Charity registration number 1116125 {England and Wales) Company registration number 05751140 CHRYSALIS (CUMBRIA) LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 CHRYSALIS (CUMBRIA) LIMITED LEGAL AND ADMINisfRATIVE INFORMATION Trustees Mrs B H Earl Mrj R Fearon Mrs M A Drury MrDADodd Mr S Walker Secretary Mrs M A Drury Chief executive officer Mrs C Doherty Charity number 1116125 Company number 05751140 Principal office and registered office Leaside Longthwaite Road Wigton Cumbria United Kingdom CA7 9JR Auditor Saint & Co Chartered Accountants Sterling House Wavell Drive Rosehill Carlisle Cumbria CAI 2SA Bankers National Westminster 92 English Street Carlisle Cumbria CA3 8NF CHRYSALIS (CUMBRIA) LIMITED CONTENTS Page Trustees, report 1-21 Independent auditor's report 22-26 Statement of financial activities 27 Balance sheet 28 Statement of cash flows 29 Notes to the financial statements 30-46 CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025 The trustees present their annual report and financial statements for the year ended 31 March 2025. The financial statements have been prepared in accordance with the accounting policies set out in note I to the financial statements and comply with the charity's governing document, the Companies Act 2006 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 l January 2019). The trustees are committed to applying best practice in governance commensurate with our charitable status and our principal activities. This report sets out our approach which is based on the Charity Commission Governance Code. The aim of the Code is to help charities and their trustees develop high standards of governance. Whilst the Code is neither a legal nor regulatory requirement. the trustees believe that we should aspire to comply where possible. Where we cannot presently comply with aspects of the Code we will provide an appropriate explanation. In 2024 The Charity Commission established a Steering Group to take a wider look at the Code, exploring its content, structure, applicability to different sizes of charity, the use of language and user-friendliness of the framework. An updated version of the Code will be issued during 2025 and we will set up a Working Group to ensure that we continue to comply with the Code, where appropriate. Princi lel-o anisational Pur ose The board is clear about the charitys aims ond ensures that these ore being delivered effertively and sustainably. Chrysalis is an independent charity and company limited by guarantee. The charity is governed by a constitution as adopted on l June 1995. amended in October 1995 and further amended in July 1999 and September 2024. This is registered with the Charity Commission. CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Objectives and activities The trustees hold an Annual Strategy Meeting together with the Senior Management Team. During this meeting the trustees review our charitable purpose along with an appraisal of the external environment. The meeting will also review the effectiveness of our services and will ensure that we are providing a public benefit which is valued by our clients, their families and other stakeholders. The Annual Strategy Meeting will include a thorough examination of the environment to appraise and ensure our sustainability. Our Mission Statement: To be an agile local provider of choice, trusted by individuals to meet their needs and enrich their lives. We will provide excellent quality of care and 5UPPOrt and we will ensure our financial stability. We will deliver these objectives by attracting and retaining aflexible and multi-skilled workforce. Our strategic objectives are to: deliver excellent quality of care and support to be the local provider of choice trusted by individua15 to meet their needs and enrich their lives to attract and retain a flexible and multi skilled workforce to ensure financial stability VISION- to enrich and support the lives of individuals with disabilities In line with our delivery plan Chrysalis provides a range of person-centred activities within the community. We also have resource bases at Leaside and The Meeting Place in Wigton and at Westmoor in Carlisle. Individuals engage in a range of supported activities including independent living skills, creative arts, employment training, sensory stimulation, computing, horticulture and photography to name but a few areas. Our Wholefood Shop enterprise continues to offer opportunities for individuals to increase skills and confidence in a supported placement to develop future employability whilst providing a great offer for the local community. We have access to a range of community facilities across Cumbria which include swimming sessions and hydrotherapy, fell walking, sailing, bowling, accessible cycling and a range of outward-bound experiences. All support is person-centred offering group, one-to-one and two-to-one activities dependent upon the needs of each individual and the activities undertaken. Our range of placement opportunities for health and social care. nursing and social work students from a number of educational centres throughout the region was once again a popular service. Whilst providing much appreciated support for Chrysalis, these placements also allow the students to gain valuable skills and experience which will assist with their future employability within the sector. The provision of support for individuals in their own homes has continued to develop during the year and our 24/7 Supported Living is now provided across three locations in North Cumbria. CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Achievements and performance During the year we completed a complex project to provide supported living to an existing client in Carlisle. This involved purchasing a property which is now reflected in our Balance Sheet. The client and their family are now delighted with the outcome and this may provide a template forfuture supported living projects which are in great demand in our operating area. We are grateful to everyone who assisted with this project. During the year an Extraordinary General Meeting was held to amend our Objectives. This amendment was required to facilitate the Supported Living Project in Carlisle. We are grateful to Carlisle Window Systems who replaced all the windows at our We5tmoor site. The new windows are fantastic and as well as looking good, they will also help with our energy bills. Once again, we produced a Chrysalis calendar. The 2025 calendar features photos taken by staff, supporters, clients and theirfamilie5. A competition was held to select the photos foreach month, this was a really difficult decision as there were so many excellent entries. During the year work commenced to update our website and our marketing material. This has been possible thanks to a grant of £5,000 from Bedrock Digital. We are looking forward to launching the new website during 2025. Cumberland Council carried out a quality audit of our sUPPOrted living provision. We were pleased with the partnership approach to this work with the Council and were delighted with the final report which was a great reflection of the excellent work carried out by all the staff teams. As part of our process to continually maintain and refresh our buildings we installed new doors at The Meeting Place. The doors were finished sympathetically in accordance with their heritage status. We are grateful to the Joyce Wilkinson Trust for their financial support with this project. We have further embraced technology with the introduction of VR Headsets to enable people to experience a wide range of experiences and develop immersive learning experiences. The Annual Trustee Strategy Day was held in Wigton. This year, as part of our Equality, Diversity and Inclusion {EDI) aspirations several people we support attended the meeting to tell us how it feels to be 5UPPOrted by Chrysalis. Individuals gave