Extracare Charitable Trust ANNUAL REPORT & ACCOUNTS 31 March 2022 ReElstered charlty Nurnber- 327816 Registered Social Lindlord- 4706 Company Registered Number- 2205136 4ABLW83SI* iuui.ui.I A18 30mW2022 COMPANIES HOUSE #311 Annual Report & Accounts: 2021122 Extracare CONTENTS Page Number Key Facts Statement from our Chair Foreword by the Chief Executive Legal and administrative information Report ofthe Board Strategic Report 17 The Board's responsibilities in preparation of accounts 33 Independent auditorfs report to the members of The Extracare Charitable Trust 34 Consolidated statement of comprehensive incorne Statement of financial position 38 Statement of changes in reserves 39 Consolidated Statement of cash flows 40 Notes to the financial Statements 41 Annual Report & Accounts.. 2021122 EJ(traCare FACTS 2021122 2020121 Homes for older people 4.238 4,238 New homes wnpleted 321 r resident5 4.S32 4,404 Avetace ale of our ￿e￿dents is 81 80 Villaoes 16 16 Schemes thality Retail shops 40 44 Volunteers supporting our Charity 2.100 2.231 Staff working to a sh3red goal 1.312 1.293 Turnover £47.OM £41.7M Reserves £282.9M £265.7M Total cOmprehens￿e income £17.2M £18.4M Awzrds Indude- Investors in People Gold Award Annual Report & Accounts: 2021122 Extracare STATEMENT FROM OUR CHAIR l am delighted to present our Annual Repjn for 2021122. after what has been another tlemanding year where Exlracare h35 risen to the challences face(1 as a result of the Cowd-19 pandemic. Our Chèrity continues to thrive and the cash reserves we've generated. as a response io issues we encountèred when the pandemic initially hit In March 2020. shows what a stron8 financial position we are now in. You will see within the Annual Report that we substantially achieved the main targets we set otst in OUT Annu31 Business Plan fDr 2021122. We continue to strive to improve our olferin8 Ill telation to valve for money. and any irnprovemeni in our bottom-line surplu5 will not be at the expense of the quality ol servicewe olfer. l am happy to report we have been able to return to factrtLFface eoard meetings during 2021122. which wth so many new Trustees has been a real positive. The pandemic tauehi us so many thing5 about new way5 of workin& rnany of which we will continue to Use. However. there is no substitutefor in person meetings when di5CU5sing the str3tegicobjecrives forthe Charity overthe coming years. Therefore, as we were 5eitin8 the scene for the 2022-27 Corporate Plan. it was a pleasure to be doing this in per50n. We were saddened in the yèar to recelve the news thai our Trustee. David Mdl, had died. Dawd was a valued Trustee. who undertook his role with such dedication and commnrnent ro Emtracare. He Will be sorely missed by all that kfiew him. I thank all our colleagues and volunteers who enable us to deliver our excellent services. and all those that donate to the Charity, through either money or gooés donations which are ihen sold in our Retail 5hop5. Finally, I'd like to extend my thanks to our residents. The past couple of year5 have been difficult and I know at times you will have felt frustrated at the restrittions enloiced. Your patience and tsnderstanding have enabled us to 5ucce55fully manage a very difficult period lor the Charity and ensured we are now in the besi possiwe position to deliver a Trew arnbtjous five-year Corporate Plan. Nlcholas 8aldwin CBE Chair Annual Report & Accounts= 2021122 Extracare FOREWORD BY THE CHIEF EXECUTIVE This time a year ago I wrote how theCovid-19 pandemic had severelyimpacted the UKthrou8hout 2020121. including the huge impact it had on our operations. The challenges wefaced did notjvst disappear as weentered 2021122. with newvariantsand l¢xal lockdowns posing continuing challenge5 for us to navigate. Our pantlemic priorities have remained consistent over the previou5 Iwo years. and l am extremely proud of my colleaEues who have worked iirelessly to help us-. 11 Keep vur residents Maff safe- •nd 21 Keep our Charity ffinantlally viable. During the pandemic we were able to keep our resident sat15fattion levels high. 88% ot our re5iLlents stated they felt safe living with us throu8h the pandemic. with 80% sayin8 they felt supported in getEin8 e55enti315 durin8 lockdowns. Sadly, a number ol our residents died as a result of £onrractinB Covid-19. However, Ihe deaths in our locations were le55 than those seen in our core demographic across England overall. and rnarkedly lower than those recorded in tare hornes. Due ro the uncertainiythi5 time last year. we again agreed with iheTrustee5 toformulare an AnnLtal Busine55 Plan and delay our five- vear Corporare Plan until the external environrnent had senled. Within our 2021n2 Annual 8usine55 Plan we set ourselves six key tar8ets, these being.. Se¢yrÈ all approvals lincluding p￿nn1￿ and method of toftstrurtionl for Sheniey Wood 3 and onÈ nÈw willage to enable both to Start on site (subject to fundingl The appraisal lor SFTÈnley Wood has been 3pproved by the Board and the development was experted to commence in 2022123 subject to the successful land purcha5e- which is now looking in doubt. Athie¥e CQC good or outstandiD¥ all lotations insperted Norie of our locations were in5peited by CQC duringthe year. Achieve resmlent exptritnce raiine$ 0180% in ¥illaees and YJ% in sthemes Resident satisfadion in our villa8es was 91%.. and Resident satisfaclion in our Schemes was 94.7%. Athieve staff satlsfaction scores.. 75% of tsur employees will be Saiisffied with Exincare as an employer and 90% of our. employees will be fully committed to our Vision 68% 01 ovr employees were satisfied with us as an employer- an 91% of our ernployees are fully committeLI to our vision. Achieve a total surplus excess of £12m aTrd limté the undeflyini oper¥lonal loss li.e. emcluding resabesl to £l.IM Total Surplus of £17M' ané Operational performance is break-even. Ensure we meet or emceed the Regulator of Socia Mouslng's eMPÈCtations. We continued with our IDA read(ness plan. It has been great to see our locaiions returning to their vibrant best over the latter hall of the year with residents back 50cialisin8 and undertaking activities. Providing'better lives lor older people. 15 not only our vision. but it is a150 our passion. and this can only truly be maximised when our locations are completety open and full of residents. colleague5. CUStorner5. and visitors. Financially we have continued io strengthen our cash holdings this yeor. a target in the Annual Business Plan for 2021122. We were able to cancel our £IOM revolvin8 credit facility three months early. 8iven that by the turn of the calendar year we had already surpassed ou¥ £20M cash targei. These accoun15 demon51rate the return to a 5tron&er sales rnarket, which ha5 seen our cash position lincludin8 investments) at the year-end increaseto over £30M. Given that uncertainty seems to be diminishin& our Board of Trustees have ayeed now is the right time to cornrnit to our rnediurn- term future, and as such we have agreeé our 2022-27 Corporate Plan. This plan was formulated wth the supporr and Input of Trustees. colleagues and most importantly our residents. We want 10 Strengthen our connection wth our residents further over the course of the nexr five years and ensure they are at the heart of every éecision we make. Annual Report & Accounts.. 2021122 Extracare Our Corporate Plan focu5es on three areas. these being.. Developing new villa8e5.' Operatin8 ourvillages and scheme5.' and Supporting our villaBe5 and schemes. Throughout this report you will read how we have already been focusing on ihese area5. as well 3$ the future plans we have in place. 11 is an exciting time to be involved with the Charity as we go from strength to strength in a fast-growing sertor. On behalf of the Exetutive Leadership Team. I'd like io we ihanks to tyJr Tvustees. our tol￿agueS. and ou¥ volunteers. who never cease to arnaie me with their effort and dedication to ensure Extracare Charitable Trust continues to thrive. ToBether, we will conlinue to create'better Irves for older people.. Mick Laverty Chief Executi¥e Annual Report & Accounts= 2021122 Extracare LEGAL AND ADMINISTRATIVE INFORMATION hzitty Name The EXtraca￿ CharitableTrust GO￿1￿1￿ Instrumert The Chartty is a company limited by 8uarantee and not having a share capital. A5 Such it ISKoverned by fts M•Morandum andArtides ofAssociarion, whKh were lastamended byspecial resolLrtion on 13 Novembef 2019. It was incorporated on 11 December 1987. 327816 Registered CharilyNufflber Registered Social Landlord 4706 Company Aegistered Number 2205136 Members The Thredors of the O)aiity from rime to time and stjch other persons admitted to membership of the company under the Articles. The number of members is unlimited. Board of Trustee$131so referred to as a DirettLWS of the Company RetiredlResiRned lor the purpose of Company lawl: Formallyappointed Nicholas Baldwin CBÉ Ichairl Richard Clarke (Setbior Independent Th"rertorl Harpal 8aines Richard Byrne Professor Guy Daly Adrian Eggin8t Saba Gondal Andy Hardy Karen Helliwell Susan Lock Mary Martin David Mell Philip Riman susan Whelan Tra£y Kim Wootton 11 November 2020 14 November 2018 21 June 2021 21 June 2021 18 March 2019 l March 2020 20 September 2021 21 June 2021 l March 2020 l March 2020 15 Novembet 2017 l February 2018 23 April 2019 13 November 2019 10 Novernber 2021 10 November 2021 13 ju￿ 2021 21 June 2021 17 December 2021 Annual Report & Account5: 2021122 EJ(traCare Committee Member5hip5 Includes oll Trustee members (current Nl und/ormerlXJJ Trustee5 Audit & Assurance De¥eJoprnent Nornination5 & Remuneration Operation5 Fundrai5in& Research & Advorary" Harpal Baines Nichola5 8aldwin Richard Byrne Richard Clarke Professor Guy Daly Chair Former Chair Adrian Eggington Saba Gondal Andy Hardy Karen Helliwell Susan Loik Mary Martin Chair Former Chair Former Chair Davbd Mell Former Chair Philip Riman Susan Whelan Tracy Kirn Wootton * RKharJ i%also ihe Tru%1 r0wesenlalr¥èc￿ the olExt￿art R*t>l Limittd ' Comtnirtee nowdisbafjded Chair ChaiT Company Stcrètary Executive Leadership Team (principal members of staff and kty manaRement petsonnel as defined bythe Companie5Aal Angela Carpenter Mitk Lave An8da Carpenter Chief Executive Executive Director Go¥ernance and Compliance (from 01102120221 Executive Diredor Operations Ifrom 01109120211 Executive Director Operations luntil 16107120211 Emecutive Dirertor Marketing and Inn¢>vation Ivntil Joanna Grainger Angela Harding Henriette Lytile-Breukelaar 30104120211 Chris SkÈlton Kevin Willetts Executive Direttor G)rporate Resources Exet￿1Ve DirectOT Develtspment. Sales and Procurement (until 28102120221 Register*d and prin¢yal office 7 Harry Westrjn Road Binley Business Park Coventry CV3 25N Uoyds Banking Group PIC Shakespeare Martineau. Pin5ent Masons Prin¢lpal Bankers Prirnarysolicito Audltors RSM UK Audrt LLP Annual Report & Accounts- 2021122 Extracare REPORT OF THE BOARD The Board presents The Eytracare Charitable Trust's I'ExtraCare'l Annual Report and the avdited financial siatements for rhe year ended 31 March 2022. Charitable Objectives and Public Benefit Extf3Care was intorporated in 1987 to provide seNces to older people and this is explitit in our Vision ro deliver 'Better Lives for Older People. and our Mission'creating sustsinable comrThunities that PlLwide homes older people wènt. lifestyles they can enjoy and care If it's needed. We are # registered charity and as such must carry out thoritable purpose5 for the kxjblic benefit. Our charitable purposes I'obierts'l are set out in our Articles ol Association and include". The business of providing Idirettly or indirecttyl and mana8ingthe provision of hougn& social housing and other accornmodation linclvdin& without limitation, nur5illB hornes, She￿ered hcrne5. hostd5 and farÈ homes). ènd assistance to help housÈ people. and associated facilities and ameniiies or services. for people who are poor, or for people who are in need by reason ol their age. physical disability, mental disabilrty. learning disa￿.1[￿. menial illness N chronit sickness. The provision of care. wdfare. rnedical. Thursin& community and ￿her svvices. and associated facilitie5 and amenitie5, for people who ore poor. orfor peoplewho are In need by reo50n of thaT age. physical disability, mental disability, learningdisabilitv, mental illness Dr chrotTic sickness.