The Fifth Trust (A company limited by guarantee) Trustees’ report and financial statements For the year ending 31 March 2021
Registered number: 07262103 | Charity number: 1136718
## Contents
- 3 About us
- 4 Trustees and administration
- 5 Welcome
- 6 Our aims and objectives
- 8 Response to Covid-19
- 10 Moving forward
- 12 A family’s view
- 13 Financial review
- 15 Structure, governance and management
- 15 Remuneration policy
- 16 Statement of trustees’ responsibilities
- 17 Independent auditor’s report
- 22 Financial statements
- 26 Notes to the financial statements
## The Fifth Trust (a company limited by guarantee)
The trustees present their annual report together with the audited financial statements of The Fifth Trust for the period 1 April 2020 to 31 March 2021. The annual report serves the purposes of both a trustees’ report and a directors’ report under company law. The trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company’s governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Group and the charity qualify as small under section 383 of the Companies Act 2006, the Group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 has been omitted.
Registered number: 07262103
Charity number: 1136718
## About us
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Barham Skills Centre
Barham
Vineyard Skills
Centre &
Garden
Centre Student work in the garden centre
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The Fifth Trust has been providing educational and creative activities, skills training and rewarding work experience for adults with learning disabilities since 1990.
Around 150 students from across East Kent attend our two skills centres near Canterbury, which operate five days a week. Here they take part in sessions including horticulture, catering, art and design, photography, pottery, music and digital media. Their creative work, including bird tables, nesting boxes, ceramics and greetings cards, is available to buy.
We also operate social enterprises – the Vineyard Garden Centre and Vineyard Café – to raise additional revenue on top of the student fees we receive from Kent County Council, other local authorities and privately. Our students play an active role in these enterprises, growing plant
stock for the garden centre and vegetables for the café kitchen; making delicious chutneys and jams, quiches and cakes; and helping to prepare meals and serve customers. They also work in the local community as members of our log delivery and garden maintenance teams.
## Our vision and mission
Our mission is to provide a safe, dignified and fulfilling way of life for people with learning disabilities, coaching each individual to achieve their potential.
Through enjoyable and productive work, students develop life skills as well as the confidence to make personal choices about their own lives.
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## Trustees and administration
Suzanne O’Brien, Chair
Board of trustees
Dr David Oliver, Vice Chair Neil Hope, Chair of Finance, Audit & Risk Committee Srinivas Annamaraju (appointed 17 November 2020) Daniel Cowley (appointed 19 April 2021) Paul Gannaway Rebecca Lisney Anita Robson
Susan Borthwick (resigned 14 July 2020) Lesley Marchant (resigned 14 July 2020) Eve Salomon (resigned 14 July 2020) Ann Sayle (resigned 14 July 2020)
## Senior management team
Key personnel
Nikki Marley, Chief Executive Officer (appointed Director
7 December 2020)
Mike Theoff, Operations & Care Manager Gareth Owen-Conway, Finance Manager Jane Ward, Communications & PR Manager
Maureen Wilson-Wright, Fundraiser
Company registered 07262103 number
Charity registered number 1136718
Registered office Elham Valley Vineyard, Breach, Barham, Canterbury. CT4 6LN
Company secretary Maureen Wilson-Wright
Independent auditor
## Kreston Reeves LLP
Chartered Accountants, Montague Place, Quayside, Chatham Maritime, Chatham. ME4 4QU
Banks National Westminster Bank plc Barclays Bank plc
## Welcome
We are delighted to share our 2020/21 annual report with you and the news that, despite the turmoil wrought by Covid-19 and the particularly harsh impact on the charity sector globally, The Fifth Trust is emerging from the pandemic in resilient shape.
By acting quickly to adapt the way we delivered our services from March 2020, and working closely with Kent County Council, we were able to retain 100% of our local authority funding and, crucially, continue to connect with and support our students.
Nikki Marley, CEO
In fact, in moving many of our sessions online in response to having to temporarily close our skills centres, we discovered an exciting opportunity to develop a complementary digital programme that not only protects service delivery in any future lockdowns, but also opens up all we offer to students who struggle physically or emotionally to attend in person, or who live outside our catchment area. We are confident that we are leading the learning disability field in online service provision and are now actively working to develop The Fifth Trust Online further.
Suzanne O’Brien, Chair
We reopened the Vineyard Garden Centre as soon as
Government rules allowed and ran a farm shop and takeaway to serve our local rural community in the periods we were unable to operate as a café. But clearly there was going to be a financial impact with periods of closure and people following the instruction to stay at home – plus the cancellation of important fundraising events like our hugely popular Christmas craft fair. However, thanks to the national furlough scheme, we have been able to keep on all our members of staff, and we are relieved that we have not needed to resort to any of the Government’s loan initiatives.
We close on a high note – two high notes to be precise. In February work got underway on the redevelopment of our skills centre in Barham following an exhaustive five-year fundraising campaign which had by then secured over £1.6 million, with all our efforts now focused on raising the last £40,000 to get us over the line. We are hugely grateful to the individual donors, foundations and charitable organisations who have turned a long-held dream into a reality.
And at year-end, staff returned from furlough to prepare to welcome students back on-site in April. With restrictions on capacity and Covid safety measures such as group bubbles in place, it was not exactly a return to normal, but certainly a big step in the right direction.
After a year like no other, we are more thankful than ever for all the support we receive – from our staff, our trustees, our students and their families, our volunteers, our customers, without whom we would not be in the strong position we are today.
