Chescombe Trust Limited IA company limited by guarantee) Trustees, Report and Financial Statements for the Year Ended 31 March 2024 Registered number: 02585927 Charity number: 1002187
Chescombe Trust Limited Contents Reference and administrative details of the charitable company, its Trustees and Advisers Trustee5' report 2tolO Statement of Trustees, Responsibillties li Independent Auditors, Report 12to15 Statement of Financial Activities 16 Balance Sheet 17to18 Statement of Cash Flows 19 Notes to the accounts 20to34
Chescombe Trust Limited Reference and administrative detai15 of the charitable company, its Trustees and Advlsers Trustees AJ C Healy. Chair D A Jones D M Tremayne D W J Anderson G R Silver S Vyas (appointed 13 July 2023) Company Reglstratlon Number 02585927 Charlty Registratlon Number 1002187 Registered office 168 Gloucester Road Patchway 8ristol B534 5BG Secretary C M Panter Chlef Executlve Officer P Morrls Independent Audltors Corrigan Accountants Llmlted 1st Floor 25 King Street Bristol BSI 4PB Senlor Management Team J Pearce, Reglstered Manager and House Manager C Horn, House Manager C Cook, House Manager P Morris, Registered Individual C Panter, Finance Manager Page I
Chescombe Trust Limited Trustees, report For the year ended 31 March 2024 The Trustees present their annual report together with the audited financial statements of the Company for the year l April 2023 to 31 March 2024. 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 flnancial 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 {SORPI applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 (effective l January 20191. Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strateglc report required of medlum and large companie5 under the Companles Act 2006 (Strategic Report and Directors, Report) Regulations 2013 is not presented. In setting objectives and planning for activitie5, the Trustees have given consideration to general guldance published by the charities commisslon relating to public benefit, Including the guidance 'publi beneflt.. running a charity IPB2)'. Chalrfs Report: We are pleased to report that the Trust was able to revert to offerlng pre-covld levels of servlce, wlth resldents now able to enloy a full programme of activities, Sncluding singing and swimmin& withln a hl8hly soclable community. Chescombe Is supportive of all the resldents that want the opportunity to go on hollday and thls year the Trust is org3nising its first overseas holiday with two of our residents heading to Disneyland Paris. The work of maintalning staffing levels at Chescombe is an on-goin8 process and whilst we do stlll lose staff, the turnover rate has reduced. Many of our departin8 Staff are leavlng the care sector for alternative professions. We continue to try to maintain remuneration levels at a margin above the living wage to Incentivise and retain our ex15ting staff and to recruit new staff when vacancles arise. The increase in the living wage continues to place pressure on our finances, Local Authorltles are under slgnificant financlal constraints, and thls doe5 make funding dlfflcult. However, due to the hard work by the Manager5 and Board Members our relationships with Local Authorltles remaln positive and allow for constructive discusslons regarding levels of fundlng. Page 2
Chescombe Trust Limited Trustees, report For the year ended 31 March 2024 We are pleased to welcome a new member to the board of Trustees this year. They bring with them knowledge in Supported Living as well as experience gained from supporting other good causes. As stated last year, with the ending of the Covid pandemic we have been looking towards the future. To that end the Trust purchased a buildlng next to our current site to allow for expansion. We have held dlstussions with Local Authorities about what they see to be their future needs. These have been very constructive and they are supportive of our venture. Plans based on these discussions, along with information gained from other charities that have also expanded in a similar manner, are currently being drawn up. Chescombe15 currently fully occupied with 19 residents and our financial position is reasonable. De5Plte the pressure on salaries, we remain confident about the future of Chescombe Trust. I, Trust Aims & Objectives Chescombe provldes a comfortable, homely environmÈnt in which Sndlviduals are supported to develop their personal skills in a communlty living setting, whilst maximising their potential to Ilve a safe, fulfllllng and happy lifestyle. Our inspectlon rating by the CQC is 'Good' acr05S the board for our care. We adhere to the above philosophies, and work with each Individual uslng a person-centred approach. We develop Personal Care Plans for each resident whlch identify each person's essentlal Ilfe style needs and aspiratlons. We then deliver the appropriate care in accordance with that care plan. 2. Chescombe Hlstory 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 bullding into our current purp05e-built facilitles conslsting of 3 homes and 3 self-contained flats. These smaller unlts provide an environment which Is more like a home than was posslble in the previous property. Page 3
