2021-03-31-accounts

Charity Registration No. 1066891

Company Registration No. 03462477 (England and Wales)

LORICA TRUST LIMITED

(LIMITED BY GUARANTEE)

TRUSTEES' REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

(LIMITED BY GUARANTEE)

LORICA TRUST LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	R Hobson (Chairman)
	N Dungay
	C Haywood
	J Hindson
	H Sayers
	A Sharpe
Company Secretary	N Dungay
Charity number	1066891
Company number	03462477
Registered office and principal address	East Clayton Farm, Storrington Road, Washington,
	Pulborough, West Sussex, RH20 4AG
Independent Examiners	TC Group, The Courtyard, Shoreham Road,
	Upper Beeding, Steyning, West Sussex, BN44 3TN
Bankers	CAF Bank, 25 Kings Hill Avenue, Kings Hill, West Malling,
	Kent, MW19 4TA
	Barclays Bank plc, 139-141 North Street, Brighton, East
	Sussex, BN1 1SF
	Kent Reliance Building Society, 76 High Street,
	Littlehampton, BN17 5DX
	Shawbrook Bank, Lutea House, Warley Business Park,
	Brentwood, Essex, CM13, 3BE
Solicitors	Irwin Mitchell, Thomas Eggar House, Friary Lane,
	Chichester, West Sussex, PO19 1UF
	H3 Solicitors, 1 Oak Place, Rosier Business Park
	Coneyhurst Road, Billingshurst, West Sussex, RH14 9DE

LORICA TRUST LIMITED (LIMITED BY GUARANTEE)

CONTENTS

	Page
Trustees' report	1 – 5
Independent examiners' report	6
Statement of financial activities	7
Balance sheet	8
Cashflow statement	9
Notes to the accounts	10 - 17

LORICA TRUST LIMITED (LIMITED BY GUARANTEE)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The trustees (who are also directors of the Charity for the purposes of the Companies Act) are pleased to present their annual director’s report together with the financial statements of the charity for the year to 31 March 2021 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities; Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Structure, Governance and Management

Governing Document

Lorica Trust Limited is a Company Limited by Guarantee governed by its Memorandum and Articles of Association dated 7 November 1997 and amended to allow for current governance arrangements by special resolution on 7 November 1997, 27 June 2003 and 26 September 2003. It is registered as a charity with the Charity Commission. Anyone over the age of 18 can become a member of the Company, each of whom agree to contribute £10 in the event of the charity winding up.

Appointment of Trustees

Trustees are recruited to fulfil identified strategic needs in the organisation and the profile of the organisation’s areas of interest and operation are reflected in the core competencies of individuals represented on the Board of Trustees. Trustees are nominated by the members and appointed by the trustees.

At the Annual General Meeting one-third of the trustees are subject to retirement by rotation or, if their number is not three or a multiple of three, the number nearest to one third shall retire from office.

Membership of the Board of Trustees is reviewed as part of the cyclical strategic planning process.

Trustee Induction and Training

New trustees undergo an orientation process to brief them on their legal obligations under charity and company law, the content of the Memorandum and Article of Association, the committee and decision making process, the business plan and recent financial performance of the charity. During the induction process they meet key employees and other trustees. Trustees are encouraged to attend external training events where these will facilitate the undertaking of their role.

Organisation

The Board of Trustees, the number of which shall be not less than three but shall not be subject to any maximum, administers the charity. The Board meet on average five times a year.

Directors, Trustees, Senior Officers

The directors of the charitable company (the charity) are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees.

The trustees serving during the year and since the year end were as follows:

Elected Trustees Mr Robin Q G Hobson – Chairman Mr Nicholas A Dungay (Appointed 21/01/2021) Mr Charles Haywood Mrs Juliet J Hindson Mr Howard L Sayers Mr Andrew W Sharpe

1

LORICA TRUST LIMITED (LIMITED BY GUARANTEE)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Related Parties

None of our trustees receive remuneration. During the year, MacConvilles Ltd (Charles Haywood is a Director of) provided professional services to the charity costing £2,080 (2020: £480). The amount owed to MacConvilles Ltd at the year end was £nil (2020: £480).

