Company registration numb. 3920430 Charity registration number. 1081148 Parchment Trust (A company limited by guarantee) Ann1 Report and Finan¢i81 Statements for the Year Ended 31 July 2024 Statutory Auditor 39 High Street Battle East Sussex Th133 OEE
Parchment Trust Contents Reference and Administrative Details Trustees, Report 2to8 Stalement of Tt¢t$' Responsibilities Independcnt Auditors, R¢port IOto13 Stat¢ment ofFiDancial Activitics 14to15 Balance Sheel 16 Ststement of Cash Flows 17 Notes to the Financial Statements 18to32
Parehment Trust Reference and Admlnlstratlve Detalls Trustee5 J A Hassell D M Walker K T Walker S Parsons R D While Secretary J A H&8sell Ch*rlty Rtglslrndon Number 1081148 Collyally Reglstrntlon Number 3920430 The charity is incoTP)Taied in England and Wale Ore Place Fam The Ridge Ilaslin8S E&81 Sus5eX TN34 2RA R¢gl$t¢red Offlee PrlnclpAI Offlce Ore Place F•rni The Ridge Flasiings Easl Suss¢x TN34 2RA Audltor Manningions Statuiory Auditor 39 Hi8h Street BaiilL TN33 OEE Solkltors: Heringions 37-39 Gildrcd8e Road E&sil)ourne BN214RX National Weslminsler Bank plc HJv¢lock Road Hastin8S Easi Suss TN34 IBE Bankers Page I
Parchment Trust Trustees, Report The trustees. who are directors for thc purposes of company law, present the annual report logether with the financial Sternents and auditors, report of the charitable company for the year ended 31 July 2024. Objectives and a¢ilvlti¢s Objects and aim.% Objects The objects of the charity are: . the relief of persons with physical, mental and leaming disabilities by the provision of occupational and day care activities. and all other activities that are conducive to the attainment of this objcct. to promote social inclusion for the public benefit by preventing people becoming socially excluded. minimising the effects of disabilily and impainnenls, whicb include isolation. povcrty and disadvantage in the workplace, relieving the nceds of those people who arc wially ex¢lud¢d and assisting them to integrate into society by: i) the provision of services directly to eligible individuals. either r¢sidential, in the Community or through supported employment Irdining programmes. ii) improving opportunities lo the local ¢ommunily* of which the above mentioned individuals are parL by crealing employtnent opportunities, recreational facilities and community centres and sUPrted busIneS which benefit the whole community socigl structure. Our Values: Act with love: We lead with kindness. compassion and respecL and inspire others to do the same. Be arnbi(ious: We support everyone to use their strengths and reach their potential with maximum indq)endence gnd autonomy. Never stop learning: We are curious experts, always looking for the best ways to make a difference to people's lives. Do it together: Wc work with our members, the community and cach other to drive betl¢r opportunities for disabled people. Share the joy. Our caring culture and sirong relationships bring a uniquc sensc ofjoy and wellbeing. Let's share ii. Our Purposc: Working togcther for better lives. Our Vision: We believe in a world Whe disabled people can flourish equally and experience their tTue potcntial. Our Mission: Our day servic¢5 create powerful opportunities and lastin8 change for disabled adults, throu8h cxpcrt supw)o Icarning and connection. Page 2
Parehment Trust Trustees, Report Aims and activities: Parchment TTht provi(ks individually tailort pcrson-centred servic¢s to adults with a wide rdnge of di5abilitics. These are delivered through four s¢rvice& with crossover between them as appropriate to individual needs: l. The c(Opet1ve for adults with learning disabilities 2. The Friary Gardeners horticuliurdl scherne for adults with a variety of disabilities 3. Dedicaled and Besp)kc scrviccs to adults with profound and multipl¢ disabililies 4. Supported Employmenl lo support any Parchrncnt Trusl rncmber who is interesled in geiiing a job We provide a rdnge of activilies. experienc¢s and learning oprK>rtunities for OUT membcrs. We support everyone lo set goals aftd focus on aspects which support them ¢0 have bctter lives. Parchment Trust was founded on Christian principles which have acted as ihe basis for the values within which we Work ioday. Howcver. we do not exclusively employ nor provide services in relation to any particular faiih. Our modern. inclusive valucs (d¢scribcd ¢arlier) are refleCd in everything we do. and we support all staff to uphold these valucs every day. Page 3
Parchment Trust Trnstees, Report Public benef The trustecs have given full colderatIon 10 the Charity Commi&8ion guidan¢¢ on public bcnefit and are confident Ihai their Core activiliLS fully meel this Tequiren)enL The tntsiees confirn) thal they have complied with the TequiTements of section 17 of the Charitie5 Act 2011 to have due regard to the public benefit 8uidan¢e published by the Charity Commission for England and Wales. Achievements and perfornMnce We remain the largest independent-Se¢T provider of day services to our ¢lient group in East Sussex. providing services to more than 185 people in any given week and employing around 130 stsff. Our largest area of demand continues to be provision of s¢rvice to profoundly and multiply disabled people. who often require 2.1 support. Member achievements Cover a vast breadth in line with their wnal goals sUprting independenc< autonomy. friendships and connectiOJLS both inside Parchmcni Trust and in th¢ widcr community. intiOnallY turning the dial on authentic inclusion. We continue to prepare our most independent memiws for paid employmeni a¢¢ording to their ambitions. Thts is in line with governmeni policy to signifiwily reduce th¢ gap between disabled and non-disabl¢d people in work. Since starting the supported employment service in 2021. we have placed 12 people in paid work, 33 in voluntsry placements aDd further work trials. Fmm 2025 plao lo broaden our focus on 'work' to engage member5 further from the labour market in work-based activity and skills developm¢ni to provide uful transferrablc skills for life and slimulate further interest in thc world of WOTk. Flnan¢lal revlew Our Continu careful and active finan¢ial management has resulted in the maintwwice of our healthy financial position. Average monthly tumver for the year 2023r24 was £311.365. up from £251.852 fmm thc previous year. This significant increase in averdge monthly turnover can be explained by a rise in fec rates from Adult Social Care and some additional higher rdtcd Services. Thi5 additional revenu¢ has been entirely used meet InUe in staff salaries. in respoTh8e ¢0 local market forces nd uplifts to the n81ional minimum wage. Reserves remained relativ¢ly COnsL1. Policy on reserves The board wntinues io have in mind the n¢ed to maintsin sufficient liquid reserves to ensure the smooth operaiion of the company and for some years bas PUT5ued the objective of Teacbing and maintsining liquidity of 6 weeks operational ttwnover. We are pleased to report that this has again been achicve(L Free rescrves as of 3 Isl July 2024 amounied 10 £833.424. This compares to £735,623185t year. Jnvaslmentpolicy andobjecliv¢s Trustees have discussed the value of ihe pr¢MIs Orc Place Farni and Wheth il is Kg0 high in the accounls now the residential order has been lifted. They took the decision to leave it at historical cosL Pagc 4
