OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-03-31-accounts

COMPANY NO: 1089026

CHARITY NO: 502224 RSH NO: H3158

St Anne’s Community Services Annual Report and Financial Statements For the Year Ended 31 March 2022

ST ANNE’S COMMUNITY SERVICES

CONTENTS

Section Page
Company Information 3
Chair’s Welcome 4
Chief Executive’s Welcome 5
Report of the Trustees (incorporating the strategic report) 6
Independent Auditors Report 24
Statement of Comprehensive Income 27
Statement of Changes in Reserves 28
Cash Flow Statement 29
Statement of Financial Position 30
Notes to the Financial Statements 31

2

ST ANNE’S COMMUNITY SERVICES

COMPANY INFORMATION

The Trustees, who are Directors of St Anne’s Community Services, have pleasure in presenting their annual report and financial statements for the year ended 31 March 2022. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with our governing document, the Charities Act 2011, the Companies Act 2006 and the Statement of Recommended Practice (SORP) 2018 for registered social housing providers preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland.

St Anne’s Community Services is a company limited by guarantee. It is registered with the Charity Commission and is also a registered housing provider regulated by the Regulator of Social Housing (RSH). Details of the Trustees and other corporate information are set out below:

Board of Trustees who served during the year

A Sully (appointed Chair 24 November
2021)
B Machin (Vice Chair)
I McIntosh (resigned 26 January 2022)
P Brown (resigned 31 July 22)
G Dalton
P Garnett (resigned 31 July 22)
G Osborne (resigned 24 November 2021)
J Riley (resigned 01 August 22)
M Turnbull
T Watters
I Currell (resigned 31 July 22)
O Laird
A Leech
L Hancock (appointed 01 August 22)
J Adams (appointed 01 August 22)
A Topping (appointed 26 October 2022)
C Ashton (appointed 26 October 2022)
Company Registered Number 1089026
Charity Commission Number 502224
External Auditors Mazars LLP
5th Floor, 3 Wellington Place,
Leeds, LS1 4AP
Bankers Unity Trust Bank plc
Four Brindley Place,
Birmingham, B1 2JB
Solicitors Bevan Brittan LLP
7thFloor, Toronto Square, Toronto Street,
Leeds, LS1 2HJ
DAC Beachcroft LLP
23 Park Square South,
Leeds, LS1 2ND
Pensions and Investment Advisors Mercer Limited
1 Whitehall Quay, Whitehall Road,
Leeds, LS1 4HR
Purple Wealth Management LLP
50 Burley Hill Business Centre, Burley Road,
Leeds, LS4 2PU

3

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

CHAIR’S WELCOME

2021/22 has been my first year as Chair of St Anne’s Community Services, as I take over from Ian McIntosh, the previous Chair, I would like to thank him for his service to St Anne’s and look forward to building on from the positive work that is already happening at St Anne’s.

2021/22 is the first year of our new five-year strategy, underpinning the strategy are our PROUD values and our purpose of making a difference every day by providing the highest quality, person centred care and support. Whilst this forms part of our new strategy this has been at the core of St Anne’s philosophy since St Anne’s began in 1971 and will therefore continue to be so.

We are all very aware that this year has been another year of change and challenge. We have continued to face unprecedented challenges during the year brought about by the Covid-19 pandemic, but in spite of these challenges we have continued to see our front-line staff carry out their roles with an amazing amount of dedication and resilience. On behalf of the Board and St Anne’s wider stakeholders I would therefore particularly like to thank all our staff for their continued dedication and commitment to our clients in another exceptionally challenging year.

Our clients are at the centre of everything we do, and it is pleasing to report that our Care Quality Commission (CQC) ratings have remained consistently high over the last year, with the vast majority of our CQC rated services scoring Good or Outstanding, ahead of the national sector averages.

Our people are our key to everything we do at St Anne’s. As such we are committed to the continuous development of our staff and investing in their training and support. In recognition of the challenges our people face working in the sector we have committed to paying all of our staff at least the national Real Living Wage, with the aspiration to continue to pay this in future years.

St Anne’s can only continue to deliver its charitable purpose into the future if it is financially sustainable. Our financial performance for 2021/22, described in the following pages, reflects an improvement from the previous year, moving us from a deficit to a surplus position this year, despite the challenges within the social care sector and the effect of the Covid-19 pandemic, this therefore puts us in a more sustainable position for the future. Nevertheless, we should never be complacent as the sector is ever changing and we need to continually evolve how we can best continue to support our clients, reinvest in our current services and develop new services to meet the changing needs of the most vulnerable people in our society.

During 2021/22 St Anne’s Senior Management Team has remained relatively stable, with only a couple of changes in personnel, as a consequence this has allowed us to move our strategy forward and deliver on a number of larger projects that will help to shape St Anne’s in the years to come.

Our Board of Trustees has also remained relatively stable in the year, with only a couple of resignations, however there are plans to further strengthen the Board of Trustees and Trustee representation on our committees in 2022/23. The Trustee role carries significant responsibility and so I am grateful to all the Trustees for assuming that responsibility and for their commitment to St Anne’s during the past year.

To all of those who have supported us this year, the Trustees offer their thanks. The Board is looking forward to 2022/23 with cautious optimism, knowing as an organisation we will be able to face any challenges headlong and continue to provide the highest possible support to all of our clients.

Anthea Sully, Chair of Board of Trustees

4

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

CHIEF EXECUTIVE’S WELCOME

The year has continued to be a challenging one for St Anne’s, most notably with the continued impact of Covid-19; therefore, continuing to put our clients at the centre of what we do is more important than ever, and we have only been able to do this through the continued dedication and resilience of our fantastic colleagues.

I would like to thank all of our staff for their continued commitment and support to our clients throughout the year - we wouldn’t be able to continue to do the great work we do at St Anne’s without you.

2021/22 has been the first year of our new five-year strategy – “A Life Without Limits”. During the year we have done a lot of the groundwork for the strategy particularly looking at how we invest in our properties for the benefit of our clients, further developing our approach to quality, focusing on social value and securing funding to allow further growth in the services we provide. Despite the challenges of Covid-19 this has therefore been an exciting time for St Anne’s and one to build from in 2022/23.

St Anne’s continues to develop as an organisation and over the past year we have continued to maintain high quality standards with the vast majority of our services being rated good or outstanding from the CQC and again this can only be achieved through the skill, dedication, and commitment of our staff.

Financially we are in a stronger position than we were last year, having moved from a deficit to a small surplus, before the pension valuation, in the year, and a much larger surplus after the pension valuation. Whilst some of the factors effecting last year’s financial performance were out of our control, the receding impact of Covid-19 towards the back end of the year has allowed a recovery in our financial performance and puts us on a good footing for continued financial sustainability.

Whilst our overall financial position is an improved one the challenges of funding within the social care sector remain which is further exacerbated by the rise in the cost of living which will put our costs under an extra amount of pressure in 2022/23.

Despite the financial challenges we face, we believe it is important to recognise the importance of our staff and both in 2021/22 and also planned for 2022/23 we have been able to announce a salary increase that puts all of our staff at or above the national Real Living Wage. Given funding challenges in the sector it has been hard to maintain this position, however given recruitment challenges in the sector are equal to that of the funding challenge we hope that this helps to attract new people to St Anne’s and retain our existing staff so that we can continue to deliver great outcomes for our clients who are some of the most vulnerable people in society.

I would also like to take this opportunity to thank the Trustees for their diligence and the support they have given to St Anne’s over the past year. Their voluntary roles carry significant responsibility and they have continued to give a considerable amount of support and devotion to the organisation throughout this challenging year.

As we look forward to 2022/23, we are optimistic that the year will be a positive one as we return to some normality after the Covid-19 pandemic and build on from everything we have achieved in 2021/22.

Azra Kirkby

Azra Kirkby (Nov 4, 2022 09:40 GMT)

Azra Kirkby, Chief Executive Officer

5

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

REPORT OF THE TRUSTEES (incorporating the strategic report)

The Trustees, who are the Directors for the purpose of company law, present their report along with the financial statements of St Anne’s Community Services for the year ended 31 March 2022.

Introduction: St Anne's - Making a difference every day

St Anne's was founded 51 years ago, in 1971, as a daytime shelter for homeless men in Leeds. From these small beginnings we have gradually expanded over the years to become the organisation we are today, with around 1,300 employees supporting people across the North of England.

Our very first service was shaped around people's needs and wishes and we have maintained this ethos, with the people we support at the centre of all our work, throughout all the services we provide.

We provide housing and accommodation-based support in partnership with other housing providers and deliver a range of community-based services across the North of England. We are proud to support people with learning disabilities, mental health, substance misuse and homelessness issues and to help them achieve their aspirations.

Much of our work is undertaken in partnership with local authority adult social care departments, clinical commissioning groups and community safety partnerships. We also work extensively with people whose support is funded via a direct payment or an individual service fund.

Our current services include:

This range and diversity of provision means that if people's needs and goals change, they can continue to be supported by St Anne's.

We work predominantly in the following areas:

North-East: Durham, Gateshead, Middlesbrough, Newcastle upon Tyne, North Tyneside, South Tyneside, and Sunderland.

Yorkshire & the Humber: Bradford, Calderdale, City of York, East Riding, Kirklees, Leeds, North Yorkshire, Sheffield, Wakefield, and Hull.

Continuing to focus on the needs of the people we support, we:

6

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Our Vision

A life without limits for the people we support.

Our Purpose

To make a difference every day. Providing high quality care and support to enable people to lead independent and fulfilled lives.

Making a difference every day is a philosophy that is strongly interwoven into the cultural fabric of St Anne’s. It is part of who we are. We do this by providing the highest quality, person centred care and support.

Our Values

We are PROUD to make a difference every day.

Person Centred : We place people at the centre of everything we do and think about how our decisions affect them. We promote choice and we treat people as individuals.

Respectful : We respect each other’s opinions and beliefs and treat everyone with dignity. We ensure an inclusive environment, and we celebrate diversity.

Open : We communicate in an open, honest, and transparent way and we share information with each other. We act with integrity, and we do what we say we will.

