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← Chescombe Trust Limited

2021-03-31-accounts

Registered number: 02585927 Charity number: 1002187

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the charitable company, its Trustees and 1
advisers
Trustees' report 2 - 7
Trustees' responsibilities statement 8
Independent auditors' report on the financial statements 9 - 12
Statement of financial activities 13
Balance sheet 14 - 15
Statement of cash flows 16
Notes to the financial statements 17 - 32

CHESCOMBE TRUST LIMITED (A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees

AJC Healy, Chair DA Jones SM Henderson (resigned 1 February 2021) DM Tremayne DJ Anderson G Silver

Company registered number

02585927

Charity registered number

1002187

Registered office

168 Gloucester Road, Patchway, Bristol, BS34 5BG

Company secretary

C Panter

Chief executive officer

P Morris

Independent auditors

Corrigan Accountants Limited, The Tramshed, Lower Park Row, Bristol, BS1 5BN

Senior Management Team

J Pearce, Registered Manager and House Manager C Horn, House Manager C Cook,House Manager MJ O'Shea, Registered Individual and Finance Manager (to 31 July 21) P Morris, Registered Individual (from 1 August 21) C Panter, Finance Manager (from 1 August 21)

Page 1

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the audited financial statements of the Company for the year 1 April 2020 to 31 March 2021. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 is not presented.

In setting objectives and planning for activities, the Trustees have given consideration to general guidance published by the charities commission relating to public benefit, including the guidance ‘public benefit: running a charity (PB2)’.

Chair’s Report:

There have been no major changes in the Chescombe Trust management team this year. The cohesion has aided the running of the Trust during the challenging times caused by COVID-19.

Staff turnover during this year has been low. . Overtime has increased, as staff have not been able to move between houses to reduce the potential spread of COVID-19, with a loss of flexibility. Actual cases of COVID-19 have been very low and we are fortunate and much relieved not to have lost any Residents or Staff to COVID19.

We sadly had a resident pass away in February 2021, not related to COVID-19 infection. This affected all the staff in the Trust deeply, guidelines limited the attendance at the Funeral, but we were fortunate that all that cared for the resident were able to attend the funeral.

One Trustee has had to resign due to work commitments and a replacement is being sought.

The Board & Managers continue to devote much time in discussions with the Local Authorities regarding the funding of Residents. Understandably this has proved more challenging than normal, due to COVID-19, however, our relationship with Local Authorities is good and we are still obtaining increased funding for residents.

Our financial position is reasonable and this will allow us to meet the Government requirement and our wish to paying the staff the ‘Living Wage’.

We have taken delivery of a new 7-seater Ford Galaxy to replace one of our vehicles. This has increased our capacity to take residents out in the future and allows grater separation of residents and staff whilst COVID-19 restrictions are in place.

The Pandemic of COVID-19, which has impacted everyone over the last year, has had a significant impact on many of our residents, whose daily routines, including trips out as part of supporting their needs, has been disrupted. This has resulted in some very challenging behaviours which deteriorated as the lockdown continued. These significant issues have been managed by the Staff with the support of NHS Professional bodies, who have been very supportive. The staff care and attention to the residents during this time has been exemplary. The Trust purchased an outdoor ‘pod’ with screen to facilitate visits, however this was not successful for several residents, due to their limited communication.

All Residents have now received both Covid-19 vaccinations and the Staff uptake of vaccination is greater than 90%.

The Trust’s Financial Manager, Mike O’Shea, is retiring this year after 9 years of working for Chescombe Trust. He has not only ensured the finances are in good order, but supported the Trust performing other duties outside of financial work, not least the support of Residents who would drop in to the office for a chat. Our thanks and gratitude are extended to him and it is hoped that he will have a long and fruitful retirement.

Page 2

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1. Trust Aims & Objectives

Chescombe provides a comfortable, homely environment in which individuals are supported to develop their personal skills in a community living setting, whilst maximising their potential to live a safe, fulfilling and happy lifestyle. At our most recent inspection by the CQC we received ‘Good’ across the board for our care.