- The relief of sickness and the preservation and pr¥jm￿lOn of hea￿h of people who are pool, or of people who are in need by rea50n of their age, physical disability. mental disabilily. learning disability. rnental illness or chronic sickne55', The relief of finanrial hardship amongst elderly PEople,' alld Any other charitable object not prohibited for a company registered the Regulator as a non-profit. private. registered provider. Our publii benefit is reflected in the strands of our rnodel. As a charitywhich pioneered retirement communities. we Still believe our madel is unique by virtue of.. We are a charny. and our surpluse5 are all re-invested in the charirable activitie5. Our éiver5e tenure rnix, which make5 us èffNd3￿e lor people from a ran8e of backgrounds and cirwmstances and supports the diversity of our CL*nmunities. Our villages are typically made of 260+ apartments. housing 30(k4￿ resldents. This enable5 U5 to offer 10-15 communal fatililie5 at an affordable priie to re5ident5. This stale is rare for the UX. Our rno¢Jel of Hornes. Lifestyle and Care Is proven to benefit residents. physical and mental heatth and reduce pressure on the health and social care sysiem. Homes okl?r people want Our 16 retirement villages and four smallei housing schemes Iwe operated five smaller housing ￿heMeS throughout the year. howevÈr the agreement to manage Verona CtyJn ended on 31 March 20221 are typically made up of individual one or two-bedroom home5, which are available for Eranting of a property lease. granlillB of a shared ownership property lease. or for social rent. Some of our villages a150 include bungalows ané two tsr ihfee-bedroom cottages. The horne5 we offer and our cornrnunal space5 are attrattive. comfortable. and suited to the emerging needs thai our residents mi8ht face as they 8row older. We continue to explore the installation OF I'smart'l digiial technrjlogy and adaptations to ensure that our residents benefit from the ways in which technoloEy can help prolong indepenéence and enhance quality of life. An exarnple is the 'srnart apartrnents. in our new villages, showcasing a range of smart technology applications induding smart speaker5, eleiiric blinds and adaptation5 to kitchens and bathroom5_ The latest smart apartment in Sollhull Village remains open io the public. During the year we commissioned an exercise which examined our properties in great detail and how over time our offerin8 15 chan8iD8. This work, undertaken by Glenn Howe115 Arthiiects, also focused on the dernanLls of the se£toi and will be vtilised in Annual Report & Accounts= 2021122 Extracare planning our uFmplain15 regarding our fundraisin8 ttivitles received in the year12020121= nill. Capital Structure Ovr Charity is a company limiteé by guarantee and does not have shafe capitsl. As5uch it is6overned by ils MemorandLtm and Article5 of A5SOClation. It was incorporated on 11 December 1987. Treasury Policy C￿r Treasury Management Policy wa5 updated during the yeor and wa5 approved by ihe BDard in January 2022. It outlines rhe principles on which we manage investmenis and I￿rrOWIng5. li also ftyms the bedrotk for our Treasury Management Strategy which has been redralted to align with our Corporale Plan arnbitions. It is our Charit￿$ policy to take out loans at fixed rales of interest. whi15t lirnitine the exposure to interest rate fluduation5 on any development fundin8. Following the cancellation of the revolving credit fècility. all ovr bNfowings are at fixed rates of interest. Our Treasury Management Policy outline5 our plansto inc[err￿taIfy build our headroorn, primarilyas liquid assets. to protect against future unexpected events. WÈ are very pleased ihat we have achieved this tash headri)om target in 2021122. Internal Financial Control The Board is provided with an Annual Assurance Statemeni by the Executive Oirector Governance & Compliance, which is signed by the Chiel Executive and the Executive Direttor Corporate Resources. outlining the iontrol measures that ale in pla¢e to provide comfort to theTrustees on financial. governance and operational interna controls. The Board has delegated authority lor overseeing the adequacy and effectNeness of the internal control systems to the Audir and Assurance Cornmittee. In addition to the iniÈrnol controls exert15ed by the management and staff therÈ is a rolling intern31 audit programme thar provides additional assurantÈS. During 2021122 our appoinied iniernal audit provider InAAI lias alLeiid¥d edLlI Audit and Assurance Cornmittee meetin8 along with our EXt￿nal Auditor IRSMI. 15 Annual Report & Accounts.. 2021122 Extracare The work ol the exrernal auditors provides assurance through the interim and final audii wsits and the provision of an audit repon and management letter. Regular meetings are held with our erternal auditor5 to provide an update on chan8es in the Charity and to discuss Strategic and technical matters. A corpDrète Balanced Scorecaré is used to provide ihe eoafd and its Committees with det3i1s of performance aBainsi any targets and commitrnents included in our 2021122 Annual Business Plan. Independent Auditor In 50 lar as each of the Direcfor5 is aware.. There is no relev8nt avdit info¥matioTr of which the group's audiior is unaware- and The D￿r￿torS have taken all step5 that they ou8ht to have taken to make ihemsefves aware of any rel￿an1 audit inlormation and to establish that the audit¢y is aware of that ifif￿matx?ft. On behalf of the Trusiee5'. Nlck Baldwin CBE Chalr 21 September 2022 16 Annual Report & Accounts= 2021122 Extracare STRATEGIC REPORT Sector Outlook Background The later-living resideniial sector has changed sl8Trific3nt￿ since the formatw of Extracare There are now a range of models lor providin8 retirement living. r3n8in8 from a li8ht tovch approach to management to the institutional care home model. We believe that our model of quality older persons. housin8 W¢th an option for care. still has huge demand in this space. The a8e expe£tanry for the UK by 2030 15 expected to be 83 and 85 for men and women respettivdy. A slowin&of birth rates, coupled with this extended life expectancy 15 Pushing the population of European countnes ioward5 those over 65. The overall growth prosperts ol our sector are well ￿￿￿Mented. and we airn to be a marker leader in developine and operating inte8rated retirernent communities that enablè better lives for older people There continue to be thallenge5 around 5taffinL ￿th difficulties in recruiting acr055 a wide ranee of positions in the otRani5ation and particularly wiihin care roles. This is a settor wide issue relarin8 10 care. It is expetted thai ihese challen8es will coniinue for some time to come given the current demand5 on ernployment aCTOSS the tountry. late 2021 also began to see inflation rise rapidly. owine somewhat to the price of utilitie5 and then the wèr in UkraiTre. From a CPI figure of 3.1% at September 2021 Iwhich Is used for 2022123 rent in£ieasesl it is projetted thai a figure of greater than IO% will be reache¢J18ter in 2022. Thesefactor5 have also resulted in a slow and steady increase in new ￿rrOWing costs. with the Bank of Erb&land increasin8 the base rate to 1.25% in June 2022. the highest figure since 2009. On a positive notèfor Extracare. house prices continueto rise. w¢th 3 10% increasÈ in the average house pricethrough 2021. Although this was partially inflated due to 8overnment incentive5 around stamp duty. it is further proof thar the property rnarket currently remains stron8 d&pite the war in Ukraine, Ble￿1 and the pandemK. Covid-19 During 2021122 we engaged our residents again for thÈrr feedback on our handling of the settsnd wave of thè pandemic. Our mèin objectives were to understand the resilience of our model of retirernent comrnuniiies in the face of an urbprecedented global health crisis, and build upon our initial survey (undertaken in 20201 to help inform tsur response to arty further waves ol the pandemic and support our vision for creatin8 better lives for older people. Findings of the suivey included.. 93% agreed that lirniring visitors to the locati￿5 had been important in containin8 the spread of Covid-19- 88% felt safe in our I￿atIonS during thè pandemit," More than 80% felt 5UPPOrteLI in geiting e55entia15 svch a5 Brocerie5 and ffledication., wd 77% reported that we communicated well with reydents during the pandemic. In addition. we also Question resident5 on their mental wdltw.ng dvring the parTrdemic, and found ihe followinÈ' 39% felt socially isolatecl during lockdowns.. 41% stated that the pandemic had negatively affecred their mental health.. 73% felt sad at not beinE able to See children and grandchildTen: an 63% were worried at￿)￿ Iriends and farnily members. This insight is invaluable in help￿fiR our colleagues at I(￿li0n$ deal Ymth any fuiure pandemic outbreaks. or another heètth crisis. Understanding the fvture Despite the Covid-.19 pandemic and lockdown re5triction5. dernand for our offer has remained strong. Thi5 is reflecteil in our sale5 performance throu8hout the year. but 5pecifitalfy towards the latter part of the period. We have been able to return to hosting sales open day5, which have 518nificantly improved demand. éemonstrating just how important these events are in getting customers through our doors. $0 that they can feel rhe experiente we offer when living in our locations. 17 Annual Report & Accounts.. 2021122 Extracare We are constantly strivin8 10 improve our under5tandin8 of the market and ressN)nd to emerging trends. Findings from competitor analy515 in 2020 highlighted the following: Our rnodEI continues to be dtherent to others. but other prowders use our reseaich and model to promoie their products whiih re not wholly comparable to our5. We need to ensure we keep our profile high to generate understanding of the unique nature of our rnodel and challenge those who use our research inappropriatefy. Our targeted markeiing is both cost-effeciive and sufLed to our local markets. alb•t we should continLte to drive our di8ital marketing., Our lifestyle marketin8 needs to be strengthened for the benefit ol resales. with unique sellin8 point5 such a5 resident spokespe0￿e ané a regular supply of case studies bein8 Plotecied and built upon.. New entrènt5 in the market will compet& with us for luture siies. We Should build on our existing partnership5 With local authorities and others. to secure suitable sltes; and Olhei providers arid ARCO membeis use higher deferred char8ing IthÈ lees charged on e￿tI as their bu5iTress model. We should rnonitor this approach and cDnsider rfthis could benefit us. In addition. and in partnefship with three other ARCO members. we have previously cornmissioned the International Lon8eYity Centre UK IILCUKI to undertake a study into the future market for retirement communities. The findings deepened oltr undefstanding of the needs and expettatitsns of both current and future tustomers, and include.. All older age groups are set to grow in absolute and relatwe terms. bLrt single male household5 couple households are particular growth 8roups. We Should consider how we can atlapt ¢)ffer and marketing to reflect this." People's chtrice to move is more driven by 5atlsfaciion. than by finan£ials. AÉaiTr. in our messaging and approach. we shovld be clear about satisfacfion levels amollK resident5. alld other benefits we know from our Asion and Lancaster University research.. If retirement communities don't grow in line with demand. there is a risk Ihat rnainstream housing providers ￿11 offer bespoke hou5inKfor oldei age 8roup5: We need to understand our future cu5torners and their driver5 for movin8 better. In particular,. Jre people by and large seeking security, or are they people who value their independence?: and There is a'sweet spot. for movin6 into a retiremeni cornrnunity, which seems to be betweetb 70 afid 85. Any earlieT, and people are more likely to think they've moved loo yovn& any latw and people are more likety to think they left it too late. We £ontinue to invest in better understanding our markei and our customers to imwove our services and refine and protect our unique rnodel of hornes people