ParchmeDt Trust Trustees, Report Plans for future perlods Aims andkey objed1I0rf¥threPÉrlods Whilst our satisfaclory financial position is w¢lcom< we remain concerned at ihe outlook with Loc81 Authority and NHS budgets. under increasing fuwicial pr¢tywe and we continue to take a cautious view of the immediate fullfe. Despite this broader coniext. we continue to receive a signifant number of requests for new and additional services. We are aciively lookin8 at Wdy5 lo control ¢osts and kn gencrn altern1Ve income streanLS wbilsi e]Lsuring wc maintsin excellence within the servitts pmvidc(L In support of this havv. . Registered for VAT to ac}mle in¢re&sed den)and for sales through tradin& particularly through our Friary GtenerS plant nursery. Incr¢ased our foctss on bid writin& responding to the emphasis placed by commissiona5 on the Social Value element in the tendering process. We hope to gain additional funding from ncxt financial year to support a variety of dcvclopment and site renovalii)n projects. The legal isSL$ surrounding our acquisition of The Bridge Community Centre conlinued this financial year but finally resolved March 2024, ¥An we became the fvll legal owners. Upon acquisition of The Bridge we Completed a full condiiioll SUTVCY to gain a view of the immedie renovation works qUIred and made a 10 year plan for site maintenance. Parchmeni Trust have this ycar acquired a new site (The Bridge) valued at £525.(KIO which has been capitalised and is therefore shown within FTxed assets: Land and buildings on the Balance SheeL The Bridge was acquired for no considerdlion and thertfore is trrdted as a donated assct. However. it should be noted that the value of the asset may not be recoverable by Parchment Tru# due to the covenants for strict )Mmunity e attached to the 51te dee which would b¢ passed onio any future owner. Furtherniore, under the should Parchn)ent Trust ever wish to dispose of this assel they m1 first offer the site back to Easl Sussex County Council. A new 3 year strategy 'working together for better lives, was written in consultation with all key 5tak¢holders and approved April 2024. The focus for thc next three years is on outcomes. not gro. We inl¢nd strengthen our partncrships locally and work iogether io provide even better opportunities aThJ outcomes for our disabled members. Page 5
Parchment Trust Trustees, Report Golng concern The tswstees assess whether the use of going con¢ern is appropriate, i.e. whether there are any matrrial uncertainties related to events or condilions that may cast SilfiCant doubt on the ability of the Trust to conlinue as a going concem. Thc TTUStees make this assessrnent in rcspect of a period of at least one year from the da* of 8uthorisation for issue of the financial slalcmeftls and have concluded ihat the trust has adequate rcsourc to continue in operntional existence for the foresee8ble fuwre and there are no matrrial uncertaintics about the trust's ability to conlinue as a goin8 concern. They ¢ontinue lo adopt the goin8 concern basis ofa¢¢ounling in preparing the financial stslemcnts. Budget foffcasts Ere prepared prior lo the beginning of e8ch financial ycar. Figures Are prcpared on the basis of the accuracy of previous years. f0Casts. polenlial new business (and loss of business). uplift in fees from ¢ommissioners (if any) and projected sllary and pension contribution increases plus any &e¢d dcvelopment projeots. Trustees have taken the strniegic decision to change the finJn¢ial ye&r to start 1st April frorn 2025 (inslead of I st Au8USt), lo bring our financi&l year in line with that of our main commissioners. This will provide th¢ Trust wilh a clearer view of income all year round as annual incorne uplifts ar¢ usually published in February. In relation to this, and a surplus last year, Trustees have agreed a deficit budgct forecast this year of -£101,839 duc lo incom¢ phasing over just 8 months insiead of12 and a planned investment of £50.000 in The Brid8e, our newly a¢quir¢d 8lte. Thi$ deficii budget does nol eal inlo our agreed reserves. Truslees have alwuys taken 8 conservative attitude to the financial health of th¢ or8anisation. This is reflected in the fact that actual financial perfOrnnCe has r¢gularly exceeded forccast. Management accounts are publishd monthly and arc onalyscd by th¢ Chief Ex¢culivc and the FinNn¢¢ Manabyer. prior to distribution to all Irusiees. The Profit and Loss Account and Income and Expcndilure fi8ur¢s arc compared to th¢ budgei profile and any anomalies or unexpected differences arc Commcnted on and explained. Prior to every quarterly tjuslec me¢ling, the Finance Manager submits a report to the Inistees for considernlion and expre&ses an opinton as to the financial slale of lh¢ organisalion. The Chief Execuiive also makes a written rcport to every tnLslee5' meeting and includes financial highlights. These include surplus to date, account balances, provisional depreL'i4tion and accounts receivable. A close watch is kept ensuring that invoicin8 is done reuularly and prompily and that payment in responsc is also timely. Bad debt is closely monitored. Trustecs have also requested ihat the Chief Executive comrnents on pension contributions in her report. The tnte¢S and Chief Executive constantly review the economic climate, and policy from boih central and local government are discussed. Particular consid¢rdtion is givcn to thcse whcn the annual salary review tskes placc And Ihis review eoin¢ides with the publishin8 of local 8ov¢rnm¢nt spending plans for the coming financial year. Increases in demand for the Tot'S services have meant that finances have remained sound and reserve levels Are relatively constanf in relation lo turnover. We also account and plan for the year on ycar after incrca5cs in the National Minimum Wage and National Insurancc that have a significant impact on our budget. The organisation has a robust and thorough Risk Re8isier which is reviewed al least annually. Strategic, Operaiional, Compliance and Financial risks all included in th¢ register. Any aspects of high risk ar¢ tnonitored and reported with proportionate frequency to Trustee level. The organisation hys not been maierially affe¢td by Brexit. Nonc of the iTUSt'g business is conducted outside the UK and lo date it has noi recruited significant numbers of sthtr from the European Union. However, tbe UK faces huge financial unttrtainty as the rnte of inflation, cnergy costs and interest ratcs soar due to macro economic volatility, Caus at least in part by worldwide confiict. The senior leadership rontinues to monitor th¢ e¢onomic ¢limatc cloly. Page 6
