Company No: 02486564 People in Artion REPORT AND CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2023 Imiiiii *ACIXCGPT 2211212023 COMPANIES HOUSE A37 #s Muras Baker Jones Limited Chartered Accountants Wolverhampton People in Action INDEX For the year ended 31 March 2023 PAGE Report of the Directors (including Strategic report) Report of the Auditor5 Consolidated Statement of Finanoal Artivitie5 9-10 Consolidated Statement of Finanaal Position li Charitable Company Statement of Financial Position 12 Consolidated Statement of Cash Flows 13 Notes to the Finanaal Statements 14-29 People in Action REPORT OF THE DIREcfoRS The trustees are pleased to present their annual dlrectors. report together with the consolidated finantial statements of the tharity and its subgdiaries for the year ended 31 March 2023 which are also prepared to meet the requirefnents for a dirertors. report and accI￿ntS for Companies Act purposes. The financial statements comply with the Charities Act 2011. the Companies Act 2006, the Memorandum and Artides of Association, and Accounting and Reporting by Charities.. Statement of Recommended Prartice applicable to charities preparin9 their accounts in accordan￿ with the Financial Reportlng Standard applicable in the UK and Republic of Ireland (FRS 102). REFERENCE AND ADMINISTRATIVE DETAILS Charity name: People in Ath"on Charity number: 702885 Company number: 2486564 Principal offi￿.. St David's Way Berniuda Park Nuneaton CVIO 7SD DIRECTORS AND TRUSTEES The company is a registered charity and the director5 are its trustees for the purpose of tharity law and throughout this report are collertively refeffed to as the Oirettors. The Directors set out below have held office during the whde of the period from l April 2023 to the date of this Report unless othernise stated. MrJWHunt Ms S 3 MO￿1$ Ms L A Bonnar MrMJCox Mrs Y Hunter COMPANY SECRETARY J Reeson (resigned 12 August 2023) SENIOR MANAGEMENT TEAM C Hardy* R Odedra, D Page, J Reeson. C Robins and D Sumner. AUDITOAS: Muras Baker Jones Limlted Regent House Bath Avenue Wolverhampton WVI 4EG BANKERS: Barclays Bank PLC POBoxNo2 25 High Street Coventry Cvi 5QZ People in Action REPORT OF THE DIREcfoRS contlnued STRUCTURE. GoveRNANCE AND MANAGEMENT Governing document People in Ath"on 15 a company incorporated in En9land, limited by guarantee, governed by it5 Memorandum and Artides of Assooation dated 29 March 1990 as amended 26 July 2004. It was registered as a charity with the Charity Commission on 10 May 1990. The company currently ha5 six member5 who in the event of the company bw'ng wound up are required to contribute an amount not exceeding £25. Recruitment and appointment of Trustees and induction and trainin9 The directors of the company a￿ also charity trustees for the purposes of charity law and under the company's Artides are known as the Board of Directors (the Board). The Board can during the year appoint a member to fill a vacancy or as an addition (as long as the maximum number of 13 is not exceeded). Any such Board member shall only hold office until the next general meeting, but shèll be eligible for re-election. At each Annual General Meeting one third of Board membets, or the number nearest to one third. shall be subjed to reti￿rnent by rotats"on. A Board member who retires at an Annual General Meeting mayi if willingi be ￿-elerted. The minimum number of trustees shall not be le55 than three. In an effort to maintain a broad mix of skills. the make up of the Board is reviewed at least once a year and individuals will be approached to offer themselves for election or organisations will be asked to consider whether they have an individual who will be willing to do thos. When considering appointing trustees, the Board has re9ard to the requirements for any specialist skills needed. New Board members attend an induction meeting to familiarise themselves with the charity, the legal context within which it operates, and their responsibilities. All Board members are regularly uwjated with information pertinent to their role as directors and on matters relating to the operation of the charity. Oryanisation People in Action has five volunteer non-executive tru5teesldirectors, who along with the Senior management (as detailed on page l) a￿ responsible for the overall running of the organisation. This group forniulates the policy and direction of the organisation, and a￿ the key management team for the organisation. Three operation managers and a quality manager are responsible for the implementation of policy development on new services and the internal monitoring of current services. servi￿ Manager5 are directly resp)nsible for managing their individual services on a day to day basis. Subsidiary companies With the changing landscape of Social Gire in the Oxfordshire region PeO￿e in Action re-evaluated strategies and operations within Oxfordshire. This subsequently resulted in Charte￿Ille Care seeing out the contract with Oxfordshire County counal and exiting the care market in Oxfordshire. Whilst Content Care was not contrartually l)ound by any Counal, the identical decision was tsken by the board of Trustee'5. Once stability re-emerges in the Social Care settor, Content Care may look to resume operations in the private sector of the care market a￿a5 to be decided. People in Action Retail Limited continues operating a café in Bedworth and has resumed operations with no restrictions in place following the Covid-19 pandemic. The Mayor's Cafe works hand in hand with our on-slte Garden Projert. People in Action REPORT OF THE DIREcfoRS continued Employees The skill and commitment of our staff is the bedrock to our serVi￿S users. Development focuse5 on training and the achievement of qualification5 such as NVQ'S. With regard to disables persons, the Charity's policy is to give full and fair consideration to applications for employfflent by disabled people having regard to their particular aptitudes and abilities. As always. we express our appreoation to all our staff teams and supporters. Investment Pollcy The company reserves are invested in fixed assets funded by bank borrowings. Cash funds to meet day to day expenses are held in UK bank accounts. OBJECTIVES AND ACTIVITIES The objetts of the Company are to promote relief for adults with learning disabilities and mental health problems who need additional support. In planning our attivities