great feedback and good insight into how areas of support can be improved. The trustees are grateful to the individuals who had obviously undertaken a great deal of preparation and to Vicky for her support. Going forward the trustees would like to repeat, and indeed, extend this initiative to ensure that all stakeholders are empowered to shape our future provision. CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 The trustees are pleased to report that we continued to trade profitably during the year. Whilst we do not aim to maximise profits, we need to make sufficient profit to allow us to continue to develop our services and to continue to pay at least the National Living Wage to all staff. The profit is added to our reserves to ensure that we continue to meet our Reserves Policy. We have continued our work to develop our unique sensory environment in the grounds of the Meeting Place to provide opportunities for learning all year round. Our shop in Wigton.. Chrysalis Wholefoods continues to be popular with people in Wigton and the surrounding area. The shop not only provides an additional income stream but it offers a unique work experience to clients. Events Once again, we were delighted to hold a number of our popular events during the year. Among the highlights were the following: Music workshops Shows at The John Peel Theatre Christmas Party Easter concert Chrysalis Has Got Talent Quiz Nights Trips to Blackpool and Beamish Guest appearances by Hand Vibes Tree planting with Cumbria Rivers Trust Sailing Windermere with Blackwell Sailing The development of our Employability Course We received a number of donations from local businesses and individuals which helped towards the costs of putting on these events. The annual craft fair at Greenhill was successful and also raised over £1,2CKI which was fantastic. CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Staff We are proud to confirm that all staff are paid the Real Living Wage in accordance with the Living Wage Foundation along with our Employee Assistance Programme {EAP) which ensures that all staff have full and free access to 24-hour support and a range of enhanced benefits. We encourage and support staff at all levels, by providing technical and professional education and development. Our objectives and the performance towards those objectives are communicated via regular staff and management meetings. During the year staff have continued to attend numerous courses. many of which have continued to be presented online or via a blended learning approach. We are proud to provide a working environment which encourages equal access to training, promotion and career development among all of our staff regardless of their age, creed, gender, marital status or race. We continue to provide a robust approach to the delivery of all Learning and Development from induction and care certificate, to specific skills such as project management, to enhanced qualifications up to Masters Level ensures a culture of lifelong learni ng across the organisation. We appreciate our "Disability Confident" status which means that full and fair consideration is given to applications for employment from disabled persons. Once again, our staff have continued to provide an excellent service to our clients, and the trustees would like to express their thanks to all our staff for their dedication and loyalty shown throughout the year. CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Financial review This year the main aim was to consolidate and concentrate on the fundamentals of the organisation however, we always need to be open and reactto opportunities as and when they arise. An opportunity arose to provide much needed additional support to an existing client by way of Supported Living Services. Extensive research and viability studies of the opportunity took place and we were pleased to open a further Supported Living provision within the city of Carlisle in November 2024. Whilst we are a not for profit regional charity, our aim is to make sufficient profit to ensure the longevity of the organisation and we believed that this opportunity would extend our Supported Living Service provision and broaden our asset holding and investment status supported by Natwest Bank. All profits achieved go into our reserves for the purpose of operating the organisation and to safeguard its future. The organisation does not have external shareholders and therefore there are no dividends to be paid out. Over the last year our revenue increased by £257.465 to £2.087.389 which is a 14% increase. We recorded a net profit of £52,671 which represents 2.52% of turnover (2024 £70,505 3.86%). We maintained our commitment to paying the National Living Wage rates set by the Living Wage Foundation as a minimum to all staff from day one of employment. As of April 2024, we saw increases in these rates of approximately 10% which, when added to the increase in the number of staff required to deliver support including the new service provision, meant that we saw an increase in our expenditure of £278,401 {15.8%}. We continue to be largely funded by contracts held with the ICB and local authorities of Cumberland Council and Westmorland and Furness Council and we believe these relationships are well established and we are seen as key partners with all parties. The current contract for the Provision of Day Opportunities for Adults for Cumberland Council was due to expire in April 2025 and works were completed to once again tender for the ongoing opportunity with new pricing (taking into account changes to the National Insurance obligations as set by the current Government}, we are pleased to announce that once again we have been successful and accepted for this framework which provides further security and stability for the organisation Eoing forwards. Annual Income M•r18 Mar19 Marx) M3r21 Mar22 Mar23 Maf24 Mar25 CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Profit / Loss 8 Mar 19 Mai Xi Mar 21 Mar 24 Mar 25 Pricin Chrysalis is committed to providing excellent value for money whilst delivering exceptional service. Naturally our detailed pricing is commercially sensitive and it would be inappropriate to publish details here, however our pricing remains competitive with similar providers. Our rates reflect the specialist support that we provide and includes an appropriate contribution to our overheads and our infrastructure. Each year the Senior Management Team review our pricing structure and provide appropriate recommendations to the Board of Trustees. Following consideration by the Trustees our rates are adjusted accordingly for any tender submissions. In recent years there has been an increased demand for providing flexible and individually tailored care packages. This trend is a positive development for Chrysalis as we can be dynamic in responding to identified need, however we must ensure that we have adequate flexibility with the required staffing and that legal and contractual obligations are met whilst maintaining excellent quality. CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Investment Powers and Poli Chrysalis operates in accordance with the powers detailed within its Memorandum and Articles of Association. Excess funds are invested with an emphasis on security rather than income-generation. The trustees, having regard to the liquidity requirements of operating the organisation, have authorised available funds to be invested in an interest-bearing deposit account. In the present economic environment, the trustees believe that interest bearing deposit accounts may not provide an interest rate which will exceed the retail price index, this is entirely consistent with our emphasis of "security over return5" Reserves Poli Our reserves policy has been developed to substantiate the level of reserves that should be maintained to ensure long-term financial sustainability. The