## Nikki Marley, CEO
Solicitors Robson & Co 147 High St, Hythe. CT21 5JN
Suzanne O’Brien, Chair
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## Our aims and objectives
To improve the quality and range of person-centred training and work experience for our students
To stay informed of changes in social policy, local health and social care structures and to implement these changes in order to increase opportunities for students
To maximise income and develop reserve funds in order to create a secure financial future for the work of the charity long term
_**“I work in the cafe. I like serving customers and making chocolate cake.”**_ **Leah**
To encourage and motivate our staff and to give them every opportunity to improve their skills and qualifications in line with the changing needs of students and the regulatory environment
_**“It’s amazing to make things. I am smiling and happy.”**_ **Robert**
## Strategy for achieving aims and objectives
_**“I am making a birdbox. It takes a long time. I love woodwork.”**_ **Sam**
In 2019, The Fifth Trust published a three-year strategic plan, setting out for the first time a roadmap for developing and expanding the services we offer in support of adults with learning disabilities, their families and carers.
Faced with the Covid-19 pandemic, we developed an exceptional plan for 2020-21 to guide us through unprecedented times. Work has since started on an ambitious five-year strategic plan for the period 2021-26.
## Public benefit
The charity’s objective is to support adults with learning disabilities, and this is a benefit to them, to their families and to the wider community. In setting objectives and planning activities, the trustees have given due consideration to general guidance relating to public benefit published by the Charity Commission.
_**“I help take things to customers’ cars and lift them in. I like strimming and gardening and being inside potting up when it’s raining.”**_
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Mark
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## Response to Covid-19
## Student services
On 24 March 2020, all facilities at The Fifth Trust were closed to students, staff and customers in line with Government lockdown restrictions. All but a skeleton staff were furloughed under the Coronavirus Job Retention Scheme (CJRS).
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850
online sessions delivered
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9 different sessions available
120 students logged on
85%
positive student feedback
## Social enterprises
The Vineyard Garden Centre was able to reopen (on limited hours) in time for the late May 2020 bank holiday, with social distancing and safety guidelines in place. Log deliveries were able to continue, without student involvement.
The café became a takeaway and farm shop selling local produce, and when restrictions were eased in July we began serving food again to outside tables, and took part in the Eat Out to Help Out Government scheme. When Kent was placed into Tier 4 in November (followed by the national lockdown), all café operations were again shut down, although the garden centre was able to continue to trade as a classified essential service, returning to seven-day opening in March 2021. In line with lockdown easing, we reintroduced the food takeaway service on 29 March and started serving to outside tables again on 12 April. We were able to reopen the café fully in May.
Student service provision was transferred online. It took us less than three days to set up The Fifth Trust Online and within a fortnight of the closure a full weekly programme of nine different sessions led by instructors and volunteers was available on Zoom. We also offered the service to other adult learning disability service providers.
The online service was accessed by 80 per cent of our students. It offered routine and a chance to connect with staff and fellow students at a time when many of them were anxious and fearful, and was welcome respite for parents and carers.
Alongside The Fifth Trust Online, we kept in fortnightly telephone contact with every single student and their family. By doing so, we were able to identify three students who were struggling to cope and put plans in place to help them deal with the situation. Staff also hand-delivered activity packs including seeds and compost for a popular grow your own sunflower competition.
Following risk assessments – including evaluating room capacities, staff training needs, the use of student bubbles, social distancing measures and PPE requirements – and after consultation with Kent County Council and other relevant bodies, we reopened to students at 50% capacity in September 2020. Online provision continued with the same extensive timetable. Students were unable to return after the Christmas break because the third national lockdown came into force. Following the announcement on 22 February 2021 of the Government’s roadmap for lifting lockdown, we made plans for staff to come off furlough at the end of March to prepare both sites for students’ return, in Covid-secure bubbles, on 6 April.
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## Moving forward
Despite the unforeseen challenges of the coronavirus pandemic, the Trust was in a strong position to resume on-site service provision as soon as Government rules allowed and is progressing with exciting development plans.
## Skills centre at Barham
Over five years in the planning, the redevelopment of our skills centre at Barham sees us building a strong foundation for the future.
Thirty-year-old huts are being replaced with three energy-efficient buildings designed around the needs of our students in terms of accessibility and a positive learning environment.
We took the decision to develop all three phases of the development at once, with work starting in February 2021. This has provided some savings to the overall build cost, which is currently estimated at just over £1.9m including VAT. We have set up a Group VAT registration covering The Fifth Trust and our social enterprise subsidiaries and this should allow us to claim back input VAT in the region of £250,000, reducing the net build cost to approximately £1.65m.
As at financial year-end, we have received donations and pledges of approximately £1.61m, leaving just £40,000 to raise, which is a fantastic effort. We would like to thank all the charitable bodies, companies and generous individuals who have supported us so far as we focus our fundraising attention on getting over the line.
The projected completion date is February 2022, at which point our current students will benefit from a spacious new amenities hub, art studio and media classroom. In addition, the redevelopment will give us the additional, purpose-built capacity to develop two services:
Support for learning disabled adults with profound physical conditions
- Life skills programme for students transitioning to independent living
## The Fifth Trust Online
Following the high take-up and positive feedback received for our online service throughout the pandemic, we are actively seeking funding to develop a permanent online social and learning platform.
Our aim is that The Fifth Trust Online will be a complementary offering to our on-site services. Digital provision will open up all we offer to people who find it too hard physically or emotionally to join our community in person, and to those who live outside our catchment area. It will also mean that should we face lockdowns in the future, we will be able to instantly transfer services online.
