# **Seeing things differently**
## C O N T E N T S
...... Introduction | In L’Arche we see things differently ...... About L’Arche | Who we are, What we do, Where we are ...... 2022-2023 in Numbers ...... Something Beautiful Together ...... Our Year ...... Three Big Conversations ...... A Church for Everyone Everywhere ...... Fifty Years of L’Arche
...... Plans for the Future | What we are doing so L’Arche will flourish ...... Unwanted Treasures ...... Our Money
...... Supporting L’Arche
...... Strategic and Trustees Report
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## In L’Arche we see things
## We want to help you see differently too.
To see the brilliant things in L’Arche life after lockdown. Steam train outings. Hogmanay and Easter parties. New babies. Trips to friends and family.
To see what people with and without disabilities can achieve together. Gardens planted. Workshops full of woodwork, theatre and art. Homes full of singing, eating and dancing.
To see how annoying it is when people talk to us as if we are stupid. When doctors, nurses and carers don’t know how to listen to us. When we don’t have independence.
We want you to see we’re actually quite clever, and want respect.
Most of all, we want you to see that even in the hardest times life’s not all gloom and doom. When we come together, we can feel happy inside.
To see all this, please read on. Better still, come visit us in person!
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Laura Matheson
National Speaking Council Chair
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Rebecca Fonseca
NSC vice-Chair
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John Casson
National Leader
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Aedan MacGreevy
National Board Chair
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**Who** we are We want a radically inclusive world where people with and without learning disabilities thrive together in body, mind and spirit.
**So together we create:**
**•**[Places and ] relationships for people with and without learning disabilities to live, love and grow together.
**•**[Encounters for ] people with learning disabilities to be visible and valued – as changemakers, neighbours and citizens.
- [Campaigns and ] partnerships for a radically inclusive world.
**What** we do
L’Arche supports around 300 adults with learning disabilities in England, Scotland and Wales, through a mix of residential and home support and activity programmes.
We create Communities where people with and without learning disabilities live and work alongside each other. Together and as individuals, we actively participate in our neighbourhoods, in faith and campaign groups, in places of work, learning and fun, and in our towns, cities and nations.
People with learning disabilities are the core members of our Communities. Each one has a personal support plan, developed by listening to their dreams and aspirations, choices and goals, and tailored to their individual needs and level of independence.
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Highland
Edinburgh
Preston
Manchester
Liverpool Nottingham
Brecon Ipswich
London
Bognor Regis
Kent
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**Where** we are
L’Arche Communities are each made up of people with and without disabilities sharing life in a local neighbourhood within a specific town or city.
**We are local –** with Communities in 11 towns and cities across Britain.
## **We are national –**
supporting each other in one national charity with a shared vision and culture.
## **We are international –**
members of a federation with 160 L’Arche Communities in 37 countries on 6 continents.
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**h m** 9 **m** 37 11 63,510 **u s er**
**For more about our three Big Conversations see pages 9-10.**
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## Something together **beautiful**
It’s a crisp December afternoon. Lambeth is caked in ice and snow. Jason is waiting in Stanley Hall Theatre, along with the L’Arche London Drama Group.
We are holding a message: that people with and without learning disability can create something beautiful together.
“It’s important to put plays on in theatres,” he says, “because that’s the normal place where people come to see stage shows or drama performances.”
The Drama Group draws inspiration from ancient myths, legends and fairy tales. But in their productions, everything is made from scratch – the scripts, the props, the costumes, the scenery.
Their Creation Story, performed earlier in the year, featured 6 giant tapestries, homespun in the craft workshop, depicting the six days of creation. For their new production, Laurence, a man with Down’s Syndrome, has spent months sawing, nailing and painting wood, along with a volunteer called Tony, to create the magical, and colourful set for the Musicians of Bremen.
Everyone’s talents are employed, all ideas are considered. “Success for me is everyone finding a role and place in the play,” says Laura, the Group’s director.
A cat (Amy) is putting on her makeup. A rooster (Vinny) is practicing his crowing. Four thieves (William, Danny, Ben and Marina) are preparing their stripy swag bags. If it comes off, The Musicians of Bremen, performed to packed south London audience, will be the highlight of the year for the Drama Group.
But will it end happily ever after?
Watch our six-minute video to discover what happens:
**www.larche.org.uk/beautiful-together**
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## O U R Y E A R
## AUG 2022
Once again, our Communities gather in Hope Valley for a weekend of camping, singing karaoke, YoDancing and eating together! **HopeFest** is getting bigger and bigger each year.
| Globally, we connect with other Communities during the **L’Arche Light Festival** with videos, dramas, songs and moments of prayer. | Nationally, we change our visual brand identity, introducing new colours, squiggles and fonts to focus on all the things we are – creative, expressive and joyful. We welcome Sarah Shallis as a new Community Leader in Bognor.
SEP 2022
OCT 2022
| The 18th of October is an important day for Richard as he becomes a published author and launches **“Don’t Put Us Away”** at a prestigious event hosted at the House of Commons. | In Manchester, the Halle Orchestra brings music to L’Arche where our members explore different rhythms, creating music together and even participating in conducting sessions.
| While Ipswich folk carve pumpkins | L’Arche members in Highland work hard in the workshops, making candles, preparing pot plants and herbs to sell at a **Winter Pop-Up shop** .
NOV 2022
DEC 2022
| After months of sweat and tiring rehearsals, our talented London Drama Club bring The Bremen Town Musicians to the stage. | Whereas Billy and Jane from the Ipswich Community become theatre stars as they appear in Brave Art’s production based on the **Kinky Boots** .
| L’Arche Highland receive the highest possible grade from the Care Inspectorate for demonstrating outstanding compassion, dignity and respect... Bravo! | Chloe and Milly are appointed as new **Voice and Power** Co-Leads.
JAN 2023
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FEB 2023
| Working with a scientist from the Edinburgh Royal Botanic Garden, L’Arche Manchester co-create an audio-visual sensory experience for people with learning disabilities called **Climate Sense** . | Sian is invited to a music and storytelling event as a guest speaker.
| We launch a series of short videos that feature L’Arche assistants from all over UK. They talk MAR about growth, fulfilment and deep satisfaction. | Liverpool welcome Stacey as a new Community 2023 Leader. The Bognor Regis Community has a **Barn Dance** to celebrate their 45th birthday. Yeehaw!
APR 2023
| Before Easter, we wash each other’s feet, and keep soul diaries as part of the Big Conversation on Spirituality | Also, two lads from Bognor Regis, Edward and James, share the **first of their Makaton series.**
| Rebound Books receive a **Bronze award for Sustainability at Hay Festival** . | Manchester MAY celebrates their 10th birthday and Eleanor 2023 completes the Great Manchester Run raising almost £1000, an incredible achievement.
| This year’s theme for Walking Together is JUN **#WalkingDifferently** – some of us walk blindfolded, 2023 three-legged, or dressed as clowns! | Together with the other 36 countries of L’Arche, we take part in the International Federation Assembly.
| July is the month for the bravest of us all! While L’Arche Preston celebrate their 25th birthday by **sailing in the open waters,** John Casson gets a pair of kangaroo shoes to raise money for L’Arche Communities around the world in a bouncing challenge.
JUL 2023
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50 years of L’Arche in the UK
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In 2024, we are celebrating 50 years of L’Arche in the UK. We want to mark our Jubilee by looking forward as well as back, establishing a vision for the future of L’Arche in a changed world.
In order to do this, we launched Three Big Conversations to reflect on three of the themes that matter most to us today.
## **1**
**The we make**
ABOVE: L’Arche Kent in the early days
We want everyone in L’Arche to be clear and confident about the difference we can make for a fairer world.
Over the past year we have drawn together the views of all our Communities and reflected on their responses through a series of national online workshops.
This has given us a clear picture of what is most important to our members and the activities and practices that have the most impact on their lives. We have also heard the need to challenge how people with a learning disability are treated in our society.
We are now using this information to:
- Inform the key choices we will make affecting the future
- [Communicate a clear message ] about who we are and what we stand for
- [Identify and measure ] our impact, through the development of focused survey and self-audit tools
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2
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## **and Voice Power**
## **What really matters**
We want to equip people with learning disabilities both in L’Arche, and in our society as a whole, to be heard and empowered.
