## **Embercombe - a company limited by guarantee**
## **Annual Report**
## **Year Ended 31 March 2022**
Company Registration Number 05943952
Charity Registration Number 1116793
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|**Contents**|**Page**|
|---|---|
|Trustees Annual Report|2 - 4|
|Statement of Trustees Responsibilities|5|
|Independent Examiners Report|6 – 7|
|Statement of Financial Activities|8 – 9|
|Balance Sheet|10 – 11|
|Statement of Cash Flows|12|
|Notes to Financial Statements and Accounting Policies|13 – 25|
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## **TRUSTEES ANNUAL REPORT**
The Trustees, who are also directors for the purposes of company law, submit their report and the unaudited financial statements of the Trust for the year ended 31 March 2022. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts, and comply with the Company’s Memorandum and Articles of Association, the Charities Act 2011, 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), which was published on 16 July 2014. This report includes the Directors Report as required by Company Law.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
Registered Company number: 5943952 (England and Wales)
Registered Charity Number: 1116793
Registered Office:
Embercombe
Higher Ashton
Exeter
Devon
EX6 7QT
## **Trustees**
Charles Anderson (appointed July 2016)
Rosa Sommer Martin (appointed December 2017)
Jacqueline Davis (appointed November 2019)
Ruth Dobson (resigned September 2021)
Jon Rae (resigned May 2021)
## **Bankers**
The Co-Operative Bank
Skelmersdale
WN8 6WT
The objects of the company are to promote all purposes which are charitable under the laws of England and Wales.
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## **Governing Document**
Embercombe is a charitable company limited by guarantee, having no share capital, incorporated under the Companies Act and governed in accordance with the Memorandum and Articles of Association dated 22 September 2006 and amended October 2015. It is a registered charity.
## **Chairs Report**
The last two years have been quite a time; they were a period of stress, upheaval and change, and the emergence from COVID proved exceptionally challenging for us. The post COVID year was not expected to be as turbulent as it was, but the changes and uncertainty impacted the Trust significantly, with courses having to be moved, cancelled, and changed at short notice. The knock-on effect on costs was also significant, with courses running not fully booked and adjustments having to be made on site.
Significant changes within the board presented an opportunity to refocus our strategy and the opportunities to build a resilient and focused future in pursuit of our mission.
The work of Embercombe is now more relevant than ever. Our courses which follow the twin paths of inner and outer development to engage people in action and service, are needed in a world that is increasingly in crisis.
We are thankful to be in a position where we can make a difference; being part of a growing community of like-minded people with a new Board of Trustees to carry the Trust forward, we are working towards a sustainable and thriving future.
## **Reserves**
The Board has over the last year monitored the reserve position closely, keeping cash flow forecast and expenditure under constant review. Our reserve policy going forward is to increase and maintain reserves at 6 times the monthly operating cost of the organisation.
The Charity’s reserves position at the year-end was as follows:
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Reserve FY21-22 FY20-21
Unrestricted Funds - Reserves (116,506) 69,797
Fixed Assets 1,158,116 1,185,978
Restricted Funds 11,487 11,487
Endowment Funds 914,993 914,993
Total 1,968,090 2,182,255
Annual operating expenditure 459,852 395,439
Ratio of reserves to annual operating expenditure 0.24 0.18
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_(Endowment Funds – The endowment represents the gift of the freehold property to the charity together with expenditure by the previous trust on the property at Embercombe, prior to the company being formed)_
## **Small Company Provisions**
This report has been prepared in accordance with the small companies’ regime under the Companies Act 2006.
The annual report was Approved by the Trustees of the charity and signed on its behalf by:
**Ellie Tallett** – Chair of Trustees
Date – 26/05/2022
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## **Trustees Responsibilities**
Charity Law in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the situation of the charitable company’s financial activities during the year and of its financial position at the end of the year. In preparing those financial statements, the Trustees should follow best practice and:
- select suitable accounting policies and then apply them consistently.
