Haines Watts LocalMèttets,NatlonalStrength. The Dacon Trust Limited Financial Statements For the Year Ended 31 December 2023 Company Registration No.. 00968662 Charity Registered No: 260380 hwca.com THÉ DACON TRVST LMITED CONTENTS OFTHE FINANaALsfATEMENTS FOR THEY£￿ ENOED al DECEMBER 2023 Referenee •nd AdmlnSrtrth rJrtaHs Rffjort ofth• Tru51e•s 2 to 6 Report olth• Ind•pendent Audltors 7 to 10 Sl•t•ment of Flnandal Actl¥lU•s li l•nc• Slw•t Not•sloth• Fln•nclal St•t•m•nts 13 to 23 Detslled st*ten￿￿t of Flnandal Acll¥l¢l•s 24 to 25 THE DACON TRUSf LthltfEO REFERENCE AND ADMINISTrATNE DETAILS FOR THE YEAR ENDED 31 DECEMBER2023 Ms V S P Godfrey {resi8ned 9iiin31 Mr D Flwin Mrs K Hyde Mrs S A Croft Mr O Godfrey Mr G E Mitchell lappojnted 10181231 COMPANY SECRETARY Mrs SA Crdt REGISTERED OFA 26 Stjohns Street Colchester Essex C02 7H8 REGISTERED COMPANY IIUMBER LY)968662 REGISTERED OIARrrY NUMBER 2fA)3 AUOThORS Halnes Watts Statutory Aud6tors Town Wall House Balkerne HMI Essex C03 I4D WI￿As B3rdays 8ank PLC 9 Hi8h Street Colchester Essex COI IDD THE DACCV4 TrUST UMIYEO REPORT OFTHE TrUSTEES FOR ThE YEAR ENOED 31 DECEMBER 2023 The trustee5 tho are aso directors rf the charlty the purr*)se of the Companies Att 2006. present their report the financial ststements of the ¢harityfortheyearended 31 December 2023. The financial statements have been prepared in accordarKe with the account1￿ polldes set out In the notes to the finandal statements and comply the charlty's governing documenL The trustee5 have adopted the provisions of Accountln8 and Reporting by Charities: Statement of Recommended Pr￿tI￿ applicable to charitses preparing their accounts in accordance with the Finanaal Rewtin8 gandard apptioble in the UK and RePUb￿C of Ireland IFRS 1021 {effective ljanuary 2019). Obiertl¥es The oblectives of the Charlty are to Supp￿ the educati￿ and devdopment of life and emthment skdls for adults and w)ung people with mild and moderate l&im1￿ disabilitie& Actlvltles and Athlwements The Charity's main actiwty remainsthe prthrysion of d¥y ser¥lces *the level Best EntffjKises Hub in Colchester. Level aest bs made up d four enterprises - Levd Best Café. Level Best Art and Gallery IlndudlrE digital art and desi8nl. Level Best Seasonal and Level Best Gardeniry IAlotment and Park Raryfsl In April 2023, after IS years Level Bert opw*iu15 m(Kd frryn Dwcy House to the ft￿* purpostrbult premises on St Johns Street. The move ena￿ed Level Best to increase Trainee Session capacity by 30% 170 sessions a week to 221 a week. The Increased space offered by t￿ new p￿ffl￿ has also allv*ed fw r*w workshops to be delivered to Tralnees. which in 2023 included Lino printi￿ Stop Motion animati￿ and a Gonk Maling worksh¢)p. Thro￿hoUt 2023, Level Best ￿ntInued to w(Yk with PR Marketing agew TWI th the Objett￿ of Increaslng the Level Best profile In the lool ctynmunlty and to genwate interest around the opening of St Johns Street. Key achievements from this were the launth of the new Lthtl Best Enterprlses website in April 2023 (which has been wewed by 22.900 people). in(Teased xxial media fdliMiF* 150% Instawi. Th Facelmiokl ar)d the launch of Level Best Enterprises knnkedln Busines5 page. with the ambition to the busin￿ CLJnmunlty and build engaBement for collaboratlon. sponsorshlp and %￿lUnteeri Since opening in April 2023. the new Café and kitchen space at St Johns Street has become a thrivtng café and valued community hub. The increased Spa￿ and new front of house serbing Wea has meant Café session capaoty has Increased by 40% and has given Trainees opporturrities to learn new skills such as fflaki￿ a variety of hot drinks, serving cakes and pastrles, uslng the 1111 and custtyner sepAce. Following the move. Café Openi￿ hour5 were increased and a new menu was launched the intentlon to attrart CU5tomer5 thro￿hOUt the day. Customer numbers and Café sales exceeded expe¢tstions throughout the year. This was also aided by the wovison ￿ over 35 buffets ranging from 10 to 21)) people and over 450 cakes to order. Level Best Art and Galhry. The new and improNEd Art Studlo and Gallery Spa￿ at St John5 Street has made a ￿ge dfference to the Trainee experience. With more space avallable in the Art Studio. Trainees can acce55 more activities such as ￿Ik wlnting and sculpture. There is also a designated exhikntion spxe in the Café to showcas4 ￿￿brdte and Sell Traiftee ar￿￿[k Throughout 2023. Trainee arhvork featured ￿ Se￿al external exhitMtron& irKluthn8 'A spa￿ to Connect at the Art of Tattoo, a nature themed exhitNt at'LeafGallerf. We are MI￿les. 8albEryand'knworks Togethe¢. THE DACON TRUST UMITED REPORT OFTHE TrUSTEES FOR ThE YEAR ENDED 31 DECEMBER 2023 The new Level Best Gallery was an instant SUC￿sS With local artists and creatlves, wth exhlbltlon lots booked untll 2026. Tralnees continue to be involved in the Gallery through administr*ive tssk5 (promotion, ernailing contracts etcl as well as assisting in curating exhlbltlons. Tralnees were also fortunate enough to work with one of the 2023 exhibiting artists to create weekly performancesfor the publk. Level Best Se•sonal: Before the move to St Johns Street. the seasonal enterprlse shared prepar￿On space wtth the kltchen and Café. whlch limited