We are investigating the possibility of offering subscription model social skills packages and formal educational and training courses to local authorities and other adult learning disability service providers, and believe we have a great opportunity to develop a valuable new income stream.
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## A family’s view
_Mickey, 24, has been attending The Fifth Trust for seven years. His dad Stuart explains what the charity means to them._
Mickey greatly enjoys all aspects that the day centre has to offer and has taken part in a wide variety of activities including woodwork, art and design and working in the garden centre and café.
Mickey was diagnosed as severely autistic with a speech and social communication disorder during primary school. He currently has a general academic age of early years primary/infant school capability.
My wife and I had a little knowledge of The Fifth Trust as we have links with other local charities supporting areas of disability and high care needs, and so we decided to take a closer look for ourselves to see what was on offer. It’s true to say it was love at first sight.
Since Mickey started to attend, he has progressed and developed immeasurably. He has increased in confidence and sociability and has developed friendships with the support team and fellow
students. As the number of days he is able to attend has increased, we have been able to introduce some independent travel to and from the Vineyard by taxi, and he really likes the clear line between his day/work life and his home and family life.
During the pandemic, the day centre having to close caused Mickey great anxiety and uncertainty as routine and consistency is very important to him and he is delighted, you could even say ecstatic, to be able to start going back in. (I’m trying not to take that one personally!).
## Financial review
## Reserves
## Results
The Fifth Trust had a net surplus of income over expenditure (including net investment gains) in the year of £395,454 (2019 £142,028) broken down as follows:
The trustees have adopted a policy in line with the Charity Commission recommendations. The policy takes into account unexpected variances in income and expenditure to ensure that the charity is able to meet its financial obligations and to maintain its undertakings in the short term. The trustees have set the figure for liquid unrestricted reserves at a minimum of £250,000 (2020 - £200,000) (to cover three months’ staff costs, building reserve and other potential costs in the event of a winding up).
£ Charity’s core care services 56,247 Net gains on investments 5,453 Garden Centre 7,538 Café 30,181 Donations – Restricted 153,438 Donations – Unrestricted 142,597 _________ TOTAL 395,454
The total of unrestricted funds held in net current assets is £494,443 of which £4,079 is designated funds, leaving £490,364. Unrestricted cash at bank and in hand is £420,522. Restricted reserves as at 31 March 2021 were £453,410, all of which is held as cash at bank. Of this sum £421,910 relates to donations for the new skills centre at Barham (net of expenditure paid out to date), with the balance relating to various other projects.
Donations of £300,226 were received during the year. £157,629 was restricted of which £146,208 related to the new skill centre development, £6,421 for media equipment and £5,000 for online sessions. During the year expenditure incurred on restricted related donations was £71,481 of which £67,290 was capitalised and therefore not included within the net surplus referred to above.
## Principal funding sources
The Fifth Trust’s revenue is generated from three main sources: day care fees (primarily from a contract with Kent County Council); income from our social enterprises, the café and the garden centre providing our training and work experience activities
for students; and charitable grants and donations. Although total revenues of £1,599,000 were similar to last year, the make-up of this year’s revenues has been significantly impacted by Covid-19. Day care fees held up well due to KCC continuing to pay fees as we went online to provide services. Café and garden centre revenue was down 59% and 23% respectively. However, this was offset by Government Covid grants and furlough payments of £184,000 and an increase in unrestricted donations of £141,000 (2020 - £6,000).
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## Financial Key Performance Indicators (KPIs)
The trustees receive quarterly management accounts covering each of the three main activities in the Group: day care services, the café and garden centre. These accounts show the quarterly performance and year to date performance of each operation with comparisons to budgets which are set at the beginning of the year. These results are accompanied by a commentary on the performances highlighting any main variances and any issues that have arisen. In addition, a range of key performance indicators are included in the reports such as gross operating margins and staff numbers.
## Going concern
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
The Trust has of course been significantly affected by the Covid-19 crisis over the last 12 months with on-site student activities being suspended and the garden centre and café being closed to customers during a number of lockdowns. However, the swift introduction of online student activities has enabled most student income to be maintained and the charity was able to take advantage of the Government furlough scheme to support those staff that were not required during the lockdowns. As we come out of the Covid-19 crisis through the rest of 2021 and restrictions are slowly relaxed the charity’s activities are now getting back to normal. As at 31 March 2021 the charity
has in excess of £400k of unrestricted cash reserves to support the charity’s ongoing activities. The charity is currently forecasting a small excess of income over expenditure for the financial year ended 31 March 2022.
## Principal risks and uncertainties
The major risk for the charity is the loss of income needed to fund its ongoing day care activities. The trustees and senior management keep abreast of changes in Government policy on day care fees and day care regulations to ensure that the charity complies with all requirements and implements any necessary changes as they arise in order to secure its revenues from that source. The charity has been able to maintain most of its student fee income during the lockdown periods and is grateful for the support of its funders, particularly Kent County Council.
Trustees and the management team revisit the charity’s business strategy annually, at a minimum. Income from social enterprise activities is monitored on a departmental basis, highlighting potential areas of weakness to allow early remedial action where required. Major capital projects, such as the new skills centre, are not undertaken until adequate funding is in place. Trustees and management hold regular finance, audit and risk committee meetings which report back to the quarterly trustee board meetings.
## Structure, governance and management
The Fifth Trust is registered as a charitable company limited by guarantee and was set up by a trust deed. The oversight of the Group and the charity is the responsibility of the trustees, who are all elected under the terms of the Articles of Association. Our trustees play a pivotal role in setting the strategic direction of the Trust and supporting and guiding the senior management team.