want, a lifestyle thry can enjoy aDd care if it's needed. Section 17211) Statement 5172111 of the Companies Acr requires a d¢re(tor of a company 10 act in the way they consider. in good faith. would be most likely ro promote the succe55 of the company for the benefit ol ils rnernbers as a whole and in doing so have regard. amongst other matters. to.. The likely consequences of any decision in the long-terrn: The intere5t5 of the company's ernployees.. The need to foster the company's business relarionship5 With suppliers. customers and others.. The impact ol the cornpany'5 operatlOn5 on the corninunity and the environment.. The desirability of the company mainrainiTr8 a repuiation for high standards of busines5 conduct.. and The need to act fairly betwÈÈn mernbers of the company. Our residents are Ouf key stakeholders. Reports submitted to tsur Board for considerotioh include the requirement to outline any irnpact on our residents and any consultalion th* has taken place or is planned." this tncludes consultation requirements on the shon. term impact and the longer-term implitalions of detisions. The consultation then informs the decisions and business planning. Now thar we are once again 3ble to have *n person Board Meetings. our Trustees are again taking the OPPDrtunity after Some Board meetines to meet with groups of residents $0 that theirvoices are heard dirertty. This direct resident engagement is critical to ensuring thar stakeholders have a voice ané are part of the way in which the Board ensures community impart is addre55ed. For further information on how we as a charity have engaged wth our ern￿0vee5 durin8 ihe yeai please see sertion 'Stafl en8agemenr' on pages 14-15. Other stakeholder interests. $￿ch as those of our funders and Suppliers. are a150 routinely considered and during the pandemic steps were taken to ensuie ihai our bussness relaiioDships coniinued a5 closely to normal a5 PD5sible. We 18 Annual Report & Accounts.. 2021122 Extracare were able to reassure our Board that arran8ements were in place to ensure the payment ol our staff and suppliers was uninterrupted during the pandemic. Our Charity invests in technology ro help improve our residents, qualtty of life and we also consider the impacl ol our operètions on the environment and wider communiiies. See pages 28-29 forfurther informotion Dn enwronrnental considerations and attions tèken in theyear. and pa8e5 31-32 for People. Proce5se5 and TechnoloBy_ Our investment in iechnology is also part of our long-term focus. Our Trustees consider both short-term and lon8-term implications ol decisions rnade. and thi5 has been especially Importafit in relation to the unique circurn5tance5 of this financial year. Our Trustees believe that, individually and iogether. they have xted in ihe waythat They con5iLler. in good fèith, would be mosr likely io promote the succes5 of the Charity for the beneflr of its beneficiaries. having regaré to the stakehDlder5 and rnatter5 Set out in 5172111 (a-fl of the Companies Act 2006 In the decisions iaken durin8 the year. Our Integrated Model Our MIS￿On is -creating sustainable crMnmunitie5 that provide home5 older people want. lifestyles they can enjoy and care rf it's needed". Our unique mtsdel 15 based Homes. Lifestyle and Care.. Homes: Our locations typically Offer high-quality apartments fortheover $5s." each home 15 accessible with it5 own front door, hallway, living roorn. typically one or two bedroomlsl. kitchen and shower rotsm. M05t w￿11 have a baltany or patio. We are always learning from previDUS developmenrs and modern15ation programmesand aim to'futureproof ovr properties for our residents. This currenilv incluées assessing the environmental impact of any cornponent5 that we include in our desiÈn brief. As at 31 March 2022, 35% of our properties are for 50ci3l rent. In 2(￿) it was 94% and in 2010 it wa$ 62%. which indicates how significantly our rnodel has shifted over time. We have moved away from managing property on behalf of other Re815tered Provider5 to Create the mix of social rented. shared ownership and full ownership homes.. providing diverse integrated retirement ctsmmunities that are avaslable lo all. Lilestyle= Our locztion5 proviée leisure facilitie5 which promote o healthy lifestyle and typically Include.. a bistro. café-bar. gym. 8reenhouse, (raft and hobby moms and wllage hall. The range of actryities may include Zumba, choii Singing. wheelchair aerobics, dtgltal skills workshops. intef8enerational aaivitie5 such as stay and play eYoup5. 50ciablè outiTr85. and entertainment. We ore now able to 8eneraie customer in518ht by cornparine data Irom our wellb*ng a55essments which are condurted before Tesidents move in with our latest wellbein8 assessments. focvsing on improving areas including exercise frequency. loneliness. ané social netwt>rks. Volunteering IS at the heart of our Charit*5 ethos. offering OPPOrtunitiesfor peopleto use their skills and experientÈ, build conhd*nce and a Sense of 5elf-worth. whilst redLKinR Potential loneline55. Resident and external volunteers prowde invaluable support. helping activitiÈs and faciliiies. or supporting fundraising within our communities or Extracare Charity Shops. Our Iccation5 are vibrant social hubs and visitors intlude thildren. schools. unwersities. and communty Eroup5. Visitor5 can a150 use our facilities ¢ncluding our gyms as part of an affordable meml)ership that support5 our charitable income. Care: Each of oui locations offer care 5errices via on-site care semce. delivered throu8h both the day and ni8ht. Care services are predominantly assessed and delivered by our own Staff. although we do allow external providers oAsite. Our services are registered and inspected by the CQC. Wellbeing se￿1£e. Operated by a ream of Wellbein8 Advisors. Ihis award-wnninB service offers preventètive health advice and promotes healthy life choices. Re5ident5 thow have a cornprehensive baseline assessment (carried out on tsur wellbeing appl before moving in. so that we have a better understanding of their health and social care needs. Our resilierbce tool (developed with Aston and Lancaster Universities) can re-assessthose residents identified as frail and support them through personal Boal settine to become personally more resilient. 19 Annual Report & Accounts: 2021122 Extracare Dementia and Mental Wellbein# SeNice.' Implemented through specially trained staff. our Dementia and Mental Wellbeing Service offers tailored support for residents ITving wilh dementia or a cognitive impairment and common mental health condition5, airning to reduce ihe ifflpoct of dementia and improve wellbeine. It also 5UPPOrts residen(s to get a diagn05TS of dernentta where applicpble, aligning with national targets in England. Progress against our Annual Business Plan key targets For 2021122 we had an Annual Business Plan t0 1nform our ambitions for the calendar year. This followed our Board's decision to defer cur next five-year Corporate Plan to allow us to assess the external environrnent. Our 2021122 Annual 6u5ine5s Wan contained Several targets for the financial year with progfe55 for each of these targets being captured in our corporate balanced scorecard repmed to our Board and Comrnittees. Six of these were key tar8ets ané ovr self- assessed performance against them is shown overleaf.. KeyTarget 2021122 Secure all approvals Iinil. planniTrg ffietnots ol construction) for Shenley Wood 3 and one new village to ￿able tK)th io start on site 15ubjeci to fundinel- Panially achieveo. 8oard approved purthase of lano for SW3, use of deyn rnethods of con5truclion and the overall bud8et at th￿r March 2022 meeting. SW3 start on slte scheduled for autumn 2022. • Planning for Worcester Village on-hold a5 Council now rev&ewin£ the local plan Iwhith had not been adoptedl. E70M included in CP 2022-27 for a new village. Achieve CQC good or outstandin£ for all locations inspecied. Achieved. No CQC inspections took place in 2021122. 18120 registered locations have a rating of Good or OLrtstanding, I IcKation has not yet had it5 first in5pertion and I location has a rating of Require5 Improvèment. eK&th locations have been audited internally and outcome indicates both meet the requirements for a ratin8 of Good. Achieve resident experience ratings of 80% in villages and 90% in schemes. Achieve siaff 5atisf3ttion xores". 75% of our ernployees wll be satisfied with Extracare as an employer and 90% of our employees will be fully con7mitted to our vision. . khieved. 91%Villa8es & 94.7% Schemes. Partially achieved. Satisfattion with ECCT not achie¥ed- ¥ore was 68%. • Fully committed to tsur vision athieved- stole was 91%. Achieve a total surplus in excess of £J2M and limit the undedyin8 operatioftal loss li.e. ex¢luding r￿ales} to £1.2M' Achieved. Year-end surplus is £17M anLI operational performance is break- Ensure we meet oi exceed the Re8vlator of Socbal Housin8'5 expectations. Continued PTogress rnade against the ￿lerna￿te plan. with our RSH self- assessnient reflerting that progress. ' Thesefi8ure5 are bJsed tryon ouryeJrenrf manalemerf actoYnrsar￿ thren*Ms. (bw¥ti￿l PErformart¢¢ ￿She a¢¢ouhtslKuse5 ¢Jn LtsCètiOnS Ferftsffh￿E, la1h*tthanthetyetalOp￿￿Iry p*f0mm￿e. 20 Annual Report & Accounts.. 2021122 Extracare Financial Performance Our financial performance over the last three years is refierted below. 2021122 2020121 2019120 Operatlng defficit Totzl Cornprehensive Incomè 1£1.3MI 1£3.IMI 1£3.3MI £17.3M £18.4M £47.3M Turnover £47 OM £41.7M £44.2M Reser¥es £282.9M £265.7M £247.3M All properties that have leases granted Ifull and part equity) are held fr)r ca￿tal appreciation and are tonsiijered by the Board to be investment properties_ These are rtrvalued at each balance sheet date ai iheir fair valve. with any fair value movernent recoenised in the Statement of Comprehensive Incomeforthe period. This only applies to theleasehold properties", renred properties held for s¢xial housing remain on the balance sheet at historic cost ènd continue to be depreciated. -. ￿1VfMl Intioduttion and context Vfm infoTrn5 how we plan, manage and operate ovr Chariryto efi5ure ihat we rnakethe best 115eof our resources to deliver our vision of better lives for older people and into the future. We Llefine Vfm as getting the right balance of inpurs. process and outcorne5. as described by the 3 E5.. Econoryw.. achieving the best price for what goes into prowding a ser¥ice. minimising the resources required focv5ing on cost savin8. ¢QSt avoidance or income generation: Efficiency.. to accomplish sornerhine with rhe best use of time and effon.- and Effectiveness.. rhe relarionship between the intended and actual ￿ul Regulator of Social Housing IRSHI Vfm metrks. targets. and performance Our performance against the RSH metrics is 5h(Mn below. RSH Vfm - rnetrics. t3rgets & performance 2020 2020121 2021122 TarKet 2021122 2022123 Target Siorecard median l. Reinvestment 6.1% 2.4% 0.4% 0.7% 0.7% 2. New sup￿￿Y Social Housing Nofi-social Hou5in8 3. Gearin8 4. EBITDA MRI. 5. Headline Social Housin8 Cost per unit 6. Operating Margin (Trerall Social Housing 7. Return on Capital Ernployed IROCEI -0.7% Farning5 before 1nieresi. tsxaiion, depieouble Robot device5 piloted at Wixarn5 and Stoke Giffotd villales were used during the pandemic io. keep residents in contact with relatives. for virtual assessments with healthcare profes5iona15. ond to enablè isolated residents to participate in exercise cla55es- The RGS Care 5en50rs15en50rs that check how re5ident5 are livin8 in th•r apartment re8ardin8 heat, light, movement, noise etc.) were increased through a grant Irom Innovate UK to RGS Care. so that every location had a full sÈt. Residents with issues Sltch a5 dementia or mental health were supported during the pandemic and 501utioTrs identified to ensure safety and ongoing independence.. and Our 'future proofinl research in conjunttson with the lThtemational Lt￿￿e¥lty Centre UK anLI Ctsvid-19 research with Aston University continued ro provide the evidenfefor our model. approach in the pandemic. at the 5arne time maintaiThing our piofile as a lÈaéing provider and innovator in the sector. People, Processes and Technology People Our strengFh lies in the quality and commitmeni of ￿￿r workf0￿e and ¥￿￿nteers. Creating the right environment lor our customers depends on the collectNe elfort of all our collea8ves. The 'lnvestors in People, IliPI award is a recognition of good practice in how 3n or8ani5ation engages with, enables, develops and SUPPOrts it5 people: we hold Gold Award statustrom lip and we aim to maintain this levd during our next moderation in the upcominE financial year. Our 2021-24 People Strat￿Y supports vs in meetin8 our corporate commitmentto review howwe attract. retain. develop and engè8e with our people and develop our cult¢Jre. We are tommitted to providing a competitive pay and benelits package to current and prospective staff and have implemented the Real Liying Wage to Trust staff. We3cknowledBethat recruitment and retention are issues both in ovrsertor ané atrossother sectors, and therefore investin8 in our ernployees 15 essential. In Marih 2022 our Board approv￿ a 6% pay award irKrea5e, with all staff receivin8 a minimum of 4%. and many of our colleague5 who undertake front line care delivery role5 receiving a higher pwcentage increase Irom I. Apcil 2022. 