Our two Co-Facilitators, Chloe (pictured above) and Milly have visited Communities and held online conversations to learn what really matters to our Community members.
## **Three key priorities identified:**
- [Finding employment when ] there is little opportunity for paid jobs
## **Our 3 spirituality**
## **Deep and inclusive**
- [What does spirituality mean to me?]
- [How does my spirituality help me ] manage a complex life and be a better person?
- [How can our spirituality be ] truly open to everyone, while being rooted in the insights and inspirations of the Christian gospel?
It is important to our Community members that we continue to ask these questions, to help us understand how knowing the whole person – including their spiritual life – helps us to grow and find joy.
We want to encounter each other in authenticity and depth, at the point of our spiritual differences, rather than settle for a shallow harmony.
There is a distinct L’Arche spirituality: accessible and mutual, playful and fun, rooted in the ordinary; being present; tending towards love.
And we can do more to ground our spiritual practices in mutual relationships.
**Watch L’Arche core members and their assistants talk about what spirituality means to them.**
- [Loneliness, sex and ] relationships
- [Coping with sadness and grief]
**www.larche.org.uk/big-conversations-spirituality**
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## A church for everyone,
working to build relationships with people who have learning disabilities, and to travel the world after two years of Covid lockdowns.
And so, on 12th April 2023, five members of L’Arche Manchester hopped on the 07:10 flight to Gothenburg. From there, they gave a presentation and led a workshop on discipleship and made friends with another disability community. They returned with the distinct impression that a sophisticated Swedish “Fika” (sharing a cup of coffee with your friends) is not so very different from a good old Manchester brew.
In recent months, a big conversation has started in L’Arche about how everyone – Christians as well as people of other faiths or none – can really belong and express their spiritual life here.
Watch this short video to see who they met, and how their visit went down:
But from the very beginning of L’Arche, we have built special relationships with the Christian churches, connections that continue to this day. So when the Lutheran Diocese of Gothenburg got in touch to invite us to speak to their church leaders group about community, we couldn’t say no.
**www.larche.org.uk/sweden-trip**
## **Want to make your church more inclusive for everyone?**
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Building on decades of L’Arche
experience, Hazel Bradley and
This was a chance to share with the Jim Cargin’s Creative Ideas
church a message about including people for Worship with All Abilities
who are different, to meet other groups (Canterbury Press: 2019)
is the book for you!
Purchase it online here:
bit.ly/creative_worship
GOT
MAN
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This was a chance to share with the church a message about including people who are different, to meet other groups
**L’Arche Timeline 1964 – 2024**
## **A changing world for people with learning disabilities**
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Second World War ends. The The first L’Arche Community opens in
1964
1945 mass murder of disabled Trosly-Breuil, France
people during the Holocaust
is uncovered A L’Arche Charter is signed, setting out a
1972
vision for all new Communities
The movement to bring
From people with learning On 24th January, John Boorman,
1950s disabilities out of long-stay Bill Armstrong, and David Turnham
institutions gains momentum arrive at “Little Ewell” house from 1974
Eastry Hospital. The first L’Arche UK
Mental Heath Act (England Community begins.
and Wales; 1960 Scotland)
1959
rejects institutionalisation in Within five years, five new L’Arche
favour of ‘community care’ Communities have opened in Kent (‘74),
1978
Inverness (‘75), Liverpool (‘76), London
Group homes become the (‘77) and Bognor Regis (‘78)
1980s
norm for people with learning
- disabilities. Increasing There are now 8 L’Arche Communities
professionalisation and in Britain, with new foundations in 2000
1990s
regulation of social care Brecon (‘88), Edinburgh (‘91), Preston (‘98)
New laws protecting the An Identity and Mission Process to
1990s rights of people with define L’Arche’s mission in the new 2002
-
disabilities including millennium begins with a meeting of
- Community Care Act, Disability the L’Arche International Federation in 2005
2005s Discrimination Act, SENDA, Swanwick, Derbyshire
Mental Capacity Act
The L’Arche National Speaking Council
2008
Valuing People – Government is established.
White Paper on learning
2001 disability promotes support L’Arche Nottingham begins their pattern
of weekly fellowship meeting, and will 2011
services for independent
be accepted as a L’Arche project in 2014
living
UK signs the UN Convention The founding of L’Arche Ipswich (‘06)
2007 on the Rights of Persons with and L’Arche Manchester (‘13) takes the 2013
Disabilities number of UK Communities to ten
Global financial crisis, L’Arche is granted Special Consultative
leading to public spending Status on the United Nations Economic 2015
cuts. Many people with and Social Council
2008 learning disabilities living
L’Arche UK adopts new Articles of
“independently” find
Association and Regulations for 2018
themselves lonely and with
insufficient support Governance and Leadership.
Jean Vanier inquiry and Study 2020 -
BBC Panorama programme
Commission report 2023
reveals widespread abuse at
Winterbourne View Hospital
2011 The Federation Assembly adopts a new
and ongoing institutionalisation 2023
Charter
of people with learning
disabilities in the UK L’Arche UK 50th Anniversary 2024
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FROM THE
ARCHIVES...
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## **What we are doing so L’Arche will flourish**
In our Jubilee year, we are investing in the ambitions, people and systems that will enable L’Arche to survive and thrive in the UK for the long-term.
## **Ambition**
## **People**
## **Systems**
**We are clarifying the next steps in our 3 Big Conversations on Impact, Spirituality and Voice and Power, which began in 2022-23.**
By the end of our Jubilee year, we will have developed a strategy for L’Arche UK, with new mandates and a 2030 plan, which identifies the key long-term choices we face. This strategy will then be embedded into our formation, recruitment and policies.
**We are devising an action plan for our Voice and Power project, which includes training people with learning disabilities and refreshing our National Speaking Council and listening groups.**
We will step up our
recruitment by developing three new live-in models tailored for a UK audience. We are bringing more diversity into key leadership roles, and recruiting coordinators at local level to ensure volunteers participate fully in our community life.
We are producing a new Values, Behaviours and Skills Framework which will form the people we need to lead and build community in L’Arche.
Following on from our Big Conversation we are launching a survey to help us better evaluate our impact upon the lives of people with and without learning disabilities.
**We are creating a quality framework with quality assurance systems focused on outcomes. We are modernising our service provision by piloting a digital rostering system and digitising our care records.**
We will ensure long-term financial sustainability by ensuring we get better real-time data to support financial ownership and management, and creating budget plans which identify the choices Communities need to take in order to return a budget surplus. We will generate fundraising growth by developing our projects and partnerships and identifying new income streams.
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Once described by Bill Clinton as “The Woodstock of the mind”, the Hay Literary Festival features the biggest names in the arts and literature, sciences and academia. And not only these.
A discarded paperback is transformed into a lovely notebook, a one-off. Lost leaves are gathered and revamped as wrapping or some kind of decoration. Men and women with learning disabilities, too often considered unemployable, are honoured as beloved colleagues, skilled crafters,
Tucked away between the luxury clothing exhibitors and the gourmet food and drink stands, a Rebound Books workshop sets out its stall. Upcycled journals and notepads, cards, diaries and bookmarks are placed on display.
cherished members of their team and their community.
...turning At the 2023 Hay Festival, unloved books Rebound Books finally got into beautiful the recognition they deserve, receiving the Bronze Award treasures... for Sustainability.
Throughout the year, Rebound Books is a quiet hub of industry. The workshop can be found in the eaves of The Muse, a grand old Edwardian building rooted in the heart of Brecon, more recently reclaimed as a cultural centre for the town. But for two weeks each summer, they pack up their stock and decamp a few miles down the road to Hay-on-Wye.
Check out: **reboundbooks.co.uk** to order today.
The workshop specialises in turning unloved books into beautiful treasures - the only project of its kind in the country.
They are experts at spotting potential which others too quickly miss. Nothing goes to waste; everything is redeemed.
**larche.org.uk/unwanted-treasures**
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## **Thank You!**
## Your donations, legacies and fundraising challenges
We want a radically inclusive world where people with and without learning disabilities thrive together in body, mind and spirit.
