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2025-03-31-accounts

ANHEDDAU CYFYNGEDIG

(Limited by Guarantee)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

(Company Registration Number 2380151) (Charity Registration Number 701697)

ANHEDDAU CYFYNGEDIG

LEGAL AND ADMINISTRATIVE DETAILS

The Trustee Directors (hereafter referred to as “Trustees”) present their report and audited accounts for the year ended 31 March 2025. This also constitutes the Directors’ Report as a combined document.

Reference & Administrative Details

Charity Registration Number 701697 Company Registration Number 2380151 Registered and Principal Office 6 Llys Britannia Parc Menai Bangor GWYNEDD LL57 4BN Bankers HSBC plc 24 Castle Square CAERNARFON LL55 2NB Auditors Williams Denton Cyf Glaslyn, Ffordd Y Parc, Parc Menai BANGOR LL57 4FE Accountants Champion TLL Accountants Ltd 7 – 9 Station Road PRESTON PR4 6SN Solicitors Aaron & Partners 5-7 Grosvenor Court CHESTER CH1 1HG

Directors (Trustees)

The directors of the charitable company are also its Trustees for the purpose of charity law. The Trustees who served during the year and the present members are:

Brian Merfyn Jones – Resigned 31 July 2025 Jonathan M Walsh (Treasurer until Feb 2025) – Deceased 17 February 2025

Margaret C Flynn (Chair 2026)

Sue James (Vice Chair 2026, Treasurer 2025) Claire Thomas-Hanna John Idris Jones – appointed 2 April 2024

Senior Staff Members as at 31 March 2025

Claire Higgins (CEO and Chief Finance Officer) Nia Prendergast (Strategic Director for Resources, Deputy CEO and Company Secretary)

ANHEDDAU CYFYNGEDIG TRUSTEES’ REPORT

Structure, Governance and Management

Anheddau is a Registered Charity and a Company Limited by Guarantee, governed by its Memorandum and Articles of Association.

Any adult can apply to become a Trustee of the charity. There is an application process and approval onto the Board is endorsed by Trustees at a Council of Management Trustee Board meeting. Trustees give of their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related third party transactions are disclosed in note 2 to the Accounts. Trustees are required to disclose all relevant interests and register them with the Chief Executive in accordance with the Charity’s policy and withdraw from decisions where a conflict of interest arises.

The current Trustees are:

The Board makes the final decisions and ratifies all policies by which the organisation is bound. The full Trustee Board meets quarterly in addition to the Annual General Meeting. The Board’s work is supported by three sub-committees; Finance Support Group, Corporate Services and Service Delivery and Safeguarding.

The day-to-day management of Anheddau is delegated by the Trustees to the Chief Executive. Duties are carried out as appropriate by the other managers within Anheddau.

The Chair, CEO and Strategic Director for Resources meet monthly to discuss operational activity. The CEO prepares a regular update for Board members keeping them sighted on activity between formal meetings.

The Head Office, which is also the Registered Office, is in Bangor, Gwynedd. Anheddau also has satellite offices in Dolgellau, Bangor, Wrexham and St Asaph.

Objectives, Activities and Strategies to Achieve its Aims

The objectives of Anheddau are to promote the support of people in need by reason of disability residing primarily or temporarily in Wales, to help them to become more independent and to lead fulfilled lives. Anheddau currently works in the Counties of Gwynedd, Ynys Mon, Conwy, Denbighshire and Wrexham.

Principal Funding Sources

Anheddau’s funding is received by way of Service Level Agreement payments from five North Wales Local Authorities. Funding is also received from BCUHB in respect of individual support which is funded by Continuing Health Care.

Anheddau works within the footprint of the North Wales Regional Partnership Board and manages 24 hour community based services as well as community support contracts, in the geographical area of Ynys Mon, Gwynedd, Wrexham, Conwy and Denbighshire.

Since everyone has different needs, the type of support offered varies. Anheddau assists people to live full, active and rewarding lives within their communities.

1

ANHEDDAU CYFYNGEDIG

TRUSTEES’ REPORT – Continued

Achievements and performance

Some of the services Anheddau currently provides are:

This support may range from a few hours a day to 24 hours depending on a person’s assessed needs.

There are aspects of some service delivery for which staff have received specific training in order to ensure they can undertake such tasks to support each individual.

Although everyone Anheddau supports is unique there are core elements that are fundamental for leading a fulfilled life. That is, being part of a community, having relationships, having opportunities to take part in activities or education, being able to make choices, able to demonstrate some control, being respected and being treated as individuals are paramount.

The key to Anheddau’s approach for supporting individuals in achieving health and wellbeing and independence is involving them in identifying what matters and what’s important.