Understanding : We are understanding of the needs of others, and we work in a caring and compassionate way. We are kind and we support each other.

Dedicated : We are dedicated to improving the lives of the people we support every day and delivering quality services.

Our strategic commitments

Our three strategic commitments through to 2026, and the pillars supporting each commitment, are as follows:

Strategic Commitment 1: Our commitment to our people, communities, and the environment

Pillar 1: Enabling our Clients – To ensure that the people we support are at the centre of everything we do, creating strong, individual pathways for people to live their best life.

Pillar 2: Empowering our People – We are a people organisation – people supporting people, and we want to be recognised as a greater place to work, an ‘employer of choice’ to our employees and to people outside of our organisation.

Pillar 3: Delivering Social Value to our Communities – To increase, measure and evidence our social impact for people, local communities, and the environment.

Strategic Commitment 2: Our commitment to excellence and innovation in service delivery

Pillar 4: ‘Good to Great’ Quality and Continuous Improvement – To be an exemplar of high-quality and best practice within the social care sector – from ‘good to great’ – delivering great services and achieving great outcomes.

Pillar 5: Consolidation, Innovation & Expansion – To consolidate our existing range of services, develop innovative and creative services that support pathways for people and expand our offer to new localities.

7

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Pillar 6: An Integrated Housing Solution – To develop and invest in our housing and assistive technology offer. Offering a truly integrated approach that will enable greater access to high quality, affordable homes that meet evolving individual needs.

Strategic Commitment 3: Our commitment to business sustainability, value for money and digital transformation

Pillar 7: Digital Transformation – To make systems and processes more efficient and to use technology to build greater connectivity, quality, and capacity within the organisation.

Pillar 8: Organisational Resources and Sustainability – To ensure that everything we do considers and represents value for money, and we operate in a way which is financially sustainable in both the short and long term.

Our performance and achievements

Throughout 2021/22 we continued our work to make a difference, providing high quality care and support to enable people to lead independent and fulfilled lives, which was made particularly challenging this year due to the continuing Covid-19 pandemic. Some examples of our achievements this year include:

Our clients:

Our staff:

Our services:

Our systems and processes:

8

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Corporate Social Responsibility

Our Commitment to Corporate Social Responsibility (CSR) continues across the work we do with clients and beyond with partners of all size across the local communities in which we are based. Covid-19 has presented us with an opportunity to do things differently which has meant that we have had to find different ways of working and delivering CSR in ways that are still meaningful and add value.

Strengthening our Governance

Last year saw the redevelopment of two key governance documents; The Governance Framework and the Risk Management Framework, this year our aim was to further refine them ensuring they continue to provide the framework, structure whilst detailing the interrelated relationships and factors as well as touching on other elements that influence the organisation. Importantly both also set out the respective roles and responsibilities of the management structure, and reference to policy, systems and processes used across the organisation, and importantly identifying points of accountability and escalation, risks and risk management.

St Anne's Community Services continues to maintain the Charity Governance Code for Large Charities and continues to promote good practice and good governance through its seven principles. Furthermore, we have adopted the 2020 Code of Governance produced as discussed in more detail below.

We published again this year our Modern Slavery Statement, which explains our continued commitment and approach to Modern Slavery across the following areas:

  1. Organisation structure and supply chains.

  2. Policies in relation to slavery and human trafficking.

  3. Due diligence processes that we have in place.

  4. Key performance indicators that measure the steps we are taking.

  5. Training on modern slavery and trafficking.

Assuring the Quality of our Assets

St Anne's is obliged to ensure compliance with the regulations of the Regulator of Social Housing and the Health and Safety at Work Act 1974.

During the year the organisation commissioned a full independent stock condition survey together with fire risk assessments for all properties owned by St. Anne’s or for those which St. Anne’s has a repair responsibility. The Board is committed to investing in our properties, to make better homes for people, and the findings of the survey and assessments will help to determine future spend and to develop an Asset Management Strategy. This will allow us to continue to demonstrate our commitment to meeting the Decent Homes Standard. Where we have properties that are no longer fit for purpose, we have commenced a reprovision programme. During 22/23 all properties will go through a full property option appraisal.

St Anne's is committed to continued improvement and, as a result, is carrying out a full review of the repairs and maintenance operation to ensure it continues to deliver high-quality, value for money service.

Our Finances

Our income for the year 2021/22 was £43.6m, down on the previous year by £1.1m (2%), whilst this is a drop in income there have been no major contract losses in the year from the local authorities we work with, who provide the majority of our income, and instead this is due to some limitations on certain services due to Covid-19. However, our operating costs have reduced by more than the same proportion; in fact they have dropped by £2.0m (4%) from the previous year.

This year we have made a small surplus of £128k before the actuarial gain/loss on our pension schemes, this is compared to a deficit of £672k last year, hence there has been some really positive progress in the year.

9

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

In the year we have also seen a large actuarial gain from the pension scheme of £19.6m which has resulted in a comprehensive surplus of £19.7m compared to the £5.8m comprehensive deficit last year, hence a £25.5m improvement in our financial performance.

The result of the movement in the valuation on our pensions scheme, with the West Yorkshire Pension Fund (“WYPF”), has led to an overall pension liability of £0.9m on our balance sheet, this compares to £20.4m last year, hence is a very significant reduction in the liability. In the year we have removed the vast majority of the active membership from the scheme, moving members from a defined benefit scheme to a defined contribution scheme. However, the biggest factor in the change in the valuation is an economic one, whilst generally the immediate economic outlook is not a positive one, there has been an improvement since the height of Covid-19 when the previous pension scheme valuation took place.

In the year our reserves are therefore back into a positive position, and consequently also a net assets position, of £14.7m compared to a £5.0m negative reserves and net liabilities position last year.

Additionally, our cash position as an organisation remains strong with £10.9m in cash and investments, albeit that is a £4.9m drop from the previous year mostly due to on-going investments in the organisation, particularly in our properties.

Looking ahead to 2022/23, which is the second year of our 5-year strategy, we hope to continue to support our clients in the best way possible and particularly invest in the environments in which they are living, as well as looking at opportunities to grow and support more clients. Underpinning all of that will be ensuring that we do so in a financially sustainable way.

Comprehensive income for the five years ended 31 March 2022

2022 2021 2020 2019 2018
£'000 £'000 £'000 £'000 £'000
Turnover 43,641 44,685 42,877 44,833 44,153
Operating costs (43,138) (45,097) (43,311) (45,214) (43,762)
Pension adjustments* (337) (532) 491 793 816
Controllable Surplus/(Deficit) for the
year		 166 (896) **57 ** 412 **1,207 **

*Pension service costs are included within operating costs and so are excluded here to give an underlying controllable surplus/(deficit) position.

10

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Statement of financial position for the five years ended 31 March 2022

2022 2021 2020 2019 2018
£'000 £'000 £'000 £'000 £'00
Tangible fixed assets 15,539 13,210
13,452
13,619
13,877
Fixed asset investments 2 2
1,509		 1,510 1,510
Net current assets 10,037 12,844
12,441
11,856		 11,209
Total assets, less current liabilities 25,578 **26,056 ** **27,402 ** **26,985 ** **26,596 **
Creditors due after more than 1 year 10,008 10,693 11,151 12,310 12,377
Net Pension liability 874 20,367 15,424 6,679 8,397
Total net assets/(liabilities) 14,696 (5,004) 828 7,996 5,822
Reserves: General Charity Fund 127 161 127 161 162
Investment revaluation - - 8 8 8
Revenue reserves 15,444 15,202 16,117 14,506 14,049
FRS 102 pension liability (874) (20,367) (15,424) (6,679) (8,397)
Total Reserves 14,696 (5,004) **828 ** **7,996 ** 5,822

Value for Money

Value for Money is a key focus for the Board and as an organisation we are continuously striving to improve the way we work so that we can provide better services for the people we support. Value for Money is central to this and underpins our strategy. We take a balanced approach to Value for Money that considers performance and investment through three lenses:

Our assets provide the foundation for our success. These include our hard working staff, and our homes and infrastructure, which enable us to efficiently provide services and run the business. Improved asset utilisation and management of voids are key projects that have continued from the previous financial year.

11

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

By ensuring we manage our assets effectively and efficiently, we provide high quality services, which means we serve our clients well, remain competitive and have the financial strength and resilience to mitigate financial risks now and in the foreseeable future.

Value for Money Summary

Our Metrics Housing
Median
20/21		 Actual
21/22		 22/23
Target
Rent arrears 5.1% 4.8% 1.8%
Voids 1.0% 3.7% 4.6%

Rent arrears are above the housing median and this is driven primarily by housing benefit arrears. We receive housing benefit directly for the majority of our social housing clients and this is paid 4 weekly in arrears.

Void rates are generally higher for supported housing than for general needs housing because of the complexities of matching clients needs to suitable properties. Again, this figure is elevated due to the voids at our hostel service.

We have not included tenant satisfaction this year as for the last two years we have been unable to complete the survey due to Covid-19. This is planned for 22/23 but a target has not been set in the absence of recent surveys.

Regulator
Metrics		 Actual
20/21		 Peer
**Median **		 Housing
**Median **		 Target
21/22		 Actual
21/22		 22/23
Target
Reinvestment 8.7% 5.0% 5.7% 7.5% 13.5% 8.7%
New Supply 0.0% 1.7% 1.2% 0.0% 0.0% 0.0%
Gearing N/A 26.6% 44.8% N/A N/A TBC
EBITDA MRI
Interest Cover
%		 N/A 339.7% 186% N/A N/A 150%
Headline
Social
Housing Cost		 £28,971 £5,590 £3,680 £22,000 £27,304 £27,000
Operating
margin social
housing %		 4.0% 16.3% 26.9% 9.5% 6.9% 6.9%
Operating
margin overall
%		 (1.0%) 12.9% 25.0% (1.0%) 1.2% 0.2%
ROCE% (1.7%) 3.7% 3.6% >0% 2.0% >2.0%

12

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Investment in our properties has increased in the year, which builds on earlier years of investment and a drive to improve the standards of housing to meet and exceed the decent homes standard.