2? Online Social Media Assistants and eightAdministrativeAssistanrs were recruited as Kickstarttrainees in phase one tsf ihe Kick5tart Scheme. In addition to work experience additional tratning was Lldivered to the Kickstart individua15 to develop their skills and experienceon customer seryice. comrnunication. irbterview techniqves and updaiingtheir CVS. At the end of this phase one individu81 secured a peTrnanent rolewith Extracare, two int11￿￿ualS secured relief contracts. Four ifidi¥idua15 havecoTrtinuedtovolunteerwithin 31 Annual Report & Accounts: 2021122 Extracare our charity shop5. The ernployment experience and skills provided has also ena￿ed Thine individua15 to secure permanent roles extèrnally artd two indiwdu315 chttse to go tts university. A lurther 17 indmduals were recruited in phase two of the programme and are currently undertaking their six-month placernenl5. Our 2021 staff survey showed ih*'. 68% of our employees are satisfied with Éxtracare as an employer-ourtargei wa5 7S%,' aThd 91% of our employees remain fully comrnitte"d to our visiw and values- our target was 90%. Our survey highlighted a need foi us to do rnOTe around reward and recognTlion: an empha515 OTh learning and developrneni opportunilies., and ihe need for increased employee engagement activity. IT and Digital Globally, the proliferaiion ol (Ji8ital health tethnoloRY continues and is set to build rapidly as a result of the Covid-19 impact on care and health provision. At Extracare we will continueto explore and deploy smart technology 501utioTrs wherethese improve residents, quality ol life, promote indepen¢Jence. and reduce the operational costs ass(*iated wth front line care prowsion. Digital technologv wi11 also sUPPOrt increa5eé efficiency across our managernent and working practice5,' this approath has been accelerated as a result of a changed working environrnent linked to the crisis. We have embarked ￿ an ambitious digital transformation proyammeio improve performance within EKtraCare by rnaking optimum use of digital solutions. We will be working to a set of architectural princi￿eS ihat in part will See us introdvce Microsoft ￿naMiC$ ès our core tommercial hub- an enterprise @rade rnulti-functionol platform that wll give us a solid foundation for digital growth. The hi8hly inte8rated nature of data and 501utions available on the Microsoft (Jynarni¢s platform will reducethe need for custom and bespoke integrations between Llisparate systems. making workflow and awoma11￿ easier. and helpin8 US to leverage data. On behalf of the Trustees-. Nitholas Baldwin CBE Chair 21 September 2022 32 Annual Report & Accounts: 2021122 Extracare THE BOARD'S RESPONSIBILITIES IN THE PREPARATION OF ACCOUNTS The Board as irvstee5 (who are also the directors of The Extracare Charitable Twst forthe purposes of company lawl are responsible lor preparing the Annual Re{￿rt and the financ•al statements in accordance with ap￿1(able law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company. housing and charity law requires the Trustees to prepare accounts for each financial year which 8ive a true and fair view of the state of affairs ol the Company ond the Group and of the incorne and expEnditure of the Group forthat period. In preparing the Group ènij Company financial statements. theTrusteÈs. as Lhreciors. are required to= a. Sel￿t suitable accoursting policies and then ap￿V them consistentty.. obser¥e the methods and principles in ihe s￿tement of Recommended Practice 'AccountinB by Registered Housing Providers Update 2018.: make judgements and estimate5 that are reasonable and prudent- d. state whethef apthicable United Kingdorn Accounting Standards have been followed. SU￿.e£l to any material departvrÈs disclosed and explained in the financial st4tements.' preparethe actDunts on the 8oin8 ¢tJncem ba515 unless it is inapyowiateto presume that the Company and Group will continue in busine55. The Trustees, as Direcrors. are responsible for keeping adequate accovnting records that are sufficient io show ènd explain the Group's and the Compafty's transaclions ind éistlose with rÈasonable atturacy ar any limèihe finantial position of the Company and the Group and enable rhem to ensure that the financial ststements tornp￿ with the Companies Aci 2006, the HousinE and Regeneration Acr 2008 and theAccountine ￿'rectIOn forPFiv?teRe8isteFed Providers of Social Hous1￿ 2019. They are also responsible for safeguarding the assets of ihe Company and the fjroup and hence for taking ieasonable steps for the prevention and detection of fraud and other irregularitie5. The Trustees are responsible for the maintenance and integrity of the corp)rate and finarKial inforrration included on the Extracare Charitable Trust webslte. LegislatlDn ITr the United Kingdom governing the preparation and dissernination ol financial statement5 rnav differ from legislation in other jurisdiaions. 33 Annual Report & Accounts- 2021122 E)ttraCare INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE EXTRACARE CHARITABLE TRUST Oplnlon We have audited the financial staternents of The Extracare Charitable Trust Ithe'Parent Company'l and its subsidiaries Iihe'fjroup'l lor the year end￿ 31 March 2022 which cornw5e the Con501idated Statement of Comprehensive Intome, the Group and Charity Statements of Financial Position, the Group and Charitystatement of Chan8es in Reserves, the Consolidated Statement ol Cash Flows and notes to the financial Statements. including significant accounlin8 policie5. The financial reporting framework that ha5 been applied in their preparatiorb is applicable law and United Kingdom Ac£ouDtinR srandards including FRS 102 -The Financial Reportin8 Standard applicable in the UK and Republic of Ireland- Iuniied Xingdorn Generalty Accepteil Accounting Piacticel. In our opinion the financial st8iements'. give a true and fair view f>f ihe state of the Group's and the Pareni Companvs affairs as at 31 March 2022 and of the Group's income and expenditure for the year then ended.. have been properly prepared in accordance with Uniled Kingdom General￿AccePted ACcount￿n£ Practice., and have been properly prepared in accordance with the requirements ol the Cornpanies Act 2006. the Housin8 and Regeneration Att 2008 and the Accounting Direttion for Privaie Re8i5tered Providers of 50(ial Housing 2019. 8a51$ for Dpinion We have been appointed auéitors under ihe Companie5 Act 2LK16 and settion 151 of the Charitie5 Att 2011 and report In accordance with those￿1$. We conducteé our audit in accordance with International Stondards orb Auditing IUKI IISAS IUKII and applicable law. Our responsibiltties under those standards ale further described In ihe Audirorfs responsibilities for the audit of the finan£ial 5tatement5 section of our report. We are Independent of the group in accordantè with the ethital requirements thar are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilleé our other ethical responsibilities in ccoréance with these requirements. We believe that the audit evidente we have Libtained is 5uflitient and appropflate to provide basis for our opinion. Conclu￿oN$ rtlatin£ io golng concern In auditing the financial statements. we ha¥e concluded that the Trustees. use of the going toncern basis of accounrin8 in the oreparation of the financial statements is appropriate. Based on the work we have perfttrmed. we have noi identrfied ahy material vntertainiies rdating to events or conditions that, individuèlly or collectively. may cast ￿gnIfIcant doubt on the group's or the parent cornparrfs ability to toniinue as a 80ing concern for a period of at least twelve rnonths frorn when the linoncial staternenis are avthorised for issue. Our re5ponsib'litie5 and the re5pon5ibilitie5 of the Trv5tee5 Wth respect to £oin8concern are described in the relevant sections of this repLTrrt. Other Information The oiher information comprises the tnformarion included in the annual report, otherthan the financial statements and our ayditorfs report thereon. The Tru5tee5 are responsible for the other information contained within the annual report. Our opinion on the finantial statements does not cover the other informarion and. except to the extenr otherwise explicitly stated in our rewrt, we do nor express any forrn of a5suraThce conclusion thereon. Our responsibility is to read the other information and, in doing so. consider whether the other inforrnation is materia11y inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears ro be matèrially misstated. If we identify such material inconsi5rencies apparent material misstatements. we are required io determine wheiher thi5 gives rise to a material misstatement in the financial staiements themselves. rf, based on the work we have performed, we conclude that there 15 a material misstarernent of thi5 Other informatiorb. we are required tD Ye￿rt thai fau. We have norhinB to report in this re6ard. OplnloThs on other mattels prescribed by the Cornpanies Art 21M)6 In our opinion. based on the work undertaken in the course of the audit.. the inlomation given in the Strate8ic Report and the Oirertors, Annval Repm for the financial year for which the financial staternents are p￿pared is consistent wAih the financ4al statements- and 34 Annual Report & Accounts= 2021122 Extracare the Strategii Report and the Directors. Annual Report have been prepared in accordance wrh applicable le8al requirernents. Matters on which we are required to report by e¥¢eption In the light of the knowledee and under5tan¢Jing of the Group the Parent Company and its enwronment obtained in thecourse of the audit, we have not identified material misstatements in the Sirètegic Report ané the Directors Annual Aeport. We have nothing to report in respect of the followin8 matters ift ￿latiOn tD which the Companies Att 2006 reouires us io report to you if. in our opinion.. adequate accouAliNg re(ords have not been kepi by the Pareni Company. or returns adequate for our audit have not been received fr(Mn branches not visited by us: or the Parent Cornpany financial staternent5 are not in agreemenl with the accounting records and retums., or certain disdosures of Trustee5' remuneration speeified by law are not made- or we have not received 311 the information and explanation5 we reouiie lorow audil. Respective respon￿bIlItIeS of Trustees As explained rnore fully in the Trustees. Responsibilities Statement set out on page 33 theTrustees Iwho are also the Directors of the Company for the purposÈs of £ornpany lawl are responsible for the preparation of the financial statement5 and for being Satisfied that they give a true and fair view. and for such inieTnal control as the Trustees determine is necessary to enable the preparation of liDancial staiements that are Iree from maierial misstaiemeni. whether dueto fraud or error. In preparing the financial 5tatement5. the Trustees are responsible for assessing the Group's and Parent Company's ability to coniinue as a going concern. disclosing. as applicable, matters related to going concern and using theeoing concern basis of accounting unless the Tru5tee5 either intend to liquidate the Group oi the Paient Company or to ie35e operation5. OT hove no realistic alterThativE but to éo so. Auditoes responsibilities for the audit of the financial statements We have been appointed auditors under the Companies Act 2L¥J6 and sertion ISI of the Charities Act 2011 and report in accordance with those Act5. Our objectives are to obtain reasonable assurance obovt whether the financial 5toternents a5 a whole are free from m•terial misStaEement, whether due io Iraud 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 Èuarantee that an audit condvcted in accordance with ISAS IUKI will always delect a material misstatement when it exists. Misstaiement5 Ian arise frorn fraud or error and are considered rnaterial if, individually Dr in the aggregate. they could reasonab￿1 be expected to influence the economK decisi￿$ of users taken on the bastrs of these financial statements. The e￿ertt to whi¢h the audit w35 ¢onsldered capable of 41etecting irregulariiies. including traud 1rre8ularitie5 are trnstances of noTr-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulaiion5 thai have a direct effect on the determination of materi81 amounts and disclosures in the financial statements. to perform audit protetlures to help Identify instances of nonm investing attivitie5 Purchase of tangible fixed 355ets Proceeds on sale5 of fixed assets Grants received Interest reteived Investments in current asseis 12.5361 525 114.3251 640 I20.