- observe the methods and principles in the applicable Charities SORP.
- make judgements that are reasonable and prudent.
- state whether the 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 ongoing concern basis unless it is inappropriate to presume that the charity will continue its operations.
The Trustees are responsible for keeping accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.
Embercombe selects and appoints Trustees in line with current Charities Commission guidelines seeking to balance the expertise and professional experience of Board members.
In so far as the Trustees are aware:
There is no relevant accounts information of which the charitable company is unaware.
The Trustees have taken all steps that they ought to have taken, to make themselves aware of any relevant accounts information and to establish that the independent examiner is aware of that information.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s web site. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
**Ellie Tallett** – Chair of Trustees
Date – 26/05/2022
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## **Independent examiner's report on the accounts**
**Section A Independent Examiner’s Report Report to the** Embercombe **trustees/directors/ members of On accounts for the year** 31 March 2022 **ended Charity no.:** 1116793 **Company no.:** 05943952 **Set out on pages** 14-39 ) I report to the charity trustees on my examination of the accounts of the Company for the year ended **31 / 03 / 2022 Responsibilities and** As the charity’s trustees of the Company (who are also the directors of the **basis of report** company for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”). Having satisfied myself that the accounts of the Company are not required to be audited for this year under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (“the 2011 Act”). In carrying out my examination, I have followed the Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act.
**Independent** I have completed my examination. I confirm that no material matters have **examiner's statement** come to my attention (other than that disclosed below *) which gives me cause to believe that: • accounting records were not kept in accordance with section 386 of the Companies Act 2006; or • the accounts do not accord with such records; or • the accounts do not comply with relevant accounting requirements under section 396 of the Companies Act 2006 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination: or •the accounts have not been prepared in accordance with the Charities SORP (FRS102).
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I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report to enable a proper understanding of the accounts to be reached.
* _Please delete the words in the brackets if they do not apply._
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Date: 31/10/2022
Signed:
Name: Emma Charlotte
Relevant professional ACIE
qualification(s) or body
(if any):
Address: The Fox, 18 Castle Park, Hemyock, Devon EX15 3SA
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Embercombe
Statement of Financial
Activities
for the Year Ended 31
March 2022
Year Ended Year Ended
31-Mar-22 31-Mar-21
Unrestricted Restricted Endowme
Funds Funds nt Funds Total Funds Total Funds
Notes £ £ £ £ £
Income from:
Donations 2 7,370 7,370 7,855
Charitable Activities 3 227,012 227,012 324,149
Investment Income 4 17 17 0
Grant Income 5 11,289 11,289 115,088
Other
0 0
Total Incoming resources 245,688 0 0 245,688 447,092
Expenditure on
Raising Funds
Charitable activities 6/7 (467,995) (467,995) (395,439)
Separate Material Item
of Expense 8
Other 9 8,143 8,143 0
Total resources
expended (459,852) 0 0 (459,852) 395,439
Net
Incoming/(Outgoing)
Resources before
transfers 17 (214,165) 0 0 (214,165) 51,653
Gross transfers between
funds 0
Net
Incoming/(Outgoing)
Resources (214,165) 0 0 (214,165) 51,653
Reconciliation of Funds
Total funds brought
forward 1,255,775 11,487 914,993 2,182,255 2,130,602
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|**Total Funds Carried**
**Forward**||1,041,610|11,487|914,993|1,968,090|2,182,255|
|---|---|---|---|---|---|---|
||||||||
|**Note -**|||||||
|**Of the Total Funds**
**Carried Forward,**|||||||
|**the amount invested in**
**fixed assets is:**||1,158,116||914,993|2,073,109|2,100,971|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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Embercombe
Balance Sheet
As at 31 March 2022
Year Ended Year Ended
31-Mar-22 31-Mar-21
Unrestricted Restricted Endowment
Funds Funds Funds Total Funds Total Funds
Notes £ £ £ £ £
Fixed Assets
Tangible Assets 13 1,158,116 914,993 2,073,109 2,100,971
Current Assets
Stock 400 400 378
Debtors 14 10,481 10,481 79,766
Cash at bank 990 11,487 12,477 92,944
Total Current Assets 11,871 11,487 23,358 173,088
Current Liabilities
Creditors - amounts falling
due within one year 15 -98,555 0 -98,555 -61,803
Net Current Assets -86,684 11,487 -75,197 111,285
Total Assets less Current
Liabilities 1,071,432 11,487 914,993 1,997,912 2,212,256
Creditors - amounts falling
due after more than one
year -29,822 -29,822 -30,000
Net Assets 1,041,610 11,487 914,993 1,968,090 2,182,256
Funds
Unrestricted funds 1,041,610 1,255,776
Restricted funds 11,487 11,287
Endowment funds 914,993 914,993
Total Funds 17 1,968,090 2,182,256
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**Company Registration Number 05943952**
## **Charity Registration Number 1116793**
For the financial year ending March 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small Companies regime.