for the year we kept in mind the Charity Commission's guidance on public benefit at our Trustee meetings. We provide a learning experience for people in a variety of environments. We can provide residential care which includes accornmodation, we operate supporting living services where peO￿e can be supported in their own homes and tenancies. we offer a respite service where people can take short b￿ak$, as well as community and leisure support. We operate two garden projetts where individuals can leam horticultural skills. an assessment service. and seNices for challenging and multiple dIsa￿'11t1es. ACHIEVEMENTS AND PERFORMANCE People in Action continues to be affected by the polits.cal envimnment. and being almost wholly Council related work has no leverage on the prices that can be achieved. and even less on cost increases imposed such as Minimum Wage, pensions, National Insurance and regulatory C05t increases in the year. eview of 2022123 Following on from an organisational restructure and absorption of senior Job mles from the previous year{s), the organisab'on has been able to move forward in making efficienoes in the way it operates as well as re-investing in its servitss, infrastnjcture. and staff teams. We have been able to offer an increased hourly rate for those staff members who hold an NVQ 2 Qualification in Health and Social Care further demonstratin9 our aim to be competitive in the Health and Social care recruitment market. With a new role introduced into People in Ath"on, ranvestment into our properties and services will ontinue working with our refurbishrnent plan for C￿￿ent and future period5. As referenced above, external factors and the socio-economic dimate wll constantly impact People in Action. Our Head Office, which has been our main operating base for over 20 years, the lease to this building will extx're in August 2023. Unfortunately. an agreement with our private landlord has not been reached, as the rent increase year on year over a 10-year period would impact the Charity's financial posltion. Thankfully the organisation has pre emptied thi5 and kept a c105e eye on "the commercial market. As such we have been able to outright purchase an office building in Nuneaton, two miles from our current building, by using our reserves which will futureproof the Charity for years . to come. The purchase was authorised by the Board of Trustees and permitted by the Charity Commission. Over the coming months a full refuth"shment of the building along with a relocation and surrender of current premises will tske pla￿. People In Actlon REPORT OF THE DIRECTORS continued on￿ again. we would like to thank all of our staff teams for a positive year and we look forwa rd to continuing our strides of progress for years to come. FINANCIAL REVIEW Details of the finanaal position of the Charity are set out in the following accounts which have been prepared in accordan￿ with the Charities SORP (FRS 102). The accounts comply with all the current statutory requirements and with the requirements of the Charity's governing instrument. Results for the year For the year ended 31 March 2023 total incoming group resources amounted to £11,173.252 decrease of 3Wo on the previous year. After deduthng resources expended of £10,587,999 net incoming resources amounted to £585,253 (2022 £886.302). other key performance indicators such as occupancy. staff hours and agency hours a￿ continually monitored. This checks actuallagency hours correlate with contracted hours and total incorne, to ensure best use of resources. Other key indicators a￿ health and well-being indicator5 and staff retention levels. People in Attion continues to work with vulnerable individuals in a variety of Circumstan￿5, from domiciliary support to residential accommodation, day services and work based opportunities in garden centre5 and our café. We take pride in offering in house training to all current staff and new starters. and we stand apart from the majority of providers in providing our staff with full ernployment contrarts as opposed to zero hour contracts evident elsewhere. We belheve in providing a quality Servi￿ to all customers and our valued staff and will through strategic analygs and initlatives resume our financial security in the near future. Reserves policy Details of General Reserves of the company are shown in Note 20 to the financial statements. The Trustee5 have examined the requirement for free reserves which are those unrestricted funds not invested in fixed assets, designated for specific purposes or otherwise committed. The directors onsider that given the high level of funds invested in fixed assets a policy based on free reserves is not appropriate. It is the policy of the charity to maintain a general fund reserve that equates to ten percent of the p￿viOUS year's income l£1.2 million) to ensure sufficient funds are retained to meet any potential liabilities. Group General Reserves of approximately £4.9 million. exduding revaSuations, were held at 31 March 2023. PLANS FOR FUTURE PERIODS The Trustees along with the Director Team conts.nue to explore all opportunities for future growth and development of the organisation, which fit into the ethos of providing a quality service to those we support and the organisations strategy to attract, retain, develop, and promote the best people. Plans to ￿brand and relaunch Content Care to enable us to Capture new opportunities have been put on hold for the time being, as the landscape of care locally and nationally are ever changing. Continuing investment into our ServI￿S and staff teams is cruoal for the organisation. The purchase of a new Offi￿ building wth a move later in the year represents finanaal due diligence which will allow our office based staff teams to work more efficiently and grow our day opportunib'es and training programmes. People in Action REPORT OF THE DIRecroRS continued RISK MANAGEMENT The company carnes out an ongoing review of all major potential tisks to which it may be exposed. Senior management meet on a six weekly basis in order to discuss any matters that arise. Financial risks are managed by the preparation of budgets and monthly management accounts, together with appropriate control procedures. Other risks are managed by such procedures as health and safety reviews, customer care and best value reviews. STATEMENT OF DIRecTORS' RESPONSIBILITIES IN