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2023-03-31-accounts

Chescombe Trust Limited (A company limited by guarantee)

Trustees' Report and Financial Statements for the Year Ended 31 March 2023

Registered number: 02585927

Charity number: 1002187

Chescombe Trust Limited

Contents

Reference and administrative details of the charitable company, its Trustees
and Advisers
1
Trustees' report 2 to 9
Statement of Trustees' Responsibilities 10
Independent Auditors' Report 11 to
14
Statement of Financial Activities 15
Balance Sheet 16 to
17
Statement of Cash Flows 18
Notes to the accounts 19 to
33

Chescombe Trust Limited

Reference and administrative details of the charitable company, its Trustees and Advisers

Trustees

A J C Healy, Chair

D W J Anderson

D A Jones

G R Silver

D M Tremayne

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Company Registration Number

02585927

Charity Registration Number

1002187

Registered office

168 Gloucester Road Patchway Bristol BS34 5BG Secretary

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C M Panter

Chief Executive Officer

P Morris

Independent Auditors

Corrigan Accountants Limited 1st Floor 25 King Street Bristol BS1 4PB Senior Management Team

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J Pearce, Registered Manager and House Manager

C Horn, House Manager C Cook, House Manager

P Morris, Registered Individual

Page 1

C Panter, Finance Manager Page I

Chescombe Trust Limited

Trustees' report For the year ended 31 March 2023

The Trustees present their annual report together with the audited financial statements of the Company for the year 1 April 2022 to 31 March 2023. 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:

We are finally moving back to normal service with residents and staff returning to a more sociable way of life. The Houses are celebrating Birthdays for each of the residents as a community as well as special celebrations such as the King's Coronation.

We have recommenced resident holidays as Chescombe believe that residents should always have the opportunity for a holiday.

The easing of COVID-19 regulations now means that staff can move between houses to provide further house flexibility and support. The infection control measures although still in place are not as severe as in the early stages of COVID.

Staff turnover has increased and we continually struggle to recruit replacements. The increase in the living wage plus competing with other sectors continues to be a challenge.

As in past years the Board and Managers continue to devote much time in discussions with the Local Authorities regarding the funding of Residents. As would be expected in the current climate, funding is difficult, however we are making progress and relationships with Local Authorities remain good.

Chescombe is now fully occupied with 19 residents and our financial position is reasonable. Despite the pressure on salaries, we remain confident about the future of our service.

Due to the pandemic, the past two years have had an inward looking focus, the protection and support of our residents and staff being paramount. We are now beginning to look at the long-term future of Chescombe.

Page 2

Chescombe Trust Limited

Trustees' report For the year ended 31 March 2023

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, industry, and healthcare, whose skills and experience benefit the Trust. It has executive 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.

The management structure of the Trust is as follows:

Chief Executive Officer and Nominated Individual with CQC - Philip Morris, who has overall operational responsibility and line responsibility for the managers

Registered Manager with the CQC and Lead House Manager - Jo Pearce, House Manager of Treetops

Page 3

House Manager - Chris Cook, House Manager of Lavender Lodge House Manager - Clare Horn, House Manager of Orchard House

Page 3

Chescombe Trust Limited

Trustees' report For the year ended 31 March 2023

Financial Manager - Catherine Panter, Financial Manager started in April 2021

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.

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 visits from Ecclesiastical insurance who carry out a site survey and examine our records in respect of fire alarm testing, gas certification etc.

The Covid 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 and is adapted as governmental and local authority guidelines are changed. 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 guidelines.

Page 4

Chescombe Trust Limited

Trustees' report For the year ended 31 March 2023

5. Summary of Changes for 2022/23

COVID 19

Residents

Site

• A major upgrade to the internet and Wi-Fi is has been completed, and this has seen improved access to the cloud-based documentation system used by Chescombe. Residents have also noticed improved performance in the streaming services they use.

• Each house has had the decorators in for repainting of rooms, doors, hallways, and stairs. Rooms for the new service users were completely redecorated and refreshed and some new furniture purchased. Treetops had a new wet room fitted to accommodate for the change in needs of the service user.