Anheddau trains staff to use Positive Behavioural support approaches and promotes Active Support in encouraging individuals to take part in activities at home and in the community. Anheddau tailors support so it is person centred and builds on people’s skills and preferences. Participation and contribution are important elements of self-esteem. Anheddau has learned that by giving a person the opportunity to try activities and hobbies, or develop their interests, keeps people fit, mentally alert and facilitates self-expression. Encouraging and supporting individuals to engage in education and training nurtures the development of skills and talents and enables each to show ‘what they can do.’

A person’s own linguistic, cultural and religious identity is paramount. Anheddau works with the individual and their families to design support plans which captures how we can ensure these are respected and celebrated. Individuals are supported to attend appointments with health professionals. Communication and collaborative working is essential for a holistic approach to supporting each individual.

Claire Higgins is the Responsible Individual. Sue Hart was the Registered Manager between April 2024 and August 2024 when she commenced a Service Manager role. Between August 2024 and 31st March 2025 there were two Registered Managers; Sharon Burke and Bethan Edwards Newport from August 2024. They were supported in the day to day management of service delivery by a team of managers, including Service Managers and House Managers.

Quarterly visits to services are conducted by Claire Higgins to talk to the people being supported and to maintain oversight of the management, quality, safety and effectiveness of the service at all times. The Registered Managers have allocated levels of managers to manage the day to day operations.

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ANHEDDAU CYFYNGEDIG

TRUSTEES’ REPORT – Continued

The managers spend time with individuals and staff and are present to oversee the efficient running of the support provided. They are well known to the individuals and are knowledgeable about their support plan requirements.

Managers from other services undertake unannounced visits to ensure consistency. The focus on all visits from management is to review the quality of support and compliance against regulation.

Reports from each tier of management are submitted on a monthly basis and this information is collated on a quarterly basis for the Responsible Individual, Registered Managers, and Trustees.

The core values of Anheddau are ‘Commit, Empower, Excel’. The values are embedded in the mission statement and apply equally to how we interact with our supported individuals as they do to employees.

Values and behaviour make the mission statement come alive and as a result they are embedded and reinforced at every opportunity such as core training, performance reviews, staff council, the monthly staff newsletter, video briefings, Podcasts and Anheddau’s Behaviour Framework.

Anheddau strives to provide high quality, empowering, and compassionate care and support, adopting the principles of Positive Behaviour Support and least restrictive practices in order to nurture the desired culture. Anheddau’s Board and Senior Leadership Team recognise their roles in influencing and shaping the development of the Culture.

Anheddau aims to ensure that all its employees enter positive, welcoming and thriving work environments. A significant element of developing and supporting the culture relates to managing people. It recognises the strong link between how staff are managed and what those receiving care and support say about their experience.

Training is a critical component of ensuring the workforce is skilled and competent. This year training returned to face-to-face and additional content was added to enhance the workforce’s knowledge base.

Registration of the workforce is a central feature of training. Anheddau’s dedicated qualifications team ensures that staff are registered with Social Care Wales and attaining their Qualifications.

Key Risks:

The Board has undertaken a full assessment of the risks to which Anheddau may be subject. This includes, loss of income, failure to safeguard, health and safety issues and changes in legislation. A risk management strategy is in place which identifies the risks and sets out methods and procedures by which they may be minimised and dealt with should they arise.

Financial Risk

Anheddau operates in a competitive market and relies on commissioners' funding. As commissioners’ budgets are tightened, surplus is reduced and, as a consequence, Anheddau has increased monitoring to ensure quality is not compromised. This year has been particularly challenging despite the growth due to the programme of development with a range of one-off costs.

Recruitment challenges have led to investment in overseas workers and application to the Home Office for certificates of sponsorship. The recruitment was required because of managers being required to work covering shifts resulting in unaccounted expenditure and enhanced costs.

A significant proportion of annual leave was taken in the last quarter further exacerbating the need for overtime and adding a further financial burden.

3

ANHEDDAU CYFYNGEDIG

TRUSTEES’ REPORT – Continued

Returning to face-to-face training ensured improved compliance plus additional training expectations and an increased need for bespoke training. This has resulted in financial costs that are unfunded by commissioners.

Anheddau operates a Human Resources and Payroll system Iris HR and Earnie. The introduction of Cascade is planned to ensure improved reporting following a period where accounts were unable to be produced due to a system problem.

Anheddau recognises the implementation of the increased Employer Contributions and Real Living Wage is a continuing risk factor since the percentage increase from the Local Authorities does not cover the required amounts. Addressing this shortfall in funding will be managed through a programme of efficiencies which will be overseen by Finance Sub Group. This efficiency work will look to reduce expenditure and targeted work will be done with commissioners in negotiating increased fees.