RELATION TO FINANCIAL STATEMENTS Charity and Company Law ￿quireS the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity at the end of the financial year and of its surplus or deficit for the finanoal year. In preparing those Financial Statements the Diretto￿ are required to.. select suitable accounting policies and then apFA y them consistenuy. make sound Judgements and estimates that are reasonable and prudent: and prepare the finanaal statements on the going concem basis unless it is inappropriate to presume that the company will continue in busine5S- The Dirertors are responsible for maintaining proper accounting records whith disdose'with reasonable accurary at any time the finanoal position of the company and which enable them to ensure that the financial statements comply with the Companie5 Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In accordance with company law. as the company's directors. we ￿rtify that: so far as we are aware, there is no relevant audit infomiation of which the company's auditors are unaware. and I as the direttors of the company we have taken all the steps that we ought to have taken in order to make our5elve5 aware of any relevan¢ audit information and to establish that the charity's auditors are aware of that infomation. TAXATION STATUS In the opinion of the Directors the charity is exempt from taxation in accordan￿ with the provision5 Of the Income and Corporation Taxes Att 1988. AUDITORS Mdssrs. Muras Baker Joneg Limited have siynified their willingnessito conkinue in office and a regolution to re-appoint them as Auditor5 will be proposed at the forthcoming Annual General Meetin4. Approved by the Board on 20 December'2023 and signed on its behalf by: JWHUNT Director INDEPENDENT AUDfTORS' REPORT TO THE MEMBERS OF PEOPLE IN ACTION Opinion We have audited the financial statefflewts of People in'Action (the'parent charltable company'l and Its subsidiaries (the 'group'l for the year ended 31 March 2023 which comprise Consoli¢Jated Statement of Flnancial Activities (inclu(fing Consolidated Income and Expenditure Account), the Consolidated ar￿ Parent Charitable Corrspany statement of Financial Position, the Consolidated Cash Flow Statement and the ￿lated notes to the financial Statements, including a summary of significant accounting policie5. The financial reporting framework that has been applied in their p￿paratIO￿ is èpplicable law and Unitsd Kingdom Accounting Standards, including Financlal Reportlng Standard 102 The Financial Reporting Standard applicable irb the UK and RepublK of Ireland {United Kingdom Generally Accepted Accountin9 Prarticel. In our oplnlon the finanual statements= glve a true and fair view of the state of the group's and parent charitable company's affalrs as at 31 March 2023, and of the gff)up's incoming reSoU￿S and applicabon of resources, Includlng Its Income and eXpeThjitu￿, for the year then ended; have been properly prepared In accordan￿ with Unlted Kirrfjdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the reqU1￿MentS of the Companies Act 2006 and the Chanties Act 2011. B?5is for opinion We tonducted our audit in accordarKe with Intemational StawKJards on Auditing (UK) IISAS IUKI} and applicable law. Our responsibilitie5 under those standards are further described in the Auditorfs responsibili￿e$ for the audit of the financial statements secknon of our rewrt. We a￿ irKlepenOent of the group and parent charitable company in accordance with the ethical"requirements that are ￿levant to our audit of the financial statements in the UK, Including the FRC'S Ethlcal Standard. and we have fulfilled our other ethic41 responsibilities in accordance with these reQui￿Ments. We believe that the athlit eviden￿ we have obtained Is sufftcient and appropriate to provide a basis for our opinion. Concluslons r•latlng to goln9 conr issue. Other information The trustees are ￿pOnsIble for the other information. The other information comprises the inforrnation ir￿l￿ded in the directors. annual report, other than the finanaal ststements and our audtorfs ￿pOrt thereon. Our opinion on the flnancial statements does not cover Ihe other information and, ex￿pt to the extent otherwise explicitly stated in our report we do not exp￿$5 a'yy fom of assurarKe cTh)éiusion thereon. In conneciion with our audit of Ithe financial ststements. our responsibility is to reod the other information and, in dolng so, constder whether the other Information is materially inconsistent with the financial statements or our knowledge obta1rned In the auijit or otherwise appears to be materially mis5tated.I If we identify suth material inconslstencies or apparent material misstatements, we are required to detemiine whether there is a material misstatement in the financial statements or a matenal misstatement of the other Informabtsn. If. based on the work we have perfomied, we conclude that the￿ is a material misstatement of this other information, we are reqUI￿d to report that fart. We have Tr)thing to report in this regard. Opinions on other matters prescvlbed by the Companies Art 2006 In our opinion, based on the work undertaken in the t¢)ur5e of the a￿lit. the information given in the dirertots ￿E￿Irt lincorporatirNJ the strategic report) for the flnancial year for which the financial statements are prepared is consistent with the financial statements- and the. strategic report and the dlrectors, report have'been prepared In accordance wlth applicable legal requirements. INDEPENDENT AUDJTORS. REPORT TO THE MEMBERS OF PEOPLE IN ACTZON CONTINIIED Matters on whith w• are required to report byiexception ' In the light of our knowledge and understandln9 of. the group and parent charitsble company and its envlronment obtained in the course of the audtt, we have not identified material misstatements in the strategic ￿port and the directors. report. We have nothsng to report in ￿pect of the folkjwing matters in relation to which the Companies Act 2006 and the Charities Act 2011 requi￿ us to report to you if, in our opinion.. adequate and sufficient accounting ￿CordS have not been kept by the po￿nt charitable company, or returns adequate for our audit have not been received ffom branches not visited by us.. or the Pa￿nt charltable company's financial statements are not in a9reement wlth the accountlng records and returns,. or ertain dI5closures of dlrectors. remuneration specified by law