Staffing

• To continue to stay ahead of the Living wage legislation and compete with other sectors vying for staff, there have been three salary increases: April 2022 (3%), August 2022 (3%) and March 2023 (8%)

Local Authority

Fundraising

Page 5

Chescombe Trust Limited

Trustees' report For the year ended 31 March 2023

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. Access to residents' accounts is electronic and on an 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 2022/2023 have been:

Fee Income from charitable activities: £1,820,630 up from £1,676,809 (2022). Costs: £1,776,802 up from £1,717,857 (2022).

Surplus before donations, COVID-19 grant and Personal Independence Payments (PIP) income £55,503 (2022 loss: £41,048). Total surplus £104,992 up £31,555 from a total surplus of £73,437 (2022).

It should be noted that during the Financial Year 2021/2022 the Trust had the benefit of COVID-19 sustainability income from Local Authorities of £52,385. These funds were 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 £10,753 (2022: £10,152 reduction) Donations and legacies income: £2,461 (2022: £11,652) PIP income: £47,028 (2022: £50,448)

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 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 (£536,793) are defined as unrestricted funds available for spending and are calculated by taking the total unrestricted funds of the charity (£2,672,896, 2022: £2,559,282) and deducting any balances not available for spending i.e. fixed assets of £2,136,103 (2022: £2,149,355).

Page 6

Chescombe Trust Limited

Trustees' report For the year ended 31 March 2023

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 £51,000 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 (£306,000) with a variance of +/ £20,000, giving a total reserve of £286,000 to £326,000. 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.

  4. To expand the offering of the Trust to more residents.

The Trustees review the reserves policy on an annual basis.

Total funds held by the charity at 31 March 2023 were £2,784,546 (2022: £2,679,554) of which £111,650 (2022: £120,272) was restricted. The 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. Typical events are:

Page 7

Page 7

Chescombe Trust Limited

Trustees' report For the year ended 31 March 2023

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 'living wage' with the financial constraints from Local Council funding means increases in salaries are limited.

The Board, along 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 above the ' living wage’. 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

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.

Page 8

Chescombe Trust Limited

Trustees' report For the year ended 31 March 2023

Disclosure of information to auditors

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

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.

Approved by the Trustees on .................... and signed on its behalf by:

......................................... A J C Healy Chair of Trustees

Page 9

Chescombe Trust Limited

Statement of Trustees' Responsibilities For the year ended 31 March 2023

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 year. 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 10

Chescombe Trust Limited

Independent Auditor's Report to the trustees of Chescombe Trust Limited

Opinion

We have audited the financial statements of Chescombe Trust Limited (the 'charitable company') for the year ended 31 March 2023, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and the related notes including 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 Auditor’s 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 11

Chescombe Trust Limited

Independent Auditor's Report to the trustees of Chescombe Trust Limited

Other information

The other information comprises the information included in the annual report, other than the financial statements and our Auditor’s 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 Statement of Trustees' Responsibilities (set out on page 10), 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 12

Chescombe Trust Limited

Independent Auditor's Report to the trustees of Chescombe Trust Limited

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 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 Auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of 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 specific procedures for this engagement and the extent to which these 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

Page 13

occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

Page 13

Chescombe Trust Limited

Independent Auditor's Report to the trustees of Chescombe Trust Limited

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at https://www.frc.org.uk/OurWork/Audit/Audit-and-assurance

/Standards-and-guidance/Standards-and -guidance-for-auditors/Auditorsresponsibilities-for-audit /Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor's report.