Chescombe Trust Llmited Trustees, report For the year ended 31 March 2024 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 6 Trustees, from commerclal business. Industry. and healthcare, whose skills and experience benefit the Trust. It has executive control over flnances and offers support to the CEO & Financial Manager with respect to business operatlon5. All spends over an agreed amount must be put to the board for authorisation. Strategic guidance 15 a150 provided by the Board with respect to the changing environment in whlch 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 requlrements of the Trust. The Trustees hold board meetings every one to two months In whlch dlscusslons on the operational and strategic need5 of the Trust are discussed. An agenda is issued prior to the meeting and decisions made are recorded In the mlnutes. If needed the Board will vote to come to a decision, but usually a consensus Is reached. Communlcatlon outside of the Board meeting is via email and telephone. Indlvidual board members regularly vislt the site to discuss varlous Issues and ad hoc meetings are held as required. The management structure of the Trust is as follows: Chlef Executlve Offlcer and Nominated Individual wlth CQC- Phillp Morris, who has overall operatlonal responsibility and line responsibility for the managers Registered Manager wlth the CQC and Lead House Manager- Jo Pearce, House Manager of Treetops House Manager- Chris Cook, House Manager of Lavender Lodge House Manager- Clare Horn, House Manager of Orchard House Flnanclal Manager- Catherine Panter, Financial Manager started in April 2021 Pay and remuneration of key management personnel are set by reviewlng the market place for posts within the care sector and taking appropriate decisions accordingly. Page 4
Che5combe Trust Limited Trustees, report For the year ended 31 March 2024 4. Governance and Quallty Assurance As a Reglstered 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 ar)d improve the quality of care it provides. South Gloucester County Councll has conducted a PAMMS inspection and found Chescombe to be compliant in all areas. This provides good preparation for when the CQC carry out thelr inspection. Prospective Trustees are Identlfied by existing Trustees. They are Inltially invited to a Board meeting as observers. The cvrrent Board Members are introduced and policle5 and working practices explalned. If agreed by the Board, they are then invited to this role. All the Trustees give thelr tlme voluntarily. Trustees may clalm 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 mltlgate our exposure to the major risks. The Trust maintaln5 3 comprehenslve Risk Assessment Review document whlchls revlewed on a regular basls and updated annually in February. Within the Risk Assessment Review document, a Risk Reglster Is maintained covering l. Strategic & Reputatlonal Risk. 2. Operatin8 Risk. 3. Compliance Rlsk and 4 Flnancial Risk. The Trust's Insurance5 are revlewed by way of face-to-face meeting and site vlsit with an Independent broker and cover is increased as necessary in line with current financial performance and assessed risks. Thls is backed up by vlslts from Eccle5iastlcal insurance who carry out a site survey and examine our record5 in respect of flre alarm testin& gas certification etc. Page 5
Chescombe Trust Llmited Trustees, report For the year ended 31 March 2024 5. Summary of Changes for 2023124 Purchase of Plnnacle House Chescombe Trust has been looking to increase the range of support it offers for people with special needs and has acquired Pinnacle House which adjoin5 our existing propertyto allow for expansion. It is currently planned to convert this building in to separate 5elf-contalned flats and offer these to the Loc31 Authorities for supported living accommodation. Several meetings With Local Authorities have taken place to understand the current demand and requirements for supported living accommodation. The Local Authoritles have been very supportive in this as they have a significant shortage of available places. Resldents The Trust continues to support those resldents who wish to go on holiday and Is currently arranging its first international hollday for two residents who will be visitin8 Disneyland Paris. Daily outings and vislts home continue. Fortnightly singing session5 happen with an external provider. Weekly swimming sessions occur for some residents. Some service users have had aromatherapy massages from an external provlder. Slte Each house has had various rooms decorated to maintain fresh and pleasant surroundings. Two rooms have had the existing tired carpets replaced with Ilnoleum. Thls provides a more resllient surface and alds In keeping the rooms clean. Feasibility studies for the conversion of some bathrooms to wet rooms after a couple of residents are finding it difficult to cope with the baths. Alr conditioning has been fitted in Orchard (paid for by a don3tlon). New contract set up with BG for electricity May 2024. Staffing Staff continue to undertake Diplomas In Health and Social care dellvered by an external provider. • A salary increase of 8.3% was awarded to staff in April 2024 to continue to stay ahead of the Living Wage legislation and compete with other sectors vying for staff. {Note: not in the financial year being audited). All staff received a Chrlstmas bonus of £60. Increased staff monthly driving incentive to £40 to encourage more drivers. Page 6
