REGISTERED COMPANY NUMBER: 02812012 (England and Wales) REGISTERED CHARrrY NUMBER: 1024945 RÈport of the Trustees and Financial St*ments forthe Year Ended 31 Marth z024 ARCH INrnATIVES Advantage Accountsncy & Advisory Ltd Chartered Certified Accountants and Ststutory Auditor5 Avalon House 5-7 Cathedral Road Cardiff CFII 9HA ARCH INITIATIVES Contents of the Financlal Statements forthe Year Ended 31 March 2024 Page Report of the Trustees Report of the Independent Auditors Statement of Flnancial Actlvltie5 Balance Sheet Note5 to the FinancSal 5tatement5 10 to 21 ARCH INrnATIVES Report of the Tru5tee5 for the Year Ended 31 March 2024 The trustees who are also direttors of the charity for the purpose5 of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2024. The trustee5 havo adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practitr applicable to charities preparing their accounts in accordance with the Finanaal Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 (effective l January 20191. OBJEcfivES AND ACTivmES Objerttves and aims ARCH Initiatives was establishèd to provide services ft)r people whose lives have been affected by substance misuse. ARCH'S objettive of service provision. is to support individuals, communities, stskeholders and families to tackle substsnce misuse and to develop a range of innovative high qualty servi￿$ that transform futures and move individuals away from poor health and well-bein& offending behaviour and unemployment. Our client range includes those who are dependant on illiciL legal and prescribed substsnce and those developing long tenn conditions or spÈcrfic illness as a result of dependen￿. The charity exists to provide public benefrt by relieving poverty, sickness and distress amongst persons affected by addiction to alcohol or drugs of any kind. This include5 those who are personally addirted and those families carers, and communitie5 whose lives are impacted by Substan￿ misuse. STRATEGIC REPORT Achievement and performance Charitable artivities In the year ended March 31, 2024 ARCH Initiatives had no service contracts although its properties were leased by charltable or statutory authorities who are dirertly involved in services consistent with the charity's objettives. In Bolton the NHS are currently the property tenant whilst in the Wirral. Change Grow Llve are the property tenant. Financial review Financial positlon Income for the year31 March 2024 is £75,07412023: £60.8681 and this mainty comprises property rental income. Total expenditure decreased to £42,37912023: £53.7831.This resulted in an overall surplus of £25.769 compared to the prior yeèrs surplus of £7,085. Principal funding sources Principal funding sourtrs during the period We￿ from property rental& Reserves pollry It is the opinion of the directors that the charity should hold financial reserves; because it requires protertion against financial risks. a5 identffied by the annual financial risk review; - to provide for expansion of the charty's busines5. - to provide funds for investment in fixed assets,. and to provide funds for unfunded 'board approved, Special projects which enhance services and meet charitable objectives. Page I ARCH INITIATNES Report of the Trustee5 for the Year Ended 31 March 2024 STRATEGIC REPORT Flnancial review The definition of financial reseNes for this purpose is the amount of unrestricted reserves not invested in fixed or other long term a55ets (net current assets excluding long term debtors). The charity conducts an annual financial risk review. This review has identified that the charity requires rèseNes to protect itself against the following principal risks.. Delayed payment of property rentals causing unanticipated operational cash flow requirements. Loss of property rental contracts. Properties requiring urgent repairs or ￿fUrb1shMent As at 31 March 2024 the charity had total funds of £349.545 of which comprises.. An endowment fund of £77,500 representing assets that must be held permanently by the charitable company,. An unrestricted funds surplus of £272,045. Princlpal rSsks and uncertainties The trustee5 have assessed the major risks to which the charitable company is exposed, and are satisfied that systems are in place to mitigate exposu￿ to the major risks. Risk exists when there is uncertainty surrounding events and thelr outcomes that may have a significant irnpact on ARCH'S ability to.. achieve its aims satisfy the expectations of its Stakeholders- operate efficientlv Future plans Discussion5 are taking place regarding the potential disposal of the Arch section of the Mercer DB Master Trust (formerly known z5 the Federation plan). This will be progressed if the exit from the scheme is commercially attractive to the charity. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document ARCH Initiatives is a company limited by guarantee govemed by its Memorandum and Articles of Association dated 23rd April 1993 and constituted in accordance with this document. The Charity 15 directed by a Management Committee made up of 4 members. Members are recruited from a range of backgrounds, including health and Social care and commerce. The Management Committee's decisions are focused on the approval and monitoring of any strategic busine55 plans nd the setting of the annual budget.. the monitoring of progress in the achievement of plans and performance against the agreed budget are the typical activities undertaken by the Management Committee. The Management Committee have delegated to the Chief Executive the responsibility for the management of the organi$3tion. On 25 july 2016 Kaleidoscope Project became the sole member of ARCH Initiatives. Kaleidoscope Project is a reeistered charity Inumber 11150171 and is also a company limited by Euarantee (number 0548tJ4231 which wa5 incorporated on 14 June 2005.Kaleidoscope Projett's governing document is its memorandum and articles of a550ciation as amended by special re501ution dated 5 April 2006. On the same date, the Trustees of ARCH resigned to be replaced by four of Kaleidoscope'5 Trustees. Consequently ARCH became part of the Kaleidoscope group on 25 July 2016, Page 2 ARCH INITIA71VES Report of the Trustees forthe Year Ended 31 March 2024 The charity ha5 an independent Board of Trustee5 drawn from a variety Df backgrounds thus ensuring a diverse Board with a strong mix of skills and experience to tske the charty forward. When appropriate, vacancies on the Board are dvertised through media outlets and interviews condurted. to ensure new appointments will add to the skills and experience of the existing Board. All new trustees are provided with historical and current information to enable them to appreciate the work and ethos of the Charity. The Board is currently developing an indurtion and training programme for trustees as part of its governance strategy. The Board of Trustees aims to meet at least quarterly. The day-to day management of the Charity Ss delegated to the Group Chief Executive, who attends the Board of Trustee meetings. Key management remuneration Arch Initiative5 currently have no paid employee5. REFERENCEANDADMINISTRATIVE O￿AlLs RegisterÈd Company number 02812012 {England and Wales) R@gistered Charity number 1024945 Reglstered office l Resolven House Fortran Road St Mellons Cardiff CF3 OEY Trustees Dr D LAntebl Mrj M QKnight Mrs F Rutter Iresigned 12.9.241 Mr S Davison (resigned 22.12.231 Dr A Procter {appointed 16.5.241 SÈnior Statutory Auditor Stephen John Bickerton Auditor5 Advantage Accountancy & Advisory Ltd Chartered Certified Accountants