REGISTERED COMPANY NUMBER: 02g12012 (England and Wales} REGISTERED CHARITY NUMBER: 1024945 Report of the Trustees and Ftnantial Statements for the Year Ended 31 March 2025 for ARCH INITIATIVES
ARCH INITIATIVES Contents of the Finanelal Statements for the Year Ended 31 March 2025 Page Report of the Trustees Report of the Independent Audltors ststement of Financial Artivities Balance Sheet Notes to the Financial Ststements 10 to 19
ARCH INITIATIVES Report of the Trustees for the Year Ended 31 March 2025 The trustees who are also directors of the charity for the purposes of the Companies Act 2006) present thelr report with the financial statements of the charity for the year ended 31 March 2025, The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charitie5 preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective l January 20191. OBJECTIVES AND ACTIVITIES Objectives and aims ARCH Initiatives was established to pro)Ade services for people whose lives have been affected by substance misuse. ARCH'S objective of service provision, is to support individuals. communities, stskeholders and families to tsckle sub5tantÈ misuse and to develop a range of innovative high quality Services that transform futures and move individuals away from poor health and well-belng, offending behaviour and unemployment. Our client range includes those who are dependant on illicit, legal and prescribed substances and those devÉloping 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 persons affected by addiction to alcohol or dru8s of any kind. This includes those who are personally addicted and those families carers, and communitles whose lives are Impacted by substsnce misuse. STRATEGIC REPORT Achlevements and performance Charitable activities In the year ended 31 March 2025 ARCH Initiatives had no serwce tontracts although its properties were leased by charitable or statutory authorities who are directly involved in servi$ consistent with the charity's objectives. In Bolton the NHS are currently the property tenant whi15t in the Wirral, Change Grow Live are the property tenant. Finaneial review Financial position Income for the year 31 March 2025 is £64,50412024: £75,07413nd this mainly comprises property rental income. Total expenditure decreased to £30.99812024: £42.3791.This resulted in an overall surplus of £33,506 compared to the prior years surplus of £25,769. Princlpal fundlng sources Principal funding sources during the period were from property rentals. Reserves policy It is the opinion of the dlre¢tors that the charity should hold financial resetves- because it requires protection against financial risks. as identified by the annual financial risk remew: to provide for expansion of the charity's business; to provide funds for Investment in fixed assets. and to provide funds for unfunded 'board approved, special projects which enhance seNices and meet eharitable objectives. Page I
ARCH INITIATIVES Report of the Trustees for the Year Ended 31 March 2025 STRATEGIC REPORT Financial ieview The definltion of financlal reserves for thi5 purpose is the amount of unrestrlcted reserves not invested in fixed or other long term assets (net Current assets excluding long term debtors). The charity tonducts an annual financial risk review. Thls review h35 identlfled that the charity requires reserves to protert itself against the followlng principal risks: Delayed payment of property renta15 cau51ng unanticipated operational cash flow requirements. Loss of property rental contracts. Propertie5 requlring urgent repairs or refurbishment As at 31 March 2025 the charity had total funds of £383,051 of which comprises.. An endowment fund of £69,750 representing 35sets that must be held permanently by the charitable company; An unrestricted funds surplus of £313,301. Principal risks and uncertainties The trustees have assessed the major risk5 to which the charltable comp2ny15 exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. Risk exists when there is uncertainty surrounding events and their outcomes that may have a slgnific3nt Impart on ARCH'S ability to., achleve Its aims sat15fy the expectations of its stakeholders- operate efficiently Future plans Discussions are taking place regarding the potential disposèl of the Arch section of the Mercer D8 Master Trust Iformerly known a5 the Federation planl. This wlll be progressed if the exit from the stheme Is commerclally attractlve to the charity. STRUCTURE, GOVERNANCE AND MANAGEMENT Governlng document ARCH Initiatives is a company limited by guarantee governed by its Memorandum and Articles of Assoclatlon dated 23rd Aprll 1993 and constltuted in accordance with this document. The Charity is directed by a Management Committee made up of 3 members. Member5 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 business plans and the setting of the annual budget,. the monitoring of progress in the achlevement of plans and performance against the agreed bud8et are the typical activities undertaken by the Man8gement Committee. The Mana8ement Committee have delegated to the Chief Executive the responsibility for the management of the orEalli5ation. On 25 July 2016 l<aleidoscope Project became the sole member of ARCH Initiatives. Kaleidoscope Project is a registered charity (number 11150171 and is also a company limited by guarantee (number 054804231 which was incorporated on 14 June 2005. Kaleldoscope Project's governing document15 its memorandum and arti¢les of association as amended by special resolution dated S April 2006. On the same date, the Trustees of ARCH reslgned to be replaced by four of Kaleldoscope's Trustees. Consequentiy ARCH betame part of the Kaleidoscope group on 25 July 2016. Page 2