In setting the Trust’s aims and objectives, the trustees give due consideration to general guidance published by the Charity Commission relating to public benefit.
Board meetings are generally held quarterly with an annual ‘away day’ to review strategy. During the pandemic, meetings have been conducted remotely. Smaller working groups of trustees and managers focused on particular areas and projects also meet regularly. A stakeholders’ engagement panel has been established to provide advice and feedback to the board.
The Trust has a conflicts of interest policy and any potential conflicts are identified at all meetings. Safeguarding is a priority and is on the agenda at every board meeting. Our safeguarding policy is reviewed annually. In line with the Charity Commission’s guidelines, all staff, trustees and volunteers undergo safeguarding training and all are DBS checked.
The board of trustees is responsible for selecting and recruiting suitable trustees to office. The trustees strive to ensure a good representation of independent members with the necessary skills and experience to strengthen the board. Trustees serve on an unpaid voluntary basis.
## Remuneration policy
At The Fifth Trust, our pay structure is critical in maintaining motivation and ensuring the retention and improving the performance of staff, as well as the senior managers who provide the leadership required to meet the Trust’s objectives. The annual increase is recommended by the CEO and approved by the trustees.
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## Statement of trustees’ responsibilities
The trustees (who are also the directors of the charity for the purposes of company law) are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year. Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently
- observe the methods and principles of the Charities SORP (FRS 102)
- make judgments and accounting estimates that are reasonable and prudent
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Group and the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## Disclosure of information to auditor
## Auditor
The auditor, Kreston Reeves LLP, has indicated his willingness to continue in office. The designated trustees will propose a motion reappointing the auditor at a meeting of the trustees.
Each of the persons who are trustees at the time when this trustees’ report is approved has confirmed that:
- so far as that trustee is aware, there is no relevant audit information of which the charitable Group’s auditor is unaware,
Approved by order of the members of the board of trustees and signed on their behalf by:
and
- that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the charitable group’s auditor is aware of that information.
Suzanne O’Brien Chairperson
Date: 26 October 2021
## Independent auditor’s report to the members of The Fifth Trust
(UK) (ISAs (UK)) 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’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.
## Opinion
We have audited the financial statements of The Fifth Trust (the ‘parent charitable company’) and its subsidiaries (the ‘Group’) for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the consolidated statement of cash flows and the related notes, including a summary of 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).
## 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.
In our opinion the financial statements:
- give a true and fair view of the state of the Group’s and of the parent charitable company’s affairs as at 31 March 2021 and of the Group’s incoming resources and application of resources, including its income and expenditure for the year then ended;
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 Group’s or the parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
- 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 and the Charities Act 2011.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## Basis for opinion
We conducted our audit in accordance with International Standards on Auditing
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## Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the trustees’ report has been prepared in accordance with applicable legal requirements
## Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company 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.
## Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes 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 Group’s and the parent charitable company’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 Group or the parent 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 (UK) 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 misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is
## detailed below:
## _Capability of the audit in detecting irregularities, including fraud_
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.
Based on our understanding of the charity and sector, and through discussion with the trustees and other management (as required by auditing standards), we identified that the principal risks of non compliance with laws and regulations related to health and safety, anti bribery and employment law. We considered the extent to
which non compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates and judgmental areas of the financial statements. Audit procedures performed by the engagement team included:
- Discussions with management and assessment of known or suspected instances of non compliance with laws and regulations and fraud;
- Challenging assumptions and
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- judgements made by management in its significant accounting estimates;
- Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud;
- Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business;
- Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions;
- Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.
There are inherent limitations in the audit procedures described above and the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable
company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
• Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of my auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an
opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## 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, and to the charitable company’s trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.
## Kreston Reeves LLP
Chartered Accountants Statutory Auditor Chatham Maritime
Date: 5 November 2021
20
21
Consolidated statement of financial activities (incorporating income and expenditure account) For the year ended 31 March 2021
## THE FIFTH TRUST
(A company limited by guarantee)
|Note
Income from:
Donations and
legacies
3
Charitable activities
4
Investments
5|Unrestricted
funds
2021
Restricted
funds
2021
Total
funds
2021
Total
funds
2020
£
£
£
£
142,597
157,629
300,226
160,244
1,299,228
-
1,299,228
1,427,139
41
-
41
70|
|---|---|
|Total income|1,441,866
157,629
1,599,495
1,587,453|
|Expenditure on:
Raising funds
6
Charitable activities
7|8,010
3,795
11,805
10,250
1,197,293
396
1,197,689
1,438,137|
|Total expenditure|1,205,303
4,191
1,209,494
1,448,387|
|Net income before
net gains on
investments
Net gains on
investments
Net Income
Transfers between
funds
17|236,563
153,438
390,001
139,066
5,453
-
5,453
43|
||242,016
153,438
395,454
139,109
10,905
(10,905)
-
-|
|Net movement in
funds|252,921
142,533
395,454
139,109|
|Reconciliation of
funds
Total funds brought
forward
Net movement in
funds|820,214
310,877
1,131,091
991,982
252,921
142,533
395,454
139,109|
|Total funds carried
forward|1,073,135
453,410
1,526,545
1,131,091|
## THE FIFTH TRUST
(A company limited by guarantee) Registered number: 07262103
Consolidated balance sheet As at 31 March 2021
|Fixed assets
Tangible assets
Current assets
Stocks
Debtors
Investments
Cash at bank and in
hand
Creditors: amounts
falling due within
one year
Net current assets
Total net assets|Note
11
13
14
15
16|98,727
115,712
5,500
890,694|2021
£
578,692|101,432
109,508
47
537,967|2020
£
456,919|
|---|---|---|---|---|---|
||||578,692
947,853||456,919
674,172|
|||1,110,633
(162,780)||748,954
(74,782)||
|||||||
||||1,526,545||1,131,091|
|Charity funds
Restricted funds
Unrestricted funds|17
17||453,410
1,073,135||310,877
820,214|
|Total funds|||1,526,545||1,131,091|
The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the trustees and signed on their behalf by:
Neil Hope
Chair of Finance, Audit & Risk Committee
Date: 26 October 2021
The Consolidated statement of financial activities includes all gains and losses recognised in the year. The notes on pages 26 to 42 form part of these financial statements.