Chescombe Trust Limited Trustees, report For the year ended 31 March 2024 Local Authority Managers continue to work hard on reviews for resident funding. We have had successful fee reviews including backdated income from Bristol City Councll. Fundraising Car boot sale planned in 2024. 6. Financlal Revlew The Trust ha5 a financial regime that operates in accordance with modern working practices; all spendlng Is fully transparent, accountable and attributable. The use of cash as a Spending medlum is limlted. 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. Acce55 to residents, account5 Is electronlc and on an auditable basls, 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 enabllng complete understanding of its flnanclal position on a monthly basls. 6.1 The financlal highllghts of 202312024 have been: Fee Income from charitable activities.. £2,252,136 up from £1,820,630 (2023). Costs: £1,999,540 up frorn £1,776,802120231. Surplus before donatlons, COVID-19 grant and Personal Independence Payments {PIP} Income £257,038 12023: £47,028). Total surplu5 £298,825 up £193,833 from a total surplus of £104,992120231. £90,000 of payments by BCC for the fee backpay are accounted for In this year. Taking this Into account the operating surplu5 using fee income only for the year would therefore have been £167,038. It is the Trustees, pollcy 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 experlence of our residents and The Trust should not be dependent on these to provide the baslc needs of the residents, We are pleased to report that our three year average surplus on fee income has been 5%, which 15 neither excesslve or too low, and is in accordance with our plan. Page 7
Chescombe Trust Limited Trustees, report For the year ended 31 March 2024 Long term debt finance: Reduced by £116.49312023: £10,753 reduction) Donations and legacies income: £5,177 (2023: £2,461) PIP income: £55,86112023.. £47,028) 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 authoritie5 in accordance with the wage increases and recognise that thls proces5 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 reserves1£536.7931 are defined as unrestricted funds available for spending and are calculated by taking the total unrestricted funds of the charity1£3,005,242, 2023- £2,672,896) and deducting any balances not available for spending i.e. fixed assets of £2,969,00612023.' £2,136,103). 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 thelr pollcy 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 Ilkely maxlmum loss could be In the short to medium term barring complete disaster. Thls has been assessed as 3 loss of one third of the residents with a commensurate drop in income of £62,WO per month. Post covld the trust has re-assessed the likely losses incurred during the period when the fee negotiations are being carrled out. The Trust has a cash reserve policy to four months of reduced Income1£248,0001 with variance of +1 £20,000, givlng a total reserve of £228,000 to £268,CK)O. 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. In the perlod, the cash reserves were reduced below this value for a period of time, due to the purchase of a further property. The Trustees put in place alternative measures during this period to ensure cash was avallable If needed. The excess cash built up over previous years has now been utilised to purchase a new property as noted aboce, this property is planned to be used to provide a supported living facility. The Trustees revlew the reserves policy in an annual basis. Total funds held by the charity at 31 March 2024 were £3,114,18012023'. £2,784,546} of which £108,938 (2023: £111.6501 is restricted. The majority of these funds, restricted and unrestricted, could only be realised by the sale of the property and other assets. Page 8
Chescombe Trust Limited Trustees, report For the year ended 31 March 2024 7. Goals and plans for the coming year We have developed a comprehensive business plan for the next 5 to 10 year5. 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 resident5 from the Local Authorities; to use the funding to improve the life experience of our re51dents. In addition to the above we will be developing a seven flat facility for supported livlng dlrectly adjacent to our 51te, widening our service provision to ald those. in need. 7.1 Maintalnlng the quallty of care The Trust will contlnue to provide stimulation and entertainment for its re51dents. Typlcal events are: Barbeques when the weather permlts. Blrthdays and partles for special events and celebrations. Monthly singing sessions. Local sports facllities also allow the offer of swimmlng. Weekly shopping trlps, lunches out and cinema visits also run alongslde dally outings for all residents. We will continue to offer all residents the opportunity to take a summer holiday (subject to Government and CQC guldancel supported by the Trust. Several residents are also supported by the Trust to take home v151ts to their famllles In order to maintain family relatlonships with parents and slblings. 7.2 Staff Gradlng and Salary Revlew Hlstorical gradlng and 5a13rles anomalies continue to be removed as staff turnover and pay rlses permlt. Senior staff salaries are compared against similar positions in the appropriate sector and by reviews wlth the managers. However, the annual increase in the 'living wage, with the financial constraints from Local Council funding mean5 Increase5 in salaries are limited. Page 9