ARCH INITIATIVES Report of the Trustees for the Year Ended 31 March 2025 The charity has an independent Board of Trustees drawn from a variety of backgrounds thus ensuring a diverse Board with a strong mix of skills and experience to take the charity forward. When appropriate, vacancies on the Board are advertised through media oudets and interviews conducted, to ensure new appointments will add to the skills and experien of the existing Board. Ail new trustees are provided with historical and current infomiation to enable them to appreciate the work and ethos of the thèrity. 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 is delegated to the Group Chief Executlve, who attends the Board of Trustee meeting5. Key manègement remuneration Arch Initiatives currently have no paid employees. REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 02812012 {EngEand and Wale5} Registered Charlty number 1024945 Reglstered offlce l Resolven House Fortran Road St Mellons Cardiff CF3 OEY Trustees Dr D L Antebi Mrj M QKni8ht Mrs F Rutter (resigned 12.9.241 Dr A Procter (appointed 16.5.241 Senlor 5tatoryAUditor stephen John Bickerton Auditors Advantage Accountancy & Advisory Ltd Chartered Certified Accountants and Statutory Auditors Avalon House 5-7 Cathedral Road Cardiff CFII 9HA Chief Executive OffIr Rondine Molinaro Page 3
ARCH INITIATIVES Report of the Trustees for the Year Ended 31 March 2025 STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees Iwho are also the directors of Arch InStiatlves for the purposes of company lawl are responsible for preparlng the Report of the Trustees and the financial statement5 in accordance with applicable law and United Kingdom AccountlnE Stsndards (United Klngdom Generally Accepted Accounting Practicel. Company law reqtjires the trustees to prepare financlal statements for each financial year. Under that law, the trustees have elected to prepare the finaneial statements in accordance with Unlted Kingdom Generally ACpted Account5ng Practice Iunited Kingdom Accounting Standards and applicable lawl. Under company law the trustees must not approve the financial statements unless they are Satisfied that they 8ive a true and fair view of the state of affairs of the ¢harltable 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 select suitable accountlng policies and then apply them conslstently,, observe the methods and principles in the Charities 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 accounting records which disclose with reasonable accuracy at any tSme the flnanclal p051tion of the charltable company and to enable them to ensure that the financSal statements comply with the Companies Act 2006. They are also responsible for safeBuarding the assets of the charitable company and hence for t3kinE reasonable steps for the prevention and detection of fraud and other irregularities. In so far a5 the trustees are aware.. there Is no relevant audit informatlon of whlch the charitsble company's auditors are unaware; and the trustees have taken all steps that they ought to h3ve taken to make themselves aware of any relevant audit informatlon and to establish that the audltors are aware of that information. AUDITORS The auditors, Advantage Accountancy & Advisory Ltd, will be proposed for re-appointment at the forthcoming Annual General Meetin8. Report f directo trustees inco porating a strateglc report. approved by order of the board o* trustees, as the company . and signed on the board's behalf by.. roc er- Trustee Page 4
Report of the Independent Auditors to the Members of Arch Initiatives Opinion We have audited the finantial statements of Arch Initiatives (the 'charitable company'l for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the fln3nci31 statements, in¢luding a summary of significant accounting policies. The financial reporting fr3mework that has been applied in their preparatlon is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In our opinion the ftnancial statements: give a true and fair view of the stste of the charitable company's affair5 as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Prartice; and have been prepared In accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Stsndards on Auditing IUKI ItSAs IUKII and applicable law. Our responsibilities under those standards are further described in the Audltors, responsibilitie5 for the audit of the finanual statements Section of our report. We are Independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibillties in accordance with these requirement& We believe that the audit evidence we have obtsined is sufficient and appropriate to provide a basis for our opinion. Con¢lusions re13ting to going concern In auditing the financial ststements, we have concluded