There was no development of new supply in the year and development of new housing stock does not form part of strategy for 2022/23.

We do not have finance in place and therefore gearing and interest cover are not applicable, however we may look at this in the year 2022/23 so the target for cover has been agreed but the gearing target has not yet been set.

Our headline social housing cost is significantly higher than the median, the peer group which was based on providers who also offer supported housing and other care provisions shows a higher figure, however the nature of our services and the requirement to meet our clients’ specific individual needs means our spend is much higher than both the median and the peer group.

Again, our operating margin is closer to our peer group of supported housing providers, rather than the housing median but is an area we are looking to improve. Our overall operating margin is now positive, which reflects some of the improvements over the past few years.

The return on capital employed was targeted to be a positive value for the year and that has been achieved, it is still lower than the peer and housing median, which we expect to improve incrementally following the increased investment in 2021/22 and into 2022/23.

Reserves policy

In the year, the Senior Management Team (SMT) and Board of Trustees have reviewed the reserves policy to both ensure this meets the organisation’s long-term objectives, and that the current level of reserves is sufficient for any day-to-day variation in operational need.

The Trustees have considered financial risks, sources of income and variability of costs. As a consequence, the target level of free reserves has remained at £13.7m, with the objective of retaining liquid cash at over £7.0m, representing approximately two months of expenditure.

As shown in the table below, free reserves, which are defined as unrestricted reserves, excluding functional assets and the long-term pension liability were £10.3m at 31 March 2022.

31 March 2022
£’000		 31 March 2021
£’000
Unrestricted reserves 14,696 (5,004)
Exclude functional assets 15,539 13,210
Exclude deferred grants relating to
functional assets		 (10,254) (10,938)
Exclude pension liability (874) (20,367)
Free reserves 10,285 13,091

13

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

The pension deficit of £0.9m (2021: £20.4m) is a longer-term liability that will fluctuate over time, both up and down, and therefore is not taken into account in calculating free reserves. However, this is a liability that needs to be considered when assessing the sufficiency of free reserves. The Trustees are of the view that, based on the current valuation, the free reserves are sufficient for the next twelve months, when a further assessment will be made.

Investment policy and performance

Our investment policy is designed to support the reserves policy. The organisation has adopted a prudent investment policy to balance potential returns with appropriate levels of risk. The key objectives of our investment policy are to:

The Pensions and Investments Committee will continue to monitor the achievement of these objectives and to make any investment recommendations it deems appropriate to the Board.

At 31 March 2022 fixed asset investments were valued at £2k (2021: £2k), albeit we have a number of current asset investments.

Subsidiary

St Anne’s Community Services has only one subsidiary: St Anne’s Trading Limited, a company registered in England and Wales. St Anne’s Community Services wholly owns all the issued share capital of St Anne’s Trading Limited.

Principal risks and uncertainties

The Board of Trustees has responsibility for ensuring that there is effective risk management, and that internal control systems and processes are in place to manage the organisation’s strategic risks and to support the achievement of its strategic objectives.

This responsibility continues to be exercised through an annual review of the effectiveness of our risk management framework including the following:

Risk management design:

Through our risk management framework, we continue to demonstrate our ability to identify and manage risks across the organisation, from Board to service delivery level. It supports the business, and both underpins and promotes confidence in growth and development.

Key points:

14

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Our approach is consistent and aims for continuous improvement:

We therefore believe we have a robust and well-developed risk management process, with departmental risk registers feeding into a corporate risk register that identifies and assesses the likelihood and impact of potential risks as well as setting out how the organisation plans to mitigate against those risks. These are organic documents which are reviewed fortnightly by SMT, all risks are allocated to a Committee and those Committees scrutinise their allocated risks before they are fed into the Corporate Risk Register which then forms part of the compliance documents for the Board. The following are some of the more significant risks St Anne’s is currently facing:

Recruitment : Across the sector recruitment continues to be a challenge and St Anne’s is no different, our ability to recruit sufficient and suitably qualified nurses and support workers has the potential to impact our ability to support our clients, therefore recruitment remains one of our top priorities.

Funding: Funding is another challenge in the sector and given St Anne’s works closely with a relatively small number of customers we are reliant on their ability to fund the services we provide.

Whilst this could be a risk for St Anne’s, as part of our strategy there is a focus on growing our offer with those customers and also expanding the services we provide to new customers. This growth should therefore mitigate against any reliance on a few customers or any other restrictions in funding.

Pensions: The WYPF is a historic St Anne’s pension scheme which we recognise on our balance sheet, the scheme is expensive to run and the volatility around the pension’s valuation has the potential to have a significant impact on our financial statements, and our ability to tender for new work. To reduce the impact of this at the start of 2021/22 St Anne’s vastly reduced the membership of the scheme which has significantly reduced the on-going costs. At the same time, we continue to monitor the pensions valuation and take any appropriate action, whilst noting the long-term nature of the pension liability.

Structure, governance and management

St Anne’s Community Services is a company limited by guarantee. It is registered with the Charity Commission and is also a registered housing provider, regulated by The Regulator of Social Housing.

It is governed by its Articles of Association, which set out the charitable purposes for public benefit in the following terms:

St Anne’s governance arrangements include the Board, several Board committees, and working groups that provide focus on key areas, and a suite of procedures that are designed to ensure our charitable objectives are met. Our Articles of Association meet the needs of our current structures and incorporate flexibility to allow for future development.

Our Board of Trustees

The Board of Trustees are charity trustees as defined by section 177 of the Charities Act 2011. The Board comprises the legal directors of St Anne’s, and holds all the charity’s powers and authorities under St Anne’s Community Services’ Articles of Association. The Board of Trustees meets quarterly with additional ad hoc meetings for exceptional business reasons or decision making.

15

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

There are clear distinctions between the roles of the Board of Trustees and the Senior Management Team (executives employed by the organisation). The Trustees are ultimately responsible for the overall control and strategic direction of the organisation and for the protection of its assets. Day-to-day management is the responsibility of the Chief Executive and the other members of the Senior Management Team (SMT). Matters such as strategy, policy and budgets are prepared by the SMT for consideration and approval by the Trustees, who then monitor their operation and implementation.

Under the current Articles of Association, members of the Board of Trustees serve an initial term of between 3 and 4 years and can then be reappointed for further such terms but may not serve for more than 9 years unless the organisation agrees otherwise. New Trustees are selected through an open recruitment process, which includes advertising in the national press and online, and if appropriate a targeted recruitment search.

St Anne’s have appointed a number of new Trustees, and all have undertaken an induction programme tailored to their areas of expertise and governance obligations. All Trustees are provided with training opportunities to help them meet their responsibilities.

Our Committees

The Board has delegated specific responsibilities to several committees, each of which reports to the Board and has detailed terms of reference, which are reviewed annually. The committees meet regularly throughout the year, in accordance with their terms of reference. The committees are:

Audit and Risk Committee

The Audit and Risk Committee provides the Board with an independent and objective review of the organisation’s financial and risk management systems. Financial systems are reviewed through the committee by oversight of the internal audit programme and ensuring compliance with laws and regulations governing the organisation through review of the external audit process. Risks are reviewed in relation to monitoring, checking, and challenging the risk registers and providing assurance that they are being effectively managed.

Finance and Performance Committee

The Finance and Performance Committee exists to oversee and make recommendations to the Board on financial and operational performance issues. It also provides assurance that these are being effectively managed.

Health and Safety Committee

The Health and Safety Committee exists to oversee and make recommendations to the Board on all health, safety, and wellbeing policy issues as well as other health and safety matters. It also provides assurance around issues of statutory compliance ensuring that these are being effectively managed and monitored.

Pensions and Investments Committee

The Pensions and Investments Committee exists to oversee and make recommendations to the Board on all pension and investment matters. It also provides assurance that these are being effectively managed.

Quality and Safeguarding Committee

The Quality and Safeguarding Committee has prime responsibility for advising the Board on the suitability and adequacy of the organisation’s quality management systems and processes. It also supports the effective implementation of the governance framework and risk management framework by ensuring the monitoring and reviewing of the impact of their implementation through associated departmental risks and key performance indicators.

16

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Remuneration and Governance Committee

The Remuneration and Governance Committee keeps under review the membership of the Board and oversees processes for recruiting and appointing potential new Trustees to the Board. It determines the remuneration of the Chief Executive and other members of SMT and the overall SMT remuneration policy. It also has an oversight role for governance.

Our People

Empowering our people is one of the key pillars to St Anne’s strategy of delivering “A Life Without Limits”. St Anne’s recognises that by value, supporting, protecting, and empowering its people, it sustains its reputation for high quality care and support. In the most challenging of years, social care has been shown to be of key importance to society and a sector which plays a vital role in ensuring the safety and welfare of the most vulnerable.

Throughout the Covid-19 pandemic, staff across St Anne’s and throughout the social care sector went above and beyond. Faced with the continuing test of adapting to working alongside Covid-19 our people have placed the safety and welfare of others above their own and have taken significant challenges in their stride. We are, as we have always been, incredibly proud of all of our people.

The passion and dedication shown to improving the lives of others is something that defines the people within St Anne’s. Our values are created by our people, and they are lived out every day in our services. Being Person Centred, showing Respect, being Open, Understanding and Dedicated in everything we do is at the heart of what our people do. In the last year we have launched our Values and Behaviour Framework, which was co-produced with the people we support and St Anne’s staff, to reinforce how demonstrate our values every day in all that we do.

As of 31[st] March 2022, St Anne’s employed 1,250 members of staff made up of: 973 Support Workers, 49 Nurses, 60 Deputy Managers, 79 Service or Area Managers working at operational and front-line level in our services, supported by 89 staff in our central support functions or other roles. As with many social care providers, recruitment and retention when the economy opened up again post-Covid has been challenging. However, St Anne’s has continued to be able to grow and develop as an organisation, opening new services in Leeds, Huddersfield and Hull throughout the year.

