Chescombe Trust Limited IA company limited by giiaranteel Trustees, Report and Financial Stateinei)ts for tlie Year Elided 31 March 2025 Reglstered nuniber: 02585927 Charity number: 1002187 Chescombe Trust Limited Contents Reference and administrative detalls of the charitable compaiiy, its Trustees and Advisers TrLlStees' reporl 2to9 Statement of Trustees, Responsibilitles io Indepeiident ALiditors' Report Ilto14 Stalemei)t of Flnancial Activlties 15 Balance Slieet 16to17 Statemeiit of Cash Flows 18 Notes to the accounts 19to33 Chescombe Trust Limited Reference and administrative detai15 of the charitable company, its Trustees and Advisers Ti'ustees A J C Healy, Chalr D A Jones D M Tremayne D W J Ander50n G Rsilver S Vyas Company Reglstr¥tion Number 02585927 Charity Registratlon Number 1002187 Reglstered office 168 Gloucesler Road Patchway Brlstol BS34 SBG Secretary C M Panter Chlef Executive Officer P Morrls Audltor Corrigan Accountants Llmlted 1st Floor 25 Kin8 Street Brlstol BSI 4PB Senlor Management Team J Pearce, Reglstered Manager and House Manager C Horn, House Manager C Cook, House Manager P Morris, Reglstered Individual C Panter, Flnance Manager Page I Chescombe Trust Limited Trustees, report For the yearended 31 Marcli 2025 The Trustees present their aiinual report togetlier with the audlted finaiicial Statements of the Company for the year l April 2024 to 31 Mai'ch 2025. The Ai)nual report serve5 tl)e purposes af botl) a Trustees, report aiid a direcloi's, reporl linder company law. The Trustees conflrin tlial the Aniiual report and financlal statements of the Lharitable coiiipany coinply with the curreiit statutory re.quiremei)Is, the I'equlrements of the charitable company's governing docuinent and tlie provisions of the Stateinent of Recommended Practice ISORPI applicable to charities preparing their accouiits in accordance wlth the Flnancial Reporting Standard applicable In tlie UK aiid Republlc of Ireland IFRS1021 (effectlve l January 20191. Since the Company qualifies as small under sectlon 382 of the Companies Act 2006, the Sti'ateglc report reciulred of medium and large companies under the Companies Act 2006 {strategic Report and Directors, Report) Regulations 2013 Is not presented. In 5ettlng oblectlves and plannlng for activltles, the Trustees have given conslderation lo geiiei'al guidance publlshed by the charltles comfflisslon relatiiig to publlc beiiefit, includli)g the guldance 'public beneflt,. runi)ing a charily IP821'. Chair's Report: We l)ave remalned at full capaclty of 19 resldents, and the re51denls remalii unchai)Eed. Cliescombe contlnue5 lo offer a programme of actlvltles, includlng muslc, crafts and clnema for all I'e51denls lo enloy. There is a good sociable community bath in the houses and between the three liouses. Chescombe belleves It Is Important for residents to be glven the opportunlty to go on holiday, and many of them take advantage of thls. Desplte the demands on cash, we continue lo finance resldents if necessarv, Recrultlng sta ff Is stlll challenglng, however, the rate of turnover has reduced and we are close to our requlred stafflng level, reducing the need for overtlme and agency. Chescombe continues lo try to maintaln remunerhtion levels at a margln above the livln8 wage to incentivise and I'etaln our exlstlng staff and to recruit new staff when vacancles arise, Due to tlle rlse in the 'living wa8e', Nl contributlons and inflatlon., we are constantly revlewlng the fees we receive from the local authorlties. There has been a move by some loca l authorltles to homogenise Ilielr methodology of assesslng fees, this has Inade oiir fee proposal to the COLinclls Somewhat easler to prepare although thls process needs to stabilise. Local authority budEets are tight, and thls process Still takes a significant ainount of Chescombe resource, despite thls, our relatlonsliip witli local autliorltles 15 posltlve, Cliescombe purchased Pinnacle House last year, which is a property adjolning the Trusts boundary. It Is planiied to convert th15 biiilding Sn to separate 5elf-contained flat5 and offer these to the Local Autliorities for supported livlng accommodatlon. Page 2 Chescombe Trust Limited Trustees, report For the year ended 31 March 2025 The Board aiid Staff, with support from South Gloucestershire and Bristol