We want to change the world:
- [When it is unfair and ] unkind to people with learning disabilities.
- [When it does things to ] people with disabilities, not with them.
- [When it disconnects us ] from others and from our full selves.
**Your support over the past year has helped us to progress our vision, support our people and improve our systems. Please continue to support us where you can to help L’Arche survive and thrive for a new generation.**
## 2022-2023 **Income**
|1|General Donations|£622,467|
|---|---|---|
|2|Government Grants|£18,392|
|3|Donations for UK Projects|£532,148|
|4|Donations for L’Arche International|£248,218|
|5|Support Income|£13,865,836|
|6|Housing Income|£1,920,355|
|7|Other Income|£431,621|
||**Total**|**17,639,037**|
## 2022-2023 **Expenditure**
|1|Employment costs|£13,480,934|
|---|---|---|
|2|Living Costs|£613,451|
|3
4|Housing Costs
Day Service Costs|£1,966,361
£58,316|
|5|Admin and Travel|£671,771|
|6|Legal Costs|£278,445|
|7|Support Costs|£283,834|
|8|Other Costs|£14,351|
|9|Depreciation|£404,518|
|10|Fundraising and Communications|£390,364|
|11|Donations to L’Arche International and
other charities|£203,428|
||**Total**|**£18,365,773**|
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7 1 2 3
6 4
Income
5
7 [8] [9] 10 [11]
6
5
4
3
2 Expenditure
1
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## How you can get
**Help us grow**
L’Arche aims to be a place where life lived to the full with learning disabilities is possible. To do this we are committed to both brilliant care and joyful community life as people with and without disabilities share friendships, homes and spirituality.
**Help our Communities to thrive**
In a social care crisis, our ambition is for L’Arche to be a beacon of what care provision can be – and what life with learning disabilities can be – as we imagine the next 5 and 50 years. That means excellence as a state-funded social care provider, but also clarity about our extra impact, funded by those who share our values.
## **involved**
**Help us reach more people**
To disrupt exclusion and crisis, and bring joy and build community, we need people like you to join us with a single gift, regular support, or maybe a little time. We want to draw out the gifts of people with learning disabilities in our Communities as well as sharing these within our society
## Regular **donations**
A regular donation to L’Arche can help us to plan long-term and give our Communities the security to develop community life, improve the homes of our members, and ensure that L’Arche can continue to make known the gifts of people with learning disabilities.
**Giving** Leaving a gift – also known as a ‘legacy’ – in your will to L’Arche is one way you can help to support our mission to give people with learning disabilities a colourful life, with a real sense of belonging, rich in meaning and acceptance.
**Please sign up today and make a regular donation of whatever you can afford, whether that’s the cost of a coffee per month, right up to a transformational sum.**
## **www.larche.org.uk/donate**
A free will or codicil service and opportunity to leave a long-term gift to support L’Arche’s work is available.
**...it’s not something we’d ever**
**thought of before, but now we’ve had a baby, putting our affairs in order was crucial...** Tom and Sally.
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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
(A company limited by guarantee)
17
## CONTENTS PAGE
||Page|
|---|---|
|Reference and administrative details
of the Charitable Company, its Trustees and advisers|19|
|Trustees’ report|20-33|
|Independent auditors’ report on the financial statements|34-37|
|Statement of financial activities|38|
|Balance sheet|39|
|Statement of cash flows|40|
|Notes to the financial statements|41-61|
(A company limited by guarantee)
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REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2023
|**TRUSTEES**|Aedan MacGreevy|
|---|---|
||Nigel Mapp (appointed 13 September 2023)|
||Joanna McCall (appointed 13 September 2023)|
||Anne Winter (appointed 13 September 2023)|
||Martin Weale|
||Jane Brown|
||Peter Oakes|
||Roland Clark|
||Isobel Gray|
||Susan Williams|
||Laura Harper (resigned 13 September 2023)|
||Benedict Moorhead (resigned 14 September 2022)|
||Marie Roberts (resigned 28 June 2023)|
|**REGISTERED OFFICE**|10 Briggate|
||Silsden|
||Keighley|
||West Yorkshire|
||BD20 9JT|
|**INDEPENDENT AUDITORS**|BHP LLP|
||Centurion Way|
||Cleckheaton|
||West Yorkshire|
||BD19 3QB|
19
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2023
The Trustees are pleased to present their Strategic and Trustee Report for the year ending 31st July 2023, including the preceding pages, which are also prepared to meet the requirements for a Directors’ Report and Accounts for Companies Act purposes.
The Financial Statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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 (FRS102).
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National Board National Leadership Team Community Leaders
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|**National Board**|**National Leadership Team**|**Community Leaders**|
|---|---|---|
||||
|Aedan MacGreevy
- National Chair|John Casson
- National Leader|Liis Revell
- Kent|
|Sue Williams
- National Vice Chair|Kathleen Boyle
- Deputy National Leader
- until 21 December 2023|Chris Gehrke
- Highland|
|Roland Clark
- National Treasurer|Alexina Mwense
- Director of Finance and IT
- from 13 September 2023|Stacey Owen
- Liverpool|
|Peter Oakes
- Safeguarding Lead|Laura Harper
- Director of Care and Community
- from 18 December 2023|Lucy Winter
- London|
|Marie Roberts
- HR and Whistleblowing Lead|James Cuming
- Regional Leader South and Wales|Sarah Shallis
- Bognor Regis|
|Jane Brown
- Manchester|Des Kennedy
- Regional Leader North and Scotland|Jill Farmer
- Brecon|
|Isobel Gray
- Edinburgh|Hannah Lythe
- Director of Fundraising & Comms
- December 2022|Kirsty MacCrimmon
- Edinburgh|
|Laura Harper
- London
- until 11 September 2023|Sam Davies
- Director of Fundraising & Comms -
from 13th June 2023|David Knowles
- Preston|
|Martin Weale
- Brecon|Louise Carter
- Mission Formation|David Hockley
- Ipswich|
|Nigel Mapp|Sarah Harrison
- Human Resources|Nem Tomlinson
- Manchester|
|Joanna McCall|Debbie Walker
- Head of Finance Operations
- until 20 February 2024|Caireen Detain
- Nottingham (project)|
||Tony Humphreys
- Head of Finance and IT
Transformation until 31 October 2023||
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OBJECTIVES AND ACTIVITIES
## STRATEGIC REPORT
## ACHIEVEMENTS AND PERFORMANCE
## **A. MAIN ACHIEVEMENTS OF THE CHARITABLE COMPANY**
This was the first year back after the Covid pandemic, which saw us inhibited by the lockdown and the ensuing recruitment crisis seen across the care sector. In spite of this, we managed to deliver high quality and relational care across our Communities, as well as driving development across several areas outlined below:
## **IMPACT.**
This year, L’Arche gained clarity on what our Communities would like us to achieve, by embarking on a L’Arche wide consultation about the difference L’Arche makes and wishes to make.
## **SPIRITUALITY.**
L’Arche designed and launched, a 12 month “Big Conversation” to engage people with and without disabilities across L’Arche to re-engage with our shared spirituality and identify the new life we have now. It was steered by a listening group including members of our senior leadership team, and support from external theologians, spiritual and church leaders.
## **VOICE AND POWER.**
L’Arche launched a Voice & Power project with the aim to create an environment where people with a learning disability can be heard, empowered, and able to fully participate.
## **IT INFRASTRUCTURE.**
We completed the first of a 3-year programme to give us IT systems to simplify and ensure our core compliance and management processes, to enable more flexible insight and collaboration, and to liberate people from their desks and their paperwork to be more present to each other in community.
## **B. KEY PERFORMANCE INDICATORS**
## **IMPACT.**
Over the past year, we have worked with New Philanthropy Capital (NPC) to engage with our Communities and identify the difference that L’Arche is seeking to make and foster clarity and unity in defining the long-term change that L’Arche wants to see.
## **SPIRITUALITY.**
We launched our Spirituality video, along with specially created inclusive tools as part of a listening phase of our Big Conversation on Spirituality, to help capture the actuality of spiritual life in L’Arche. These were co-designed with our Core members and Communities and shared with stakeholders across L’Arche.
