funds

----- Start of picture text -----
Incoming Outgoing 31 March
Note 1 April 2022
resources resources 2023
£'000 £'000 £'000 £'000
JCoSS PSRP Fund i 976 - (275) 701
JAPH ii 25 - - 25
Somers Court & Residential Fund iii 194 - (17) 177
Somers Court (ex Daniel Ct.) 308 - - 308
Supported Living Properties Fund: iv 21 - (14) 7
11 Highview Gardens 617 - (15) 602
Holmbury Avenue 337 - (17) 320
Greenwood Road 169 - (6) 163
The Grange Fund v 154 - (11) 143
Phyllis Somers Capital & Service Fund vi 2,466 - - 2,466
Assistive Technology Fund vii 177 115 (41) 251
Lyonsdown Road Rear Garden viii 35 - (5) 30
Heads Up Kids ix 87 13 (73) 27
Rochelle & Alan Bernard Fund x 58 - - 58
Capital Projects xi 502 164 (164) 502
Binoh SEND Fund xii 11 38 (14) 35
Lyonsdown minibus operational costs xiii 28 14 (14) 28
Braude Trust for Staff Training xiv 217 - (184) 33
Autism Services xv 23 - - 23
Under £20k 165 172 (249) 88
Total 6,570 516 (1,099) 5,987
----- End of picture text -----

Restricted funds

i Fund supporting the Pear's Special Resource Provision at JCoSS.

iv Supported Living Properties Fund including capital investments.

v The Grange Fund represents the donation of a flat.

vi Phyllis Somers Service Delivery Fund: Towards construction, refurbishment and associated costs of family centres and accommodation for adults with disability, plus the operating cost of such services.

vii Assistive Technology (AT) Fund: Grants from KC Shasha Charitable Foundation and other Trusts to provide AT and associated support to people with LD and complex needs.

viii Lyonsdown Road Rear Garden supporting the landscaping of rear garden.

x A memorial fund set up in memory of Rochelle and Alan Bernard to support children dealing with trauma.

xi Capital Projects provided by the Leo Baeck Housing Association, the Locker Foundation and the Gerald and Gail Ronson Family Foundation to support building improvements.

xii Binoh Send Fund supports Binoh's Special Educational Needs and Disabilities Programme.

xiii A fund to suuport the Lyonsdown minibus operational costs: Driver, fuel and fleet charges.

xiv Braude Trust funding for staff training and inductions.

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15: Analysis of Net Assets Between Funds

----- Start of picture text -----
Unrestricted Designated Restricted
Total Fund
Fund Fund Fund
£'000 £'000 £'000 £'000
2023
Fixed assets 19,311 - 1,720 21,031
Investments 8,416 - - 8,416
Net current assets/(liabilities) 2,946 - 4,267 7,213
- -
Liability due after one year (3,395) (3,395)
Total net assets 27,278 - 5,987 33,265
2022
Fixed assets 19,842 - 1,800 21,642
Investments 8,888 - - 8,888
Net current assets/(liabilities) 1,848 - 4,770 6,618
- -
Liability due after one year (3,806) (3,806)
Total net assets 26,772 - 6,570 33,342
----- End of picture text -----

16: Commitments under operating leases

The future minimum payments under non-cancellable operating leases are:

----- Start of picture text -----
Leased Leased
Other Other
Properties Properties
2023 2022
2023 2022
£'000 £'000 £'000 £'000
Within one year 302 101 317 154
Between one and five years 961 - 895 37
Over five years 2,776 - 2,711 -
4,039 101 3,923 191
----- End of picture text -----

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DocuSign Envelope ID: 18E225A4-A43E-4650-BE5B-62E6FEDDDE23

17: Related Parties

In the year, there was a related party transaction between the charity and The Radlett Centre Trust for the provision of theatre hire amounting to £nil (2022: £2,098). One of the trustees is a director in The Radlett Centre Trust.

Group companies:

In the year, there were related party transactions between the charity and members of the group.

Norwood Schools Limited paid for expenditure of £99,262 (2022: £56,700) on behalf of The Hope Charity. Norwood Schools Limited received funds totalling £Nil (2022: £11,300) from The Hope Charity. At the year-end Norwood Schools Limited was owed £1,003,000 (2022: £904,000) by The Hope Charity.

Norwood Schools Limited received income of £9,470,000 (2022: £9,350,000) from Norwood Ravenswood. Norwood Schools Limited incurred expenditure of £1,210,000 (£2022: £589,000) on behalf of Norwood Ravenswood. At the year-end Norwood Schools Limited was owed £8,486,000 (2022: £7,907,000) by Norwood Ravenswood.

Norwood Schools Limited accounts are consolidated into Norwood Ravenswood, the parent company. Norwood Ravenswood is a registered charity limited by guarantee, registered in England and Wales with charity registration number 1059050 and company registration number 03263519. The principal and registered office for Norwood Ravenswood is:

Broadway House 80-82 The Broadway Stanmore HA7 4HB

Key management personnel compensation:

In line with paragraph 33.6 of FRS102 Related Party Disclosures, compensation paid to key management personnel in respect of services provided to the reporting entity is disclosed in Note 7.

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18. Comparative figures for individual funds

Statement of Financial Activities

(incorporating the income and expenditure account)

Continuing Operations
Discontinued Operations
Unrestricted
Funds
Restricted
Funds
Total
funds
Unrestricte
d Funds
Restricte
d Funds
Total
funds
Total
Total
2022
2022
2022
2022
2022
2022
2022
2021
Income from:
Donations and legacies
Charitable activities
Other trading activities
Investments
Profit on disposal of property		 £'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
8,504
867
9,371
-
-
-
9,371
10,399
18,378
653
19,031
-
-
-
19,031
19,361
-
-
-
316
5
321
321
472
414
-
414
-
-
-
414
408
-
-
-
-
-
-
-
232
Total income 27,296
1,520
28,816
316
5
321
29,137
30,872
Expenditure on:
Raising voluntary income
Trading activities
Investments
Charitable activities		 170
-
170
-
-
-
170
241
-
-
-
146
5
151
151
843
26,634
1,744
28,377
-
-
-
28,378
29,002
Total cost 26,804
1,744
28,547
146
5
151
28,699
30,086
Operating surplus / (deficit)
Net gains on investments		 492
(224)
268
169
-
169
438
786
1,204
-
1,204
-
-
-
1,204
281
Net income / (expenditure) 1,696
(224)
1,472
169
-
169
1,642
1,067
Transfers between funds 157
(157)
-
-
-
-
-
-
Net movement in funds 1,853
(381)
1,472
169
-
169
1,642
1,067
Reconciliation of funds:
Total funds brought forward		 25,120
6,951
32,071
(371)
-
(371)
31,700
30,634
-
Total funds carried forward 26,973
6,570
33,543
(202)
-
(202)
33,342
31,701

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