We are proud of the care and kindness shown by our colleagues throughout the pandemic as they helped the people we support navigate the daunting prospect of repeated Covid-19 vaccinations and to adapting to changes in legislation and guidance. In general, our workforce embraced the requirement to become vaccinated to protect the people they support, which embodies the selflessness of those in social care. The hundreds of examples of dedicated, compassionate, and inspirational support are evidenced by the number of our colleagues nominated in our 2022 PROUD Awards.

Our commitment to ensuring and fair and competitive pay and reward structure has seen the organisation continue to ensure that all its staff are paid at least the Real Living Wage Foundation rate, in addition to reviewing other benefits such as our car allowance structure. We recognise the importance of ensuring an attractive employee value proposition and continue to work hard to make St Anne’s an employer of choice in the areas we operate. There has also been a large focus on enhancing the employee voice throughout the year with the launch of our new engagement surveying tool and the introduction of our Freedom to Speak Up Guardians.

Throughout the pandemic St Anne’s remained dedicated to ensuring that opportunities for learning and development were not lost. We have now transition back to face to face training delivery and concluded our first Leadership Development Programme for over 3 years. This has now progressed to our Deputy Manager and Aspiring Leaders Programme, which has seen over 20 leaders of the future undertake a tailored training programme to support their development. We have also maintained our delivery of apprenticeships whilst expanding our training and development support for our Housing function and remodelling training requirements across our operational services to reflect the diversity of delivery across St Anne’s.

17

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Equality, diversity, and inclusion

Recognising and celebrating our diversity in an inclusive environment for our staff and clients is, and will continue to be, a priority for St Anne’s.

We continue to embed the Skills for Care ‘confident with difference’ approach to supporting everybody at St Anne’s. This year we have recommitted to efforts to maintaining the Mindful Employer, Disability Confident and Stonewall Diversity Champions standards. These standards have all been reviewed and retained throughout the course of the year.

We remain committed to enhancing the voice of underrepresented groups across St Anne’s and importantly have been able to rejuvenate our Race Equality Network and LGBTQ+ Network, bringing colleagues back together after meeting virtually for many months. These networks are instrumental in guiding and refining our calendar of days of remembrance and celebration, as well as continually reviewing our supportive resources. Our policies and procedures ensure that we are inclusive and fit for purpose for diverse workforce and client groups. Their design and review ensure that a ‘check and challenge’ approach is maintained, along with our equality impact assessment processes.

St Anne’s EDI Officer role has also been developed to specifically incorporate and lead on wellbeing across the organisation alongside our Health and Wellbeing group, FRESH. Our focus on supporting the holistic wellbeing of our staff has seen us train additional Mental Health First Aiders, provide our line managers with additional training on supporting wellbeing and mental health and create resources to help our staff manage their financial wellbeing.

Remuneration Policy

We recognise that the skills, knowledge, and experience of our people is a huge contributor to the delivery of high-quality services. In support of our objective to attract, recruit and retain quality staff, we are committed to ensuring that we pay fair and competitive salaries.

Our policy on remuneration is to ensure that St Anne’s remains sustainable whilst also offering an attractive reward package that includes both financial and non-financial benefits. Our rates of pay are informed by sector wide benchmarking through participation in benchmarking studies and comparison with charity and social care sector data. Where possible, we look to pay above the median rate when considering rates of pay offered by our direct competitors. St Anne’s has also developed a job evaluation framework, providing a mechanism to score and compare job roles to ensure they sit at the appropriate salary point internally, whilst using benchmarking data from the sector to assess competitiveness.

We continue to invest in our workforce and by concluding our collective bargaining negotiations much earlier than previous years, we have ensured that a further above inflation pay increase was paid to all staff at the start of our financial year. St Anne’s ensures that all of its permanent workforce is at a rate which is at least the National Living Wage Foundation rate of £9.90 per hour (outside London) once they pass their probation period. We now pay our Support Workers £10.05 per hour after probation, a rate which ensures St Anne’s retains competitive rates of pay in Yorkshire and the North-East when compared to its other care sector competitors. The organisation also offers a range of key terms including above statutory sick pay and annual leave, life assurance, pay enhancements for applicable shifts, a salary exchange pension scheme and a suite of staff benefits.

The Board are consulted on, and approve, decisions on overall pay awards, taking account of affordability, benchmarking, and economic trends in the sector. Remuneration of the executive team is determined by the Remuneration and Nominations Committee, a committee of the Board. No Trustees are paid, although they can claim reasonable expenses.

The organisation complies with its requirements under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 and is committed to eliminating gender pay inequality. In March 2022, St Anne’s published its most recent gender pay gap report, showing a marginal 2.6% mean pay gap in favour of male staff.

18

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Compliance with the Charity Governance Code and the 2020 Code of Governance for Housing Associations

Good governance is a key influence on the organisation’s behaviour and culture, as well as facilitating the Board’s role in monitoring activities and developments. We always aim for a continuous improvement in, and the development and strengthening of, our governance systems and processes.

Our Board committee structures continue to evolve and mature. Again, this year we have appointed a further four new Trustees who have all gone through induction and mandatory training and based on their knowledge and strengths have been appointed to appropriate committees, where they are already significantly contributing.

The Charity Governance Code

We continue to work on the Charity Governance Code for Larger Charities and provide evidence and examples of good governance standards and practices. Set out in seven principles, along with key outcomes for each principle, the Code sets out the following high standards with which we substantially comply:

The Code is deliberately aspirational, therefore as an organisation whilst we achieve elements of each of the principles within the code we are focused on continuous improvement of our compliance against the Code.

The Housing Code of Governance

Last year St. Anne’s adopted the 2020 Code of Governance for Housing Associations, this year we have worked to build and evidence the highest standards of governance and board excellence setting out standards that housing associations, their boards, and the wider sector should seek to attain.

Having been completely rewritten and restructured to reflect the changes in society, the economy, and the impact they have on the sector and the importance of a greater focus on and protection of the interests of the people we support. In adopting the code, we continue to work to:

19

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

The code is built around the key values that good governance is based on and overlaps and complements the Charity Governance Code in its reflection, accountability, integrity, openness, and equality, diversity, and inclusion. It has at its heart four core principles which shape the content of the code, each with a set of requirements for organisations to adopt:

Compliance with Regulator of Social Housing standards

The Board considers that St Anne’s complies with the Governance and Financial Viability Standards for registered social housing providers. Our system of internal control is designed to manage key risks and provide reasonable assurance that planned business objectives and outcomes are achieved. It also exists to give reasonable assurance about the preparation and reliability of financial and operational information and the safeguarding of the organisation’s assets and interests. Our self-assessment framework contains stress testing of risks and assumptions to ensure objectives and viability are fully deliverable.

In meeting its responsibilities, the Board has adopted a risk-based approach to internal controls which includes the regular evaluation and assessment of the nature and extent of risks to which the organisation is exposed.

The Registered Social Housing regulatory returns, such as financial forecasts, statistical data, and disposal returns, are submitted in an accurate and timely manner. The Board also considers that effective controls are in place to ensure security of assets, the proper, accountable, and transparent use of public funds and that effective systems are in place to monitor and accurately report delivery of our plans. Any risks to the successful delivery of financial plans are identified and effectively managed.

During the year, following a review of the senior management structure, a full-time Director of Housing was appointed to ensure specialist leadership and advice to the Board on rents, Value for Money and Economic and Consumer Standards. The Chief Finance Officer monitors compliance with the Economic Standards, and the Director of Housing monitors compliance with the Consumer Standards and keeps Trustees updated on the proposed Social Housing White Paper. Reports for both are also presented to the relevant Committees and Board. There is effective management and scrutiny in place including cost control and improving Value for Money, with regular reporting to the Finance and Performance Committee and the Board.

Furthermore, in 2020/21 there was an internal review of our self-assessment of the Regulator of Social Housing standards, this has been completed for all standards. At this time, we believe we substantially comply with each of those standards. We will continue to review the regulatory self-assessments again during 2022/23.

20

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Streamlined Energy and Carbon Reporting (SECR)

St. Anne’s has followed and used robust and accepted methods to calculate the required information for this SECR Report including the HM Government Environmental Reporting Guidelines 2019, the Governments Sustainability Reporting Guidance 2021, the Greenhouse Gas (GHG) Reporting Protocol, and the UK Government's Greenhouse Gas Reporting Conversion Factors 2021.

Based on this our emissions and energy usage for the financial year were:

UK Greenhouse Gas emissions and energy use
data for the period 1 April 2021to 31 March 2022
Data used to calculate emissions
Gas (kWh) 4,715,910
LPG (kWh) 84,592
Electricity (kWh) 1,416,462
Transport (kWh) 235,283
Transport (miles) 185,893
Scope 1GHG Emissions (kg CO2e)
Gas (Natural) 848,863
LPG 17,764
Company /FleetVehicles- Diesel 51,285
Company /FleetVehicles- Petrol 7,233
Total Scope 1 Emissions (kg CO2e) 925,145
Scope 2GHG Emissions (kg CO2e)
Electricity (Grid Supplied) 273,915
Total Scope 2 Emissions (kg CO2e) 273,915
Scope 3 GHG Emissions (kg CO2e)
GreyFleet 51,117
Total Scope 3 Emissions (kg CO2e) 51,117
Total GHG Emissions (kg CO2e) 1,250,177
Emissions Intensity Ratio
Total kg CO2e per£1.00 of Total Income 0.029

Intensity Measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £1 of total income.

Energy Efficiency Action

St. Anne’s recognises the importance of becoming more energy efficient. An example of this would be as part of a major relocation project of our head office various energy reduction technologies and approaches have been introduced to minimise the overall energy footprint. These include, but are not limited to:

21

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Internal controls assurance

As part of the internal audit programme St Anne’s continues to work with BDO LLP, as our independent internal auditors. For 2021/22, the Audit and Risk Committee agreed a programme of internal audits focused around key risk areas which look to further support strong corporate governance and demonstrate robust and effective controls across the organisation.