and Statutory Auditors Avalon House 5-7 Cathedral Road Cardi)Y CFII 9HA Chief Executive Offi￿r Martin Blakebrough Page 3 ARCH INITIATIVES Report of the Trustees for the Year Ended 31 March 2024 STATEMENT OF TRUSTEES, RESPONSIBIUTIES The trustee5 (who are also the directors of Arch Initiatives for the purposes of company lawl are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally A￿epted Accounting Practice). Company law requires the trustees to prepare financial statement5 for each financial year which give a true and fair view of the state of affair5 of the charitable company and of the incoming resources and application of resources, including the income and expenditure. of the charitable company for that period. In preparing those financial statements, the trustees are required to selett Sultable accounting policies and then apply them consistently- observe the methods and principles in the Charity SORP,. make judgements and estimate5 that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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. In so far as the trustees are aware.. there is no relevant audit information of which the charitable company's auditors are Unawa￿,. ènd the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. AUDITORS The auditors, Advantage Accountancy & Advisory Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, 8RI1212024 and signed on the board's behalf by.. Dr A Procter- Trustee Page 4 Report ot the Independent Auditors to the Members of Arch Initiatives Opinion We have audtted the financial ststements of Arch Initiatives (the 'charitable compan¢) for the year ended 31 March 2024 which comprise the Statement of Financial Activities. the Balance Sheet and notes to the financial statements. including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United fingdom Accounting Standards (United Kingdom Generally Accepted Accounting PTrtticel. In our opinion the financial ststements". give a true and fair view of the state of the charitable companvs affairs as at 31 March 2024 and of its incoming resources and application of resources. induding rts income and expenditure, for the year then ended,. have been properly prepared in accordance with Unrted Kingdom Generdlly Acrepted Accounting Practi￿. and have been prepared in accordance wtth the requiremènts of the Companies Att 2006. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) IISAS IUKI) and applicable law. Our responsibilities under those standards are further described in the Audrtors, responsibilities for the audit of the financial statements sertion 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 UK. including the FRCS Ethical Standard, and we have fulfilled our other ethical responsibilities in accordano with these requirements. We believe that the audit eviden￿ we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concem In auditing the financial statements, we have concluded that the trustee5' use of the going Can￿M 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 uncertaintles relating to events or conditions that, individually or collectively. may cast signfficant doubt on the charitsble company's ability to continue as going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the ￿SponSibl11t1eS of the trustees wrr the Year Ended 31 Marth 2024 13. CREDrroRS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade creditors Accruals and deferred income 10,000 19,615 14,974 15,000 29,615 29,974 CREDITORS: AMOUl+ifs FALUNG DUE AFfER MORE THAN ONE YEAR 2024 2023 Amounts owed to group undertakin85 350,822 893,929 PROVISIONS FOR UABILMES A provision of £61,666 is being carried for the amount due on the Charity's defined benefit pension scheme. The detai15 of the scheme are disclosed in note 17. At the end of the year the artuarial valuation indicated that the scheme was in an assèt position of £201,000. This amount has not been recognised in the accounts as it is the Charity's intention to withdraw from the scheme should a reasonable buy out posrf(ion be negotiated. Current discussions have highlighted that the amount would be in the region of £42.000 to £102,000. Due to this it is felt that the current liability held is a more accurate reflection of the Charity's position than the £201,OCQ asseL 16. MOVEMENT IN FUNDS Net movement in funds Transfers between funds At 31.3.24 At 1.4.23 Unrestricted funds General fund 200,026 25,769 46,250 272,045 Endowment funds WirTrl pcr 123.750 {46.2501 77,500 TOTAL FUNDS 323,776 25,769 349,545 Net movement in funds, included in the above are as follows: Incoming resources Resources expended Gains and losses Movement in funds Unrestrirted funds General fund 75.074 142,3791 16,9261 25,769 TOTAL FUND5 75,074 142,3791 16,926) 25,769 Page 15 continued... ARCH INITIATIVES Notes to the Financial Statements- continued for the Year Ended 31 March 2024 16. MOVEMENT IN FUNDS- contlnued Comparative5 for movement in funds Net movement in funds Transfers between f unds At 31.3.23 At 1.4.22 Unrestricted fund5 General fund 181.691 7.085 11,250 200,026 Endowmentfunds Wirral PCF 13S,000 111,2501 123,750 TOTAL FUNDS 316,691 7.085 323,776 Comparative net movement in funds, included in the above are a5 follows: Incoming resources Resources expended Movement in funds Unrestricted funds General fund 60,868 153,7831 7,085 TOTAL FUNDS 60,868 153,7831 7,085 A current year 12 rnonths and prior year 12 months combined position is as follows: Net movement in funds Transfer5 between fund5 At 31.3.24 At 1.4.22 Unrestrirted funds General fund 181,691 32.854 57,500 272,045 Endowment funds Wirral pcr 135,000 IS7,500) 77,500 TOTAL FUNDS 316,691 32,854 349,545 Page 16 continued... ARCH INITIATIVES Notes to the Financial Statements- continued for the Year Ended 31 March 2024 Is. MOVEMEl+rr IN FUNDS- continued A current year 12 months and prior year 12 months combined net movement in funds. included in the above are as follows- Incoming resources Resources expended Gains and losses Movement in funds Unrestrirted funds General fund 135,942 196,1621 16,9261 32,854 TOTAL FUNDS 135,942 196.1621 16,9261 32,854 Unrestricted funds The unrestricted funds comprise those funds which the trustees are free to use in accordance with the charitable objettrves. Endowment funds The Wirral p￿ endowment fund is a grant expressly for the purpose of purchasing and refurbishing the property known as 88-90 Argyle Street. In accordance with the grant agreement these grants will be credited to the endowrnent fund and likewise restricted to the purpose of the development of the property, EMPLOYEE 8ENEFrr OBLIGATIONS 17. Arch Initiatives participates in the Mer￿r DB MasterTrust (the scheme) fomerly known as The Federatlon Plan. The scheme is a multi-employer defined benefit stheme. We are now reporting the results of the 2023 actuarial valuatlon. scheme Membership Membership of the scheme is made up of 6 deferred pensioners and 2 retl￿d pensioners, there are no active pensioners. The data attributable bytype of member is a5 follows: Member Deferred members Description Total deferred pensions revalued to valuation date - 1£ p-a.) Average age weighted Total pensions payable l£p.a. I Averdge age weighted by pension 5 April 2023 5,845 5 April 2020 6,808 Deferred members Pensioners Pensioners 47 2.484 71 44 2,103 68 The breakdown of the liability is set out below-. 