Safeguarding Risk

Another key risk Anheddau faces hinges on the availability of suitably trained staff and in ensuring that safeguarding and the reporting procedures which surround it are embedded in their everyday practice. Anheddau takes this responsibility seriously and has strengthened the training and reporting mechanisms.

Safeguarding is the responsibility of everyone who comes into contact with a vulnerable person. If capacitated the supported individual is encouraged and supported to make the relevant decisions.

Additionally, people who work with vulnerable groups must be alerted to the possible indicators of abuse and act to protect them from harm. Anheddau embeds the principles and practical awareness of Safeguarding in its core training programme and annual refresher. Staff are asked to demonstrate their understanding of safeguarding during the probation period.

Capacity Risk

Anheddau’s growth had resulted in increased pressure within a range of roles within the organisation. A review determined the need to strengthen key roles to ensure capacity to grow was maintained without compromising on quality of service delivery. Structural changes have been implemented and are being embedded.

Capacity in service delivery has been addressed through recruitment of overseas workers.

Key successes:

4

ANHEDDAU CYFYNGEDIG

TRUSTEES’ REPORT – Continued

Key Performance Indicators

Anheddau measures key performance indicators (KPIs) to help assess the impact the Charitable Company makes and its effectiveness. The following KPIs are captured as part of our day-to-day regulatory requirements and recording processes:

requirements and recording processes:
Key Performance Indicator 2025 2024
Average number of service users supported in the year 125 121
Approximate number of care hours provided in the year 450,112 414,076
Average number of employed people (head-count) 398 360
Number of complaints received 5 3
Number of compliments received 14 2
Outcome of regulatory inspections – average assessment Excellent Good

5

ANHEDDAU CYFYNGEDIG

TRUSTEES’ REPORT – Continued

Financial Review

Anheddau manages its finances via the scrutiny of the Finance sub Group of the Trustee Board which reviews the financial viability of all services quarterly. This Group comprises the Treasurer, CEO, Finance Manager and external professional accountancy support from Champion TLL Accountants. The Strategic Director for Resources joined FSG in November 2025.

During the year the charity had a deficit of £703,773 (2024 deficit of £154,333). Unrestricted reserves now stand at £1,091,416 (General fund balance) after segregating funds relating to unrestricted fixed assets of £49,432 and restricted fixed assets of £68,750. The detailed results and closing balances are shown on the Statement of Financial Activities and Balance Sheet respectively.

Reserves Policy

In accordance with Charity Commission requirements, all charities should set a reserves target to help ensure sustainability, having assessed the risks facing the Charity (see risk management section, above).

Anheddau needs reserves for the following reasons:-

The view of the Trustees is that Anheddau needs sufficient reserves to cover the Charity’s activities for a period of at least three months. At the year end, approximately 1.1 months’ general funds are available. See note 10 to the Accounts for further details.

The reserves policy shall inform other spending decisions, which must be examined having regard to their impact on it.

Investment Policy

The Trustees have a policy of depositing cash held in longer-term accounts where a higher rate of interest can be achieved, whilst ensuring a segregation of assets between various banks to protect funds under the Financial Services Compensation Scheme (FSCS) and ensuring cash is readily available for short-term requirements, without the need to incur any operational financing costs.

Fundraising

Less than 1% of Anheddau’s income is generated by fundraising. This is entirely confined to grant based donations. Anheddau undertakes no public fundraising and there have been no complaints received regarding its fundraising activities. Anheddau does not engage the services of fundraising consultants

Public Benefit

In meeting the objects of the Charity the Trustees have considered the Charity Commission guidance on public benefit and are satisfied that the activities undertaken during the year have provided significant benefit to the section of the general public, being as described in the guidance of being in need due to ill-health, disability, age or other disadvantage. See key successes for details.

6

ANHEDDAU CYFYNGEDIG

TRUSTEES’ REPORT – Continued

Plans for Future Periods

The main aim for Anheddau for the immediate future is to ensure our work continues to meet our purpose, ensure that our actions (productivity) are undertaken to support the interests of the individuals we support and develop the increased ability to evidence outcomes individuals have achieved with our support.

Anheddau has applied for and won a number tenders during the year. Each tender opportunity and their potential implication is considered as they arise. Anheddau’s aim is to maintain continuity of service for the supported individuals whilst ensuring the sustainability of financial and people resourcing.

Going concern

The Trustees have carefully considered the financial performance and position of the Charity for the year ended 31 March 2025. They acknowledge the significant operational and financial challenges experienced during the period and acknowledge reported a deficit of £703,773 for the period. The Trustee position is clarified further in the Notes to the Account – Note 13.

