Registered Housing Association Number.. HAL20 FCA Reference Number: 1883RISI Scottish Charity Number.. SC012549 ABBEYFIELD SCOTLAND LIMITED REPORT and CONSOLIDATED FINANCIAL STATEMENTS For the ear ended 31 March 2022
ABBEYFIELD SCOTLAND LIMITED Contents Page Members of the Board, Executsve and Advisers Report of the Board Report by the Auditors on Corporate Governance Mallers Report of the Auditors 10-12 Slalemenl of Comprehensive Income 13-14 Statement of Changes in Reserves 15 statement of Financial Position 16-17 Statement of C8shflows 18 Notes lo the Financial SlateTnenls 19-31
ABBEYFIELD SCOTLAND LIMITED BOARD, EXECUTIVES and ADVISERS Year ended 31 March 2022 Board Auditors Solicitors Flnance Agents Chiene + Tail LLP 61 Dublin Street Edinburgh EH3 6NL
ABBEYFIELD SCOTLAND LIMITED REPORT of the BOARD For the ear ended 31 March 2022 The Board presents its report and the Financial Slalemenls for the year ended 31 March 2022. Legal Status Abbeyfield Scotland Limited is a Registered Social Landlord and is a registered non-profit making organisalion under the Go-operalive and Community Benefit Societies Act 2014 Number 1883RISI. Abbeyfield Scotland Limited is conslilLJled under ils Rule Book and is a registered Scollish Charity with the charity number SC012549. 11 is also registered with the Financial Corkducl Authority and the Scottish Housing Regulator. Cmndeen Property Ltd is a wholly-owned subsidiary of Abbeyfield Sco15and Limited and was incorporated on the 23 February 2017. Princlpal Activities The principal activities of the group are the provision and management of affordable rented accommod8tion and the provision of varied care and support, lifestyle and flexible services for older people. REVIEW of BUSINESS and FUTURE DEVELOPMENTS Our Strategic Aims Abbeyfield contracted a strategic options appraisal in 2019, with a recommendation to seek an RSL partner. Following due process, in 2020, we embarked on a collaborative business case with Blackwood Home5 and Care. In October 2021, the Abbeyfield approved an offer from Blackwood. a full Tmnsfer of Engagements. Since then, we have continued to work steadily with them lo refine the offer, which was then laid out for residents in a ballot held in May 2022, the outcome was 98.8°kn in favour of the offer. In June and July 2022, our members voted unanimously in favour of the offer, which means, Abbeyfield will now transfer to Blackwood on 1 September 2022. Blackwood fully support our vision. mission and values. Our Vision Abbeyfield Scotland Limited IASL) is acknowledged as an exemp18ry provider of flexible care and support seTvices for people who value their independence, for enhancing lives, for improving communities and for the well-being and lifestyle choices of indNiduals. Ission To provide for the relief of those in need by reason of age, ill~heallh, disability. financial hardship or other disadvantages through the provision of construction, improvement and management of land and accommodation and the provision of care (by ourselves or with a suitable partner). Our Values CARE in the wellbeing of our residents and service users, staff and other customers HONESTY in our relationships. listening to and supporting all our customers, and one another OPENNESS to new ideas and better ways ofworking RESPECT for differing views, values, backgrounds, abilities and ¢haracleristics. The strategic aims of Abbeyfield as slated in our Business Plan 2020-2025 set the scene for an investment programme and focus on improvement during the COUTse of the year lo 31 March 2022. Abbeyfield have been working closely with Blackwood, who recognising and share the aims and objeGlives-.
ABBEYFIELD SCOTLAND LIMITED REPORT of the BOARD Icontlnuedl For the ear ended 31 March 2022 REVIEW of BUSINESS and FUTURE DEVELOPMENTS Icontinued) strategic Objective 1: Covid-19 Emergency Plan Measures lo protect our customers, staff and Board from Covid 19 are strictly followed from UK and Scollish Government advice, particular to our business and workforce. strategic Oblectlve 2.. Improving Houslng Service Implementing and developing our vision of an exemplar of services lo vulnerable adults across Scotland. Using our strong history in the market lo enhance the lives of people in our properties and in communities. A live-horizon approach to strengthening. developing and implementing tailored and assessed needs for adults. Success is dependent on a criterion of performance enhancing measures. A communication toolkit over five key points of managing performance. Strategic Objective 3: Improving Housing Quallty A revised Stock Condition Survey is now complete and is helping shape the improvements iequired with Blackwood and an Asset Managemènt Strategy will be aligned with the financial plans needed in line with the offer from Blackwood as they invest in our existing stock. Strategic Oblective 4.. Dellvering Good Governance Blackwood is a long standing registered social landlord ex1149 in good governancè and have an excellent reputation in the sector. The TofE ensures that the delivery of good governance will be mel. strategic Objective 5: Strengthening Financial Sustalnability The TofE will guarantee houses will see investment and improvements, residents will benefit from enhanced services and staff will transfer under TUPE regulations. B58ckwood will strengthen the financial viability of our 14 houses. strategic Objective 6: Transforming Our Culture Leadership INon-Execulive and Executive) and Culture through Blackwood and use of specialist support, agreement on, and implementation of a culture change PTogramme. Blackwood have a strong Leadership charter to lead, innDvale and be accountable. Managed Property The table below shows our stock.. 2021122 14 Houses 127 12 2020121 14 Houses 127 non-self-conlained ro self-conlained ro erties Investment rties Total rties 142 143 Financial Review The Group has a deficit of £752.25512020121- deficit £194.7561, Abbeyfield Scotland Limited (the Parent) has an overall deficit of £1,371.151 {2020121 deficit £205,166). One property was sold in the year for a loss of £41,494 compared to the previous year where bNo properties were sold for a gain of £269,412. Operating defiGIt was £1,348.694 {2020121- delicil £497,816). The Group is fortunate in carrying no debts and having a healthy cash reserve of £1.6m at 31 March 2022. The sum of £252,655 has been budgeted for repairs, planned and cyclical maintenance in 2022123 and £10,000 on redecoration and internal improvements. In addition, a further £458,300 has been budgeted lor capital improvements in 2022123. Further investment lo improve access and facilities will be supported by adaplalion grants from Scollish Government.