County Council have provided Buidaiice to the Architect wlio has produced a plan wliich has been submltted to South Gloucester511ire Couniy Couiicil for planning approval, Meetings continue with Local Authoritle5 to ensure that we provide the necessary facillties to rneet the supported living requirements. l. Trust Alms & Objectives Chescombe provides a comfortable, homely envlronmeiit In whlch Individuals are Supported to develop thelr personal skills In a community living setting, whilst maxlmising thelr poteiitial to live a safe, fulfilllng and happy lifestyle. Our Inspectlon ratln8 by Ihe CQC is 'Good' across tlie board for our care. We adhere to the above phllosophies, and work with each Indlvidual uslng a person-centred approach. We develop Personal Care Plans for each re5idenl whlch identify each person's esseiitlal life style needs and aspirations. We then dellver the approprSate care In accordance wlth that care plan. 2. Chescombe History Chescombe Trust lias been provldlng a safe, comfortable and stlmuSatlng home envlronment for adults wlth severe learnln8 d153bllities 51nce 1991. In 2011 we moved from a large Victorlan bulldlng Into our current purp05e-bLiilt facllltle5 conslstlng of 3 homes aiid 3 5elf-contaiiied flats. These srnaller unlts provlde an environment whlch15 more like a home than was possible in the previous property. 3. Structure, Governance and Management The company Is re8lstered as a charltable company, limited by guarantee and was set up by a Memoranduin of Assoclation on 27 February 1991. Chescombe Trust Is eoverned by a Board of 6 Trustees, from commerclal buslne5s, Industry, and heallhcare, whose ski115 and experSence beneflt the Trust. It has executlve control over finances and offers support to the CEO & Flnancial Manager with respect to bijslness operatlons. All spends over an agreed amount must be put to the board for authorisatlon. Strategic guidance is also provlded by the Board wlth respect to the changing environment In whlch the Trust has to operate. The Board also provides support In respect of regulatlons as set out by the CQC and In developlng the Care requirement5 of the Trust. The Trustees hold board meetlngs every one to two months in which dlscusslons on the operatlonal and strategic needs of the Trust are discussed. An agenda15 issued prior to the meetlnE and decision5 made are recorded iii tlie Ininutes. If needed the Board wlll vote to come lo a decisioii, but Usually a coiisensus 15 reached. Communicatlon outslde of the Board meeting Is via email and telephone. Indlvldual boa rd members regularly vlslt the slte to discuss various issues, and ad hoc meetlngs are held as requlred. The management structure of the Trust is as follows: Page 3 Ches¢ombe Trust Limited Trustees, report For the year ended 31 March 2025 Chief Executive Oflicer and Nominated Individual with CQC - Phllip Morris, who lias overall operational respon51bility and Ilne responsibility for the managers Registered Manager wlth the CQC and Lead House Manager- Jo Pearce, House Manager ofTreetops House Manager- Chrls Cook, House Maiiagerof Lavei)der Lodge House Manager- Clare Horn. House Manager of Orchard14oiJse Flnanclal Manager- Catherlne Panter, Financlal Manager Pay and remuiieration of key Inanagement personnel are Sel l)y revlewing the market place for posts witliln the care sector and taking approprlate decisions accordingly. 4. Governance and Quallty Assurance As <7 Reglstered Care Home, Chescombe Trust 15 required to meet the standards set out by the Care Qtjality Comm15sion, Is currently rated as 'Good' and works continually to maliitaln and Improve the qlialily of care il provides. Prospectlve TrLlStees are Sdentified by existing Trustees, They are initlally Invited to a Board meetliig as observers. The current Board members are introduced and pollcles and workli)g practices explalned, If agreed by the Board, they are then invited to thls role. All the Trustees glve thelr time voluntarlly. Trustees may clalm relmbursement of their travel expenses. There were no Trustees, expei)ses In tl)e year. There is iio tiine Ilmit to servlce on the Board either as a Trustee or as Chalr of Trustees, bul all members need to stand for re-electlon every 2 years, Tlie Trtis lees have assessed the major rlsks to whlch the company is