￿￿1} Net cash used in investing artivities 122,0101 113.6791 Cash flow from financing artivitie5 Interest paid New Secured loans Repayments of borrowings Paymenrs received on property lea5e5 Satlement of property repurchase liability 15.3831 16.0461 28.000 144,0861 64,943 125,7591 11.0861 71,337 132,5191 Net cash used in fiThan¢img art6vities 32.349 17,052 Net change in ¢ash and ¢3sh equivalent5 6￿82 11.3981 Cash & cash equivolents at beginnin8 of iheyear 3.804 5,202 Cash & cash equivalents at end of ihe ye3r 10.686 40 The Extracare Charitable Trust For the yeay ended 31 March 2022 Notes to the financial staternents Extracare l. Legal status The Extracare Charitable Trust is a private cornpany limited by 8uarantee re6istered and incorporated in England and 15 an English registereé social housin8 prowder. The addres5 of Extracaie's re8i5teied office and principal plate of business is 7 Harry Weston Road, Binley 6u5iness Park. Coventry. CV3 2SN. The principal activities are prO￿dIng housinE ané tare to oldèr people. 2. Principal accounting politiès Basis of accounting These financial statements were prepared in accordance wth Financial Repurting Standard 102 'The Financial Reportin8 Standar applicable in the UK and Republit of Ireland, I'FRS 102.1 ané the requirements of the Companies Act 2CQ6. including the provi510115 of the Large and Medium siied Companies and Groups (Accounts and Reportsl Aegulations 21M)8. They are prepared under the hisiorical cost convention modified to include tertain financial instruments ar fair value and accordinB to the Housing SORP 2018 'Statement of Recommended Practice for Registered Housing Providers.. They also comply with the Accountins Direction for Private Registered Providers ol Social Housing 2019. MoTretary amounts in these financial staternents are rounded to the nearest whole £1,000, except where otherwise indicated. Public Benefit Entitv The Charity is a Public Benefit Entr(y. as defined wfLhin FILS 102 as -an entity whose primary objective is. to pro¥(de goods or services for the general publi¢ community ¢y social benefit and where any equitv 15 provided with a wew to 5UPPOrting the entity's primary objertives rather than with a view to pro￿ding a financial reium to equity providers. shar?holders or members" Basis of consolidation The 8roup accounts tonsolidète the attovnts of the Charity ènd its subsidiary undertah"ngs. Intra group transactions, balances d profits are eliminated on consolidation. The consolidation is carfied out OTh a line by line basis ané all entities have coterminous year end dates. The accounts for the Charily include re(harKes ￿th a subgdiary undertaking which runs charity shop5 to raise charitable fuDds. The recharEes are based on resour(es use(1 anil payments made. The parent Charity has taken advaniage of the exemption from presenting its unconsolidated Statement of Comprehensive Income under Section 408 of the Companies Act 2LN)6. The Company has taken advantage of the exemption frDm disc105in8 the following inlormation in its company only accounts. as permifted by rhe reduced di5c105ure r4irne within FRS 102: • Section 7'Statement of Cash FIow5'_ Presenlation of a Statement of Cash Flow and related notes and disclosures. Goin6 Concern Our 30-year financial plan is based on robust 355umptions and includes a tarEet headioorn of £20M in liouid asset reserves to allow us to with5tJnd a ran8e of potential risks. Followin8 stre55 testing the Board agreed for prudent assurnptions around the net cash inflow from granting of Subsequent property lease5 to be factored into our business plan to mitigate our market risk exposure to fact￿5 such as a pandemic. The Board reco8nises that the covenants in place with funder5 are calculated u5in8 values from the finafici31 statements as prepared based on the accounting policies in place prior to the 201912020 chanEe of actountin8 policy. HaviThg made enquirÈs of the fvnders and received assurance5 from the funders and receivetl legal Euidance. the Board are satisfied that covenant compliance for the1oans disclosed in note 19 of the financial 513ternents will be judged by both fvnders under the previou5 basis of accounting. for a period of at leasi 12 months from sign off of these financial 5ratement5 or until the Charity initiètes the agreement of new covenanis, based on mufyally acceptable calculations. Covenant calculations have therelore been prepared, which demonstrate tompliance. based on the previous accouniin8 treatment and reconciled back to the linancial 5tèternent5 prepared under the revised actovnting basis. 41 The Extracare Charitable Trust For the yearended 31 March 2022 Notes to the financial statements Extracare Our financial statements comply with all the current statutory requirements and with rhe requirements of the Charitvs Artitles of Association. After making all reasonable enquiries, frjr a period of at least 12 months Irom sign off of these financial siatements the Boaré have a reas￿able expettaiion that the Group has adequate resources to continue in operational existence for the foreseeable future. In coming to this decision. the Board have considered on-goin8 financial perforrnance data, stress testing of the cashflow, and any attual oi potential future liabilities. The Board are therefore confidenr in confirmtn8 that the Charity 15 viable as a going concern. Turnover Turnover is measured at the fair value of ihe cash £1￿$1dera[IOfft fecei¥ed or receivable. The Charity 8enerate5 the followillB material income streams". Rental Income receivable (after deductir6 losi rent from empty propertte5 available for lettingl.. arnd Invoiced amounts r￿e1Vable from the delivery of care and health seNices. Rental income is recoETrised from the point when properties under development reach practical tompletion and are let. Grants. donations, legacies and similar income are accounted for as 500n as their arnount and receipt are cenain. In the case of un501icited donations, this is usually only when they are received. while fundraising result5 are accounted for when the tommitment is made by the donor. subject to fuffilment. Grants. where entitlernenl is not conditional on the delivery of a specific performance by ihe Charity, are recognised when the Charity becomes unconditionally entitled to the 8rant. Turnover is included on an accrua15 basis. The Income from gooés donated for resale in the Charity shops is included in the accoufits when those goods are sold. No value 15 placed on any Stock of such Eocd5. Donated service5 facilitie5 are included èt the value to the Charity where this can be quantified. Investment income 15 included when rec¥vable by the Group. SÉrvitÈ charges Where schernes are on fixed service char8es. income is recognised in the financial statements in line with the arnounts charged to the occupant. Certain village5 operate vaiiable semce charge5_ Where there is any difference between the estimated c05t rens. Thereby adopting the ameDdment to FRS102 "Multi-employer defined benefil plans~ issued in May 2019, earty Actuarial 3ssvmption5 are applied to determine each companrfs share of liabilities. The assumptions are updated at the year end, and the changes te the position go ihrou8h the'other Comprehensive Income. statemeni. Calculation5 sre carried out annual￿ and in(JepeniJently of the pension triennial val￿atIOn. The rate used to discount the benefit obli8ations tt) their present valuè is based on market yielrfs for high qualitv corporate bonds with terms and currencies consistent wih those of the benefit O￿l83t10￿$. One employee is a150 a member of a gr0￿h plan operaied by The pens￿￿S Trust (being the SHPS managers). Fvr Ilie fjrt￿th Plan. contribvtions are re(08nised ITh expendittsre in the period to whKh thEy relate as there is InSUff￿lent ififormation available to use defined benefit accounting. A liabilr(v is recognised for contributions arising frorn an agreement with the multi-employer pl8n that determines how the Charity will fund a deficit. Contr¥butions are discounted when they are not expected to be settled wholly wirhin 12 month5 of the peri(MJ end. 43 The Extracare Charitable Trust For the year ended 31 March 2022 Notes to the financial statements Extracare 2. Principal accounting policies Icontlnued) Tanglble fixed assets- Housing properties Housing properties are properties for the prowsion of social housing and are pnn£ipally properties available for rent and are Stated at cost less éepre(13tion. Cost includes the tost of acquiring land and buildings. development costs, interest char8e5 incurred during the development period and expenditvre incurreil in respert of Improvemenis. Improvements are works to existing properties. and component re￿aCeMents which have been treated separately for depreciation purposes. which result in an increase in the net rental income. wch as a reduction in future maintenance costs. or result in signilicani extension of the useful economic ITfe of rhe property (n the business. Onty the incrernental direct overheaij to£t5 associated with new developments or impiovements are capitalised. Direct overhead costs comprise the costs of staff time, including salary costs and other app)rtioned direct cosis. incLtrred on the deve1oprnents from the date from which it is reasonably likely that rhe development wll go ahead. to the date of prattical coM￿et10￿. Investment properties The classification of propertie5 as investrnent property or property, plant and equipmefit is b•5ed Ltpon the intehded use of the propertv_ Mixed use property is separated between investment property antl property. plant and equipment. InvEStment properties are initially measured at cost and subsequently measured at fair value annually with any change recogni5ed in the Statemeni of Cornprehensiv¢ lThcorne. This calculation 15 based on the lease price achieved for a property. or on the avera8e price of a similar archetype Ilo£ation. property size. and other design spetifitationsl. Each investment property is measured based upon attive secured pritÈs. Investment properties are noi depreciated. Investment properties are leased through an upfront payment. equivakni in value Ifor the proporth)n of the property leased) to a commercial outright purchase. When a lease is terminated. the Charity has a contractual obligation to refund the payment, less a 1% per annum deduction (to a maxirnum of IO%I. At the end of any lease rhe Trust could take the decision to lease the property under different terms. including remowng the obligation io repurchase. It would be at this point that any ttypiial appreciation would be realised as a capital gain. Such choice is within the powers of Trustees tts make at a time when priorities may suggest it would better support the Charity 5 activities. Donated land Where lané is transferred by IDcal authorities and other puNit bodies for tonsideration below market-value. the difference between the market value and the consideraiion given is added to cost ai the time of the donation anLI incluLled within the Siatement of Financial Position as a liability. in accordance with treatment as a non-governrneni grant. Fixed Asset Inve5trnents In the separate accounts of the company. interests in Sub￿"dIaTieS are inttially rDeasured at cost and 5vbsequently measured at cost less any accumulated impairment1055es. Interests in Subsidiaries are assessed for impairrnent ￿ each repJr¥i08 date. Any impaiment. losses or reversals of impaimient losses are recogpised imrnediardy in profit or Ioss_ Government grants Govemment grants include grants receivable from Homes Éngland. local auiho¥itie5 and other govemrnent bodies. Social Housing Grant1SHGI 15 a government grani made to the Charity towards ihe cost of acquiring andlor building adLiicional housing for rent. No Gfant is receivable in respecr ol Investment Properties. Government grants are r￿0@nised at the lair value of ihe asset received or recetvable when there 15 reasonable assurance that the giant conditions will be met and the grants ￿11 be received. Governtnent giants received lor $0(ial housing propertie5 are re£oÉnised in inctyne over the useful economic lrfe of the structure of the asset (excluding landl under the accrvals model. Governrnent Brants relating to revenue are recognised as income over the periods when the related costs are incurred once reasonable assurance has been gained thai the Challty will compty with the condition5 and the fvnd5 will be received. 