that the tnjstees, use of the going concern basis of accounting in the preparation of the financial ststÈments 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 slgnificant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the finanaal ststements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going Concem are described in the relevant sections of thi5 report. other infomiation The trustee5 are responsible for the other Information. The other infom)ation comprises the information induded in the Annual Report. other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information amo* except to the extent otherwise explicitly stated in our report, we do not express any form of assurance tonclusion thereon. In connection with our audit of the financial statements, our responsibility is tts read the other information ind, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistenues or apparent material misstatements, we are required to determine whether this gTves rise to a matÈrial mlsststement in the financial statements themselves. If, based on the work we have performed, we conclude that there Is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: the Information given in the Report of the Trustees for the financial year for which the financial strdtements are prepared is con515tent with the Pinanaal statements- and the Report of the Trustees ha5 been prepared in accordance with applicable legal requirements. Page 5
Report of the Independent Audltor5 to the Members of Arch Initiatives Matters on whlch we are required to report by exceptlon In the light of the knowledge and understanding of the charitable company and it5 envlronment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustee5. We have nothing to report In respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept or returns adequate for our audit have not been recelved from branches not visited by us; or the financlal statements are not in agreement with the accounting records and return5. or certain disclosures of trustees, remuneration specified by law are not made,. or we have not recelved all the Information and explanations we require for our audit; or the trustees were not entitled to take advantage 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 explèlned more fully in the Statement of Tru5tees' Respcsn5ibllltles, the trustees Iwho are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the flnancial statements and for being 5at15fied that they give a true and falr vlew, and for such Internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company'5 ability to continue as a 8oin8 concern, disclosing, as applltable, matters related to golng concern and using the going concern basis of accounting unless the trustees elther intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Our re5ponsibillties for the audit of the finantial statements Our objectives are to obtsin reasonable assurance about whether the financial statements as a whole are free from material mlsstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS 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 users taken on the basis of these financial statements. The extent to which our proced¥Jres are capable of detectin8 Irregularltles, Including fraud Is detalled below.. •The engagement partner ensured that the engagement team collectlvely had the appropriate competence, capabilities and skills to Identtfy or recognisè non-compliance with applicable laws and regulations,. •We obtained understanding of the legal and regulatory frameworks applicable to the company and the 5ertor in which they operate. We determined that the following laws and regulations were most signlflcant.. The Companies Act 2006 UK corporate taxation laws, employment legislation and health and safety legislation. •We obtained an understanding of how the company are complylng with those legal and regulatory frameworks by making inquiries to management, We corroborated our inquiries through our review of legal correspondence. •We assessed the 5usceptlbllity of the company's financial statements to material misstatements, including how fraud might occur. Audit procedures performed by the engagement team included: Page 6
Reportof the Independent Auditorsto the Members of Arch Initiattves making enquiries of management as to where they considered there was Susceptibility to fraud, their knowledge of actual, suspected and alleged fraud- identifying and assessing the design effectiveness of controls management has in place to prevent and detettfraud; understanding how those charged with governance considered and addressed the potential for override of ontrols or other inappropriate influence over the financial reporting procÈ55; performing analytical procedures to identify any unusual or unexpected relationships; • challenging assumptions and judgement5 made by management in its significant accounting estim2tes' identifying and testingjourn31 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 procedure5 described above. The more removed that laws and regulations are from financial transactions, the less Ilkely it is that we would betome 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 frBud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibllities for the audit of the financial statements is located on the Financial Reporting Council's website at ww.frc.org.uklauditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Use of our report Thi5 report is made solely to the charitable company's member5, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so 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 bylaw, we do not accept or asssjme responsibility to anyone other than the charitable company and the charitsble company's members as a bodyi for our aLtdit work. for this report, or for the opinions we have formed. Stephen John Biekerton (Senior Ststutory Auditor) for and on behalf of Advantage Accountancy & Advisory Ltd Chartered Certified Accountants and Ststutory Auditors Avalon House 5-7 Cathedral Road Cardiff CFII 9HA Page 7
ARCH INITIATIVES Statement of Financial Actlvitles for the Year Ended 31 March 2025 2025 Total funds 2024 Total funds Unrestricted fund Endowment fund Notes INCOME AND ENDOWMENTS FROM Investment Income 64,504 64,504 75,074 EXPENDITURE ON Chaiitable activities Charitable actlvities 30,998 30,998 42,379 Net gain5lllossesl on investments 16,9261 NETINCOME Transfers between funds 33,506 7,750 33.506 25,769 13 17,7501 Netrnovement in funds 41.256 17.7501 33,506 25.769 RECONCILIATION OF FUNDS Total funds brought forward 272,045 77,500 349,545 323,776 TOTAL FUNDS CARRIED FORWARD 313,301 69,750 383,051 349,545 The notes form part of these financial statements Page 8
ARCH INITIATIVES Balance Sheet 31 March 2025 2025 Total funds 2024 Total funds Unrestricted fund Endowment fund Note5 FIXED ASSErs Investment property 465,250 69.750 535,000 535,000 CURRENT ASSETS Cash at bank 272.542 272,542 256.648 CREDITORS Amounts falling due within one year io {18,4151 {18,4151 129,6151 NET CURRENT ASSETS 254,127 254,127 227,033 TOTALASSET5 LESS CURRENT LIABIUTIES 719,377 69.750 789,127 762,033 CREDITORS Amounts falling due after more than one year li 1364,0761 (364,0761 1350,8221 PROVISIONS FOR LIABILrriES 12 142,0001 142,0001 161,6661 NFf ASSETS 313,301 69,750 383,051 349,545 FUNDS Unrestricted fund5 Endowment funds 313,301 69,750 272,045 77,500 TOTAL FUNDS 383,051 349,545 These financial statements have been prepared in accordance with the provisions applicable to charitable companies subje¢t to the small companles regime. The fi ancial ents were approved by the Board of Trustees and authorised for issue - and were signed on its behalf by., on Dr A Procter- Trus The notes form part of these financial statements Page 9
ARCH INITIATIVES Notes to the Financial Statements for the Year Ended 31 March 2025 ACCOUNTING POLICIES Basis of preparing the financial statements The financial statements of the charitsble company, which is a public benefit entlty under FRS 102, have been prepared In accordance with the Charities SORP IFRS 1021 'Accounting 2nd Reporting by Charities: Statement of Recommended Practice applicable to charlties preparing thelr èccounts In accordance with the Financial Reporting Standard appllcable in the UK ènd Republic of Ireland IFRS 1021 lelfective l January 20191,, Financial Reportlng Standard 102 'The Financial Reporting Standard 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 revaluatSon of certain assets. Flnanclal reporting standard 102- reduced di5¢1osure exemption5 The charitable company has taken advantage of the followin8 disclosure exemptions in prepartnE these financlal statements. as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,: the requirements of Section 7 Ststement of Cash Flows,. the requirement of paragraph 3.17ldl,' the requirements of par8graphs 11.42, 11.44, 11.45, 11.47, 11.481alliiil, 11.48lallivl, 11.48lbl and 11.48lcl,' the requirement of paragraph 33.7. Golng Concern The d)arity has made a profit this year of £33,50612024'. £25,7691. The trustee5 believe that the combination of current assets and future resources will be sufficient to cover its liabilities., therefore the accounts should be prepared on 3 going concern basis, Income All income Is recognised in the Statement of Financlal Activities once the charity has entitlement to the funds, it is probable that the Income will be recelved and the amount can be measured reliablv. Rental income is recognised in the perlod to which it relates. Income from other charitable activities includes amounts received under contract, and is recogni5ed where there is entltlement, certainty of receipt and the amount can be measured with sufflcient rellability. Expenditure Liabilltles are recognised as expenditure as soon as there is a legal or constructive obllgation committing the charity to that expenditure, it is probable that a transfer of economic benefvts will be required In settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basls and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to aettvitles on a basi5 conslstent with the use of resources. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful Fixtures and fittings 20% on reducing balance Investment property Investment property is shown at most recent valuation. Any aggregate surplus or deficit arisinE from changes in falr value is recognised in the Statement of Financial Activities. Page 10 continued...