exposed, in partlcular Ihose related to thp operations and fiiiances of the company and are satlsFled Ihat systems and procedures are in place to mitigale OLir exposure to the major rlsks. The Trust malntalns a comprehenslve Risk Assessment Review document which15 reviewed on a regular basis and updated 3nnu3lly in February. Withln the Risk A55essment Review document, a Risk Reglster is mainlaiiied coverliig l. Strate8lc & Reputatlonal Rlsk. 2. Operatin8 Rlsk. 3. Compllance Rlsk and 4 Financlal Rlsk. The Trust's Insurances are reviewed by way of face-to-face meetlng and slte vislt with an Iiidependent broker and cover Is Increased as necessary In Ilne wlth currei)t financlal performance and assessed rlsks. This is backed up by v151ts from Eccleslastical Insurance who carry out a site survey and examlne our records In respect of fire alarm lestingi gas certificatlon etc. Page 4 Chescombe Trust Limited Trustees, report For the year ended 31 March 2025 5. Suinmary of Changes for 2024125 Purchase of Pinnacle House The Planning Appllcatlon for tlie layout of Pinnacle House to convert this biiildlng In to separale self-conlained flals has been submltted. Questlons ralsed by the various Soutli Gloucestei'sliire Planiiln8 Departinent5 are bein8 addressed, Residents The Trust continues lo support those resldents who wish to go oli holidav PlniiJcle liouse 15 Used fortnightly for singlng sessions • Ci'aft sesslons have begun agaiii wl)en timlng ￿ suitable Daily ou Ilngs aiid trips continue • A boat trip Is planned for in the summer Weekly swlmmlng session5 occur for some residents. Some service users have had aromatherapy massages from an external provlder Trips lo tlie cinema and theatre Cooking sessions Slte General refresh of rooms ha5 taken place across the 51te.to maiiilain fresh and pleasant surroundlng5 Resident bathroom converted to a wet room to help wlth accessibility Treetops have had a stair lift fitted 2 'RaSzer' chairs were bought For the slte to aid In Ilftln8 residents that have fallen Stafflng A long-time member of staff who served 34 year5 as a House Manger and then Adminlstratlon off Icer has rellred A replacement for the Administration Offlcer has been employed and has started work Staff continue to undertake Diplomas in Health and Social care dellvered by an external provlder A Salary Increase of 8.3% was awarded to staff In April 2024 aiid 8.0% in Deceinber 2024 to contlnLie to stay ahead of the Liviiig Wage legislation and inflatlonary cost felt by our staff and to compete with other seclors vylng for staff All staff recelved a Chrlstmas bonus of £75 Monthly drivln8 incentive has been Increased tu £80 to encourage drivers Monthly thinklng meetings have rÈ5umed where staff discuss potential activltles or otlier Issues Local Authority Managers contlnLie to work hard on revlews for resident funding, We have had successful fee revlew5 Includlng backdated income from Bristol Clty Council. Fundraislng Car bool sale planned In 2025. Page 5 Chescombe Trust Limited Trustees, report For the year ended 31 March 2025 6. Financial Review The Ti'LlSt has a f inanclal regime Ihat operates In accordance with modern working pi'actlces; all speiiding is fully transparent, accountable and attributable. The use of cash as a spending medlum is liinited. Managemeiit arcoiiiits are produced in house on a monthly basi5 and are reviewed in depth by the -I'rustees for accuracy and an exlernal aLcoiinlant on a quarterly basis. Access to residents, accouiils is eleclrunlc and on an aLidltal)le basis. 5crulinised by two officers of the Trust. Tlie Trust is fiilly awai'e of its Incoine and expenditure as it arises enabling complete understanding of Its finaiiclal positloi) oli a monthly bas1S, 6.1 The financlal higlillghts of 202412025 liave heen: Fee Incoime from cliaritable activities: E2,306,239 up from E2,252,136 {20241. Costs.. £2,225,641 up froin £1,999,540120241. Surpliis befoi'e donatlons ai)d Personal Independence Payments {PIPI IiicoiMe £105,579 12024.. £252,596). Total surplus £162,407 down £162,221 from a total surplus of E324,628120241, It is tlie Trustees, pollcy to ensure that the Trust Ss In a positive fliianclal position l)a5ed on fee Income 01)ly, before voluntary donations are 3ccounled for. Voluntary donatioiis should be used to eiihaiice the