Chescombe Trust Limited Trustee5' report For the year ended 31 March 2024 8. Fundraislng As easement occurs fundraising events are being explored. Residents sponsored walk at Little stoke Park Various Car Boot Sales Monles ralsed/donated by residents, families The event5 are organised and run by the staff and volunteers of Chescombe Trust. The Trust does not employ professional fundraisers. The Trust has complied with fundralsing standards and fundraising regulatlons. Fundraising activity by the Trust from the Public is monitored by the Board of Trustee5 and the Trust's Flnance Manager. No complalnts have been received by the Trust regarding its fundraising actlvltles. Disclosure of Information to audltors Each of the persons who are Trustees at the time when this Trustees, report is approved has conflrmed that: So far as that Trustee Is aware, there Is no relevant audlt information of which the charltable ompany's auditors are unaware that Trustee has taken all the steps that they ought to have been taken as a Trustee in order to be aware of any informatlon needed by the charitable companls auditors In connectlon wlth preparing their report and to establlsh that the charitable ¢ompanVs auditors are aware of that Informatlon. In preparin8 this report, the Trustees have taken advantage of the small companies Èxemptions provided by section 415A of the Companles 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 meetlng of the Trustees. App ved by the Trustee on .................... and signed on its behalf by: C Healy air of Trustees Page 10
Chescombe Trust Limited Statement of Trustees, Responsibillties For the year ended 31 March 2024 The Trustees (who are also the directors of the charitable company for the purposes of company lawl 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 appllcation of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to.. select suitable accountlng policies and apply them consistently; observe the methods and principles of the Charities SORP IFRS 1021; make Judgements and accounting estlmates that are reasonable and prudent; state whether applicable UK Accounting Standards IFRS 1021 have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that charitable company wlll contlnue in business. The Trustees are responsible for keeping adequate accounting records that are sufficlent to Show and explain the charltable company's transactions and disclose with reasonable accuracy at any time the flnancial position of the charltable company and enable them to ensure that the flnancial statements comply with the Companles 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 11
Chescombe Trust Limited Independent Auditor's Report to the trustees of Chescombe Trust Limited Oplnlon We have audited the financial statements of Chescombe Trust Limited {the 'charitsble company'l for the year ended 31 March 2024, whlch 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 Reportin8 Standard 102 'The Finonciol Reporting Standard t7pplicable in the UK ond Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and falr vlew of the state of the charitable company's affairs as at 31 March 2024 and of its Incoming resources and application of resources, including it5 income and expenditure for the year then ended; have been properly prepared In accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared In accordance with the requlrements of the Companles Act 2006. Basls for oplnlon We conducted our audit in accordan with International Standards on Auditing (UK) (ISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's respon51bilities for the audlt of the financial statements section of our report. We are independent of the charltable 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 evldence we have obtained is sufficient and appropriate to provide a basis for our opinlon. Concluslons relatlng to golng concern In auditing the financial statements, we have concluded that the Trustee5' use of the going concern basis of accounting In the preparation of the financlal statements is approprlate. Based on the work we have performed, we have not Identlfied any material uncertainties relating to events or conditions that, indlvidually or collectively, may cast significant doubt on the charitable company'5 ability to continue a5 a going concern for a period of at least twelve months from when the financial statement5 are authorised for Issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described In the relevant settions of thls report. Page 12
Chescombe Trust Limited Independent Auditor's Report to the trustees of Chescombe Trust Limited Other information The other information comprlses the information included in the annual report. other than the financial statements and our Auditorfs report thereon. The Trustees are responsible for the other information contained withln 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 incon515tencies or apparent materlal misstatements, we are required to determine whether thls gives rise to a material mi5Statement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other informatlon, we are required to report that fact. We have nothing to report in thls regard. Matters on whlch we are required to report by exceptlon We have nothing to report In respect of the following matter5 In relation to which the Charitles (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinlon: the information given In the financlal statements is inconslstent in any materlal respect with the trustees. report; or the charltable company has not kept adequate accounting records; or the flnancial statements are not In agreement with the accounting records and returns. or • we have not received all the informatlon and explanations we require for our audlt. Responslbllltles of trustees As explained more fully in the Statement of Trustees, Re5ponsibllities (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 belng satisfied that they give a true and fair view, and for such internal control a5 the Trustees determine Is necessary to enable the preparatlon of flnancl31 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 abllity to continue as a going concern, disclosin& 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 13