2. Chescombe History

Chescombe Trust has been providing a safe, comfortable and stimulating home environment for adults with severe learning disabilities since 1991. In 2011 we moved from a large Victorian building into our current purpose-built facilities consisting of 3 homes and 3 self-contained flats. These smaller units provide an environment which is more like a home than was possible in the previous property.

3. Structure, Governance and Management

The company is registered as a charitable company, limited by guarantee and was set up by a Memorandum of Association on 27 February 1991.

Chescombe Trust is governed by a Board of 5 Trustees, from commercial business, i ndustry, and healthcare, whose skills and experience benefit the Trust. It has e xecutive control over finances and offers support to the CEO & Financial Manager with respect to business operations. All spends over an agreed amount must be put to the board for authorisation. Strategic guidance is also provided by the Board with respect to the changing environment in which the Trust has to operate.

The Board also provides support in respect of regulations as set out by the CQC and in developing the Care requirements of the Trust.

The Trustees hold board meetings every two months in which we discuss the operational and strategic needs of the Trust. An agenda is issued prior to the meeting and decisions made are recorded in the minutes. If needed the Board will vote to come to a decision, but usually a consensus is reached. Communication outside of the Board meeting is via email and telephone. Individual board members regularly visit the site to discuss various issues and adhoc meetings are held as required.

Management Structure of the Trust is as follows:

Chief Executive Officer - Philip Morris has overall operational responsibility and line responsibility for the managers.

Registered Manager with the CQC and Lead House Manager - Jo Pearce , Treetops House Manager House Manager - Chris Cook, House Manager of Lavender Lodge started House Manager - Clare Horn, House Manager of Orchard House

Nominated Individual with the CQC and Financial Manager – Michael O'Shea , Financial Manage r Michael O’Shea is retiring in middle of 2021 and is being replaced by Catherine Panter who will take on the role of Finance Manager. Philip Morris will become the Nominated Individual with the CQC.

Pay and remuneration of key management personnel are set by reviewing the market place for posts within the care sector and taking appropriate decisions accordingly.

4. Governance and Quality Assurance

As a Registered Care Home, Chescombe Trust is required to meet the standards set out by the Care Quality Commission, is currently rated as 'Good' and works continually to maintain and improve the quality of care it provides.

Page 3

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Prospective Trustees are identified by existing Trustees. They are initially invited to a Board meeting as observers. The current Board members are introduced and policies and working practices explained. If agreed by the Board, they are then invited to this role. All the Trustees give their time voluntarily. Trustees may claim reimbursement of their travel expenses. There were no Trustees' expenses in the year. There is no time limit to service on the Board either as a Trustee or as Chair of Trustees, but all members need to stand for re-election every 2 years.

The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

The Trust maintains a comprehensive Risk Assessment Review document which is reviewed on a regular basis and updated annually in February. Within the Risk Assessment Review document, a Risk Register is maintained covering 1. Strategic & Reputational Risk. 2. Operating Risk. 3. Compliance Risk and 4 Financial Risk.

The Trust’s insurances are reviewed by way of face to face meeting and site visit with an independent broker and cover is increased as necessary in line with current financial performance and assessed risks. This is backed up by a bi-annual visit from Ecclesiastical insurance who carry out a site survey and examine our records in respect of fire alarm testing, gas certification etc.

The C-19 pandemic has presented the Trust with significant challenges since the spring of 2020. The safety of our residents and staff remains an absolute priority. A specific set of risk assessments has been created to cover the additional risks presented by the virus. Sufficient PPE has been sourced and adequate stocks are being maintained. Stocks of test kits are also maintained and both residents and staff are being tested in line with government guidelines.

Should service user vacancies occur because of the virus good relationships are maintained with Local Authority Brokerage Managers ensuring that any void is filled without delay and minimising any financial impact.