ABBEYFIELD SCOTLAND LIMITED REPORT of the BOARD Icontinuedl For the ear ended 31 March 2022 REVIEW of BUSINESS and FUTURE DEVELOPMENTS Icontinuedl The Group now owns 3 bungalow style properties in Aberdeen, valued at approximately £0.87m, these are investment properties. Development and Performance This report details deveSopments that have occurred during the year relating lo the main aclNilies undertaken by ASL and how we have performed. Cor orate Governance Abbeylield Scotland Ltd is governed by a voluntary Board which is elected by the members of Abbeyfield Scotland. 11 is the responsibilily of the Board lo sel the strategy. policy and overall direction for Abbeyfield. Following the 2021 AGM the Board re-elected Nance Smith as Chair and Thomas Dodd as Company Secretary, In addition, they elected David Bellall as Vice Chair. The Board numbered 14 al 31 March 2022 following appointment of co-opted memberss in December 2021.. Lawrie Wesl and Wendy Mccracken. The Chief Executsve and the management team are responsible for achleving the strategic objectives and undertaking the operational activities in accordance with the agreed policies during the year. A Strategic Opli(>ns Appraisal wa5 carried out in July 2019. This remains relevant as ASL is about to conclude a transaction with Blackwood Homes and Care. The Business Plan 2020-2025 the Board, remains in place, 8long with a Transition Plan and Delivery Plans, working in collaboration with Bla¢kwood and working with the regulatory authorities in meeting Abbeyfield's objectives and governance requirements. ASL is piimarily regulated by The Scottish Housing Regulator and the Care Inspectorate. Abbeyfield submitted its third Annual Assurance Slalement in October 2021, indicating full compliance. The Engagement Plan with The Scollish Housing Regulator is clear on ASL'S focus on the transfer of engagements lo Blackwood. Partnershi Crandeen Propety Ltd. Abbeyfield's wholly owned subsidiary is now in non- trading mode with application DS01 submilled lo Companies HoLJse for dissolution. ASL is affiliated to The Abbeyfield Society ITAS}. In Scotland, the Abbeyfield Societies in Scotland Ltd IASISI exists lo promote collaboration beeen the various Abbeyfield member societies in Scotland lof which ASL is by far the largest). Performance Allocations and income maximisalion Void rental Ioss for retained houses was 22.40010 of rent and service charges receivable12020121- 22.40°kl. Under close scrutiny by Board, the Finance Committee and management, our actions in this crucial regard have been to raise local and national awareness of ASL'S services with improvecl targeted promotional activity supplemented by local and corporate marketing. Rent arrears al 31 March 2022 remained, amounting to 2.21 % of the annual gross rent due12020121- 2.21'/ol. Res onsive re airs Cate Performance Measure Tar 2021122 2020121 Emer enc Non-Emer Avera Avera e lime lo com e lime locom lete lele 5 hours 6da 4 hours gda 5.5 hours 5da enc
ABBEYFIELD SCOTLAND LIMITED REPORT of the BOARD Icontinuedl For the ear ended 31 March 2022 Development and Performance l¢ontinuedl Health & Safet In the past year gas safety checks, electrical condition reports, portable appliance testing, water hygiene tests and renewal of Houses in Multiple Occupancy IHMOI licences were undertaken. These demonstrate the paramount importance placed upon the health and safety of our residents and staff Gas safet All gas safely checks are completed in September, several months before their anniversary date and each contractor will be provided again with a comprehensive list of all equipment that requires lo be checked. Fire safe Fire safety training is undertaken by all staff at least yearly and evacuation lesls are carried out as standard monthly and as unannounced al least yearly. Action required as a result of legislation, training, risk assessment and evacuations is taken seriously al both Board and managemenl levels and monitored closely. Covid-19 ASL has not been heavily affected by the Pandemic, and later reslriclions, with staff managing in nprecedented times lo an eXtmelY high standard. Asset Mana emenl ASL'S reviews its asset management strategy on a regular basis and an important element in the reconfiguration of the business has been Ihe closure over several years of a number of unsustainable propertSes. No further closures are identified. Performa ce Mana ement. Our people and our houses perform with greate51 regard lo the health and well-being of our residents. The focus on voids is pivotal to out-performing the Business Plan and this is closely monilore(J using a sophislicaled performance management ffamework. It adapts lo scenarios and sensitivities and is a welcome loolkil for deep and clinical analysis down lo a house by house basis. ASL'S golden thread strategy Ss on the importance of reducing voids. Mainlainiri our Houses The year continued with the ongoing programme of planned maintenance and health and safety works lo the houses. Projects included.. healing systems, including boiler replacements roofing repairs replacement of doors and windows Significant works are expected from 2021122 in Haddinglon which is now underway, with expected completion in October 2022. Peo le Mana ement The quality and competence of our staff is maintained by our high standards for recruilmenl and the induction, training and development given. Expected values and behaviours were developed in parinership with staff and form a 'golden thread" running through the whole of the organisalion and ils a¢livilies. Al 31 March 2022, Abbeyfleld Scotland Ltd employed 73 staff IFTE 40.41 based in 14 houses, the Area office and in Edinburgh. The sickness absence rale is 7.090/¢12020121- 6.420/0).
ABBEYFIELD SCOTLAND LIMITED REPORT of the BOARD Icontinuedl For the ear ended 31 March 2022 Development and Performance (contlnuod) Model of Services Horizon 1 limmedialel - how lo manage voids, how to reslruclure staff to effectiveness, how lo use SDS, marketing, investment - what do we need to achieve this? The challenges are doing these ourselves. Horizon 2 (working with Blackwood) - providing intermediate care, slep uplslep down, measured care al home, staff training, staff skills. staff slruclures. technology Horizon 3 (beyond) - secuiing public conlracls, growing and developing, be the best servlce provider in Scotland. More specifically, Blackwood have indicated they will continue the work to.. Develop greater understanding of the strategic commissioning planning landscape as outlined by Scottish Government {e,g. via the offer of training from Health Improvement Scolland}, and use this lo exploTe opportunities arising from each Health and Socia1 Care Partnership's Strategic Commissioning Plans Ulilise and develop the Abbeyfield Care registered service to engage more closely with commissioners via geographical Health and Social Care Partnership Strategic Planning Groups. and lo engage with health. care and housing co-production events. Explore the possibilities and registration requirements for commissioned services that mitigate the effects ol voids e.g.. a service offer based on Inlermediale Care principles. referring older people from hospital lo address delayed discharge. provision of services for younger adults with Learning Disabilities in certain localilies. Redefining potential service offeis and clarify the provision and pricing of support for. very sheltered housing {via ASLI services in community (housing support, care al home, companionshiplbefriending as via SDS- via Abbeyfield Care carers organisalions Overall. this theme will support the outcomes.. Address the needs of those who require Care and support Demonstrate social value Maintain a secure fi'nancial position Risk Mana emenl The Board has a formal risk management proTrss lo assess business risks and implement risk management strategie5. This involved identifying the types of risks Abbeyfield Scotland fas, priorilising them in terms ol potential impact and likelihood of occurrence, and identifying means of mitigating the risks. As part of Ihis process the Board has reviewed the adequacy of Abbeyfield's current internal controls and how this will be supported during the TofE. The Board has sel policies on intern81 controls which cover the following.. consideration of the type of risks Abbeyfield fa$ the level of risks which they regard as acceptable the likelihood of the risks Conrned malerialising Abbeyfield's ability to reduce the incidence and impact on the business of risks that do materialise management ol the costs of ope¥aling particular controls relative to the benefit oblalned
ABBEYFIELD SCOTLAND LIMITED REPORT of the BOARD Icontinued Forthe ear ended 31 March 2022 Development and Performance (contlnuedl In order to ensure these polices are adhered lo, management has.. engaged an internal auditor clarified the responsibility of management lo implement the trustees, policies and identify and evaluate risks for their consideration communicated that employees have responsibility for internal control as part of their accountability for achieving objectives embedded the control system in the business's operations $0 that it becomes part of the culture of Abbeyfield developed systems to respond quickly lo evolving risks arising from factors within the charity and lo changes in the external environment included procedures for reporting fallings immediately lo appropriate levels of management and the Board together with details of corrective action being undertaken. Bud ela rocess Each year the Board approves the budget for the following year and provisional budgets for the four succeeding years. Key risk areas are identified. Performance is monitored by way of monthly management accounts and the Key Performance Indicators, scrulinised by Ihe Finance Committee before the full Board and relevant action taken throughout the year through reporting on variances from the budget and updated forecasts for the year. Approval procedures are in place for areas of major risk such as tenders and major expenditure Goin Concern ASL has no viable financial health and is no longer a going concern. The TofE with Blackwood gives current assets including stock, services, staff and residents the best possible chances of improved health, continued legacy and future proofing remedies. Board and Executive Officers The members of the Board and the Executive Officers are listed on Page 1. Each member of the Board holds one fully paid share of £1 in the Association. The Executive Officers hold no Interest in the Asso¢ialion's share capital and, although not having the legal status of Director8, they act as Executives within the aulhorily delegated by the Board. The members of the Board are also Trustees of the Charity. Members of the Board are appointed by the members at the Association's Annual General Meeting. statement of Board's Res onslbilitles The Co-operative & Community Benefit Societies Act 2014 requires the Board to prepare financial slalemenls for each fi'nancial year which give a true and fair view of the slate of affairs of the Association and of the surplus or deficit of the Association for Ihal period. In preparing those Financial Slalements, the Board is required to.. select suitable accounting policies and then apply them consislenlly., make judgements and eslimales that are reasonable and prudent., slate whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the Financial Slalemenls., prepare the Financial Slalemenls on the going conrn basis unless il is Inappropriate lo presume that the Associalion will continue in business., prepare a slalement on Internal Financial Control. The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy al any lime the financial position of the Association and to enable them lo ensure that the Financial Statements comply with the Co-operative and Community Benelil Societies Acl 2014, the Housing {Scollandl Act 2010 and the Determination ol Accounting Requirements 2019. They are also responsible for safeguarding the assets of the Association and hence for taking reasonable steps for the preventions and detection of fraud and other irregul8rilies. 11 is also responsible for ensuring the Association's suppliers are paid promptly.