2023 Valuation £'OOOs 419 1421 11761 201 192% Description 2020 Valuation £'OOOs 234 1541 (3321 1152) 61% Assets Liabilities- Pensioners Liabilities- Deferred Members Overall position Funding Level Page 17 continued... ARCH INITIATIVES Notes to the Financial Statements- continued for the Year Ended 31 March Z024 17. EMPLOYEE BENEFrr OBLIGATIONS- tontinued Assets summary Revised Investment stratègy after 5 Aprll 2023 % 30 5 April 2023AllocatlDn £'ooo 414 5 April 2023 Allocation % 99 Pooled Investments Vehitles Bank Tailored Credit UK Inflation Linked Gifts Sterling Inflation Linked LDI Total 20 40 io loo 419 100 Analysis of Experlence Since Last Valuation £'o Shortfall on 5 Aprll 2023 Interest Contributions less expenses Changes in market conditions (liability impact) Excess investment returns Inflation experience Impact of changes to statement of funding principles Miscellaneous Surplus on 2023 assumptions 11521 121 58 183 128 (401 28 201 Experted 2023 shortfall Estimated shortfall at 2023 on 2020 assumptions 196} 175 Changes Since the Valuation Date The return on the pension assets in the period April 1. 2023 to Au8USt 31, 2023 wa5 estimated at - 4%. Thi5 doe5 not take into account any contributions received or benefits paid out Since the valuation date. Had the conditions at August 31, 2023 applied at the valuation date, it is estimated that the technical provision would have been 15Yo lower than the value in this report. Taken together the change in financial conditions would have led to an improvement in the overall funding position. Financial Assumptions - Main Financlal assumption5 for TKhnical provision5 2023 Valuatlon Gilt cutve +1.4% p.a. Gilt curve +0.5% p.a. Inflation curve RP1￿.75% until 2030 RPI from that year In line with RPI a5sumption5 In linÈ with CPI a55umptions Gilt curve +0.5% p. 3.65%p.a. 3.350A p.a. 2020 Valuation Gilt curve +1.5% p.a. Gilt curve +0.5Yo P. Inflation cU￿e RPI-0.75% p.a.until 2030 RPI from that year In line RPI assumptions In line with CPI assumptions Gilt curve +2.0% p.a. 0.690Ap.a. 2.71% p.a. Pre retirement discount rate Post retirement discount rate RPI Inflation CPI Inflation RPI pension increases CPI pension increases Recovery plan return Average Gilt Yield curve Average inflation curve Page 18 continued... ARCH INMATIVES Note5 to the Finanaal Statements- continued for the Year Ended 31 March 2024 17. EMPLOYEE BENEFIT OBLIGATIONS- ￿ntInued DemoEraphrc assumptions- for Technital provisions 2022 Valuation 115% of53PxA CMI 2022[1.S%, S Corej Mortality- basetsble Mortality- future improvements CPI inflation 2020 Valuation 115% of53PxA CMI 2019 [1.5%,S=7.5] RPI-0.75% until 2030 RPI from that RPI-0.75% until 2030 RPI from that year year 9)% married for both males and 90% married for both males and females All members assumed to retire at females All members assumed to retire at normal retirementage. Members who are past their normal nomial retirement age. Members who are past their normal retirement are retirement are assumed to retire at assumed to retire at the valuation date. the valuation date. No cash commutation where benefrt formu13 includes cash. Where the benefit fomiula does not include cash. members are assumed to take 50% of their maximum cash entitlement. based on the current cash commutation factor. 50% of 3180ths using urrent commutation factors for members without cash on top. No allowance Ifunded by separate ) contributions by the employer. Proportions married Age of retirement Commutation 50% of 3180ths using current commutstion factors for member5 without cash on top Lxpenses No allowance (funded by separate I Contributions by the employer. Other Assumptions Assumed rate durlng inter valuation period p.a. 15.73% Assumed rate at last valuation p.a. 0.63% Investment returns- assumed forthe purpo* of the 2020 recovery plan Revaluation up to retirement in line with RPI in line with CPI Pension increases in payment in line wtth RPI in line with CPI 2.57% 1.82% 6.09% 4.49% 2.57% 1.82% 6.09% 4.49% Global Pandemics and Climate Changt For thÈ 2023 valuation the potential impats of global pandemics and climate change have been considered. These included the following climate change shock scenarios: Potential Impact {2023 and I 2020 valuation -0.5%p.a. +0.5%p.a. UK long dated interest date Inflation Page 19 continued... ARCH INITIAMVES Notes to the Financial Statements - continued torthe Year Ended 31 March 2024 17. EMPLOYEE BENEFIT OBLIGATIONS- continued UK life expectanry-0.25 years Equity market re-pricing Diversified growth fund re-pricing-7.5% Investment grade credit spread widening Impact on high yield debt -0.25 years -15% -7.5% 0.2%p.a. Technlcal Provisions Sensltivity % Change in Liability +2.3% +3.2% +5.5% +2.8% +less than 0.1% Pre retirement discount rate reduced by 0.25%p.a. at each term +2.3% Post retirement discount rate reduced by 0.25% p.a. at each term Inflation assumption increased by 0.25% p.a. at each term +5.5% Members one yearyounger Cash commutation assumption increased by 10% Summary of Benefit5 Main benefits of the two underlying scheme5: NHSPS ScherTre 60th Birthday V80th of final pay for each omplete year of service Up to 3 time5the members pension LGPS Scheme 65th Birthday 1160th of final pay for each complete year of seNice Part of pension can be exchanged for a cash free sum In line with cpi From age 55 to 60 Normal retirement date NoTmal retirement pension Normal retirement cash Increase to pension Early retirement pension In line with rpi Available after the age of 55 or on ill health Death after retirement.. lump sum On death within S years of commencement of pension One half of members pension On death within 10 years of commencement of pension 37.5% of member5 pension * dependant's pension 18. ULTIMATE PARENT COMPANY The charity's parent company at the balance Sheet date was Kaleidoscope Project Icompany number 05480423, charity number 11150171, a charitable company incorporated in the UK.The parent'5 principal activities include the provision of holistic care and support service5 to those suffering due to poverty, age, infirmity, substance abuse or physical and mental hardship or distress. Copies of group accounts are available from either Companies House or from the re8i5tered Offi￿ at Resolven House, St Mellons Busines5 Park, Fortran Road. St Mellons, Cardiff CF3 OEY. The ultimate controlling party are the trustees of the parent company Kaleidoscope Project. Page 20 continued... ARCH IN￿lATIvEs Notes to the Financial Statements- continued for the Year Ended 31 March 2024 19. cobmNGEMf LIABILMES The charity may be required to repay funding rf tt fails to comply with conditions laid down by the various funding providers. Included in Investment properties is the purchase and refurbishment costs of a building on Argyle Street, Birkenhead. A grant of £5(KJ,000 was received from the Wirral Primary Care Trust Iwpcn towards these costs. wp￿ hold a legal charge over the propety dated 31 March 2009, the terms of which are that should the property be sold within 20 years a set pe￿ntage of the sales pr￿edS will revert back to WPCT. The percentage remittable is tapered down to 0% over 20 year5. As at 31 March 2024 the amount repayable would be.. £77,500 (2023 - £135,0001 20. RELATED PARTY DISCLOSURES The charitable company has tsken advantage of exemption. under the tenns of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,. not to disclose related partv transartions with wholly owned subsidiaries within the group. Page 21 REGISTERED COMPANY NUMBER: 02812012 (England and Wales) REGISTERED CHARITY NUMBER: 1024945 Report of the Trustees and Flnanaal Statements forthe Year Ended 31 March Z024 ARCH INITIATIVES Advantage Accountancy & Advisory Ltd Chartered Certified Accountants and