Parchment Trust Trusteesl Report Structur4 governance and m#nagem¢nt Nalure ofgovérnlng documenl The Company was fornied in February 2000 as A Company. Limit¢d by Guarnntee and is a Registered Charity. At the time of forniation the Company look ovcr the activitie5 of an unregisteffd and unincorporatcd Ch8rilable Trust which had been operating since 1993. All activities are carried out directly by the Company altl)OUBh in 8ddi¢ion 10 thc Parchmenl Trusi narne, il also operntes in the name of Friary Gan1¢ners for its horti¢uliurdl operations. ReeruiinKnl and appoiN¢meni ollrustee Twstces serve for a period of 3 years after which ihcy bccome eli8iblc for re-cl¢ction. The board has a poliry of allracting new truslecs from the local community who are fully commitled to thc values of the OTganisation. They are introdu¢ed into the charity whcr¢ thcy meet the existing board, staff und mernbers Prior io & final dccision on their appointm¢nt. At ihe Annual G¢ncral meelin of the 23rd J8nuary 2024, Richard While and Sue Palsons w¢re rc-cleclcd and Karen Walker wa5 ¢lecied for anoth¢r year as Chair. Andrew Phillips siepped down from his Tole as a Truslee December 2023 alongside his wsi8nation a8 Chief Execulive following almost 30 years of service. Induc¢lon and ¢Mlhlng oitrusrees Parchmenl Trust has a prolocol for lh¢ induction and trnining of new tNslces. This prolocol Cove admini8trntiv¢ details. an or8#nisational overvicw. kcy rc18tionship$ (both internal and external) and the polici¢s and proccdures of thc trust. Th¢ Charily Commissioners, in Iheir R¢view Vi511 Report, dCribed Ihe protocol as"comprch¢nsive" Organtsailonal s¢ructure The Company is 8overned by the noTbwCXCCUtive Board of DirectorslTrustees, currently five in number. The Board meet fornially at least 4 times a year with other ad-hoc meetin8s as appropriate lo th¢ operalion. Day-t(pday management is in Ihe hand5 of the Chief Executivc and the Senior Management Tcam, comprising the Director of SeTvice5. 8nd managers relaled to services. quality. daia. fa¢ilitie& finance and human resources. Since appointment in November 2023, th¢ new Chief Executive has been working wilh thc senior management team to dcvelop and implement the new strategy. Major rLYkf m4nagemen¢ ofiho.le rlsks Risk nianagemenl The Company hes a well-dcvclop¢d risk management process in all areas of its operaiions and the Board continues to undertakc an annual review of slralcgi¢ risks, tskinbT su¢h action 35 is considered necessary lo milibFalc any risks so idcntificd. Our cornprehensive risk rcgisler is rcvicwed annu¥lly and is a standing Agenda item at every Annual General Meeling. As arising, any high-level risks are lackled head-on through project manag¢mcnl in¢luding sysicmatic monitoring and Board level-reporting until risk reduces io a s8tisfa¢tory slaius. Page 7
Parchment Trust Trustees, Report Dlselosure of Inform*tlon to audltor Each truslee has taken steps thut they ought to have taken as a tsvslee in order to make themselves aware of any relevani audit infonnation and to establish that the charity's audilor is awarc of that inforniation. The trusle¢s confirni that there is J)0 rel¢vant inf0mtion that they know of and of which thcy know the auditor is unaware. SMAII companles provlsiop statement This report has been prepared in accordance with the small companies regime under the Companie5 Act 2006. Page 8
Parchment Trnst Statement of Trustees, Responslbilitles The tnte¢S (who arc also the directors of Parchment Tnst for the Purposes of company law) are responsible for preparing the trustees. report and the financial stsiements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Gcnernlly Accepted Accounting Practice). including FRS 102 "The Financial Reportin8 Standard applicable in the UK and Republic of Ireland.. Company law requires the trustees to Pffpa financial statements for each financial year. Under company law the tTUStees must not approve the financial staternents unlss they are tISfied that they give a true and f8iT view of the state of affairs of the charitable company and of the incoming resources and appli¢aiion of reurceS. including its income and expendiluff. of the clwitable company for that PeTiO(L In preF)aTing these financial staiemenW the trustees are required to." select suitable a0Un11ng policies and apply them consistently: observe the methods and principles in the Charities SORP. make judgements and estimatcs that are reasonable and pdent. stsl¢ whciher applicable accounting 51andards. comprising FRS 102 have followed, subjecl lo iny material departures disc105ed and explain in the financial statements. and prepare the financial statements on the going ¢on¢ern b&sis unless it is inappropriate to presume that the ¢hari(able company will conunue in business. The Intses are responsible for keeping proper accounling records can disclos¢ with reasonable accurdcy al any time the financial Positi( of the charitable company and enable them to ensure that the financial slatements comply with the Companies Act 2006. They are also responsiblc for safeguarding the assets of the charithble company and hence for taking r&qsonable steps foT the prevention and detection of fraud and other iTregularities. The trust¢&% are responsible for the mainienan¢e and integryity of the cOryrat¢ and financial infornwtion included on the charithble company's wcbsile. Legislation govaning the pparatIOn and disscmination of fJnan¢ial statemcnls may differ from legislation in (ther jurisdictions. Approved by th¢ trusiees ofthe chaTity on ... .. and sigKd on its behalf by: sell Trustce Page 9
Parchment Trust Independent Audltor's Report to the Members of Parchment Trust Oplnlon We have audited the financial statements of Parchmcnt Trust (Ihe 'charity) for the year ended 31 July 2024. which omprise th¢ Siatemeni of Financial Activities. Balance Sheet, Statement ofcash Flows, and Notes to the Financial Sta*ments. including a summary of significanl accounling policie5. The financial reporting framcwork that has been applied in their preparation is Uniied Kingdom Accounling Stsndards, comprising Charities SORP - FRS 102 The Financial Rcporting Standard applicablc in the UK and Republic of Ireland, and applicablc law (United Kingdom Generally A¢cepied A¢¢ounling Practice). In our opinion the financial statements: give a iruc fair view of the stale of the clwity's atTa 4$ at 31 July 2024 and of its incoming resources and application of resourccs. in¢ludin8 its income and expenditurc, for the year then ended; have b¢¢n properly prepared in a¢¢ordance with Unit¢d Kingdorn Generally Accepled Accountin8 Practice. and have been prepared in ac¢ordance with the requir¢ments of the Companie5 Act 2006. B&sls for oplnlon We ¢onduct¢d our audit in accordance with International Stsndards on Auditing (UK) (ISAS (UK)} and applicable law. Our responsibilities under thosc slandards are fither described in the auditor responsibilities for Ihc audit of th¢ financial ststemenls section of our report. We are independent of the charity in accordance with Ihe elhical requirements th41 8r¢ relevant lo our audit of the financial slatemcnls in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical r¢sponsibilitie5 in