The notes on pages 26 to 42 form part of these financial statements.
22
23
## THE FIFTH TRUST
(A company limited by guarantee) Registered number: 07262103
||||||
|---|---|---|---|---|
|(A company limited by guarantee)
Registered number: 07262103
Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Stocks
13
Debtors
14
Investments
15
Cash at bank and in
hand
Creditors: amounts
falling due within
one year
16
Net current assets|40,446
93,008
5,500
800,992|Charity balance sheet
As at 31 March 2021
2021
£
525,316
57,443
582,759
40,808
95,514
47
488,718
625,087
(62,197)
794,175||2020
£
389,933
57,423|
|||582,759
794,175||447,356
562,890|
||939,946
(145,771)||625,087
(62,197)||
||||||
|Total net assets||1,376,934||1,010,246|
|Charity funds
Restricted funds
17
Unrestricted funds
17||453,410
923,524||310,877
699,369|
|Total funds||1,376,934||1,010,246|
Consolidated statement of cash flows For the year ended 31 March 2021
## THE FIFTH TRUST
(A company limited by guarantee)
|Note
Cash fows from operating activities
Net cash used in operating activities
20
Cash fows from investing activities
Dividends, interest and rents from investments
Proceeds from the sale of tangible fxed assets
Purchase of tangible fxed assets
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
21|2021
2020
£
£
526,204
221,445|
|---|---|
||41
70
-
7,598
(173,518)
(85,713)|
||(173,477)
(78,045)|
||352,727
143,400
537,967
394,567|
||890,694
537,967|
The notes on pages 26 to 42 form part of these financial statements
The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the trustees and signed on their behalf by:
Neil Hope Chair of Finance, Audit & Risk Committee
Date: 26 October 2021
The notes on pages 26 to 42 form part of these financial statements.
24
25
Notes to the financial statements For the year ended 31 March 2021
## THE FIFTH TRUST
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2021
## THE FIFTH TRUST
(A company limited by guarantee)
## **2. Accounting policies (continued)**
## **General information**
1.
The Fifth Trust is a charity registered in England. The charity’s registered address is Elham Valley Vineyard, Breach, Barham, Canterbury, CT4 6LN.
## 2. **Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Fifth Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.
The charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.
## **Provision of services**
Revenue from the provision of services is recognised when all of the following conditions are satisfied:
- the company has transferred the significant risks and rewards of ownership to the buyer;
- • the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
- the amount of revenue can be measured reliably;
- it is probable that the company will receive the consideration due under the transaction; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.
## **2.4 Expenditure**
**E** xpenditure 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 activity. 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 allocated on the portion of the asset’s use.
## **2.2 Going concern**
Whilst the impact of the COVID-19 pandemic has been assessed by the trustees, so far as is reasonably possible, due to its unprecedented impact on the worldwide economy it is difficult to evaluate with any certainty the potential outcomes on the charity’s future activities. However, taking into consideration the charity’s level of reserves, the trustees believe that the charity will be able to continue in operational existence for the foreseeable future.
## **2.3 Revenue**
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group’s objectives, as well as any associated support costs.
## **2.5 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.6 Tangible fixed assets and depreciation**
Tangible fixed assets are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
26
27
Notes to the financial statements For the year ended 31 March 2021
## THE FIFTH TRUST
Notes to the financial statements For the year ended 31 March 2021
(A company limited by guarantee)
## **2. Accounting policies (continued)**
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following bases:
Buildings 4% straight line Tools and equipment 25% reducing balance Motor vehicles 25% reducing balance Assets under construction Not depreciated
## THE FIFTH TRUST
(A company limited by guarantee)
## **2. Accounting policies (continued)**
## **2.11 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.
## **2.7 Investments**
## **2.12 Financial instruments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.
Investments in subsidiaries are valued at cost less provision for impairment.
## **2.8 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
## **2.9 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.10 Cash at bank and in hand**
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.13 Operating leases**
Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term.