Chescombe Trust Limited Independent Auditor's Report to the trustees of Chescombe Trust Limited Audltorfs responsibilltle5 for the audit of the financial statements We have been appointed as auilitor under sectlon 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 financlal 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. Rea50nabSe assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS {UKI 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 economlc declslons of users taken on the basis of these financial statements. Irregularitles, including fraud, are instances of non-compliance with laws and regulatlons. We design procedures in line with our responsibilities, Outlined above, to detect material misstatements in respect of Irregularltles, Including fraud. The speclfic procedures for this engagement and the extent to which these are capable of detecting irregularitles, Including fraud is detalled below.. We obtained an understanding of the legal and regulatory frameworks appllcable to the charltable company and the sector in which It operates. We obtalned an understanding of how the charitable company is complying with those legal and regulatory frameworks by maklng enquiries to management. We corroborated these enquirles through, where applicable, our review ofthe mlnutes of trustee5' meetSngs. We assessed the susceptibility of the charitable company's flnanclal Statements to material misstatement, includlng how fraud might occur. Audit procedures performed by the engagement team included: o identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud; o understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process,, o challenging assumptions and judgements made by management in any significant accountlng estimates; o Identifying and testlng journal entries, In particular any unusual Journal entries; and o assesslng the extent of compllance with the relevant law5 and regulations. Because of the inherent limltations of an audit, there is a risk that we will not detett all irregularitles, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This rlsk increases the more that compliance with a law or regulation Is removed from the events and transaction5 reflected in the financial statements, as we will be less likely to become aware of Instances of non-compliance. The risk 15 also greater regarding irregularities occurring due to fraud rather than error, as fraud involves Intentional concealment, forgery, collusion, omisslon or mlsrepresentation. Page 14
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.uklOur-Work/Audit/Audit-and-assurance /Standards-and-guidancelStandards-and -guidance-for-auditors/Auditors-responsibilities-for-audit IDescription-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor's report. Use of our rÈport 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 Audltors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume respon51bility 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 Audltor 1st Floor 25 King Street Bristol, BSI 4PB Date.. Corrigan Accountants Limited are eligible to act as audltors in terms of section 1212 of the Companles Act 2006. Page 15
Chescombe Trust Limited Statement of Financial Actlvities (incorporatlng income and expenditure account) for the Year Ended 31 March 2024 Unrestricted funds Restricted funds Total funds 2024 Total funds 2023 Note Income from: Donations and legacies 177 5,177 2,461 Charitable activities 2,323,997 2,323,997 1,879,333 Total Income 2,324,174 2,329,174 1,881,794 Expendlture on: Charitable activitles {1,996,8281 12,712) 11,999,540) {1,776,802) Net incomel {expendlture) 327,346 2,288 329,634 104,992 Transfer between funds 15 Net movement In funds 327,346 2,288 329,634 104,992 Reconcillatlon of funds Fund balances brought forward 2,677,896 106,650 2,784.546 2,679,554 Fund balances carrled forward 3,005.242 108,938 3,114,180 2,784,546 The Statement of financial activities includes all gains and losses reco8nised in the year. The notes on pa8es 19 - 33 form part of these accounts. Income and expenditure by fund is shown In note 15. There are no recognised gains or10sses other than the results forthe year as set out above. Page 16
Chescombe Trust Limited (Registration number: 02585927) Balance Sheet as at 31 March 2024 2024 2023 Note Flxed assets Tangible assets li 2,969,006 2,136,103 Current assets Debtors Cash at bank and in hand 12 81,566 193,897 92,847 815,452 18 275,463 908,299 Current Ilabilities Creditors.. Amounts falling due within one year 13 (86,2501 199,3241 Net current assets 189,213 808,975 Total assets less current Ilabllitles 3,158,219 2,945,078 Credltors: Amounts falling due after more than one year 14 144,0391 {160,5321 Total net assets 3,114,180 2,784,546 The funds of the charltv: Unrestricted funds Restricted funds 15 3,005,242 108,938 2,672,896 111,650 15 Total fund5 3,114,180 2,784,546 Page 17
Chescombe Trust Limited (Registration number: 02585927) Balance Sheet as at 31 March 2024 The notes on pages 19- 33 form part of these accounts. The entlty 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 wlth 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 flnancl31 statements have been prepared In accordance with the provisions appllcable to erbtlties subject to the small companies regime. The flnancial statements were approved and authorised for Issue by the Trustees on signed on their beha fbv: and C Healy ector Page 18