term"Reserves" is used to describe the part of the organisations, income funds that are freely available for its operating purposes not subject to commitments, planned expenditure and spending limits. Reserves do not include endowment funds, restricted funds and designated funds. Having a reserves policy helps inform the way in which we as an organisation can manage our cash, liquid assets and debt. It will assist when planning and explaining our approach to stakeholders, it will contribute significantly in the Board's ability to balance the needs of current and future beneficiaries and provide stakeholders the assurance that the organisation is well managed and that it has, where appropriate, a strategy for building up reserves. Without a reserves policy. the Board cannot be confident that their reserves level matches the organisations needs at the time i.e. the organisation could be holding reserves that are too high or too low for its need5. The reserves policy has been set by conducting and reviewing the following: _ Discussions within the Senior Management Team, Treasurer and members of the Finance Sub Committee. Analysis of cash flow; Analysis of existing funds and reserves: Review of future income streams with an assessment of their reliability- Review of any committed expenditure- Examination of past trends- Examining the likely changes in the main source of income; Assessment of the risks facing the organisation including the dependence on the main source of income and the likely effect on the beneficiaries Forecasting future levels of income (considering the reliability of each source of income, and the prospects of new sources}- Forecasting expenditure in future years {considering any planned future project expenditure and or committed expenditure CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Reserves PdKy 2 - 4 fvt)rths Rolli￿ Staff Costs 2 - 4 M￿th$ Rdlllig Total Exw)dtire At the end of March 2025, the general unrestricted reserves including designated funds amounted to £551.805. This equated to 4.04 Months of rolling staff costs and 3.25 Months of rolling total expenditure. The general unrestricted funds excluding designated funds amounted to £312.173 this still allows 2.28 months coverage of staff costs however only covers 1.84 months of total expenditure rather than a full 2 months, both the SMT and Board of Trustees are comfortable as designated funds can be undesignated at any given time by the Board of Trustees. This reserves policy will be re-examined each year by the Finance Sub Committee at their January meeting following a suitable paper being submitted by the Senior Management Team. Any changes to the policy will be formally agreed by the Board of Trustees upon a suitable recommendation from the Finance Sub Committee. Structurei governance and management Princi le 2 - Leadershi Every charity is led by an effertive board that provide5 Strategic leadership in line with the charity s aims and values. The trustees, who are also the directors for the purpose of company law, and who Served during the year and up to the date of signature of the financial statements were- Mrs B H Earl Mrj R Fearon Mrs M A Drury MrDADodd Mrs Walker CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 In accordance with our Constitution Rule 25 Ray Fearon and Margaret Drury will retire at the Annual General Meeting and being eligible, seek re-election. The Chair has carried out an appraisal meeting with both Ray and Margaret and can confirm that their performance continues to be effective and they continue to demonstrate commitment to the charity. In accordance with best practice an annual meeting without the Chair is carried out and a separate meeting without the Chief Executive is also carried out. During the year the trustees instructed a Board Effectiveness Review to be carried out. This formal process was undertaken by Rob Cairn5 BA (Hons) FCIB MCMI. Rob is an experienced Chairperson with a demonstrated history within social enterprise, business planning and financial seNices. He is also Deputy Lieutenant of Cumbria. The report looked at the 7 areas covered by the Governance Code and we were awarded a mark of "approaching 4 out of 5" which was an excellent result. A number of recommendations were provided and these will be driven forward by the Chair of Trustees. The trustees and senior management team would like to thank Rob Cairns for the professional manner with which the review was conducted; his observations and recommendations will provide a great pathway for us in the coming year. Helen Earl Helen originally from Mayport has a background in education, originally teaching. Helen became Strategic Manager for Behaviour Support and her expertise centres around Communication Of Government Strategy. Helen is Chair of Allerdale Multiple Sclerosis Society, a school Governor and currently Chair Of Trustees for Chrysalis whilst forming part of the Governance, Remuneration, Finance, and Nominations committees. Helen's hobbies include craft work, sewing, reading, outdoor activities amongst many others. Ray Fearon Ray was born and bred in Wigton, he has spent his entire career in horticulture, first as a Horticultural Advisory Officer in the Ministry of Agriculture and then in commercial horticulture. Ray's son became a member of Chrysalis in 1990 when it was still known as Smile. Ray's hobbies include mountaineering, walking and singing with Dalston Male Voice Choir. Ray is currently part of the Marketing and Client Service Delivery committees. 10- CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Margaret Drury Margaret recently retired from her position as an inspector for the Care Quality Commission having worked in the Adult Social Care Directorate for over 15 years. Margaret has a Degree in Social Sciences and the Arts and has completed two Post Graduate Certificates in Dementia Care. Margaret's interests are reading, classical and choral music, she is an active member of her local Methodist church, and has recently taken up horse riding. Margaret is a member of the Client Service Delivery and Risk & Compliance committee. David Dodd David lives with his wife Carol in Brampton, he has a son and two step-daughters. David joined the Board in 2019 and is presently Chairman of the Finance Committee, the Risk & Compliance Committee, the Marketing Committee and the Remuneration Committee. He was formerly Chief Executive of a regional building society and has an MBA from the Open Business School. Stephen Walker Stephen. originally from the North East, has lived in Cumbria for 30 years. He recently retired from his work as a registered social worker. He was also involved in social work education. working with students out on placement. Stephen runs a monthly whisky club in Cockermouth and is heavily involved in the Campaign for Real Ale. Stephen is currently involved in the Finance, HR & Staffing, Remuneration and Clients Service Delivery committees. 11 |Nominationssub-committeedidnotmeetduringtheyear.|Nominationssub-committeedidnotmeetduringtheyear.|Nominationssub-committeedidnotmeetduringtheyear.|Nominationssub-committeedidnotmeetduringtheyear.|Nominationssub-committeedidnotmeetduringtheyear.|Nominationssub-committeedidnotmeetduringtheyear.| |---|---|---|---|---|---| |Nominations sub-committee did not meet during the year.|||||| |**Helen Earl**