ABBEYFIELD SCOTLAND LIMITED REPORT of the BOARD Icontinuedl For the ear ended 31 March 2022 The Board must. in determining how amounts are presented within items in the income and expenditure account and balance sheet, have regard lo the substance of the reported transaction or arrangement, in accordance with generally accepted accounting practices. In50far as the Board are aware.. there is no relevant audit Information linformation needed by the Housing Association's auditors In connection with preparing their report) of which the Association's auditors are unaware, and., the Board have taken a51 steps that they ought lo have taken lo make themselves aware of any Televanl informallon and to establish that the Housing Association's auditors are aware of that inlormation. statement of Internal Financial Control The Board acknowledges ils ultimate responsibility for ensuring that the Association has in place 8 System of controls that is appropriate for the business environment in which it operates. These controls are designed lo give reasonable assurance with respect lo.. the reliability of financial information used within the Association, or for publication., the maintenance of proper accounting records., the safeguarding of assets against unaulhorised use or disposition. It is the Board's responsibilily lo establish and maintain systems of Internal Financial Control. Such systems can only provide reasonable and not absolute assurance against material financial misstatement or loss, Key elements of the Association's systems include ensuring Ihal.. formal pollcies and procedures are in place. including the ongoing documentation of key systems and rules relating lo the delegation of authority, which allow the monitoring of controls and restrict the unaulhorised use of Association's assets., experienced and suitably qualifi'ed staff take responsibility for important business functions and annual appraisal procedures have been established lo maintain standards of performance.. forecasts and budgets are prepared which allow the management team and the Board lo monitor key business risks, linancial objects and progress being made towards achieving the financial plans set for the year and for the medium term., regular financial management reports are prepared promptly, providing relevant, reliable and up-lo-date linancial and other information with significant variances from budget being investigated as appropriate., regulatory returns are prepared, authorised and submitted promptly lo the relevant regulatory bodies., all significant new inilialives, major commitments and investment projects are subject to formal aulhorisalion procedures, through the Board., the Board receive reports from management and from the external and internal auditors to provide reasonable assurance that internal financial controls are in place and are effective and Ihal a review of the major risks facing the Associatlon is undertaken. Formal procedures have been established for insliluling appropriate action to correct any weaknesses identified through inleTnal or exlernal audit reports. The Board has reviewed the effectiveness of the system of internal financial control in existence in the Association for the year ended 31 March 2022. No weaknesses were found in internal financial contiols which resulted in material losses, contingencies or uncertainties which require disclosure in the financial statements or in the auditor's report on the financial slatemenls. AudStors As there will be no Annual General Meeting in 2022, due to the Transfer of Engagements, there will be no further appointment of auditors. BY ORDER OF TH OARD Secretary 24 August 2022
REPORT BY THE AUDITORS TO THE BOARD OF ABBEYFIELD SCOTLAND LIMITED ON CORPORATE GOVERNANCE MATTERS In addition to our audit of the Financial Slalemenls. we have reviewed your statement on page 7 concerning the Group's compliance with the information required by the Regulatory Standards in respect of inleTnal financial control contained within the publication "Our Regulatory Framework. and associated Regulatory Advice Notes which are issued by the Scoltish Housing Regulator. Basis of Opinion We carried out our review having regard to the requiTemenls relating lo corporate governance matters within Bulletin 200615 issued by the Financial Reporting Council. The Bulletin does not require us lo review the effectiveness of the Group's procedures lor ensuring compliance with the guidanGe notes, nor lo investigate the appropriateness of the reasons given for non-compliance. Oplnlon In our opinion the Statement on Internal Financial Control on page 7 has provided the disclosures required by thè relevant Regulatory Standards within the publication "Our Regulatory Framework" and associated Regulatory Advice Notes issued by the Scottish Housing Regulator in respect of internal financial controls and is consistent with the infomalion which came lo our allenllon as a result of our audit work on the Financial Statements. Through enquiry of certain members of the Board and Officers of the Association, and examination of relevant documents, we have satisfied ourselves that the Board's Slalement on Internal Financial Control appropiialely reflects the Association's Complian with the information required by relevant Regulatory Standards within the publication "Our Regulatory Framework" and associated Regulatory Advi Notes issued by the Scollish Housing Regulator in respect of internal financial controls. ALEXANDER SLOAN Accountants and Statutory Auditor Edinburgh Date..