the produce that could be made and sold. Imth a purpo*-bullt seasonal spa￿, Tralnees have room to leam valuable preparation skllls and ènjoythe sèasonal proo The new Café space has a small '$hop' orea for Seasonal goods. As Café numbers have inuea5ed. so too has the sale of seasonal produce. sin￿ openlng In Awil 2023, over gJOJar5 of jam4 chutney and marmalade have been 501d. In 2023, &vel Best stocked and sold Seasonal produce in the Colche5ter Food Coop. Lavenham Open Gardens, Rice and Spice festival. a private Wedd1r￿ event and an eco-frbendly shop in Colchester. Level Best Gardenlnr. Level Best secured a second allotment ploL next to the current ploL The new allotment wlll be used to create a shaded structurei plant more trees and have lots more space for activities and Vegetable beds. Funding was secured from Angllan CommunltyTrustfor a compost tollet whlch was constructed with the help of volunteers on the new allotment plot. The park ranger sesslons conttnued lots of varled activities indudln& wSldflower plantin& orchard maintenance. pwd dearance, litter pl￿ng and fflower bed clearingl plantlng. Level Best and park rangers featured in the Colche5ter gazette as a part of the Colchester council biodiversity aty scheme. Mentap continue to (Kcupy Fittwalter House providing accommodation for learnlng dlsablèd adult residenls. Discu551ons contlnue wlth potential partners as to how the rest of the land at GreatTey could be used. The Charity's activldes are financed by a combinatlon Investment Income together with charges made to tralnees for attendance which are fvnded either by local authorities or privately. There Is a small rellance on volunteer5 for day-ttrday operations although the members of the Management Committee Serve in a voluntsry capacity. The majority of the Charlty's investments are managed by CCLA Investment Management Limited who pro¥Ade a quarterly port and wlth whom regular meetings are hèld to revièw investment strategy. The board of Tru5tee5 ha5 remained broadly consistent throughout the year however the board continue to seek new aPPDintments where they could bring skillsets that will benefit the Charity goin8 forwards. Alison Ling remalns responslble for the day to day management of Level Best Enterprises In Colchester ar#1 Is w1￿M reports to the board on operational progress. PUBLIC BENEFIT The trustees of The Dacon Trust Llmlted have had due regard to the guldance on public benefit publlshed by the Charlty CommlssSon In exerdsln8 thelr powers or dutles. THE DACON TrUST UMITEO REPORT OFTHE TRUSTEES FOR THE YEAR ENOED 31 DECEMBER 1023 ANANaAL RÉVIEW Reserve5 poIIcv The ￿nCIl of ManagemEnt has considered the financial requiremerrts cl the Ch￿ty tskiro into attount the oJrrent positlon and future plans. They have taken particukr note dthe follo*iw: The funds receNed from charitable actiwties have been ar￿ are expected to remain inadequate to meet the costs of promding the service& There will be an 0￿01￿8 requirement for the tharity to provide 5ub5tantlal re￿UrCeS to subsldlsethe serw There continues to be some doubt ¢>￿the offinancial supwt from l￿al Authorities tofund attendance fees. There are no contract5with trainees and theyarefree to stop attending at arytime. In the Iltht of this the Cwnul of Management has made the follovm8 decisions: The InVe￿ments fund lindudin8 in*stment 5Ytipertiesl cUrrent￿totall1nE Q620.62812022: Q818.2761 should be considered an eY4*nda1￿e endowTnentto prthide Irmtofund the Charl￿S operation& The Fixed Asset Fund is set at a figure of £1.93Q03212022: U.83L2801 to reflertthe value Invested in tangikAe The Charity should aim to hold a 8enerat rese￿ at least equivalerrt to 12 months expenthture. The reserve totals £84.17812022: £3.2451. Flnanclal p051tkni The activities during the year resulted in a ￿CIt of unrestrirted funds of £17.96312022". £472,577) for the financial year. Included withln thls defict¢ l$the Intrease In the marketvalue of in4estment of £202.35212022: Decrease £371.2291. At the end ofthe yearthe tharlty has a totsl of £4.634￿ (2022: £4.652,￿) in Unre5trirted Fundk Going concern After making appropriate enqulrles the board of trustees have a fair expeclation that The Da￿n Trust Llmited has adequate resources to continue in operaticfflal eyistence fcK the foreseeable future. For this ￿0$on. it continues to adopt the g￿ng concern bas(s In preparing thefinanaal statemert& The trustees are excited ab￿t the development rA St Johns Street wlwth wlll be a Iwoke cafe V￿th a state of the art industry standard kitchen and art gallery. As ¥￿1 as W￿ldIng improved faalities the location has increasing footfall wluth should Jxovide ereater inccthe opportunitie8 enablrngthe charrty to invest in its own asset to expand tts services to mo trainees. G0wm￿g document The Dacon Trust Llmited Is a cc#npany limlted by guarantee. The tharity is 80￿meA1 by its board of trustees operating under the temis of the memorandum and articles of assoctation. THE DACON TRUST LIMITED REPORT OF THE TRUSTEES FOR THE YEAI ENDEO 31 OECEMBER 2023 STRucfuRE. GOVERNANCE AND MANAGEMENT Members. Ilablllty Each member of the charitable company undertakes to contribute to the assets of tPte charltsble company In the event