In addition to the internal audit programme, assurance is also gained from other controls that have been put in place across the organisation in the year. These include:

The programme in 2021/22 has demonstrated some overall improvements in terms of organisational design and effectiveness compared to the audit areas from the previous years, and a number of examples of good practice. However, they equally identified some key areas and recommendations where further improvements can be made, and action plans to address these have been drawn up with progress monitored by the relevant committee.

Considering the above points, Trustees consider that these collectively offer sufficient assurance to be able to regard the internal controls position as satisfactory overall, as well as identifying additional opportunities for improvement.

Compliance with s172 of the Companies Act 2006

The Trustees confirm their compliance with s172 of the Companies Act 2006. Set out below are several examples of compliance, and many others are included in relevant sections throughout this report.

The Trustees recognise the need for the organisation to operate in a way that considers, and is fair to, all of its stakeholders, which is similarly recognised through its charitable purpose and embedded within the culture and values of the organisation (see page 7).

The organisation takes account of the longer-term impacts of its decisions, and last year we launched our next 5 year strategy, setting out our strategic commitments, and supporting plans through to 2026 (see pages 7-8). This in particular focuses on our longer term commitments to; our people; excellent service delivery; and being financial sustainable and delivering value for money.

Employee interests are also at the heart of what we do, as is demonstrated by Person Centred being one of our organisational values and with Empowering our People being one of the pillars within our strategic commitments for the next 5 years (see page 7). Our approach to people, diversity and inclusion and remuneration also has significant focus within St Anne’s (see pages 18-21). The organisation has a strong regard for both the communities it works within and the environment as set in our Corporate Social Responsibility statement (see page 9) and with both communities and the environment forming part of one of our three strategic commitments for the next 5 years (see page 7).

The Trustees also confirm the organisation’s continued drive to maintain a reputation for high standards as demonstrated in the report on the section on strengthening our governance (see page 9), our committee structure (see pages 16-17) and specifically in terms of compliance with the Charity Governance Code and the Code for Governance for Housing Associations (see pages 19-20).

22

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Statement of public benefit

The Trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have regard to the Charity Commission’s general guidance on public benefit, “Charities and Public Benefit”.

The organisation’s charitable objects are enshrined within its Articles of Association and as such the Trustees ensure that the organisation’s activities are carried out for the public benefit through the setting and implementation of its strategic priorities. This report also allows us to show how our charitable funds are spent.

Any fundraising activities we conduct are compliant with the Charity Commission’s guidance on fundraising.

Statement of Trustees’ responsibilities

The Trustees (who are also directors for the purposes of company law) are responsible for preparing the annual report, which incorporates the strategic report and financial statements in accordance with the Companies Act 2006 and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year that give a true and fair view of the state of the affairs of the organisation, and of the incoming and outgoing resources and application of resources, including income and expenditure for the period.

In preparing these financial statements the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the organisation and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the organisation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the organisation's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may vary from legislation in other jurisdictions.

The Trustees confirm that, insofar as they are aware:

External auditors

Mazars LLP is eligible to act as an auditor under the relevant section of the Companies Act 2006.

By order of the Board

Anthea Sully Chair of Board of Trustees

Nov 3, 2022

23

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Independent auditor’s report to the members of St Anne’s Community Services

Opinion

We have audited the financial statements of St Annes Community Services (the ‘charity’) for the year ended 31 March 2022 which comprise of the Statement of Comprehensive Income, Statement of Changes in Reserves, Cash Flow Statement and Statement of Financial Position and notes to the financial statements, including a summary of significant accounting policies.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the “Auditor’s responsibilities for the audit of the financial statements” section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

24

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Directors

As explained more fully in the directors’ responsibilities statement set out on page 23, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation and UK pensions legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

25

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.

In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, revenue recognition and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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

Use of the audit report

This report is made solely to the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body for our audit work, for this report, or for the opinions we have formed.

Nov 9, 2022

Vincent Marke (Senior Statutory Auditor) for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor 5[th] Floor, 3 Wellington Place, Leeds, LS1 4AP

26

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Statement of Comprehensive Income
For the year ended 31 March 2022
Note
Turnover
2
Operating costs
2
(Deficit) on sale of housing property
5
Operating Surplus / (Deficit)
7
Interest receivable and similar income
6
Other finance interest
20
Surplus / (Deficit) for the year
Other Comprehensive Income
Actuarial gain / (loss) in respect of pension schemes
20
Total Comprehensive Surplus / (Deficit) for the year		 2022
2021
£'000
£'000
43,641
44,685
(43,138)
(45,097)
503
(412)
(40)
-
463
(412)
82
56
(417)
(316)
128
(672)
19,572
(5,159)
19,700
(5,831)

The organisation's results relate wholly to continuing activities. The accompanying notes form part of these financial statements.

The financial statements were approved by the Board on Nov 3, 2022 and signed on its behalf by: Ms A Sully, Chair of Board of Trustees

Oliver Laird (Nov 3, 2022 22:11 GMT) Mr O Laird, Trustee and Chair of Audit & Risk Committee

Company Registration Number 1089026

27

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Statement of Changes in Reserves
For the year ended 31 March 2022
Balance as at 31 March 2020
Total Comprehensive Deficit
Balance as at 31 March 2021
Total Comprehensive Surplus
Balance as at 31 March 2022		 Investment
revaluation
reserve
Revenue
reserve
Total
£'000
£'000
£'000
8
819
827
(8)
(5,823)
(5,831)
-
(5,004)
(5,004)
-
19,700
19,700
-
14,696
14,696

28

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Statement of Cash Flows

For the year ended 31 March 2022
Note
Net cash generated from operating activities
15
Cash flow from investing activities
Acquisition and construction of housing properties
Purchase of other tangible fixed assets
Purchase of intangible fixed assets
Proceeds from sale of fixed assets
Proceeds from disposal of fixed asset investments
Interest received and similar income
Net change in cash, cash equivalents and money
market deposits
Cash, cash equivalents and money market deposits at
beginning of the year
Cash, cash equivalents and money market deposits at
end of the year		 2022
2021
£'000
£'000
(1,504)
2,974
(339)
(100)
(3,053)
(311)
(26)
0
(33)
0
-
1,507
(3,451)
1,096
82
56
(4,873)
4,126
15,781
11,655
10,908
15,781

The accompanying notes form part of these Financial Statements

29

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Statement of Financial Position
For the year ended 31 March 2022
Note
Fixed Assets
Housing properties
8
Other tangible fixed assets
9
Intangible fixed assets
9
Fixed asset investments
10
Current assets
Trade and other debtors
11
Investments
12
Cash and cash equivalents
Creditors: amounts falling due within one year
13
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one
year
14
Provision for Liabilities
17
Net pension liability
20
Total net assets / (liabilities)
Reserves
Investment revaluation reserve
Income and Expenditure reserve
Total reserves		 2022
2021
£'000
£'000
8,699
8,800
6,768
4,335
72
75
2
2
15,541
13,212
4,895
2,973
4,516
4,494
6,392
11,287
15,803
18,754
(5,766)
(5,910)
10,037
12,844
25,578
26,056
(10,008)
(10,693)
-
-
(874)
(20,367)
14,696
(5,004)
-
-
14,696
(5,004)
14,696
(5,004)

The accompanying notes form part of these Financial Statements The Financial Statements were approved by the Board on and signed on its Nov 3, 2022 behalf by:

Ms A Sully, Chair of Board of Trustees

Oliver Laird (Nov 3, 2022 22:11 GMT)

Mr O Laird, Trustee and Chair of Audit & Risk Committee

Company registration number 1089026

30

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

Legal status

St Anne’s Community Services is a registered housing provider, a charity and a company limited by guarantee. The registered office is 6 St Marks Avenue, Leeds LS2 9BN. The organisation is incorporated in England and Wales, company registration number 1089026.

Basis of accounting

The financial statements have been prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP) including Financial Reporting Standard 102 (FRS102) and the Housing SORP 2018: Statement of Recommended Practice for Registered Social Housing Providers and comply with the Accounting Direction for Private Registered Providers of Social Housing 2019. The financial statements are presented in Sterling (£). St Anne’s Community Services is a public benefit entity in accordance with FRS 102. The financial statements have been prepared on the historical costs basis except where specified in the accounting policies.

Going concern

The organisation's business activities, its current financial position and factors likely to affect its future development are set out in the report of the Trustees (incorporating the strategic report). The organisation has cash and investment balances which provide adequate resources to finance the organisation's day to day operations and committed expenditure. The organisation has a plan which shows that these resources are sufficient to continue to fund operations.

Our planning processes, including financial projections, take into consideration the current economic climate and in particular the currently known impact of Covid-19, hence ultimately the potential impact on our various sources of income and planned expenditure. We acknowledge our pension fund obligations and are developing a clear strategy to manage the deficit on the West Yorkshire Pension Fund. The Audit Committee and the Board have carefully considered the relevant conditions and performed an assessment. The Trustees have concluded, based on a review of forecasts and budgets, that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the organisation to continue as a going concern.

On this basis, the Board has a reasonable expectation that the organisation has adequate resources to continue in operational existence for the foreseeable future, being a period of at least 12 months after the date on which the financial statements are signed. For this reason, the organisation continues to adopt the going concern basis in the financial statements.

Significant judgements and estimates

The preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Judgements

In terms of revenue recognition on grant income, many of the contacts are long term contracts and some of these are funded by way of grant income. Typically grant income is received in line with the costs incurred on the contract. However, there are some exceptions, mostly historical, where deferred revenue for grant income has been held on the balance sheet to reflect the risk that repayments may be required for excess grant income received and/or there may be recovery through future changes in grant rates and/or to act as a contingency for unexpected one-off contract costs. There is judgement in assessing how much deferred income is required for grants at year-end. The deferred revenue from grant income in the balance sheet at 31 March 2022 was £nil (2021: £242k) and the amount released to the income and expenditure account in the year was £242k (2021: £62k).

Estimates

Useful economic lives of depreciable assets – management reviews its estimate of the useful economic lives of depreciable assets at each reporting date based on the expected use of the assets. Uncertainties in these estimates primarily relate to changes in improvement programmes for

31

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

components and the Decent Homes Standards, which may require more frequent replacement of key components. Accumulated depreciation at 31 March 2022 was £12,984k.