Chescombe Trust Limited Statement of Cash Flows for the Year Ended 31 March 2024 2024 2023 Note Cash flows from operating actlvities Net Income 329,634 104,992 Adjustments for non-cash Items Depreciation Loss on disposal of tangible fixed assets li 15,797 308 19,551 973 345,739 125,516 Worklng capltal adjustments Decrease/{increasel in debtors {Decreasel/lncrease In creditors Net cash flows from operating activities 12 11,281 {5,7501 126,9941 25,938 13 351,270 124,460 Cash flows from investing actlvltles Purchase of tangible fixed assets li 1849,0081 17,272) Cash flows from flnanclng actlvltles Repayment of loans and borrowlngs Net (decreasellincrease In cash and cash equivalents Cash and cash equivalent5 at l April Cash and cash equivalents at 31 March 1123,817) 110,1531 (621,5551 107,035 815,452 708,417 193,897 815,452 The notes on pages 19- 33 form part of these accounts. Page 19
Chescombe Trust Limited Notes to the financial statements for the Year Ended 31 March 2024 l General informatlon The company15 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 l. 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 policles Summary of slgnlficant accountlng policies and key accountlng estlmates The principal accounting policies applled in the preparation of these financial statements are set out below, These policies have been consistently applied to all the year5 presented unless otherwise stated. Basis of preparatlon The financial statements have been prepared in accordance wlth the Charities SORP (FRS 1021 Accounting and Reportlng by Charities: Statement of Recommended Practice applicable to charities preparlng their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) (effective l January 20191. the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Att 2006. Chescombe Trust Llmited meets the definitlon of a publlc beneflt entlty under FRS 102. Assets and liabilities are Initially recognised at historical cost or transaction value unless Otherwise stated in the relevant accounting policy. Golng concern The financial Statements have been prepared on a 8olng concern basls. There are no material uncertainties relatlng to events or conditions that may cast doubt on the charity's abillty to continue as a golng concern. Income All Income is recognlsed once the charltable company has entitlement to the income, it is probable that the Income will be recelved and the amount of income receivable can be measured reliably. Income from resldentlal care fees Is recognlsed as services are provided. Income tax recoverable in relation to donations received under Glft Aid or deeds of covenant Is recognised at the time of the donation. Page 20
Chescombe Trust Llmited Notes to the financial statements for the Year Ended 31 March 2024 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 obligatlon can be measured rellably. 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 admin15tration of the company and complian with constitutlon31 and statutory requlrements. Expendlture on charltable activitles Is incurred on directly undertaking the activities whlch further the charitable company's objectives, as well as any associated support costs. All expendlture Is Inclusive of irrecoverable VAT. Interest receivable Interest on funds held on deposlt Is included when receivable and the amount can be measured rellablv by the charitable company; this Is normally upon notification of the interest paid or payable by the Institutlon with whom the funds are deposited. Tangible flxed assets and depreclation Tangible flxed assets costing £200 or more are capitalised and recognlsed when future economlc benefits are probable and the cost or value of the asset can be measured reliably. Tangible flxed assets are initially recognised at cost. After recognltion, under the cost model, tanglble fixed assets are measured at cost le55 accumulated depreciatlon and any accumulated impalrment 10sse5. All costs Incurred to bring a tanglble fixed asset into Its Intended worklng condition should be Included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their resldual value over their estimated useful lives. Depreciatlon Is provided on the following basis: Freehold property Motor vehicles Fixture5 and fittings Computer equipment No depreciation 25% reducln8 balance 20% reducing balance 25% on cost No depreciation has been provided on the freehold property as the charge would be immaterial due to the high resldual value of the property and the length of its remaSnin8 useful economic Ilfe. Debtors Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid. Page 21
Chescombe Trust Limited Notes to the flnancial statements for the Year Ended 31 March 2024 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 provislons 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. Liabilitles are reco8nlsed at the amount that the charitable company antlcipates 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 obllgation. 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 rlsks Specific to the liability. The unwinding of the discount is recognised in the Statement of financial activitie5 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 amort15ed cost using the effective interest method. Operatlng leases Rentals pald under operating leases are charged to the Statement of flnanclal activities on a straight Ilne 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 accountlng General funds are unrestricted funds which are available for use at the discretlon of the Trustees in furtherance of the general objectlves 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 restrictlon5 imposed by donors or which have been ra15ed by the charitable company for particular purposes. The costs of raislng and admlnistering such funds are charged against the speclfic fund. The aim and use of each restricted fund 15 set out in the notes to the financial statements. Page 22