a￿ not made: or we have not received all the information and explanations we require for our audlt. Responslbillties of truste As explained more fully in the direcrors, responsi￿lit￿$ ststement set out on page 5, the trustees (who are also the d1￿CtorS of the tharitsble company for the purposes of company law) are ￿spOnSible for the preparation of the financlal statements and for being satisfied that they give a true and fair view, and for Such internal control as the trustees detem)ine is necessary to enable the wepardtion d financial statements that are f￿e from material fflisstatement. whether due to fraud or error. In p￿parIng the financlal statements, the trnstees are responsible for assessing the group's and pa￿rt charitable cofflpany's abillty to continue as a golng concem, disclosing, as applicable, matter5 related to 90in9 concern and using the 90iThJ con￿rn basis of accountrng unless the trustees either intend to liquidate the group or the parent charitable Company or to ￿ase operations, or have no realistic alternative but to do so. Audltorfs responslbllities for the audit of the financial st•tements We have been apw'nted auditor under the Companies Art 2006 and report in accordan￿ wlth this Act. odr objectives a￿ to obtain ￿asonable assuran￿ abodt whether the financial Sta￿Ments as a whde a￿ f& from material mlsstatement, whether due to fraud or error, and to issue an audltorfs report that includes our opinion. Reasonable assurance 15 a high level of assurance. buf Is not a guarantee that an audit conducLed in accordance with ISA5 IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material rf. individually or in the aggregate, they COLtld reasonably be expecied to Influence the economic decisions of user5 taken on the basis of these financial statements. 1rre9ularities, irKluding fraud, art Instart￿s ol non-compliarKe with lavis and regulations. We design prgcedu￿s in line with our responsibilitles, outlined above, to detect material misstatements in ￿spert of irre9ularities, including fraud. The extent to which our proce¢ju￿S are capable of detecttng irwularities, including fraud Is detaile¢J below: In Planningl and des19n1￿ our a￿lt ￿ests we identfy Ind assèss the risks of m finanoal statements, whether due to fraud or error. Our assessment of these ris terial inisstatement wlthln the I s includes consideration of the nature of the irwjustry and sector, the control environment and the chanty perforrnance along with the results of our enquiries of managemeAt about their own identification aThJ assessment of risks and Irregularities. In cofflmon with all audits under ISAS IUKI, we a￿ also required to perforni specific procedures to reswnd to the risk of management override. We also obtssned an urKlerstan¢Jing of the legal an¢J regulatory frameworks that the charitable company operates in, focusin9 on provisions of those laws and ￿gulationS that had a direct effect on the determination of material afflounts and disclosu￿5 in the fina￿la1 statements. The key laws and fftgulations we considered in this context included the UK Companies Att, Charities Art, UK tax legislation aThJ other laivs and regulations identifieij a5 rtsk areas identified from our discussions with management. We cgmmunicated relevant idenb.ried laws and regulations aTrJ potenb.al fraud risks to all engagement team members including intemal specialists. and remained alert to any indications of frnud or ntsn-compliance with laws arKI regulalions throughout the audit. After consideratyon of the abgve ri5k5 we then carried out audit proce¢1ffts includTrKJ the following.. perfom)Ing analytical procedu￿5 to identify any unusual or unexpected relationshlps that may indicate nsks of material m155tatement due to frdud,. INDEPENDENT AUDThORS' REPORT TO THE MEMBERS OF PEQPLE IN Acr1014 C014TINUED reading minutes of trustees meetings: reviewing torresponderbte with H M Revenue & Customs: enquiring of management aThJ revEwiThJ any CorreSpwder￿e with legal advisors conceming actual and potential litigation and daim5,' reviewing the financial statement disclosu￿$ and testin9 to supporting dcKumentation to assess compliance with provisions of relevant laws and regulations described as having a direct effert on thÈ financial stalernents,. In addressirrtj the risk of fraud through mana9ement override of controls, tesb.ng the appropriatene55 of )￿rnal entrfes and other alj¢Jstments- assessin9 whether the judgements made in maklng accounting estimates are indicative ol a potenb.al bkas- and evaluating the business rationale of any Significant transactions that are unusual or outside the nomal course of business. There are Inhe￿￿t 1Smitatgons in our audit Procedu￿ described aLKJve. The more removed that the law5 and regulatitsns are from financial transaeknons the les5 likely it is that we would bela￿a￿ on non-complian￿. Auditlng standards also lirnit the audit procedures requirecj to Identyfy non-cornp1ian￿ with law5 and regulations to enquiry of the trustees and other management and the inspertion of regulatory and legal corresponden￿, If any. Material misstatements that anse due to fraud can be harder to detect than tfw that anse from error a5 they may involve deliberate con￿alMent or collusion. A further destription of our responsibilities for the audit of the financial statements is located on the Financlal .Reportin9 Coundl's webslte at www.frc.or9.uk1audltors￿spon$1bIIttIe$. This description forms part of ow auditorfs port. Use of our report This report is made solely to the Charitable tompany's trustees. as a body. In accordance wlth Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken 50 that we might state to the charttable company's trustees those matters we a￿ reouired to state to them in an auditorfs ￿port and for no tsther purpose. To the fullest extent pemiiited by law. we do fiot ac￿pt or assume responsibility to anyone other than the charitable company and the charitable cornpany'5 trustees as a body, for our audit work. for this ￿POrt, br for the oplnlons we havé f(*med. Ollver Ros5 Bsc (Honsl FCA {Senior Statutrjry Auditor) For and on behalf or Muras Baker Jones Llmlted Clartered Accountsnts and btatutory Auditws Regent House i Bath Avenue Wolverhampton WVI 4EG 20 December 2023 People in Acti¢)n CONSOLIDATED'STATEMENT OF FINANCIAL ACTlVtTIES (INCLUDING CONSOUDATED INCOME AND EXPENDITURE ACCOUNT) For the year ended 31 