ARCH INITIATIVES Notes to the Financial Statements- continued for the Year Endèd 31 March 2025 ACCOUNTING POLICIES- Continued Taxation Arch Initiatives is considered to pass the tests set out in Paragraph I Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitsble company for UK corporation tax purposes. Accordingly, the charity 15 potentlally exempt from tsxation in respect of income or Capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusNely to charitable purposes, Fund accounting Unrestritted funds can be used in accordance with the charitable objettives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes wtthin the objects of the th8rity. Restrlctlons 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 8rant. This grant was awarded to pay for building refurbishment and other fixed assets purchased. Expenditure has been capitalised and the grant has been amortised over the life of the respertive assets. Endowment Funds The Wirral pcr endowment fund is a grant expressly for the purpose of purchasing and refurbishing the property known as 88-90 Argyle Street, In attordance with the grant agreement, these grants will be credited to the endowment fund and likewise restritted to the purpose of the development, of the property. Further explanation of the nature and purpose of each fund is included in the note5 to the financial statements. Penslon costs and other post-retirement benefits The charity operates a defined benefits pension scheme. The scheme is a multi employer scheme and the details are shown in note 14. Leaslng commitments Rentals paid under operating leases are charged to the Statement of Yinancial Activities on a straight line bas15 over the period of the lease. INVESTMENT INCOME 2025 2024 Rents received Deposit account interest 61,666 2,838 59,385 15,689 64,504 75,074 Page 11 continued...
ARCH INITIATIVES Notes to the Flnanclal Statements- continued for the Year Ended 31 March 2025 CHARITABLE ACTIVITIES COSTS Support costs (see note 41 Direct Costs Totals Charitable activities 13 30,985 30,998 SUPPORT COSTS Governance costs Management Finance Totals Charitable activities 12,438 11,747 6,800 30,985 Support Costs, included in the above, are as follow5., 2025 Charitable activities 2024 Total activltles Audit & accountaney fees Legal & professional fees Management charges Penslon deficit Bank charges AudStors' remuneration 2,000 438 10.000 11,747 1,262 8,258 10,000 21,360 6,800 4,000 30,985 44,888 NET INCOME/IEXPENDITUREI Net incomellexpendlturel is stated after chargin811creditingl: 2025 2024 Audltors, remuneratlon 6,800 4,OCKJ TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, rernuneratlon or other benefit5 for the year ended 31 March 2025 nor For the year ended 31 March 2024. Trustees. èxpenses There were no tnjstees, expense5 paid for the ye3r ended 31 March 2025 nor for the year ended 31 March 2024. Page 12 continued...
ARCH INITIATIVES Notes to the Financial St3temÈnts- continued forthe Yèar Ended 31 March 2025 srAFF COSTS There are no stsff employed as the charity is administrated by Kaleidoscope Project. TANGIBLE FIXED A55ETS Fixtures and fittings COST At l April 2024 and 31 March 2025 284,764 DEPRECIATION At l April 2024 and 31 March 2025 284,764 NET BOOKVALUE At 31 March 2025 At 31 March 2024 INVESTMENT PROPERTY FAIR VALUE At IApril 2024 and 31 March 2025 535.000 NET BOOK VALUE At 31 March 2025 535,000 At 31 March 2024 535,000 An independent valuation of the investment property was undertaken post year end on 19 September 2024. The trustees conslder this to be an accurate reftection of fair value 8t 31 March 2025, Page 13 continued...
ARCH INITIATIVES Notes to the Flnancial Statements- contlnued for the Year Ended 31 Marth 2025 io. CREDITORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 2025 2024 Trade creditors Accruals and deferred income 10,000 19,615 18,415 18,415 29,615 ii. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2025 2024 Amount5 owed to group undertakings 364,076 350.822 12. PROV1510NS FOR LIABILITIES A provision of £42,LK)O 15 belng carried for the amount due on the Charity's defined benefit pension scheme. The detsils of the scheme are disclosed In note 14. At the end of 5 April 2023 the actuarial valuation indicated that the scheme wa5 In an asset 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 position 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 provision held is a more accurate reflectlon of the Charity's position than the £201,000 asseL 13. MOVEMENT IN FUNDS Net movement in funds Transfers between funds At 31.3.25 At 1.4.24 Unrestrlcted fund5 General fund 272,045 33,506 7,750 313,301 Endowment funds Wirral pcr 77,5t]O 17,7501 69,750 TOTAL FUNDS 349,545 33,506 383.051 Net movement in funds, included in the above are as follows: Incoming resources Resource5 expended Movement in funds Unrestricted funds General fund 64,504 130,9981 33,506 TOTAL FUNDS 64,504 130,9981 33,506 Page 14 continued...