of It beln8 wound up whllst they are a member. or withln one year after they cease to be a member, such amount as may be requlred. not exceedlng £50, for the debts and liabSlltles contracted before they ceased to be a member. TnMt£u and managemÈnt The charlty has a Councll of Mana8ement that mana8e5 the buslne55 ofthe Charlty. No person who Is not a member of the Charlty Is ellglble to hold office as a member of the Coyncll. Where approprlate, dutles are delegated to employees of the charlty, althou8h the Coundl malntalns overall control for the actlvltles and perfomance of the charlty. The Coundl of Management meets quarterlyto re¥lew the performance of the Charlvs work. The bo•rd of trustees have al$0 now formed subcommlttees In addStlon to the quarterly re￿eW as mentloned abLwe who are also meetlni quarterly. The recrultment and appoSntment of the members are set tyJt In the artlcles and memorandum of assoclatlon, Persons who are appolnted as trustees or members of the Councll wlll be ￿rtY to an Inductlon process detemilned by thelr present role ar￿ knowled8e of The Dacon Trust Llmlted. 5fATEMEiif OFTRUSTEES, RESPONSIBIUTIES The trustees (who are also the dlrectors of The Dacon Trust Llmlted for the purposes of compjny lawl are responslble for preparln8 the Report of the Trustees and the flnanclal statements In accordance wlth applluble law and Unlted KSngdom Accountlng Standards Iunlted Klngdom Generally Accepted Accountln8 Practlol Includln8 Flnanc5al Reportlng Standard 102'The Flnandal Reportln8 Standard appllcable In the UK and Republlc of IrelaThl" Company law requlres the trustees to prepare flnanclal statemenls for each flnanclal year wthlch glve a true and lalr vlew of the state of affalrs of the charltable company and of the Incomlng resources and appllcatlon of resources, Includlng the Income and expendlture. of the charitsble company for that pedod. In prePa￿n9 those flnanclal statements, the trust••s are requlred to select sultsble accountlng pollcles and then apply them ¢onslstently: observe the methods and prlnclples In the Charlty SORP; make Judgements and estlmates that are reasonable and prudent; prepare the financlal statements on the Bolni concern basls unless It Is Inapproprlate to presume that the charltJble company wlll contlnue In buslness. The trustees are responsible for keeping proper accountln8 record5 whlch dlsclose wlth reasonable accuracy at any time the financlal position of the charltable company and to enable them to ensure that the financlal statements wnply with the Companles Act 2006. They are also responslble for safeguardlng the assets of the charltable company and hence for tskln8 reasonable steps for the prLwentlon and detectlon of fraud and other Irregularltles. STATEMENT ASTO DISCLOSURE OF INFORMATION TO AUDttORS So far a5 the trustees are aware, there is no relevant Informatlon las defined by Sectlon 418 of the Companles Act 20061 of whl¢h the charitable company's auditors are unaware. and each trustee has taken all the steps that they ought to have tsken as a trustee in order to make them aware of any audit informat5on and to establish that the charitsble CoMpa￿S audltors are aware of that Informa￿On. ThE DACON TRUST UMtfED REPORT OF THETRUSTEES FOR THE YEAR ENDEO 31 OECEMBER 2013 AUDITORS The auditors. Halnes Watts wil be yoposed for re4ppointment atthe forthcom1￿ Annual G￿eral Meetlng. Thls report has been wepared In accordance wlth the spedal Part 15 of the c￿￿panIeS Art relatlng to small companles. Approved by order of the 1K￿rd of trustees on 4 September 2024 and signed on its behalf by. Mrs K Hyde-Trustee REPORT OF THE INDEPENDENT AlK)IT0￿TOTHE mEMfiE￿ OF THE DACON TRUV Um￿ED Oplnlon We have audited the financial statements of The Dacon Trust Limlted 'tharitsb]e ciynpanv) fc* the year ended 31 Decemter 2023 whlch compri* the Statement of Financial ActNitie5, the 8alance Sheet and notes to the financial statements, I￿[UdIng 3 summary of s8nifKant accounting policies. The finarKial reporting framewryk that has been applled In their preparation is applicable law and United ￿ngdorn Accounti￿ Standards (United Kingdom Generally Accepted Accoun￿rI Pr3¢ticel. irKludin8 FinarKial Repwurg Stsndard 102 The Finanoal Reporting Stsndard appllcablÈ in the UK arKI Republic of Ireland.. In our oplnlon the finanoal statements: give a true and fair wew of the stste of the charitsble c(¥mpanVs affairs as at 31 December 2023 and of Its Incoming resources and applicat5on of re50Lrce¥ induding Its income and expenditure, for the year then ended: have been property prepared in accordance with United ￿Tr&dOm GeneralW Accepted knunting Pr￿t￿e. indudin8 Finanaal Reming Stsnthrd 102 The finanaal Reixwiin8 Standard applicable in the UK and Republlc of Ireland,: and have been prepared in Kcordance *ryth the requirements ofthe Comp3nlesArt 21J)6. Basls foroplnl We condurted our audTt in attordance with Intemational &andards on Auditing (UK) I1&￿ (UK)) and appllcable law. Our responsibilities under those standards ￿e further described in the Auditors. responsiiilities for the audit of the financial ststements section of ￿Jr report We are independent of the charitsble company in accordance with the ethical requirements