Defined benefit obligation – management's estimate of the defined benefit pension valuation is based on several critical underlying assumptions such as the standard rate of inflation, mortality, discount rate and anticipation of future salary increases. Variations in these assumptions may significantly impact on the valuation of the defined benefit obligation and the annual defined benefit expenses. The defined benefit pension liability at 31 March 2022 was £874k (2021: £20,367k), with further details and explanation in note 20.

Basis of consolidation

The organisation has taken advantage of the exemption from preparing group financial statements contained in Section 402 of the Companies Act 2006 on the grounds that its subsidiary undertaking is immaterial to the Group under section 405(2) of the Act. Details of the subsidiary undertaking are set out in note 10.

Turnover and revenue recognition

Turnover comprises rental income receivable, fees and grants from central and local government and the proceeds of fundraising activities. Revenue grants are recognised as income when the conditions for receipt of grant funding have been met and/or they no longer meet the criteria to allow them to be retained on the balance sheet . Rental income is recognised when properties become available for letting, net of any voids. Charges for support services funded under Supporting People are recognised as they fall due under the contractual arrangements with administering authorities.

Housing Properties

Housing properties are properties held for the provision of social housing or to otherwise provide social benefit. Housing properties are principally properties available for rent and are stated at cost less accumulated depreciation and impairment losses. Cost includes the cost of acquiring land and buildings and development costs.

Works to existing properties which replace a component that has been treated separately for depreciation purposes, along with those works that result in an increase in net rental income over the lives of the properties, thereby enhancing the economic benefits of the assets, are capitalised as improvements.

Depreciation of Housing Properties

The organisation separately identifies the major components which comprise its properties held for social housing and non-social housing lettings and charges depreciation, so as to write down the cost of each component to its estimated realisable value, on a straight-line basis, over its estimated useful economic life.

The organisation depreciates the major components of its properties held for social and non-social housing lettings using the following useful lives:

Structure 75 years
Roof 50 years
Electrics 40 years
Heating, ventilation and plumbing 30 years
Windows 30 years
Boilers, kitchens & bathrooms 15 years

32

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Other fixed assets and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is charged by equal monthly instalments over the expected useful lives of the assets. The useful economic lives applied are as follows:

ual monthly instalments over the expected
plied are as follows:		 useful lives of the ass
Improvements to leasehold premises Period of lease
Furniture, fixtures and fittings 2 years
Computer equipment 3 years
Motor vehicles 4 years
Office and workshop equipment 5 years
Software 5 years

Government Grants

Government grants include grants receivable from Homes England, local authorities, and other government organisations. Where Government Grants have a corresponding legal charge on the property for the open market value then the grant will be recorded at the net book value of the asset. Where Government grants are not linked to an open market value legal charge, then these are recognised in income over the life of the asset under the accruals model.

Grants relating to revenue are recognised in income and expenditure over the same period as the expenditure to which they relate once reasonable assurance has been gained that the organisation will comply with the conditions and that the funds will be received. Grants due from government organisations or received in advance are included as current assets or liabilities.

Other Grants

Grants received from non-government sources are recognised using the performance model. A grant which does not impose specified future performance conditions is recognised as revenue when the grant proceeds are received or receivable. A grant that imposes specified future performance-related conditions on the organisation is recognised only when these conditions are met. A grant received before the revenue recognition criteria are satisfied is recognised as a liability.

Impairment

Annually, housing properties are assessed for impairment indicators. Where indicators are identified, an assessment for impairment is undertaken, comparing the scheme's carrying amount to its recoverable amount. Where the carrying amount of a scheme is deemed to exceed its recoverable amount, the scheme is written down to its recoverable amount. The resulting impairment loss is recognised as operating expenditure. Where a scheme is currently deemed not to be providing service potential to the organisation, its recoverable amount is its fair value less costs to sell.

Investments

Non-quoted investments are accounted for on a historical cost basis less any provision for impairment. Quoted investments are accounted for at market value at the balance sheet date. Any upward movement in valuation is taken to the investment revaluation reserve and shown in the statement of Comprehensive Income except to the extent that an upward revaluation is in respect of a previous reduction charged as impairment to the Income and Expenditure account. In this event, the upward revaluation is credited to the Income and Expenditure account to the extent of the previously impaired value. Any reduction in investments value is charged to the investment reserve and shown in the statement of total recognised surpluses and deficits, to the extent that there has been a previous upward valuation. Any excess reduction in market value over previous upward valuations is charged to the income and expenditure account.

Financial Instruments

Basic and non-basic financial instruments (as defined in Section 11 of FRS102) are shown at market value (for quoted investments) or at transaction value less any provision for impairment. The organisation has not adopted hedge accounting for any financial instruments.

Allocation of head office expenses

Head office salaries and overhead expenses are charged to the various housing and non-housing activities of the organisation as a percentage of income.

33

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

General Charity Fund

The General Charity Fund has been created from donations and the proceeds of fundraising activities and is available to meet expenditure within the organisation’s objectives for which no other finance is available. The Fund is included within Income and Expenditure Reserves in the Statement of Financial Position.

Leased assets

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the leased asset to the organisation. All other leases are classified as operating leases. Rentals payable under operating leases are charged to income and expenditure on a straight-line basis over the lease term. The aggregate benefit of lease incentives is recognised as a reduction to the expense recognised over the lease term on a straight-line basis.

Debtors

Short-term debtors are measured at transaction price, less any impairment. Where deferral of payment terms has been agreed at below market rate, and, where material, the balance is shown at the present value, discounted at a market rate.

Cash and Cash equivalents

Cash is represented by cash in hand and deposits within financial institutions.

Creditors

Short-term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Creditor balances arising through contracts will be held on the balance sheet for six years from the point they have arisen, or from the point our records show they have arisen, whichever is the later, on the basis this is a reasonable limitation period. However such balances will be looked at on a case by case basis and if based on management judgement they believe there is still a reasonable chance of a valid claim against a creditor balance they may be held on the balance sheet for a longer period of time.

Provision for liabilities

Provisions are recognised when the organisation has an obligation as a result of a past event. The organisation recognises a provision for future losses on contracts entered into before the year end. The amount recognised as a provision is the best estimate of the expected losses over the remaining term of these contracts.

Employee benefits

Short-term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred. The organisation recognises a provision for annual leave accrued by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months. The provision is measured at the salary cost payable for the period of absence.

Pensions

The organisation participates in two funded multi-employer defined benefit schemes, the National Health Service Pension Scheme (“NHS Pension Scheme”) and the West Yorkshire Pension Fund (“WYPF”). For the National Health Service Pension, the scheme does not allow identification of the share of underlying assets and liabilities belonging to individual participating employers. The income and expenditure charge includes the employer contribution payable to the scheme for the accounting period. The NHS Pension Scheme is in respect of those specific employees who have transferred their employment into the organisation via a TUPE agreement agreed with commissioners in relation to specific contractual and legal agreements.

34

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

For WYPF, scheme assets are measured at fair values. Scheme liabilities are measured on an actuarial basis using the projected unit credit method and are discounted at appropriate high-quality corporate bond rates. The net surplus or deficit is presented separately from other net assets on the statement of financial position. A net surplus is recognised only to the extent that it is recoverable by the organisation through reduced contributions or through refunds from the plan. The current service cost and costs from settlements and curtailments are charged against operating surplus. Past service costs are recognised in the current reporting period. Interest is calculated on the net defined benefit liability. Remeasurements are reported in other comprehensive income.

The government introduced auto enrolment pension schemes when employers were phasing out their provision of pension schemes for employees due to cost. The auto enrolment scheme allows eligible employees access to a pension scheme that is contributed to by their employer as well as themselves. Scottish Widows is the auto enrolment pension scheme for the organisation’s contracted staff with The People’s Pension chosen as the provider for our non-contracted (casual) staff. Eligibility to be automatically enrolled on the Scottish Widows scheme is that the member of staff must be over 21 years old but under state pension age and be paid over £10k per annum. Contributions to the scheme are three per cent from St Anne’s and five per cent from the employee. Eligible staff will automatically be enrolled but with the option to opt out. Any employee that exercises their option to opt out of the scheme will be automatically re-enrolled every three years (as part of the tri-annual assessment) if they are eligible, to allow them the opportunity to become a member of a pension scheme and make a provision for their retirement through this route. They will be given the option to opt out each time.

Supported housing managed by agencies

Social housing capital grants are claimed by the organisation as developer and owner of the property and included in the balance sheet of the organisation as appropriate.

The treatment of other income and expenditure in respect of supported housing projects depends on the nature of the partnership arrangements between the organisation and its managing agents and on whether the organisation carries the financial risk.

Where the organisation holds the support contract with the Supporting People Administering Authority and carries the financial risk, the entire project's income and expenditure is included in the organisation’s income and expenditure account (see note 2).

Where the organisation holds the support contract with the Supporting People Administering Authority and carries the financial risk, the income and expenditure account include only that income and expenditure which relates solely to the organisation. Other income and expenditure of projects in this category is excluded from the organisation’s income and expenditure account (see note 2).