ARCH INITIATIVES Notes to the Financial Statements- continued for the Year Ended 31 March 2025 13. MOVEME IN FUNDS- continued Comparatives for movement in funds Net movement in funds Transfers between funds At 3L3.24 At 1.4.23 Unrestrirted 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 Comparatlve net movement in funds, included in the above are as follows". Incoming resources Resources expended Gains and losses Movement in funds Unrestrlcted funds General fund 75,074 142.3791 16,9261 25,769 TOTAL FUNI)S 75,074 142,3791 16,9261 25,769 Unrestricted funds The unrestricted funds comprise those funds which the trustees are free to use in accordance with the haritable obJective5. Endowment funds The Wirral pcr endowment fund is a grant expressly for the purpose of purchasing 3nd refurbishing the property known as 88-90 Argyle Street. In accordance with the grant agreement these grants will be credited to the endowment fund and likewise restricted to the purpose of the development of the property. EMPLOYEE BENEFIT OBUGATIONS 14. Arth Initiatives participates in the Mercer DB Master Trust Ithe schemel fornierly known as The Federation Plan. The scheme is a multi-employer defined benefit scheme. We are now reportin8 the results of the 2023 actuarial valuation. Scheme Membership Membership of the scherne is made up of 6 deferred pensioners and 2 retired pensioners, there are no active pensioners. The data attributable by type of member is as follow5: Member Deferred members Description Total deferred pensions revalued to valuation date- 1£ p.a,) Average age weighted 5 April 2023 5,845 5 April 2020 6,808 Deferred members 47 Page 15 continued...
ARCH INITIATIVES Notes to the Flnancial Statements- contlnued for the Year Ended 31 March 2025 14. EMPLOYEE BENEFIT 08LIGATIONS- eontinued Pensioners Pensioners Total pensions payable l£p.a.I Average age weighted by pension 2,484 71 2,103 68 The breakdown of the liability is set out below.. 2023 Valuatlon £'OOOs 419 1421 11761 201 192% 2020 Valuation £'0005 234 1541 13321 1152) 61% Descrlption Assets Liabilities- Pensioners abilities- Deferred members Overall p051tlon Funding Level Assets Summary Revised Investment strategy after 5 Aprll 2023 % 30 5 Aprll 2023Allocatlon £'ooo 414 5 April 2023 Allocation 0/0 99 Pooled Investments Vehlc5es Bank Tailored Credlt UK Inflatlon Unked Glfts SterlinE Inflatlon Linked LDI Total 20 40 io loo 419 loo Analysls of Experlence Since Last Valuation £'ooo 1152) 121 58 183 128 1401 28 121 201 Shortfall on 5 Aprll 2023 Interest Contributions less expenses Changes In market conditions (liability impact) Excess investment returns Inflation experlence Impact of changes to statement of fundlng principles Miscellaneous Surplus on 2023 assumptlons Expected 2023 shortfall Estimated shortf311 at 2023 on 2020 a$5umptions 1961 175 Changes Slnce the Valuatlon Date The return on the pension assets In the period l April 2023 to 31 August 2023 was estimated at- 4%. This does not take Into account any contributions received or benefits paid out since the valuation date. Had the conditions at 31 August 2023 applied Bt the valuation date, it is estimated that the technical provision would have been 151. lower than the value in this report. Taken together the change in finantial conditions would have led to an improvement in the overall funding position. Page 16 continued...
ARCH INITIATIVES Notes to the Financial Statements- continued forthe Year Ended 31 March 2025 14. EMPLOYEE BENEFIT OBLIGATIONS- continued FSnancial Assumptions- Main Financlal assumptions for Technical provisions 2023 Valuation 2020 Valuation Gilt curve +1.4Yo p.a. Gilt curve +1.5% p. Gilt curve +0.5°A p.a. Gilt cuNe 40.5% p. Inflation cutve Inflation curve RPI-0.75% until 2030 RPI from that RPI-0.75% p.a.until 2030 RPI from that year In line with RPI assumptions year In line with CPI assumptions In line RPI assumptions In line with CPI assumptions Gilt curve +0.50A p.a. Gilt cunje +2.0% p.a. 3.65%p.a. 0.69%p.a. 3.35% p.a. 2.71% p.3. Pre retlrement discount rate Post retirement discount rate RPI Inflation CPI Inflation RPI pension increase5 CPI pension increases Reeovery plan return Average Gilt Yield curve Average inflatlon curve Demographic a55umptions- for Technical provrsions 2023 Valuation 115% of S3PxA CMI 202211.5%, S Corel 2020 Valuation 1150A of S3PxA CMI 201911.5%,5-7.51 Mortality- base table Mortality~ future improvements CPI inflation RPI .75% until 2030 RPI from that RPI 4).750A until 2030 RPI from that year year 90% married for both males and 90% married for both males and females females AEI members assumed to retire at AJI 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 retire at assumed to retire at the valuation date. the valuation date. No cash commutation where benefit fomiula includes cash. Where the benefit formula does not include cash, members are assumed to take 50% of their maximum cash entitlement, based on the current cash commutation factor. SA of 3180ths using current commutation factors for members withoutcash on top. No allowance (funded by separatol contributions by the employer. Proportions married Age of retirement Commutation 50% of 3180ths using current commutation factors for members without cash on top Expense5 No allowance Ifunded by separatel contributions by the employer. Other Assumptions Assumed rate during inter valuation period p.a. 15.73% Assumed rate at last valuation p. 0.63% Investment returns- assumed for the purpose of the 2020 recovery plan Revaluation up to retirement Page 17 continued...