that are relevant to our audit of the finandal statements In the UK. Indu(fing the FRCS Ethical Stsndord, and we have fvlfilled our other ethical responsiblllties In accordance with these requiremerts. We believe that the aud evideno we have obtained is sufficient and apwopriateto pr￿￿de a ba4$ fty our opinion. CoKluslons relatlngto Ealng concern In audlting thè financlal ststement4 we ha￿ conduded that the trustees, use of the going concem basls of accountlng in the weparatlon of the finandal ststements Is apwoprlate. Basèd on the work we have pÈrf(Ymed. we hwe idèntified any material uncertainties relating to events or condltions that. indNidually or ccAlectively. may casi ￿EnIficant dout* on the tharttable cc¥npany's ability to cortinue as a going concern for a perfod of at least twelve months when the financial statements are authorised for Issue. Our responsibilities and the responsibilities of the trustees *tyth respect to 8oin8 c¢Kern are descrlbed in the relewdnt sections of this reporL Other Informatlon The trustees are responslFAe for other Infmatlon. The other informatlon comprises the inftymatlon included in the Annual Report. other than financial ststements and ourReport ofthe Ir￿ependent A￿lIt￿5 thereon. Our oplnlon on the finandal st*ements does not c(Ner the other infornlation and. except to extent otherW￿e explicidy stated ￿ our rewt, we do not express aryfrm) rf assurance conduslon thereon. In connection wth our autht of the finanoal statementy (wJr resprnsibility is tt) read the othw Infomiatbon and. in dcing so, consider whether the other irrfomiation is materially Sncongsterrt with the finandal ststements or our kr￿wledge obtained in the audit or otherwise appears to be materially misstated. If we identlfy such material inconslstencles or apparent material misstatements. we are reqLpred to deterniine whether thls gi￿ rise to a material misstatèment in the financial statements themselve5. ff, based on the wtyk we hwe p2rfomi& we condude that there Is a materlal m155tstement of thi5 other information. we *e required to rep(rtthat fact We nothing to report in this regard. REPORT OFTHE INDEPENDENT AUDITORSTOThE MEMBÉRS OF THE DACON TrUST LIMITED Oplnlons on other matters preKrlbed tythe Companles Art 2006 In our opinion. based on the work undertaken in the course of the audit.. the Infomiation given in the Report of the Trustees for the flnanclal year for whlch the financlal statements are prepared Is conslstent with the finanaal statements; aTh the Report of the Trustees has been prepared In accordance wlth applicable legal requlrement& Matters on whlch we are rqulred to report by ex¢eptl In the Ilght of the knowledge and understanding of the charltable company and its environment obtsined In the course of the audiL we have not Identrfied material misststements in the Report of theTrustee% We have nothing to replrt in respect of the follownB matters where the Companies Act 2006 requlres us to report to you if. in our opinion: adequate accountlng records have not been kept or returns adequate for our audit have not been recelved from branches not visited by us,. or the finandal statements are not in agreement Wbth the accounting records and returns". or certaln dlsclosures of trustees, remuneratlon speclfted by law are not made: or we have not received ￿1 the information and explanationswe requlre for our audit- or the trustees were not entitled to take advantage of the small companies exemptlon from the requlrement to prepare a Strategic Report or in preparlng the Report of thèTrustees. Re¥)onsfrJllttles of trustees As explained more fully in the Statement of Trustees. Responslbilities. the trustees (who are also the dlrectors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfled that they give a true and falr vlew, and for such internal control as the trustees determlne is necessary to enable the preparatton of flnanclal statements that are free from material misststement, whether due tofraud or error. In prepadng the flnancial statements, the trustees are responslble for assesslnE the charitsble companvs ability to contlnue as a going concern. disclosin& as applicable, matters related to golng concern and using the going concem basls of accounting unless the trustees either intend to liquidate charitable company or to cease operattons, or have no reallstlc alternative but to do so. REPORT OFThE INDEPENDENT AUDITORS TOTHE MEMBERS OF THE DACOI4 TRUST UMITEO r responslbllltles forthe audlt of thellnandal 5E*em Our objectives are to obtain reasOna￿e assurance aty)ut whether the finandal statements as a whde are free from material misststemenL whether due to fraud or error. and to issue a Repcyt of the Independent Auditorsthat includes our oplnlon. Reasonable assurance is a hlgh level of assurarte. but is not a uuarantee that an audit conducted In accordance wlth ISAS IUKI will always detect a materlal mis5tstement when rt exists. Misstatements can arise from fraud or errol and are considered materlal If. Indtwdually ￿ In the aggregate. thty could reasona￿ be experted to influence the economlc de¢Sslons of users tsken on the b￿5 of these finanaal statements. The extentto whkh tyjr procedures are capa1￿e of detecti￿ Irregular￿e4 