Risk Management

Lorica works with a model of enterprise-wide risk management; all business activities incur risk, Lorica is no different. Risk is central to the concept of enterprise and thus all businesses have, to a greater or lesser extent, developed methods to anticipate and manage it. Lorica has an established risk matrix, consolidating risk reporting with common definition and measures, thereby reducing the chances of omissions, duplications and inappropriate allocation of scarce resources. This in turn has enabled the executive and management to focus on the most significant issues. This critical information is shared throughout the organisation, reducing unwelcome surprises and making business success more likely, both operationally and strategically.

Objectives and Activities

Background

The Lorica Trust was established when our Founder Father Alan Sharpe let two people, homeless and hungry, spend the night in the church in the winter of 1985; within months, St Patrick’s was providing shelter for over 30 people a night.

Since its foundation in 1985, the work of the Trust has expanded to support wider groups within the community touched by social exclusion. The Trust now focuses its resources at East Clayton Farm – this is a farm established by the charity which provides accommodation for people and families affected by disabilities and homelessness as well as land based training opportunities.

As the work of the Trust expanded beyond the work with the homeless at St Patrick’s Church in Hove, the Trustees changed the original name of the St Patrick’s Trust to Lorica Trust Limited – meaning ‘breastplate’. This is a more generic name for the Trust, reflecting the increased breadth of our work.

Our Vision

To inspire, restore, educate and refresh.

Mission

To achieve our charitable objectives with creativity and innovation embracing strong Christian values.

Our Objects

• To provide and promote the provision of accommodation, shelter and housing.

• To provide any ancillary facilities; food, clothing, physical, mental, educational, and spiritual care and support.

• To provide for people who through age, physical or mental illness, youth, alcohol or drug addiction or dependency, and/or poverty are unable to make adequate provision for themselves.

• To provide and encourage the provision of facilities for medical rehabilitation and treatment, spiritual help, guidance and education and training.

Public benefit

In determining our objectives for the year and planning our activities the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit-running a charity (PB2)’.

2

LORICA TRUST LIMITED (LIMITED BY GUARANTEE)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Board has had regard to the two key principles regarding public benefit in making decisions as to the services provided as detailed in this report. There has been a clearly identifiable benefit which is related to the charity's objects and these have been balanced against any detriment or harm.

The beneficiaries have been appropriate to the aims and the benefit has not been restricted by geographical, pecuniary restrictions or poverty and any private benefits have been incidental.

Achievements and Performance 2020/21

At East Clayton Farm our focus over the past year has been to enhance the range of farm-based opportunities we could provide - this has focussed on the need to provide Learning and Development opportunities for both residents and visiting groups.

There are 4 main areas in which we are involved:

• The biggest area of expansion continues to be with children at risk of exclusion from school and it is very encouraging how the provision at the farm has helped benefit this particular group. To underpin our provision we are a registered Learning and Development Centre with ABC Awards in order to offer Entry Level, Level 1 and Level 2 land-based qualifications. Coronavirus has affected our school provision but during this period we have been able to assist with an increasing level of one-to one visits for other children. We are delighted to report that since the year end we have been successful in a tender for West Sussex County Council as providers of Alternative Provision.

• Coronavirus has affected opportunities to explore rural provision for those living with dementia. We consider that there will be more opportunities now the new learning and development centre is complete allowing all weather access. We have partnered with other local charities to consider social prescription and an innovative approach to this growing area of need although the current pandemic has impacted on any implementation.

• We are working with Turning Tides (previously Worthing Churches Homeless Project) to expand our work with residents and non residents recovering from homelessness. Unfortunately, development of this area has also been impacted by the pandemic.

• Our work with disabled young adults has been ongoing with increased visits from residents to utilise the facilities of the farm during periods of lockdown.

The increased number of daily visits to undertake farm activities has only been possible because of the new community/training room with washing and disabled access toilet facilities for farm visitors.