ABBEYFIELD SCOTLAND LIMITED INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF ABBEYFIELD SCOTLAND LIMITED Opinion We have audited the financi81 statements of Abbeylield Scotland Limited Ilhe 'parenl'l and its subsidiaries Ilhe 'group'l for the year ended 31 March 2022 which comprise the Stslemenl of Comprehensive Income, Slalemenl of Financial Position, Slalemenl of Cash Flows, Statement of Changes in Reserves and rèlated notes. including a summary of significant accounting policies. The financial reporting framework that has been applied in IheiT preparation is applicable law and United Kingdom A¢¢ounting Standards, inclLJding Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland" Iuniled Kingdo Generally Accepted Accounting Practi1. la our opinion the financial slatemenls-. give a true and fair view of the slate of Ihe Group's and the parent Association's affairs as al 31 March 2022 and of the surplus for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting practi., and have been prepared in accordance with the requirements of the Co-operativè and Community Benefit Societies Act 2014, the Housing IS¢ollandl Act 2010 and the Delerminalion of Accounting Requirements 2019. Basis for opinlon We conducted oui audit in accordance with International Standards on Auditing IUKI IISAS IUKI) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent ol the Association in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we havè fulfilled our other ethical responsibilities in accordance with these requirements, We believe that the audit evidence we have obtsined is sufficient and appropriate lo provide a basis for our audit opinion. Emphasis of Matter- non-Going Concern Basis of Accounting We draw allenlion lo note l of the financial slalemenls which describes the preparation of the financial statements on 8 non-going concern basis. As described in note 1, Abbeyfteld Scotland will transfer engagements lo Blackwood on 1 September 2022 with the assets and liabilities transferring lo the acquiring Association. The legal enlily of Abbeyfield Scotland will be closed down during the following year once fomalilies have been completed. As such, although Abbeyfield Scotland's operations are continuing as part of anolhei RSL, Abbeyfield as an entity will not exist in the foreseeable future. Therefore the Board ha5 concluded that it is no longer appropriate lo prepare the financial statements on a going concein basis. There have been no adjuslmenls lo the financial slalemenls as a result of the application of the non-going concern basis of accounting. Our opinion Is not modified in respect of this maller. Other Information The Board is responsible lor the other informallon. The other information comprises the informab'on contained in the annual report, other than the financial statements and our auditor's report Ihereon. Our opinion on the financia1 statements does not cover the other information and, except lo the exlenl otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial slalements. our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial slalemenls OT OLJr knowledge obtained in the audit or olhetwise appears lo be materially misstated, If we identify such material inconsistencies or apparent material misslatemenls, we are required to determine whether there is a material misslatemenl in the financial 8latemenls or a material misslalemenl of the other information. If, based on the work we have performed, we conclude that there is a material misstalemenl of this other information, we are required lo report that fact, We have nothing to report in this regard. 10
ABBEYFIELD SCOTLAND LIMITED INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF ABBEYFIELD SCOTLAND LIMITED (continued} Matters on which we are required to report by exception We have nothing lo report in respect of the following matters where the Co-opeTalive and Community Benefi't Societies Act 2014 require us lo report lo you if, in our opinion.. proper books of account have not been kept by the Group in accordance with the requirements of the legislation., a salisfaclory system of control over transactions has not been maintained by the Group in accordance with the requirements of the legislation., the Statement of Comprehensive Income and Slalemenl of Financial Position are not in agreement with the books of account of the Group., or we have not received all the information and explanations we require lor our audit. Responsibilities of the Board As explained more fully in the statement of Board's responsibilities as sel out on page 8, the Board is responsible for the preparation of the financial slalemenls and for being satisfied that they give true and fair view, and for such internal control as the Board determines is necessary to enable the preparation of the financial statements that are fe from material misstalemenl, whether due lo fraud or error. In preparing the financlal slalemenls, the Boaid is responsible for assessing the Group's abilily to continue as a going concern disclosing, as applicable, mallers related lo going Concern and using the going concern basis of accounting unless the Board either intend to liquidate the Group or to cease operats'ons, or have no realistic alternative but lo do so. Auditor's responsibilities for the audit of the financlal statements Our objectives are lo obtain reasonable assurance about whether the financial slalements as a whole are free from material misslalement, whether due lo fraud or error. and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a m2teTial misslalement when il exists. Misslalemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of Ihese financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our respon5ibililies, outlined above, lo delect material misslalemenls in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. The extent to whlch the audit was consldered capable of detecting irregularities including fraud Our approach lo identifying and assessing the risks of material misslalemenl in respect of irguIar1Iie$, including fraud and non-compliance with laws and regulations. was as follow5". the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills lo identify or recognise non-compliance with applicable laws and regulations., we gained an underslanding of the legal and regulatory framework applicable to the Group through discussions with the Board and other management, and from our wider knowledge and experien of the RSL sector., we focused on specific laws and regulations which we considered may have a direct material effect on the financial statemen15 or the operations of the Group, including the C&operalive and Community Benefit Societies Act 2014 {and related regulalionsl, the Housing IScolland} Act 2010 and other laws and regulations applicable lo a registered soci81 housing provider in Scotland. We also considered the risks of non-compliance with the other requirements imposed by the Scollish Housing Regulator and we considered the extent lo which non-compliance might have a material effect on the financial slatemenls. we assessed the exlenl of compliance with the laws and regulatSon5 identified above through making enquiries of management and inspecting legal correspondence., and identified laws and regulations were ¢omtnunicaled within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