Statutory Auditors Avalon House 5-7 Cathedral Road Cardiff CFII 9HA ARCH INITIA71VES Contents of the financral Statements forthe Year Ended 31 March 2024 Page Report of the Trustee5 I to 4 Report of the Independent Au￿ltorS Statement of Financial ArtlvitiÈs Balance Sheet Notes to the Fjnancial 5tstements 10 to 21 Detailed Statement of Financial Activittes 22 ARCH INITIATIVES Report of the Trustees for the Year Ended 31 March 2024 The trustees who are also directors of the charity for the purposes of the Comp3nie5 Act 20D6, present their report with the financial statements of the charity for the year ended 31 March 2024. The trustees havo adopted the provisions of Accc>unting and Reporting by Charities.. Statement of Recommended Practice applicablo to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 leffective I january 20191. OBJECTIVES AND A￿1VITIEs Objettives and aims ARCH Init13tives wa5 e5tabli5hed to provide services for people whose lives have been affected by Substance misuse. ARCH'S objective of service provision. is to SUPPOrt individuals, communities, stakeholders and families to tackle substance misuse and to develop a range of innovative high quality services that transform future5 and move individuals away from poor health and well-being, offending behaviour and unemployment. Our client range includes those who are dependant on illicit, legal and prescribed substance and those developing long term conditions or Specific illness as a result of dependence. The charity exists to provide public benefit by relieving poverty, sickness and distress amongst person5 affected by addiction to alcohol or drugs of any kind. This include5 those who are personally addirted and those families corers, and communities whose lives are impacted by substance misuse. STRATEGIC REPORT Achievement and performance Charltable activities In the year ended March 31, 2024 ARCH Intiiatives had no service contracts although Its properties were leased by charitable or statutory authorities who are directly involved in services consistent with the charity's objectives. In Bohon the NHS are currently the property tenant whilst in the Wirral. Chan8e Grow Live are the property tenant. Flnanclal review Financial position Income for the year 31 March 2024 is £75,07412023: £60.8681 and this mainly comprises property rental income. Total expenditure decreased to £42,37912023.. £53,7831.This resulted in an overall surplus of £25,769 compared to the prior years surplus of £7,085. Principal funding souros Principal funding source5 during the period were from property rental5. Reserves policy It is the opinion of the direttor5 that the charity should hold financial reserves. because it requires protertion against financial risks, as identified by the annual financial risk review; to provido for expansion of the charity's business,. to provide funds for investment in fixed assets- and to provide funds for unfynded 'board approved. special projects which enhance services and meet charitable objective5. Page I ARCH INITIATIVES Report of the Trustees forthe YeaT Ended 31 March 2024 STRATEGIC REPORT Financial review The definition of financial reserves for this purpose is the amount of unrestrirted ￿serveS not invested in fixed or other long term assets (net current assets excluding long term debtors). The charity conducts an annual financial risk review. This ￿VIeW has identified that the charity requires reserves to protett itself against the following principal risks: Delayed payment of property rentals causing unanticipated operdtional cash flow requirements. - Loss of property rent31 contracts. Properties requirin8 urgent repair5 or refurbishment As at 31 March 2024 the charity hadtotal funds of £349,545 ofwhith comprises.. - An endowment fund of £77,500 representing assets that must be held permanently by the charitable company; - An Un￿strICted funds surplus of £272,045. Principal risks and uncertalnties The trustees have asse55ed the major risks to which the charitable company is exposed, and are satisfied that systems a￿ in place to mitigate exposure to the major risks. Risk exists when there Is uncertainty surrounding events and thelr outcomes that may have a significant impatt on ARCH'S ability to: achieve its aims satisfy the expertations of its stakeholders- operate efficiently Future plans Discussions are taking place regarding the potential disposal of the Arch settion of the Mercer DB Master Trust (formerly known as the Federation planl. This will be progressed if the exit from the scheme is commercially attractive to the charity. STRucfuRE, GOVERNANCE AND MANAGEMEhir Governingdocument ARCH Initiatives is a company limited by guarantee governed by its Memorandum and Articles of Association dated 23rd April 1993 2nd constituted in accordan￿ with this document. The Charity is diretted by a Management Committee made up of 4 members. Member5 are recruited from a range of backgrounds, including health and social care and commer￿. The Management Committee's decision5 are focused on the approval and monitoring of any strategic business plans and the setting of the annual budget,. the monitoring of progress in the achievement of plans and performance against the agreed budget are the typical activities undertaken by the Management Committee. The Management Committee have delegated to the Chief Executive the responsibiltty for the management of the organisation. On 25 July 2016 Kaleidoscope Projert became the sole member of ARCH InitiatNes. Kaleidoscope Project is a registered charity Inurnber 11150171 and is also a company limited by guarantee (number 054804231 which was incorporated on 14 June 2005.Kaleidoscope Project'5 governing document 15 its memorandum and article5 of association as amended by special resolution dated 5 April 2006. On the same date, the Trustees of ARCH resigned to bE replaced by four of Kaleidoscope's Trustees. Consequently ARCH became part of the Kaleidoscope group on 2S July 2016. Page 2 ARCH INITIATIVE5 Report of the Trustees for the Year Ended 31 March 2024 The charity has an independent Board of Trustees drawn from a variety of backgrounds thu5 ensuring a diverse Board with a strong mix of ski115 and experience to take the charty fonNard. When appropriate, vacancies on the Board are advertlsed through media outlets and interviews condurted, to ensure new appointments will add to tho skills and experience of the existing Board. All new trustees are provided with historical and current information to enable them to appreciate the work and ethos of the charity. The Board is currently developing an induction and training programme for trustees as part of its governance strategy. The Board of Trustees aims to meet at least quarterly. The day-to day management of the Charity is delegated to the Group Chief Executive. who attends the Board of Trusiee meetings. Key management remuneration Arch Initiatives currently have no paid employees. REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 02812012 (England and Wales) Registered Charlty number 1024945 Registered office l Resolven House Fortran Road St Mellons Cardiff CF3 OEY Trustees Or D L Antebi Mrj M QKnight Mrs F Rutter (resigned 12.9.241 Mr S Davison (resigned 22.12.231 Dr A Procter (appointed 16.5.241 Senior Statutory Auditor Stephen John Bickerton Auditor5 Advantage Accountancy & Advisory Ltd Chartered Certified Accountants and Statutory Audr(ors Avalon House 5-7 Cathedral Road Cardiff CFII 9HA Chief Executive OffI￿r Martin Blakebrough Page 3 ARCH INmATtVES Report of the Trustees for the Year