ARCH INITIATIVES Notes to the Financial Statement5- continued for the Year Ended 31 March 2025 14. EMPLOYEE BENEFIT OBLIGATIONS- continued in line with RPI in line wlth CPI Pension Increases in payment In line with RPI in line with CPI 2,570A 1.82% 6.09% 4.49% 2,57% 1.82% 6.09% 4.49% Global Pandemics and Climate Change For the 2023 valu3tion the potential impacts of global pandemics and climate change have been considered. These Included the following cllmate change shock scenarios.. Potentlal Impact12023 and) 2020 valuation -0.5%p,a. +0.5%p.a. -0.25 years -15% -7.5% 0,2%p.a. UK long dated interest date Inflatlon UK life expect8ncy-0.25 years Equity market re-pricing Diversified growth fund re-prieing-7.5% Investment grade credit spread widenlng Impact on hi8h yield debt Technlc?I Provislons Sensitivity % Change in Liabilltv +2.3% +3.2% +5.5% +2.8% +le5S than 0.1% Pre retirement discount rate reduced by 0.25%p.a. at each term +2.3% Post retirement dlscount rate reduced by 0.25% p.a. at each term Inflation assumption increased by 0.25% p.a. at each term +5.5% Members oneyearyounger Cash commutation assumption increased by 10% Summary of Benefits Main beneflts of the two underlying schemes: NHSPS Scheme 60th Birthdav 1180th of final pay for each complete year of service Up to 3 tlmes the members penslon LGPSScheme 65th Birthday 1160th of final pay for each omplete year of service Part of pension can be exchanged for a cash free sum In line with cpi From age 55 to 60 Normal retirement date Normal retirement pension Norm31 retlrement cash Increase to pension Eèrly 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 year5 of On death within 10 years of Commencement of pension commencement of penslon One half of members pension 37.5Yo of members pension dependant's penslon Page 18 continued...
ARCH INITIATIVES Notes to the Financial Statements- continued for the Year Ended 31 March 2025 ULTIMATE PARENT COMPANY The charity's parent company 3t the balance Sheet date was Kaleid05cope Projett (company number 05480423, charity number 11150171, a charitable company Incorporated in the UK.The p3rent's principal activities include the provision of holistic care and support services to those suffering due to poverty. age, infirmity, substsnce buse or physical and mental hardship or dlstress. Copies of group accounts are available from either Companies House or from the registered office at Resolven House, St Mellons Business Park. Fortran Road, St Mellons, Cardiff CF3 OEY. The ultimate controlling party are the tnjSte of the parent company Kaleidoscope Project. CONTINGENT LIABILITIES 16. 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 properties is the purchase and refurbishment costs of a building on Argyle Street, Birkenhead. A grant of £500,000 was received from the Wirral Primzry Care Trust Iwpcn towards these costs. WPCT hold a legal tharge over the property dated 31 Marth 2009. the terms of whith are that should the property be sold within 20 years a set percentage of the sales proceeds will revert back to Wp. The percentage remittsble is tapered down to 0% over 20 years. As at 31 March 202S the amount repayable would be.. £69,750 {2024- £77,500) 17. RELATED PARTY DISCLOSURES The charitable cornpany has tsken advantage of exemption, under the terms of Financial Reporting Standard 102 The FinancÉal Reporting Standard applicable in the UK and Republlc of Ireland,, not to disclose related party transactions with wholly owned subsidiaries within the group. Page 19