Statement of Trustees’ Responsibilities

The Trustees (who are also directors of Anheddau Cyfyngedig for the purposes of company law) are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (UK GAAP).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources including the income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

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

In so far as the Trustees are aware, there is no relevant audit information of which the charitable company’s auditors are unaware and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

7

ANHEDDAU CYFYNGEDIG

TRUSTEES’ REPORT – Continued

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

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

This report was approved by the Board on .........15th June 2026............. and signed on its behalf by:

...................................................... ...................................................... Claire A Higgins (Company Secretary) M Flynn (Trustee / Chair)

8

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

ANHEDDAU CYFYNGEDIG

Opinion

We have audited the financial statements of Anheddau Cyf (the 'charitable company') for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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

9

information, we are required to report that fact. We have nothing to report in this regard.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

ANHEDDAU CYFYNGEDIG – continued

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 the light of the knowledge and understanding of the charitable 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 where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

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

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

Our 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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charitable company and the environment in which it operates, we considered the risk of acts by the charitable company that were contrary to applicable laws and regulations, including fraud, and designed audit procedures in response to this risk. We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, Companies Act 2006 and Charities Act 2011.

10

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

ANHEDDAU CYFYNGEDIG – continued

Our tests included:

There are inherent limitations in the audit procedures described above. The more removed that financial transactions are from the laws and regulations, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of trustees and management, and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those resulting from errors, as fraud may involve deliberate concealment or collusion.

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 Report of the Independent Auditors.

Use of our report

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

Martin Barrett FCCA (Senior Statutory Auditor) for and on behalf of Williams Denton Cyf Chartered Certified Accountants Statutory Auditors Glaslyn Ffordd Y Parc Parc Menai Bangor Gwynedd LL57 4FE

16 June 2026

Date: .............................................

11

ANHEDDAU CYFYNGEDIG

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING THE INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 MARCH 2025

Unrestricted Unrestricted Restricted Total Total
Notes Funds Funds Funds Funds
2025 2024
£ £ £ £
Income and endowments from:
Generated Funds
Investment Income
- Bank interest (UK) 29,474 - 29,474 15,580
Charitable Activities
Supporting People in the Community 2 11,021,337 - 11,021,337 9,701,454
__ ______ __ __
Total 11,050,811 - 11,050,811 9,717,034
__ ______ __ __
Expenditure on:
Charitable Activities:
Supporting People in the Community
- Wages & travel 10,852,350 - 10,852,350 9,182,897
- Training and recruitment costs 77,266 - 77,266 55,931
- Food & provisions 55,891 - 55,891 49,302
- Property costs 2 142,641 - 142,641 82,550
- Office & insurance costs 2 428,931 - 428,931 333,611
- Bank charges & interest 4,580 - 4,580 8,457
- Depreciation 4,710 - 4,710 5,353
- Audit & accountancy 13,309 - 13,309 12,803
- Professional fees 174,906 - 174,906 140,463
__ ______ __ __
Total 11,754,584 - 11,754,584 9,871,367
__ ______ _ __
Net income/(expenditure) (703,773) - (703,773) (154,333)
Gross transfers between funds 10 1,250 (1,250)
-		 -
Net incoming/(outgoing) resources for the year (702,523) (1,250) (703,773) (154,333)
Total Funds brought forward 1,843,371 70,000 1,913,371 2,067,704
__ ______ __ __
**Total funds carried forward *** 10 1,140,848 68,750 1,209,598 1,913,371

*** Part of the unrestricted funds relate to fixed assets (designated funds) as shown on the Balance Sheet.**

Comparative figures:

The only movement on restricted funds during the prior year was the annual £1,250 transfer to unrestricted funds. The comparative figures are summarised in note 12 to the Financial Statements.

The notes on pages 15 to 23 form an integral part of these accounts.

12

ANHEDDAU CYFYNGEDIG Charity Registration Number: 701697

BALANCE SHEET

AS AT 31 MARCH 2025

Unrestricted Restricted 2025 2024
Notes funds Funds Total Funds Total Funds
£ £ £
£
FIXED ASSETS
Tangible assets 3 49,432 68,750 118,182 122,892
______ ______ ______ _
49,432 68,750 118,182 122,892
______ ______ ______ _
CURRENT ASSETS
Debtors 4 809,970 - 809,970 849,321
Cash at bank and in hand 926,227 - 926,227 1,517,598
__ ______ _ _
1,736,197 - 1,736,197 2,366,919
CREDITORS:
Amounts falling due within
one year 5 (644,781) - (644,781) (576,440)
__ ______ __ _
NET CURRENT ASSETS 1,091,417 - 1,091,417 1,790,479
__ ______ __ _
NET ASSETS 1,140,848 68,750 1,209,598 1,913,371
__ _ __ __
RESERVES
Unrestricted reserves
- General 1,091,416 1,750,479
- Designated: Projects and Support
10		 - 40,000
- Fixed assets: Other 49,432 52,892
Restricted reserves (Land & Buildings) 10 68,750 70,000
__ _
1,209,598
__		 1,913,371
__

The accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 applicable to small companies.