5. Improvement to Facilities

Site

Orchard House

Lavender Lodge

Treetops

6. Financial Review

The Trust has a financial regime that operates in accordance with modern working practices; all spending is fully transparent, accountable and attributable. The use of cash as a spending medium is limited. Management accounts are produced in house on a monthly basis and are reviewed in depth by the Trustees for accuracy and an external accountant on a quarterly basis. Proper budgets are used to manage spending thus ensuring value for money whilst maintaining a pleasant environment. Access to residents' accounts is electronic and on an

Page 4

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

auditable basis, scrutinised by at least two but generally three officers of the Trust. The Trust is fully aware of its income and expenditure as it arises enabling complete understanding of its financial position on a monthly basis.

6.1 The financial highlights of 2020/21 have been:

Fee Income from charitable activities: £1,703,403 up from £1,641,871 (2020). Costs: £1,623,379 up from £1,532,290 (2020).

Surplus before donations and Personal Independence Payments (PIP) income £158,652 (2020: £109,580) (Total surplus £214,419 up £25,733 from a total surplus of £188,686 (2020)).

It should be noted that during the Financial Year 2020/2021 the Trust had the benefit of COVID-19 sustainability income from Local Authorities of £67,642 and Job Retention Scheme Grants from HMRC of £10,985. These funds have been spent on additional costs caused by Covid-19.

It is the Trustees' policy to ensure that the Trust is in a positive financial position based on fee income only, before voluntary donations are accounted for. Voluntary donations should be used to enhance the experience of our residents and The Trust should not be dependent on these to provide the basic needs of the residents.

Long term debt finance: Reduced by £9,607 (2020: £58,503) Donations and legacies income: £2,107 (2020: £30,888 ) PIP income : £53,660 (2020: £48,218 )

The Trustees are aware that the introduction of the living wage presents a serious challenge to the financial stability of the Trust. The Trust is continuing to make progress agreeing new fees with local authorities in accordance with the wage increases and recognise that this process will take time to complete.

The Trust has successfully negotiated new fees for the majority of its residents and has a small number of outstanding fee negotiations to complete. The Trust will continue with the policy of funding the care of the residents from fee income, and capital expenditure from donations or allocated capital within the reserves, thus ensuring the long term security, for the benefit of the current and future residents. Although we foresee interim periods where reserves may have to be utilised, these periods will be kept to a minimum.

6.2 Reserves

Free reserves (£299,294) are defined as unrestricted funds available for spending and are calculated by taking the total unrestricted funds of the charity (£2,486,344) and deducting any balances not available for spending i.e. fixed assets of £2,187,050.

For the purposes of short and medium term financial management, the trustees are concerned more with the management of working capital. The healthy working capital position is entirely in line with their policy of holding free resources sufficient to fund the eventuality of a material decline in incoming resources. The Trust have assessed the possible loss of income with a view to what the likely maximum loss could be in the short to medium term barring complete disaster. This has been assessed as a loss of one third of the residents with a commensurate drop in income of £49,000 per month. The Trust has also assessed the likely losses incurred during the period when the fee negotiations are being carried out, as well as any serious consequences of Covid-19. The Trust has a cash reserve policy to six months of reduced income (£294,000) with a variance of +/- £20,000, giving a total reserve of £274,000 to £314,000. This, in the opinion of the Trustees, would give adequate time to adjust the trusts costs, complete fee negotiations and/or fill some of the vacancies. It is planned that any excess cash in the Trust's accounts will be used in one of three ways:

  1. Capital expenditure to improve the facility.

  2. Capital expenditure to improve the resident's life experience.

  3. To reduce the Capital Loan.

The Trustees review the reserves policy on an annual basis.

Total funds held by the charity at 31 March 2021 were £2,606,117 of which £119,733 was restricted. The

Page 5

CHESCOMBE TRUST LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

majority of these funds, restricted and unrestricted, could only be realised by the sale of the property and other assets.

7. Goals and plans for the coming year

We have developed a comprehensive business plan for the next 5 to 10 years. The priorities within this plan, which will be the focus for the year, include: maintaining the high quality of care and planning for end-of-life care where appropriate; completing the staff grading and salary structure; ensuring appropriate and adequate funding for all residents from the Local Authorities; to use the funding to improve the life experience of our residents.