## **VOICE AND POWER.**
We recruited two people to co-facilitate this project, one with and one without learning disabilities, both in paid roles on the same salary who are supported by a project manager who in turn reports to our Deputy National Leader. The Co-Leads were tasked to identify key priorities to equipping people with learning disabilities both in L’Arche, and in our society, to be heard and empowered.
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## **IT INFRASTRUCTURE.**
Our IT transformation programme launched in 2022 to create an ecosystem of digitisation and collaboration. We have made progress against delivering improved systems and processes, including:
- Moving to a cloud-based IT platform, including staff training and on-boarding.
- Launching a pilot of digital care software to manage care service quality and staff management systems, digitising all care records via phone and tablet apps.
- Progressing a new integrated and more automated finance system and processes.
## **C. FACTORS RELEVANT TO ACHIEVE OBJECTIVES**
## **IMPACT.**
We will embed the learnings from the difference that L’Arche makes into how we talk about L’Arche internally and externally. We will launch a new impact survey, Quality Framework, and a Values, Behaviours and Skills Framework to help identify areas that can be improved within our Communities. We will develop a new housing vision to meet the needs of our Communities over the coming years, and a 2030 strategy and mandate to help L’Arche deliver the change that our Communities want to see in L’Arche and in wider society.
## **SPIRITUALITY.**
We will create a new vision and explanation of spirituality in L’Arche, as a basis for real depth alongside real inclusion, rooted in our reality of relationships across deep differences.
## **VOICE AND POWER.**
We will devise an action plan for our Voice and Power project, to include training people with learning disabilities and refreshing our National Speaking Council and listening groups.
## **IT TRANSFORMATION.**
We will continue to modernise our service provision by piloting a digital rostering system and digitising our care records. We will rebuild reserves through tighter financial management and better real-time data to support financial ownership and management.
## **D. INVESTMENT POLICY AND PERFORMANCE**
In accordance with the investment powers contained in the Articles of Association, monies not immediately required for the day-to-day operation of the Company may be held in investments, securities or property. During the financial year concerned, the Company has sought to minimise risk by holding its reserves in instant access cash deposits.
22
FINANCIAL REVIEW
## **A. GOING CONCERN**
The Trustees have reviewed the financial performance and the general reserves position for 2023. L’Arche continues to operate in a financially challenging environment, competing for funding from Local Authorities who are under long-term financial pressure, and recruiting in a tight social care labour market seeing double-digit increases in pay levels and energy costs. Apart from Local Authority funding, L’Arche also funds some of its operations through fundraising income. The fundraising environment remains challenging after the COVID pandemic and cost of living pressures. Overall, the financial environment is expected to remain challenging as the cost of living and energy bills remain high. To counter these challenges L’Arche UK is streamlining its costs, reviewing its contractual and fundraised income to ensure the generation of income is maximised. The trustees have prepared a 12-month cashflow forecast from the date of signing of these financial statements and despite this broadly challenging financial environment, are confident that the charity has adequate reserves to continue its operations for the going concern period. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
## **B. RESERVES POLICY**
In common with similar organisations supporting people with learning disabilities, and in line with Charity Commissioners’ advice that reserves are needed for reasons of sound financial management and operational planning, L’Arche holds a General Fund in addition to its Development and Fixed Asset Funds (see Note 18 of the Financial Statements).
At 31st July 2023, L’Arche held total reserves of £ 12,954,533 (2022: £13,712,845). Free reserves totalled £2,135,554 (2022: £2,884,811) and were held in the General Fund.
The Unrestricted Development Fund represents donations and grants received without a specific restriction. The Trustees designate unrestricted donations and grants received by a community to projects within that community. They may also, if they deem it appropriate, designate the profit on the sale of assets to a community development fund to ensure that the spirit of the original gift is reflected in future investment.
The General Fund is held primarily to protect against interruptions to our main income flow and to sustain working cash balances to cover fluctuations in operating costs. The current level of unrestricted General Funds of £2,190,042 (2022: £2,936,545) represents 6.1 weeks (2022: 10.2 weeks) of community operating expenditure.
This reduction in general fund reflects a decision by the Trustees to invest in digital transformation and in protecting recruitment in an exceptional period of wage inflation. The statutory nature of most of our services gives some protection against fluctuations in income, but medium-term the Trustees’ objective is to hold reserves over 10 weeks of operation.
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## **C. FINANCIAL REVIEW**
In 2022/23 we have spent down £145k from Restricted funds and £334k from our Development Funds set aside in previous years. We have made good progress across various IT and digital care projects. To achieve this, we have recruited a Head of IT, who has led the IT and digital care Transformation. Projects included implementing a new Finance System – Business Central, which will allow for better reporting, improved visibility of financial information for budget holders, therefore, better quality decision making.
Part of the plan to digitise our care, is to transfer our Core Member records to a platform called Nourish, which offers numerous advantages for care services as it ensures accurate recording of care by transforming paper-based plans into detailed, easily accessible digital records, improving care quality and facilitating quick identification of trends and gaps. This work is ongoing and is expected to be rolled out in the next financial year.
## **D. FINANCIAL RESULTS**
The Statement of Financial Activities shows an overall deficit of £758,312 (2022: Surplus £363,224). In previous years our annual accounts have also analysed the outturn in terms of an “operating surplus/deficit”. Analysing on the same basis produces an operating deficit of £303,952 (2022: Surplus £33,207).
The Trustees consider that the Charity has one operating activity: the care and support of people with learning disabilities.
## **E. DONATIONS AND GRANTS**
Income from fundraising was slightly higher than in the previous financial year at £1,421,225 (2022: £1,154,691). Unrestricted donations increased to £622,467 (2022: £339,883) due primarily to the amount received from legacies. UK restricted donations decreased to £798,758 (2022: £814,808) as we didn’t have a capital appeal in this financial year.
We continued to strengthen the Fundraising and Communications team therefore our expenditure for the year was £390,364 (2022: £404,140).
Government grant funding for additional costs resulting from Covid was further reduced during the year although the devolved governments continued to fund awards to carers in Scotland and Wales. Some local authorities also awarded funding towards the costs of our assistants self-isolating, having tested positive for Covid. As a result, Covid grant funding fell from £32,031 in 2022 to £18,392.
**Review: Overall this remains a good result in very challenging times, and we continue to be grateful for the support offered by both long term and new supporters.**
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## **F. INCOME FROM CHARITABLE ACTIVITIES**
Our income from Charitable Activities continues to rise, in excess of £16 million. Overall, it rose by £1,172,821 to £16,176,965 (2022: £15,004,144).
As vacancies were filled our support income increased to £13,865,836 (2022: £13,011,244) with housing income also showing a strong performance at £1,920,355 (2022: £1,625,202). We continued to review support packages in response to changing needs and historical underfunding
**Review: Securing annual fee increases from some local authorities remains challenging, but others awarded helpful uplifts. In Scotland, Government policy is that we are funded at a level that allows us to pay our assistants Real Living Wage as defined by the Living Wage Foundation and annual uplifts reflect this. In England, awards were mixed, with an average of 6.5% across.**
## **G. DIRECT CHARITABLE EXPENDITURE**
Expenditure on our services increased by £2,506,013 to £17,771,981 (2022: £15,265,968) The main factor behind this increase was staffing costs which rose from £12,051,899 in 2022 to £13,758,791 in 2023.
**Review: Recruitment and retention remains challenging across the social care sector, and L’Arche continues to face vacancies, turnover, and elevated spend on agency staff. In the year in question our recruitment was assisted by the new Health Care Worker visa route, easing our overall recruitment crisis. We also drew on reserves to increase pay above the level of fee increases, in the light of high inflation. Recruiting voluntary workers as live-in Community Members remains a significant long-term challenge, worsened by post-Brexit visa requirements, long delays in visa decision-making, and a high rate of visa refusals. As a result, our traditional live in community model is seriously challenged. We are seeking alternative models designed to appeal more to people based in the UK, as a volunteering community experience.**
## **H. CHARITABLE DONATIONS**
A donation of £3,000 (2022: £3,000) was made during the year to the L’Arche Benevolent Trust, a registered charity with the objectives of assisting employees and ex-employees of L’Arche who may require financial support as a result of personal hardship. Donations to L’Arche International totalled £197,436 (2022: £120,097) and donations to other charitable organisations £2,992 in total (2022: £100).