We are delighted to report that the Learning and Development Centre was completed during the year; the timescale was only slightly delayed by Coronavirus and not as much as might have been anticipated. We are very thankful and amazingly grateful for the support we have had from many funders which has allowed us to undertake this project. The new facilities are now being used daily and we were delighted to welcome some of the funders to see it in action recently. We are very excited about the new possibilities for enhancing our provision to the various groups who visit and live at the farm and the building is fulfilling our expectations.

In the course of the year we are normally able to speak to various groups outlining the work of East Clayton Farm and take our donkeys to help raise funds for the homeless. Unfortunately the Coronavirus situation meant that we were unable to undertake these external activities in 2020/2021. We are hopeful that we will be able to restart these outreach activities in 2022.

The year has been uniquely challenging with a major building project being undertaken during a national pandemic; our CEO has performed sterling work in ensuring that this has been possible and we have been very appreciative of our staff and volunteer team who have helped with the increased workload over this period.

3

LORICA TRUST LIMITED (LIMITED BY GUARANTEE)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Our volunteers have been essential in all aspects of farm operation, assisting in estate and livestock management as well as working with visiting groups- the volunteer input has been particularly valuable over the period of coronavirus lockdown in continuing to care for the welfare of our livestock. Financial Review

The Trust's total income has increased from £496,191 in 2020 to £522,099 in 2021. This reflects the increase in schools provision but for the most part is a result of the very generous grants we received for the construction of the new building and other purposes. This increase in income has been accompanied by an increase in expenditure from £235,190 in 2020 to £247,479 in 2021. This increase in expenditure reflects the costs incurred in developing the Learning and Development centre and the additional resources required for the increased provision for children at risk of exclusion from school.

The overall financial effect of the changes made in the year 2021 has been to record a surplus of £274,620 compared with £261,001 in 2020.

The Trust’s tangible fixed assets have increased from £1,738,301 in 2020 to £1,996,051 in 2021, reflecting the construction of the new building; the Trust's net assets have also increased from £2,081,152 in 2020 to £2,355,772 in 2021. Overall this has been a year of continuing consolidation with increased income and the benefit of very generous grants and gifts which have helped the charity to invest in buildings and strengthen its reserves. We are very grateful for the input made by many volunteers over the year and the number of people and the scope of their involvement continues to develop and grow.

The Trust's level of restricted reserves is £632,437 carried forward into 2021/22. Details of these funds are set out in Note 12 of the accounts.

The financial consolidation made in the year continues to help strengthen the charity structure to enable the continuing provision and development of existing and new services to those it was set up to help.

Over the coming year the aim is to use the new facilities at East Clayton Farm to widen the number of people who can benefit from the farm. The mission of Lorica has been to achieve its charitable objectives with creativity and innovation embracing strong Christian values: the changes made between 2020/21 continue this journey which started in the winter of 1985.

Financial Policies

Investment Powers and Policy

Under the Memorandum and Articles of Association, the charity has the power to invest in any way the trustees decide.

The trustees, having regard to the liquidity requirements of operational activities and to the reserves policy have operated a policy of keeping funds in an interest bearing deposit account and seek to achieve a rate of deposit which matches or exceeds inflation as measured by the retail price index. Due to wider economic circumstances deposit rates have been depressed and so this aim was not achieved in the year.

Reserves Policy

The trustees have established the level of reserves (that is those funds that are freely available) that the charity ought to have. Reserves are needed to bridge the funding gaps between spending on production and events and receiving resources through grants that provide funding. Reserves are also held to cover possible emergency repairs and other unexpected costs. The trustees have examined the charity’s requirements for reserves in the light of the main risks to the organisation. It has established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should be between three and six months of future expenditure. Therefore, the trustees consider that the ideal level of free reserves should be between £45k and £90k and action will continue to be taken to improve reserves over the next year as the charity increases its activities. Free reserves stood at £281,190 at the 2021 balance sheet date, which includes £200,000 set aside for Bradbury Court costs (2020: £207,892 which included £150,000 set aside for Bradbury Court costs).