7.1 Maintaining the quality of care

The Trust will continue to provide stimulation and entertainment for its residents, however, currently these are subject Government/CQC Guidance during the COVID-19 pandemic. These will restart as easement and safety of our residents allows. Typical events are

7.2 Staff Grading and Salary Review

Historical grading and salaries anomalies continue to be removed as staff turnover and pay rises permit. Senior staff salaries are compared against similar positions in the appropriate sector and by reviews with the managers. However, the annual increase in the 'working wage' with the financial constraints from Local Council funding means increases in salaries are limited.

This year the following staff salary increases have been made: 3% April 2020 and 5% November 2020. In addition, for gratitude during the COVID-19 Pandemic a one off payment of £30 has been made to all staff and an increased christmas bonus from £30 to £100, has been made.

The Board with the CEO and Finance Manager are trying to improve this situation, however, the response of the local Councils can take well in excess of a year to achieve additional funding.

7.3 Increasing Income

All staff are receiving at least the 'working wage', which was implemented in April 16. This will impact on 'salary' costs. Pension auto-enrolment will also continue to impact our staffing costs. Increasing our income from donations and Local Authority funding, alongside continued cost-effective planning, are therefore a priority for the coming year.

8. Fundraising

Fundraising this year has been placed on hold due to COVID-19, however, as easement occurs events will be explored. However, there is limited summer left when most of our outdoor fund raising is carried out and this will mean limited activities in 2021. Typical public attended events in previous years have been:

Page 6

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

The events are organised and run by the staff and volunteers of Chescombe Trust. The Trust does not employ professional fundraisers.

The Trust has complied with fundraising standards and fundraising regulations.

Fundraising activity by the Trust from the Public is monitored by the Board of Trustees and the Trust’s Finance Manager. No complaints have been received by the Trust regarding its fundraising activities.

The Summer Fayre is a public event held in a public area where all donations and purchases are made voluntarily.

Senior members of staff are in attendance to ensure fundraising activity is appropriate. All events at the Fayre are protected by the Trust’s Liability insurances.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

• So far as that Trustee is aware, there is no relevant audit information of which the charitable company’s auditors are unaware

• that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any information needed by the charitable company’s auditors in connection with preparing their report and to establish that the charitable company’s auditors are aware of that information.

In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

Auditors

The auditors, Corrigan Accountants Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

This report was approved by the Trustees and signed on their behalf by:

AJC Healy

(Chair of Trustees) Date:25 August 2021

Page 7

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2021

The Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

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

Page 8

(A company limited by guarantee)

CHESCOMBE TRUST LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHESCOMBE TRUST LIMITED

Opinion

We have audited the financial statements of Chescombe Trust Limited (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Page 9

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHESCOMBE TRUST LIMITED (CONTINUED)

Other information

The other information comprises the information included in the annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement (set out on page 8), the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 10

(A company limited by guarantee)

CHESCOMBE TRUST LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHESCOMBE TRUST LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act..

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

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Page 11

(A company limited by guarantee)

CHESCOMBE TRUST LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHESCOMBE TRUST LIMITED (CONTINUED)

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Corrigan Accountants Limited

Chartered Accountants Statutory Auditors

The Tramshed

Lower Park Row

Bristol

BS1 5BN

25 August 2021

Corrigan Accountants Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 12

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Donations and legacies
3
Charitable activities
4
Total income
Expenditure on:
Charitable activities
5
Total expenditure
Net income/(expenditure)
Transfers between funds
15
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
1,107
1,794,684
1,795,791
1,574,189
1,574,189
221,602
1,824
223,426
2,262,918
223,426
2,486,344		 Restricted
funds
2021
£
1,000
41,007
42,007
49,190
49,190
(7,183)
(1,824)
(9,007)
128,780
(9,007)
119,773		 Total
funds
2021
£
2,107
1,835,691
1,837,798
1,623,379
1,623,379
214,419
-
214,419
2,391,698
214,419
2,606,117		 Total
funds
2020
£
30,888
1,690,088
1,720,976
1,532,290
1,532,290
188,686
-
188,686
2,203,012
188,686
2,391,698

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 17 to 32 form part of these financial statements.