35

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

2. TURNOVER, OPERATING COSTS AND OPERATING SURPLUS

For the year ended 31 March 2022
Social housing lettings
Other social housing activities
St Anne's Centre
Respite Services
Tenancy support - Other funding
Funded projects
Other
Total other social housing activities
Non-social housing activities
Lettings
Other
Total non-social housing activities
Grand total
For the year ended 31 March 2021
Social housing lettings
Other social housing activities
St Anne's Centre
Respite Services
Tenancy support - Other funding
Funded projects
Other
Total other social housing activities
Non-social housing activities
Lettings
Other
Total non-social housing activities
Grand total		 Turnover
Operating
costs
Operating
surplus /
(deficit)
£'000
£'000
£'000
14,084
(13,106)
978
314
(246)
68
2,554
(2,357)
197
16,894
(16,523)
434
1,177
(1,185)
(8)
292
(599)
(307)
21,231
(20,910)
321
7,927
(8,666)
(739)
399
(456)
(57)
8,326
(9,122)
(796)
43,641
(43,138)
503
Turnover
Operating
costs
Operating
surplus/
(deficit)
£'000
£'000
£'000
14,492
(13,907)
585
591
(620)
(29)
2,542
(2,322)
220
17,307
(17,253)
54
1,334
(1,267)
67
29
(999)
(970)
21,803
(22,461)
(658)
7,855
(8,426)
(571)
535
(303)
232
8,390
(8,729)
(339)
44,685
(45,097)
(412)

36

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

2. TURNOVER OPERATING COSTS AND OPERATING SURPLUS (continued)

PARTICULARS OF INCOME AND EXPENDITURE FROM SOCIAL HOUSING LETTINGS

For the year ended 31 March 2022
Turnover from social housing lettings
Rent receivable net of identifiable service
charges
Service income
Charges for support services
Net rental income
Revenue grants
Other income
Amortisation of government grants
Turnover from social housing lettings
Expenditure on social housing lettings
Management and care
Services
Routine maintenance
Bad debt
Operating costs on social housing
lettings
Operating surplus on social housing
lettings
Void losses		 Hostels &
Supported
Housing
Residential
Care
Homes
2022
Total
2021
Total
£'000
£'000
£'000
£'000
1,647
5,773
7,420
7,500
2,767
-
2,767
2,964
783
-
783
826
5,197
5,773
10,970
11,290
-
1
1
209
1,266
1,701
2,967
2,847
93
53
146
146
6,556
7,528
14,084
14,492
(4,249)
(6,296)
(10,545)
(11,244)
(629)
(503)
(1,132)
(1,303)
(972)
(377)
(1,349)
(1,370)
62
(18)
(80)
11
(5,912)
(7,194)
(13,106)
(13,906)
644
334
978
586
(517)
(32)
(549)
(618)

37

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

2. TURNOVER OPERATING COSTS AND OPERATING SURPLUS (continued)

ACCOMMODATION IN MANAGEMENT AND DEVELOPMENT

At the end of the year accommodation in management was as follows:

Social housing
Supported housing and hostels
Residential care homes
Total owned
Accommodation managed for others
Total managed
Non-social housing
Registered nursing homes
Total owned
Accommodation managed for others
Total managed		 2022
New
Units
Units
taken out
of use
2021
No.
No.
272
-
(2)
274
133
-
-
133
405
-
(2)
407
76
3
-
73
481
3
(2)
480
83
-
-
83
83
-
-
83
-
-
-
-
83
-
-
83

FUNDRAISING

Gifts and donations received
Direct charitable expenditure
Transfer to general charity fund		 2022
2021
£'000
£'000
107
104
(21)
(25)
86
79

38

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

3. KEY MANAGEMENT PERSONNEL

Key management personnel compromise the members of the Board, the Chief Executive and other members of the Senior Management team. No emoluments were paid to members of the Board during the year.

Emoluments of the organisation's key management personnel
(salary, pension contributions, employer's national insurance and benefits in
kind)
Compensation for loss of office
Emoluments of the highest paid employee (excluding pension contributions)		 2022
2021
£'000
£'000
704
814
0
0
174
196

Emoluments of the highest paid employee (excluding pension contributions)

The full-time equivalent number of staff members who received emoluments (salary, pension contributions and benefits in kind)

2022 2021
No. No.
£60,001 - £70,000 4 1
£70,001 - £80,000 1 2
£80,001- £90,000 2 1
£90,001 - £100,000 2 1
£100,000 - £110,000 - 1
£120,001 - £130,000 - 1
£130,001 - £140,000 1 -
£170,001 - £180,000 1 -
£190,000 - £200,000 - 1

In 2021/22 there were 8 different people included as part of the Senior Management Team. The SMT is made up of the following roles: CEO, CFO, Director of Operations, HR Director, Housing Director, and Director of Business Development.

The highest paid director in the year was the Chief Executive Officer.

Total expenses* reimbursed to the directors of the organisation 2022
2021
£
£
-
49

*The Trustees (all of whom are directors) receive only essential expenses.

39

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

4. EMPLOYMENT INFORMATION

Average monthly number of employees expressed in full time equivalent of 37.5 hours:

Finance and administration staff
Maintenance and housing staff
Care staff		 2022
2021
No.
No.
72
67
8
8
1,034
1,064
1,114
1,139

Employee costs:

Staff costs (for the above persons)
Wages and salaries
Social security costs
Other pension costs
5. SURPLUS ON DISPOSAL OF HOUSING PROPERTIES
Disposal proceeds
Carrying value of asset
6. INTEREST RECEIVABLE AND SIMILAR INCOME
Interest Receivable		 2022
2021
£'000
£'000
31,740
31,668
2,380
2,442
1,125
2,776
35,245
36,886
2022
2021
£'000
£'000
(31)
-
(9)
-
(40)
-
2022
2021
£'000
£'000
82
56
82
56

40

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

7. OPERATING SURPLUS / (DEFICIT)

Operating surplus/deficit is arrived at after charging:

Depreciation of freehold housing property
Depreciation of other fixed assets
Auditors' remuneration (excluding VAT):
Fees payable for the financial statement audit
Fees for other audit services: audit of subsidiary
accounts
Total audit services
Tax compliance services
Total non-audit services
Operating leases
- Land & buildings
- Other		 2022
2021
£'000
£'000
230
219
408
435
41
39
3
3
42
42
13
4
13
4
216
316
423
333

41

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

8. TANGIBLE FIXED ASSETS – Housing Properties

Cost
1 April 2021
Additions to existing properties
Disposals
31 March 2022
Depreciation
1 April 2021
Charge for the year
Impairment Charge in year
Disposals
31 March 2022
Net book value at 31 March 2022
Net book value at 31 March 2021		 Freehold
housing
property
£'000
14,923
339
(419)
14,843
6,123
230
(209)
6,144
8,699
8,800
Expenditure on works to existing properties:
Improvement works capitalised
Amount charged to income and expenditure account		 2022
2021
£'000
£'000
339
100
662
742
1,001
842

The total accumulated amount of capital grants received as at the balance sheet date is £19.6m (2021: £19.9m).

42

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

8. TANGIBLE FIXED ASSETS - Social Housing

8. TANGIBLE FIXED ASSETS - Social Housing
Grants
Balance at 1 April
Amortised within Statement of Comprehensive Income
Released on disposal
Balance at 31 March
Recognised in:
Creditors: amounts falling due within one year
Creditors: amounts falling due after more than one year		 2022
2021
£'000
£'000
10,938
11,176
(241)
(238)
(443)
-
10,254
10,938
247
245
10,007
10,693
10,254
10,938

Social Housing Grants are receivable from the Homes and Communities Agency. Grants received for properties under construction are classified as creditors falling due within one year. Once properties have been completed, the grant is classified as a creditor falling due after more than one year and is amortised over the life of the structure of those properties.

43

ST ANNE’S COMMUNITY SERVICES

Company No 1089026

9. TANGIBLE FIXED ASSETS – Other fixed assets

Cost
1 April 2021
Additions
Disposals
31 March 2022
Depreciation
1 April 2021
Charge for the year
On disposals
31 March 2022
Net book value
31 March 2022
31 March 2021		 Other
freehold
properties
Additions
to
leasehold
premises
Capital
work in
progress
Office and
workshop
equipment
Computer
Equipment
Furniture
fixtures and
fittings
Motor
Vehicle
Intangible
assets
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
6,538
47
240
889
3,119
4
125
10,961
158
-
2,631
-
113
151
-
26
3,079
(386)
(47)
-
(1)
(122)
(4)
-
(560)
6,309
-
2,631
240
1,001
3,148
-
151
13,480
2,572
39
230
697
2,961
2
50
6,551
103
3
7
123
142
1
29
408
(152)
(42)
-
(1)
(121)
(3)
0
(319)
2,523
-
-
237
819
2,982
-
79
6,640
3,786
-
2,631
3
182
166
-
72
6,840
3,965
9
-
10
191
158
2
75
4,410

44

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

10. FIXED ASSET INVESTMENTS

Total fixed asset investments comprise:

Interest in subsidiary
Investment fund plans, at valuation
Net book value at 31 March
The historical cost of fixed asset investments is £nil (2021: £nil).
Investment Fund Plans
Market value at 1 April 2021
Disposals
Additions
Change in market value
Market value at 31 March 2022		 2022
£'000
-
2		 2021
£'000
-
2
2 2
£'000
2
-
-
-
2

Interest in subsidiary

The organisation owns the whole share capital (two £1 ordinary shares) of St Anne's Trading Limited, a company registered in England and Wales.

The trading results are consolidated numbers of St Anne's Community Services and St Anne's Trading Limited, whose results are presented and audited in their own annual report. The financial statements of St Anne's Trading Limited can be obtained from the registered office at Unit 5, Fountain Court, Bruntcliffe Way, Morley, Leeds, LS27 0JG .

45

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Arrears of rent
Less: Provision for bad and doubtful debts
Invoiced debtors
Other debtors
Prepayments and accrued income
Amounts owed by subsidiary company		 2022
2021
£'000
£'000
683
430
(132)
(59)
551
371
3,633
1,710
152
230
485
634
74
28
4,895
2,973

12. CURRENT ASSET INVESTMENT

Money market deposits
Listed investment fund
Current asset investments		 2022
2021
£'000
£'000
3,991
3,972
525
522
4,516
4,445

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Pension contributions
Other creditors
Deferred income - revenue grant
Accruals and deferred income
Other taxation and social security
Deferred capital grant income		 2022
2021
£'000
£'000
1,884
1,530
167
279
420
604
-
242
2,512
2,004
536
1,005
247
246
5,766
5,910

46

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Other loan
Deferred grant income		 2022
2021
£'000
£'000
1
1
10,007
10,692
10,008
10,693
The loan is repayable at varying rates of interest by instalments over more than 5 years and is The loan is repayable at varying rates of interest by instalments over more than 5 years and is
secured by a special charge on a housing property.
2022 2021
Deferred Grant Income: £'000 £'000
At 1 April 2021 10,938 11,176
Received in year - -
Repaid in year (443) -
Released to income (241) (238)
At 31 March 2022 10,254 10,938
Released in one year 247 246
Released in more than one year 10,007 10,692
10,254 10,938

15. NET CASH GENERATED FROM OPERATING ACTIVITIES

Surplus/ (Deficit) for the year
Interest Receivable
Depreciation
Decrease in provisions
Surplus on disposal of fixed assets
Amortisation/Release of grants
(Increase) / Decrease in debtors
(Decrease) / Increase in creditors
FRS102 Pension Adjustment		 2022
2021
£'000
£'000
19,700
(5,831)
(82)
(56)
638
653
-
(210)
40
-
(241)
(248)
(1,922)
1,829
(144)
1,894
(19,493)
4,943
(1,504)
2,974

47

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

16. CAPITAL COMMITMENTS

At 31 March 2022, St Anne's had capital commitments of £178k, for all of which contracts had been placed. (2021:£nil)

17. PROVISION

At 31 March 2022, following a review by Management, and in accordance with Accounting Standards, there were £nil provisions (2021: £nil).