44 The Extr3Care Charitable Trust For the year ended 31 March 2022 Notes to the financial statefflents Extracare 2. Prlncipal accounting policles Icontinuedl Other grants Grants received frorn non-governfflent Sources are retognised usiftR ihe performance model. Grants are reco8nised as incorne when the associated perfoTmance conditions are met. DEpreciation As5et5 lOStin8 more than El.l))O are capitalisetl at cost. Assets under construction for s(Kial housing are not depreciated until brought into Operational use. Depreciation of fixed assets is charged by equal instalments commencing with the date of acqui5￿tIOn at rates estirnated to write off their tost or valuation less any residual value over the expected useful lives which are as follow￿.. Freehold land not depre(iaied Freehold buildin8s- Social housing Main Fabric Roof & Covering Elettrics Windows & External Owrs I{￿ years 70 years 40 years 30 years Baihroom & WC Methanical Systems Lift Kitchen 30 yea¥s 30 yea¥s 28 years 20 years Freehold buildin8s- Investment properties Leasehold propertv Furniture and equipment Motor vehicle5 not depreciated over period of lease over 2 to 6 years over 3 year5 Current Asset Investments policy The Group's current a55et investrnents are (la￿lfied as finarKial instruments and accovnied for at fair value through profir or1055, in aciordance with ihe accounting policy set out under Financial Insiruments on page 46. Operatrn8 Leases All leases are operating leases and the annual rental costs are charged to the Consolidated Staternent of Comprehensive Income on a straighr line basis over the lease term. Financial lTrstrument5 The Charity has elerted to apply the pro¥i&ion5 of Sertion 11 '8asic Finanti31 Instrumenis. and 5ertion 12 '0ther Financial Instrurnents Issues. of FR5102. in full, to all of its finantial instrument5. Financial a55ets and financial liabilities are recoÈnised when the Charity becomes a party to the conlractual provisions of the instrument. and are offset only when the Chartty currently has legally enforceable ri8ht to sel off the reco8nised arnovnts and intends either to settle on a net basis. or to realise rhe asset and settle the liability Simultaneou￿¥. Financial Assets- Debtors Debtors whith are receivable within one yea.r and which do not constitute a financinK transartion are initially rneasured at the transaction price. Rent debtors are 5ub5equently measured at amoni5ed cosi. being the transaction price less any amounts settled and any Impalrmènt losses. Where the arrangernent with a rent debtor constrtute5 a financing transact￿. the debtor Is Initial￿ and subsequently measured at present value of future payrnents discounted at a market value rate of interest f¢y a 5irnilar debt instrument. A provision for impairment of éebtor5 15 estalli5hed when there is objectNe twidence that the amounts due will not be iollected according to the original terms of the contract. Impairment k>sses are re(ognised in the Staternent of Comprehensive Income for the excess of the carrying value of the rent debtor over the present valLe ol Ihe future cash flows discounteLI using the original effettive interest rate. Subsequent reversals of an impairment loss that objectively relate ro an event occurring after the impairment loss was recognised, #re reco8nised imme(l?ately in ihe Staiernent ol Comprehensive Income. 45 The Extracare Charitable Trust For the year ended 31 March 2022 Notes to the finèncial statements Extracare 2. Princlpal accounting politles Itontinuedl Financial Assets-Trade Investments Trade in¥e5trnents are equity investments over which the Group has no SiEnificant influente, p)int control or control and are initially rnea5ured at transaction pr￿e. Tran5a(tion price incluées transaction COSf5. except where tiade investments are measured at fair value through profit or Ios5 when transaction cost5 are expensed to profit or loss as incurred. Trade investment5 are measured ai fair value throu8h profit or 1055_ The foir value of trade investments quoted on a recognised stotk exchange is the quoted bid price. The lair value of uThli5ted investrnent5 is measured usinE valuation techniques which include turnover mult*ple. earning5 multiple, net a5sds or discounted cash flow5. a5 apwopriate. based on the nature and iircumstances of the invesrment. Finantial liabilities- Lease Buyback The Directors have considered the buy-back obligation contained wthin property leases granted by the Charlty and conclude4J that it meeis the definition of a financial liability under FRS102. As svch it has been presented with creditors.. amount5 falling due within oneyear to reflect thè on-demand feature contained within the contractual arrangernent. Financial Liabilities- Trade Creditors (including arnounts dve 10 coTrrractor51 Tiade Ireditors payable within one year that do noi constitute a financing transaction are initially measured at the transartion piice and subsequently measured at amortised c05t. being ihe transaction price le55 any amount5 settled. where the arrangement with a trade creditor constitutes a financing transaction. the creditor is initialty and subseouenily measured at Ihe pre5enl value of ftsture payments discounted at the market raie of interesr for a ￿milar instrurneni. Financial knabiliries- Borrowings 8orrowin8s are initially recognised ai the transaction price. including transaction costs. and Subsequently measured at atnort15ed C05t ustn8 the effective intetest method. Interest expense is recognised on ihe basis ol the emective interest method and is included in inierest payable ahd other similar charges. Promsions The Group recognises provisions where it has an obtigation at ihe reporting date as a result of a past event. whtch it is probable will result in the transfer of economic benelits and that obligation can be estimated reliably. Provisions are measured at the best estimate of the amounts required to sdtle the obligation. Vlhere the effect of the time value of money is material. the prtsvision is based on the present value of those arnounts. discounted at the discount rate that reflect5 the risks specific to the liability. The unwinding of ihe dis(ount Is recognised wihin inierest payable and financing costs. Crili¢èl A¢£ourttin8 Estimates ?nd Areas of Judgernent The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will. by tlefinitiom, seldom equal the ¥elaied actval resuh5. The estimaies and assumptions that have 3 significant fisk of cau5inE a material adjustfflellt to the carrying amounts of assets and liabilities within the ne￿ financial year are discussed below. Residual value of Social Housing As5etS The Charity considers the fabric ol buildings in social Housin8 Assets li own5 to retain a value at the end of iheir useful life. It review$ annually it5 estirnate of the residual value. taking a precautionory approach and recogni5ing reductions from changing market conditions and *rnpairment. Assets with a cost of £41.983K and a Net Book Value of £39.969K have noi been depreciated in the year due to a chan8e in estimate of their residual value. The thange affects the strurtural element of freehold propertie5 held within hou5in8 properties (Note 101. The net effert of this is a reduttion in the depreciaiion charge of E412K. with assets being stated at an equivalent increased value. There 15 no effect on income or liabilities_ The £harBe madÈ on all other components and on leasehold property remains unchanged. Defined benefit pension assumptions The discount rate and inflarion rate are conyderÈd to be key e5timares in calculating the defined benefii liability and sensitivities 46 The Extracare Charitable Trust For the year ended 31 March 2022 Notes to the ftnancial staternents Extracare 2. Principal atcounting polities {continued) Critiial Area of Judgefflent In cètegorisin8 leases as finance leases or operating leases, management makes judgements as to Wheth￿ significant risks and rewards ol ownership have transferred to the Charity as lessee, OT to the lessee where the Charity isthe lessor. The granrinR of property leases are treaied as financial instruments lunder FA51021 as ihere is a contractuèl legal obligation wiihin our leases for buyba¢k.. this clause Is cla55ified as repayable upon demand which meets the definition of being a financial Instrument. A5 the tÈrms of the lease requirÈ repayment Upon demand. the buyback liability is reflecieé within creditors under I vear. In prattice, our experience of lease surrenders is that ihis panern ol bUyb￿kS does not materialise. nonetheless we are obligated to adhere to accounting standards. The risk and reward of priheld proptrties under for lettiA Construrtion £￿00 Leasehold land and buildinE5 £'ooo Total £'ooo £'ooo C05t.' At l April 2021 Additions Disposals Change ol tenure 133.396 366 520 179 417 134,333 545 11471 11471 At 31 March 202Z 133,603 699 417 134.719 Depreciation- At l April 2021 Depreciation charEed in the year Eliminated on disposal 13.324 1,834 1121 81 13.405 1,838 At 31 March 2022 15.146 85 15.231 Net Book Va￿@ Al 31 March 2022 118.457 699 332 119.4BB At 31 March 2021 120,072 S20 336 120,928 2022 £'ooo 1021 £'ooo Expenditure on work5 to existlng propertles Components capit3lised/improvement5 Amounts char8ed to ihe staternent of cornprehensive incLxne 314 672 21 599 986 620 FinaTrre Cosis A88regare amouni of finance costs included in the cost of housine propertie5 Aggregaie amouni of finance costs included in the cost of properties under Constr￿tIOn 4.021 4.022 4,021 4,022 Impairment The Charity tonsiders indnndual schemes to be separate Cash Gentrating Units ICGU'sl when a5sessiTrg for impèirrnent of housing properties held for letting, in accordanie with the requirements of FRS 102 and the Housing SORP 2018. During the current year the Charity has Identified no impatrm¢mt losses. 53 The Extracare Charitable Trust For the year ended 31 March 2022 Notes to the financial statements Extracare ¢)arftaNÈTnJsE 11. Other Tangible Fixed Assets - Gltyjp￿d Charf Furniture and oihèr Equipment £'o Cost.. At l April 2021 A(Jditions Disp05als 12.135 1.524 14581 At 31 March 2022 13,201 Depreciation: At l April 2021 Char8eLI ITh the year Released on diskW)sal 6.735 1.712 14581 At 31 Marth 2012 7.989 Net Book Value At 31 March 2022 5,212 At 31 March 2021 5.4¢K) D￿rIng the year ending 31 March 2022 the Charity disposed of land held as a zero value asset in Its Financial Siatements. Proceeds of £525K were received and have bew reported as Profit on Sale o( FixeLI Assets in the Consolidared Statement of comprehensive income. 12. Fixed Assets- InvestrneAt propertles- Gmup arwj Chaiity Investment properties £.0￿) Fair Value.. At l April 2021 Addition5 Chan8e of tenure Movement in fair value 744.450 64 147 22.644 At 31 Marth 2012 767,305 Historic C05t 2022 £'ooo 2021 £.