ind￿lIrI fraud Is detailed below: We obtsined an understsndln8 of the le8al and regulatory framework appiicable to both the tharitable company Itself and the sector In whlch It operate& We identified areas of laws and regulations that could reasonably be experted to have a materlal effect on the ffinandal statements from our sector experience and thrO￿h dlscusslon ￿th the dlrectorsltrustees and mana8emenL The m05t 518nlficant were Identified as the Companles Att 2LK*. The Cha￿tIeS Act 2011. UK GA4P Includlng Charlty SORP IFRS 1021 and rele￿nt tax legi￿atiOn. We consldered the extent of compliance %bryth tIK￿e laws and re8ulatlons as part of our wocedures on the related financlal statements. Our audlt procedures Induded= We Con￿dered the r5sk of fraud through management o¥*rrNle and In resp￿. we IrKorporated testlng of manual lournal entrles Into our audlt approach throu8houtthe finandal year. We also consldered the rlsk of fraud through asSuMp￿On$ and ludgements used vlthln the accountSng estlmates and In response, revlewed and scrutlnlsed the￿ estlmates In order to detect pO￿￿e mèna8ement bSa& We algo COn￿dered the rlsk of fraud assoclated the preparatlon of the finandal 5tJtements and In response, tested the dlsclosures prepared agalnst relewdnt supwung documentstlon. Our audlt dld not Identlfy any slgnfflcant matters relatlng to the detertlon of Irregularltles Indudln8 fraud. However. despite the audlt beln8 planned and condurted In xcordance tpltth I￿5 IUKI there rema1￿ an unavoIda￿e rlsk that materlal mlsstatements In the finandal ststements not be detected owlnl to Inherent Ilmltstjons of the audlt, and by thelrvery nature, any such Instsnces A further descrSptlon of our responslbllllles for ihe •udlt of the finènclal ststements15 l¢xated ￿ the Flnanclal Reportln8 Councll's webslte at www.froor&uVau(MtorsresponslbMltie& Ths descflption forn)$ pjrt of our Report of the Independent Audltors. REPORT OF THE INDEPENDENfAUI)ftORSTOIHE h￿BERs L THE DACON TRiM UMITED Use ofour ￿ort This report Is madè solely to the tharitsble ¢¢)mpanVs members. as a body. in accordance Iwth fthapter 3 of Part 16 of the Companies Act 2trfJ6. Our audit work has been undertaken so that we might state to the tharitable company's mernbers those matters we are required to stste to them in an Jjditors, report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume respo￿bility to an￿e other than the charitable company and the tharitsble company's members as a W. for our audit forthi5 rem tyfor oplnlons we haveformed. Melinda J Simpson ACA (Senior StatutoryAuditorl for and on behalf of Haines Watts Statutory Auditors Town Wall House Balkeme Hill Colchester Essex C03 3AD Date: 6 September 2024 THE DACON TRiIST UMITED STATEMENf OF FINANCIALAcnviTIES (INCORPORATING AN INCOME AND EXPENDITURE ACCIXIMn FOR THE YEAR ENDED 31 DECEMBER 2023 2023 Unrestrfcted funds 2022 Total funds Note5 INCOME AND ENDOWMENTS FROM Chafhble artlvltles Attendance fees, cafe and art sup￿Ie5 Lettlng of non investrnent property 305,001 33,000 196.021 33.185 Investment Inctsme other Income 86,197 103,029 Totsl 332 235 EXPENDITLIRE ON Ra151n8 funds 5.732 Charftable •cthAtles Attendance fees, cafe and art supplses 638,894 427,851 433,583 Net 8alnslllossesl on Investments 201352 371,2291 NEI INCOMVIEXPENOITUREI 117.963) 1472,5771 RECONaLIATION OF FUNDS Total funds brought forward 4,651801 5,125.378 YOTAL FUNOS CARRIEO FORW￿10 4.652,801 COP4TIMUING OPERATIONS All Income and expenditure has arlsen from contlnuln8 operatlons. The notes fomi part of these flnanclal statements -li- THE DACON TRUST UMITEO BALANCE SHEET 31 DECEMBER 2023 2023 Unrestrlrted funds 2022 Total funds Notes FIXED ASSETS Tangible assets Investments Investments Investment property io 1?30,032 1.831.280 li 12 2320,628 31x1.000 2.518,276 300.CQO 4.550.660 4.649,556 CURRENT ASSEts Debtors Cash at bank 13 81,117 147,095 68,924 169,062 237.986 CREDITORS Amounts falling due within one year 14 (U4,0341 1234.7411 OJRRENf ASSETS 84,178 3,245 TOTAL ASSEfs LESS CURREHf UABIUTIES 4,634 4,652,801 NET ASSErs 4,634 4,6S2,801 FUNDS Unrestricted fijnds 16 4,684￿38 4.652.801 TOTAL FUNDS 4,634￿38 4.652.801 These finandal statements have been prepared in accordance wlth the yovlslons appllcable to char5table Companies subject to the small companles reglme. The financial statements were approved bythe Board of Trustees and authorlsed for Issue on 4 September 2024 and were Signed on its behalf by: Mrs K H¥de-Trustee The notes fomi part of these flnancial statements -12- THE DACON TRUST LIMITED NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEPXI ENDED 31 DECEMBER 2013 ACCOUNTING pouaES General Inlormatlon and basls of prepaTrtlon The Dacon Trust Llmlted Is a company limited by guarantee establlshed In England and Wales. The address of the registered offlce Is glven In the charlty informatlon on page l of these flnanclal statements. The nature ol the charlty's operatlons and prlncipal actlvities are to support the educatSon and development of Ilfe and employment skllls for adults wlth mlld and moderate learnlng dlsat4iitle& The flnancSal statements of the Charltsble conpanyi whlch Is a publlc beneflt entlty under FRS 102, have been prepared In accordance