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, Statutory Auditor 1st Floor 25 King Street Bristol, BS1 4PB

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

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

Page 14

Chescombe Trust Limited

Statement of Financial Activities (incorporating income and expenditure account) for the Year Ended 31 March 2023

Not
e
Unrestricte
d funds
£
Restricted
funds
£
Total funds
2023
£
Total funds
2022
£
Income from:
Donations and legacies
3
2,461
-
2,461
11,652
Charitable activities
4
1,879,333
-
1,879,333
1,779,642
Total Income 1,881,794
-
1,881,794
1,791,294
Expenditure on:
Charitable activities
5
(1,768,180)
(8,622)
(1,776,802)
(1,717,857)
Net income/
(expenditure)
113,614
(8,622)
104,992
73,437
Transfer between funds
15
-
-
-
-
Net movement in funds 113,614
(8,622)
104,992
73,437
Reconciliation of funds
Fund balances brought
forward
2,559,282
120,272
2,679,554
2,606,117
Fund balances carried
forward
2,672,896
111,650
2,784,546
2,679,554

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

The notes on pages 19 - 33 form part of these accounts.

Income and expenditure by fund is shown in note 15.

There are no recognised gains or losses other than the results for the year as set out above.

Page 15

Chescombe Trust Limited

Balance Sheet as at 31 March 2023

Not
e
2023
£
2022
£
Fixed assets
Tangible assets
11
2,136,103
2,149,355
Current assets
Debtors
12
92,847
65,853
Cash at bank and in hand
18
815,452
708,417
908,299
774,270
Current liabilities
Creditors: Amounts falling due within one year
13
(99,324)
(72,786)
Net currentassets 808,975
701,484
Total assets less current liabilities 2,945,078
2,850,839
Creditors: Amounts falling due after more than one
year
14
(160,532)
(171,285)
Total netassets 2,784,546
2,679,554
The funds of the charity:
Unrestricted funds
15
2,672,896
2,559,282
Restricted funds
15
111,650
120,272
Total funds 2,784,546
2,679,554

Page 16

Chescombe Trust Limited

Balance Sheet as at 31 March 2023

The notes on pages 19 - 33 form part of these accounts.

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.

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

......................................... A J C Healy Director

Page 17

Chescombe Trust Limited

Statement of Cash Flows for the Year Ended 31 March 2023

Not
e
2023
£
2022
£
Cash fows from operating activities
Net income 104,992
73,437
Adjustments for non-cash items
Depreciation
11
19,551
23,836
Loss on disposal of tangible fxed assets 973
1,681
125,516
98,954
Working capital adjustments
Increase in debtors
12
(26,994)
(10,081)
Increase/(decrease) in creditors
13
25,938
(23,899)
Net cash fows from operating activities 124,460
64,974
Cash fows from investing activities
Sale of tangible fxed assets -
16,910
Purchase of tangible fxed assets
11
(7,272)
(4,732)
Net cash fows from investing activities (7,272)
12,178
Cash fows from fnancing activities
Repayment of loans and borrowings (10,153)
(9,564)
Net increase in cash and cash equivalents 107,035
67,588
Cash and cash equivalents at 1 April 708,417
640,829
Cash and cash equivalents at 31 March 815,452
708,417
The notes on pages 19 - 33 form part of these accounts.

Page 18

Chescombe Trust Limited

Notes to the financial statements for the Year Ended 31 March 2023

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

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented unless otherwise stated.

Basis of preparation

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.

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.

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.

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Chescombe Trust Limited

Notes to the financial statements for the Year Ended 31 March 2023

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.

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.

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:

Depreciation is provided on the following basis:
Freehold property No depreciation
Motor vehicles 25% reducing balance
Fixtures and fttings 20% reducing balance
Computer equipment 25% on 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.

Debtors

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

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Chescombe Trust Limited

Notes to the financial statements for the Year Ended 31 March 2023

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.

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.

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.

Operating leases

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

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.