4

LORICA TRUST LIMITED (LIMITED BY GUARANTEE)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Coronavirus

In March 2020 the charity took steps (in line with government advice) to help contain the outbreak of COVID-19.This included the temporary suspension of all volunteer and school visits and the charity had to curtail, or change, how it operates; particular safeguarding measures have been instituted for vulnerable residents. Farm activities have continued with animal welfare a priority. The trustees continue to monitor income and expenditure and, if it becomes necessary, will take measures to mitigate the impact of COVID-19 on the charity’s free reserves. The major item of expenditure during the year was the building project. Building work proceeded over lockdown, although at a slower pace than originally anticipated-grant funding had been secured beforehand and we are delighted to report that the funders were all able to fulfil the sums agreed.

The trustees considered budgets, projections, cash flow statements and balance sheet at their meeting to approve the annual accounts and consider that the charity is able to continue as a going concern for a period of no less than 12 months from the date the accounts are approved and that no Post Balance Sheet Adjustments are required.

Trustees’ responsibilities in relation to the financial statements

The trustees, who are also the directors of Lorica Trust Limited for the purposes of company law, are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

• Select suitable accounting policies and then apply them consistently;

• Observe the methods and principles in the Charites SORP;

• Make judgments and estimates that are reasonable and prudent;

• State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Company Act 2006. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the board on: 11 December 2021

Signed on behalf of the board

…………………………………….. Robin Hobson – Chairman

5

LORICA TRUST LIMITED

(LIMITED BY GUARANTEE)

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF LORICA TRUST LIMITED

I report to the charity trustees on my examination of the accounts of the Charitable Company for the year ended 31 March 2021.

Responsibilities and basis of report

As the charity’s trustees of the Charitable Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Charitable Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

Since the charitable company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1. accounting records were not kept in respect of the Charitable Company as required by section 386 of the 2006 Act; or

2. the accounts do not accord with those records; or

3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or

4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Mr Mark Cummins FCCA FCIE for and on behalf of

TC Group

The Courtyard Shoreham Road Upper Beeding Steyning West Sussex BN44 3TN

Dated: 16 December 2021.

6

LORICA TRUST LIMITED

(LIMITED BY GUARANTEE)

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

		Unrestricted	Designated	Restricted	Total	Total
	Notes	funds	funds	funds	2021	2020
Income from:		£	£	£	£	£
Donations and legacies		10,062	-	-	10,062	26,926
Charitable activities
East Clayton Farm		219,684	-	287,924	507,608	466,338
Housing rental		3,800	-	-	3,800	1,800
Investment income – interest	received	629	-	-	629	1,127
		────────	────────	────────	───────	────────
Total income		234,175	-	287,924	522,099	496,191
		────────	────────	────────	───────	────────
Expenditure on:	7
Charitable activities		155,380	-	92,099	247,479	235,190
		────────	────────	───────	───────	────────
Total expenditure		155,380	-	92,099	247,479	235,190
		────────	────────	────────	───────	────────
Net income		78,795	-	195,825	274,620	261,001
Transfers between funds	13	202,253	50,000	(252,253)	-	-
					───────
		────────	────────	────────		────────
Net movement in funds		281,048	50,000	(58,428)	274,620	261,001
Reconciliation of funds
Total funds brought forward	14	1,242,287	150,000	688,865	2,081,152	1,820,151
		────────	────────	────────	───────	────────
Total funds carried forward	12/13/14	1,523,335	200,000	632,437	2,355,772	2,081,152
		════════	════════	════════	═══════	════════

The Statement of Financial Activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. All activities are classed as continuing.

There are no recognised gains or losses other than those reported on the Statement of Financial Activities.

7

LORICA TRUST LIMITED

(LIMITED BY GUARANTEE)

BALANCE SHEET

AS AT 31 MARCH 2021

			2021		2020
	Notes	£	£	£	£
Fixed assets
Tangible assets	9		1,996,051		1,738,301
Current assets
Debtors	10	36,894		63,904
Cash at bank and in hand		359,451		381,311
		────────		────────
		396,345		445,215
Creditors: amounts falling due
within one year	11	(36,624)		(102,364)
		────────		────────
Net current assets			359,721		342,851
			────────		────────
Total assets less current liabilities			2,355,772		2,081,152
			────────		────────
Net assets			2,355,772		2,081,152
			════════		════════
The funds of the charity
Restricted funds	12		632,437		688,865
Designated funds	13		200,000		150,000
Unrestricted funds	14		1,523,335		1,242,287
			────────		────────
			2,355,772		2,081,152
			════════		════════

For the financial year in question the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies. No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006. The directors acknowledge their responsibility for complying with the Act with respect to accounting records and for the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and constitute the annual financial statements required by the Companies Act 2006 and are for circulation to members of the company.