Chescombe Trust Limited Notes to the financial statements for the Year Ended 31 March 2024 3 Income from donatlons and legacies Unrestrfcted Restrlcted 2024 Donations 177 5,000 5,177 Unrestricted Restrlcted 2023 Donations 2.461 2,461 4 Income from charitable activitles Unrestrlcted Restrlcted 2024 Care of Residents 2,323,997 2,323,997 Unrestricted Restrlcted 2023 Care of Re51dents 1,879,333 1,879,333 5 Analysls of Èxpendlture on charltable actlvltles Summary by fund type Unrestrlcted Restricted 2024 Dlrect costs - Care of Residents 1,996,828 2,712 1,999,540 Unrestrlcted Restrlcted 2023 Direct costs - Care of Residents 1,768,180 8,622 1,776,802 Page 23
Chescombe Trust Limlted Notes to the financial statements for the Year Ended 31 March 2024 6 Analys15 of income from charitable activitle5 by type of Income Unrestricted Restricted 2024 Fee Income 2,252,136 2,252,136 Personal Independence Payments 55,861 55,861 Cost of living income 16,LX 16,000 2,323.997 2,379,858 Unrestricted Restricted 2023 Fee Income 1,820,630 1,820,630 Personal Independence Payments 47,028 47,028 Cost of living Income 11,675 11,675 1,879,333 1,926,361 7 Analysls of expendlture by actlvltles Activities undertaken dlrectly Support costs 2024 Care of Resldents 1,874,305 122,523 1,996,828 Actlvltles undertaken dlrectty Support costs 2023 Care of Residents 1,660,820 115,982 1,776.802 Page 24
Chescombe Trust Limited Notes to the financlal statements for the Year Ended 31 March 2024 Analysis of dlrect Costs Care of Residents 2024 Care of Residents 2023 Staff costs Depreciation Residents, food costs Day and soclal care costs Other residents, Costs Staff tralnlng and DBS check5 Llght and heat Rates and water Insurance Cleaning and waste disposal Repairs and maintenance Mortgage Interest Sundries Reglstration Motor and travel costs Postage and stationery Telephone Computer costs Subscriptlons Health and safety Bank charges (Profltl / loss on dlsposal of fixed assets 1,516,171 15,797 80,146 24,731 446 13,082 39,350 21,152 40,512 28,314 54,693 3,723 1,325,437 19,551 78,785 8,472 1,872 13,781 29,071 18,861 35,022 20,790 64,226 10,509 30 2,388 11,646 2,392 6,919 956 8,071 2,388 11,200 3,395 7,125 748 7,979 2,064 977 308 1,068 973 1,874,305 1,660,820 Analysls of sUPPOrt costs Care of Resldents 2024 Care of Resldents 2023 Staff costs Legal and professSonal Auditor's remuneration Tru5tees' indemnity insurance Trustees, expenses 102,225 10,659 8,277 1,362 94,933 11,696 8,175 1,178 122,523 115,982 During the year, the company incurred the following Governance costs: £20,298 {2023 - £21,049) included within the table above in respect of Care of Residents. Page 25
Chescombe Trust Limlted Notes to the financial statements for the Year Ended 31 March 2024 8 Auditor's remuneration 2024 2023 Fees payable to the charitable company's auditor for the audit of the charitable company's annual accounts 8,277 6.900 9 Staff costs The aggregate payroll costs were as follows.. 2024 2023 Wages and salarles Social security Costs Contribution to defined contribution penslon schemes 1,400,603 120,884 S9.593 1,257,665 114,388 48,317 1,581,080 1,420,370 The average number of persons employed by the charitable company during the year was as follows: 2024 2023 No No Employees 53 50 No employee recelved remuneratlon amountin8 to more than £60,(KJO In eitheryear. The total remuneration and benefits received by key management personnel during the year was £258,803 {2023: £238,375). 10 Remuneratlon of the Strateglc LeadershlpTeam Durirsg the year, no Trustee5 received any remuneratlon or other benefits12023 - £0). Durlng the year ended 31 March 2024, expenses totalllng £0 were reimbursed (2023- £01. Page 26
Chescombe Trust Limlted Notes to the financial statements for the Year Ended 31 March 2024 11 Tangible fixed assets Freehold property Motor vehicles Flxtures and fittings Computer equipment Total Cost or valuatlon At l April 2023 Additlons Disposals 2,068,780 837,472 78,951 139,106 8,259 18001 10,951 2,297,788 3,277 849,008 11,1831 11,9831 At 31 March 2024 2,906,252 78,951 146,565 13,045 3,144,813 Depreciatlon At l April 2023 Charge for the year Ellmlnated on disposals 49,840 7,278 101,287 7,503 (4921 10,558 1,016 (1,1831 161,685 15.797 11,6751 At 31 March 2024 57,118 108,298 10,391 175,807 Net book value At 31 March 2024 2,906,252 21,833 38,267 2,654 2,969,006 At 31 March 2023 2.068,780 29.111 37,819 393 2,136,103 Included In freehold property Is land purchased at a cost of £463,67812023: £463,678) which is not depreciated. Nor is the brought forward building depreciated. The Trust's premises were built to a hlgh standard and completed in 2011. No depreciation has been provided on the freehold property as the charge would be Immaterlal due to the hi8h resldual value of the property and its remalning useful economic life. Freehold property a150 Includes Interest charges of £98,490 incurred durlng the perlod of construction of the propertv. 12 Debtors 2024 2023 Due wlthin one year Trade debtors Other debtors Prepayments and accrued income 53,682 27,038 846 85,263 6,737 847 81,566 92,847 Page 27