**Ellie Tallett** – Chair of Trustees
Date – 26/05/2022
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Embercombe
Statement of Cash Flows
At 31 March 2022
Year Ended Year Ended
31-Mar-22 31-Mar-21
£ £
Net cash provided by/(used in) operating
activities 23 (78,588) 32,836
Cash Flows from Investing Activities
Interest 0 0
Purchase of tangible fixed assets (1,879) 0
Net Proceeds from sale of fixed assets 0 0
Ex Gratia and Redundancy Payments 0 0
Sub total 0 0
Change in cash and cash equivalents in the year (80,466) 32,836
Cash and cash equivalents at the beginning of
the year 92,944 60,108
Cash and cash equivalents at the end of the year 12,477 92,944
0 0
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## **Notes to the Financial Statements**
## **Embercombe, For the Year Ended 31 March 2022**
## **Accounting Policies**
## **Basis of preparation**
The financial statements have been prepared under the historical cost convention with items being recognised at cost or transaction value unless otherwise stated in the notes to these accounts.
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP FRS 102 effective 1 January 2019), with FRS 102 and with the requirements of the Companies Act 2006 and the Charities Act 2011.
The Charity constitutes a policy benefit entity as defined by FRS 102.
Critical accounting estimates and areas of judgement
The items in the financial statements where the Trustees have had to make significant judgements and estimates include:
- The estimates of the useful economic lives of the tangible fixed assets used to determine the depreciation charge
- The basis on which support costs have been allocated across the various expenditure headings
- The accounting for the Linhay property which was valued at lower cost and not realisable value and supported by a professional validation
## **Assessment of on-going concern**
Proceeds from the sale of cottages, coupled with the minimisation of senior management overheads, leads the Trustees to conclude that a going concern assumption continues to be appropriate for the preparation of the financial statements.
## **Income**
All income is included in the Statement of Financial Activities when the Charity is legally entitled to the income, the amount can be quantified with reasonable accuracy, and it is probable that the income will be recovered.
**Expenditure** is accounted for on an accruals basis and has been classified under headings that integrate all costs related to the category. Expenditure comprises direct costs and support costs. Where costs cannot be directly attributed to headings, they have been allocated to activities on a basis consistent with the use of resources. Grants offered subject to conditions which have not been met at the year-end date are noted as a commitment but not accrued expenditure.
## **Support Costs**
Support costs represent indirect charitable expenditure and include governance costs. Support costs include salaries of office-based staff, facilities and premises costs, insurance and bank charges, information systems, communications, and other general services.
Support costs are allocated to other headings on a reasonable basis.
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## **Tangible fixed assets**
Depreciation is provided at the following annual rates to write off each asset over its estimated useful life as follows:
## **Land and Buildings**
_Straight line over 10 to 50 years on buildings only_
## **Plant and Machinery**
_20% on reducing balance_
## **Debtors**
Debtors are recognised at their settlement amount less any provision for non-recoverability.