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 21

Chescombe Trust Limited

Notes to the financial statements for the Year Ended 31 March 2023

3 Income from donations and legacies 3 Income from donations and legacies 3 Income from donations and legacies
Unrestric
ted
Restricte
d
2023
£
£
-
2,461
Restricte
d
2022
£
£
6,364
11,652
£
Donations 2,461
Unrestrict
ed
£
Donations 5,288
4 Income from charitable activities
Unrestric
ted
Restricte
d
2023
£
£
-
1,879,333
Restricte
d
2022
£
£
52,385
1,779,642
£
Care of Residents 1,879,333
Unrestric
ted
£
Care of Residents 1,727,257
5 Analysis of expenditure on charitable activities
Summary by fund type Restricte
d
2023
£
£
8,622
1,776,802
Restricte
d
2022
£
£
58,250
1,717,857
Unrestric
ted
£
Direct costs - Care of Residents 1,768,180
Unrestric
ted
£
Direct costs - Care of Residents 1,659,607

Page 22

Chescombe Trust Limited

Notes to the financial statements for the Year Ended 31 March 2023

6 Analysis of income from charitable activities by type of income 6 Analysis of income from charitable activities by type of income 6 Analysis of income from charitable activities by type of income 6 Analysis of income from charitable activities by type of income 6 Analysis of income from charitable activities by type of income
Unrestrict
ed
Restricte
d
2023
£
1,820,630
47,028
-
11,675
1,879,333
2022
£
1,676,809
50,448
52,385
-
1,779,642
£ £
Fee Income 1,820,630 -
Personal Independence Payments 47,028 -
Covid-19 sustainability income - -
Cost of living income 11,675 -
1,879,333 -
Unrestric
ted
Restricte
d
£ £
Fee Income 1,676,809 -
Personal Independence Payments 50,448 -
Covid-19 sustainability income - 52,385
Cost of living income - -
1,727,257 52,385
7 Analysis of expenditure by activities
Activities
undertak
en
directly
Support
costs
2023
£
1,776,802
2022
£
£ £
Care of Residents 1,660,820 115,982
Activities
undertak
en
directly
Support
costs
£ £

Page 23

Care of Residents

1,607,361 110,496 1,717,857

Page 23

Chescombe Trust Limited

Notes to the financial statements for the Year Ended 31 March 2023

Analysis of direct costs
Care of
Residents
2023
Care of
Residents
2022
£ £
Staf costs 1,325,437 1,323,294

Depreciation
19,551 23,836
Residents' food costs 78,785 80,172
Day and social care costs 8,472 1,237
Other residents' costs 1,872 7,488
Staf training and DBS checks 13,781 4,848

Light and heat
29,071 24,492
Rates and water 18,861 12,677
Insurance 35,022 34,070
Cleaning and waste disposal 20,790 18,769
Repairs and maintenance 64,226 35,138
Mortgage interest 10,509 11,099
Sundries 30 1,814
Registration 2,388 2,381
Motor and travel costs 11,646 7,577
Postage and stationery 2,392 2,773
Telephone 6,919 4,665
Computer costs 956 1,278
Subscriptions 8,071 7,042
Bank charges 1,068 1,030
(Proft) / loss on disposal of fxed assets 973 1,681
1,660,820 1,607,361
Analysis of support costs
Care of
Residents
2023
Care of
Residents
2022
£ £
Staf costs 94,933 93,637

Legal and professional
11,696 9,873
Auditor's remuneration 8,175 6,050
Trustees' indemnity insurance 1,178 936
Trustees' expenses - -
115,982 110,496

During the year, the company incurred the following Governance costs: £21,049 (2022 - £16,859) included within the table above in respect of Care of Residents.

Page 24

Chescombe Trust Limited

Notes to the financial statements for the Year Ended 31 March 2023

8 Auditor's remuneration
2023
£
2022
£
Fees payable to the charitable company's auditor for the
audit of the charitable company's annual accounts
6,900
6,050
9 Staf costs

The aggregate payroll costs were as follows:

9 Staf costs
The aggregate payroll costs were as follows:
2023
£
2022
£
Wages and salaries 1,257,665
1,260,929
Social security costs 114,388
107,738
Contribution to defned contribution pension schemes 48,317
48,264
1,420,370
1,416,931

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

year was as follows:
2023
No
2022
No
Employees 50
54

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 £238,375 (2022: £229,535).