o¢cordan¢e with ihese requirements. We believe that thc audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Con¢luslon$ relatlng ¢0 golnB Concern In auditin8 ihe financial statements, we have concluded that the trustees use of the going eon¢eTn basis of aeeountin8 in the preparation ofthc fin4n¢ial slalemLnts is appropriale. Based on th¢ work we have perfornied, we have not identified any materi£l uncertainlies relating to cvcnts or Conditions (hal individually or collectively. may cast $i1r1CanI doubt on Ihe charity's ability to continue as a going ¢onccrn for a period of 81 leasl Iwclvc Months from when the original fmancial slatements were authorised for issu¢. Our re5ponsibiliiies and thc rcsponsibilili¢s of the trustees with respccl lo concern are described iti the relevanl sections of this repotL Other Informatlon The tnjstees are responsible for the other infOrntion. The other infornmtion comprises the infomiation included in the annual report, other than the financial slalcments and our auditor's report Ihereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any forn] of assurdncc conclusion thereon, In connection with our audit of the financial statements, our responsibilily is to read the other inforniation and, in doing so. consider whether the other infomiation is materially InconsisnI with the financial ststements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If wc identify suGh material inconsisiencies or apparent material mi&8tatements. we a required to deterniine whether there is a material misstatement in the fmanci81 statem¢nts or a material misstatement of thc other informalion. If, based on the work we havc pcrfoThed, we conclude that there is A maierial misstatement of ihis other infomiation. we are required to report that facL We have nothing lo report in this regard. Pag¢ 10
Parehment Trust Independent Audltor'$ Report to the Members of Parchment Trust Oplnlon on other matter preserlbed by the Comp*nles Aet 2006 Jn our opinion, based on the work undertaken in the course of the audil: the inforn)ation given in the Trustees. Report for the financial year for which ihe financial ststem¢nts are prepared is con51St¢nt with the fuwicial State and the Trustees, Report has been prepared in KCOTdance with applicable le8al requirem¢nl& Malters on whkh we Ire requlred to report by eiceptlon In the light of our knowledgc and understsnding of thc charity and its environmeni obtained in the course of the audit, we have not idenlified material Misstatemen io the Tnle¢s. ReporL We have nolhing 10 report in rcsp¢ct of the following matters where the Companies Act 2006 requires us to rcport to you if. in our (yinion: adequatc a¢¢ounling records have nol been kepL or rthrns athquate for our audii have not been received from branche8 not visited by us: or the financial slatements are nol in agrecmcni with the accounting recorts and returns; or certain disclosures of tyustees remuneraiion specified by law are not made; or wc have not received all the infonnaiion and explanations require for our audit. ReJponslbllltl¢s of trnste As explained more fully in the Staicment of Te¢s. Responsibilitics {set out on page 9), the tTUStees are responsible for the preparntion of ihe financial sthiemcnts and for being tIsfied thai ¢hey give a mie and fair view. and for su¢h internal control as the trustees detCTmine is necessary to enablc the preparnlion of financial statements that are free from material misstatemenL whether due to fraud or error. In preparing the financial $emen the Inislees arc T¢5ponsible for 8ssessin8 the charity's ability to continue as 8 80in8 concern, disclosing. &s applicablc, matters related to going concem and using the going concern basis of accounlin8 unless the tn1ttS either intend to liquidate the charity or to cease operations, or have no realisiic aliernalive but to do so. Audllor rtspoMlbllldes for the audll of the flngnclal $latements Our objeciives arc to obtain Teasonable &ssuran¢e oboui whether the financial staiements as a whole free from materi81 mis5tatemenL wh¢iher duc lo fraud or error, and io issue an audilor's report that includes our opinion. Reasonable 8ssuran¢e is a high level of assurance, bu¢ is nol a gugrantre thar an audit conducted in accordance with ISAS (UK) will 8lways (kie¢i a malerial misslalemenl wben it exists. Misslatcrncnts 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 ofusers taken on the basis of these financial sthtcments. Th¢ exlen¢ to wbich our predureS are capable of ddecting irre8ulariti¢& including fraud is detailed belov. Page I
Parchment Trnst Independent Auditor's Report to the Members of Par¢hment Trust As part of an audit in accordance with ISAS (UK), we exercise professional judgcmeni and maintsin professional scepticism throughout the audiL We alg): . Idenlify and assess the risks of material misstatement of the financial ststement& wheiher due to fiaud or error, design and p¢rfomi audit proc¢durcs rcsponsivc to those risks, and obtain audit evid¢ncc that is sutTicieni and appropriate to provide a basis for our opinion. The risk of noi detecting a material missi8l¢ment resuliing from fraud is highcr than for one SU1¢18 from error, as fraud may involve collusion, forgery. intentional omission& mi5repres¢ntatiotss, or the override of intcmal control. . Obtain an undet5thndin8 of internal control r¢levant to the audit in ordcr io design 8udii pn)ccdures thai are oppropriatc in the circumstoncc4 bui noi foT the pwpxe of ¢xprcssing an opinion on thts effc¢tivcn¢ss of ih¢ charity's in*rnal control. • Evalua the appropriawiess of accouniing polici¢s uged and the reasonablcness of aOunting estimates and related disclosurcs made by the trusl¢es. . Conclude on the approprialen¢s8 orihe Inistees usc ofthe going conwn basis ofa¢counlinbi and. based on thc audit ¢vidence obtained, whcthcr a materi81 un¢ertsinty exists r¢latcd to events or ¢ondilions that mpdy cast significani doubt on the chaTity'S ability to coniinue as a going conccrn. Irw¢ conclude that a malerial unccrtainty exists, we Are required io drnw attention in our audiior'g report lo thc relaied disclosures in the rin&n¢ial statements or. if such disclosures are inadequate. to modify our opinion. Our conclusions are based on th¢ audit evidence obtsincd up to the date of our auditor's reporL Howcvci, futur¢ evcnts or conditions may caus¢ the charity 10 cease io conlinue as a going ¢oncem. • Evaluaie ihe overnll prexntation. structure and content of the financial MateMen including the diselosures. and wheihcr thc financial statements represent the undcrlying tran5auions and events in a rnanner that 8¢hieves fair presentation. . Obtain sufficient appropriate audit evidence regarding thc financial inf0mtion of ihc cntities or business activities within ihe charity to cxprcs5 an opinion on the financial sthtemen(& We ar¢ rcsponsiblc for Ihe direclion, supcryision and perfoMw¢ of the charity audiL We remain solely Tesponsiblc for our audit opinion. We communicate with tho% charyed with Bovernancc regardin& llmong other mattcTS. the planned 5pe llnd timing of the audil and $ignific4nt audit findings. includin8 any significfinl defi¢ien¢ies in internal contToI that w¢ identify durin8 our audil. Use of our report This report is madc solely to thc charitable company's ttwIc. as a body. in ¢0[dance with Chapter 3 of Part 16 of the Companies Act 21)06. Our audit work has been undcrt2ken w that we mighi state to the charity's trustees those matters we are required to state to thcm in an auditor's Teport and for no othcr purposc. To thc fullest extent perniitted by law. we do not accept or assume respoDsibility io anyone other than the charitable company and its ITUStc¢s as a body, for our 8udil worl for this reporL or for the opinions we have fornd. Pagc 12