The accounts were approved by the Board on ..............15th June 2026............ and signed on its behalf by:-

................................................

M Flynn (Trustee / Chair)

The notes on pages 15 to 23 form an integral part of these accounts.

13

ANHEDDAU CYFYNGEDIG

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2025

Notes
Cash flows from operating activities:
Cash generated from operations
1
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of tangible fixed assets
Interest received
Net cash provided by (used in) investing activities
Change in cash and cash equivalents in the reporting
period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the
reporting period
Analysis of changes in net funds
At 1.4.24
£
Net Cash
Cash at bank
1,517,598
__
TOTAL
1,517,598		 2025
2024
£
£
(620,845)
(139,842)
(620,845)
(139,842)
-
-
29,474
_
15,580
_
29,474
15,580
(591,371)
(124,262)
1,517,598
1,641,860
926,227
1,517,598
Cash Flow
At 31.3.25
£
£
(591,371)
926,227
_
_
(591,371)
926,227

14

ANHEDDAU CYFYNGEDIG

NOTES TO THE CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2025

1 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2025 2024
£ £
Net income/(expenditure) for the reporting period (as per the statement
of financial activities) (703,773) (154,333)
Adjustments for:
Depreciation charges 4,710 5,353
Interest received (29,474) (15,580)
Decrease/(increase) in debtors 39,351 (177,342)
Increase/(decrease) in creditors 68,341 202,060
______ ______
Net cash provided by / (used in) operating activities (620,845) (139,842)

1. Accounting Policies

a. Basis of Preparation

The accounts have been prepared under the historical cost convention (as modified by the revaluation of certain fixed assets), Financial Reporting Standard (FRS) 102, the "SORP 2015" for charities (FRS102 version), and Companies Act 2006.

Preparation of consolidated financial statements

The financial statements contain information about Anheddau Cyf as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 and Sub-section 24.13A of the Charities SORP (Charities Statement of Recommended Practice) 2015 from the requirements to prepare consolidated financial statements.

Investments in subsidiaries

Investments in subsidiary undertakings are initially recognised at cost, and subsequently at fair value

15

ANHEDDAU CYFYNGEDIG

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1. Accounting Policies - continued

b. Fixed Assets

Fixed assets are stated at cost and depreciated over their economic useful lives at the following rates:-

Computer hardware & software 25% reducing balance Office equipment & furniture 15% reducing balance Housing furniture 15% reducing balance Freehold land & buildings 2% reducing balance Leasehold Improvements Over the term of the lease

Individual purchases of £1,000 or less are not generally capitalised, but expended to the Statement of Financial Activities. A fixed asset register is maintained and items of a certain category (such as computers) may be capitalised even if below this value.

c. Incoming Resources & Funds

Income is accounted for once the Charity has entitlement to the funds, it is probable that the income will be received , and the amount can be measured reliably. The main sources of income are service level agreements from various authorities which are matched to the period they relate to. All income is derived in the UK.

Income with restrictions imposed is allocated to a restricted fund and matched with the expenditure. Capital grants are allocated to a Restricted Fund and released over the terms of the restriction.

Income has been split between the different incoming resources. All income (except bank interest) is shown as charitable activities.

d. Cash at Bank and in Hand

Cash at bank and in hand includes cash in hand, deposits held at call with banks, other short-term liquid investments and deposits with banks with longer-term fixed interest rates which are accessible if required.

e. Pension

The Charity operates a defined contribution group stakeholder pension scheme under Auto Enrolment where the contribution rate is a fixed percentage of qualifying pay. The Charity also continues to contribute to certain staff’s private pension schemes. The total contributions payable are disclosed in the notes to the accounts.

16

ANHEDDAU CYFYNGEDIG

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

1. Accounting Policies - continued

f. Operating Leases

Operating leases are charged to the Statement of Financial Activities as incurred.

g. Resources Expended

All expenditure is included in the Statement of Financial Activities in accordance with the accruals concept, where there is a legal obligation committing the Charity to the expenditure.

Charitable activities include expenditure associated with supporting people in the community. Support costs are included within charitable activities as analysed in the Statement of Financial Activities.

Governance costs include those costs incurred in the governance of the charity and those associated with constitutional and statutory requirements.

h. Support Costs

The general running costs of the Charity are detailed in the SORP and Notes to the Accounts. Since there is one charitable activity and no fund-raising activities category, it is not necessary to do any further allocation of support costs.

i. VAT

The Charity is not registered for VAT, as such the VAT element is added to the related cost, shown gross.