1 0[Remuneration of the Strategic Leadership Team]

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).

During the year ended 31 March 2023, expenses totalling £0 were reimbursed (2022 - £0).

Page 25

Chescombe Trust Limited

Notes to the financial statements for the Year Ended 31 March 2023

1
1 Tangible fxed assets
1
1 Tangible fxed assets
Freehold
property
£
Motor
vehicles
£
Fixtures
and fttings
£
Computer
equipment
£
Total
£
Cost or valuation
At 1 April 2022 2,068,780
78,951
135,344
13,738 2,296,813
Additions -
-
7,272
-
7,272
Disposals -
-
(3,510)
(2,787)
(6,297)
At 31 March 2023 2,068,780
78,951
139,106
10,951 2,297,788
Depreciation
At 1 April 2022 -
40,136
94,369
12,953
147,458
Charge for the year -
9,704
9,455
392
19,551
Eliminated on
disposals
-
-
(2,537)
(2,787)
(5,324)
At 31 March 2023 -
49,840
101,287
10,558
161,685
Net book value
At 31 March 2023 2,068,780
29,111
37,819
393 2,136,103
At 31 March 2022 2,068,780
38,815
40,975
785 2,149,355

Included in freehold property is land purchased at a cost of £463,678 (2022: £463,678) which is not depreciated. Nor is the building 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.

period of construction of the property.
1
2 Debtors
2023
£
2022
£
Due within one year
Trade debtors 85,263
58,491
Other debtors 6,737
4,623
Prepayments and accrued income 847
2,739
92,847
65,853

Page 26

Chescombe Trust Limited

Notes to the financial statements for the Year Ended 31 March 2023

1
3 Creditors: amounts falling due within one year
2023
£
2022
£
Other loans 10,704
10,104
Trade creditors 12,974
2,827
Other taxation and social security 32,356
26,241
Other creditors 14,429
14,236
Accruals and deferred income 28,861
19,378
99,324
72,786
1
4 Creditors: amounts falling due after one year
2023
£
2022
£
Other loans 160,532
171,285
Included in the creditors are the following amounts due after more than fve years:
2023
£
2022
£
Between one and two years
Other loans 11,409
10,705
2023
£
2022
£
Between two and fve years
Other loans 38,541
36,336
2023
£
2022
£
Over fve years
Other loans 110,582
124,244

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

Page 27

Chescombe Trust Limited

Notes to the financial statements for the Year Ended 31 March 2023

1 5[Statement of funds]

1
5 Statement of funds
1
5 Statement of funds
Statement of funds - current year
Balance at
1 April
2022
£
Income
£
Expenditur
e
£
Transfers
in/out
£
Balance at
31 March
2023
£
Unrestricted funds
General funds
2,559,282
1,881,794
(1,768,180)
-
2,672,896
Restricted funds
Land and Buildings
Capital Fund
100,000
-
-
-
100,000
Fixtures and Fittings
Capital Fund
4,295
-
(859)
-
3,436
Galloway Capital Fund
10,813
-
(2,639)
-
8,174
Treetops House 5,164
-
(5,124)
-
40
Total restricted
funds
120,272
-
(8,622)
-
111,650
Total funds 2,679,554
1,881,794
(1,776,802)
-
2,784,546

Page 28

Chescombe Trust Limited

Notes to the financial statements for the Year Ended 31 March 2023

Details of funds

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 Capital Fund represents donations received from a parent of one of the residents. The donations relate to the purchase of capital items such as a television and a motor vehicle.

Covid 19 Sustainability Income

Included within the 2022 grant income received to mitigate the impacts of Covid 19 was income totalling £52,386 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.

Orchard House and Treetops House funds

These smaller funds relate to donations which are restricted to expenditure on one of the Charity’s three houses.