## **Creditors and Provisions**
Creditors and provisions are recognised when there is an obligation which is likely to result in the transfer of economic resources and the amount of such transfer can be estimated reliably. The amount recognised is the amount which the charity anticipates it will pay to settle the obligation.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.
Restricted funds can only be used for restricted purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds are raised for restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
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2. Donations Year Ended 31/03/2022 Year Ended 31/03/2021
Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
£ £ £ £ £ £ £ £
Donations 7,370 0 0 7,370 7,855 0 0 7,855
3. Charitable Activities Year Ended 31/03/2022 Year Ended 31/03/2021
Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
£ £ £ £ £ £ £ £
Charitable Activities 227,012 0 0 227,012 324,149 0 0 324,149
4. Investment Income Year Ended 31/03/2022 Year Ended 31/03/2021
Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
£ £ £ £ £ £ £ £
Deposit Account Interest 17 0 0 17 0 0 0 0
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5. Separate Material Item of Income Year Ended 31/03/2022 Year Ended 31/03/2021
Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
£ £ £ £ £ £ £ £
Grant Income 11,289 0 0 11,289 115,088 0 0 115,088
Unrestricted fund income equates to proceeds of sale.
Endowment fund costs equate to acquisition cost of
assets less accumulated depreciation.
6. Expenditure on Charitable Activities Year Ended 31/03/2022 Year Ended 31/03/2021
Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
£ £ £ £ £ £ £ £
Programme costs - Facilitators, travel, food, cleaning,
and equipment 155,595 0 146,266 146,266
Facilities improvements, repairs, refurbishment, and
depreciation 63,960 0 55,657 55,657
Marketing and PR 5,647 0 8,813 8,813
Fixed Asset Impairment - EBC Settlement 0 0 0 0
Support Costs (Note 7) 242,793 0 184,703 184,703
467,995 0 0 0 395,439 0 0 395,439
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7. Support and Governance Costs Year Ended 31/03/2022 Year Ended 31/03/2021
Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
£ £ £ £ £ £ £ £
Wages and Social Security 178,357 0 134,020 134,020
Pension 4,147 0 1,897 1,897
Repairs, Renewals and Facility Improvements 130 0 0 0
Utilities 8,516 0 14,160 14,160
Other Costs 41,670 0 28,473 28,473
Accountancy – governance 6,987 0 4,000 4,000
Other Professional – governance 2,486 0 1,653 1,653
Reporting Accountant Fees – governance 500 0 500 500
242,793 0 0 0 184,703 0 0 184,703
8. Separate Material Item of Expense Year Ended 31/03/2022 Year Ended 31/03/2021
Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
£ £ £ £ £ £ £ £
Remedial costs on freehold properties prior to sale 0 0 0 0
0 0 0 0 0 0 0 0
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Year Year
9. Other Expenditure Ended Ended
31-Mar-
22 31-Mar-21
£ £
Adjustment to FY20-21 accounts (8,143) 0
0 0
(8,143) 0
10. Net Incoming/(Outgoing) Resources
Net resources are stated after Year Year
charging/(crediting): Ended Ended
31-Mar-
22 31-Mar-21
£ £
Depreciation - owned assets 29,741 31,353
Surplus on disposal of fixed assets 0 0
29,741 31,353
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11. Trustees' Remuneration and Benefits
No trustee received any remuneration or other
benefits in respect of their role as trustee (2021 :
Nil)
Travel expenses totalling NIL were reimbursed in
FY20 (NIL in 2019)
Year Year
12. Staff Costs Ended Ended
31-Mar-
22 31-Mar-21
£ £
Wages and Salaries 176,609 127,342
Social Security Costs 1,748 6,678
178,357 134,020
Pension conributions of £4,147 were paid in the
period under an auto enrolment scheme (2020 :
£1,399)
No bonuses costs were incurred in the period
(2020 : Nil)
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The average number of employees during the Year Year
year was as follows: Ended Ended
31-Mar-
22 31-Mar-21
Operations - Full Time Equivalent 4 4 9 P/T
No employee earned more than £60,000 in either
financial year.