March 2023 Total funds Total funds unrestricted 2023 un￿StriCted 2022 Notes INCOMING RESOURCES Incoming resources from generated funds Voluntary income: Donations and sundry income l Grants received Activities for generating funds: Fees for the provigon of care and nursing Income frorn cafe Interest received 34.648 33,596 277,783 7a 7b 506,022 160,633 646 167,858 20,538 Incoming resources from Charitsble activities: Grants and Fees for provision of care and accommodation 10,950.208 10,586.637 TOTAL INCOMING RESOURCES 11.173.252 11.565.317 RESOURCES EXPENDED Costs of generating funds Costs of generating voluntary income 16.428 14.580 Costs for the provision of care services 7a 29,390 554,794 Costs for the operation of cafe 7b 199.810 184,751 Goodwill amortisation 12 51,158 17,052 296,786 711,177 9.907.838 Charltable activitles 10,291,213 TOTAL RESOURCES EXPENDED 10,587,999 10,679,015 People in Action CONSOLIDATED STATEMENT OF FINANCIAL AcfIviTIES continued (INCLUDING INCOME AND EXPENDITURE ACCOUNT) For the year ended 31 March 2023 Total Funds Total Funds unre5trirted 2023 unrestritted 2022 Notes NET INCOMING/IOUTGOING) RESOURCES FOR THE YEAR 585.253 886,302 TOTAL FUNDS AT I APRIL 2022 RESERVE TRANSFERS 4,411,506 3,525,204 TOTAL FUNDS AT 31 Ma￿h 2023 19 4.996,759 4,411,506 The statement of finanoal activities indudes all gains and losses in the year.. All incoming resources and resources expended derive from continuing attivities. There was no restricted fund income or expenditure durin9 the year ended 31 March 2023. All funds relate to unrestricted funds. io People in Action CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 March 2023 Note 2023 2022 FIXED ASSETS Tangible Fixed Assets li 5.072.046 3,810,510 INTANGIBLE ASSETS Goodwill 12 51,158 5,072,046 3,861,668 CURRENT ASs￿s stocks 1,026 867,357 2.142.094 2,016 853, 135 2,816,395 14 15 Cash at Bank and in Hand 3,010,477 3,671,546 CREDITORS - AMOUNTS FALUNG DUE WITHIN ONE YEAR Bank Loans & Overdrafts All Other Creditors 16 17 50,862 1.907.158 49,583 1.894,048 1.958,020 1.943.631 NET CURRENT ASSETS 1,052,457 1,727,915 TOTAL ASs￿s LESS CURRENT LIABILITIES CREDITORS - AMOUNTS FALUNG DUE A￿ER MORE THAN ONE YEAR 6.124.503 5,589,583 18 (92.360) (142,693) NET ASSETS 1 6.032,143 5,446,890 Reprèsented by: RESERtrE FUNDS REVALUATION RESERVE 19 20 4,996.759 1,035,384 4.411,506 1.035,384 6,032.144 5,446,890 The financial statements were approved by the Board on 20 December 2023 and signed on its behalf ' by: HUNT Direttor Company Registration No. 02486564 People in Action CHARITABLE COMPANY STATEMENT OF FINANCIAL POSITION At 31 March 2023 Note 2023 2022 FIXED ASSETS Tangible Fixed Assets Investment in subsidiary li 13 5.070,534 3,807,979 5.070.534 3.807.979 CURRENT ASSETS Debtors due within one year Debtors due after one yeaF Cash at Bank and in Hand 14 14 1,302.592 1,302,744 l.P31,476 2.565.595 3.234,068 3.868,339 CREDITORS - AMOUNTS FALUNG DUE WITHIN ONE YEAR Bank Loans & Overdrafts All Other Creditors 16 17 50.862 1.933,217 49,583 1.858.929 1,984.079 1.908,512 NET CURRENT ASSETS 1,249,989 1,959,827 TOTAL ASSETS LESS cuRRE￿r UABIUTIES CREDITORS - Amoumfs FALLING DUE A￿ER MORE THAN ONE YEAR 6,320,523 5,767,806 18 (92,360) (142,693) NET ASSETS 6.228.163 5,625,113 RepresenteA by: RESERVE FUNDS REVALUATION RESERVE I 19 20 5,192.779 1,035,3841 4,589,729 1,035,384 6,228,163 5,625,113 The financial statements were approved by the Board on 20 t)ecember 2023 and signed on its behalf by.. JWHUNT Director Company Registration No. 02486564 12 People in Action CONSOLIDATED STATEMEPU OF CASH FL'OWS For the year ended 31 March 2023 2023 2022 Note Cash flows from operating activitie5 Surplus for the year 585,253 886,302 Adjustments for.. Depreciation of tangible assets Goodwill amortisation other interest re￿1vable and similar income Interest payable and similar charges Lossesl(gains) on disposal of tangible a55ets Accrued (income)lexpen¥es Changes in.. stocks Trade and other debtors Trade and other creditors 42.159 51,158 {20,538) 9.378 42.776 17,052 (646) 31,742 4.906 5,240 1 {67.7751 989 54,270 12,394 (1.077} 72,925 9,595 Cash generated from operations 667.288 1,068,816 Interest paid Interest received {9,3781 20.538 {31.7421 646 Net cash from operating activbties èash flows from investing a¢tlvlties Purchase of tangible assets Proceeds fmm sale of tangible assets 678.448 1,037,720 .{1,306,695) {7,458) Net cash used in investing activities (1,303,695) (7,458) Cash flows from financing activities Repayments of Secured bank loans {49.054) (1.078.550) Net cash from finanong artivities (49,054) (1,078,550) Net increasel(decrease) in'cash and cash equivalents Cash and cash equivalents at beginning of year '(674.301) 2,816,395 148,2881 2.864.683 Cash and cash equivalentg at the year end 15 2.142,094 2.816,395 13 People in Action NOTES TO THE FINANCIAL sfATEMENTS For the year ended 31 March 2023. STATEMENT OF COMPUANCE These financial statements have been prepared in compfiance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland,. ACCOUNTING POLICIES (a) BASIS OF PREPAIiATION The finantial statements have been p￿pa￿d in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Finanoal Reporting Standard applicable in the UK and Republic qf Ireland IFRS 102) {Charities SORP (FRS 10?}I, the Financial R'eportin9 Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The statement of financial ath"vities (SOFA) and balance sheet con501idate the financial statements of the charity and its subsidiary undertakn"ng. The results of the subsidiaries are consolidated on a line by line basis. People in Ath"on meets the definition of a public benefit entity under FRS 102. A55et5 and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accountirbg policy notes. The direetots have assessed whether the use of the going concern basis is appropriate and have considered pgs5ible events or conditions that Might cast significant doubt on the ability of the charity to continue a5 a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial Statements. In particular, the trustees have considered the d)arity's fO￿(aSt5 and projections and have taken account of pressuffes on income generatit)n. The trustees have concluded that thé charity has adequatè resources to coritinue in operational existence for the foreseealje future. The charity, therefore continues to,adopt the going contsrn basis in preparing its finanoal statements. (b) COMPANY STATUS The charity is a private companyi registered in England (company number 02486564), and is limited by guarantee. The members of the company are the trustees named on page l. In the event of the charity being wound up, the liatA'lity in respett of the guarantee is limited to £25 MeM￿r of the charity. (cl FUND ACCOUNllNG General Unrestrirted Fuods comprise accumulated surpluses on General Funds. They are available for use at the discretion of the Dirertors in furtherance of the charity's objettives. Designated Funds are those funds allocated from the General Fund for particular purpose5 or projects at the discretion, and with the approval, of the Direttors. Restricted funds a￿ those funds to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of management and support costs. 