Parchment Trust Independent Auditor's Report to the Members of Parchment Trust Rowena Walsh FCCA (Senior Statutory Auditor) For and on behalf of Mannington5. Statutory Auditor 39 High Street Balt1¢ East Sussex TN33 OEE Date:. ..10.1.12. Page 13
Parchment Trust Statement of Financial Activities for the Year Ended 31 July 2024 (Including Income and Expenditure Account and Statement of Total Recognised Galns and Losses) Unrestri¢ted funds Restricted funds Total 2024 Not¢ In¢ome f4nd Endowments from: Donations and legacies Charitable activities Investment income 14.845 3.746,655 13,586 525.050 539,895 3,746,655 13.586 Total income 3,775.086 525,050 4 300,136 Expenditure on: Charitable a¢livitie5 (3,622,235) (33,519) (3.655,754) Total expenditure (3,622,235) (33,519) (3.655,754) Net income 152.851 491,SJ I 644,382 Nei movelnenl in funds 152,851 491531 644J82 R¢¢onelllatlon of funds Totsl fLfftds broughi forward Total fim(ts carried forward 1.463,694 485.172 1,948.866 19 1.616.545 976.703 2593,248 The notes on pages 18 to 32 fonn an inlegrnl part of thesc financial ststemcnts. Page 14
Parchment Trust Statement of Flnancial Actlvitles for the Year Ended 31 July 2024 (Including Income and Expenditure Account and Statement of Totsl Recognised Galns and Losses) Total 2023 Unrestrlcted Restrlcted Note Income and Endowments from: Donations and le88¢ies Charitable aclivilies Investment incomc 13.729 3,023225 5.136 1.238 14,967 3.023,225 5,136 Totsl income 1,238 3,043.328 Expendlture on: Charilablc aLtivities {2.859.005 13.480) 2,872,485 Total expenditure Net incomel(cxpenditure) Transfer5 between funds 2,859,005) {13,480) 2.872,485) 183,085 (52) (12.242) 52 170.843 Nct movcment in funds 183,033 (12,190) 170,843 Re¢onelllatloo offunds Tothl fiuids brou¥ht forward Total funds Carried forward 1,280.661 497,362 1.778.023 19 1.463,694 485.172 1,948,866 All of the charity's activities derive from continuing operntions durin8 the above Iwo periods. The funds breakdown for 2023 8nd 2024 is showD in note 19. The notes on pa8cs 18 to 32 fonn an inie8rn1 part of these fin8n¢ial statements. Page 15
Parehment Trust (Registration number: 3920430) Balance Sheet as at 31 July 2024 2024 2023 Note ixed assets Tangible asseis 12 1.969.617 1,512232 Curr¢ot assets Debtors Cash ai bank and in h8nd IJ 337,748 584.460 315,161 487,725 922,208 802,886 Creditors: Amounts falling due withln one year 14 1167,989) (152,336) et current assets 754.219 650.550 Total assets less eurreoi Ilablllties 2.723.836 2.162.782 Creditors: AmouDts falling due after mor¢ than e yar Net awts 15 {130588) (213.916) 2.593248 1.948,866 Funds of the charity: Restrlc¢ed intonR funds Restricted funds 19 976,703 485.172 Unrestrlcted Incon funds Unstricted funds 1,616.545 1.463,694 Total funds 19 2 593248 1,948,866 The financial statements on pages 14 to 32 vKrc approved by the trustccs. and authorised for issue on ... ...... .... ... ands ed on ih¢ir behalf by: slee The no*S on pages 18 to 32 forn] an integrdl part of these financial statement Page 16
Parchment Trnst Statement of Cash Flows for the Year Ended 31 July 2024 2024 2023 Nole CAsh Ilow$ from operatlng activilles Net cash incomc 644.382 170.843 AdJu$tments to cash flow5 from non4Ash Itemi DepCiatIon Investmeni income Profitl (Loss) on disposal of fixed assets held for the charity's use 203.666 {13,586) (2236) 832,226 128.217 (5,136) 4.628 298,552 Worklng eapltal adjustrnents Incre in debtors Increasd(decrease) in crediiors (Decreascyincr¢ase in d¢feTrcd income Nct cash flows from operniing aclivilies Cash flow$ from Investlng Ictlvldes Interest receivable and similar InMe Purchasc of lan¥iblc fixLxI asscts Sale of thngiblc fixed assets Nct cash flows from investing activities C18h flows from Iln#n¢lng actlvl¢ RLpaym¢nl of loans and borrowings Repaymen( of capital elemeni of finance leas¢s and HP conlracts Net casb flows from ruw1n¥ aclivilies 13 14 15 (22,587) 21,664 143 (80,617) (12.073) 143 831,160 206.005 13,586 (682.763) 23,948 5,136 (403,478) 5,395 12 645.229 1392,947) 14 16 (8.827) 80,369 (8,290) 153,716 89.196 145.426 Net increase/(decrease) in cash NI cash cquivalents Cash and cash equiv¥l¢nts ai l August Cash and cash equivaknts al 31 July 96.735 (41.516) 487,725 529.241 584,460 487,725 All of the cash flows are derived from ¢ontinuin8 operations duTing thc alx)ve two period& The notes on pages 18 to 32 f¢)rni an integral part of these financial statrmen¢s. Page 17
Parchment Trust Notes to the Financlal Statements for the Year Ended 31 July 2024 I Chthrity status The charity is limiied by guarantee, incotpordted in England and Wales, and consequently does not have share apilal. Each of the trustees is liable to ¢ontribui¢ an amount not exceeding £1 towards the wts of the Charity in the event of liquidation. The address of its registered office is: Ore Place Farn] The Ridge Hastings East Sussex TN34 2RA The principal place ofbusiness is: Ore Place Fann The Ridge Ha5tings East Sussex TN34 2RA 2 Accoundng poli¢les Summary ofsignifKant accounting poli¢ies and key aeeounting e5tiJnates The principal accounting policies applied in the prepardtion of these financial 5tst¢mcnts are set out below. Th¢se p)licies have be¢D coAsislenily applied to all the Yea presenirf uoiess oth¢nvise s¢a*(L StatemeDt of compllance Thc financial statcments have been prepar in accordance with Accounting and R¢rtIftg by ChaTities: Statement of Recommend Practice (appIlble io chaTilies Preparing (heir accounts in a¢¢ordance with the Financial Reporting Standard applicable in the UK and Republic of ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ircland IFRS 102) and the Companies Act 2006. Basis ofpreparatlon Parchment Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognis¢d ai historical ¢osi or uansaaion value Unless otherwise stated in the relevant accounting policy notes. Going ¢oncern The trustees consider that there are no material uncerfainties about the charity's ability to continue as a going ¢on¢ern nor any significant areas of uncertsinty that affect the C8y1ng value of assets held by the charity. Page 18