## **I. BALANCE SHEET**
Balance sheet net assets reduced from £13,712,845 to £12,954,533. Cash balances at £2,474,850 (2022: £4,497,532) reflecting a reduction in cash of £2,022,682, this is mainly due to spending of our Restricted and Development Funds on purchases which included; the Ark in Ipswich and IT Transformation and delays in our credit control process. The debtor as at July 2023 was £3,051,189 (2022: £2,619,928).
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## **J. RISK REGISTER**
As L’Arche marks it’s 50th anniversary in the UK, we continue to evolve in response to both external demands and internal listening processes focused on how to implement our mission with more impact in a new era. We have recruited 3 new Directors to add capacity and additional expertise to the National Team’s support to Fundraising and Communications, Finance and IT, and Care and Community.
We are mid-way through the most significant update of our IT infrastructure, which will transform all areas of our operation and which will see a move from paper-based record keeping to digital care records. The work to implement and manage this change is significant and we have therefore added a new risk to the register to recognise this.
This year we have seen continuity in community leadership, with only one change in community leader, which was planned and for which an internal candidate was successfully appointed. This has helped to provide stability and reduced some risks. We also judge the risk of further scandal arising from Jean Vanier revelations to be reducing.
However, in common with the whole social care sector, L’Arche financial situation has tightened in the last year, with inflation running at a high level, and not all fee increases keeping pace. This has an impact on the salaries which we are able to offer, and this has an impact on our ability to recruit and retain both live-in and live-out assistants of the right quality. Particular challenges around recruiting live-ins to support our model of community impacts on our community ethos and financial model. This year, in order to support our live-in recruitment, we are piloting new live-in roles to attract UK applicants and to reduce the reliance on people on Tier 5 visas.
The most serious risks we now face are in the table below, scored 1-5 for both impact and likelihood, to give a risk score. We also describe what we are doing to mitigate the risks, and score these for High, Medium or Low effectiveness.
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**----- Start of picture text -----**
Risk Area 1: Financial Sustainability Mitigation (M)
Tier 5 applications are rejected resulting in Lobbying of UKVI to reduce the number
insufficient numbers of live-ins to support our of visa rejections we are receiving. New
model of community recruitment post maintained. Pilots under
(Impact 4 x Likelihood 5 = Risk score 20) way for new style of live-in role to attract UK
applicants and reduce reliance on T5 visas.
Finance transformation programme fails to
Mitigation (H)
deliver comprehensive financial data for first
part of year Monitoring of KHIs in place – agency spend,
(Impact 3 x Likelihood 5 = Risk score 15) total staffing budget, No. of live-ins, voids.
Risk Area 2: Mission and Identity Mitigation (M)
Community, spirituality and outreach dwindle- Big Conversation on Spirituality. Supervision
due to lack of vision, volunteers, funds, of Community Leaders and liaison with local
investment in formation and leadership, and Chairs by Regional Leader. Chairs report
appointment of senior leaders without annually to National Board. Improved website
L’Arche history. and higher profile on social media achieved.
(Impact 5 x Likelihood 3 = Risk score 15) Formation is in place· but completion rates are
too low, so attention needed here. Formation
to include senior leaders and Board.
Risk Area 3: Care and Housing Mitigation (M)
Housing is unfit to meet long-term aspirations New Housing Quality and Development
of core members and expectations of Manager appointed. Will lead on
commissioners. implementing Housing. Strategy agreed with
(Impact 3 x Likelihood 4 = Risk Score 12) Board. This is a medium to long term risk.
Risk Area 4: Recruitment / Retention Mitigation (M)
Failure to recruit and retain the live-out Job evaluation scheme has ensured mid-level
assistants and leaders we need to provide leadership salaries are fairer, but recruitment
services safely and fill voids. to the whole sector remains a challenge. Tier
2 has provided a new route, which decreases
impact of not recruiting UK assistants.
Risk Area 5: Reputation Mitigation (M)
Scandal of abuse Training for leaders, improved policies and
procedures for reporting and investigating
allegations.
Risk Area 6: Leadership Mitigation (H)
Leaders in communities overloaded/ Supervision by Regional Leaders. Prompt
distracted/ burnt out/ leaving/ not able to be support offered by specialists in national
replaced. team when required. Peer support in place.
New digital systems will provide clearer
oversight, but task of installation and
adoption is significant.
**----- End of picture text -----**
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STRUCTURE, GOVERNANCE AND MANAGEMENT
## **A. ORGANISATIONAL STRUCTURE**
L’Arche is a company limited by guarantee and a charity registered in England and Wales and in Scotland. The organisation was incorporated on 18th May 1972 and is currently governed by Articles adopted on 24th February 2018. Its principal objects which can be summarised as providing support and training for people with learning disabilities by opening and running Community networks, homes and work opportunities, thereby fostering personal development and citizenship.
There are currently ten L’Arche Communities in the UK, with one project under development. Set up in response to the initiative of a local group, a typical Community comprises a number of houses, supported living settings and, where appropriate and commissioned, day activities, spread out within an urban setting and run as a unified service. In this way, Community members are more easily able to integrate with the wider neighbourhood and thereby develop and maintain important links with individuals and groups beyond L’Arche
## **B. MANAGEMENT**
The National Leader/CEO is appointed by the National Board and reports to the Trustees through the National Chair. As leader of the executive management structure, the National Leader/CEO is responsible for supervising a team of Directors of Care and Communities, HR, Finance and IT, Mission Formation, Fundraising and Communications and Regional Leaders.
All members of this Leadership Team are permanent employees. The National Leader/CEO is also a member of the L’Arche International Leadership Team and reports to the International Federation of L’Arche through the International Leader.
The two Regional Leaders (covering Scotland and the North of England, and Wales and the South of England) are responsible for supporting the Communities, supervising Community Leaders and ensuring the Communities discern their local mission priorities and objectives, while living faithfully L’Arche’s Identity & Mission and being compliant with commissioning and statutory requirements.
Other members of the National Leadership Team are respectively responsible for care and communities; for human resources; for formation and leadership development; for fundraising and communication; and for finance and the national finance team which is based at the registered office, accountable for financial matters to the National Board through the Finance Director and National Leader/CEO.
Day-to-day responsibility for each Community is delegated to the Community Leader/Director who is supported by a coordinating team, typically responsible for care and support services, housing, HR, day activities, and administration. Members with learning disabilities are encouraged and enabled to play an active part in decisions regarding their own support, their house or support service, and their Community.
L’Arche members with learning disabilities contribute to UK-wide governance and management decisions through a representative National Speaking Council, which meets twice a year, and once a year with the Board.
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## **C. TRUSTEES**
L’Arche is governed by a National Board, the members of which are Directors of the Company with trustee responsibilities. The full board has 11 members and normally meets five times a year in addition to the AGM.
Board members serve a maximum of 12 years. Recruitment of new National Board members results from a regular review of the necessary mix of skills and experience required for governance. Five members are drawn from the group of chairs of local L’Arche committees, and five are independent of the communities, with vacancies advertised in national and local publications as well as through professional agencies and other networks. Potential candidates are appointed after a process of interviews, references and other checks.
New members’ induction and training is achieved through a combination of written material, meetings and training days, in addition to local Community visits, to ensure they are not only aware of their responsibilities as trustees but understand the ethos and practice of L’Arche in supporting people with learning disabilities.
## **D. EQUAL OPPORTUNITIES**
We have introduced an Applicant Tracking System which monitors our equal opportunities data and which anonymises applicant data enabling a robust short listing process. We have introduced an annual Equality Diversity and Inclusion survey which has seen high levels of staff engagement. We have been pleased to welcome new support workers on Health Care Workers visas. This has greatly increased our workforce diversity across the country and the Senior Care Worker visa route has also given us the possibility to retain some talented individuals in more senior roles.