14 People in Action NOTES TLI THE FINANCIAL STATEMENTS For the year ended 31 March 2023 (dl INCOMING RESOURCES Voluntary income induding donab"ons. gifts. legaoes and grants that provide core funding or are of general nature are recognised where there is entitlement, certainty of receipt and the amount can be meaSU￿d with sufficient reliability. Such income is only deferred when: the donor specifies that the 9rant or donation must only be used in future accounting periods. or the donor has irnposed conditions vthich must be met before the charity has unconditional entittement. I Investment income islrecognised on a receivable basis. Income from charitable activities indudes income received under contract or where entitlement to grant funding is subject to specific performance conditions is recogni5ed as earned as the related services a￿ provided. Donated services and faalities are induded èt the value to the charity where this can be quantified. The value of services provided by volunteers has not been included in these finanaal statements. (e) RESOURCES EXPENDED Expenditure is ￿CognISed on an accruals basis as a liability is incurred. Expenditure includes irrecoverable VAT. which is reported as part of the expenditure to which it relates. Costs of generatipg funds comprise the costs asscKiated with attratting voluntary Income. CharitatAe expenditure cornprises those costs incurred by the charity in the delivery of its acb"vities and services. It includes both costs that can be allocated directly to such activities and those cost5 of an indirett nature necessary to support them. All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular artivity are allocated directly. others are apportioned on an appropnate basis. (f) CAPITAUSATION AND DEPRECIATION OF TANGIBLE FIXED ASSETS The cornpany will capitalise item5 of equipment where their expected useful life is more than one year. Tangible fixed assets are Initially recognised at cost which is the purchase price plus any direcuy attributable costs, and are subsequently measured at cost less accumulated depreciation and impaimient. Depreciation is calculated to write off the cost less estimated residual value of Fixed i Assets over their esthmated useful lives at theifollowing annual rates.. I Motor Vehicles 33% straight Line Equipment 33•A) Straighl ￿ne/20%/15￿/33vo reduang balan Mobile Home io% Strai9ht. ￿ne Short leasehold property is depreciated over the lease period. No depreciation is provided on Freehold or Long Leasehold Propertie5. It is the policy of the charity to mointoin its properties in a continual state of sound repair and to extend nd make improvements the￿t0 from time to time. Accordingly, thè Direttors consider that the lives of such properties are so long and residual values are so high that their depreciation is insignificant and immaterial. Any pemianent diminution in the value of 'such properties is charged to the Profit and L055 Account as appropriate. 15 People in ALtion NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 (g) GOODWILL Goodwill arising on the acquisition of subsidiary ulldertakings. representing the excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired. is capitalised and written off on a straight line basis over its useful economic life of 5 or 10 years. {hl IMPAIRMENT OF ASSETS At each reporting date the Company reviews the carrying value of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists the recoverable amount of the asset Is esb'mated in order to deterrnine ￿he extent of the impaiynent Ioss. The recoverable amount of an asset is the higher of fair value less costs to sell and value in use. Value in use is the present value of the future cash flows expected to be derived from the asset, or cash generating unit. The present value calculatson involves estimating the future cash inflow5 and outflows to be derived from continuing to use the a55et, and from its ultimate disposal, applyirbg an appropriate discount rate to those future cash flows. Where the recoverable amount of an asset is less that the carrying amount, an impairment loss is recognised immediately in profit or loss. An impairrnent loss recognised for all assets is revetsed in a subsequent period if. and only if, the reasons for the impaimient loss have ceased to apply. Impaiment losses are charged to profit or loss in administrab'on expenses. PENSION COSTS Contributions payable to pension schemes are charged to the Probt and Loss Account in the period to which they relate. ti) OPERATING LEASES Rentals payable under Operating Leases are charged on a straight line basis over the terms of the Lease5. INCOME Lncome arises from: 2023 2022 Provision of seNices Sale of goods Intfrest received Donations/5undry income Govemment grants received 10,950,208 10.815.238 167,858 437,964 20,538 646 34,648 33.596 277,783 11,173.252 11,565,317 16 People in Action NOT,ES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 OTHER OPERATING INCOME 2023 2022 Donations and Sundry income Grant income received 34.648 33,596 277,783 IWEREST PAYABLE AND SIMILAR CHARGES 2023 2022 On Bank Loans and Overdrafts 9,378 31,742 NET INCOMINGIIOUTGOING) RESOURCES FOR THE YEAR 2023 2022 These are stated after charging Depreciation of Owned Tangible Fixed Assets Depreciation of Leasehold Property {ProfitllLoss on disposal of Fixed Assets Auditors, Remuneration and other services Hire of Other Assets - Property Rentals Vehicles and Equipment I 2,733 39,426 3.350 39,426 4,906 24,000 374,411 62.429 24.500 453,057 62,429 17 1 People in Acti( NOTES TO THE FINANCIAL STATEMEKrs' ' For