Page 13

CHESCOMBE TRUST LIMITED (A company limited by guarantee) REGISTERED NUMBER: 02585927

BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one
year
13
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
14
Net assets
Total net assets
Charity funds
Restricted funds
15
Unrestricted funds
15
Total funds		 55,772
640,829
696,601
(96,097)		 2021
£
2,187,050
2,187,050
600,504
2,787,554
(181,437)
2,606,117
2,606,117
119,773
2,486,344
2,606,117		 82,907
409,820
492,727
(97,009)		 2020
£
2,187,024
2,187,024
395,718
2,582,742
(191,044)
2,391,698
2,391,698
128,780
2,262,918
2,391,698

The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 145 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

Page 14

CHESCOMBE TRUST LIMITED (A company limited by guarantee) REGISTERED NUMBER: 02585927

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021

The financial statements were approved and authorised for issue by the Trustees on 25 August 2021 and signed on their behalf by:

AJC Healy

(Chair of Trustees)

The notes on pages 17 to 32 form part of these financial statements.

Page 15

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Cash flows from operating activities
Net cash generated from operating activities
Cash flows from investing activities
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
271,783
400
(32,119)
(31,719)
(9,055)
(9,055)
231,009
409,820
640,829		 2020
£
201,101
8,499
(58,311)
(49,812)
(60,098)
(60,098)
91,191
318,629
409,820

The notes on pages 17 to 32 form part of these financial statements

Page 16

(A company limited by guarantee)

CHESCOMBE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

The company is a private company limited by guarantee, and a charity registered in England and Wales. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Chescombe Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

The financial statements have been prepared on a going concern basis. There are no material uncertainties relating to events or conditions that may cast doubt on the charity's ability to continue as a going concern.

2.3 Income

All income is recognised once the charitable company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income from residential care fees is recognised as services are provided.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All costs are allocated directly to the single activity of Care of Residents.

Support costs are those costs incurred directly in support of expenditure on the objects of the company. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charitable company's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

Page 17

(A company limited by guarantee)

CHESCOMBE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charitable company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £200 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives .

Depreciation is provided on the following basis:

Freehold property - No depreciation
Motor vehicles - 25% reducing balance
Fixtures and fittings - 20% reducing balance
Computer equipment - 25% cost

No depreciation has been provided on the freehold property as the charge would be immaterial due to the high residual value of the property and the length of its remaining useful economic life.

2.7 Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

2.8 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 18

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.9 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charitable company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.10 Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of loans which are subsequently measured at amortised cost using the effective interest method.

2.11 Operating leases

Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.

2.12 Pensions

The charitable company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charitable company to the fund in respect of the year.

2.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charitable company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charitable company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 19

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. Income from donations and legacies

Donations
Total 2020		 Unrestricted
funds
2021
£
1,107
3,894		 Restricted
funds
2021
£
1,000
26,994		 Total
funds
2021
£
2,107
30,888		 Total
funds
2020
£
30,888

4. Income from charitable activities

Care of Residents
Total 2020		 Unrestricted
funds
2021
£
1,794,684
1,690,088		 Restricted
funds
2021
£
41,007
-		 Total
funds
2021
£
1,835,691
1,690,088		 Total
funds
2020
£
1,690,088

5. Analysis of expenditure on charitable activities Summary by fund type

Direct costs - Care of Residents
Total 2020		 Unrestricted
funds
2021
£
1,574,189
1,523,255		 Restricted
funds
2021
£
49,190
9,035		 Total
funds
2021
£
1,623,379
1,532,290		 Total
funds
2020
£
1,532,290

Page 20

(A company limited by guarantee)

CHESCOMBE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Analysis of income from charitable activities by type of income