with the Charlties SORP IFRS 1021 'Ac£ountSng and Reporting by Charities.. Statement of Recommended Prartlce appllcable to charltles preparln8 their accounts In accordance with the Flnanclal ReportlnB Stsndard appllcable In the UK and Republlc of Ireland IFRS 1021 leffectlve l January 20191,, Flnanc5al Reportlng Standard 102 The Flnanclal fteportlng Standard appllcable In the UK and Repub15c of Ireland, and the Companles Act 2006. The flnanclal statements are prepared on a golng concern basls under the hlstorfcal cost conventlon. modlfled to Include certaln Item5 at falr value. The finandal statements are presented In ster15ng whlch 15 the functlonal currency of the charlty and r￿nded to the nearest pound. Furtdi Unrestrlcted funds are avallable for use at the dlscretlon of the trustees In furtherance of the general obSectlves of the charéty 8nd whlch have not been deslgnated for other purposes. All funds of the charfty are unrestrlctsd. Slinlflcart lud8ements and ertlmatss The preparatlon of the flnanclal Statements requlres the Councll of Management to make judgements, estlmates and assumptlons that affect the amounts reported for assets and Ilabllltles at the balance Sheet date and the amounts reported as revenue and expenses durln8 the year. However, the nature of estlmatlons means that the actual outcomes could dlffer from these estlmates. The followlnu Item Is hl8hll8hted as 3 judgement that has had the most sl8nlficant effect on amounts reco8nlsed In the flnanclal statements and the key source of estlmatlon uncertalnty. The company carrles Its Investment Property at falr value, wlth chan8es In the falr value beln8 reco8nlsed In the SOFA. The Imiestment propertles are held at a value whlch, In the opl￿on of the trustees, relle¢ts Open market value at the balance sheet date. Income reco8nltlon All Incomlng resources are Included In the Statement of Flnandal Actlvltles ISOFAI when the tharlty Ss legally entltled to the Income after any performance condltlons hwe been me¢ the amount can be meassjred rellably and It Is probable that the Income wlll be recelved. Income from tradlng actlvltles Is recelved In exchange fcf supplylng goods and 5ervlces In cKder to ralse funds Is reco8nised when entltlement h•$ occurred. Income from government and other grants ore recognlsed at falr value when the char(ty has entltlement after any performance condltlons have been met, It 1$ probable that the Income wlll be received and the amount can be meaSU￿d rellably. If entitlement Is not met then these amounts are deferred. -13- THE DACON TRUST UMITED NOTES TOIHE FINANCIALSTATEMENTS. cwtknued FOR THE YEAR ENDED 31 DECEMBER 2025 ACCOUPlllNG pouaES- conllnu•d Income reco￿(th)n Investment income is earned through hdding assets investment purposes such as shares and property. It Includes dI￿dendS Interest and rent. Interest inccrfne is recognised using the effertS¥e interest method and dlvldend and rent Ir￿ome is recognised as the charf￿s rightto recehe payment Is establlshed. Exp•ndltUfe recoyftlon All expenditure is accounted for on an accTuals basls and has been dassified under headlrbgs that aogre8ate all costs related to the ¢ate80ry. Expendlture Is recogThsed where there Is a legal or c￿Str￿ti￿* obllgation to make payments to third partles, It 15 wobable that the sèttlement will be requlred and the amount of the obllgatlon can be measured rellably. Expenditure exdudes VAT and Is reP￿ted as part of the experKllture to whlch It relates. It Is catelorlsed under the ft￿lowIng headiw: Costs of 8eneralln8lunds cwwlse the costs of i>peratlon and malntslnlng the Investment lrtome. Charltable expendlture comwlsesthose costs Incwred charlty In the delt¥ery of Its a￿vItIeS and servlces for its beneficlarle5. Support costs are those funrtlon5 th* I$￿$t the w(*k of the ch•rity Ixjt do not dlrealy undertake chadtable rtlv6tles. Supwt costs Include back office costs, finance. personnel, payroll and goNErnance costs whlch support the ¢harfVs actlvltle& Where support costs rebte to mwe than one artmty they have been Ilocatsd on the ba515 ofstaff time and res￿¢¢$ conymed by each acdvbty. Flx•d •M•ts Tanolble flxed assets are staled at cost less actumulated depredatlon and Kcwnulated knpJ5rment losses. Cost Include5 Costs dtrecdy attrlbutsble to Mak1￿ the 4sset ¢We d operat6ni as Intended. Depreclatlon Is provlded on all trn￿ble flxed assets. at rntes calculated to wrlte off the cos( less estlmjted resldual valu& cl eath asset on a systematlc bbsl$ itse¥wrted u5efiA Ilfe asfouows: Freehold Land & 8ulldlngs Tenants Improvements Plani Machlnery. Flxtures & Flttlngs Nll- 5% On Cost 33% On Cost 15%. 