(￿0 Investment propertie5 measured under the hisioric cost convention 397.881 397,670 Included wthin the above is £12.862K of captialised interest12021= £12.862KI. 54 The Extracare Charitable Trust For the year ended 31 March 2022 Notes to the financial stotements Extracare 13.Fixed Asset Investments - Graupar4 thavity 2022 2021 Investment in 8roup companie5 INote 321 The parent company holds the whole of the equity share capital of the fdlowing grtyjp companie5= Country of incorporation England England En8land Nome ol subsidiary undertakint Extracare Retail knmited Extracare Nominee l Limited Extracare Nominee 2 knrnited Class of share Nature of business Ordinary Chariiy retail operation Ordinary t)ormant Ordinary Dormant All subsidiaries are registered at 7 Harry Westoft Road. 8inley 8vsiness Park, Coventry, (V3 25N. 14. Stocks Grovp 2022 Charity 2022 £'ODO 2021 2021 Goods for resalt 109 138 IS. Debtors Group 2011 Charity 2022 £'ooo 1021 £'ooo 2021 £'ooo Rent and service charges receivable Less.. provision for bad and doubtful debts Net rent arrears Value Added Tax Amount owed by sub￿diary undertakin8 Prepayrnents ènd accrued income Variable Service charge5 debior Other Debtors 2,407 15141 2,435 14951 2,407 15141 I￿93 io 209 1,585 141 2.435 1495 io 126 126 381 961 20 1.833 141 21 1,240 20 3.898 3.332 3.838 3,431 55 The Extracare Charitable Trust For the year ended 31 March 2022 Notes to the financial statements Extracare 16. Cvrrent Asset In¥estmentS- GmupaThl Char 20Z2 £￿00 2021 £'ooo At l April Invested in the period Movement in fair value 20,000 14051 At 31 March 19.595 The historical fost of the atr%)ve investments is £20M12021.. £Nill. The fair value. based on the current bid price. of the investment5 above are.. 202Z £'ooo 2021 £'ooo Fixed interest bonds VK equities Overseas equities Alternatives Cash Sterling short ¢Juraiion credit fufid 2.085 2,265 2,964 1,3C 1.191 9,784 19,595 17. credIt￿5. Amounts falling due within one year Group Z022 Charity 2022 2021 21Y21 £'ooo Loans (note 191 Trade creditor5 Amounts dve to contrartors for certified work ReTht and Charges received in advance Other taxaiion and soci315ecurity costs Corporarion Tax Deferred capital grant Inole 211 Accruals and delerred income Lease buyback liability Variable service charge creditor 776 731 1.370 523 io 1.086 776 695 1,370 523 io -1,086 599 1.752 S82 436 1,752 582 436 487 6,930 458,576 1,646 7.104 458.576 6.246 423.664 1.734 6,153 423,664 1,734 471.223 436.587 471.013 436,493 18. CreditQTS: Amounts falling duè after more than one year- 2022 2021 Loans Inote 191 Deferred income Inote 201 Deferred capital grant (note 211 121.231 83 44.097 121,902 144 44,583 165.411 166.629 56 The Extracare Charitable Trust For the year ended 31 March 2022 Notes to th'e financial statements Extracare i1￿￿￿TILl￿ 19. Loan Analy515- 6rtyJpw￿ Charity 2022 £'o( 2021 £'ooo Out within one year Bank loans 776 1,086 DUE aftet more than one year Other loans 8ank loans 57.5 64,607 57.500 65.383 122.107 122,883 Les5.' Issue Costs 18761 19811 121,231 121.902 5e¢urity Loans are secured on the propertie5 disclosed wthin housing properties (Note 1013nd invÈstment properties Imote 121. Loans are secured on both freehold and leasehold properties_ At 31 Mar¢h 2022 theye are nD unenctsmbered tompleted un*ts. Terms ol repayment and interest rates Bank and other loan5 are repayable in instalrnent5. at ntes Df interest bètween 3.25% 5.9% per annum12021.. 3.2S% and 5.9% per annvml. The final instalmeais fall to be repaid between 2026 and 2040. The Charity ha5 fixe(l interest rale5 to 8vard against fulure rate movemenlS- these are embedded within the loans and do not have sepafate fair valve. Caps have been purchased against interett risk on loarts and have been vaued * £Nil.12021-. £Ntll. 8ased on the lenderfs eadiesr repayment dale. borrowng5 are repayable asfollows= 1022 2021 £'ooo Within one year or on demand One year or more but les5 than two yeais Two year5 or more bui les5 than five yeafs Five years or more 776 1,086 40.581 80.440 1.086 776 3,258 118.849 122.883 123.969 As at 31 Marth 2022 the Charity has no undrawn loan facilities12021.. £10.OMI. 57 The Extracare Charitable Trust For the year ended 31 March 2022 Notes to the financial statements Extracare 20. Defèrrtd intome- GrtrJpartd Charity De(erred incorne will be Credited io the Consolidated Statement of Comprehensive Income.. 2022 £boo 2021 £'ooo Within one VEaf Between one and two years Between two and five years 58 74 71 70 74 141 215 2022 £'ooo 2021 £'ooo Lease prerniums receivJble, credited to the Consolidated Statement of ComkYehensi¥e Income over the period of the lease lup to twenty live years) Other Care income Care for Life income. amortlsed over life expectancyof plan holder 57 85 82 128 141 215 Deferred income relates to lease ￿Terr￿UM5 receivable £57K12021.. £85KI whith wll be released over the periods of the lease lup to twenty five years) and income relating to Care for tife £82K12021.. £127KI which wll be released to Income over the assumed life expectancy of the resident who hastaken out the plan. 21. Deferred Capital Grant Income. Gioupand 04rbty 2022 £'QDO 2021 £'ooo Balance at l April Receiveé in the year Released to incorne in the year 45.070 44,895 640 14651 14861 Balante at 31 March 44,584 45.070 2022 £'o 2021 £'o Amounts to be released within one year Amounts to be released in more than one year 487 44.097 44.583 44.584 45.070 The total of ca￿134 grants received è131 March 2022 was £48.730K12021: É48.730KI. S8 The Extracare Charitable Trust Foi the year ended 31 March 2022 Notes to the financial statements Extracare 22. Retirement benefits - GrwaTr1 Ch*Ky Social Housin8 Pènsion Sthtme ISHPSI The Charity participares in the Social Hou%n8 Pension Scheme Ilhe 5cheme'l. • multi-ernployer 5theme which prowdes benefits io some 500 non-associated em￿0Yers. The scheme is a éelined benefit Scheme in the UK. The scheme is Subl￿t ro the funding legislaiion outlined in the Pens￿￿5 Art 2C#)4 which came into force on 30 December 2CrfJ5. Thi5, together with documenis issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reportin8 Council. set out the framework for lunding defined benefit ociupational pension scheme5 in the UK. The last triennial valuation of the scheme lor funding purposes was carried out a5 at 30 September 2020. This valuation revealed defitit ttf £J,560M. A Recovery Pl3n ha5 been FHJI in place with the airn of removine this deficit by 30 Septern￿r 2028. The scheme is classified as a 'last-man standing arran8ernent'. Therefore the Charity is ￿tentIallY Itable for other participating employers, obli8atlDnS if those employers are unawe tD meet their share of the scheme deficit following withdrawal from the scheme. Participating ernployers are legally requir￿1 to mw their shafe ol ihe stheme defKit on an annuity purchase basis on withdtawal from the siherne. For financial years endin8 on or after 31 March 2019. it is posgble to obtain Su￿1c*ent informaiion to enable the Charity to account for the Stheme as a defineé benefit scheme. For accounting purposes. a valuation of the scheme is carried out with aTh effeuive date of 30 September each year. The liability figure5 from this valuation are rolled forward foi atcoltniing year*nds from the fo11owinK 31 March 10 28 February inclusive. The latest accounting valuation was carried otrt with an effective date of 30 Septemtser 2021. The lsability figures from this valuation were rolled forward for accounting year*nd5 frorn the follo￿nE 31 March 2022 to 28 February 2023 intlusive. The liabilities are compared. at the relevant èccountine date, wtth the compan*s fait Sha￿ of the $them￿s total assets to calculate the company's nei deficit or SLJrplus. Key results The estimated position at 31 March 2022 show5 a deficit of £6,760K12021.. f9.203K delicitl. The nurnber of scherne members ernployed by the Group at 31 March 2022 was 1412021.. 171. The charge to the Group forthe year wa5 £83K12021.. £52KI. Caltul*ioTr method The fi8ufes at 31 March are baseé on projectin8 forward the re5uIt5 of the last actuar4al valuation of the Fund a$ at 30 September 2020. Key assumptions 2022 2021 Discount Rate 2.79% 3.62% 3.21% 4.21% 2.15% 3.29% 2.86% 3.86% Salary Growth Allowance for commutaiion of pension for£ash at reiirement 75% of 75% of maximum maximum allowance allowance The r￿nalitY 355umptions adopted at 31 March 2022 imply the following life expectancies= Lrfe expectanry at age 65 Iyearsl Male retiring in 2022 Female retiring sn 2022 Male retiring in 2042 Female retiring in 2042 21.1 23.7 22.4 25.2 59 The Extracare Charitable Trust For the yeaT ended 31 March 2022 Notes to the finèncial statements Extracare 22. Retirement benefits Itontinuedl- Group3￿1￿￿11¥ Defined benefit cost$ re¢o£nised irt Statement of Comprehensive lftcome 2022 Current service cost Expenses Net interest expense 83 43 310 Defintd benefit ttssts re¢ognlsed in Other Comprehensl¥e Incorne 2012 'ooo Experience on plan assets lexcluding arnount5 include(l in net interest cosil- loss Experience 8ain5 3nd1055es arising on the plan liabilities loss Effects of changes in demo6raphic assumption5 undeftying the pr￿ent value of the defined benefii objigation -gain Effects of changes in financial a55umption5 undÈrlying the present value ol the defined benefit obligation- gain 14141 12.5641 817 3.496 Total attuarlal gains 1.33S Present values of defined benefit obltgation. larr ¥3l¥e of a5SÉts and benefit h"ability 2022 £'ooo 2021 £'ooo Fair value of plan assets Present value of defined benefit obligaiion 42,877 149,6371 42.083 151.2861 Defined benelit liability to be recogni5ed 16,7601 19,2031 Re¢oncS1iation of opefting anLI closin8 b￿anCeS of the defined benefft oblitatbon 2012 £'ooo Defined benefit obli8ation ot start of ppri(•d Current service cost Expenses Interest expense Contributions by members Actuarial losse5 due to scheme experiente Actuarial gain5 due to Change5 in éemographic as5uinptl￿S Actuarial gains due to chan8es in linancial assumMions Benefits paid and expenses 51.286 83 43 1.091 Jod 2,564 18171 13,4961 11,2211 Defined benefil obligation at end af period 49.637 60 The Extracare Charitable Trust Fof the year ended 31 March 2022 Notes to the financial statements Extracare 22. Retirement benefits Icontinuedl- Gr￿ affid Chaiitv Re¢on¢iliaUon of openin8 and cloyne balan￿$ of the f•"r value of plan assets 2022 £'ODO Fair value of plan assets at start ol period Interest income Experience on plan assets lexdudinB amounts included in interest incornÈl- loss Employer contributions Contribution5 by rnernber5 8enefils paid anLI expenses 42.083 907 14141 1.418 104 11.2211 Fair Value of plan assets at end of period 42.877 The actual return on the plan assets lincluding any chan£es in share of assets) over the period from 31 March 2021 to 31 Marth 2022 was £493X. The analysis of the scheme assets at the reporting date were as follows-. 20Z2 £boo 2021 £￿00 Global Eoubty Absolute RÈturn Distressed Opportvnities Credit Relative Value Alternative Risk Prernia Fund ol Heilge Funds Emerging Markets Debt Risk Sharing Insuran£e-￿nked Securiiies Property Infraslrurture PTlV4te Oebt Opportunistic Illiquid credit Hi8h Yield Opportunistic Credit Cash Corporare Bond Fund iquid credit . Long Lease Property Secured Income Liability Driven Inve5trnent Current hedging Net Current A55ets 8.228 1.720 1.534 1.425 1.414 6,707 2.323 1.215 1,324 1.585 1.248 1.412 1.000 1.15B 3.054 1,099 1.441 369 153 146 2.860 1.699 1.532 I,oii 874 2,806 1,004 1,070 1,260 I,IS4 2,486 502 825 1,750 10.695 1.103 1,598 11,964 11681 119 2S6 Total assets 42.877 42.083 61 The EKtraCare Charitable Trust For the year ended 31 March 2022 Notes to the financial statements Extracare 22. Retirement benefits Icontinued)- GrLwandOwKY Anztysis of the 5ensitivityio the principal assumptions of the present value of the defined benefrt obliqation Change i Change in assumption É'ooo Discount rate Rate of Inflation ICPII Rate of salary growth Incre85e of 0.1% p. Increase of 0.1% p. Increase of 0.1% p.a. 874 14761 The 5ensitivitie5 shown above are approximate_ Each sensitivity ton5ider5 ofte chèn8e in isolation. The inflation sensitivity includes the irnpact of changes to the a55UrnPtions lor revaluation. pension increases and 5alarygrowth where appropriate. 