Parchment Trust Notes to the Fin8ncial Statements for the Year Ended 31 July 2024 Judgements DeteTmination of whdher there are indicators of impairnwil of the Charitys langible &ssets. Factors taken into considerntion in r¢achin¥ such a decision include the ¢¢oTh)mic viabilty and cxpected rulu finaDcial perforn)an of the asset. Key sources of esllmAtion uneertalnty Tangible fixed assets are depreciaied over their ful lives taking into account residual values. where appropriate. The acttl lives of the assets and residual valuc5 aff assessed annually and may vary depending on a number of factot5. In r¢-assSIng asset live4 factors such as thnOlogICal innovation. product life cycles and maintenance programmes are taken In accounL Residual value ass$ments ¢onsider issues such as future maTket condilions, the rwnaining life of the assa and projected disposal values. The carrying amount is £1.969.617 (2023 -£1.512.232). Income ind endowments All income is recognised once the charity enlitlemenl lo the income, it is probable that the income will be received and the amount of the in¢ome rettivable can be measured reliably. This income is dcrived from th¢ provision of goodServICeS and stated after trade discounts and net of vat weTe applicable. Donarfons andlegdcies Donations are recognised when ihe charity Iw becn notified in writing of both the amount and settlement date. In the event that a donaiion is subject to conditions thai require a level of perforniance by the Charity before the charity is entitled to the funds. the income is deferred and recognised willl either tho% conditions ar¢ fully mel or the Ifilment of those conditions is wholly within the control of the charity and it is probable that these condition5 will be fulfilled in the reping perio(L Deferredincome Deferred incornc represents amounts Te¢eived for future periods and is released to incoming resources in the period for whic14 it has been received. Such incon]e is only defened WI. - The donor specifies thai the grant or donation must only be used in future accounting period5: or - The donor h&8 imp)sed condilions which must be before the chaTity has unconditional ¢ntitlement. InveJtment Incom¢ The charity received bank InreSt thToUgTrt the YLW. Cliarilable acftvities chlble inco is for th¢ provision of services lo provide p¢N?n-centred services lo wide raDg¢ of disabilities ihrough occupational and day care idivities. Whilst also selling any products made through the o¢¢upational activities by the servitt users to generate more fimds. Oiher income Oiher trading income is generated through small fund raising a¢tivities throughout the yar. Page 19
Parchment Trust Notes to the Financlal Ststements for the Year Ended 31 July 2024 Eipendllure All expenditure is reco8nised once there is a legal or cotLwuctive obligation lo th•t upenditure. it is probable setllement is requircd and the amouni can be measurnl reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to thai catcgory. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of Ur5, with c¢ntral stsff costs allocated on the basis of timc spenL and deprecia¢ion chwges allocated on the portion of the oss¢t's use. Other sUppt costs are alloca*d based on th¢ spread of sthff cos These arc costs incurred in attractiti8 voluntsry io¢om4 the manag1 of inveslm¢nts and those iD¢utted in trading activilies that rnise fiMMIs. Chan¢able acilvlrfes Charitsble expendiiure comprises ihose costs iu[red by thc charity in thc delivery of its tivitieS and serviccs for its beneficiaries. It includcs both wsts thai can be all(xated dirtlY to such a¢tivities and thosc costs of an indirect nature necessary to support them. Support tosls Support costs include central functions and have been allocaied to xtivity ¢OSt ¢atcgorics i)n a basis consistent with the use of resour¢¢s. for example. alknalin8 property costs by floor are4 or per Capi stsff costs by the time spent and other costs by their wage. Governance Costs These include the costs attril)uthblc to the Chariry's compliance with conslitutional and statutory requiTem¢nts. includin8 audil stralegic wement and tTUSte¢s rncctin8s and reimbursed expens¢s. Govtrnment grAnts Government wants are rccognised bad on the ac¢Nal model and are m¢asurd at the fair value of the asse¢ received or receivablc. Grants arc ¢lassified as relating ¢ither to revcnue or to Cts. Grnnts relating to Tevenue are recobvnis¢d in income over the period in which the related costs are rcco8nised. Grants relating to Lwls arc reeo8nised over thc cxpe¢ied useful life of the asset. Where pirt of a nI relating ts) an assct is deferred. it is recognised as deferred income. Taxaidon The charity is ¢onsidcTed io p&ss the tests set out in Parngraph I S¢trdle 6 of the Finance Act 2010 and therefore it meets the definition of a charitable cornpany for UK Corporation tsx prSeS. Accordingly. the Charity is potentially exempt from taxation in respect of incorne or capital gains rcceived within categoriu covered by Chapter 3 Part I I of the Corp)ration Tax Act 2010 or Section 256 of the Taxation of Chargeable GJITLS Act 1992. to the extent that such income or gains are applicd exclusively to charitable purposes. Tgnglble flxed awts Individu81 fixed ass¢ts costin8 £1 or more are initially recorded * cosL less any subsequent CmUlated d¢pr¢ciation and subsequent accumulalcd impaim]ent losses. Pagc 20
Parchment Trust Notes to the Financlal Statements for tbe Yelr Ended 31 July 2024 DeprttiatioD and ankOrtIs2doD Depreciation 15 providcd on tsngible fixed &8sets so as to write off the cost or valuation, less any estimated residual value. over their expected useful economic life as follows: Ass¢t cl Land and buildings Fixtures and fittings Moior Vehicles Depre¢lgtlon D*thod and rnte Buildings straight line over 5 to 50 years 20% to 25/0 reducing balance 25% Teducing balance Trade debtors Trade debtOTS are amounts due from ¢uslomet5 for Me1 501d or scrvi¢es Frfornied in the ordinary course of business. Tradc debiors arc r¢cognised initially at the traThclion price. They ate subsequently measured al anrtiSed cost using the eITliVe inlerest methrf less provision for impairnwiL A provision for the impa1mllt of trnde debiors is established when there is objectiv¢ ¢viden¢e that the clkarity will not be 8ble ¢ollect all amounts due accordin8 to the original tern of thc receivables. Ch 2nd cash equlvalents Cash and Cash equivalents comprise cash on hand and call deposits, and other short4erni highly liquid investments ttt are readily convertible to a know) amount of and are subject lo an insilf1¢0l risk of chang¢ in value. Trade creditors Trade creditors are obligations to pay for goods or services thai have been acquired in the otdingry course of business from supplier& Accounts payable are classified as current liabilities if the charity does not have an unconditional righL at thc end of th¢ reporting perio to defer settlement of the creditor for at least e1Ve months after the reporting date. If there is an unconditional right to defer settlement for at least tw¢lve months after the reporting date. they a presented &8 non-current liabilities. Borrowings Interest-bearing borrowin8s are initially recoTded at fair valu& net of transaction costs. Interest-bearing IM)rrowin8S a subsequenily catried at amortised ¢osL with the difference behveeD the Prced Det of transaction costs, and the amount due on redemption being tecognised as a charge the Statement of Financial Activiiies over the period of thc rclevani borrowing. IntCTeSt expensc is recognised on ihc basis of th¢ effective interesi method and is included in interest pyable and similar charges. Borrowings are classified as curreni liabilities Unl the charity has an uncoThlitional right to defer settlement of the liabiliiy for al ie&st twelve months aftcr the reporting da Page 21