The accounts were approved by the Board on 11 December 2021

...................................................

R Hobson - Trustee (Chairman)

Company Registration No. 03462477

8

LORICA TRUST LIMITED

(LIMITED BY GUARANTEE)

CASHFLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2021

Note Cash flows from operating activities 16 Cash flows from investing activities Payments to acquire tangible fixed assets 9 Investment income Net cash used in investing activities Increase/(decrease) in cash Cash and cash equivalents at start of year Cash and cash equivalents at end of year	(288,884) 629	2021 £ 266,395 (288,255) (21,860) 381,311 359,451	(148,187) 1,127	2020 £ 306,189 (147,060)
				159,129
				222,182
				381,311

All cash is cash at bank and in hand.

9

LORICA TRUST LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Legal status of charitable company

Lorica Trust is a charitable company, limited by guarantee, registered in England and Wales. The charitable company’s registered number and registered office address can be found in the trustees’ report.

In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

2 Accounting policies

2.1 Basis of preparation

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102)), and the Companies Act 2006.

Lorica Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). There are no material uncertainties about Lorica Trust’s ability to continue as a going concern.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest pound.

2.2 Income

Donations and other forms of voluntary income are recognised as incoming resources when receivable, except insofar as they are incapable of financial measurement.

Charitable activities - represent income from rent and are recognised when receivable.

Investment income is accounted for when receivable.

2.3 Expenditure

Expenditure is accounted for on an accruals basis with the irrecoverable element of VAT included with the item of expense to which it relates.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include independent examination fees and costs linked to the strategic management of the charity. These are included as support costs.

All costs are allocated between expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned based on estimated usage as a proportion of directly attributable expenditure.

10

LORICA TRUST LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

2.4 Tangible fixed assets and depreciation

Tangible fixed assets are capitalised at cost and depreciated over their estimated useful economic life on a straight line basis as follows:

Motor vehicles 25% Plant & Machinery 25% Computer equipment 33% Leasehold improvements over the remainder of the lease

Items costing £2,000 and above are considered for capitalisation.

2.5 Fund accounting

Funds held by the charity are either:

Unrestricted general funds – these are funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds – these are unrestricted funds set aside by trustees for a specific purpose

Restricted funds – these are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

2.6 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments. The trustees seek to use short term deposits to maximise the return on monies held at the bank and to manage cash flow.

2.7 Creditors and provisions

Creditors and provisions are recognised where the charity has present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

2.8 Estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The trustees do not consider that there are any critical estimates or areas of judgement that need to be brought to the attention of the readers of the financial statements.

3 Trustee remuneration

All trustees donate their time spent running the charity on a voluntary basis and do not receive any remuneration for their work.

11

LORICA TRUST LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

4 Taxation

The charitable company is registered as a charity and all of its income falls within the exemptions under Part 11 of the Corporation Tax Act 2010.

5 Net income/(expenditure) for the year

This is stated after charging:

Depreciation Independent Examination fees

2021	2020
£	£
31,134	20,764
2,130	1,980
════════	═══════

6 Comparative Funds – Statement of Financial Activities for the Year Ended 31 March 2020

	Unrestricted	Designated	Restricted	Total
	funds	funds	funds	2020
	£	£	£	£
Income from:
Donations and legacies	26,926	-	-	26,926
Charitable activities
East Clayton Farm	204,272	7,900	254,166	466,338
Housing rental	1,800	-	-	1,800
Investment income – Interest received	1,127	-	-	1,127
	────────	────────	────────	────────
Total income	234,125	7,900	254,166	496,191
	────────	────────	────────	────────
Expenditure on:
Charitable activities	194,084	7,900	33,206	235,190
	────────	────────	────────	────────
Total expenditure	194,084	7,900	33,206	235,190
	────────	────────	────────	────────
Net income	40,041	-	220,960	261,001
	────────	────────	────────	────────
Transfers between funds	113,350	30,000	(143,350)	-
	────────	────────	────────	────────
Net movement in funds	153,391	30,000	77,610	261,001
	────────	────────	────────	────────
Reconciliation of funds
Total funds brought forward	1,088,896	120,000	611,255	1,820,151
	────────	────────	────────	────────
Total funds carried forward	1,242,287	150,000	688,865	2,081,152
	════════	════════	════════	════════

12

LORICA TRUST LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

7 Expenditure

	Staff	Depreciation	Other	Total	Total
	costs		costs	2021	2020
	£	£	£	£	£
Charitable activities
Farm Project	16,716	27,155	154,275	198,146	182,536
Rural Apprenticeship	-	3,979	43,224	47,203	50,674
Support costs	-	-	2,130	2,130	1,980
	────────	────────	────────	────────	────────
Total expenditure	16,716	31,134	199,629	247,479	235,190
	════════	════════	════════	════════	════════
Support costs comprise independent examiners fees		of £2,130 (2020:	£1,980).
Staff costs
The aggregate payroll costs for	the year were as follows:			2021	2020
				£	£
Wages and salaries				16,800	19,371
Social security costs				-	2,095
Pension costs				(84)	112
				────────	────────
				16,716	21,578
				════════	════════

8 Staff costs

No staff earnt in excess of £60,000.

None of the Trustees received any remuneration from the charity. None of the trustees receive remuneration. During the year, MacConvilles Ltd (Charles Haywood is a Director of) provided professional services to the charity costing £2,080 (2020: £480). The amount owed to MacConvilles Ltd at the year end was £nil (2020: £480).

There was 1 employee in the year to 31 March 2021 (2020: 2).

13

(LIMITED BY GUARANTEE)

LORICA TRUST LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

9	Tangible fixed assets
		Plant &	Leasehold	Motor	Total
		Equipment	Improvements	vehicles
		£	£	£	£
	Cost
	At 1 April 2020	68,734	1,902,745	6,000	1,977,479
	Addition	7,795	266,089	15,000	288,884
		───────	───────	───────	───────
	As at 31 March 2021	76,529	2,168,834	21,000	2,266,363
		───────	───────	───────	───────
	Depreciation
	At 1 April 2020	64,977	168,201	6,000	239,178
	Charge for the year	4,494	22,890	3,750	31,134
		───────	───────	───────	───────
	At 31 March 2021	69,471	191,091	9,750	31,132
		───────	───────	───────	───────
	Net book value
	At 31 March 2021	7,058	1,977,743	11,250	1,996,051
		═══════	═══════	═══════	═══════
	At 31 March 2020	3,757	1,734,544	-	1,738,301
		═══════	═══════	═══════	═══════

A charge dated 20 October 2010 is held over the leasehold property by the Silver Lady Fund in relation to some funding received by the charity (see note 12).

14

LORICA TRUST LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

10	Debtors				2021	2020
					£	£
	Trade debtors				34,214	57,779
	Other debtors and prepayments				2,680	6,125
					───────	───────
					36,894	63,904
					═══════	═══════
11	Creditors: amounts falling due within one year				2021	2020
					£	£
	Trade creditors				25,992	91,424
	Accruals and other creditors				10,632	10,940
					───────	───────
					36,624	102,364
					═══════	═══════
12	Restricted funds
	The income funds of the charity include restricted		funds comprising the following unexpended			balances of
	donations and grants held on trust for specific purposes:
				Movement	in funds
		Balance	Incoming	Resources	Transfers	Balance at
		at 1 April	resources	expended	between	31 March
		2020			funds	2021
		£	£	£	£	£
	West Sussex County Council	160,000	-	-	-	160,000
	Silver Lady Fund	393,906	14,366	(14,366)	-	393,906
	East Clayton Farm Phase 2	50,349	-	-	-	50,349
	Provision for Training	7,000	-	(7,000)	-	-
	New Building Fund	2,450	249,803	-	(252,253)	-
	Salaries Fund	53,215	-	(36,680)	-	16,535
	Alternative Provision Fund	3,945	20,755	(18,450)	-	6,250
	The Improved Access Fund	18,000	-	(15,603)	-	2,397
	Sensory Garden Fund	-	3,000	-	-	3,000
		───────	───────	───────	───────	─────
		688,865	287,924	(92,099)	(252,253)	632,437
		═══════	═══════	═══════	═══════	══════