e.xperieiice of our resldents and The Trust should i)ot be dependent on these to provlde the baslc needs of the resldei)tS, Our fee Incoine surplus Is currently below our target due to the Increased cost of care for our resldents. We are currently in ne8Otlatlon with the relevant local counclls to increase fees to matcl) Ilie care requlred. Long term debt finance,. Reduced by £3.61212024.' £116,493 reductlonl Donations and legacies Incoine- £25,62112024: £5, 1771 PIP Income.. £56,18212024: £55.861) The Trustees are aware tl13t the introduction of the livlng wage presents a serlous challenge to the flnancial stability of the Trust. The Trust is continuing to make progress agreelng new fees with local autl)oritles in accordance with the wage Increases and recognlse that thi5 process wlll take tlme to complete. The Trust will contlnue wlth the pollcy of fundlng the care of the resldents from fee Iiicome, and capital expenditure from donatlons or allocated capital withln the reserves, thu5 ensuring the loiig terin security, for the beneflt of Ihe current and future resldents. Although we foresee interim period5 where reserves may have to be utllised, these periods will be kept to a minlmum. Page 6 Chescombe Trust Limited Trustees, report For the year ended 31 March 2025 6.2 Reserves Free reserves IE178,6661 dre defined as uni'estricted funds available for spending aiid are calculated by lal(ing the total unrestricted funds of tlie charily E3,169,514 12024: £3.oofJ,2421 aiid deducting any balance5 llot available for spendlng i.e. lixed assets of £2.990,84812024.. £2,969,006). For the purpose5 OF short and medium term financlal management. the trustee5 are concerned more wltli Ihe managemei)l of working capital. The healthy working capltal posltlon Is entirely in Iliie wlth thelr policy ol l)oldiii8 free resources sufficlei)t to fund the eventuality of a Inaterial decline iii incoining resources. The Trust liave assessed the p05slble loss of income with a view to what the1Skely maximum loss could be in the sl)ort to Inedium term barrlng complete disaster. This has been assessed as a loss of one third of tlie resldents wltli a commeiisurate drop in income of £63.000 per Imonth. Post covid tl)e trust has re-assessed tlie Ilkely losses incurred during tlie periud when Ihe fee negotiations are being carrled out. The Trust has a cash reserve pnlicy to four months of reduced income1£252,0001 with variance of +1 E20,000, giving a lolal reserve of £228,000 to £268.000. Tl)is. Iii Lhe opli)ion of Ilie Trustees, would give adequate tlme to adjust the tru5t5 Costs, complete fee negotiallons and/or fill 501ne of the vacancies. In the period, the cash reserves were reduced below Ihis value for a perlod of tlme, due to the purchase of a further property. The Trustees put in place alternalive measures dufln8 Lhis perlod to ensure cash was available If needed. The excess cash bullt up over prevlous years has now been utlllsed to purchase a new property as iioted above, this property is planned to be used to provide a supported livlng faclllty, The Trustees revlew the reserves policy In an annual basls. Total funds l)eld by the charity at 31 March 2025 were E3,276,58112024: £3,114.1801 of which £107,067 12024: £108,938) is restricted. 'fhe majority of these funds, restricted and unrestricted, could only be realised by the sale of the property and other assets. Page 7 Chescombe Trust Llmlted Tru5tees' report For the year ended 31 Marcli 2025 7. Goa15 and plans for the coming year We liave developed a coinpreliensive business plan for the iiext 5 to 10 years. The priorltles wlthin thls plan, wlilch will be the focus for the year, include.. malntaining the higli quality ol care and planiiing for end of life care wliere appropi'iate; complelii)g the staff grading and salary sti'ucture,. ensuririg api)ropi'iate and adequate fundin@ for all residents from tlie Local Autl)oritles' to use the fuiidlng to Improve tlie Ilfe experlence of our residents. In addllion to the above we will be developing a seven flat facillty for supported living dlrectly adjacent to our site, wldening our servlce provislon to ald those in need. 7.1 Maintalnlng the quality of care The Trust wlll contlnue to provide stlmiilation and entertalnment for Its resldents. 'fyplcal events are., Barbeques when the we