Fee Income
Personal Independence Payments
Covid-19 sustainability income
JRS Grant
Total 2021
Total 2020		 Unrestricted
funds
2021
£
1,703,403
53,660
26,635
10,985
1,794,683
1,690,089		 Restricted
funds
2021
£
-
-
41,007
-
41,007
-		 Total
funds
2021
£
1,703,403
53,660
67,642
10,985
1,835,690
1,690,089		 Total
funds
2020
£
1,641,871
48,218
-
-
1,690,089

7. Analysis of expenditure by activities

Care of Residents
Total 2020		 Activities
undertaken
directly
2021
£
1,523,268
1,432,330		 Support
costs
2021
£
100,111
99,960		 Total
funds
2021
£
1,623,379
1,532,290		 Total
funds
2020
£
1,532,290

Page 21

(A company limited by guarantee)

CHESCOMBE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Depreciation
Residents' food costs
Day and social care costs
Other residents' costs
Agency costs
Staff training and DBS checks
Light and heat
Rates and water
Insurance
Cleaning and waste disposal
Repairs and maintenance
Mortgage Interest
Sundries
Registration
Motor and travel costs
Postage and stationery
Telephone
Computer costs
Subscriptions
Bank charges
(Profit)/ loss on disposal of fixed assets
Total 2021
Total 2020		 Care of
Residents
2021
£
1,257,313
26,293
61,272
1,458
1,566
-
3,764
24,387
12,648
26,579
25,080
34,448
11,608
1,551
2,388
6,522
4,188
4,369
4,126
7,370
937
5,401
1,523,268
1,432,330		 Total
funds
2021
£
1,257,313
26,293
61,272
1,458
1,566
-
3,764
24,387
12,648
26,579
25,080
34,448
11,608
1,551
2,388
6,522
4,188
4,369
4,126
7,370
937
5,401
1,523,268
1,432,330		 Total
funds
2020
£
1,145,546
29,204
59,961
16,750
1,005
3,465
12,092
22,205
10,914
27,101
24,082
36,466
13,992
365
2,388
13,213
3,737
3,313
1,069
6,294
1,134
(1,966)
1,432,330

Page 22

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. Analysis of expenditure by activities (continued)

Analysis of support costs

Care of
Residents
2021
Total
funds
2021
£
£
Staff costs
85,109
85,109
Legal and professional
9,008
9,008
Auditors' remuneration
5,322
5,322
Trustees' indemnity insurance
672
672
Trustees' expenses
-
-
Total 2021
100,111
100,111
Total 2020
99,960
99,960
During the year, the company incurred the following Governance costs:
£15,002 (2020 - £21,415) included within the table above in respect of Care of Residents.		 Total
funds
2020
£
78,545
15,535
5,100
672
108
99,960

8. Auditors' remuneration

2021 2020
£ £
Fees payable to the charitable company's auditor for the audit of the
charitable company's annual accounts 5,322 5,100

9. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2021
£
1,193,451
101,214
47,757
1,342,422		 2020
£
1,098,823
84,907
40,362
1,224,092

Page 23

(A company limited by guarantee)

CHESCOMBE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9. Staff costs (continued)

The average number of persons employed by the charitable company during the year was as follows:

2021 2020
No. No.
Employees 54 55

No employee received remuneration amounting to more than £60,000 in either year.

The total remuneration and benefits received by key management personnel during the year was £210,685 (2020: £202,516).

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, expenses totalling £ 0 were reimbursed (2020 - £108 to 1 Trustee) . Expenses reimbursed related to travel costs.