The West Sussex County Council (WSCC) fund represents costs spent on the shared ownership housing at East Clayton Farm. If the farm is closed within the following 16 years, WSCC would expect a pro rata return on the £160,000 adjusted for inflation.

15

(LIMITED BY GUARANTEE)

LORICA TRUST LIMITED

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

12 Restricted funds (continued)

The Silver Lady Fund represents costs spent on the RAS accommodation for the RAS project at East Clayton Farm. The income is restricted to the satisfactorily completion of the project and would potentially need to be repaid if either the project did not go ahead or was stopped at any time.

The East Clayton Farm Phase 2 fund relates to funds received toward various capital projects at East Clayton Farm.

The Provision for Training fund relates to amounts received towards training provided at East Clayton Farm.

The New Building Fund relates to grant funding received towards the construction of our new Learning and Development Centre. The transfer relates to the capitalised costs of the new build during the year.

The Salaries Fund relates to funds received to contribute towards the cost of the salaries from Edward Gosling Foundation, Peter Harris Foundation, Tudor Trust and Nineveh Trust.

The Alternative Provisions Fund is to the support the development and implementation of evaluation processes to better track impact and outcomes of Alternative Provision activities undertaken at East Clayton farm in relation to the young people we support and the effectiveness of what we do

The Improved Access Fund relates to the cost of a vehicle to transport donkeys supporting vulnerable young people and external community events.

The Sensory Garden Fund relates to donations received for the development of the growing space.

13 Designated funds

			Movement	in funds
	Balance	Incoming	Resources	Transfers	Balance at
	at 1 April	resources	expended	between	31 March
	2020			funds	2021
	£	£	£	£	£
Bradbury Court Costs	150,000	-	-	50,000	200,000
	───────	───────	───────	───────	─────
	150,000	-	-	50,000	200,000
	═══════	═══════	═══════	═══════	══════

The trustees have designated funds towards future costs associated towards Bradbury Court in line with their reserves policy. During the year a further £50,000 was transferred to this designated fund to ensure total designated fund is in line with their reserves policy.

16

LORICA TRUST LIMITED

(LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

14 Analysis of net assets between funds

	Designated	Unrestricted	Restricted
	funds	funds	funds	Total
	£	£	£	£
Fund balances at 31 March 2021	are represented	by:
Tangible fixed assets	-	1,442,145	553,906	1,996,051
Current assets	200,000	117,814	78,531	396,345
Creditors: amounts falling due	-	(36,624)	-	(36,624)
	───────	───────	───────	───────
	200,000	1,523,335	632,437	2,352,772
	═══════	═══════	═══════	═══════
	Designated	Unrestricted	Restricted	Total
	funds	funds	funds
	£	£	£	£
Fund balances at 31 March 2020	are represented	by:
Tangible fixed assets	-	1,184,395	553,906	1,738,301
Current assets	150,000	160,256	134,959	445,215
Creditors: amounts falling due	-	(102,364)	-	(102,364)
within one year
	───────	───────	───────	───────
	150,000	1,242,287	688,865	2,081,152
	═══════	═══════	═══════	═══════

15 Control

The charity is under the control of the Trustees.

16 Cashflow from operating activities

Cashflow from operating activities
	2021	2020
	£	£
Surplus for the year	274,620	261,001
Investment income	(629)	(1,127)
Depreciation	31,134	20,764
(Increase)/decrease in debtors	27,010	(54,649)
Increase/(decrease) in creditors	(65,740)	80,200
	───────	───────
	266,395	306,189
	═══════	═══════

17