30% On Cost Freehold Land & Bulldngs are carrled at cost. Freehold prryrty Is not depreclated on the grounds that the hlgh resldual value renders any depreclaUon char8e Immaterial. Thls Is a departure from the Companles Art 2006 In order to gfve a true and tslr Nlew. Assets Under Construrtlon are carrled at cost and are n￿1 deprecl•ted. Upon completlon the ¢att￿nI value Is transferred to Freehold Land and Bu51dlngs In¥eslment propertles Investment properties are measured at fair value at eath rePOrtb￿ d*e chanys in fair value recc6nlsed In 'net 8ain51110sses1 on investments, in the SOF In¥estm• Investments are re¢L%nlsed Initlally at falr Ydlue wtrdch Is nomially the transactlon prfce exduding trar)wtlon costs. Subsequently. they are measured * lair value wrth charees recognised in 'net gains I Ilossesl on investments, in the SOFA rf the shares are publidy traded or thelr falr Ydlue can otheTh¥lse be measured reliably. Other investments are measured at ¢osr impaimient -14- THE DACON TRusf UMITED NOTESTOThE HNANaAL STATEMENTS.coThthwed FOR THE YEAR ENDED 31 DECEMBER 2023 AccouimNG pouaES. (onthued Tax The charltylsexemptfron cryporatlon tsx on Its charitable actiNitie& The Dacon Trust re￿IVed no sSmllar eyAnption in respeLt of Value Added Tax The L)acon Tn￿ 15 a partially exempt or8anisation forVAT wrposes arKt ccwuendy Inwt tsx ￿ its wthases ¥e r￿)t fully recoverable. The partial exemption came into effert on 01 April 2023 for this reason the comparative5 are not dlrectty comparable. Rentals pa¥a￿e and reCeival￿e under operating leases are chwged to the SOFA on a stralght Ilne bals over the period of the lease. Empkn￿ ben The charity operate5 a defined cortribution ptan for the knefft of Its Contrjbutlons are expensed as they become payable. Flnandal Instrumwts The trust only ha5 finandal assets and financial liabilities of a knnd that qualify as basic finan¢lal Instruments. Basic financial instruments are Initially recognised at tran5artion value and subSeqL￿1fy measured at thelr settlement value. Golng cewem The financial statemerrt5 are prepared on a c(MKem basis as the￿ are no material uncertaintie5 that the Charlvs ability to continue. INVESTMENT INCOMÉ 2022 IncLvne UK1Th4estment propertles In¢LMne from UK listed investments Dep￿st a¢¢(wnt interest 18,180 83.899 950 63.708 86.197 103.029 For year endlnu 31 December 2022. Income UK r￿ invests))ents I￿ll￿ an element of DeP￿t account illtere5L The appropriate split the Ye￿ has bpen detailed nrte 2 to alkw fry a compwatNe f year ending 31 December 2023. THE DACON TRLIST LIMITED NOTES TOThE FINANCIALSTATEMENTS- contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 RAISING FUNDS Investfflenl management costs 2022 Lettlng agentfees 6.465 5.732 cHAft￿ABLE AcnvmES cosrs 2023 2022 Wage5 and salaries Employer's naUonal Insurance Penslons Rent, rates and water Insurance Light and heat SundriÈs Repalrs and other expenses Advertising Cleaning Staff Tralnir Motor and travel costs Purchases Depreciation of tangible fixed assets SuP￿rt ¢￿t$ (see note 51 298,051 ,138 13,896 50.445 14,394 40,375 1&053 70.729 15,148 13,611 2,562 232.329 8,591 11,056 52,104 18.881 12,006 3.340 15,640 9,970 6,376 178 1,847 17,914 5.923 31,696 10,160 34,539 638,894 427.851 For year endlng 31 December 2023. sundrie5 has been splltout further to showthe expenditure dlrertly relatlng to Adverti￿n& Cleaning and Staff Training. Previously, these expenses were induded within Sundries for year endln8 31 De￿mber 2022. -1 THE DACON TRUST UMrtED NOTESTOTHE FINANaALSTATEMEP4TS- conttnued FOR ThE YEAR ENDED 31 DECEMBER 2023 SUPPORT COSTS 2022 Accountancy and other non-auditfees Audlt fees Legal and professlonal fees 21.199 6,615 11.160 10.650 9.886 34J39 31.696 NEf INCOMEIIEXPENOITUREI Net Inc¢mellexpendlturel Is ststed after charln811credltln81: 2023 2022 Depreclatlon- owned assets Surplus on dlsposal of fixed assets Audltors, remuneratlon- audlt of the financlal statements Audltors, remuneratlon- overlunder accrual Accountsncy and other non-audlt St￿ee5 Taxatlon advlsory servlces Operatlng leases- rent 10.160 1461 7,150 {$35) 5,923 7.6SO 3,000 10,740 420 8,881 TRUSTEE5' REMUNERATION AND BENEFITS The trustees are deemed to be the key management personnel of the charfty. There were no trustees, remuneratlon or other benefits for the year ended 31 December 2023 orfor the year ended 31 December 2022. Trurtees, expen$ei There were no trustees, •xpenses pald for year ended 31 December 2023 or for the year endln8 31 December 2022. STAFF COSTS 2023 2022 Wages and sJlarles Soclal se¢urlty costs other penslon costs 2x051 21.138 13,896 232.329 8.591 333,085 251,976 2022 io The average monthly number of employees durlng the year were: -17- ThE DACON Trusr UMITED P41yfES TOTHE HNANCIALsfATEMEMTS-crffithwed FOR THE YE￿{ EMDED 31 DEI%MBER 2 No eMplo￿e$ received emoluments in excess of £60.WL TAXATION No Corporation tax has been prnmded based (m the Ccmpanvs charitsble statu& TANGIBLE FIXED ASSErs Plant & machinery under Tenants & Fixtyres construdion imwovements & fittings Freehold Land& Buildin8S Totals At l January 2023 Additlons Di5P05als Reclassification 317J95 ¥23,030 Z45 168y6 22213 142A44) 2,033.295 108.912 142A441 At 31 December 2023 1,926,924 1483 099,763 DEPREaATION At l January 2023 Charge for year Eliminated on disposal 0,291 10.160 {U4441 202OiS ,160 42A441 At 31 December 2023 169.731 NEf8OOK VALiIE At 31 December 2023 Im,7Z4 1,930P32 At 31 December 2022 289.995 L523,030 18.255 1.831,280 The market value of the freehold lar*1 and ￿￿1&￿Ing& in the otlnion of the trustees, Is In ex¢ess of the ca￿￿7n8 value In the accounts. The freehold property relates to land and buldin85 known as Frtzwalter House. Great Tel and St John's Street 8uilthin& Colthe5ter. Part of the woperty. Fitzwalter House, is let to Mencap to