ABBEYFIELD SCOTLAND LIMITED INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF ABBEYFIELD SCOTLAND LIMITED Icontinuedl The extent to whlch the audil was considered capable of detecting Irregularities Sncludlng fraud (Contd.) We assessed the susceptibility of the Group's financial statements lo material misstatement, including obtaining an unclerslariding of how fraud might occur, by.. making enquiriès of as lo where they considered there was susceptibility lo fraud, their knowledge of actual, suspected and alleged fraud,. and considering the internal controls in place lo mitigate risks of fraud and non-compliance with laws and regulations. enquiring with the internal auditor of any known or 8uspecled fraud. To addres5 the risk of fraud through management bias and override of controls, we.. performed analytical procedures lo identify any unusual or unexpected relationships., tested journal entries lo identify unusual Iransaclions., assessed whether judgements and assumptions made in determining the accounting eslimales set out in the notes were indic2tive of potential bias., and invests'galed the rationale behind significant or unusual Iransaclions. In response lo the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included. bul were not limited lo.. agreeing financial slalemenl disclosures lo underlying supporting documentation., reviewing the minutes of meetings of those charged with governance,. enquiring of management as 10 8Ctual and potential litigation and claims., reviewing the Group's Assurance Statement and associated supporting information,. and requesting correspondence with the Scollish Housing Regulator. HMRC and the Group's legal advisors reviewing unadjusted errors for indications of fraud and information received for inconsistencies. There are inherent limitations in our 8LJdil procedures described above. The more removed that laws and regulations are from financial Iransaclions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations lo enquiry of the Directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due lo fraud can be harder lo delecl than those that arise from error as they may involve deliberate concealment or collusion. Descriptlon of the auditor's responsibllltles for the audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the financial slalements as a whole aTe free from material misslalemenl, whether due lo fraud or erroT, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will 21ways delecl a material mis5talemenl when il exists. Misslatemenls can arise from fraud or error and are consideied material if, individually or in aggregate, they could reasonably be expecled to influence the economic declslons of the users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial slalemenls is located on the Financial Reporting Council's website al.. hllp'.Ilww.frc.org.uklaudilorsresponsibilities. The description forms part of our audit report. Use of our Report This report is made solely lo the Association's members as a body, in accordance with Part 7 of the Co- operative and Community Benefit Societies Act 2014. Our audit work has been undertaken so that we might slate lo the Association's members those matters we are required lo slate lo them in an auditols report and for no other purpose. To the fullest extent permilled by law, we do not accept or assume responsibility lo anyone other than the Association and the Association's members as a body, for our audit work, for this report, OT for the opinions ALEXANDE Accounlanls and Business Adviser5 Slalulory Auditors EDINBURGH Dale.. Alexondey Sloan A(,'pniiilaiil.s <iiiil R154lllPS- Ailvi%ei- 12
ABBEYFIELD SCOTLAND LIMITED GROUP STATEMENT OF COMPREHENSIVE INCOME For the ear ended 31 March 2022 Notes 2022 2021 Turnover 2,300,301 2,285,768 Operating costs {3.013,719} 12,756,422) Operatlng deficit 1713,418) 1470,6541 ILossllgain on sale of housing stock Interest r1Vable and other income 141,494) 2,657 269,412 6,486 138,837} 275,898 (Deflcltllsurplus for the year {752,255) 1194,7561 There were no discontinued operations during the year. As a consequence the results relate wholly lo continuing activities. The notes on pages 19 10 31 form part of these financial statements 13
ABBEYFIELD SCOTLAND LIMITED PARENT STATEMENT OF COMPREHENSIVE INCOME For the ear ended 31 March 2022 Notes 2022 2021 Turnover 2,261,610 2,243,576 Operating Costs {3,610,304) 12,741,392} Operating deficit 11,348,694) 1497,816) (Lossllgain on sale of housing stock Interest receivable and other income 141,494) 19,037 269.412 23,238 {22,4571 292,650 (Deflcltllsurplus for the year 11,371,151) 1205,166) There were no discontinued operations during the year. As a consequer¢ce the results relate wholly to continuing aclivilies. The notes on pages 19 10 31 form part of these financial statements 14
ABBEYFIELD SCOTLAND LIMITED GROUP STATEMENT OF CHANGES IN RESERVES As at 31 March 2022 Share Revenue Restricted Capital Reserves Reserves Total Balance al 1 April 2021 99 4,159,197 448,003 4,607,299 Movement in share capital 1131 1131 SLJrpltJs from statement of lolal comprehensive income 1752,2551 1752,2551 Balance at 31 March 2022 86 3,406,942 448,003 3,855,031 Balance 211 April 2020 99 4,353,953 448,003 4,802.055 Movement in share capital Surplus from stslemenl of lolal comprehensive income 1194,7561 1194,7561 Balance at 31 March 2021 99 4,159,197 448,003 4,607,299 PARENT STATEMENT OF CHANGES IN RESERVES As at 31 March 2022 Share Revenue Restricted Capital Reserves Reserves Total Balance at 1 April 2021 99 4,771,199 448.003 5,219,301 Movement in ghare capital 1131 {131 Surplus from slalement of tota5 Comprehensive income {1,371,1511 (1,371,151) Balance at 31 March 2022 86 3,400,048 448,003 3,848,137 Balance at 1 April 2020 99 4,976,365 448,003 5,424,467 Movement in sh8Te capital Surplus from statement of lolal comprehensive income 1205,1661 {205,166} Balance at 31 March 2021 99 4,777.199 448,003 5,219,301 The note5 on pages 19 10 31 form part of these financial statements 15
ABBEYFIELD SCOTLAND LIMITED GROUP STATEMENT OF FINANCIAL POSITION As at 31 March 2022 Notes 2022 2021 Tanglble fixed assets Housing Properlies- Depreciated cost 10lal 2,332,563 2,410.904 Investment properties Other tangible fixed assets Investments 10(bl 10{bl l Olc) 870,000 14,189 1,312,060 41,163 3,216,752 3,764.127 Current assets Debtors lamounls falling due wilhin one year) Debtors lamounls falling due after one year) Properties held for Sale Cash at bank and in hand 160,675 190,062 13 22 1,602,559 1,761.504 1,763,234 1262,101) 1,951,566 1205,7981 Creditors: Amounts falling due within one year 14 Net current assets 1,501,133 1,745,768 Total assets less current Ilablllties 4,717,885 5,509,895 Creditors: Amounts falling due after one year 15 {862,8541 1902,5961 Net assets 3.855,031 4,607.299 Capilal and reserves Share capital Revenue resetves Restricted reserves 16 17{al 171bl 86 3,406,942 448.003 4,159,197 448,003 3,855,031 4.607,299 The financlal slalemenls were approved by the Board and signed on their behalf on 24 August 2022. The notes on pages 19 10 31 form part of these financial statements 16
ABBEYFIELD SCOTLAND LIMITED PARENT STATEMENT OF FINANCIAL POSITION As at 31 March 2022 Notes 2022 2021 Tangible fixed assets Housing Properties- Depreciated cost 10la} 2,332,563 2,410,904 Investment properties Other tangible fixed assets Investments 10lbl 10lbl 1 Olcl 870,000 14,189 1,312,060 29,963 3,216,753 3,752,928 Current assets Debtors lamounls falling due within one yearl Debtors lamounls falling due after one year} Properties held for sale Cash al bank and in hand 13 13 160,675 205.484 628,957 22 1,596,589 1.756,137 1,757,264 1263,0261 2,590,578 1221.6091 Credltors: Amounts falling due within one year 14 Nel current assets 1,494,238 2,368,969 Total assets19s5 current Ilabiliti8S 4,710,991 6,121,897 Credltors: Amounts falling due after one year 15 1862.854} 1502,596) Net assets 3,848,137 5.219.301 Capltal and reserve5 Share capital Revenue reserves Reslricled reserves 16 171al 171b} 86 3,400,048 448.003 99 4,771,199 448,003 3,848,137 5,219,301 The financial statements were approved by the Board and signed on their behalf on 24 August 2022. The notes on pages 19 10 31 form part of these financial slatemenls 17
ABBEYFIELD SCOTLAND LIMITED STATEMENT of CASHFLOWS For the ear ended 31 March 2022 GROUP Note 2022 2021 Net cash generated from operating activities 21 1428,143) (457,7091 Cash flows from Investing activities Purchase of tangible fixed assets Proceeds from sale ol fixèd assets Cash flows from flnancing activities Interest receivable 119,9801 {22,025) 286,521 685,186 2.657 6,486 Net change in cash and cash equivalents in the year 1158,9451 211,938 Cash and cash equlvalents at the beginnlng of the year 1,761,504 1,549,566 Cash and cash equivalents at the end of the year 1.602,559 1,761,504 PARENT Note 2022 2021 Net cash generated from operatlng acttvities 21 1445,1261 1422,0201 Cash flows from Investing activities Purchase of tangible fixed asse15 Proceeds from sale ol fixèd assets Cash flows from flnancing activities Interest Teceivable 119.9801 122,0251 286,521 685,186 19,037 23,238 Net change in cash and cash equivalents in the year 1159,5481 264,379 Cash and cash equivalents at the beglnnlng of the year 1,756,137 1,491,758 Cash and cash equivalents at the end of thè year 1,596,589 1,756,137 The notes on pages 19 to 31 form part of these financial statements 18