## **2.14 Pensions**
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
## **2.15 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
28
29
Notes to the financial statements For the year ended 31 March 2021
## THE FIFTH TRUST
Notes to the financial statements For the year ended 31 March 2021
(A company limited by guarantee)
## **2. Accounting policies (continued)**
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
## THE FIFTH TRUST
(A company limited by guarantee)
## **3. Income from donations and legacies**
|Donations
Donations|Unrestricted
funds
2021
£
Restricted
funds
2021
£
Total funds
2021
£
142,597
157,629
300,226|
|---|---|
||Unrestricted funds
2020
£
Restricted funds
2020
£
Total funds
2020
£
47,393
112,851
160,244|
## **4. Income from charitable activities**
|**5.**
**Investment income**
Income generated from students
Sales of products and work undertaken
Government Grants
Income generated from students
Sales of products and work undertaken
Bank interest
Bank interest|Unrestricted
funds
2021
£
Total funds
2021
£
678,623
678,623
435,653
435,653
184,952
184,952|
|---|---|
||1,299,228
1,299,228|
||Unrestricted
funds
2020
£
Total funds
2020
£
772,694
772,694
654,445
654,445|
||1,427,139
1,427,139|
||Unrestricted
funds
2021
£
Total funds
2021
£
41
41|
||Unrestricted
funds
2020
£
Total funds
2020
£
70
70|
30
31
Notes to the financial statements For the year ended 31 March 2021
(A company limited by guarantee)
## THE FIFTH TRUST
Notes to the financial statements For the year ended 31 March 2021
(A company limited by guarantee)
## **6. Expenditure on raising funds**
|**xpenditure on raising funds**||
|---|---|
|Fundraising expenses
Fundraising expenses|Unrestricted
funds
2021
£
Restricted
funds
2021
£
Total funds
2021
£
8,010
3,795
11,805|
||Unrestricted funds
2020
£
Restricted funds
2020
£
Total funds
2020
£
2,250
8,000
10,250|
## **7. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|Charitable activities
Charitable activities|Unrestricted
funds
2021
£
Restricted
funds
2021
£
Total funds
2021
£
1,197,293
396
1,197,689|
|---|---|
||Unrestricted funds
2020
£
Restricted funds
2020
£
Total funds
2020
£
1,427,921
10,216
1,438,137|
## **8. Analysis of charitable expenditure by activities**
|Charitable activities
Charitable activities|Activities
undertaken
directly
2021
£
Total funds
2021
£
1,197,689
1,197,689|
|---|---|
||Activities
undertaken
directly
2020
£
Total funds
2020
£
1,438,137
1,438,137|
## THE FIFTH TRUST
## **8. Analysis of charitable expenditure by activities (continued)**
## **Analysis of direct costs**
|**nalysis of direct costs**|||||
|---|---|---|---|---|
||||Total funds|Total funds|
||||2021|2020|
||||£|£|
|Staf costs|||718,307|801,053|
|Depreciation|||51,745|55,059|
|Costs of sales|||246,178|324,416|
|Students refreshments|||51|4,337|
|Cleaning|||12,543|16,186|
|Travel, transport and motor expenses|||27,413|40,189|
|Centre classes materials|||-|14,337|
|Rent and rates|||16,148|25,267|
|Light and heat|||15,890|21,612|
|Water rates|||6,284|7,528|
|Insurance|||16,669|14,621|
|Advertising|||7,107|3,152|
|Repairs and maintenance|||26,296|51,456|
|Stationery and postage|||3,734|5,394|
|Telephone|||5,949|7,318|
|Bad debts|||677|-|
|Miscellaneous|||7,028|6,062|
|Bank charges and interest|||6,989|8,981|
|Irrecoverable VAT|||2,046|-|
|Professional, accountancy and subscriptions|||21,635|26,759|
|Auditors' remuneration|||5,000|4,410|
||||1,197,689|1,438,137|
|**taf costs**|||||
||Group|Group|Charity|Charity|
||2021|2020|2021|2020|
||£|£|£|£|
|Wages and salaries|670,155|742,463|455,857|612,098|
|Social security costs|38,731|45,659|38,731|45,659|
|Contribution to defned|9,421|12,931|9,421|12,931|
|contribution pension schemes|||||
||718,307|801,053|504,009|670,688|
## **9. Staff costs**
32
33
Notes to the financial statements For the year ended 31 March 2021
## THE FIFTH TRUST
Notes to the financial statements For the year ended 31 March 2021
## (A company limited by guarantee)
## **9. Staff costs (continued)**
The average number of persons employed by the charity during the year was as follows:
||Group|Group|Charity|Charity|
|---|---|---|---|---|
||2021|2020|2021|2020|
||£|£|£|£|
|Average number by headcount|52|36|38|31|
No employee received remuneration amounting to more than £60,000 in either year.
The total employment benefits including employer national insurance and employer pension contributions of the key management personnel were £173,171 (2020: £163,944).
## **10. Trustees’ remuneration and expenses**
During the year, no trustees received any remuneration or other benefits (2020 £NIL).
During the year ended 31 March 2021, no trustee expenses have been incurred (2020 £NIL).