W0￿de accommodation for learning disabled adult resldents and the rest of the land is used by the Trust As It Is not possibleto determine any investment component reliably it is deemed approprfate todisdose the whde of property known as Fitzwalter House as Freehold land and bulldlre -18- ThE DACON TrUST UMITED NOTES TO THE FINANaALsTATEm￿￿. contknued FOR THE YEAR ENDEO 31 tECEMBER 2023 IL AXEO ASSETINVESTMENTS Usted investments MARKETVALUE At l January 2023 Dlsposals Revaluatlons 1518276 1400.0001 202352 At 31 December 2023 1320 NET BOOKVALUE At 31 December 2023 1320M8 At 31 December 2022 2 518,276 The abole market ￿lue of flxed asset lrnMstments C￿taInS ￿se cost d E911,287 12022: £1.079.771} arKI accumulated revaluatfjon galn5 of £L409.34112022: £L438505). Theflxed asset In￿s{ments were valued on •n open market basls on the 31 December 2023 by Churche& cha￿e5 nd Local Authorltle5 {CCLAI Investrnent M•naRwnent Umited. None of these Investments were held outslde of the Unlted KlnKdom. INVESfMENT PROPERTY FAIR VAWE At l January 2023 nd 31 December 2023 NEfBOOK VALUE At 31 December 2023 At 31 December 2022 The Investment properties are held at a ￿ue WhIc￿ In the opiThon of the trustee4 refiects open market value at the balance Sheet dat -1 THE DACON TRiIST UMfrED NOTESTO THE FINANCIALSTATEMENTS.coThtkwed FOR ThE YEAR ÉNDED 31 DECEMBER 2023 DEBT0￿. PhlOUNTS FALUNG OLE WITHIN OI* YEAR 2022 Trade debtor$ Other debtors Prepayments and accrued Inc¢#ne 7,957 6,423 66,737 6,002 57,317 CREDITORS: AMOUNTS FAiUNG ￿ WtIHIII ONE YE￿4 2022 Trade Credltors othertaxes and %)dal 5ecurlty Other credllor5 Accruals and deferred IrKome 32,985 6.345 $8,639 46,065 4,543 4.315 5S.669 170.214 234 741 Is. LEASING AGREEMENTS MlnSmum lease p4yYnents under nOn￿ncelIable leases tsll the asfollows: 20Z3 2022 Wlthln one year Between on• Ind fl¥• years 42,QJO 159,250 After the balance sheet date a setdement was reJthed to surrender the lease of DJrcy House In the sum of £ioo,oLK). LESSOR AGREEME14TS 2022 Wlthln one year Between or* and ffive ￿ar$ In more than five years 33.0(Kl 132,0 99,000 uiooo 231,000 264,CQO The above ayeement relates to the lease of Fltzwalter House to me￿ap. THE DACON TRUST LIMITED NOTES TOTHE FINANCIAL STATEMEP4TS- conttnued FOR THE YEAR ENDED 31 DECEMBER 2023 MOVEMENT IN FUNDS Net movement In funds Transfers between funds At 31.12.23 At 1.1.23 Unrestrlrted funds General fund Flxed Asset Fund Investment Fund 3.245 lJ31.280 1818,276 (210,201) (10.114) 202,352 291,134 108A66 1400.000 84,In 1,930,032 2.620.628 4,652WI 117,9631 TOTAL FUNDS 4.652,801 17,963) 4,634,838 Net movement in funds. included in the above are as follow5: Incoming reSoUr￿S Re￿UrceS expended Galns and losses Movement In funds Unrestrkted funds General fund Fixed Asset Fund Investment Fund 1635,199) (10,160) {210.2011 {io,iui 202.352 202352 645J591 202,3S2 17.963) TOTAL FLWOS 425.044 645.359) 202352 117,9631 Comparatlves for movement In fwnds Net movement In fvnds Transfers between lunds At 31.12.22 At 1.1.22 Unrestrirted fijnds General fund Fixed Asset Fund Investment Fund 628.848 707,025 195.425) 15.9231 1530.1781 1.130,178 600.(PJOI 3.245 1,831.280 2.818.276 5,125,378 1472,5771 4.652.801 TOTAL FUNDS 5.125.378 472,5771 4.652.801 -21- THE DACONTRUSTUMITED NOTESTO THE FINANCIAL STATEMENTS.wrtlnued FOR ThE YEAR ENDED 31 DE(EPaBER 2025 MOVEMENT IN FLINDS.conthued Comparative net M￿lernent in fund& Induded In the abm are asfollows: Inc¢Ynl resources Resources expended Galns and Movement In fvnds unves1rfrt￿ funds General fund Flxed Asset Fund Imiestment Fund 1427.6601 15.9231 195,4251 15.9231 371.2291 371.229) 332.23S 433.583) 371.2291 472,577 TOTAL FUNOS 332.235 433.5831 371.229) 472.5771 l. The General Fund rewesents the accum￿￿ted surpluses of the Cha￿ty and Is avallable the iener•l purposes olthe Charfty. 2. The Flxed Asset Fund represents the value InN*#ed In Tan8lble Flxed Assets less acujmulated depredatlon. The Investment Fund represerbts the value InNtsted In the tlxed asset Investmentsand Is avallable to provlde reseNes to a551st the Charity In carryln8 Out Its obffjectlve. 17. CAPITAL COMMITMENTS 2022 Contrarted but not prtr•lded fty In the fin**lal statements RELATED PARTY D15CiCWIIES There were no related partytransactlonsfor the year ended 31 December 2023. THE DACON TRUST LIMtIED NOTESTO THE FINANCIAi STATEMENTS- contlnu•d FOR THE Y￿R ENDED 31 DECEM8ÉR 2023 COMPANY UMrrED BY GUARANTEE The Charfty Is a tompany limited by 8uarantee. The trustees are named on page l. In the event of the chartty beln8 wound UP* the Ilablllty In respect of the guarantee 15 limited to £50 per rnember of the charfty. .2> THE DACON TR￿ UMttEO OETAILEO sfATEMENT OF FINANaALAcllviTIES FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 INCOME AND ENDOWMENTS Inveslment Income Income from UK Investment propertles Income from UK listed investments Deposit account interest 18,180 83,899 950 63.708 2.604 103,029 Charltable artivitie5 Lettlng of non investment propertles Attendance and care fee5 Cafe and art sale5 Grants 41,250 224.312 70,349 2,890 33,185 162.289 31,548 2,184 338,801 229.206 Other Income Galn on sale of tan8ible fixed assets Totsl Incomlng resources 332,235 EXPENDMJRE Investment management