2. Statement of Financial Activities Notes

Statement of Financial Activities Notes
2025 2024
£ £
Income - Supporting People in the Community
Mental Health 195,261 184,343
Social Services 9,830,766 8,403,095
Supporting People 510,586 511,351
Client contribution and Client Monies 388,855 384,865
Domicilary Care Short Contracts 1,415 1,250
Local Health Board 88,042 209,224
Other Income 6,430 7,326
__ __
11,021,337 9,701,454
Expenditure
Property costs
Rent 108,711 60,582
Heat & light 33,930 21,968
______ ______
142,641 82,550

17

ANHEDDAU CYFYNGEDIG

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

2. Statement of Financial Activities Notes - Continued

2025 2024
£ £
Office and insurance costs
Printing, stationery & advertising 26,550 16,092
Insurances 27,850 24,401
Telephone 72,037 53,916
Photocopying costs 14,156 18,079
Sundries 25,673 20,862
Repairs & renewals 22,576 15,362
Subscriptions 15,906 9,976
Health & safety 18,793 18,719
Cleaning costs 16,642 15,177
Computer & software costs 188,748 141,027
______ ______
428,931 333,611
2025 2024
£ £
Depreciation 4,170 5,353
Auditor’s Fees: - Audit services 9,300 7,200

Trustees have not received any remuneration for their services during this year nor the prior year. Trustee expenses reimbursed during the year totalled £3,677 for expenses (2024: £2,104). This related to one Trustee (2024: one Trustee).

The full time equivalent number of staff (including relief staff) for the year was 283. Carers: 243 (2024: 224); Admin: 40 (2024: 32)

224); Admin: 40 (2024: 32)
2025 2024
£ £
Wages & Salaries 9,675,294 8,254,148
Social Security costs 842,741 663,870
Pension costs for 369 staff (2024: 356 staff) in scheme 198,960 154,923
__ __
10,716,950 9,072,941

The Trustees can confirm that five employees were paid in excess of £60,000 p.a. for this year (2024: three). Being £60k - £70k : three (2024: two), £80k - £90k : one (2024 : none); £120k - £130k: one (2024: one). This increased due to extra duties and number of days worked by key staff.

The remuneration of key management amounted to £295,729 for the year (2024 : £257,860).

18

ANHEDDAU CYFYNGEDIG

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

3. Fixed Assets

Land & Housing Computer
Office
Buildings
Furniture Hardware
Furniture
& Software
Cost/Valuation
£
£
£
£
Balance b/f
210,452
19,803
200,551
44,184
Additions
-
-
-
-
Disposals
-
-
-
-
__
_



Balance c/f
210,452
19,803
200,551
44,184





Depreciation
Balance b/f
96,640
18,545
195,276
41,636
Charge for the year
8,222
211
1,357
320
Eliminated on disposal
-
-
-
-





Balance c/f
99,462
18,756
196,633
41,633



___

Net Book Value
As at 31.3.25
110,990
38,559
397,184
2,228
As at 31.3.24
113,812
1,258
5,275
2,547		 Total
£
474,990
-
-
_
474,990
_
352,097
4,710
-
_
356,807
_
118,182
122,892

All fixed assets are used for charitable purposes. Land and Buildings includes freehold assets of £107,219 (2024: £109,407) and leasehold improvements of £3,771 (2024: £4,405).

4. Debtors - amounts falling due within one year

2025 2024
£ £
Trade debtors 655,290 707,290
Prepayments 83,946 84,659
Other debtors 70,734 57,372
_ _
809,970 849,321

19

ANHEDDAU CYFYNGEDIG

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

5. Creditors - amounts falling due within one year

2025 2024
£ £
Trade creditors 57,521 39,562
PAYE & NIC 213,563 167,952
Other Creditors and Accruals 373,697 368,926
_ _
644,781 576,440

Creditors include £102,308 (2024: £120,487) due to the Charity pension scheme at 31 March 2025.

6. Capital Structure

The charitable company is limited by guarantee and has no share capital.

7. Operating Lease Commitments

At 31 March 2025 the charity had the following non-cancellable operating lease commitments.

Expiring within one year
Expiring in two to five years
Expiring in more than five years		 Cumulative Commitment
2025
2025
Cars &
Land &
Equipment
Buildings
£
£
40,702
86,991
55,878
295,463
-
418,807
__
____
96,580
801,261		 Cumulative Commitment
2024
2024
Cars &
Land &
Equipment
Buildings
£
£
24,674
10,000
-
-
-
807,471
__
____
24,674
817,471

8. Related Parties

The charity is controlled by the members of the Council of Management, which are listed in their report. There were no related party transactions between the charity and its members.