ABBEYFIELD SCOTLAND LIMITED NOTES to the FINANCIAL STATEMENTS For the ear ended 31 March 2022 The financial slalemenls have been prepared in accordance with Financial Reporting Standard 102 IFRS1021, the Statement of Recommended Practice for social housing provider5 Housing SORP 2014 and the Determination of Accounting Requirements 2019.. Legal Status Abbeyfield Scotland Limited is registered under the Co-operative and Community Benefit Societies Act 2014 No. 1883R{Sl and is a regislered Scollish charity No.SC012549. Abbeyfield Scotland Limited is registered as a housing association with the Scollish Housing Regulator under the Housing (Scollandl Act 2010. The principal activity of the Association is the provision of social housing and thus the Association is considered a public benefit entity. The registered Offi is 14 New Marl Road, Edinburgh, EH14 1 RL. 1. Principal accounting pollcles Basis of accountlng The financial slalemenls have been prepared in accordance with applicable Accounting Standards, the statement of Recommended Practice - Accounting by Registered Social LandloTds 2014 and on the historical cost basis. They also comply with Determination of Accounting Requirements 2019. A summary of the more important accounling policies is sel out below. The financial slalemenls are prepared in Pound Sterling which is the financial currency of the entity and rounded lo the nearest £1. Going concern Abbeyfield Scotland has agreed lo transfer engagements lo Blackwood on 1 September 2022 with assets and liabilities transferring lo the aGquiiing Association. The Board intends to wind up Abbeyfield Scotland and, as an enlily, il will not exist in the loreseeable future. Therefore, the Board has considered il appropriate that these financial statements should be prepared on a going concern basis. Turnover Turnover represents rental and service charge income receivable, fees receivable, revenue grants receivable and donallons and legacies receivable. Retirement beneflts The pension costs charge5 in the financial statements represent the contributions payable by the organisalion during the period. Valuation of houslng properties Housing propertiès are slated al cost less accumulated depreciation. Housing under construction and land are not depreciated. The Association depreciates housing ploperties by major component on a slraighl line basis over the estimated useful economic lives ol each identified component. All components are calegorised as Housing Properties within note ao. Impairment reviews are carried out if events or circumstances indicate that the carrying value of the components listed below is higher than the recoverable amounl. Useful Economic Life 20 years 30 years 30 years 30 years 35 years 15 years 30 years 40 years 50 years 30 years 15-30 years 20 years 50 years Component Kitchen Bathrooms Windows External doors Internal doors Boilefs Central healing Lifts Roofs Rewiring Conservatories Fire alarms Structure 19
ABBEYFIELD SCOTLAND LIMITED NOTES TO THE FINANCIAL STATEMENTS Icontinuedl For the ear ended 31 March 2022 Prlncipal accounting pollcies Icontinuedl Valuatlon of housing propertles {continuedl When a component is replaced the replacement cost is capilalised. The cost of the original component and depreciation lo dale is wrillen out of fixed assets. Any remaining cost not depreciated is wrillen out of fixed assets to the Slalemenl of Comprehensive Income as a loss on disposal of fixed assets and included in depreciation of housing within operating Costs for social letting Depreciation and Impairment of Other Tangible Fixed Assets Other Fixed Assets are slated at cost less accumulated depTeciation. Depreciation Is recognised so as to write off the cost or valuation useful lives on following bases'.- Office Premises Furniture and Fillings Computer Equipment Office Equipment Motor vehicles Leasehold Improvements 2°/0 Straight line 20 /0 Straight line 33°/o Straight line 33°/0 Slrai9hl line 25 /0 Slraighl line and reducing balance 10¥0 Slraighl line The carrying value of tangible fixed assets are reviewed for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. Investment property Investtnent properly is ini118lly recorded al cost, which includes purchase pri and any direct allribulable expenditure. Investment property is revalued to ils fair value at each reporting dale and any changes in fair value are recognised in statement of Gomprehensive income. Soclal Houslng Grant Socia5 Housing Grants are accounted for using the Accrual Method as outlined in section 24 of FRS 102. Grants are treated as deferied income and recogni5ed in income on a syslemalic basis over the expected useful life of the property and assets lo which il relates. Social Housing Grant atlribuled to individual ccimponents is wrillen off to the Statement of Comprehensive Income when these components are replaced. Social Housing Grant received in SpeCt of revenue expenditure is credited to the Statement of Comprehensive Income in the same period as the expenditure lo which il relates. Sales of Houslng Properti95 Disposals of housing property are Irealed as a fixed asset disposal and any gain and loss on disposal accounted for in the Slalement of Comprehensive Income. LeaseslLeased Assets Costs in respect of operating leases are charged lo the Statement of Comprehensive Income on a straight line basis over the leasè term. Assets held under finance leases and hire purchase contracts are capitalised on the statement of Financial Position and are depreciated over their useful lives. Works to Existlng Properties The Association capitalises major repairs expenditure where these works Tesult in an enhancement of economic benefits by increasing the net rental stream over the life of the property. Capltalisation of Development Overheads Direolly allribLJlable development administration costs relating to development activities are c8pilalised in accordance wilh the Statement of Recommended Practice. Development Interest Interest incurred on financing a development is capilali5ed up to the dale of practical completion of the scheme. 20
ABBEYFIELD SCOTLAND LIMITED NOTES TO THE FINANCIAL STATEMENTS Icontinuedl For the ear ended 31 March 2022 Principal accounting policies (continued) Restricted Reserves Vvhere legacy income is received with conditions stipulated as lo how income is lo be spent, such income ha8 been included within a Restricted Reserve Fund. Expenditure satisfying the conditions imposed is sel against this Reserve. Details of the Reslricled Funds are in note 17. Cash and Cash Equivalents Cash and Cash Equivalents include cash al bank and in hand and highly liquid interesl-bearing securities with maturities of 100 days or less. In the cash flow slalemenl, cash and cash equivalen15 does not include term deposits that mature in excess of 100 days and are instead shown within Current Asset Investments on the Slalemenl of Financlal Position. Estimation Uncertalnty The preparalion ol financial statements requires the use of certain accounting estimates. 11 also requires the Board lo exercise judgement in applying the Association's accounting policies. The areas requiring a higher degree of judgement, or complexity, and areas where assumptions or eslimales are most significant lo the financial stalemenls, are disclosed below". Rent Arrears- Bad Debt Provision The Association assesses the recoverability of rent arrears through a detailed assessment process which considers tenant payment history and ar¥angemenls in place. Llfe Cycle of Components and useful life of propertigs J plant and equipment The Association eslimales the useful lives of major components of its housing property and the useful life of its properties. plant and equipment with iefeience lo surveys carried out by external qualified surveyors and these form the basis on which annual depreciation is eslimaled. 2. Particulars of turnover, cost of sales, operating costs and operating deficlt- Parent 2021 2022 Operating surplusl Ideficitl Turnover Operating surplusl Ideflclt} Operating costs Operating costs Notes Turnover Social letlings Other activities 3 2,083,383 2,448.133 178,227 1.162,171 1364,7501 2,025,841 2,300,967 1983,9441 217,735 440,425 1275,1261 1222,6901 Total 2.261,610 3,610.304 {1,348,6941 2,243,576 2,741,392 1497,8161 Partlculars of turnover, cost of salos, operating costs and operating deficit - Group 2022 2021 Operatlng surplusl Ideficitl Turnover Operatlng surplusl Ideficiti Operating costs Operating costs Notes Turnover Social letlings Other activities 3 2,083,383 2,415,913 216,918 565,586 1332,5301 2,025,841 2,300,967 1275,1261 1348,6681 259.927 455,455 1195,528) Total 2,300,301 2,981,499 1681,198) 2,285,768 2,756,422 1470,654) 21