## **11. Tangible fixed assets**
Group
|Cost or valuation
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020|Buildings
£
Tools and
equipment
£
Motor
vehicles
£
Assets under
construction
£
Total
£
452,718
209,304
129,049
43,810
834,881
24,443
18,950
-
130,125
173,518
-
-
-
-
-|
|---|---|
||477,161
228,254
129,049
173,935
1,008,399|
||163,385
150,827
63,750
-
377,962
18,589
16,829
16,327
-
51,745
-
-
-
-
-|
||181,974
167,656
80,077
-
429,707|
|||
||295,187
60,598
48,972
173,935
578,692|
||289,333
58,477
65,299
43,810
456,919|
## THE FIFTH TRUST
(A company limited by guarantee)
## Charity
|Cost or valuation
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020|Buildings
£
Tools and
equipment
£
Motor
vehicles
£
Assets under
construction
£
Total
£
424,701
144,605
45,249
43,810
658,365
24,443
18,950
-
130,125
173,518
-
-
-
-
-|
|---|---|
||449,144
163,555
45,249
173,935
831,883|
||152,959
101,181
14,292
-
268,432
17,469
12,925
7,741
-
38,135
-
-
-
-
-|
||170,428
114,106
22,033
-
306,567|
|||
||278,716
49,449
23,216
173,935
525,316|
||271,742
43,424
30,957
43,810
389,933|
## **12. Fixed asset investments**
|**ixed asset investments**|||
|---|---|---|
|**tocks**
Charity
Cost or valuation
At 31 March 2021
At 31 March 2020
Net book value
At 31 March 2021
At 31 March 2020
Raw materials
Finished goods and goods for resale|Group
2021
£
Group
2020
£
4,601
3,895
94,126
97,537|Investments in subsidiary
companies
£
57,443|
|||57,423|
|||57,443|
|||57,423|
|||Charity
2021
£
Charity
2020
£
2,479
3,895
37.967
36,913|
||98,727
101,432|40,446
40,808|
## **13. Stocks**
34
35
Notes to the financial statements For the year ended 31 March 2021
Notes to the financial statements For the year ended 31 March 2021
(A company limited by guarantee)
## THE FIFTH TRUST
## THE FIFTH TRUST
(A company limited by guarantee)
## **14. Debtors**
|Due within one year
Trade debtors
Other debtors
Amounts owed from Group
undertakings
Prepayments and accrued income|Group
2021
£
Group
2020
£
Charity
2021
£
Charity
2020
£
94,663
72,168
14,129
66,633
5,504
6,296
15,788
3,539
-
-
52,494
-
15,545
31,044
10,597
25,342|
|---|---|
||115,712
109,508
93,008
95,514|
## **15. Current asset investments**
||Group|Group|Charity|Charity|
|---|---|---|---|---|
||2021|2020|2021|2020|
||£|£|£|£|
|Listed investments|5,500|47|5500|47|
## **16. Creditors: Amounts falling due within one year**
|Trade creditors
Amounts owed to Group
undertakings
Other taxation and social security
Other creditors
Accruals and deferred income|Group
2021
£
Group
2020
£
Charity
2021
£
Charity
2020
£
120,655
29,372
104,308
20,042
-
-
-
10,872
9,875
13,615
9,875
9,370
20,789
12,137
20,628
8,554
11,461
19,658
10,960
13,359|
|---|---|
||162,780
74,782
145,771
62,197|
## **17. Statement of funds**
## Statement of funds - current year
|Unrestricted
funds
Designated funds
Buildings Fund
Student activity
New Print Shed
Classes
General funds
General funds
Total
Unrestricted
funds
Restricted funds
Skills Centre at
Greenbanks Fund
Other restricted
projects
Total of funds|Balance at
1 April
2020
£
Additions/
Income
£
Expenditure
£
Transfers
in/out
£
Gains/
(Losses)
£
Balance at
31 March
2021
£
289,333
24,443
(18,589)
-
-
295,187
-
830
-
-
-
830
23,222
-
(21,242)
-
-
1,979
1,270
-
-
-
-
1,270|
|---|---|
||313,825
25,273
(39,831)
-
-
299,267|
||506,389
1,416,593
(1,165,472)
10,905
5,453
773,868|
||820,214
1,441,866
(1,205,303)
10,905
5,453
1,073,135|
||270,503
146,208
(3,795)
8,994
-
421,910
40,374
11,421
(396)
(19,899)
-
31,500|
||310,877
157,629
(4,191)
(10,905)
-
453,410|
||1,131,091
1,599,495
(1,209,494)
-
5,453
1,526,545|
36
37
Notes to the financial statements For the year ended 31 March 2021
Notes to the financial statements For the year ended 31 March 2021
(A company limited by guarantee)
(A company limited by guarantee)
## THE FIFTH TRUST
## **17. Statement of funds (continued)**
## Statement of funds - prior year
|Unrestricted
funds
Designated funds
Buildings Fund
Skills Centre at
Greenbanks Fund
Minibus
New Print Shed
Classes
General funds
General funds
Total
Unrestricted
funds
Restricted funds
Skills Centre at
Greenbanks Fund
Other restricted
projects
Total of funds|Balance at
1 April
2019
£
Income
£
Expenditure
£
Transfers
in/out
£
Gains/
(Losses)
£
Balance at
31 March
2020
£
304,223
-
(18,108)
3,218
-
289,333
56,385
-
-
(56,385)
-
-
-
19,454
-
(19,454)
-
-
-
23,240
-
(18)
-
23,222
-
788
-
482
-
1,270|
|---|---|
||360,608
43,482
(18,108)
(72,157)
-
313,825|
||360,779
1,431,120
(1,412,063)
126,510
43
506,389|
||721,387
1,474,602
(1,430,171)
54,353
43
820,214|
||230,124
92,190
(8,000)
(43,811)
-
270,503
40,471
20,661
(10,216)
(10,542)
-
40,374|
||270,595
112,851
(18,216)
(54,353)
-
310,877|
||991,982
1,587,453
(1,448,387)
-
43
1,131,091|
## THE FIFTH TRUST
## Statement of funds - fund description
## Designated funds
Buildings fund This fund represents the value of the buildings owned by the charity. Skills Centre at Greenbanks Fund This fund represents the amount set aside from free reserves by trustees in respect of the redevelopment of the Skills Centre site at Barham. Student – Students Tips that will be used for a student Christmas party.
New Print Shed Being used to construct a new shed that can be used as a classroom. Classes Designated for specific classroom related expenses.
## Restricted funds
Skills Centre at Greenbanks Fund This fund represents the donations and other income received in support of the redevelopment of the Skills Centre site at Barham.
Other restricted projects This fund consists of a number of small immaterial restricted projects, including funding for Lifeskills, online sessions, propagation unit and other equipment to be used by the Charity.