20

ANHEDDAU CYFYNGEDIG

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

9. Analysis of Net Assets between Funds

Unrestricted Funds Unrestricted Funds
General/ Fixed assets Restricted Total
Designated Funds
£ £ £ £
Tangible Fixed Assets - 49,432 68,750 118,182
Current Assets 1,736,197 - - 1,736,197
Current Liabilities (644,781) - - (644,781)
______ ______ _ _
1,091,416 49,432 68,750 1,209,598
10. Analysis of Funds
Balance Income Expenditure Transfer Balance
at 1.4.24 31.3.25
£ £ £ £ £
Unrestricted Funds
- General 1,750,479 11,050,811 (11,751,124) 41,250 1,091,416
- Designated Projects 40,000 - - (40,000) -
- Fixed assets: Other 52,892 - (3,460) - 49,432
_ __ __ _____ __
1,843,371 11,050,811 (11,754,584) 1,250 1,140,848
Restricted Funds
- Land & Buildings fund 70,000 - - (1,250) 68,750
_ __ __ _____ __
1,913,371 11,050,811 (11,754,584) - 1,209,598

Unrestricted Funds

The general fund is used to further the objects of the Charity.

The designated fixed asset fund represents the net book value of fixed assets (per the balance sheet, after deducting the related restricted fund) which clearly do not represent ‘liquid’ funds.

21

ANHEDDAU CYFYNGEDIG

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

10. Analysis of Funds - Continued

The view of the Trustees is that Anheddau needs sufficient general funds / reserves to cover the Charity’s activities for a period of three to six months, and sufficient liquid reserves (i.e. cash, bank balances or other assets close to cash such as deposits) to cover the payroll and other costs for a period of four months. At the year end, approximately 1.8 months’ liquid reserves are available, and 1.1 months’ worth of general funds.

Restricted Funds

The land and buildings fund represents monies received to purchase specific fixed assets, released over the terms of the restrictions. A transfer is made from restricted funds to unrestricted funds each year to reflect the annual reduction in restricted assets.

The Comparative figures for the funds is as follows:

Balance Income Expenditure Transfer Balance
at 1.4.23 31.3.24
£ £ £ £ £
Unrestricted Funds
- General 1,889,458 9,717,034 (9,866,013) 10,000 1,750,479
- Designated Projects 50,000 - - (10,000) 40,000
- Fixed assets: Other 56,996 - (5,354) 1,250 52,892
_ __ __ _____ __
1,996,454 9,717,034 (9,871,367) 1,250 1,843,371
Restricted Funds
- Land & Buildings fund 71,250 - - (1,250) 70,000
_ __ __ _____ __
2,067,704 9,717,034 (9,871,367) - 1,913,371

11. Agency Transactions

During the year the Charity received Housing Benefit and other income on behalf of certain service users which was re-distributed to the relevant people in full.

The attributable amounts are not included within income or expenditure of the Charity for the year since the Charity only acts as Agent in relation to these amounts.

The amounts administered and excluded are as follows:

The amounts administered and excluded are as follows:
£ £
2025 2024
- Income received and distributed
(excluding Management Fees) (315,763) 273,583
- Net amounts awaiting distribution
at year end (within creditors) - -
- Amounts included in the service users’
bank account awaiting receipt (within debtors) 46,851 42,291
- Separate bank accounts held on
behalf of service users (not included in Charity Balance Sheet) 365,993 334,621

22

ANHEDDAU CYFYNGEDIG

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

12. Comparative Statement of Financial Activities

FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted Unrestricted Restricted Total Total
Notes Funds Funds Funds Funds
2024 2023
£ £ £ £
Income and endowments from:
Generated Funds
Investment Income
- Bank interest (UK) 15,580 - 15,580 5,930
Charitable Activities
Supporting People in the Community 2 9,701,454 - 9,701,454 8,035,443
__ ______ __ __
Total 9,717,034 - 9,717,034 8,041,373
__ ______ __ __
Expenditure on:
Charitable Activities:
Supporting People in the Community
- Wages & travel 9,182,897 - 9,182,897 7,648,604
- Training and recruitment costs 55,931 - 55,931 39,064
- Food & provisions 49,302 - 49,302 32,256
- Property costs 2 82,550 - 82,550 78,271
- Office & insurance costs 2 333,611 - 333,611 235,810
- Bank charges & interest 8,457 - 8,457 11,372
- Depreciation 5,353 - 5,353 6,210
- Audit & accountancy 12,803 - 12,803 12,638
- Professional fees 140,463 - 140,463 91,103
__ ______ __ __
Total 9,871,367 - 9,871,367 8,155,328
__ ______ _ __
Net income/(expenditure) (154,333) - (154,333) (113,955)
Gross transfers between funds 10 1,250 (1,250) - -
Net incoming/(outgoing) resources for the year (153,083) (1,250) (154,333) (113,955)
Total Funds brought forward 1,996,454 71,250 2,067,704 2,181,659
__ ______ __ __
**Total funds carried forward *** 10 1,843,371 70,000 1,913,371 2,067,704

*** Part of the unrestricted funds relate to fixed assets (designated funds) as shown on the Balance Sheet.**

23

ANHEDDAU CYFYNGEDIG

NOTES TO THE FINANCIAL STATEMENTS - continued

13. Going concern

The Trustees have carefully considered the financial performance and position of the Charity for the year ended 31 March 2025. They acknowledge the significant operational and financial challenges experienced during the period and subsequently into 2025/26.