We analyse the results of our annual employees’ survey in terms of protected characteristics including disability to see where our practices can be improved to ensure our commitment to diversity, equality and inclusion is translated into action.
## **E. DISABLED EMPLOYEES POLICY**
Our mission includes “we celebrate the unique value of every person and recognise our need of one another”. Key elements of this include our commitment to giving full and fair consideration of applicants for employment of disabled people, having regard to their aptitudes and abilities. We support the continuing employment and training of people who become disabled, including offering flexible working wherever possible. Reasonable adjustments are offered to training opportunities to ensure accessibility to disabled employees.
## **F. ENGAGEMENT WITH EMPLOYEES**
During the year we maintained and developed channels for engaging with employees. The Belong newsletter is a key way in which we continue to communicate news, updates and information to everyone across L’Arche. The results of the Diversity survey were shared widely across all areas of L’Arche along with an update on our progress with EDI. As a result of the feedback received we decided to create a peer-to-peer support group for live-ins.
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Most consultation with employees takes place locally including regular gatherings of all Community members, listening groups, Community Councils and assistant assemblies. Groups of employees and service users work together to develop local plans and recruit senior leaders. Employees from all locations and roles participate in listening groups and steering groups for key national initiatives.
The National and Regional Leaders regularly visit communities and hear direct from employees at all levels. As a not for profit charity, there is no scope for sharing profits with employees, but news on performance including care inspection reports is shared widely internally and via social media. The Directors remain acutely aware of the challenges our employees face in working in social care where remuneration is low, and all decisions are taken by balancing the effects on our financial viability, our workforce, and the people with disabilities we support.
## **G. REMUNERATION POLICY**
As part of our commitment to recruiting and retaining those who are committed to working for L’Arche because of our values, we conducted a comprehensive review of our remuneration policy. We used both sector based and other relevant benchmarks to ensure that our salaries were set at fair and competitive levels. In consultation with the local Communities we introduced a new system of salary bands that reflect the different levels of responsibility and offer the possibility of pay progression. We clarified our Employer Value Proposition, setting out clearly the tangible and intangible benefits of working for L’Arche and ensured that all of our current Terms and Conditions of employment were accurately reflected in the remuneration policy.
## **H. FUNDRAISING**
At L’Arche, our small team of in-house staff run fundraising campaigns and activities in line with the Chartered Institute of Fundraising’s Code of Fundraising Practice. We communicate fundraising messages by post and email, responding to our donors and supporters wishes.
As a Charity regulated by the Fundraising Regulator, we work to achieve the highest standards in how we communicate and fundraise with our donors and supporters. Our approach to developing long-term, and mutual relationships with our supporters underpins our approach to our fundraising and communications activities.
We use the services of a few carefully selected external companies to support us with occasional specialist skills to help us deliver specific activities, including external appeal mailings and development of new fundraising initiatives. We manage and monitor all fundraising work undertaken by others by providing clear guidelines and work briefs, spot checking, and including fundraising staff on appeal mailing lists.
Over the past year, we have not received any fundraising complaints. Fundraising complaints can be made through our fundraising@larche.org.uk email channel.
We protect vulnerable people by contacting known donors and supporters, curating the stories we tell carefully to avoid breaches of data protection for participants, by embracing ethical content creation, and reducing shock and distress for those we communicate with. We provide our staff with a variety of safeguarding and other relevant training, including Oliver McGowan training.
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## **I. COMPANY, CHARITY & TAX STATUS**
The Company is limited by guarantee, with no shareholdings. The liability of the 51 members (2022: 46) is limited to £1 each. The Company is registered as a charity in England and Wales and in Scotland with the Office of Scottish Charity Regulator.
The Company is not liable to income tax, corporation tax or capital gains tax. It is not registered for VAT, since taxable supplies are below the level requiring registration.
## **J. PUBLIC BENEFIT DISCLOSURE**
L’Arche has referred to the Charity Commission’s guidance on public benefit when reviewing our aims, objectives and activities and can confirm that the Charity’s Trustees have complied with the duty in s.4 of the Charities Act 2006 to have due regard to the Charity Commission’s published general and relevant sub-sector guidance concerning the operation of the Public Benefit requirement under that Act.
## **K. FUTURE CAPITAL COMMITMENTS**
Capital project commitments outstanding at the year-end totalled nil (2022: £nil).
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## **INVESTMENT POLICY**
In accordance with the investment powers contained in the Articles of Association, monies not immediately required for the day-to-day operation of the Company may be held in investments, securities or property. During the financial year concerned, the Company has sought to minimise risk by holding its reserves in instant access cash deposits.
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The Trustees (who are also the directors of the Charitable Company for the purposes of company law) are responsible for preparing the Trustees’ report including the Strategic 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 Charitable Company and of its incoming resources and application of resources, including its 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 Charitable Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitable Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
32
**DISCLOSURE OF INFORMATION TO AUDITORS**
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 charity’s auditors are unaware, 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 charity’s auditors are aware of that information.
## **AUDITORS**
A resolution to re-appoint BHP LLP as the Company’s auditors will be proposed at the annual general meeting.
Approved by order of the members of the board of Trustees and signed on their behalf by:
Aedan MacGreevy (Chair of Trustees)
Date: 9th April 2024
33
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF L’ARCHE
We have audited the financial statements of L’Arche (the ‘charitable company’) for the year ended 31 July 2023, which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company’s affairs as at 31 July 2023, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006; and
- have been prepared in accordance with the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
34
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF L’ARCHE (CONTINUED)
## **Other information**
The other information comprises the information included in the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report, which includes the strategic report and the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report included within the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006, requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF L’ARCHE (CONTINUED)
## **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 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 charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor 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:
We focused on laws and regulations, relevant to the company, which would give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statements disclosure to the underlying supporting documentation, enquiries with management, review of operations of controls within the year, in particular income, expenditure, payroll, review of provisions and review of expenses. There are inherent limitations in the audit procedures described 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.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the FRC’s website at: **www.frc.org.uk/auditorsresponsibilities.**
This description forms part of our auditor’s report.
36
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF L’ARCHE (CONTINUED)
## **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, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
## **Lesley Kendrew (Senior statutory auditor)**
for and on behalf of
## **BHP LLP**
Centurion Way Cleckheaton West Yorkshire BD19 3QB
Date: 9th April 2024
37
## L’ARCHE FINANCIAL STATEMENTS
## STATEMENT OF FINANCIAL ACTIVITIES
(INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2023
**----- Start of picture text -----**
Note Endowment Restricted Unrestricted Total Total
funds funds funds funds funds
2023 2023 2023 2023 2022
£ £ £ £ £
**----- End of picture text -----**
|**Income and**
**endowments from:**
Donations and grants
2
Charitable activities
3
Profit on disposal of fixed
assets
4
Investments
5
**Total income and**
**endowments**
**Expenditure on:**
Raising funds
6
Charitable activities
7
Other expenditure
8
**Total expenditure**
**Net**
**(expenditure)/income before**
**net losses on investments**
Net losses on
investments
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought
forward
Net movement in funds
**Total funds carried**
**forward**|-
-
-
-|**798,758**
-
-
-|**622,467**
**16,176,965**
-
**40,847**|**1,421,225**
**16,176,965**
-
**40,847**|1,154,691
15,004,144
15,062
5,040|
|---|---|---|---|---|---|
|||**798,758**|**16,840,279**|**17,639,037**|16,178,937|
||-
-
-|-
**747,938**
**197,436**|**390,364**
**17,024,043**
**5,992**|**390,364**
**17,771,981**
**203,428**|404,140
15,265,968
123,197|
|||**945,374**|**17,420,399**|**18,365,773**|15,793,305|
||-
**(34,330)**|**(146,616)**
**-**|**(580,120)**
**2,754**|**(726,736)**
**(31,576)**|385,632
(22,408)|
||**(34,330)**|**(146,616)**|**(577,366)**|**(758,312)**|363,224|
||**96,075**
**(34,330)**|**1,147,656**
**(146,616)**|**12,469,114**
**(577,366)**|**13,712,845**
**(758,312)**|13,349,621
363,224|
||**61,745**|**1,001,040**|**11,891,748**|**12,954,533**|13,712,845|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 41 to 61 form part of these financial statements.