Chescombe Trust Limited Notes to the financial statements for the Year Ended 31 March 2024 13 Credltors: amounts falling due wlthln one year 2024 2023 Other loan5 3,380 14,832 25,029 16,111 26,898 10,704 12,974 32,356 14,429 28,861 Trade creditors Other taxation arsd social security Other creditors Accruals and deferred income 86,250 99,324 14 Credltors: amounts falllng due after one year 2024 2023 Other loan5 44,039 160,532 Included In the creditors are the following amounts due after more than five years.. 2024 2023 Between one and two years Other loans 3,582 11,409 2024 2023 Between two and fjve years Other loans 12,127 38,541 2024 2023 Over five years Other loans 28,330 110,582 The above loanls secured on the freehold property of the charitable company. Page 28
Chescombe Trust Limited Notes to the flnanclal statements for the Year Ended 31 March 2024 15 Statement of funds Statement of funds- current year Balance at 31 March 2024 Balance at I Aprll 2023 Transfers Inlout Income Expenditure Unrestrlcted funds General funds 2,672,896 2,324,174 {1,996,8281 5,000 3,005,242 Restrlrted funds Land and Building5 Capital Fund Fixtures and Flttin8S Capital Fund Galloway Capital Fund Treetops House loo,000 loo,000 3,436 8,174 40 1687) {1,985) (40) 2,749 6,189 5,0(Y) {5,0001 Total restrlcted funds 111,650 (2,7121 (5,000) 108,938 Total funds 2,784,546 2,329,174 {1,999,540) 3,114,180 Page 29
Chescombe Trust Limited Notes to the financial statements for the Year Ended 31 March 2024 Details of funds Land and Buildin sca ital Fund A grant of £IOO,000 was received from Future Builders England Ltd towards the land purchase and bulld costs associated with the new centre. A restriction is placed on this grant for 25 years from 16 October 2008, Fixtures and Fittin sca Ital Fund A grant of £50,000 was received from Future Builder5 England Ltd toward5 the cost of fitting out the new centre. A restriction is placed on this grant for 25 years from 16 October 28. Gallowa ital Fund The Galloway Capital Fund represents donatlons received from a parent of one of the resldents. The donatlons relate to the purchase of capital items such as a television, a motor vehlcle and an alr condltlonlng unlt. Treeto s House fund This smaller fund relates to donations which are restricted to expenditure on one of the Charity's three houses. Page 30
Chescombe Trust Limited Notes to the financial Statements for the Year Ended 31 March 2024 Statement of funds - prior year 8alance at I Aprll 2022 Transfers in/out Balance at 31 March 2023 Income Expenditure Unrestricted funds General funds 2,559,282 1,881,794 {1,768,180) 2,672,896 Restrlcted funds Land and Buildings Capital Fund Fixtures and Fittln8S Capital Fund Galloway Capita Fund Treetops House 100,000 100,000 4,295 (859) 3,436 10,813 5,164 (2,639) {5,124} 8,174 40 Total restricted funds 120,272 {8,6221 111,650 Total funds 2,679,554 1,881.794 (1,776,802) 2,784,546 Page 31
Chescombe Trust Limited Notes to the financial statements for the Year Ended 31 March 2024 16 Summary of funds Summary of funds- current year Balance at I April 2023 Transfers in/out Balance at 31 March 2024 Income Expenditure Gener31 funds 2,672,896 2,324,174 11,996,828) 111,650 12,712) 5,000 3,005,242 (5,0001 108,938 Restricted funds 2,784,546 2,329.174 11,999,540) 3,114,180 Summary of funds- prior year Balance at I April 2022 Balance at 31 March 2023 Income Expendlture Transfers Inlout General funds 2,559,282 1,881,794 11,768,180) 120,272 18,622) 2,672,896 111,650 Restricted funds 2,679,554 1,881,794 11,776,802) 2,784,546 17 Analysls of net assets between funds Analysis of net assets between funds - current year Unrestrlcted Restricted funds funds Total funds 2024 Tangible fixed assets Current assets 2,860.068 108,938 2,969,006 275,463 186,2501 144,039) 275,463 186,2501 144,0391 Creditors due within one year Credltors due in more than year 3,005,242 108,938 3,114.180 Page 32
Chescombe Trust Limited Notes to the financial statement5 for the Year Ended 31 March 2024 Analysis of net assets between funds- prior year Unrestrlcted Restrlcted funds funds Total funds 2023 Tangible fixed assets Current assets 2,024.493 908,259 199,3241 (160,532) 111,610 2,136,103 908,299 40 Creditors due within one year Creditors due in more than year {99,3241 1160,5321 2,672,896 111,650 2,784,546 18 Analysis of cash and cash equlvalents 2024 2023 Cash in hand 193,897 815,452 19 Analysls of changes In net debt Other non-cash changes At31 March 2024 At l Aprll 2023 Cash flows Cash at bank and In hand 815,452 110,7041 1160,532) 1621,555) 10,704 193,897 13,3801 144,0391 Debt due withSn l year Debt due after l year {3,3801 3,380 113,113 644,216 {497,7381 146,478 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. 20 Pension commitments The company operates a defined contributions penslon 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 £59,593 12023 £48,317). Contributions totalling £8,53812023 - £8,038) were payable to the fund at the balance sheet date and are included in creditors. Page 33
Chescombe Trust Limited Notes to the financial statements for the Year Ended 31 March 2024 21 Assets held on trust The charity holds fund5 on trust for six residents12023 - five residents}. At 31 March 2024, the amount held on trust was £6,688 {2023- £2,999). These amounts are not included on the charity'5 balance sheet. 22 Operatlng lease commitments At 31 March 2024 the charitable company had commitments to make future mlnlmum lease payments under non-cancellable operating leases as follows: 2024 2023 Within one year 350 419 23 Related party transactlons There were no related party transactions in the year other than the relmbursement of expenses disclosed in note 10. Page 34