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4(4)|||||| |Internal Audit Committee|1(1)|||1(1)|1(1)| CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Shelley Clarke- Finance Manager Shelley Clarke who has been in place since 2022. She has the following qualifications- Business Administration Level l & 2, AAT Level 4 AccountingTechnician and IBT2 Integrated Business Technology. Shelley has been able to develop the role of Finance Manager and has become an integral part of our strategic planning team. The job was widened from Finance Manager to Business & Finance Manager to recognise Shelley's contribution throughout the organisation. Emma Jackson- HR Manager Emma lives with herfamily in Wigton. She has been in post since 2023. Emma has previous experience working in an HR Department and recently became a Chartered Member of the Chartered Institute of Personnel Development. Julie Harrison - Operations Manager Julie joined Chrysalis in 2024 as Deputy Operations Manager and was appointed Operations Manager in 2025. Julie has previously worked for Carlisle Mencap, as OFSTED Registered Manager, the Brain Injury Rehabilitation Trust and Cumbria County Council. She has a BA in Education with QTS from St Martin's College and studied Mandarin at Peking University, Level 5 in Leadership and management and will be taking up Registered Manager status with CQC with us. 13- CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 A board of trustees who meet quarterly administer the charity and are responsible for overall management and control receiving reports from the Chief Executive Officer and associated governance sub-groups on a regular basis. The trustees. as a whole. and individually. accept collective responsibility for ensuring that we maintain a clear set of aims and that our strategies/tactics are designed to achieve these aims. The following sub-groups have been established: {a) Governance The main aims of this group are". To ensure appropriate governance To ensure that we have systems and procedures in place to monitor and control the relevant legal framework. To ensure that we have robust procedures and systems of internal control in place To monitor our compliance with the Charity Governance Code for larger charities. {bl Finance and General Purposes The main aims of this group are.. To control all matters relating to our finances To oversee all financial reporting and internal financial controls {c} Stsff & HR The main aims of this group are- To oversee our HR practices To oversee our remuneration policies {d) Marketing The main aims of this group are: To ensure that we have a Marketing Strategy To ensure that we have written procedures in place to cover our marketing activities To ensure that our public relations activities are fit-for-purpose {el Client Service Delivery The main aims of this group are". To provide an oversight into our current client services To examine potential future client services 14- CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 {fl Remuneration The main aims of this group are: To review the terms and condition5 of employment of the Senior Management Team To review the performance objectives of the Senior Management Team To review overall remuneration package of the Senior Management Team The overall objective of the Committee is to ensure that our Remuneration Policy attracts, retains and motivates the calibre of senior management required to fulfil our strategic objectives. {gl Risk & Compliance The main aims of this group are- To monitor and review our governance arrangements, risk management, internal controls and our risk management framework To ensure our compliance with charity law. company law and safeguarding procedures To regularly review our risk assessment process and determine the capability to identify and manage new risks To approve and review our current Risk Matrix, risk exposures and future risk strategy To approve and review our Risk Appetite, the overview of which is set out under Principle 4 {hl Internal Audit The main aims of this group are: To oversee the organisation's relationship with the external auditors. To assess the effectiveness of the external audit process. To review the external auditor's report prior to this being submitted to the Board of Trustees To review the Annual Report & Accounts and recommend these for approval, where appropriate, to the Board of Trustees. Princi le3-Inte The board arts with integrity, adopting values and creating a culture which help achieve the organisation s charitable purposes. The board is owore of the importance of the publids confidence and trust in charities, and trustees undertake their duties accordingly. Our Values-. We will olways treat people with dignity and respert. We will ensure that our clients hove choice and control over the service which we provide to them. We will always act with integrity. We will use both innovation and creativity to deliver our services. We will ensure that our clients have maximum involvement with the services that we provide. Trustees are aware of the need to act with integrity. An appraisal process is in place to emphasize the need to comply with our values. Trustees and the Senior Management Team are focused on delivering our seNices for the public benefit and they ensure that this remains at the heart of all our actions. The recent Board Effectiveness Review stated "The Board appeared to work collaboratively with all information being shared - it certainly appeared to act with integrity with an inclusive and open culture" 15- CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Related parties Trustees, families are able to access our services in line with usual referral process but on a normal arms-length basis. Any conflicts of interest would be declared and remedied in relation to trustee matters. Princi le 4 - Decision Makin Risk and Control The board makes sure that its decision-making processes are informed, rigorous and timely, and that effective delegotion, control ond risk-ossessment, and monogement systems are set up and monitored. Dele ation and Control Trustees are aware that they have delegated various actions to the Senior Management Team, however, trustees are also aware that they remain accountable for the actions of the organisation. An Organisation & Control Manual has been created which sets out those matters which are reserved for the Board of Trustees and those which have been delegated to management. Likewise, the main Board has delegated various matters to sub-committees. Each board sub-committee has comprehensive Terms of Reference and minutes are taken of all sub-committee meetings. The manual also refers to thejob descriptions for all senior positions and our strategy. The manual then provides details of the following area5: Trustees Finance Client Care Operations Human Resources Marketing Community Activities Supported Living Administration and Office Management Each of these areas is then cross-referenced to the Charity Commission Code of Good Governance to ensure that we remain compliant in all operational areas. Risk mana ement The Board of Trustees have identified the major risks to which the charity is exposed, and are confident they have established systems and procedures to manage those risks. The Risk & Compliance sub-committee reports to the main Board of Trustees. The committee examines new and emerging risks; it also measures how we are performing against current risks. All other sub-committees produce regular risk reports which are submitted to the Risk & Compliance Committee. A Risk Register is maintained showing all the risks identified by each sub-committee. Each risk is described and measured. A Recovery & Resolution Plan has been prepared setting out how the trustees and senior management team would respond in the event of any of the major risks overwhelming our mitigating actions. 16- CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Risk A etite Overview The Risk Appetite of Chrysalis {Cumbrial Ltd sets out the levels and types of risks which we are prepared to accept and tolerate. It must be acknowledged that it is neither possible nor desi rable to get rid of all risks, the purpose of our risk processes is to manage and mitigate risk. The management may include transferring that risk for instance by the use of insurance. Chrysalis operates within a low overall risk range. Our lowest risk appetite relates to the Operational area, specifically the safety and safeguarding of our clients. We also have a low risk appetite in areas of Financial operations. We aim to maintain sufficient liquid assets to cover at least two months of our total expenditure. In addition. we have developed a comprehensive Reserves Policy and we will maintain reserves within the levels stipulated by the Reserves Policy. We have a marginally higher risk appetite towards our Regulatory & Compliance responsibilities. As a small organisation we recognise that we have finite resources which means that senior managers will have responsibilities for both operational and compliance matters. In larger organisations these responsibilities would be split between different personnel. Likewise, ourtrustees are all non-paid volunteers which limits the time that we can expect them to devote to the Charity. We have a similar risk appetite towards Governance issues. We will apply'best practice" rules where possible and where these are compatible with our culture and values. We will use the'comply or explain" approach to the Charity Governance Code for Large Charities; where we do not comply with a requirement we will fully explain our rationale. We have a slightly higher risk appetite when considering External issues. We have to acknowledge that we may be reactive here rather than proactive. Some external issues will be more important to us and therefore our risk appetite will be less for these issues especially if these issues have an immediate detrimental effect on our operations. uali assurance The trustees can confirm that Chrysalis has continued to meet the standards required through all its, contractual obligations. Chrysalis is proud that it has continued to meet the national standards of the Investors In People {IIP) award. The annual review held this year demonstrated that we continued to meet the high standards required, we were delighted with this result. Princi le 5 - Board Effectiveness The board works as an effective team, using the appropriate balance of skills, experience, backgrounds and knowledge to make informed decisions. The trustees act as directors of the organisation. The Board of Trustees meets regularly to review performance against long-term Strategic and operational objective5. Details are contained in our Corporate Plan, Business Plan, Value Statement and the terms of reference of the various Board committees. 17- CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 In addition, the Board of Trustees has general responsibilities to ensure that we- Operate within our Memorandum and Articles of Association Comply with appropriate legislation, regulations and safeguarding provisions. Have proper accounting records which are established. maintained, documented and audited. Have effective systems of control which are established. maintained and documented. The Board of Trustees takes decisions on specific matters such as major investment and capital purchases. The Board also established and monitors the strategic objectives of the organisation. Decisions such as day-to-day expenditure are delegated to the Senior Management Team. The trustees meet without the Chief Executive Officer present at least once a year. All directors meet without the Chair present at least once a year. New trustees are recruited and appointed if they can show an understanding of the specialist nature of the support services provided by Chrysalis. New trustees are expected to attend induction training and involve themselves with the range of provisions through familiarising themselves with the workings of staff and individuals we support. The Charity Governance Code recommends that trustees are appointed for an agreed time, normally 9 years unless the Charity's constitution states otherwise. Our Memorandum does not stipulate an agreed time. However, our Memorandum does state that one third of our trustees shall retire in rotation each year and this is covered in page 3 of this report. We provide specific training sessions for the trustees. In addition, the trustees have taken a hands-on role when considering our compliance with the Charity Commission Governance Code. A formal appraisal process has been introduced for all trustees. Princi le6-E uali Diversi and Inclusion The boords approach to diversity SUPPOrts its effertiveness, leadership and decision making. The trustees, approach to diversity SUPPOrts our values. The term "diversity" includes the 9 protected characteristics contained within the Equality Act 2010 as well as different backgrounds, life experiences, career paths and diversity of thought. We welcome applications from all groups of society to join our board of trustees. A pro-active approach will be taken here to recruit new trustees. All effort will be expended to ensure that any obstacles to participation will be reduced and, if possible, overcome. We aim to ensure that everyone can assist with our charitable purposes. Every trustee has an annual appraisal with the Chair. In addition. the Chair is provided with an appraisal by the acting Vice Chair. All appraisals include a discussion on diversity to ensure that the matter is covered properly. Our recruitment process, including skills audits and recruitment adverts, complies with our diversity aspiration5. In addition, Employee Handbook and our Equality & Diversity Policy follow best practice in this area. 18- CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Relationship with related parties The trustees hold an Annual Strategy Day each year. This year a number of clients were invited to come along to the meeting to give their views. The clients were able to say what was good about the service as well as what could be improved. In addition, they were able to ask trustees about their roles. The trustees and the senior management team intend to use this as a platform to increase inclusion in the future. Princi le7-0 enness and Accountabili The board leads the organisation in being transparent and accountable. The charity is open in its work, unles5 there is good reosonfor it not to be. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular the trustees consider how planned activities will contribute to the aims and objectives they have set. As part of our annual strategy review the trustees consider and approve our Stakeholder Analysis. Following the annual review, we aim to develop strategies and tactics to ensure that we have the proper communications with our stakeholders both in terms of quality and quantity. Volunteers and students provide valuable additional support for our permanent staff in key activity areas. We had three active volunteers during the year in addition to the board. They supported with activities led by staff on a regular basis throughout the year giving many precious hours. We also have a regular contribution of gardening from a local volunteer for which we are very grateful. Trustees and the Senior Management Team are constantly looking for ways to increase engagement from clients, their families and other stakeholders. Dirertors Re ort The trustees have great pleasure in presenting their Directors, Report for the year ended 31 March 2025. We are delighted to report that the charity has expanded its services with a record number of staff being employed in the local area. During this period of expansion we have maintained our high standard of client service. Strate icRe ort The following sections for achievements and performance and financial review form the strategic report of the charity. Community Panels The new Cumberland Council Community Panels are working well. Chrysalis is part of the Fells and Solway Panel and during the year we successfully applied for funding to assist with our new Activity Development position. Our CEO is also a co-opted member of the panel. 19- CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Cumbria Integrated Care Board (ICB) A Memorandum of Understanding was agreed with the ICB. We continue to have concerns regarding funding by the ICB as the rates being paid by the ICB are not keeping pace with increases in the National Living Wage. The Chief Executive has maintained our links with Voluntary Organi5ation Network North East (VONNE) to assist us with our relationship with the ICB. The Chief Executive continues to represent Chrysalis and to provide our input which allows us to influence the decision makers and have an important seat at the table of the Leadership team within Keswick and Solway Icc. Statement of trustees, responsibilities The trustees, who are also the directors of Chrysalis (Cumbria) Limited for the purpose 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 Charities SORP; make judgements 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 keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that thefinancial statements comply with the Companies Act 2(KJ6. They 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. Auditor In accordance with the company's articles, a resolution proposing that Saint & Co Chartered Accountants be reappointed as auditor of the company will be put at a General Meeting. -20- CHRYSALIS (CUMBRIA) LIMITED TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Disclosure of information to auditor Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. The trustees, report was approved by the Board of Trustees. Mrs B H Earl trustee Date: 21- CHRYSALIS (CUMBRIA) LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHRYSALIS {CUMBRIA) LIMITED Opinion We have audited the financial statements of Chrysalis {Cumbria) Limited (the 'charity'} for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended: have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted ouraudit in accordance with International Standards on Auditing (UK) {ISAs IUK)} and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevantto our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authori5ed for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. CHRYSALIS (CUMBRIA) LIMITED INDEPENDENT AUDrroR'S REPORT (CONTINUED) TO THE MEMBERS OF CHRYSALIS {CUMBRIA) LIMITED Other information The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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 form of assurance conclusion thereon. Our responsibility is to read the other information and. in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whetherthis gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are reqUI￿d to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit: the information given in the trustees, report for the financial year for which the financial statements are prepared, which includes the directors, report prepared for the purposes of company law, is consistent with the financial statements- and the directors, report included within thetrustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material mi55tatements in the directors, report included within the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to reportto you if, in our opinion- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees, remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit; or the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the trustees, report and from the requirement to prepare a strategic report. -23- CHRYSALIS (CUMBRIA) LIMITED INDEPENDENT AUDrroR'S REPORT (CONTINUED) TO THE MEMBERS OF CHRYSALIS {CUMBRIA) LIMITED Responsibilities of trustees As explained more fully in the statement of trustees, responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assessing the charity's ability to continue as a going concern. disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. Outlined above. to detect material misstatement5 in respect of irregularities, including fraud. The extent to which the audit was considered capable of detecting irregularities including fraud Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; we identified the laws and regulations applicable to the company through discussions with directors and other management: we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence- and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. -24- CHRYSALIS (CUMBRIA) LIMITED INDEPENDENT AUDrroR'S REPORT (CONTINUED) TO THE MEMBERS OF CHRYSALIS {CUMBRIA) LIMITED We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; To address the risk of fraud through management bias and override of controls, we: performed analytical procedures to identify any unusual or unexpected relationships- tested journal entries to identify unusual transactions- assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias. and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulation5, we designed procedures which included, but were not limited to- agreeing financial statement disclosures to underlying supporting documentation; reading the minutes of meetings of those charged with governance; enquiring of management as to actual and potential litigation and claims: and reviewing correspondence with HMRC. relevant regulators and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. -25- CHRYSALIS (CUMBRIA) LIMITED INDEPENDENT AUDrroR'S REPORT (CONTINUED) TO THE MEMBERS OF CHRYSALIS {CUMBRIA) LIMITED Stuart Farrer (Senior Statutory Auditor) For and on behalf of Saint & Co Chartered Accountants, Statutory Auditor Sterling House Wavell Drive Rosehill Carlisle Cumbria CAI 2SA Date: CHRYSALIS (CUMBRIA) LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 Unrestrirted Restrirted funds funds 2025 2025 Total un￿$tritted Restricted funds funds 2024 2024 Total 2025 2024 Notes Income and endowments from: Donations and legacies Charitable activities Other trading activities 4.327 1,989.239 51.700 56.027 1,989.239 8.683 1.776,944 3.700 12,383 1,776,944 33,486 33,486 6.444 2.193 34,777 5.156 546 34,777 5,156 546 Investments Other income 2.193 Total income 2,035.689 51.700 2,087.389 1.826,106 3,700 1,829,806 Expenditure on: Raising funds Charitable activities 69,053 1,920,665 69,053 45,tKIo 1,965,665 66,875 1,689,349 66,875 1,689,349 Total expenditure 1,989,718 45,tMJo 2,034,718 1,756,224 1,756,224 Net income 45.971 6.700 52.671 69.882 3.700 73,582 Transfers between funds 10,072 (10,072) Net movement in funds li 56,043 {3,372) 52,671 69,882 3,700 73,582 Reconciliation of funds: Fund balances at l April 2024 495,762 11,295 507,057 425,880 7,595 433,475 Fund balances at 31 March 2025 551,805 7,923 559,728 495,762 11,295 507,057 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. -27- CHRYSALIS (CUMBRIA) LIMITED BALANCE SHEEr AS AT 31 MARCH 2025 2025 2024 Notes Fixed assets Tangible assets 14 472,556 258,355 Current assets Stocks Debtors 15 16 15,659 146.540 274.740 16,056 123,923 263,193 Cash at bank and in hand 436.939 403,172 Creditors: amounts falling due within one year 18 (99,1601 (83,2811 Net current assets 337,779 319,891 Total assets less current liabilities 810,335 578,246 Creditors: amounts falling due after more than one year 19 1228,107} {48,6891 Provision for other liabilities 20 (22,5tKJi {22,5001 Net assets 559,728 507,057 The funds of the charity Restricted income funds Unrestricted funds 22 7,923 551.805 11,295 495,762 23 559,728 507,057 The financial statements were approved by the trustees on Mrs B H Earl trustee Company registration number 05751140 (England and Wales) -28- CHRYSALIS (CUMBRIA) LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Notes Cash flows from operating activities Cash generated from operations 27 55,812 69,279 Investing activitie5 Purchase of tangible fixed assets Investment income received {237,1671 13,3571 5,156 Net cash (used in)/generated from investing activities 1230,723} 1,799 Financing activities Repayment of bank loans 186,458 (5,5811 Net cash generated from/(used in} financing activities 186,458 (5,581) Net increase in cash and cash equivalents 11,547 65,497 Cash and cash equivalents at beginning of year 263.193 197,696 Cash and cash equivalents at end of year 274,740 263,193 -29- CHRYSALIS (CUMBRIA) LIMITED NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Charity infomiation Chrysalis (Cumbria) Limited is a private company limited byguarantee incorporated in England and Wales. The registered office is Leaside, Longthwaite Road, Wigton, Cumbria, CA7 9JR, United Kingdom. 