18. CONTINGENT LIABILITIES

In accordance with FRS 102 St Anne’s recognises contingent liabilities where management (and their legal representatives) has assessed those potential liabilities as being possible (and would make a provision where such potential liabilities have been assessed as being probable). At the year-end management believe no such possible liabilities exist and as such no contingent liabilities have been disclosed (£nil).

19. LEASING COMMITMENTS

The future minimum lease payments to be made by the organisation are as follows:

Leases expiring:
In one year or less
Between one and five years		 2022
2021
Land and
buildings
Other
Land and
buildings
Other
£'000
£'000
£'000
£'000
198
127
290
136
18
296
26
197
216
423
316
333

48

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

The future minimum lease receipts due to the organisation are as follows:

Leases expiring:
In one year or less
Between one and five years		 2022
Land and
buildings
2021
Land and
buildings
£'000
£'000
56
-
98
-
154
-

20. PENSIONS

The organisation utilises four pension schemes: National Health Service (NHS) Pension scheme, Peoples Pension, Scottish Widows and the West Yorkshire Pension Fund. The West Yorkshire Pension Fund is a defined benefit scheme. Membership of the West Yorkshire Pension Fund was closed to new employees with effect from 31 March 2012. We have a number of TUPE staff who are members of the NHS Pension Scheme.

NHS Pension Scheme

The NHS Pension Scheme is a multi-employer defined benefit scheme. The scheme is unfunded. It is not possible to identify the share of underlying assets and liabilities belonging to individual participating employers and, due to the nature of the scheme, the income and expenditure account charge for the period under FRS102 represents the employer contribution payable.

Employer contributions were made at the rate of 14.38% during the accounting period. Payments to the scheme in the period amounted to £180k (2021: £175k). Members’ contributions are banded according to earnings. The scheme is subject to full valuations every four years (previously every five years). The last valuation took place as at 31 March 2017. Between valuations, the Government Actuary provides an update of the scheme liabilities on an annual basis. The latest assessment of the liabilities of the scheme is contained in the scheme actuary report, which forms part of the annual NHS Pension Scheme (England and Wales) Resource Account, published every October. These accounts can be viewed on the NHS Pension Agency website at www.nhspa.gov.uk.

The People’s Pension auto enrolment pension scheme

Contributions were made at 3% during 2021-22. The total payments to The People’s Pension auto enrolment pension scheme during the period were £32k (2021: £18k).

Scottish Widow auto enrolment pension scheme

Contributions were made at 3% and 7% (7% for the small number of members of the Scottish Widow Group Personal Pension that preceded the auto enrolment scheme). The total payments to the Scottish Widow auto enrolment pension scheme during the period were £1,659k (2021: £515k).

West Yorkshire Pension Fund

The West Yorkshire Pension Fund (WYPF) is a multi-employer scheme with more than one participating employer, which is administered by the City of Bradford Metropolitan District Council under the regulations governing the Local Government Pension Scheme (LGPS), a defined benefit scheme. Triennial actuarial valuations of the pension scheme are performed by an independent, professionally qualified actuary using the projected unit credit method.

49

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Contributions

The employers’ regular contributions to the WYPF by St Anne’s for the year ended 31 March 2021 at 37.6% of pensionable pay were £577k (2021: £2,068k). The employers’ contribution rate has been fixed at 37.6% of pensionable pay for the year ending 31 March 2021. Employees’ contribution rates have been fixed at rates between 5.5% and 8.5% dependent on salary levels.

As the scheme is closed to new members, under the projected unit method of valuation, the current service cost will increase as the members of the scheme approach retirement.

During the financial year 2021/22 the vast majority of the active membership of the scheme will be removed from the WYPF and transferred to the Scottish Widows scheme, this will therefore have a significant reduction in the contributions in the 2021/22 financial year.

Assumptions

The major assumptions used by the actuary in assessing scheme liabilities on an FRS 102 basis were:

31 March 31 March 31 March 31 March
2022 2021 2020 2019
% per % per % per % per
annum annum annum annum
Rate of increase in salaries
2.15		 2.95 2.15 2.00
Rate of increase in pensions in payment 3.0 2.7 1.9 2.1
Discount rate 2.7 2.1 2.3 2.5
Inflation assumption - RPI - - - 3.2
Inflation assumption - CPI 3.0 2.7 1.9 2.1

Mortality assumptions

The post retirement mortality assumptions are based on the recent actual mortality experience of members within the Fund and allow for expected future mortality improvements. The sample life expectancies at age 65 resulting from these mortality assumptions are:

2022 2021
% per annum % per annum
Retiring today:
Males 21.8 21.9
Females 24.6 24.7
Retiring in 20 years:
Males 22.5 22.6
Females 25.7 25.8

50

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Amounts recognised in the Statement of financial position
Present value of funded obligations
Fair value of plan assets
Net pension liability
Amounts recognised in surplus or deficit
Current service cost
Past service cost
Amounts charged to operating costs
Interest on net defined benefit liability
Amounts charged to other finance costs
Amounts recognised in other comprehensive income
Actuarial gains on liabilities
Actuarial gains / (losses) on assets
Net amount recognised in other comprehensive income
Changes in present value of defined benefit obligations:
Opening defined benefit obligation
Current service cost
Interest cost
Actuarial (gains) / losses on liabilities
Benefits/transfers paid
Member contributions
Closing defined benefit obligation		 2022
£’000
2021
£’000
(106,981)
(118,784)
106,107
98,417
(874)
(20,367)
2022
£’000
2021
£’000
236
1,785
-
-
236
1,785
416
316
416
316
2022
£’000
2021
£’000
10,859
915
8,449
(9,021)
19,308
(8,106)
2022
£’000
2021
£’000
118,784
95,054
236
1,785
2,441
2,163
(10,859)
21,851
(3,659)
(2,397)
38
328
106,981
118,784

51

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

Reconciliation of opening and closing balances of the fair value of scheme assets:

Reconciliation of opening and closing balances of the fair value
of scheme assets:
Opening fair value of assets
Interest income on scheme assets
Actuarial gains on assets
Contributions by employer
Member contributions
Net benefits paid
Closing defined benefit obligation		 2022
£’000
2021
£’000
98,417
79,630
2,289
1,847
8,449
16,692
573
2,317
38
328
(3,659)
(2,397)
106,107
98,417

Major categories of plan assets as a percentage of total plan assets:

Major categories of plan assets as a percentage of total plan
assets:
Equities
Property
Government Bonds
Corporate Bonds
Cash
Other
Actual return on plan assets		 2022
2021
79.8%
78.9%
4.0%
4.0%
7.4%
9.0%
4.8%
4.8%
2.9%
1.3%
1.1%
2.0%
100.0%
100.0%
2022
£’000
2021
£’000
8,991
18,010

Admission Agreement for admission to West Yorkshire Pension Fund

In connection with a contract between City of Bradford Metropolitan Council and the organisation, an agreement for admission to a new section of WYPF was entered into with effect from 20 December 2011. The agreement is specific to eligible staff transferred to St Anne’s by virtue of the contract and will terminate on the expiry or earlier termination of the contract. This section of the WYPF was fully funded at the start of the agreement. Subject to the organisation complying with specific clauses in the agreement, any deficit relating to this section of the fund will be subsumed by the council. Following the scheme valuation as at 31 March 2021, employer contributions of £11k were required for the year ending 31 March 2022.

Due to the subsumption arrangements in place, assets and liabilities relating to this section of the WYPF have not been included in the organisation’s balance sheet.

52

Company No 1089026

ST ANNE’S COMMUNITY SERVICES

The McCloud judgement

In December 2018, the Court of Appeal ruled that the transitional protection offered to some members of public sector pension schemes as part of reforms to those schemes amounted to unlawful discrimination, as a result an allowance should be made for the McCloud Judgement in accounts, however the allowance is highly dependent on the salary increase assumption. As the assumed rate of CPI for St Anne’s salary increases is less than CPI, McCloud will not have an impact and no allowance is therefore included in these financial statements.

21. RELATED PARTY TRANSACTIONS

The organisation paid £45k (2021: £22k) on behalf of St Anne's Trading Ltd (see note 10). St Anne's Trading made a Gift Aid Distribution of profits to St Anne's Community Services of £2k (2021: £42k). There were no other related party transactions in the year. The amount due from St Anne's Trading Ltd to St Anne's Community Services at the year-end was £74k (2021: £29k).

22. CATEGORIES OF FINANCIAL ASSETS AND LIABILITES

Financial Assets at amortised cost
Rent and Service Charges receivable
Invoiced Debtors
Other debtors
Accrued Income
Financial liabilities at amortised cost
Trade creditors
Other creditors
Deferred income - revenue grant
Deferred capital grant
Accruals and deferred income
Other taxation and social security
Pension contributions		 2022
2021
£'000
£'000
551
371
3,633
1,710
152
230
162
163
4,498
2,474
1,884
1,530
420
604
-
242
247
245
2,512
2,004
536
1,006
167
279
5,766
5,910

53