Ended 31 March 2024 STATEMETrwf OF TRusfEES' RESPONSIBIUTIE5 The trustees (who are also the direttor5 of Arch Initiatives for the purposes of company lawl are re5pon5ible for preparing the Report of the Trustee5 and the finèncial statements in accordance with applicable law and United Kingdorn Accounting Standards Iunrted Kingdom Generally Accepted Accounting Pratticel. Company law requires the trustees to Prepa￿ financial statements for each financial year which gnie a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resour￿$, including the income and expenditure, of the charitable company for that period. In preparing those financial ststernents. the trustees are required to Select suitable accounting policies and then apply them consistently: observe the methods and principles in the Charity 50RP; make judgements and estimates that are reasonable and prudent: prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper actounting records which disclose with reasonable accuraLry at any time the financial position of the charttable company and to enable them to ensure that the financial 5tstements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for tsklng reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: there is no relevant audit information of which the charitable company's auditors are unaware: and the trustees have taken all steps that they ought to have tsken to make themselves aware of any relevant audit infomiation and to establish that the auditors are aware of that information. AUDITORS The auditors, Advantage Accountsncy & Advisory Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. Report of the trustees, incorporatin8 a strategic reporL approved by order of the board of trustees, as the company diree(ors, on2WIJ2024... . and signed on the board's behalf by.. Dr A Procter- Trustee Page 4 Report of the Independent Auditors to the Member5 of Arch Initiatives Opinion We have audited the financial statements of Arch Initiatives (the 'charitable company'} for the year ended 31 March 2024 which comprise the Statement of Financial Artivities. the Balance Sheet and notes to the financial statement5, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law ènd United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial staternents: give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its incoming resource5 and application of resources, includin8 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 requirements of the Companies Act 2006. Basis lor opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those stsndards are further described in the Auditors, responsibilities for the audit of the financial statements section ol 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 UK, including the FRC'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 coDcÈrn In auditing the financial statements, we have concluded that the tru5tees' 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 i55ue. Our responsibilities and the responsibilities of the trustee5 Wlth respect to going concern are described in the relevant sections of this report. Other information The trustees are responsible for the other information. The other information comprises the Information included In the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our oplnion on the financial statemènts 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. In connection with our audit of the financial statements. our responsibility is to read the other information and, in doing so, consider whether the other information is materially incon515teAt with the financial statements or our knowledge obtained in the audit or othe￿iSe appears to be materially misstated. If we identify such material inconsistencies or apparent material mi55tatements. we are required to determine whether this give5 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 misststement of this other information. we are required to report that fatt. We have nothing to report in this regard. Opinions on other matter5 prescribed by the Companie5 Act 1006 In t>ur opinion, based on the work undertaken in the course of the audit-. the information given in the Report of the Trustee5 for the financial year for which the financial statements are prepared is consislent with the f inancial statements; and the Report of the Trustees has been prepared in accordance with applicable legal ￿qUirementS. Page 5 Report of the Independent Au(rrtors to the Members of Arch Initiatives Matter5 on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Art 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept or ￿tUrnS adequate for our audit have not been received from branches not visited by us- or the financial ststements are not in agreement with the accounting records and returns," or certain disclosures of trustees. remuneration spectfied by law are not made; or we have not received all the information and explanations we require for our audit- or the trustees were not entitled to take advantsge of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. Responsibilities of trustees As explained more fully in the Ststement of Trustees. Responsibilities. the trustees (who are also the direttors of the charitable company for the purposes of Company lawl are responsible for the preparation of the financi31 ststements and for being satisfied that they give a true and fair view, and for such internal control as the trustees deterrnine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the flnancial statements, the twstee5 are responsible for assessing the charitable company's ability to continue as a going concern, di5closin& as applicable. matters related to going con￿rn and using the going concern basis of accounting unless the trustees either intend to Ilquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Our responsibilities for the audrt of the financial ststements Our objectives are to obtain reasonable assuran￿ about whether the flnancial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinlon. Reasonable assurance is a high level of assurance, but is not a 8uarantee that an audit conducted in accordance with ISAS IUKI 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 user5 taken on the basis of these financial statements. IrrÈgularitie5, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detett material misstatements in respett of irregularities, including fraud The extent to which our prO￿d￿re5 are capable of detecting irregularities. including fraud is detailed below.. •The engagement partner ensured that the engagement team collectNÈty had the appropriate competence, capabillties and skills to identlfy or recognise non-complian￿ with applicable law￿ and regulation5; •We obtsined understanding of the legal and regulatory frameworks applicable to the company and the 5ettor in which they operate. We determined that the following laws and regulations were m05t significant: The Companies Act 2006 UK corporate taxation laws, employment legislation and health and safety legislation. •We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making inquiries to management. We corroborated our inquiries through our review of legal CDrrèspondence. •We assessed the 5usceptibility of the company's financial statements to material misstatements, including how fraud might occur. Audit procedures performed by the engagement team included: Page 6 Report of the Independent Auditors to the Member5 of Arch Initiative5 making enquirie5 of management as to where they considered there was susceptibility to fraud, their knowledge of actual, SLtspected and alleged fraud: identifying and assessinE the design effectiveness of controls management has in place to prevent and dètect fraud,. understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate Influen￿ over the financial reporting proces5- performing analytical procedures to identify any unusual or unexpected relationships,. • challenging assumptions and judgements made by management in it5 518nificant accounting estimates; identifying and testing journal entries, in particular any journal entries posted with unusual account combinations,. and assessing the extent of compliance with relevant laws and regulations. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transartions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any, Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may nvolve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financlal Reporting Council's website at www.frc.org.uklauditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Use of our report This report is made solely to the charitable Company's members, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken 50 that we might State to the charitable company's members 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 members as a body. for our audit work, for this report, or for the opinions we have formed. Stephen john Bickerton (Senior Statutory Auditor) for and on behalf of Advantage Accovntancy & Advisory Ltd Chartered Certified Accountants and Statutory Auditor5 Avalon House 5-7 Cathedral Road Cardiff CFII 9HA Date.. Page 7 ARCH INMATIVES Statement of Financial Artiwties for the Year Ended 31 March 2024 2024 Total funds 2023 Total funds Unrestricted fund Endowment fund Notes INCOME AND ENDOWMEpifs FROM Other trading activities Investment income 75.074 1,869 58,999 75.074 Total 75.074 75,074 60,868 EXPENDITURE ON Charitable arttvhies Charitable Activities 42,379 42,379 53,783 Net &ains/llossesl on investments 16,9261 16,9261 NETINCOME Transfer5 between funds 25,769 46,250 25,769 16 7,085 146.250) Net movement in funds 72,019 (46,2501 25,769 7,085 RECONCILIATION OF FUNDS Total funds brought forward 2(A),026 123,750 323,776 316.691 TOTAL FUNDS CARRIED FORWARD 272.045 77,500 349,545 323,776 The notes form part of these financial statements Page 8 ARCH INrriATIVES Balance Sheet 31 March 2024 2024 Total funds 2023 Total funds Unrestricted fund Endowment fund Notes FIXED ASSErs Investment property li 457,500 77,500 535,000 541,926 CURRENT ASSETS Debtors Cash at bank 12 9,750 789,670 256,648 256,648 256.648 256,648 799,420 CREDITORS Amounts falling due within one year 13 129,615} 129,6151 129,9741 NET CURRENT ASSETS 227,033 227,033 769,446 TOTAL ASSETS LESS CURRENT UABILrriES 684,533 77.500 762,033 1,311,372 CREDITOR5 Amounts falling due after more than one year 14 1350,822) 1350,8221 1893,9291 PROVISIONS FOR LIABILITIES 15 161,6661 161,6661 193,6671 NET ASSErs 272,045 77,5CI) 349,545 323,776 FUNDS Unrestricted funds Endowment funds 16 272,045 77,500 200,026 123,750 TOTAL FUNDS 349,545 323,776 These financial Statements have been prepared in accordance with the provisions applicable to charitable companies 5ubjert to the small companies re8ime. The financial statements were approved by the Board of Trustees and authorised for issue 2011212024 and were signed on its behalf by.. on 2011212024 Dr A Procter- Trustee The notes form part of these financial statements Page 9 ARCH INITIATfrfES Notes to the Financial StstemÈnts for the Year Ended 31 March 2024 ACCOUNTING POLICIES Basis of preparing the financial ststements The financial statements of the charitable company. which is a public benefit entity under FRS 102, have been prepared in accordance with the Charitie5 SORP IFRS 1021 'Accounting and Reporting by Charities: Statement Df Recommended Prattice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 (effective l January 20191,, Financial Reporting Standard 102 'The Financial Reporting Stsndard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets. Financial reporting stsndard IOZ- reduced disclosure exemptions The charitsble company has taken athiantage of the following disclosure exemptions in preparing these financial statements. as permitted by FRS 102 Yhe Financial Reporting Stsndard applicable in the UK and Republic of Ireland,: the requirements of Section 7 Statement of Cash Hows: the requirement of parngraph 3.17ldl-, the requirements of paragraphs 11.42, 11.44. 11.45, 11.47, 11.481al(iii), 11.48lal(ivl, 11.48(b) and 11.48lcl,' the requirement of paragraph 33.7. Going Concern The charity has made a proftt thls year of £25.769 (2023: £7,085). The trustees believe that the combination of current assets and future resources will be Sufficient to cover its liabilities,. therefore the accounts should be prepared on a going concern basis. Income All income is recognised in the Statement of Financial Attivities On￿ the tharity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Rental income is recognised in the period to which tt relates. Income from other charitable artrvities includes amounts received under contrart. and is recognised where there is entitlement certainty of receipt and the amc)unt can be measured wffch sufficient reliability. Expenditure Liabilities are recognised as expenditu￿ as soon as there is a legal or constructive obligation committing the charity to that expendrture, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accrua15 basis and has been classified under heading5 that aggregate all wst related to the category. Where cost5 cannot be dirertly attributed to particular headings they have been allocated to attivitie5 on a basis con515tent with the use of resources. Tansible ftxed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Fixtures and fittings 20% on reducing balance Investment property Investment property is shown at m05t recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Attivitie5. Page 10 ontinued... ARCH INtfiAThIES Note5 to the Financial Statements - continued for theyear Ended 31 March 2024 ACCOUNTING POLICIES- continued Taxation Arch Initiatives is considered to pa55 the tests set out in Paragraph I Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from tsxation in respert of income or capital gains received within categorie5 covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of ChargeablÈ Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Fund accounting Unrestrirted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restrirted funds can only be used for particular restricted purposes within the objerts Df the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Restricted Funds The restricted fund relates to the Public Health England grant. This grant was awarded to pay for building refurbishment and other f5xed assets purchased. Expenditure has been capitslised and the grant has been amortised over the Ilfe of the respective assets. Endovm)ent Funds The Wirral PCT endowment fund 15 a grant expre55ly for the purpose of purchasing and refurbishin8 the property known as 88-90 Argyle Street. In accordance with the grant agreement.these grants will be credlted to the endowment fund and likewise restricted to the purpose of the developmenL of the property. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. Pension costs and other post-retirement benellts The charity operates a defined benefits pension scheme. The scheme is a multi employer scheme and the details are shown in note 17. LeasinB commitments Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line ba55S over the period of the lease. OTHER TRADING ACTIVITIES 2024 2023 Miscellaneous income 1,869 Page 11 continued... ARCH INMATIVES Notes to the Finanaal Statements- continued for the Year Ended 31 March 2024 INVESTMENT INCOME 2024 2023 Rents received Deposit account interest 59,385 15,689 58.999 75,074 58,999 CHARrrABLE A￿[VITIEs cosrs Support costs (see note 51 Direct Costs Totsls Charitable Attivities (2,5091 44.888 42,379 SUPPORT COSTS Governan costs Management Finance Totals Charitable Activitie5 19,520 21.368 4.000 44,888 Support Costs, included in the above, are as follows: 2024 Charitable Activities 2023 Total artivities Audit & accountancy fee5 Legal & professional fees Management charges Pension deficit Bank charges Auditors. remuneration 1,262 8.258 10,000 21.360 2,924 11,244 10,000 22,413 4,000 2,500 44.888 49,081 NET INcOME/(EXPEND￿URE} Net income/lexpenditurel is stated after charging/lcreditingl: 2024 2023 Auditors, remuneration 4.000 2,500 Page 12 continued... ARCH INITIATIVE5 Notes to the Financial Statements- continued forthe Year Ended 31 March Z024 TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023. Trustees, expen5ÈS There were no 31 March 2023. trustees. expense5 paid for the year ended 31 March 2024 nor for the year ended STAFF COST5 There are no staff employed as the charity is administrated by Kaleid05cope Project. COMPARATIVES FOR THE STATEMENT OF FINANCIALAcnvtriES Unrestricted fund Endowment f und Total fund5 INCOME AND ENDOWMENTS FROM Other trading activities Investment income 1,869 58,999 I,B69 58,999 Total 60.868 60,868 EXPENDITURE ON Charitable attivities Charit3blÈ Attivities 53,783 53,783 NET INCOME Transfers between funds 7,085 11,250 7,085 111,2501 Net movement in funds 18,335 111,2501 7,085 RECONCILIATION OF FUNDS Total funds brought forward 181,691 135.000 316,691 TOTAL FUNDS CARRIED FORWARD 2￿,026 123,750 323,776 Page 13 continued.. ARCH INrnATIVES Notes to the finartial Statements- Continued forthe Year Ended 31 March 2024 io. TANGIBLE FIXED ASSErs Fixtures and fittings cosr At IApril 2023 and 31 March 2024 284,764 DEPRECIATION At l April 2023 and 31 March 2024 284,764 NFf BOOK VALUE At 31 March 2024 At 31 March 2023 ii. INVESTMENf PROPERTY FAIR VALUE At l April 2023 Revaluation 541,926 16,9261 At 31 March 2024 535,000 NEf BOOK VALUE At 31 March 2024 535,000 At 31 March 2023 541,926 An Independent valuation of the investment property was undertaken post year end on 19 September 2024. The trustees consider this to be an accurate reflettion of fair value at 31 March 2024. 12. DEBTORS:AMouMfs FALUNG DUE WITHIN ONE YEAR 2024 2023 Trade debtors 9,750 Page 14 continued... ARCH INITIATP4ES Notes to the Financial Statements- continued for the Year Ended 31 March 2024 13. CREDITORS., AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade creditors Accruals and deferred income io,ooo 19,615 14,974 15,000 29,615 29,974 14. CREDITOR5: AMOUNTS FALLING DUE A￿ER MORE THAN ONE YEAR 2024 2023 Amounts owed to group undertakin8S 350,822 893,929 15. PROVISIONS FOR LIABILITIES A provision of £61,666 is being carried for the amount due on the Charity's defined benefit pension scheme. The details of the scheme are disclosed in note 17. At the end of the year the actuarial valuation indicated that the scheme was in an asset position of £201,000. This amount has not been reco8ni5ed in the accounts as it is the Charity's intention to withdraw from the scheme should a reasonable buy out position be negotiated. Current discussions have highlighted that the mount would be in the region of £42,000 to £102.000. Due to this it is felt that the current liability held is a more ac¢urate reflection of the Charity's Posltion than the £201,000 asset. 16. MOVEMENT IN FUNDS Net movemeAt in funds Transfers between funds At 31.3.24 At 1.4.23 Unrestricted funds General fund 200,026 25.769 46.250 272,045 Endowment funds Wirral pcr 123,750 146,2501 77,500 TOTAL FUNDS 323,776 25,769 349,545 Net movement in funds, included in the above are as follows: Incoming resources Resources expended Gains and losses Movement in funds Un￿Stricted funds General fund 75,074 {42,379 16.9261 Z5,769 TOTAL FUND5 75,074 142,3791 16.9261 25,769 Page 15 continued... ARCH INITIAnVES Notss to the Financial Statements- continued forthe YÈar Ended 31 March 2024 16. MOVEMETrif IN FUNDS- continued Comparatives for movement in funds Net movement in funds Transfers between funds At 31.3.23 At 1.4.22 Unrestricted funds General fund 181.691 7,085 11,250 200,026 Endowment funds Wirral PCT 135,000 111,2501 123,750 TOTAL FUNDS 316,691 7,085 323,776 Comparative net movement in funds. included in the above are as follows: Incoming resources Resources expended Movement in funds Unrestricted funds General fund 60.868 153,7831 7,085 TOTAL FUNDS 60,868 {53,7831 7,085 A currentyear 12 months and prioryear 12 months combined position is as follows., Net movement in funds Transfers between funds At 31.3.24 At 1.4.22 Unrestricted funds General fund 181,691 32.854 57.500 272,045 Endowment fiinds Wirral pcr 135,0(J) 157.500) 77,500 TOTAL FUNDS 316.691 32.854 349,545 Page 16 continued... ARCH INITIATIVES Notes to the Winancial Ststement5- continued for the Year Ended 31 March 2024 16. MOVEMENT IN FUNDS- continued A current year 12 months and prior year 12 months combined net movement in funds. included in the above re as follows: Incoming resources Resources expended Gain5 and losses Movement in funds Unrestrirted funds General fund 135,942 196,1621 16,9261 32,854 TOTAL FUNDS 135,942 196,1621 16,9261 32,854 Unrestricted funds The unrestricted fund5 comprise those fund5 which the trustees are free to use in accordance with the charitable objectives. Endowmentfund5 The Wirral PCT endowment fund is a grant expressly for the purpose of purchasing and refurbishing the property known as 88-90 Argyle Street. In accordance with the grant agreement these srants will be credited to the endowment fund and likewise ￿$trIcted to the purpose of the development of the propety. 17. EMPLOYEE BÉNEFIT 08LIGATIONS Arch Initiatives participates in the Mercer DB Master Trust Ithe scheme) formerly known as The Federation Plan, The scheme is a multi-employer defined beftefft scheme. We are now reporting the result5 of the 2023 actuarial valuation. Scheme Membership Membership of the scheme is made up of 6 deferred pensioners and 2 retired pensioner5, there are no active pensioners. The data attributable by type of member is as follows: Member Deferred members Description Total deferred pensions revalued to valuatior. date - 1£ p.a.) Average age weighted Total pensions payable l£p.a. } Average age weighted by pension 5 April ZOZ3 5.845 5 Aprll 2020 6,808 Deferred members Pensioners Pensioners 47 2,484 71 2,103 68 The breakdown of the liability is set out below-. 2023 Valuation £'OOOs 419 1421 (1761 201 192% 20ZO Valuation £'OOOs 234 1541 13321 {1521 Description Assets Liabilities Pensioner5 Liabilities- Deferred members Overall position Funding Level Page 17 ontinued... ARCH INmAnVES Notes to the Financial 5tatements- continued forthe Year Ended 31 March 2024 17. EMPLOYEE 8ENEFrr OBLIGATIONS- continued Assets Summary Revised Investment strategy after 5 April 2023 % 30 5 Awil 2023Allo&ition £'ooo 414 5 April 2023 Allocation % 99 Pooled Investments Vehicles Bank Tailored Credtt UK Inllation Linked Gifts Sterling Inflation Linked LDI Totsl 20 40 io 419 ILM) Analysis ol Experien￿ Slnce Last Valuation Shortfall on 5 April 2023 Interest Contributions les5 expenses Changes in market conditions Iliabilty impatt) Excess investment returns Inflation experience Impart of changes to statement of funding principles Miscellaneous Surplus on 2023 assumptions £'ooo (1521 12} 58 183 128 1401 28 {21 201 Expected 2023 shortfall Estimated shortfall at 2023 on 2020 assumptions (96) 175 Changes Since the Valuation Date The return on the penslon assets in the period April 1, 2023 to August 31. 