1.1 Accounting convention The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" {"FRS 102,1 and the Charities SORP "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 l January 20191. The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 1.2 Going concern At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Designated funds are unrestricted funds earmarked by the trustees for particular future projects or commitments. Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. 1.4 Income Income is recognised when the charity Is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably. and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. -30- CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continued) Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably. in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity- The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each actlVity- Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Freehold land and buildings IO% reducing balance on improvements- Iyo Straight line on original cost 33% straight line on computer equipment. 15-25Yo on other equipment 20% reducing balance Equipment Motor vehicles The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. 1.7 Impairment of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss {if any). Prior impairments are also reviewed for possible reversal at each reporting date. 31 CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continued) 1.8 Stocks Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and. where applicable. direct labour cost5 and those overheadsthat have been incurred in bringing the stocks to their present location and condition. 1.9 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.10 Financial instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to payforgoods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost Using the effective interest method. -32- CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continued) 1.11 Provisions Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event. it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value. the unwinding of the discount is recognised as a finance cost in net income/lexpenditurel in the period in which it arises. 1.12 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 1.13 Termination payments Redundancy and termination costs are recognised as an expense and a liability once the Charity is committed to terminate the employment of an employee or group of employees before their normal retirement date, or provide termination benefits as a result of an offer made in order to encourage voluntary redundancy. The Charity is considered to be committed only when it has a detailed formal plan for the termination and is without realistic possibility of withdrawal from the plan. Critical accounting 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. -33- CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Dc+nations and lera¢ies Total Unrestritted Restritted fund5 fund5 #eneral 2024 Total fvnds Èeneral 2025 fund5 2025 2025 2024 2024 Donations and gifts Grants 4,327 4,327 51,7tK) 7,683 7,683 4,7(Kl 51,7(K> 3,700 4,327 51,7(K> 56,027 8,683 3,700 12,383 Grants receivable for core aLlivitie5 Other grants receivable Forbe5 charitable foundatio 26,7 25,( 26,7tK) 25,OtK) 3,700 4,700 51,7 51.7tK) 3,700 4,700 CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Income from charitable activities Unrestricted Unrestricted funds funds 2025 2024 Social service contracts Social service contract and spot income Private contracis/direct payments NHS contracts 689,653 94,940 608,311 10,667 4,313 714,373 111,029 398,352 20,423 10,385 Centre activity income Outreach activities Supported living Social service contract and spot income Charitable rental income 577,495 3,860 522,382 1,989,239 1,776,944 Income from other trading artivities Unrestricted Unrestricted funds funds 2025 2024 Fundraising events Shop income 1,582 31,904 2,214 32,563 Other trading activities 33.486 34,777 Income from investments Unrestricted Unrestricted funds funds 2025 2024 Interest receivable 6,444 5,156 -35- CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Other income Unrestricted Unrestricted funds funds 2025 2024 Other income 2,193 546 Expenditure on raising funds Unrestricted Unrestricted funds funds 2025 2024 Fundraising and publicity Seeking donations, grants and legacies 1,305 682 Trading costs Operating charity shops Other trading activities Staff costs 17,330 27,837 22,581 17,434 24,969 23,790 67,748 66,193 Total costs 69,053 66,875 The shop is run as a social enterprise rather than a profit-making enterprise, providing an important learning and training facility for the members of Chrysalis. CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Expenditure on charitable activities Social Supported service living contracts Total Social Supported service living contracts Total 2025 2025 2025 2024 2024 2024 Direct costs Staff costs 756,377 13,599 4,972 26,398 16,970 19,480 14,444 571,170 1,327,547 13,599 4,972 26,398 17,084 19,480 14,544 766,351 13,501 4,997 16,744 14,924 15,857 11,429 379,517 1,145,868 13,501 4,997 16,744 15,081 15,857 11,429 Rent Rate5 & water Light & heat Repairs & maintenance Insurance Cleaning & refuse Staff travel & subsistence Equipment & maintenance Minibus expenses Bad debts General expenses Staff training & recruitment 114 157 2,122 22 2,144 1,323 34 1,357 4,786 4,565 2,570 6,073 1,368 6,154 4,565 2,570 6,501 3,784 2,679 16551 4,283 1,285 5,069 2,679 {655) 3,967 428 13161 37,891 7,309 15,017 1,178 1,293 39,069 8,602 15,017 21,568 6,059 18,853 280 21,848 7,138 18,853 Activity costs Outreach activities 1,079 932,573 575,673 1,508,246 901,697 382,036 1,283,733 Share of support and govemance costs (see note 10) Support 429,570 26.609 Governance 1,240 456.179 1,240 370.959 238 34.419 405,378 238 1,363.383 602.282 1,965.665 1.272,894 416,455 1,689,349 Analysis by fund Unrestricted funds Restricted funds 1,318,383 45,0(M) 602,282 1,920,665 45,000 1,272,894 416,455 1,689,349 1,363,383 602,282 1,965,665 1,272,894 416,455 1,689,349 -37- CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 10 Support costs allocated to activities 2025 2024 Staff costs 318,147 22,966 38,121 17,631 44,255 6,940 8,119 1,240 302,531 20,485 24,590 17,025 31,882 2,628 6,237 238 Depreciation Legal & professional fees Communications & IT General office costs Finance costs Sundry costs Governance costs 457,419 405,616 Analysed between: Social service contracts Supported living 430,810 26,609 371,197 34,419 457,419 405,616 11 Net movement in funds 2025 2024 Net movement in funds is stated after charging/lcrediting) Fees payable to the company's auditor for the audit of the company's financial statements Fees payable to the company's auditor for other services Depreciation of owned tangible fixed assets Operating lease payments recognised as an expense 4,115 6,547 22,966 21,393 3,250 6,305 20,485 21,393 12 Trustees None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year12024: none). One trustee had expenses reimbursed during the year by the charity of £338 for travel12024: £213 to one trustee for travel expenses). Trustees made aggregate total donations to the charity of £38812024: £213) without conditions. CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 13 Employees The average monthly number of employees during the year was: 2025 Number 2024 Number Centre staff 76 74 Employment costs 2025 2024 Wages and salaries Social security costs Other pension costs 1,526,036 112,193 30,046 1,355,328 91,396 25,465 1,668.275 1,472,189 There were no employees whose annual remuneration was more than £60,000. Remuneration of key management personnel Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity- The remuneration of key management personnel is as follows: 2025 2024 Aggregate compensation 198,236 183,564 -39- CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 14 Tangible fixed assets Freehold land and buildings Equlpment Motor Vehlcles Total Cost At l April 2024 Additions Disposals 399.149 211.655 187,110 25.512 {368) 39.340 625,599 237,167 {368} At 31 March 2025 610,804 212,254 39,340 862,398 Depreciation and impairment At l April 2024 Depreciation charged in the year Eliminated in respect of disposals 158,548 10,374 176.311 11,198 {368) 32.385 1,394 367,244 22,966 {368} At 31 March 2025 168,922 187,141 33,779 389,842 Carrying amount At 31 March 2025 441,882 25,113 5,561 472,556 At 31 March 2024 240,601 10,799 6,955 258,355 The freehold property and all fixed assets held atthese properties are pledged as securityforthe Natwest loan. See note 17 for details. 