23. Other provislons- Groyp and Chawity 2022 2021 £'ooo The Pension5 Trust'5 Growth Plan 42 SHPS obligation è131 March 42 Thè Pensions Trust's Gr¢>wth Plan The Charity participates in the scherne. a mulri-employer scheme ¥4hich provides benefits to some 638 non-associated participating employers. The scheme is a defined benefit scheme in the UK. rt is not P055ible for the Charity to obtain svfficient information to enable it ro account lor the scheme as a defineé benefit scheme. Therefore Il account5 for the 5theme as a defined contribution scheme. The xheme 15 subject ro rhe funding lezislation outlined in thè pens￿n$ Att 2CQ4 which came into force on 30 Oecember 2¢J)S. This. together wth docurnents issued by the Pensions Regulator and Technical Attuarial Standards issued by the Financial Reportin8 Council, Set out the framework for fundin8 definEd b￿e11t occupationol pension schemes in the UK. The xherne 15 tlassified as a 'last-man standin8 arr8nKement'. Therefore the Charity is potèntially liable for other participating employer5. obliKations if those ernpltsyers are vnable to meet Iheir share of thÈ scheme deficit following withdrawal from the scheme. Participating employers are leRally required to meet their share of the scherne deficit on an annuity purthase basis on withdrawal from the scheme. A full actuarial valuation foi the scheme was carried out at 30 September 2020. This valuation showed a55ets of £800.3M. liabilities of £831.IM and a deficit of £31.6M. To eliminate this funding shortfall. rhe Trusiee has asked the participating employers io pav adéitiorsal contributions to the scheme as follows.. Deficit contr1butions £3.3M per annurn From l April 2022 to 31 January 2025 Ipayable rnonthlvl.. Note that the scheme's pre¥ious valuation w3s tarried with an Èffettive date of 30 September 2017. This valuation showed assets of £794.9M, liabilitie5 of £926.4M and o deficit 01 £131.5M. To eliminate this fundin8 shortfall. the Trustee has asked the participating employers to pay additional contribvfion5 to the scherne as follow5.. £11.2M per annum From l April 2019 to 30 Sepiember 2025 (payable monthly and increasine by 3.0% each year on 1st April).. The recovery plan coninbutions are allocated to each partictpatifig employer in line with their e5timaied 5h3Ye of Serie5 J and Series 2.xheme liabilitie5. Where the scheme is in delicit and the Charity has agreed to a deficit lunding arrangement it recoeni5es a liability for this obligation. The amount recognised is the nei present value of ihe deh.cit reduction conrributions payable under the a8reement that relates ro the deficit. The present value is calculate¢J using the di5(ount fare ¢Jetailed in ihese disclosures. The unwinding of the discount rate is recognised as a finance cost. 62 The Extracare Charitable Trust For the year ended 31 March 2022 Notes to the financial statements Extracare Ohwiuble1rt4 23. Other prov•sion5 Icontinu*dl- GrrAffj and O*Ky Present values of provision 2022 £￿00 2021 £'ooo Present value of pro￿$1( 42 Reconciliation of opening and ¢losin< provisions 2022 £'ooo zozi £Tr)o Provision at start of period Unwinding ol the discount facior (interest expense) Deficit contribution paid Rerneasurements- impacr of any Ihange in a55UrnPtions Remeasurements -arnendments tothe Contribution schedule 42 iioi 1231 Provision at end of period 42 Income and expenditure impart 202Z £,(￿0 2021 £'ooo Interest expense Remeasurements- impact of any chan8e in assumptions Remeasuremenrs- amendments to the contribution schedule 1231 Costs recognised in income and expenditure account 1231 Assumptions Jl-Mar-Z2 31-Mar-Zl 31-Mar-20 % per annurn % per afinvm % per annum Rate ol discount 2.35 0.66 2.53 The discount rates shown above are the equivalent single dtscouTrt rates which. when vsed to drxount the future re£overy plan contributlOn5 due. would give the same results a5 vyng a full AA corporaie bond yield cur¥e to discount the same recovery plan contributions. 24. Oefined contribution pension scheme- Groky•r* Ch• The Charity a150 Utilise5 the Pension Trust Flewble Retirement Plan IFRPI. The FRP is a defined contribution scherne. The esrimated employer's conrributions pa¥a￿e under all pension xherne5 for the year enLled 31 Marth 2023 15 £733K 12022-. £748KI. Pension tosts within cre(litors for the year endin8 31 March 2022 are £Nil12021.. £276KI. 63 The Extracare Charitable Trust For the year ended 31st March 2022 Notes to the financial statement5 Extracare 25. Restricted resèrves- Groupand Char*y The tncom*n8 funds of the Charity include rettritted lunds t¢xnpnsing the fdltswinB balances of donations and 8rants held on trust for sperific purposes. At l Aprrl 2020 At 31 Marth 2021 At 31 March 2012 É'ooo Inctsme E¥penditure £￿00 Income Expenditure £'ooo Fixed assets Hagley Road. Birmingham Humber Court, Coventrv lark Hill Village, Nottin8ham New OsctTrtt Village, Birmingham Lovat Fields Village, Milton Keynes Shenley Wood Village. Milton Keyne5 Pannel Croft Village. 8i¥mingham St 05walds Village. Gloucester Rosewood Court, Wellincborough Sunley Court, Kettefing Yales Court. Evesham 205 2.861 1.191 934 167 524 131 1321 1131 iioi 202 2.829 1.178 914 166 518 199 2.797 1,165 913 164 512 1131 232 224 iio 229 221 109 226 218 108 6.450 1721 6.378 1741 6,304 Special projerts and other funds Other mi5tellaneou5 funds Other scheme restricted funds 19 137 75 20 {ioi 84 50 134 36 14 156 95 1271 224 57 Iiiii 170 Total funds 6.606 95 6.602 57 11851 6.474 Fixed assets These lunds resulted from specrfic appea15 to furtd the devdopment of r￿ed a55et5. Expenditure represents depretiation on the assets. Special projects and other funds Most of these fufids have been 8iven to finance specific projects to improve the quality of life for older people. 64 The Extracare Charitable Trust For the year ended 31 March 2022 Notes to the financial statements Extracare 26. Capital commitments- Groupandchatity There is no capital expenditure that has been contracted for has not been provitled for these financial 5tatements12021.. ENill. There is no capital expendilure that has been authorised by the Board but has n¢X yet been contracted for12021. £Nill. 27. Financial cornmitmentS- Grixjpand Ch¥ily The fulure minimum lease payments of non￿nC￿lable leases are as set out below.. 2022 Land & Buildihgs 2021 Land & uildings £'ooo Other £￿00 Othe £'ooo Contracis expiring Within one year Between one and 5 years Over five years 1.070 2.387 3.847 32 39 1.030 2.492 3,695 28 71 7.304 71 7.217 99 28. Taxation The Trvst is r￿IStered as a charity and its charitable artiwiies are not liable to Coryx)ration Tax. The subsidiary of the TTU5t. Extracare Retail Limited. 15 5ubjett to Corporation Tax. In thi5 financial year no tax liability has been incurred. The charge incurred in the previous year relates to shop lease termination cost5. expensed in year. which for tax purpose are ronsidered of a capital nature. Suih costs are noi a re8ylar Dccurrence and none were reported in 2021122. 29. Contlngent asseis The Charity will recLYves pledBes to fund new wllage de¥doprnents. These pledBes are contingent on various key events occurring durin8 the village development phases. Funds arè reteived in stages. Hence both received and receivable funds are recognised as contingent a55ets until such tirne that the condititsns are rnet. In 2021 conditions were met an(1 final sta8e payments were reteived. therefNe there were no longer any contingent assets to report. No new pled6es have been received in theyear endin8 31 Marrh 2022. 30. Contingent liabilities and other commitments At 31 March 2022, there are no outstanding claims against the Group or Charity. 65 The Extracare Charitable Trust For the year ended 31 March 2022 Notes to the financial statements Extracare ¢tswrffablETnJsl 31. Related party transartions The Group has iaken advanta8e of the exemption conferred by para8raph 33_IA of FRS102. Related Party Disclosures. from the requirement to disclose transactions with its vtholly o¥med subsidiary IExlraCafe Retail bmitedl. The ag8regate total of these costs recharged is £3.021K12021.. £1,542KI. The Charity has not entereil into any iransa(tions or other arrangement ￿th any related parties. 32. Subsidiary undertakings- Ch*ity As shown in note 12, the Charity ha5 three wholly owned subsidiaries which are incorpoTated in the United Kingdom.. Exrracare Retail ￿rnIted Extracare Nominee J Lirnited Extratare Nominee 2 Limited Extracare Norninee l knmited and Extracare Nominee 2 Limiied did not trade durin8 the year, or in the prior year. All companies have entered into Gift Aid arrangements to donate their taxable profits io The Extracare Charitable Trust. A 5umm3ry of the results of Extracarè Retail timiied is shown below. Audited accounts will be filed with the registrar tsf Companies in line with requirements. Within the Group accounts. the attiwty from Extiacare Retail Limiied is shown wtihin Other Non Social Housin8 Actiwries (note 31. 2022 f'ooo 2021 £'ooo Turnover Cost of sales Staff costs Other Costs Other operating income 2,892 12711 11,8111 11.3221 872 2,331 11921 11,2601 11,3211 403 Net profil 360 139 Taxation Retained in subsidiary 360 1391 Cvrrent asseis Current liabilities 534 12131 398 14371 Retained in subsidiary 3ZI 1391 The Charity recwved Tho Gift Aid from retail actI￿tY in theyear ended 31 March 202212021.. £246KI. A Gift Aid distribvtion of £321K is planned for payment in the followng yearlrorn the Retail subsidiary retained prolits. 66 The Extracare Charitable Trust For the year ended 31 March 2022 Notes to the financial statements Extracare 33. Reconciliation of operatlng surplus to net cash inflow trom operating actkvitles 2022 £￿00 2021 £'ooo Surplus for the year 15.913 24.032 Interest payable Interest receivable Profit from sale of fixed assets 5.560 4,560 15251 Operating supplus for the year 20.947 28.586 Adju51rnents for non.cash iterns= Change in fair valve of investrnent properties hange in fair value of investments Release of Buyback liability Depreciation of t3ngi&e fixed a55ets Amortisation of intangible assets Amortisation of deferred capital grants Amort15ation of finance costs Defined benefit penyon schemes 122.6441 405 13,9061 3,550 58 14861 105 11,3271 131.7291 13.1291 3,582 78 14651 104 11,3101 Operatlng cash flows before movements in working capital 13.1981 14.2831 Movements in workin¢ twtal Decrea5elllncrea5el in stock IlntreasÈllDecreasÈ in rental onttother de￿Or5 Increase/lDecreasel in trade and other creditors 29 15661 378 46 15281 Net cash used in operating artr¥ities 13A571 14.7711 At l April 20ZI Cash fknws New ffinahce leases £'ooo Other non cash £'ooo At 31 March 2022 £'ooo Anafy5is of changes rn net debt Cash and cash equivalents Investments 10,686 19.595 20. 1405 Bank loans due in lessthan I year Bank loans due in morethan I year Other loans Lease buyback liability 11.0861 164.41021 15?.5th)1 1423.6641 1.086 17761 671 17761 163,7311 157,5001 1458,5751 32.519 171.3361 3.906 Total 1542WI 60,487 171,3361 3,396 1550.3011 67 The Extracare Charitable Trust For the year ended 31 March 2022 Notes to the financial stalements E)(traCare 34. Nurnber of homes in management and development 20Z2 Number 2021 Number Social houslng units Owned by the Charitv Managed on behalf of other orEanisations 74S 288 742 288 Non-social houslng Leased or part leaseé investment properties 2.607 2,611 Other Social housing propertie5 managed under a partnership arT3n8emefit Non-social housin8 properties managed under a partneT5hip arrangement 431 167 430 167 4.238 4,238 35. Financial instruments The carryinB value ol the GrDUP and Charivs financial instruments at 31 March weiÈ.' Grovp Charity 2022 £'o 2012 20?1 Ywjo 2011 £'ooo Financial a55etS Debt in5trurnen15 rneasured at amortised cost.- Trade and other debtors Cash 2.744 10.686 2.417 3.804 3.050 10,684 2.756 3.788 13.430 6.221 13,734 6,544 Debt instruments measured ai fair Wdlue.. Current Assets investments 19.595 19.595 19.595 19.595 Measured at amortised £05t Trade and other creditors Loan5 514.476 122.883 479.577 123.969 514.266 122.883 479.483 123.969 637,359 603.546 637.149 6r13.452 68