Page 29

Chescombe Trust Limited

Notes to the financial statements for the Year Ended 31 March 2023

Statement of funds - prior year

Statement of funds - prior year Statement of funds - prior year
Balance at
1 April 2021
£
Income
£
Expenditur
e
£
Transfers
in/out
£
Balance at
31 March
2022
£
Unrestricted funds
General funds 2,486,344
1,732,545
(1,659,607)
-
2,559,282
Restricted
funds
Land and
Buildings Capital
Fund
100,000
-
-
-
100,000
Fixtures and
Fittings Capital
Fund
5,369
-
(1,074)
-
4,295
Galloway Capital
Fund
14,404
-
(3,591)
-
10,813
Covid-19
Sustainability
Fund
-
52,385
(52,385)
-
-
Orchard House -
1,200
(1,200)
-
-
Treetops House -
5,164
-
-
5,164
Total restricted
funds
119,773
58,749
(58,250)
-
120,272
Total funds 2,606,117
1,791,294
(1,717,857)
-
2,679,554

Page 30

Chescombe Trust Limited

Notes to the financial statements for the Year Ended 31 March 2023

1 6[Summary of funds]

Summary of funds - current year

Balance
at 1
April
2022
Income Expendit
ure
Transfer
s in/out
Balance
at 31
March
2023
General funds 2,559,2821,881,794 (1,768,18
0)
-2,672,896
Restricted funds 120,272
-
(8,622)
-
111,650
2,679,5541,881,794 (1,776,80
2)
-2,784,546

Summary of funds - prior year

Balance
at 1
April
2021
Income Expendit
ure
Transfer
s in/out
Balance
at 31
March
2022
General funds 2,486,3441,732,545 (1,659,60
7)
-2,559,282
Restricted funds 119,773
58,749
(58,250)
-
120,272
2,606,1171,791,294 (1,717,85
7)
-2,679,554

1 7[Analysis of net assets between funds]

Analysis of net assets between funds - current year

Unrestri
cted
funds
Restrict
ed
funds
Total
funds
2023
£ £ £
Tangible fxed assets 2,024,49
3
111,610 2,136,10
3

Current assets
908,259 40 908,299
Creditors due within one year (99,324) - (99,324)
Creditors due in more than year (160,532
)
- (160,532
)
2,672,89
6
111,650 2,784,54
6

Page 31

Chescombe Trust Limited

Notes to the financial statements for the Year Ended 31 March 2023

Analysis of net assets between funds - prior Analysis of net assets between funds - prior year year Total
funds
2022
£
2,149,35
5
774,270
(72,786)
(171,285
)
2,679,55
4
Unrestri
cted
funds
Restrict
ed
funds
£ £
Tangible fxed assets 2,034,24
7
115,108

Current assets
769,106 5,164
Creditors due within one year (72,786) -
Creditors due in more than year (171,285
)
-
2,559,28
2
120,272
1
8 Analysis of cash and cash equivalents
2023
£
2022
£
Cash in hand 815,452 708,417
1
9 Analysis of changes in net debt
At 1
April
2022
Cash
fows
Other
non-
cash
change
s
At 31
March
2023
£
815,452
(10,704)
(160,532
)
644,216
£ £ £
Cash at bank and in hand 708,417 107,035 -
Debt due within 1 year (10,104) (600) -
Debt due after 1 year (171,285
)
10,753 -
527,028 117,188 -

Income and expenditure by fund is shown in note 15.

There are no recognised gains or losses other than the results for the year as set out above.

Page 32

2

0[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 £48,317 (2022 - £48,264).

Contributions totalling £8,038 (2022 - £7,117) were payable to the fund at the balance sheet date and are included in creditors.

Page 32

Chescombe Trust Limited

Notes to the financial statements for the Year Ended 31 March 2023

2

1[Assets held on trust]

The charity holds funds on trust for five residents (2022 - three residents). At 31 March 2023, the amount held on trust was £2,999 (2022- £1,492). These amounts are not included on the charity's balance sheet.

2 2[Operating lease commitments]

At 31 March 2023 the charitable company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

2023
£
2022
£
Within one year 419
839
In two to fve years -
419
419
1,258
2
3 Related party transactions

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

Page 33