15 Stocks 2025 2024 Finished goods and goods for resale 15,659 16,056 16 Debtors 2025 2024 Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income 75,103 2,992 68,445 62,212 3,142 58,569 146,540 123,923 -40- CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 17 Loans and overdrafts 2025 2024 Bank loans 240,781 54,323 Payable within one year Payable after one year 12,674 228,107 5,634 48,689 Amounts included above which fall due after fwe years: Payable by instalments 164,183 23,819 The bank loans due to Natwest Bank PIC are secured by three legal charges over the freehold properties owned by the organisation including a fixed charge over all other fixed assets held at these properties. At 31 March 2025 the total amount secured was £240,781 {2024: £54,323). The liabilities falling due after five years comprises two long-term mortgages that expire in 2031 and 2039. For the first mortgage, repayments are made in equal monthly instalment5 and the interest rate charged was fixed for five years at 4.59Yo until January 2025, then 3.67% over base rate. For the second mortgage, repayments are made in equal monthly instalments and the interest rate charged is fixed for three years at 6.93Yo until November 2027, then 2.30% over base rate. 18 Creditors: amounts falling due within one year 2025 2024 Notes Bank loans Other taxation and social security Trade creditors Accruals and deferred income 17 12,674 24,783 22,651 39,052 5,634 21,155 19,090 37,402 99,160 83,281 19 Creditors: amounts falling due after more than one year 2025 2024 Notes Bank loans 17 228,107 48,689 41 CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 20 Provisions for liabilities 2025 2024 Building remedial works 22,500 22,500 Movements on provisions: Building remedial works At l April 2024 and 31 March 2025 22,500 The building works provision relates to the expected costs required for remedial works to leased premises at the end of the lease. The timing and amount are uncertain because it is not known whether or not the lease will be renewed at it's current expiry date in March 2026, and it is not known specifically what remedial works will be required. 21 Retirement benefit schemes 2025 2024 Defined contribution schemes Charge to profit or loss in respect of defined contribution schemes 30,046 25,465 The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. 22 Restricted funds The restricted funds of the charity comprise the unexpended balances of donation5 and grants held on trust subject to specific conditions by donors as to how they may be used. At l April 2024 Incoming resources Resources expended Transfers At 31 March 2025 Restricted grants Minibus fund 3.700 7,595 51,7(X) (45,OLN)I (10,0721 328 7,595 11,295 51,7(Kl (45,0(K)I (10,0721 7,923 -42- CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 22 Restricted funds (Continued) Previous year: At l April 2023 Incoming resources Resources expended Transfers At 31 March 2024 Restricted grants Minibus fund 3,700 3,700 7,595 7,595 7,595 3,700 11,295 Restricted grants are those amounts received for specific projects that have not been spent by the year end. Transfers to unrestricted funds represent the amount of restricted funds spent in the year on capital assets, and so the restriction on spending has been satisfied. The minibus fund is the amount raised for a new minibus. 23 Unrestricted funds The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. At l April 2024 Incoming resources Resources expended Transfers At 31 March 2025 Contingency fund Building fund Minibus depreciation fund New minibus fund TMP garden flooring fund Website fund General funds 208,457 13,356 819 208,457 13,356 655 (164} 7.(K)O 5,(I)O 5,(K)O 256,130 7,000 5,000 5,000 312,337 2,035,689 (1,989,554) 10,072 495.762 2,035,689 (1,989,718) 10,072 551,805 -43- CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 23 Unrestricted funds (Continued) Previous year: At l April 2023 Incoming resources Resources expended Transfers At 31 March 2024 Contingency fund Building fund Minibus depreciation fund New minibus fund TMP garden flooring fund Website fund General funds 208,457 13,356 1,023 208,457 13,356 819 7,000 5,000 5,000 256,130 (2041 7,000 5,000 5,000 (16,7961 203,044 1,826,106 (1,756,224) 425,880 1,826,106 (1,756,224) 495,762 The minibus depreciation fund was Set up to match the annual depreciation charges on the asset and an annual transfer is made from this fund to the general funds to cover that charge. A total of £17,OCKJ was transferred from general funds to designated funds in 2024 to go towards a new minibus, new garden flooring at The Meeting Place. and a new website. 24 Analysis of net assets between funds Unrestrirted funds 2025 Restricted funds 2025 Total 2025 At 31 March 2025: Tangible assets Current assets/(liabilities) Long term liabilities Provisions 472,556 329,856 1228,1071 {22,5(KJl 472,556 337,779 1228,1071 {22,5001 7,923 551,805 7,923 559,728 CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 24 Analysis of net assets between funds (Continued) Unrestrirted funds 2024 Restricted funds 2024 Total 2024 At 31 March 2024: Tangible assets Current assets/lliabilities) Long term liabilities Provisions 258,355 308.596 (48,6891 (22,5001 258,355 319,891 {48,6891 {22,5001 11,295 495,762 11,295 507,057 25 Operating lease commitments Lessee At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: 2025 2024 Within one year Between two and five years 20,500 2,333 16,726 13,500 22,833 30,226 Lessor The charity owns a property that is let out to a social landlord and used as supported living accommodation. The lease term 15 10 years from November 2024 and the lessee does not have an option to purchase the property at the expiry of the lease period. Rental income received during the year was £3,860 (2024: £nil). -45- CHRYSALIS (CUMBRIA) LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 26 Related party transactions Transactions with related parties A child of one of the trustees is a resident at Churchrigg. Income forthe year amounted to £52,02212024: £49,726), with £4,013 owed to the charity at 31 March 202512024: £3,657). 27 Cash generated from operations 2025 2024 Surplus for the year 52,671 73,582 Adjustments for: Investment income recognised in statement of financial activities Depreciation and impairment of tangible fixed assets 16,4441 22,966 (5,156) 20,485 Movements in working capital: Decrease/lincrease) in stocks {Increasel in debtors Increase in creditors 397 (22,6171 8,839 {4,473) {41,6651 26,506 Cash generated from operations 55,812 69,279 28 Analysis of changes in netfunds At l April 2024 Cash flows At 31 March 2025 Cash at bank and in hand 263,193 11,547 274,740 Loans falling due within one year Loans falling due after more than one year 15,634} 17,0401 {12,6741 (48,6891 1179,4181 1228,1071 208,870 1174,9111 33,959