ABBEYFIELD SCOTLAND LIMITED NOTES to the FINANCIAL STATEMENTS Icontlnuedl For the ear ended 31 March 2022 3. Partlculars of income and expenditure from social lettings- Parent and Group General Needs Supported Shared housing housing ownership 2022 Total 2021 Total Income from lettings Rent receivable nel of identifi'able service Charyes SeTvice charges re1vable 1,410,123 1,176,603 1,410,123 1,391,439 1,176,603 1,138,708 Gross rents receivable 2,586,726 2.586,726 2,530,147 Less.. Rent losses from voids 581,856 581,8 561,855 2,004,870 40,005 38,508 2,004,870 1,968,292 40,005 40,267 38,508 17,282 Grants released flom deferred income other revenue grants Total Income from social lettlng 2,083,383 2.083,383 2,025,841 Expenditure on soclal letting actlvlties Service costs Management and maintenance adminislralion costs Reactive maintenance Bad debts- rents and service charges Planned and cyclical maintenance. including major repairs Depreciation of social housing 662,458 662,458 660,739 1,393,869 108.294 11.070 1.393,869 1,375.354 108,294 59,355 11.070 174,121 98,321 174.121 98,321 107,744 97,775 Operatlng costs of social lettlng 2,448,133 2,448,133 2,300,967 Operating deflcit on soclal lettlng activities (364,7501 1364,7501 (275,1261 2021 {275,1261 1275,1261 22
(OOOO
-y41 (OOOON
t?9
o) 11
11
11
-pi r41 r ir) in u)
¢(D(NO
J(0
01
or r(7>
o)
11 11 o
(O 11 io 11 u)
11
I (o
0)
¢DrU)
' (0
r£) ¢0
ABBEYFIELD SCOTLAND LIMITED NOTES to the FINANCIAL STATEMENTS Icontinuedl For the ear ended 31 March 2022 5. Officers emoluments- Group and Parent The officers are defined in s149 of the Co~operalive and Community Benefit Socièties Act 2014 as the members of the BoaTd, managers or servants of the Association. One officer of the Association received emoluments greater than £60.000. 2022 2021 Emoluments payable to Chief Executive including benefits in kind of £Nil12021'. £Nil} (excluding pension conlribulionsl Pension contributions payable lo key management personnel 74.714 6,793 73,928 6.659 81,507 80,587 Key management personnel is the Chief Executive and their lolal compensallon {including employers, Nll was £90,533 12021.. £89,425). In addition, Chiene + Tail acted as finance agents and were paid £45,451 12021.. £43,200). 6. Employee Infomiation - Parent 2022 2021 The aveiage monthly number of full-time equivalent persons employed during the year was 46 49 The average to181 number of employees employed during the year was 79 72 Staff wsts were.. Wages and salaries Social security costs Other pension costs Temporary, agency and seconded staff 1,311,521 1,276,022 90,867 89,633 59,661 61,103 71.394 153,852 1,533,443 1,580,610 Employee information- Group 2022 2021 The average monthly number of full-time equivalent persons employed during the year was 46 49 The average lot21 number of employees employed during the year was 79 72 Staff costs were.. Wages and salaries Social security costs Other pension costs Temporary. agency and seconded staff 1,311,521 1,276,022 90,867 89,633 59,661 61,103 71,394 153,852 1,533,443 1,580,610 Included within the wages and salaries for the year ended 31 March 2022 is £24,595 12021.. £11,821) of severance costs. 24
ABBEYFIELD SCOTLAND LIMITED NOTES to the FINANCIAL STATEMENTS Icontinued} For the ear ended 31 March 2022 7. Gain on sale of housing stock- Group and Parent 2022 2021 Sales proceeds Cost of sales 286,521 328,015 710,000 440,588 (Lossllgain on sale of housing stock 141.4941 269,412 8. (Deficltllsurplus for the year on ordinary actlvlties Group 2021 Parent 2021 2022 2022 (Deficilllsurplus on ordinary activities is slated after charging.. Depre¢ialion Tangible fixed assets Auditors, remuneration Audil services Other services Land and buildings Other 117,475 12,000 119.571 11,700 114.095 12.100 115,019 11,700 OpeTating lease rentals 36,417 7,403 34,153 5,917 36,417 7,403 34,153 5,917 9. Tax on Ideflcltllsurplus on ordlnary activllies- Group and Parent The Association is a Registered Scollish Charity and is not liable to United Kingdom Corporation Tax on ils charitable activities. The subsidlary. Crandeen Piopety Ltd has cuirelll and brought forward losses which has brought the Corporation Tax for the current year to £nil (2021.. £nil). 10. Tangible flxed assets Houslng Properties Held for Lèttlng {a} Housing propertles- Group and Parent Cost As at 1 April 2021 Additions Disposals 4.591.952 19,980 115,48SI As al 31 March 2022 4,596,447 Depreciation As at 1 April 2021 Charge for year Disposals 2,181,048 98,321 (15,485) As al 31 March 2022 2.263.884 Net book value As at 31 March 2022 2,332,563 As al 31 March 2021 2.410.904 Additions lo housing propèrties includes capilalised development administration costs of £nil12021'. £nil) and capilalised major repair costs to existing properties of £19,980 (2021.. £5,465). All land and housing properties are fieehold. 25
ABBEYFIELD SCOTLAND LIMITED NOTES to the FINANCIAL STATEMENTS Icontlnued} For the ear ended 31 March 2022 10. Tangible fixed assets Icontinuedl Ib} Other tangible fixed assets - Group Furniture Leasehold Investment Computer and Improve- Property Equipment Equipment ments Total Cost As al 1 April 2021 Additions Disposals Revaluation 1.312,060 83,660 720.724 13,299 2,129,743 {328,0151 {114,0451 116,1081 113,2991 1357,4221 1114,0451 As al 31 March 2022 870,000 83,660 704,616 1,658,276 Aggregate depreciatlon As al 1 April 2021 Charye for year Disposals 65,632 10,194 705.568 7.983 115,2901 5,320 776,520 977 19,154 16,2971 121,587) As at 31 March 2022 75,826 698,261 774,087 Net book value As al 31 March 2022 870,000 7,834 6,355 884,189 As al 31 MaTch 2021 1,312,060 18,028 15,156 7,979 1,353,223 Ib) Other tanglble fixed assets Parent Furniture Investment Computer and Property Equipment Equipment Total Cost As al 1 April 2021 Additions Disposals Revaluation 1,312,060 83,660 704,616 2,100,336 1328,0151 1114,0451 1328.0151 1114,0451 As at 31 March 2022 870,000 83.660 704,616 1,658,276 Aggregate depreciation As al 1 April 2021 Charge for year Disposals 65,632 10,194 692,681 5,580 758,313 15,774 As at 31 March 2022 75,826 698.261 774,087 Net book value As al 31 March 2022 870,000 7,834 6,355 884,189 As al 31 March 2021 1,312,060 18,028 11,935 1,342,023 The board have considered the fair value of the investment properties is £870,000 at 31 March 2022. 26
ABBEYFIELD SCOTLAND LIMITED NOTES to the FINANCIAL STATEMENTS Icontinuedl For the ear ended 31 March 2022 10. Tanglble flxed assets Icontlnuedl {cl Investments - Parent 2022 2021 Cost As al 1 April 2021 Additions during year At 31 March 2022 Abbeyfield Scotland Limited owns one share which is 100.kn of the share capital of Crandeen Limited. Crandeen Limited commenced trading on 26 May 2017. For the year ended 31 March 2022 the subsidiary Crandeen Property Ltd ISC5585641. registered office 17 Victoria Street, Aberdeen AB10 IPU. was enlilled lo exemption from audit under section 479A of the Companies Act relating to subsidiary companies. Aggregate capltal and reserves 2022 2021 Crandeen Properly Limited 2,100 1616,7961 Profiullossl for the year 2022 2021 Crandeen Property Limited 618,896 10,410 11. Capltal Commltments Group 2021 Parent 2021 2022 2022 Capital expenditure that has been contracted for bul not provided for in the financial statements Capital expenditure aulhorised bul not contracted for 400,000 400,000 12. Commitments under opgrating leases At the year end, the lolal future minimum lease payments under non-cancellable operating leases were as follow8-. Group Parent 2021 2021 2022 2022 Not later than one year Between one and five years 28,813 443 51,767 21,150 28,813 443 51.767 21,150 Total 29,256 72,917 29,256 72,917 27