the year ended 31 March 2023 7a. INCOME AND COSTS FOR THE PROVISION OF CARE AND NURSING 2023 2022 Fees re￿iVed for the provision of care and nursing Other operating income 506,022 29,241 535,263 2.191 2,191 Cost of sales Administrative expenses 398,307 156,487 29,390 Expenditure incurred for the provision of care and nursing 29,390 554,794 Surplusl(Deficit) for the year {27, 199) (19.531) 7b. INCOME AND COSTS FOR THE CAFE 2023 2022 Café income Other operating income 167,8$8 12 167,870 160,633 9,738 170,371 Cost of sales Administrative expense5 60.058 139,752 56,133 128,618 Expenditure incurred on.. Cafe (199,810) (1'84,751) Deficit for the year {31.94U) (1'4,380) 18 People in Action NOTES TO THE.FINANCIAL STATEMENTS For the year ended 31 March 2023 ANALYSIS OF RESOURCES EXPENDED Voluntary income Charitable activities 2023 2022 Staff and Agency Supwrt Premises costs Provision and household expenses Legal and Professional Insurance Depreciation, (Pmfitl/Loss on disposals Motor and Travel costs Bank Interest Telephone Recruitment and Training General Repairs Office and Miscellaneous Bad debts 6.428 8.812.124 617,894 253,816 60.748 51.698 8.818.552 8,375.725 617.894 551,494 253,816 293,004 60,748 55.301 51.698 80.980 141,140 70.619 6,035 46.489 60,877 101,934 229,354 (61,515) 41,140 1 70.619 6,035 46,489 60.877 101,934 239,354 (61.515) 41,182 62,982 31,742 41,672 61,372 122,005 213,861 {8.902) 10.000 16.428 10.291.213 10,307,641 9,922,418 Staff an(J agency support COSts include £9,642 governance costs induded within charitable activities12022 - £9.8701- Legal and professional costs include E17,000 governance costs within CharIta￿e activities {2022 £15,000). Totsl £26.642 (2022 - £24,870). Resources expended for the provision of the subsidiaries care service5 and cafe are detailed separately in notes 7a and 7b. 19 People in Action NOTES TO TME FINANCIAL STATEMENTS For the year ended 31 March 2023 EMPLOYEE INFORMATION The average number of peryjns employed by the group during the year was as follows.. 2023 No 2022 No Management and Administration 388 417 The aggrsgate payroll costs of these person5 were as follpws: 202 2022 Wages and Salories Social Security Costs Other Pension Costs 7.795.401 655,439 139,601 7,826,532 639,974 142,616 8.590.441 8.609,122 The number of employees receiving emoluments In excess of £60.000 were:_ 2023 2022 No Taxable emolurnents band: £60,000 - £70,000 The employees whose emduments ex￿ed £60.000 during the year ended 31 March 2023 also had retirement benefits accruing under a defined benefit pension scheme. No Director ￿ceiVed any remuneration from the charity (2022 - £Nil}. The Key mpnageiiient team disd*d ort page I recelveq emol&ments of £368.918 duh'ng the year ended 131 March 2023. io. TAXATION The tharitable company is exempt from corporation tax on income and gains falling within section 505 of Taxes Act 1988 or Section 256 of Taxation of Chargeable Gains Art 1992, to the extent that these applied to the cliaritable objects. No tax charges have arisen in the charity. 20 People in Action NOTES TO,THE FINANCIAL STATEMENTS For the year ended 31 March 2023 li. TANGIBLE FIXED ASs￿s Motor vehides & mobile home GROUP Short leasehold property Freehold propertv Equipment Total COST: At l April 2022 Additions Disposals 575,470 3.593,813 1.303.695 72.758 231,032 4,473,073 1.303.695 At 31 March 2023 575,470 4,897,508 72.758 231,032 5,776.768 ACCUMUIJTED DEPRECIATION: At l April 2021 Charge for the year Disposals 364.731 39,426 71.772 247 226.060 2.486 662,563 42.159 At 31 March 2023 404,157 72,019 228.546 704,722 NET BOOK VALUE: At l Aqril 2022 410,739 3.593,813 1 4,912 3,810,510 At 31 March 2023 171,313 4,897.508 739 2.4B6 5.072,046 21 People In Action NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 TANGIBLE FIXED ASSEfs continued Motor vehicles & mobile home CHARtTABLE COMPANY Short leasehold property Freehold property Equipment Totsl COST: At l April 2022 Additions Disposals 575,470 3,593,813 1,303.695 64,444 228,715 4,462,442 1,303,695 At 31 March 2023 575.470 4,897.508 228.715 5,766,137 ACCUMULATED DEPRECIATION.. At l April 2022 Charge for the year Disposals 364.731 39.426 225.288 1.714 654,463 41,140 At 31 March 2023 404.157 227.002 695,603 NET BOOK VALUE: At l April 2022 210,739 3,593.813 3,427 3,807,979 At 31 March 2023 171.313 4.897,508 1,713 5.070,534 22 People in Action NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 12. GOODWILL ON CONSOUDATION COST At l April 2022 and 31 March 2023 448,332 AMORTISATION At l April 2022 Charge for the year 397.174 51,158 At 31 March 2023 448,332 NET BOOK VALUE At 31 March 2022 51,158 At 31 March 2023 The goodwill arose on the acquisition of Charterville Care at Home ￿Mited on 24 February 2012, the acquisition of Core Business & Community Support Ltd on 7 November 2014 and the acquisition of People in Action Retail Limited on 7 October 2015 15ee note 13). 13. INVESTMENT IN SUBSIDIARY COMPANIES 13A CHARTERVILLE CARE AT HOME UMrrED The Investment at 31 March 2023 in part represents the whole of the Issued Share Capital of CharteNille Care at Home ￿rnited. The CoM￿nY is registered in England (company number 040158981 and has its registered office at White knon Chambers. 44 High Street, Bedworth. Warwickshire, CV12 8NF. The subsidiary wa5 acquired on 24 February 2012, and was prirnarily used for the provigon of care services in Oxfordshire. Goodwill of £187,812 ar05e on consolidation between the fair value of the fixed assets acquired and the purchase price of £480.900 (see note 12). Net book value in note 12 at 31 March 2023 is £nil (2022 - £nil>. Income and expenditure of the subsidiary for the year ended 31 March 2023 is included in note 7a together with income and expenditu￿ of its own subsidiary¢ Content ca￿ Limited. Both companies ceased trading during the year. A summary of the balance sheet of Charterville Care at Home Limited at 31 March 2023 is shown below.. 