At 31 March 2025, the Charity reported a deficit of £703,773 (2024: deficit of £154,333) and unrestricted reserves reduced to £1.14 million. Despite growth in income from local authority contracts to £11.0 million (2024: £9.7 million), increased staffing costs, recruitment pressures, National Insurance increases and Real Living Wage uplifts resulted in staffing costs increasing to £10.9 million. This represents approximately 98% of the Charity’s income.

The Trustees recognise that the operating environment across the social care sector is under pressure, with local authority funding uplifts not fully meeting operational and central services costs. During financial years 2024/2025 and 2025/26, the Charity also experienced increased overtime expenditure arising from recruitment challenges and the resulting need for managers to cover frontline shifts as overtime, together with increased training, compliance and operational delivery costs.

The Trustees and senior management implemented a detailed recovery and sustainability programme during 2025/26. This included a comprehensive review of staffing models across all services, tighter controls on overtime expenditure, strengthened expenditure controls across professional fees, recruitment and discretionary expenditure, reductions in training and the exit from surplus premises arrangements.

These actions have generated recurring annualised efficiency savings of approximately £1.25 million, equivalent to approximately 10% of the Charity’s annual operating cost base. Despite the staffing and employment-related costs during 2025/26, the Trustees estimate that the savings achieved substantially offset the majority of these increased costs and have contributed to improved performance during the second half of the financial year. Overtime expenditure reduced significantly during the final quarter of the financial year following the implementation of revised workforce management controls.

As part of the Charity’s cash management arrangements, HMRC liabilities increased during 2025/26, with PAYE and National Insurance arrears peaking at approximately £1.23 million. The Charity entered into a formal Time to Pay arrangement with HMRC, under which arrears are being repaid at approximately £0.1 million per month, with the final payment due in October 2026. All payments under this arrangement have been maintained on time and all ongoing PAYE, National Insurance liabilities arising since the arrangement commenced have been paid as they fall due. The outstanding amount owed at the point of preparing these financial statements is £0.4million.

The Trustees continue to closely monitor liquidity and cash flow performance through detailed rolling cash flow forecasts, monthly Board oversight meetings and regular review of management accounts. The forecasts prepared cover a period of at least 12 months from the date of approval of these financial statements and are updated regularly to reflect changes in operational performance, commissioner funding assumptions and cost forecasts.

The forecasts demonstrate that, following implementation of the recovery measures and fee uplifts noted below, the Charity is expected to maintain positive cash balances throughout the forecast period, although headroom remains tight until the HMRC liabilities are fully repaid.

Management accounts for the quarters ended 31 December 2025 and 31 March 2026 indicated an improvement in operational performance, with reductions in payroll pressures contributing to quarterly surpluses in both Q3 and Q4. The quarter ended 31 March 2026 generated a surplus of approximately £106k, although the Charity still reported an overall year-end deficit of approximately £0.35 million.

24

ANHEDDAU CYFYNGEDIG

NOTES TO THE FINANCIAL STATEMENTS - continued

The Charity has sustained active engagement with local authority and health commissioners regarding fee uplifts to reflect increased staffing, compliance and operational and central services costs. At the date of approval of these financial statements, average fee uplifts of approximately 5% for 2026/27 have been agreed with commissioners. Based on current annualised income levels, the Trustees estimate that these uplifts will generate additional recurring income of approximately £0.6 million to £0.7 million per annum, partially offsetting the increased staffing costs arising from legislative wage changes.

The Trustees have also considered downside scenarios, including the potential costs associated with restructuring or an orderly wind-down of operations if required. Estimated closure-related costs, including redundancy and pay in lieu of notice obligations, are estimated at approximately £1.4 million. No provision has been recognised within the financial statements in respect of these costs as the Trustees do not consider cessation or closure to be probable at the date of approval of the financial statements and continue to expect the Charity to trade as a going concern.

During 2025/26, the Board also continued to explore and evaluate potential future strategic partnership and group structure arrangements, including consideration of shared central service opportunities and longerterm sustainability options. These discussions remain subject to ongoing due diligence, legal and regulatory consideration and formal approval processes by the respective Boards and stakeholders. No final binding agreement had been concluded at the date of approval of these financial statements.

Having considered these factors, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

25