## **18. Summary of funds**
## Summary of funds – current year
|Designated funds
General funds
Restricted funds
Designated funds
General funds
Restricted funds
ummary of funds|Balance at
1 April
2020
£
Income
£
Expenditure
£
Transfers
in/out
£
Gains/
(Losses)
£
Balance at
31 March
2021
£
313,825
25,273
(39,831)
-
-
299,267
506,389
1,416,593
(1,165,472)
10,905
5,453
773,868
310,877
157,629
(4,191)
(10,905)
-
453,410|
|---|---|
||1,131,091
1,599,495
1,209,494
-
5,453
1,526,545|
||Balance at
1 April
2019
£
Income
£
Expenditure
£
Transfers
in/out
£
Gains/
(Losses)
£
Balance at
31 March
2020
£
360,608
43,482
(18,108)
(72,157)
-
313,825
360,779
1,431,120
(1,412,063)
126,510
43
506,389
270,595
112,851
(18,216)
(54,353)
-
310,877
- prior year|
||991,982
1,587,453
(1,448,387)
-
43
1,131,091|
## Summary of funds - prior year
38
39
Notes to the financial statements For the year ended 31 March 2021
## THE FIFTH TRUST
Notes to the financial statements For the year ended 31 March 2021
(A company limited by guarantee)
## **19. Analysis of net assets between funds**
## Analysis of net assets between funds – Current Year
|Tangible fxed assets
Current assets
Creditors due within one year
Total|Unrestricted
funds
2021
£
Restricted
funds
2021
£
Total
funds
2021
£
578,692
-
578,692
657,223
453,410
1,110,633
(162,780)
-
(162,780)|
|---|---|
||1,073,135
453,410
1,526,545|
## THE FIFTH TRUST
## (A company limited by guarantee)
## **21. Analysis of cash and cash equivalents**
|**nalysis of changes in net debt**
Cash at bank and in hand
Cash at bank and in hand
Liquid investments|At 1 April
2020
£
Cash fows
£
537,967
352,727
47
-|Group
2021
£
Group
2020
£
890,694
537,967|
|---|---|---|
|||Changes in
market value
£
At 31
March 2021
£
-
890,694
5,453
5,500|
||538,014
352,727|5,453
896,194|
## **22. Analysis of changes in net debt**
## Analysis of net assets between funds - Prior Year
## **23. Pension commitments**
|Tangible fxed assets
Current assets
Creditors due within one year
Total|Unrestricted
funds
2020
£
Restricted
funds
2020
£
Total
funds
2020
£
456,919
-
456,919
438,077
310,877
748,954
(74,782)
-
(74,782)|
|---|---|
||820,214
310,877
1,131,091|
## **20. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
(Gains) on investments
Dividends, interests and rents from investments
Loss/(proft) on the sale of fxed assets
Decrease in stocks
(Increase) in debtors
Increase in creditors
Net cash provided by operating activities|Group
2021
£
Group
2020
£
395,454
139,109
51,745
61,285
(5,453)
(43)
(41)
(70)
-
(6,897)
2,705
23,241
(6,204)
(23,088)
87,998
27,908|
|---|---|
||526,204
221,445|
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £9,421 (2020 £12,931). Contributions totalling £2,462 (2020 £2,736) were payable to the fund at the balance sheet date and are included in creditors.
## **24.**
## **Operating lease commitments**
At 31 March 2021 the Group and the charity had commitments to make future minimum lease payments under non cancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than
5 years|Group
2021
£
Group
2020
£
Charity
2021
£
Charity
2020
£
22,585
18,198
13,090
18,198
39,333
56,786
18,936
56,786|
|---|---|
||61,918
74,984
32,026
74,984|
## **25. Related party transactions**
There were no related party transactions during the year.
## **26. Capital Commitments**
Contracted for but not provided in these financial statements.
2021 2020 £ £ - Net outstanding balance of Skills Centre development contract 1,296,670
On 3rd February 2021 The Fifth Trust signed a contract with Breem Construction Limited, the main contractor, for the development of the Skills Centre at Barham for £1,416,309.
40
41
Notes to the financial statements For the year ended 31 March 2021
## THE FIFTH TRUST
## notes
(A company limited by guarantee)
## **27. Principal subsidiaries**
The following were subsidiary undertakings of the charity:
Names Company Registered Principal Class of Holding Consolidation number office or activity share principal place The 06772993 Elham Valley To provide a Ordinary 100% Yes Vineyard Road, garden centre Garden Barham, service that Centre Ltd Canterbury, serves to Kent, CT4 improve the 6LN impact that the charity can have on its students. The 07324002 Elham Valley To provide a Ordinary 100% Yes Vineyard Road, teashop service Teashop Barham, that serves to Ltd Canterbury, improve the Kent, CT4 impact that the 6LN charity can have on its students. The Fifth 12927260 Elham Valley To provide care Ordinary 100% Yes Care Road, and educational Services Barham, services to Ltd Canterbury, improve the Kent, CT4 impact that the 6LN charity can have on its students.
The financial results of the subsidiaries for the period were:
|Names|Income|Expenditure|Proft/(Loss)|Net assets|
|---|---|---|---|---|
||£|£|for the period|£|
||||£||
|The Vineyard Garden Centre Ltd|366,633|(336,452)|30,181|141,993|
|The Vineyard Teashop Ltd|82,762|(75,226)|7,536|6,924|
|The Fifth Care Services Ltd|215,902|(157,786)|58,116|58,136|
42
43
The Fifth Trust Elham Valley Vineyard Elham Valley Road Breach Barham Canterbury CT4 6LN
01227 832022 www.fifthtrust.co.uk info@fifthtrust.co.uk thevineyardgardencentreandcafe thefifthtrust
Supporting adults with learning disabilities