2023 2022 Assets abilities 172,304 202,402 {1,216,005) (1,218, 1761 {1,043,701) {1.015.774) Represented by: Share capital Profit and loss account 1,002 1,002 (1,044,703) (1.016,776) Net Ilabilities {1.044.703) 11,015,774) 23 People Sn Action NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 13B PEOPLE IN A￿[oN RETAIL LIMtfED The investment at 31 March 2023 also indudes the whole of the issued share capital of People in Action Retail Limited. The company is ￿gIStered in England (company number 02908041) nd has its registered office at White knon Chambers, 44 High Street, 8edworth. Warwickshire, CV12 8NF. The subsidiary was acquired on 7 November 2014 and was used for the provision of consultancy services to facilitste care at home in Haddenham. The company ceased providing these seNices during 2019 and instead undertook to the Café in Bedworth which had been established by People in Artion. Goodwill of £89.998 arose on consolidation between the fair value of the fixed assets acqulred and the purchase Pri￿ of £90.000 (see note 12)- Net book value in note 12 at 31 March 2023 is £nil (2022 - £nil). Income and expenditure of the subsidiary for the year ended 31 March 2023 is included in note 7b. A summary of the balance sheet of the subsidiary at 31 March 2023 is shown below: 2023 2022 Assets Liabilities 62,184 {258.2821 45,257 {209,416) (196,098) (164.159) Represented by.. Share capital Profit and loss account (196,1001 1164,1611 Net liabilities { 196.0981 (164,159) 24 People in Action NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 13C CONTENT CARE UMITED During the year ended 31 March 2016, one of the Charity's subsidiaries. CharteThille Care at Home Limited, purchased the whole of the issued share capital of Content Care Limited. The company is registered in England {company number 05688399) and has Its regIste￿d office at White ￿on Chambers. 44 High Street, Bedworth. Warwickshire, CV12 8NF. The subsidiary was acquired on 7 October 2015 and is primarily used for the provision of care services in Oxfordshire. Goodwill of £170,522 ar05e on consolidation between the fair value of the fixed assets acquired nd the purchase price of £263,725 (see note 12). Net book value in note 12 at 31 March 2023 is Enil (2022 - £51.158). Income and expenditure of the subsidiary for the year ended 31 Marth 2023 is induded in note 7a aggregated with that of Charterville Care at Home Limited. A summary of the balan￿ sheet of the subsidiary at 31 March 2022 is shown below- 2023 2022 Assets Liakn'lities 104,043 (16,763) 104,367 117,815) 87,280 86,552 Represented by- Share capital Profit and loss account loo 87,180 loo 86,452 Net assets 87,280 86,522 13D CHARITABLE COMPANY COST At l April 2022 and 31 March 2023 570.900 IMPAIRMENT At l April 2022 Charge for the year 570,900 At 31 March 2023 570.900 NET BOOK VALUE At 31 March 2022 At 31 March 2023 25 People in Action NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 14. DEBTORS GnJup 2023 CharitatAe Company 2023 2022 2022 Trade Debtors Other Debtors and Prepayments Amount due from group undertaking 745,209 122,147 734.953 118,182 745,209 126,150 731.953 110,503 431,233 460.288 867,356 853.135 1,302,592 1,302,744 15. CASH AND CASH EQUIVALENTS Group 2023 2022 Cash and cash equivalents comprise the following: Cash at bank and in hand 2.142.094 2,816,395 16. BANK LOANS AND oVERDRA￿s The charitable company bank loans are secured. The loans total £143.222 {2022 - E192,276). 17. CREDITORS - AMOUNTS FALLING DUE wrrHIN ONE YEAR Group 2023 Charitable Company 2023 2022 2022 Trade Creditors Social Security Costs and Other Taxation Other Creditors Accruals 199.950 239.018 191,318 229,575 303,806 805,758 597.644 338.600 734,019 582,411 303,806 805,758 632,335 329,974 729,913 569,467 1.907,158 1.894.048 1.933.217 1,858,929 26 People in Artion NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 CREDITORS - AMOUNTS FALLING DUE A￿ER MORE THAN ONE YEAR 18. Group 2023 Charitable Company 2023 2022 2022 Bank Loans 92,360 142,693 92.360 142,693 92,360 142,693 92.360 142,693 Included In the above a￿ the following.. Arnounts repayable by instalments but not wholly repayable within five years: Charitable Company 2023 2022 Repayable within one to two years Repayable within two to five years Repayable after five years 50,862 41,498 50,862 91,831 92,360 142,693 The bank loan is secured and interest is charged at a fixed rate of IY2% above the bank base rate. It is wholly repayable within five years. 19. RESERVE FUNDS GROUP General Oesignated Restritted funds funds funds Total At l April 2022 Surplus for the year 4,411.506 585.253 4.411.506 585,253 At 31 March 2023 4.996.759 4,996,759 CHARttABLE COMPANY General funds Designated Restricted funds funds Total At l April 2022 Surplus for the year 4.589.729 603.050 4,589,729 603,050 At 31 March 2023 5,192,779 5,192.779 27 People In Adlon NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 20. REVALUATION RESERVE The charitSes freehold properties a￿ induded at deemed o)st of £3,575,000 based on a rnarket valuation at 10 June 2016. This is £1,035,384 greater than the original cost of acquisition. At l April 2022 and 31 March 2023 1,035.384 21. CAPtTAL COMMtTMEMrs At 31 March 2023 the group had no capital commitments (2022 - none). 22. CONTINGENT LIABILITIES There were no contingent liabilibes as at 31 March 2022. 23. OTHER FINANCIAL COMMITMENTS At 31 March 2023 the group was committed to making the followin9 payments under non- Can￿lIable operats.ng leases.. Land and buildings 2023 2022 other 2023 2022 Operating Leases which expire- Within one year Within two to five years After five years 59.500 150,125 53,667 115,900 463,600 204,392 1.526 1,700 1,526 263,292 783,892 1.526 3,226 24. PENSION COMMITMENTS The company contnbutes to personal pension schemes, the local govemment pension scherne, and the NHS Pensions Agency. The assets of the schemes are held separately from those of the company in independently adminrstered funds. The pension c05t charge detailed in Note 8 represents contnbutions payatAe by the company to the schemes. At 31 Narch 2023 contributions totalling E61,410 were outstanding to the funds {2022 - £50,956). 28 People in Action NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 25. RELATED PARTY TRANSACTIONS Indemnity insurance was taken ovt during the year in respect of direttors and offi￿r5. The cost of this insurance wa5 £6,710 {2022 - E2.415). Arnounts due to People in Action from group undertakings are disdosed in note 14. £1,216,005 {2022 - £1,205,673) is due from Charterville Care èt Home ￿"MIted against whSch a provision of EI,042,500 was made at 31 March 2023- £242.861 (2022 £189,747) from People in Action Retail Lirnited and E14,868 (2022 - £14.868) frorn Content Care Limited. 26. ULTtMATE CONTROL The ultimate contrcA of the charitable company rests with its members. 29