2023 was estimated at - 4%. This does not take into account any contributions received or benefits paid out since the valuation date. Had the onditions at August 31, 2023 applied at the valuation date, it is estimated that the technical provision would have been 15% lower than the value in this report. Taken together the change in financial condition5 would have led to an improvement in the overall funding position. Financial Assurnptio￿- Main Finanaal a55umption5 forTechnical provisions 2023 Valuation Gilt curve +1.4% p.a. Gilt curve +0.5% p.a. Inflation curve Rp1￿.75% until 2030 RPI from that year In line with RPI assumptions In line with CPI assumptions Gilt curve +0.5% p.a. 3.65%p.a. 3.35% p.a. Pre retirement discount rate Post retirement discount rate RPI Inflation CPI Inflation 2020 Valuation Gilt curve +1.5% p. Gilt curve +0.5% p. Inflation curve RPI-0.75% p.a.until 2030 RPI from that year In line RPI assumptions In line with CPI assumptions GiFt curve +2.OYo p.a. 0.69%p.a. 2.71% p.a. RPI pension increases CPI pension increases Recovery plan return Average Gilt Yield curve Average inflation curve Page 18 continued,.. ARCH INITIATNES Notes to the Financial Statements- continued for the Year Ended 31 March 2024 17. EMPLOYEE BENEFIT 08UGATIONS- continued Demographlc a55umptions- for Technical provisiOIIS 2023 Valuation IIS% of S3PxA CMI 2022[1.S%. S Corel 2020 Valuation 115% of 53PxA CMI 201911.5%,5=7.51 Mortality- base table Mortality- future improvements CPI inflation RPI -0.75% until 2030 RPI from that RPI -0.75% until 2030 RPI from that year year 90% married for both males and 90% married for both males and females females All members assumed to retire at All members assumed to retire at normal retirement age. Members normal retirement age. Members who who are past their normal are past their normal retirement are retirement are assumed to retlfe at assumed to retire at the valuation date. the valuation date. No cash commutation where benefit formula includes cash. Where the benefit formula doe5 not include cash, members are assumed to take 50% of thelr maximum cash entitlement, based on the current cash commutation factor. 50% of 3180ths using cuirent commutation factors for members without cash on top. No allowance (funded by separate } contributions by the employer. Proportions married Age of retirement Commutation 50% of 3180th5 using current commutstion factor5 for members without cash on top Expenses No allowance IfLanded by separate I contribution5 by the employer. Other Assumptions Assumed rate during inter valuatlon period p.a. 15.73% Assumed rate at last valuation p.a. 0.63% Investment returns- assumed for the purpose of the 2020 recovery plan Revaluation up to retirement in line with RPI in line with CPI Pension increases in payment in line with RPI in line with CPI 2.57% 1.82% 6.09% 4.49% 2.57% 1,82% 6.09% 4.49% Global Pandemics and Climate Change For the 2023 valuation the potential impacts of global pandemics and climate change have been considered. These included the following climate change shock scenarios.. Potential Impact12023 and I Z020 valuatlon -0.5%p.a. +0.5%p. UK long dated interest date Inflation Page 19 continued... ARCTrI INrnAnVES Notes to the Financial Statements- continued for the Year Ended 31 March 2024 17. EMPLOYEE BENEFrr OBUGATIONS- continued UK life expettancy -0.25 years Equity market re-pricing Diversified growth fund r&priting-7.5% Investment grade credit spread widening Impatt on high yield debt -0.25 years -15% -7.5% 0.2%p.a. Technical Provisions Sensitivity % Change in Liability *2.3% +3.2% +5.5% +2.8% +less than 0,1% Pre retirement discount rate redU￿d by 0.25%p.a. at each tenn +2.3% Post retirement discount rate reduced by 0.25% p.a. at each term Inflation assumption increased by 0.25% p.a. at each term +5.5% Members one yearyounger Cash commutation assumption increased by 10% Summary of Benefits Maln benefits of the two underlying schemes". NHSPS Scheme 60th 8irthday 1/80th of finèl pay for each complete year of servi Up to 3 times the members pension Normal reti￿rnent date Normal retirement pension LGPS Scheme 65th 8irthday ty60th of final pay for each complete year of Service Part of pension can be exchan8ed for a cash free sum In line with cpi From age $5 to 60 Normal retirement cash Increase to pension Early retirement pension In line with rpi Available after the age of 55 or on ill health Death after retirement: lump sum On death within 5 years of commencementof pension One half of members pension On death within 10 year5 of commencement of pension 37.5% of members pension * dependant's pension 18. ULnMATE PAREprf COMPANY The charity's parent company at the balance sheet date was Kaleidoscope Project (company number 05480423, charity number 11150171, a charitsble company incorporated in the UK.The parÈnVs principal activities include the provision of holistic care and 5UPPOrt services to those suffering due to poverty, age, infirmity, substan abuse or physical and mentsl hardship or distress. Copies of group accounts are available from either Companies House or from the registered office at Resolven House, St Mellons Busine55 Park. Fortran Road, St Mèllons, Cardiff CF3 OEY. The ultimate controlling party are the trustees of the parent company Kaleidoscope Project. Page 20 continued... ARCH INITIATIVES Notes to the Financial Statements- continued for the Year Ended 31 March 2024 19. CONTINGENT LIABILITIES The charity may be required to repay funding if it fails to comply with conditions laid down by the various funding providers. Included in Investment propertie5 is the purchase and refurbishment costs of a building on Argyle Street, Birkenhead. A grant of E500,000 was received from the Wirral Primary Care Trust IWPCTI towards these costs. wpcr hold a legal charge ovef the property dated 31 March 2009, the tems of which are that should the property be sold within 20 year5 a set percentage of the sales proceeds will revert back to WPCT. The percentage remittable is tapered down to 0% over 20 years. As at 31 March 2D24 the amount repayable would be.. £77,50012023 - £135,000) zo. RELATED PARTY DISCLOSURES The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,. not to disc105e related party transaction5 With wholly owned Subsidiaries within the group. Page 21 ARCH INMATIVES Detsiled Statement of Financial Activitses for the Year Ended 31 March 2024 2024 2023 INCOME AND ENDOWMErirs Other trading artivities MiscellaneoLfS income 1,869 Investment income Rents received Deposit account interest 59.385 15,689 58,999 75,074 58,999 Total incomlng resources 75,074 60,868 EXPENDITURE Charltable activities Premises costs 12,5091 4,702 Support costs Management Audit & accountancy fees Legal & professional fees Management charges 1,262 8,258 10,000 2,924 11,244 10,000 19,520 24,168 Finance Pension deficit Bank charges 21,360 22,413 21,368 22,413 Governance costs Auditors, remuneration 4,000 2,500 Total ￿sOurCeS expended 42,379 53,783 Net income before gains and10sses 32.695 7,085 Realised recoEnised gain5 and losses Realised gains/llo55esl on investment property 16,9261 Net incomè 25,769 7,085 This page does not forni part of the statutory financial 5tstements Page 22