Parehment Trust Notes to the Flnanclal Statements for the Year Ended 31 July 2024 Fund structure Unre5tricd income fimds 8re general funds thal are available for use At the trustees discretion in thrthernncc of the obje¢lives of the charity. Restricl¢d incom¢ funds arc IhosL donalcd for usc in a particular area or for Specific purposes, the of which is restricted to ihat area or PUTPOS¢. Penslons and other post retlr¢mcnt obllgtlons The charity operates a defined contribution pension scheme which is a pension plan under which fixed Contributions are paid into a pension fund and thc charity h8s no legal or constTUCtive obligation lo pay further contributions even if the fund does not hold sutyicienl assets to pay all employees the benefits relating lo ¢rnployee service in the current and prior periods. Contribulions lo defined contribution plans are rccogniscd in the Statement of Financial Activitics whcn they arc due. If contribution paymenis exceed the contribution due for service, lh¢ excess is recognised as a prepayment. Flnanclal Instruments Cl4sslfi¢4rfon Financial asscls and funCIlI li8bilities ar¢ r¢¢ogniscd whcn the Charity b¢wmes 8 party to the ¢ontraclual provisions of the insttwment. Finonci81 liabilities and ¢quily insinunents are ¢l&ssified according lo the subslance of the ¢onlrnctual arrangemen entered into. An equity iTh4trumcnt is any contract that evidences a Tesidual interesl in the assets of the chariry after dedu¢ting all of its liabiliti¢s. Recogniilon and measurement All financial ass¢ts and liabilities orc inilially measured at transaction pricc (including transalon costs), exccpt for Ihose finuncial assets classified as at fair value through profil or loss. which are inittally measured at fair value (which is nornially the trdnsaction price cxcluding transaction costs), unless the 8rrangem¢nt constitutes o finaneing transaction. If an arrnn8ement constitutes a financin8 trnCtIOn. the financial &8sel or financial liability is measured at the prcscnt valuc of the future payments discounted al a market rat¢ of in¢eresi for a similar debt instrum¢nt. Financial asscts and liabiliti¢s are only offset in the statcmenl of financial p051tion when, and only when thcre ¢xisls a legally enforceable right to set off the re¢ognised amounts and ihc charity intends either to settle on a net basis. or to realis¢ the ossel and setile the liabilily simultaneously. Finan¢ial assels are derecognised when and only when a) the contraciual rights to Ihc cash flows from the financial asset expire or are settlcd, b) the charity tTansfers 10 another party substantially all of Ihe risk5 and rewards of oN¢r$hIp of the financial asset, or c) Ihe charily. despite having retsined some. but nol oll, significani risks and rewards of 0ershiP, has transferred control of the asset to another party. Financial liabilities ar¢ dcreco8nis¢d only when the obligation specified in the contract is discharged, cancell¢d or cxpircs. Pagc 22
Parcbment Trust Notes to the Flnancial Statements for the Year Ended 31 July 2024 3 Income from donatlons and Iyeles Unrestri¢¢ed fuDds Genernl Restrlrted fund$ Total 2024 Total 2023 Donations and le8acics; Donations from companies, trusts and similar proceeds DonaLions from individuals 525,(J)O 50 525,000 14.895 14.845 14,967 14.845 525.050 539.895 14,967 4 In¢ome from charltabk aetlvltles UDreslrlrt¢d fund$ Genernl Tot 2024 Total 2023 Occupational and day care services Sale of goods 3,661.165 85.490 3,661,165 85.490 2,943.499 79.726 3.023,225 3,746.655 3.746.655 5 Investment Income Unrestrleled fundy General Total 2024 Total 2023 Interest receivable and similar in¢om¢: Interest receivable on bank deposits 13.586 13,586 5,136 Page 23
Parchment Trust Notes to the Financial Statements for the Year Ended 31 July 2024 6 Expendlture on charit4ble 2Ctivitles Unrestricted funds Gencr81 Re$trieted fuods Total 2024 Total 2023 Note Occupational and day care services Depreciation. amortisation and other similar costs Staff Costs Govemance costs 856.682 50 856,7J2 569.733 172.433 2,573,249 19,871 3,622235 33,469 205,902 2.573,249 19.871 123,589 2.166.855 12.308 33,519 3.655,754 2.872,485 7 Analysls of governance and support eosts Governanee eostg Unrestrleted funds Generfdl Total 2024 Total 2023 Staff costs Other stsftcosts Audit fees Audit of the financial stsiement5 Other fees paid to audilors Other governance costs 7,700 7.700 2.400 7,480 4.592 99 7.480 4592 99 8,320 1,380 208 19.871 19.871 12,308 8 Net Incomin0utg0Irtg resources Net incoming r¢source5 for the year include: 2024 2023 Audit fees (Profil)ILoss on disposal of fixed assets held for the charity's ovm use Depre¢iation of fixed asscls 7,480 2.236 203.666 8J20 (4,628) 128.217 Page 24
Parchment Trust Notes to the Flnaneial Statements for the Year Ended 31 July 2024 9 Trustees remunerAtlon and ¢xpenscs No trustees, nor any persons connected with have rec¢ived Any remuneFation from the charity during the year. No trustecs have received any reimburscd expenses or any other benefits from the ¢harity during the year. io stsff costs The aggregate payroll costs were as follows: 2024 2023 StalT¢o$ts durlng the ye&r were: Wages and salaries Social security Costs Pension costs Other staff costs 2J57,012 173.137 43.100 7.700 1,987,455 144,804 34,596 2,400 2,169.255 2.580.949 The monthly avernge number of persons (including senior managemeni I leadership team) employed by th¢ charity during the year expressed as full iirne equivalents was a8 follows: 2024 2023 O¢cupalioDal and day¢ar¢ services Administration and support 127 130 No employee received emoluments of mor¢ than £60.000 during the year. The totsl employe¢ benefits of the key management personnel of the charity were £77,581 (2023 - £67,099). I l Taxation The clwity is a registered chaTity and is therefore exempt from Cory)oraiion Tax. Page 25