11. Tangible fixed assets

Cost or valuation
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021		 Freehold
property
£
2,085,690
-
-
2,085,690
-
-
-
-		 Motor
vehicles
£
78,685
24,563
(24,297)
78,951
36,073
13,598
(22,473)
27,198		 Fixtures and
fittings
£
160,083
7,556
(24,123)
143,516
102,473
12,238
(20,146)
94,565		 Computer
equipment
£
12,955
-
-
12,955
11,843
456
-
12,299		 Total
£
2,337,413
32,119
(48,420)
2,321,112
150,389
26,292
(42,619)
134,062

Page 24

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

11. Tangible fixed assets (continued)

Net book value
At 31 March 2021
At 31 March 2020		 Freehold
property
£
2,085,690
2,085,690		 Motor
vehicles
£
51,753
42,612		 Fixtures and
fittings
£
48,951
57,610		 Computer
equipment
£
656
1,112		 Total
£
2,187,050
2,187,024

Included in freehold property is land purchased at a cost of £463,678 (2020: £463,678) which is not depreciated. The Trust's premises were built to a high standard and completed in 2011. No depreciation has been provided on the freehold property as the charge would be immaterial due to the high residual value of the property and its remaining useful economic life. Freehold property also includes interest charges of £98,490 incurred during the period of construction of the property.

12. Debtors

Due within one year
Trade debtors
Other debtors		 2021
£
52,178
3,594
55,772		 2020
£
76,401
6,506
82,907

13. Creditors: Amounts falling due within one year

Other loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2021
£
9,516
9,724
25,335
31,726
19,796
96,097		 2020
£
8,963
11,554
19,999
34,338
22,155
97,009

Page 25

(A company limited by guarantee)

CHESCOMBE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Creditors: Amounts falling due after more than one year

Other loans
Included within the above are amounts falling due as follows:
Between one and two years
Other loans
Between two and five years
Other loans
Over five years
Other loans		 2021
£
181,437
2021
£
10,104
34,204
137,129		 2020
£
191,044
2020
£
9,516
32,638
148,890

The above loan is secured on the freehold property of the charitable company.

Page 26

(A company limited by guarantee)

CHESCOMBE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

15. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds - all funds
Restricted funds
Motor Vehicle Capital Fund
Land and Buildings Capital
Fund
Fixtures and Fittings Capital
Fund
Galloway Capital Fund
Covi-19 Sustainability Fund
Total of funds		 Balance at 1
April 2020
£
2,262,918
1,824
100,000
6,711
20,245
-
128,780
2,391,698		 Income
£
1,795,791
-
-
-
1,000
41,007
42,007
1,837,798		 Expenditure
£
(1,574,189)
-
-
(1,342)
(6,841)
(41,007)
(49,190)
(1,623,379)		 Transfers
in/out
£
1,824
(1,824)
-
-
-
-
(1,824)
-		 Balance at
31 March
2021
£
2,486,344
-
100,000
5,369
14,404
-
119,773
2,606,117

Page 27

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

15. Statement of funds (continued)

Description of Funds:

Motor Vehicle Capital Fund

A grant was received from the Social Enterprise Investment Fund for the purchase of three motor vehicles. The Trust was not allowed to dispose of these vehicles without prior approval from the grantor, unless the Trust purchased a similar asset of the same or equal value. The grant body subsequently agreed that the vehicles could be disposed and remaining funds released to unrestricted funds to be spent on the general charitable objectives of the charity. The last of the three motor vehicles originally purchased with these funds was disposed of in the year. A transfer of £1,824 was made from this fund to the unrestricted fund (2020: £5,723), The fund has been closed.

Land and Buildings Capital Fund

A grant of £100,000 was received from Future Builders England Ltd towards the land purchase and build costs associated with the new centre. A restriction is placed on this grant for 25 years from 16 October 2008.

Fixtures and Fittings Capital Fund

A grant of £50,000 was received from Future Builders England Ltd towards the cost of fitting out the new centre. A restriction is placed on this grant for 25 years from 16 October 2008.

Galloway Capital Fund

The Galloway Motor Vehicle Capital Fund has been renamed the Galloway Capital Fund as the trust received a further donation of £1000 from a parent of one the residents. The donation was restricted to the purchase of a television. In the previous year a very generous donation of £26,994 was received for the purchase of a new vehicle.

Covid 19 Sustainability Income

Included within the grant income received to mitigate the impacts of Covid 19 was income totalling £41,007 from South Gloucestershire Council which was for specific costs relating to the pandemic. That income, and the related costs, have therefore been allocated to a separate fund.