38
L’ARCHE BALANCE SHEET AT 31ST JULY 2022
**----- Start of picture text -----**
Note 2023 2022
£ £
**----- End of picture text -----**
|**Fixed assets**
Tangible assets
13
Investments
14
**Current assets**
Debtors
15
Cash at bank and in hand
Creditors:
amounts falling due within one year
16
**Net current assets**
**Total assets less current liabilities**
Creditors:
amounts falling due after more than one year
17
**Total net assets**
**Charity funds**
Endowment funds
18
Restricted funds
18
Unrestricted funds
18
**Total funds**|**3,051,189**
**2,474,850**|**8,934,452**
**116,233**|2,619,928
4,497,532|8,430,818
147,809|
|---|---|---|---|---|
|||**9,050,685**
**4,125,716**||8,578,627
5,378,654|
||**5,526,039**
**(1,400,323)**||7,117,460
(1,738,806)||
||||||
|||**13,176,401**
**(221,868)**||13,957,281
(244,436)|
|||**12,954,533**||13,712,845|
|||**61,745**
**1,001,040**
**11,891,748**||96,075
1,147,656
12,469,114|
|||**12,954,533**||13,712,845|
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 were approved and authorised for issue by the Trustees and signed on their behalf by:
**Aedan MacGreevy** (Chair of Trustees) Date: 9th April 2024
**Roland Clark** (Trustee)
Date: 9th April 2024
The notes on pages 41 to 61 form part of these financial statements.
39
L’ARCHE CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST JULY 2023
**----- Start of picture text -----**
Total funds Total funds
2023 2022
£ £
**----- End of picture text -----**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Investment income receipts
Finance costs paid
**Net cash (used in)/provided by investing activities**
**Cash flows from financing activities**
Repayments of borrowing
**Net cash used in financing 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**|**(1,123,799)**
**-**
**(909,408)**
**40,847**
**(14,351)**
**(882,912)**
**(15,971)**
**(15,971)**
**(2,022,682)**
**4,497,532**
**2,474,850**|227,415|
|---|---|---|
|||775,122
(427,767)
5,040
(3,208)|
|||349,187|
|||(17,837)|
|||(17,837)|
|||558,765
3,938,767|
|||4,497,532|
The notes on pages 41 to 61 form part of these financial statements.
40
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2022
## 1. ACCOUNTING POLICIES
## **1.1 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.
L’Arche 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.
## **1.2 Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Income**
All income is recognised once the Charitable Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charitable Company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charitable Company, can be reliably measured.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
41
Incoming resources from charitable activities represents the aggregate of residents’ income support, local and central government grants and receipts and other non-government receipts provided for the maintenance of the communities and their residents.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Donations for L’Arche International and Overseas Communities - where donations have been raised for the specific purpose of distribution to L’Arche Overseas Communities, to minimise administration costs there can be a delay in the transfer of these funds to the projects for which they have been given. The size of the sums involved warrant separate disclosure from other funds donated to L’Arche UK.
## **1.4 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each 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.
Expenditure on raising funds includes all expenditure incurred by the Charitable Company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charitable Company’s objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **1.5 Government grants**
Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.
## **1.6 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charitable Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
42
**1.7 Foreign currencies**
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.
Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.
Exchange gains and losses are recognised in the Statement of financial activities.
## **1.8 Tangible fixed assets and depreciation**
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
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, using the straight-line method.
The estimated useful lives are as follows:
|Freehold buildings
- 40 years|
|---|
|Long-term leasehold property - period of lease|
|Short-term leasehold property - period of lease|
|Motor vehicles
- 4 years|
|Tools and equipment
- 4 years|
Freehold land is excluded from depreciation on the basis of value at date of acquisition.
## **1.9 Investments**
All investments are stated at market value. The market value of listed investments is derived from prices quoted on the PLUS market (formerly OFEX). Unrealised changes made to the balance sheet market values are reflected in the Statement of Financial Activities.
Investments held as fixed assets are shown at cost less provision for impairment.
## **1.10 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.
## **1.11 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.
43
**1.12 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 Charitable Company 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 Statement of financial activities as a finance cost.
## **1.13 Financial instruments**
The Charitable Company 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.
## **1.14 Operating leases**
Rentals paid under operating leases are charged to the Statement of financial activities on a straight-line basis over the lease term.
## **1.15 Pensions**
The Charitable Company auto enrols qualifying employees as members of a group personal pension scheme, administered by Royal London. The Company’s contributions are included in Resources Expended in the Statement of Financial Activities in the year in which the contributions are made.
## **1.16 Fund accounting**
The General Fund consists of amounts received which have yet to be committed or designated to a specific use by the Company. The Development Fund comprises grants and donations received for or appropriated to development projects. It contains amounts either restricted by the donor or designated by the Company for specific purposes. The Fixet Asset Fund, Unrestricted and Endowed, represents the net book value of property and other tangible fixed assets less longterm borrowings on property.
44
## 2. INCOME FROM DONATIONS AND LEGACIES
|||**Restricted**
**funds 2023**
**£**||**Unrestricted**
**funds 2023**
**£**||**Total funds**
**2023**
**£**|
|---|---|---|---|---|---|---|
|**Donations**
Received for L’Arche UK
Received for L’Arche International
**Government grants**
CJRS Grant Income||532,148
248,218
18,392
798,758||622,467
-
-
622,467||**1,154,615**
**248,218**
**18,392**|
|||||||**1,421,225**|
||||||||
|**Income from donations and legacies (continued)**||**Restricted**
**funds 2022**
**£**||**Unrestricted**
**funds 2022**
**£**||**Total funds**
**2022**
**£**|
|**Donations**
Designated to the Development Fund
Received for UK Development
Received for L'Arche International
**Government grants**
CJRS Grant Income||-
459,248
323,529
32,031
814,808||339,883
-
-
-
339,883||339,883
459,248
323,529
32,031|
|||||||1,154,691|
45
## 3. INCOME FROM CHARITABLE ACTIVITIES
|||||**Unrestricted**
**funds 2023**
**£**||**Total funds**
**2023**
**£**|
|---|---|---|---|---|---|---|
|Income from Care and Support Provision
Income from Housing Services
Other funding
Sundry receipts
Sale of products||||13,865,836
1,920,355
325,709
37,777
27,288
16,176,965||13,865,836
**1,920,355**
**325,709**
**37,777**
**27,288**|
|||||||**16,176,965**|
||||||||
|**Income from charitable activities (continued)**||**Restricted**
**funds 2022**
**£**||**Unrestricted**
**funds 2022**
**£**||**Total funds**
**2022**
**£**|
|Income from Care and Support Provision
Income from Housing Services
Other funding
Sundry receipts
Sale of products||-
-
-
-
1,039
1,039||13,011,244
1,625,202
230,899
113,260
22,500
15,003,105||13,011,244
1,625,202
230,899
113,260
23,539|
|||||||15,004,144|
## 4. INCOME FROM OTHER TRADING ACTIVITIES
|**Income from fundraising events**||**Total funds**