Parchment Trust Notes to the Flngnclal Statements for the Year Ended 31 July 2024 12 Tan8lble fixed assets Land rdnd buildlngs Furnlture and equlpmenl Motor vehlcley TotAI C05t At l Au8USt 2023 Additions Disposals 1.206,623 535,808 236,706 32.913 770,247 114,042 29.490 2.213,576 682.763 29,490 At 31 July 2024 ,742,431 269.619 854,799 2,866 849 DepreclAdon Al l Augusl 2023 Charye for th¢ ycar Eliminated on disposals Al 31 July 2024 243,038 64.937 158,249 21,008 300,057 117,721 701,344 203,666 307 975 179257 410000 897.232 Net book value Al 31 July 2024 At 31 July 2023 Parchment Trust have this year acquired a new sitc (The Bridge) valued 8t £525,000 which has b¢en capitalised and 15 therefore shown within Fixed assets: Land and buildings on the Balance Sheet. The Bridge was acquired for no consideration and th¢refore is treated as a donated asset. However, it should be noted that the value of the Asset may not be recoverable by Parchment TTUSI due to the covenants for strict community use attached to the site de¢d. which would be passed onto any fvlure owmcr. Furthermor¢, undcr thc d¢cd. should Pawhment Trust ever wish to dispose of this asset, they must first offer the site back to East Sussex County CouDCiI. 1,434.456 90.362 444,799 1.969.617 963,385 78.457 470 190 .512,232 13 Debtors 2024 2023 Trad¢ debtors Prepayments Ac¢rued income Other debtor8 171.687 39,228 124,317 2,516 180,456 29.926 102,364 2,415 315.161 337,748 Pag¢ 26
Parchment Trust Notes to the Financlal Statements for the Year EDded 31 July 2024 14 Credltors: amounts falllng due wlthln one yeAr 2024 2023 Bank loans Trnde crcditors Hire purclwe and finan¢c Ica5CS Other tsxation and social s¢curiry Other creditors Accruals Deferred income 9,279 18,153 73,926 38.820 10,672 17,139 8,705 11.887 80.368 30,489 8.584 12,160 143 167.989 152.336 15 Cr¢dl¢ors: amounts fqlllng dyo After one ye#r 2024 2023 Bank loans Hire purchase and finance l¢ase5 116,472 44.116 95,873 118,043 213,916 130,588 Iniludcd in the ¢rcdilors arc the following amounts du¢ After more than fiv¢ years.. 2024 2023 After more than five years by instslmenls 42,175 Bank loans The loan is secured by a firsi fixed legal charge with fvll arantee over the freehold interest in the property; Ore Place Farni. Th¢108n 15 a fvll rep8yment loan over 25 years from August 2007 at a rate of 6.50A interest. Interest and charges on th¢ loan cxpenscd in the y¢&r was £6,558 {2023 - £7,095). Page 27
Parcbment Trust Notes to the Financial Ststements for the Year Ended 31 Juty 2024 16 ObllgAtlotts under leases 2nd hlre purtlwt contrgets Operatlng lease commitments Total future minimum lease payments under no1¢¢11#b]e operdting lease5 are as follows: 2024 2023 Land and buildlAgs Within one year Belwe¢n one and five years 41.000 146,917 11.457 187,917 11.457 The le was agreed as 8 5 year lease begining on 6th Febnwy 2024. Total operdting Icasc payments expensed in the year We £39517 {2023 - £33.240). 17 PensloD and other sehemes Dellned ¢ODtrlbution pension scheme The charily operntes a defined contribu(ion pension schem& Th¢ pension cost charge for the year represents contributions payable by the charity to the schemc and amounted to £43.100 (2023 - £34.596). 18 Commitments Other financial conunitwnts Phone Equipment The Charity had entered into 2 5 year non-can¢ellable hire lea5¢ eommilmcnt for phone equipment at a rate of £87 per rnonth from May 2020. Prinler The Charity had en*Td into a 5 year nonveIlable hire le conuniiment for phone equipment at a rale of £101 per rnonth from Octob¢r 2020. The Charity had eniered into a 5 year nonwcwllable hire le 1)minent for phone equipment ai a rnte of £84.60 per rnonth from Scptcmber 2021. Page 28
Parchment Trnst Notes to the Financlal Ststements for the Year Ended 31 July 2024 19 Funds Ba12nce at I August 2023 In¢omlng resourc Balanee at JI July 2024 expended Unre$trlcted funds Genernl General fund 1.463.694 3,775,086 (3,622235) 1,616,545 Re5tr1eted funds Acquisition fund New trailer SEIF Project Foreshore Tnt granl BIFFA grnnt- Timber sheds Theaklen drive kitchen Shaded area (FG) OuLside work Woodworking equipment The Friory- Till The Percy Bilton Charity - Supported ¢mployThenl project Mctal Detector fimd The Brid8C 149.041 16 318,299 234 6,807 500 J53 (7.083) 141.958 16 300.155 216 {18,144) (18) (6.807) 500 283 3.000 500 (70) 500 3.212 (1,168) 3,210 (179) (so) 3,031 50 525.000 525.000 Total r¢sirl¢ted fuDds 485.172 525,050 {33.519 976,703 Total funds 1.948.866 4.300,136 3.655.754 2,593,248 Page 29
Parebment Trust Notes to the Financlal Statements for the Year Ended 31 July 2024 Balance at I Augu$t 2022 Incomlng re50ur¢es Resourtes exptnded Balanee at 31 July 2023 Transfers Uorestrkted funds GeneMI General fiuMI .280.661 3.042.090 (1859.(K15) (52) 1.463.694 Restricted A¢quisilion fund New trailer SEIF Project Foreshore Tnsl 8nl BIFFA grant - Timber sheds Theeklen drive kitchen Shaded area (FG) An81ing Trusl Outside work Woodworking equipment The Friary - Till The Percy Billon Charity - Supportcd employment PTOjC¢i Total reslrlcted fundi 151J35 16 326,(1 258 7.563 500 (2.294) 149.041 16 318.299 234 6,807 500 353 (7.702) (24) (756) (88) (1.290) 1,238 52 3,000 500 3212 500 4J80 (1.168) 3.368 3.210 497,362 1238 {13.480) 52 485,172 Total funds 1,778,023 3,043 J28 2,872,485) 1,948.866 Pag¢ 30
Parehment Trust Notes to the Financlal Statements for the Year Ended 31 July 2024 The specific puryoses for which the funds we be applied are as follows: Purposes of Testrithed funds: The putw of the individual funds is gencrnlly shown by their titl&s. Those fimds used to purcha5c fixed assets have the deprecialion Charged on those assets in the year allad to the unlil il is fully utilised. The Aquisition Fund's purpose was io buy the freehold Ore Place Farni at i co# of approximatly £190.000, the only movcmcnt in this fiwid now is (kprcciation and the vaulation of the bridge re*builL The SEIF project fund ¢omprisc$ a grant from SEIF towards the CO of restorin8 and convertin8 previously unusable parts of the charity's buildings al Ore Place bxome addiliornl fa¢ililies for we in the charity's work. The Foreshore Trust grnnt WLS receiv1 to fvnd the purchase of IT equipmenL The BIFFA grant was r¢ceived to nd the purchw effction of two timber sheds at Friary Gardens. The Bridgc is a new siie that was effectively doMt¢d to Parchment Tn( however there are covenants for Stri¢t communily use allllLhed w Ihe siie deed. which would b¢ passed onto any future 0er. Furthennor¢, under the deed. should Parchment Trus¢ ever wish ¢0 dispose of this asseL they must first offer ¢h¢ sitc back to East Sussex County Council. Page31
Parehment Trnst Notes to the Financlal Statements for the Year Ended 31 July 2024 20 Analysis of nel assets between funds Tot*1 fuDd$ at 31 July 2024 funds GeoerAI Restrfcted funds Tart[¢ fixed assets Cutrent assets Current liabilities Creditors over l year 996,914 918.208 (167.989) {130J88) 1.616.545 972.703 1,969,617 922.208 (167.989) (130,588 2.593.248 976.703 Total rKt assets UDrestri¢ted fund$ General Total funds at 31 July 2023 Restricted funds Tangible fixed assets Curr¢nt assets Current liabilities Credilots over l y¢ar Total net assets 1.031.060 781236 (134.686) (213.916) 1.463.694 481,172 21.650 {17,650) 1,512.232 802.886 (152,336) (213,916) 1.948,866 485.172 21 Analys1$ of net funds At l August 2023 FlnaDclng cash flows At31 July 2024 Cash ai bank 4nd in hand Finance leases and hire purchas¢ contracts Net debt 487.725 (198.411) 289.314 96,735 80.369 584,460 {118,042) 466,418 At 31 July 2023 177,104 Al l August 2022 in#nclng cjsh flows Cash at bank and in hand Finance leases and hite purch contracts Net debi 529,241 (44.695) 484.546 (41.516) {153.716) (195.232) 487.725 (198.411) 289.314 Page 32