Page 28

CHESCOMBE TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

15. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds - all funds
Restricted funds
Motor Vehicle Capital Fund
Land and Buildings Capital
Fund
Fixtures and Fittings Capital
Fund
Galloway Capital Fund
Total of funds		 Balance at
1 April 2019
£
2,086,468
8,155
100,000
8,389
-
116,544
2,203,012		 Income
£
1,693,982
-
-
-
26,994
26,994
26,994		 Expenditure
£
(1,523,255)
(608)
-
(1,678)
(6,749)
(9,035)
(1,532,290)		 Transfers
in/out
£
5,723
(5,723)
-
-
-
(5,723)
-		 Balance at
31 March
2020
£
2,262,918
1,824
100,000
6,711
20,245
128,780
2,391,698

16. Summary of funds Summary of funds - current year

General funds
Restricted funds		 Balance at 1
April 2020
£
2,262,918
128,780
2,391,698		 Income
£
1,795,791
42,007
1,837,798		 Expenditure
£
(1,574,189)
(49,190)
(1,623,379)		 Transfers
in/out
£
1,824
(1,824)
-		 Balance at
31 March
2021
£
2,486,344
119,773
2,606,117

Page 29

(A company limited by guarantee)

CHESCOMBE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Summary of funds (continued)

Summary of funds - prior year

General funds
Restricted funds		 Balance at
1 April 2019
£
2,086,468
116,544
2,203,012		 Income
£
1,693,982
26,994
1,720,976		 Expenditure
£
(1,523,255)
(9,035)
(1,532,290)		 Transfers
in/out
£
5,723
(5,723)
-		 Balance at
31 March
2020
£
2,262,918
128,780
2,391,698

17. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
2,067,277
Current assets
696,600
Creditors due within one year
(96,096)
Creditors due in more than one year
(181,437)
Total
2,486,344
Analysis of net assets between funds - prior year		 Restricted
funds
2021
£
119,773
-
-
-
119,773		 Total
funds
2021
£
2,187,050
696,600
(96,096)
(181,437)
2,606,117
Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2020
£
2,058,244
492,727
(97,009)
(191,044)
2,262,918		 Restricted
funds
2020
£
128,780
-
-
-
128,780		 Total
funds
2020
£
2,187,024
492,727
(97,009)
(191,044)
2,391,698

Page 30

(A company limited by guarantee)

CHESCOMBE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Loss/(profit) on the sale of fixed assets
Decrease/(increase) in debtors
Decrease in creditors
Net cash provided by operating activities
19.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
20.
Analysis of changes in net debt
At 1 April
2020
Cash flows
£
£
Cash at bank and in hand
409,820
231,009
Debt due within 1 year
(8,963)
8,963
Debt due after 1 year
(191,044)
-
209,813
239,972		 2021
£
214,419
26,293
5,401
27,135
(1,465)
271,783
2021
£
640,829
640,829
Other non-
cash
changes
£
-
(9,516)
9,607
91		 2020
£
188,686
29,204
(1,966)
(7,623)
(7,200)
201,101
2020
£
409,820
409,820
At 31 March
2021
£
640,829
(9,516)
(181,437)
449,876

21. Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £47,757 (2020 - £40,362).

Page 31

(A company limited by guarantee)

CHESCOMBE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. Pension commitments (continued)

Contributions totalling £7,088 (2020 - £12,258) were payable to the fund at the balance sheet date and are included in creditors.

22. Assets held on trust

The charity holds funds on trust for three residents (2020 - one resident). At 31 March 2021, the amount held on trust was £3,421. (2020- £2,148). These amounts are not included on the charity's balance sheet.

23. Operating lease commitments

At 31 March 2021 the charitable company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2021
£
839
1,258
2,097		 2020
£
839
2,097
2,936

24. Related party transactions

There were no related party transactions in the year other than the reimbursement of expenses disclosed in Note 10.

Page 32