ABBEYFIELD SCOTLAND LIMITED NOTES to the FINANCIAL STATEMENTS Icontlnuedl For the oar ended 31 March 2022 Group 2021 Parent 2021 13. Debtors 2022 2022 Due within one year Arrears of rent and service charges Less.. Provision for doubtful debts 70,756 {17,070) 60,879 70,756 16,0001 117,0701 60,879 {6,0001 53,686 59.439 39,360 8,190 54,879 29,457 94,825 10,902 53,686 59,439 39,360 8,190 54,879 29.457 94,825 10,902 15,421 Social Housing Grant receivable Other debtors and prepayments Trade debtors Amounts owed by group undertakings 160,675 190,063 160.675 205,484 Due after one year Amounts owed by gioup undertakings 628,957 Group 2021 Parent 2021 14. Credltors: amounts falling due withln one year 2022 2022 Trade creditors Rent in advance Other laxalion and social security Other credilors Accruals and deferred income Inter-company auounl Deferred Housing Association Grant 110,144 15,635 22,022 24,281 50,014 78,096 7,209 25.884 23,482 30,869 106,664 15,635 22,022 28,686 50,014 78,096 7,20g 25,884 28,278 28,759 13,115 40,268 40,005 40,268 40.005 262,101 205.798 263,026 221,609 Al the balance sheet date there were pension conliibulions outstanding of £7,64112021'. £8,661). Group 2021 Parent 2021 15. Credltors: amounts falling due after one year 2022 2022 Deferred Housing Association Grant 862,854 902,596 862,854 902,596 Within one year Due between one and two yeaTS Due between bNO and five years Due after five years 40,005 40,005 120,015 702.834 40,268 40,268 120,804 741.524 40,005 40,005 120,015 702,834 40,268 40,268 120.804 741,524 902,859 40,005 942,864 40,268 902,859 40.005 942,864 40,268 Legs." included in Current liabilities above 862,854 902,596 862,854 902.695 28
ABBEYFIELD SCOTLAND LIMITED NOTES to the FINANCIAL STATEMENTS Icontinuedl For the ear ended 31 March 2022 15. Creditors.. amount falling after one year Icontinuedl Housing Propertles Held for Letting Deferred Income- Houslng Association Grant- Group and Parent Social Housing Grants As al 1 April 2021 Disposals 1,994,120 A5 al 31 March 2022 1,994,120 Amortisation As al 1 April 2021 Amortisalion Eliminated on disposal 1,051,256 40,005 As 8t 31 March 2022 1,091,261 Net Book Value As al 31 March 2022 902,859 As al 31 March 2021 942,864 16. Share capital - Group and Pargllt Shares of £1 each issued and fully paid At 1 April 2021 Issued in year Cancelled in year {151 Al 31 March 2022 86 Each member of the Association holds one share of £1 in the Association. These shares carry no rights lo dividend or dislribulions on a winding up, When a shareholder ceased lo be a member, that person's share is cancelled and the amount paid thereon becomes the property of the Association. Each member has a right lo vote al members. meetings. 17. Reserves Group Parent lal Revenue rese9 At 1 April 2021 (Deficlll for the year 4,159,197 4,771,199 1752,2551 {1,371,151} Al 31 March 2022 3,406,942 3,400.048 Openlng reserve Closing roserve Ib) Restrlcted reserves balance Income Forres Fund Highland Fund Airdrie Fund Abbeylield North Berwick Friends Fund Killeafn Fund Dock Paik Fund Haddinglon Fund 244,961 7,749 100 7.311 629 463 186,790 244,961 7,749 100 7,311 629 463 186,790 Closing balance 448,003 448,003 The Forres Fund was established with proceeds received following the dissolution of the Abbeylield Forres and Dislri¢l Society Limited. These funds are lo be used for the benefit of local Abbeyfie5d Houses. 29
ABBEYFIELD SCOTLAND LIMITED NOTES to the FINANCIAL STATEMENTS l¢ontinued} For the ear ended 31 March 2022 17. Reserves (continued} The Highland Fund was establlshed in 2008109 following the ¢10sure of the Abbeylield Nelhybridge Society. The money was left lo the A550cialion on the condition that il be used lo benefit those houses remaining in the Highland region. The Airdrie Fund was established in 2008109 following a receipt fro gardens al the Airdrie House. The Abbeylield North Berwick Friends Fund was established in December 2013 froln a donation of funds held by Abbeyfield North Berwick Friends Group. The funds were given on the following two conditions lo reflect the conditions on which the fund were originally given lo the Abbeyfield North Berwick Friends. The conditions are.. 1. The funds would be used exclusively for the benefit of residents of the North Berwlck Abbeyfield Home but would not be used for anything which would otherwise have been covered by normal monthly expenditure or which would benefit any one resident alone., lo be used for the upkeep of the 2. The former Chair Society wotjld be consu would be provided to them. and Secretary ndilure exceediii of North Berwick Abbeylield annual Statement ol Account The Kille3Tn Fund was established in December 2013 from a donation received from the lal chose to donate the credit on her late mo the benefit of the Killearn residents. on behalf of account for ersren The Dock Park Fund was established in March 2015 from a donation received from n behalf of the lathOse to donate the credit of £463.44 on her late falher's rent account for the benelil of the Dockpark House. The Haddington Fund was established in 2017118 from a donation from Abbeyfield East Linlon Society Ltd for the benefit of Abbeyfield Haddinglon, Paterson Court, Paterson Place, Haddinglon EH41 3DU. 2022 No. 18. Houslng stock- Group and Parent 2021 No. The number of units of accommodation in management at the year end was: Supported housing 142 143 19. Related party transactlons Members of the board are related parbes of the Association as defined by Financial Reporting Standard FRS102. There were no transactions betsNeen the organisation and ils related parties during the period other than the reimbursement of Iiavel and subsistence expenses for meetings. Two 12021.. two) board members claimed expenses lotalling £601 12021.. £504}. At the 31 March 2022 a balance of £Nil 12021.. £644,378) on the inter-company loan account was due lo Abbeyfield and £16,38012021'. £16.3801 of interest was charged on the loan during the year al a commercial rate. The board approved the write off of the inter-company loan in February 2022 lolalling £619,433. During the year Abbeyfield received a £1,20012021.' £1.2001 management fee from Crandeen Property Limited and £10,90912021.. £13,920) for the lease ol four12021'. five) properties from Abbeylield. At the 31 March 2022 a balan of £Nil (2020.. £13,115} was due lo Crandeen Property Limited. 30
ABBEYFIELD SCOTLAND LIMITED NOTES to the FINANCIAL STATEMENTS Icontinuedl For the ear ended 31 March 2021 20. Pension costs Abbeyfield Scotland Limited operates a defined contribution scheme in respect of the staff. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the organisation and amounted to £59,661 (2021.. £61,103). 21. Net cash generated ffom operating activities Group 2021 Parent 2021 2022 2022 (Deficilllsurplus for the year 1752,2551 1194,7561 (1,337,151) 1205.1661 Adjustment for non-cash items., Depreciation of tangible fixed assets Loss on disposal of fixed assets Gain on sale of fixed assets Impairment of investment piopèty Decreasellincrease) in trade and other debtors Increase in tradè and other creditors Adjustments for investing or financing aclivities.. Government grants ulilised in the year Interest receivable Share capital wrillen off Issue of share capital 117,475 49,314 119,571 114.095 115,019 41,797 1311,2091 1269,412} 41,494 114,045 {85,688) 673,766 19.329 41,680 114,045 29,387 46,566 {25,2911 26,335 140,0051 140,2671 140,0051 140,2671 12,6571 16,4861 119,037) 123,2381 1151 (15} Nel cash flow from operating activities 1428,1431 1457,7091 1445.1261 1422,0201 22. Cash and cash equivalents At 1 Aprll Movement 2021 in year At31 March 2022 Group Cash al bank and in hand 1,761,504 1158,945} 1,602,559 At 1 Aprll Movement 2021 in yeai At31 March 2022 Parent Cash at bank and in hand 1,756,137 1159.5481 1,596,589 31