Plant and
Land and Machine
13. Tangible Fixed Assets Buildings ry Totals
£ £ £
Cost
At 1 April 2021 2,305,097 68,067 2,373,164
Additions 1,779 100 1,879
Disposals 0 0 0
At 31 March 2022 2,306,876 68,167 2,375,043
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Depreciation
At 1 April 2021 217,741 54,452 272,193
Charge for year 26,918 2,823 29,741
Eliminated on disposal 0 0 0
At 31 March 2022 244,659 57,275 301,934
Net Book Value
At 31 March 2022 2,062,217 10,892 2,073,109
At 1 April 2021 2,087,356 13,615 2,100,971
14. Debtors: Amounts Falling Due Within One Year Year
Year Ended Ended
31-Mar-
22 31-Mar-21
£ £
Trade Debtors 10,481 3561
HMRC Debtor 76090
Other Debtors 0 115
10,481 79766
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15. Creditors: Amounts Falling Due Within One Year Year
Year Ended Ended
31-Mar-
22 31-Mar-21
£ £
Trade Creditors 8,642 3813
Taxation, Social Security and Pension 2,023 7592
VAT Creditor 32,753 9416
Other Creditors - Accruals and Deferred Income 55,137 40982
98,555 61,803
Year Year
16. Movement in deferred income account Ended Ended
31-Mar-
22 31-Mar-21
£ £
Income is deferred where customer payments have been received
for activities in future periods. The deferred income is released in the
Balance at the start of the reporting period 30,812 22,688 relevant period to be matched against costs incurred
Amounts added in current period 130,510 199,126
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Amounts released to income from previous
periods -108,185 -191,002
Balance at the end of the reporting period 53,137 30,812
Net Transfers At 31
At 1 April movement between March
17. Movement in Funds 2021 in funds funds 2022
£ £ £ £
Unrestricted funds
General Fund 1,255,775 (214,164) 0 1,041,611
Restricted Funds
Catalyst Bursary 11,271 0 0 11,271 To help those on a low income to participate on Catalyst
For transport to enable refugees from Exeter to come and volunteer
Start 216 0 0 216 at Embercombe
11,487 0 0 11,487
The endowment fund represents the gift of the freehold property to
the trust together with expenditure by the previous trust on the
Endowment Funds 914,993 0 0 914,993 property at Embercombe, prior to the company being formed.
Total Funds 2,182,255 (214,164) 0 1,968,091
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Resource
s
Incoming Expende Movemen
Resources d t in Funds
18. Net movement in funds, included in the above
are as follows: £ £ £
(459,852
Unrestricted funds 245,688 ) (214,164)
(459,852
Total Funds 245,688 ) (214,164)
Fixed Current Current
19. Analysis of net assets between funds Assets Assets Liabilities
Unrestricted 1,158,116 11,871 (128,376)
Restricted 11,487
Endowment 914,993
2,073,109 23,358 (128,376)
During the year to 31 March 2022, no fees
20. Related Party Transactions were paid to Trustees.
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The company is limited by guarantee. In the
event of the company being wound up, the
21. Share Capital and Members Liability liability of each member is limited to £1.
The Charity is under the effective control of
22. Control its Trustees.
23. Reconciliation of net movement in funds to Year Year
net cash flows from operating activities Ended Ended
31-Mar-
22 31-Mar-21
£ £
(214,165
Net movement in funds ) 51,854
Decrease/(Increase) in stock -22 -78
Decrease/(Increase) in debtors 69,285 -71,745
Increase/(Decrease) in creditors 36,573 21,452
Depreciation charge 29,741 31,353
(78,588) 32,836
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