**2023**
**£**|
|---|---|---|
|Profit on disposal of fixed assets
-|||
|||**Unrestricted**
**funds 2022**
**£**||**Total funds**
**2022**
**£**|
|---|---|---|---|---|
46
## 5. INVESTMENT INCOME
**----- Start of picture text -----**
Unrestricted Total funds
funds 2023 2023
£ £
Income from investments 36,905 36,905
Bank interest 3,942 3,942
40,847 40,847
Restricted Unrestricted Total funds
funds 2022 funds 2022 2022
£ £ £
Income from investments 156 1,489 1,645
Bank interest - 3,395 3,395
156 4,884 5,040
6. EXPENDITURE ON RAISING FUNDS
Fundraising trading expenses Unrestricted Total funds
funds 2023 2023
£ £
Fundraising 26,203 26,203
Publicity 85,048 85,048
Wages and salaries 277,857 277,857
Fundraising depreciation 1,256 1,256
390,364 390,364
Fundraising trading expenses continued Restricted Unrestricted Total funds
funds 2022 funds 2022 2022
£ £ £
Fundraising 28,523 2,673 31,196
Publicity - 79,794 79,794
Wages and salaries - 288,801 288,801
Fundraising depreciation - 4,349 4,349
28,523 375,617 404,140
**----- End of picture text -----**
47
## 7. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES
|**Summary by fund type**||**Restricted**
**funds 2023**
**£**||**Unrestricted**
**funds 2023**
**£**||**Total funds**
**2023**
**£**|
|---|---|---|---|---|---|---|
|Employment and training
Household costs and community activities
Occupancy costs
Repairs, maintenance and renewals
Depreciation
Workshop costs
Ofce costs
Motor and travel
Legal and professional / governance costs
Loan interest
Direct support and development||240,481
395,760
-
49,210
-
-
-
-
-
-
62,487
747,938||13,240,453
217,691
1,365,304
551,847
404,518
58,316
531,338
140,433
278,445
14,351
221,347
17,024,043||**13,480,934**
**613,451**
**1,365,304**
**601,057**
**404,518**
**58,316**
**531,338**
**140,433**
**278,445**
**14,351**
**283,834**|
|||||||**17,771,981**|
||||||||
|**Summary by fund type (continued)**||**Restricted**
**funds 2022**
**£**||**Unrestricted**
**funds 2022**
**£**||**Total funds**
**2022**
**£**|
|Employment and training
Household costs and community activities
Occupancy costs
Repairs, maintenance and renewals
Depreciation
Workshop costs
Ofce costs
Motor and travel
Legal and professional / governance costs
Loan interest
Direct support and development
Loss on disposal of fixed assets||98,049
3,234
-
11,611
-
600
4,669
306
-
-
196,507
-
314,976||10,927,444
564,453
1,383,889
474,395
394,295
49,918
230,396
65,038
156,962
3,208
695,573
5,421
14,950,992||11,025,493
567,687
1,383,889
486,006
394,295
50,518
235,065
65,344
156,962
3,208
892,080
5,421|
|||||||15,265,968|
48
## 8. OTHER EXPENDITURE
|||**Restricted**
**funds 2023**
**£**||**Unrestricted**
**funds 2023**
**£**||**Total funds**
**2023**
**£**|
|---|---|---|---|---|---|---|
|Donations to L'Arche International
Donations to L'Arche Benevolent Trust
Other donations||197,436
-
-
197,436||-
3,000
2,992
5,992||**197,436**
**3,000**
**2,992**|
|||||||**203,428**|
||||||||
|||**Restricted**
**funds 2022**
**£**||**Unrestricted**
**funds 2022**
**£**||**Total funds**
**2022**
**£**|
|Donations to L'Arche International
120,097
-
120,097
Donations to L'Arche Benevolent Trust
-
3,000
3,000
Other donations
-
100
100
120,097
3,100
123,197
L’Arche Benevolent Trust is an independent registered charity with the objective of assisting employees and ex- employees of
L’Arche who may require financial support as a result of personal hardship.
9. ANALYSIS OF EXPENDITURE BY ACTIVITIES||||||120,097
3,000
100|
|||||||123,197|
|||**Activities**
**undertaken**
**directly**
**2023**
**£**||**Support**
**costs**
**2023**
**£**||**Total funds**
**2023**
**£**|
|Employment and training
Household costs and community activities
Occupancy costs
Repairs, maintenance and renewals
Depreciation
Workshop costs
Ofce costs
Motor and travel
Legal and professional / governance costs
Loan interest
Direct support and development||13,480,934
613,451
1,365,304
601,057
404,518
58,316
-
-
-
-
-
16,523,580||-
-
-
-
-
-
531,338
140,433
278,445
14,351
283,834
1,248,401||**13,480,934**
**613,451**
**1,365,304**
**601,057**
**404,518**
**58,316**
**531,338**
**140,433**
**278,445**
**14,351**
**283,834**|
|||||||**17,771,981**|
49
## 9. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)
**----- Start of picture text -----**
Activities Support Total funds
undertaken costs 2022
directly 2022 £
2022 £
£
**----- End of picture text -----**
|Employment and training
Household costs and community activities
Occupancy costs
Repairs, maintenance and renewals
Depreciation
Workshop costs
Ofce costs
Motor and travel
Legal and professional / governance costs
Loan interest
Direct support and development
Loss on disposal of fixed assets|11,025,493
567,687
1,383,889
486,006
394,295
50,518
-
-
-
-
-
-
13,907,888|-
-
-
-
-
-
235,065
65,344
156,962
3,208
892,080
5,421
1,358,080|**11,025,493**
**567,687**
**1,383,889**
**486,006**
**394,295**
**50,518**
**235,065**
**65,344**
**156,962**
**3,208**
**892,080**
**5,421**|
|---|---|---|---|
||||**15,265,968**|
## 10. AUDITORS’ REMUNERATION
|||**2023**
**£**||**2022**
**£**|
|---|---|---|---|---|
|Fees payable to the Charitable Company’s auditor for the audit of the Charitable Com-
pany’s annual accounts
19,150
16,610
Fees payable to the Charitable Company’s auditor in respect of:
All non-audit services not included above
6,025
-|||||
50
## 11. STAFF COSTS
**----- Start of picture text -----**
2023 2022
£ £
**----- End of picture text -----**
||**2023**
**£**|**2022**
**£**|
|---|---|---|
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**12,451,689**
**1,000,741**
**306,361**
**13,758,791**|10,975,111
810,253
266,535|
|||12,051,899|
At the year end, premiums were outstanding to the pension scheme provider of £3,724 (2022: £nil).
The key management personnel of the Charity comprises the Trustees and the National Leadership Team - the National Leader, Deputy National Leader, Regional Leaders, Head of Human Resources, Head of Finance, Fundraising Director and Mission Formation Director.
The total remuneration of the National Leadership Team was £468,218 (2022: £469,445).
**----- Start of picture text -----**
The average number of persons employed by the Charitable Company 2023 2022
during the year was as follows: No. No
Communities 422 398
25 20
Administration and Finance
11 6
Fundraising and Publicity
458 424
**----- End of picture text -----**
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|||**2023**
**No.**||**2022**
**No**|
|---|---|---|---|---|
|In the band £70,001 - £80,000
**1**
1|||||
## 12. TRUSTEES’ REMUNERATION AND EXPENSES
During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).
During the year ended 31 July 2023, expenses totalling £1,137 were reimbursed or paid directly to six Trustees (2022 - £nil).
51
## 13. TANGIBLE FIXED ASSETS
**----- Start of picture text -----**
Freehold Long-term Short-term
land leasehold leasehold Motor Tools and
and buildings buildings buildings vehicles equipment Total
£ £ £ £ £ £
**----- End of picture text -----**
||**Freehold**
**land**
**and buildings**
**£**|**Long-term**
**leasehold**
**buildings**
**£**|**Short-term**
**leasehold**
**buildings**
**£**|**Motor**
**vehicles**
**£**|**Tools and**
**equipment**
**£**|**Total**
**£**|
|---|---|---|---|---|---|---|
|**Cost or valuation**
At 1 August 2022
Additions
Disposals
At 31 July 2023
**Depreciation**
At 1 August 2022
Charge for the year
On disposals
At 31 July 2023
**Net book value**
At 31 July 2023
At 31 July 2022|**10,384,720**
**870,578**
**-**
**11,255,298**
**3,113,926**
**252,815**
**-**
**3,366,741**
**7,888,557**
7,270,794|**750,778**
**-**
**-**
**750,778**
**393,913**
**16,924**
**-**
**410,837**
**339,941**
356,865|**887,858**
**15,366**
**-**
**903,224**
**323,052**
**39,949**
**-**
**363,001**
**540,223**
564,806|**195,529**
**-**
**-**
**195,529**
**126,371**
**28,807**
**-**
**155,178**
**40,351**
69,158|**1,407,760**
**23,464**
**(22,054)**|**13,626,645**
**909,408**
**(22,054)**
**14,513,999**
**5,195,827**
**405,774**
**(22,054)**
**5,579,547**
**8,934,452**
8,430,818|
||||||**1,409,170**||
||||||**1,238,565**
**67,279**
**(22,054)**||
||||||**1,283,790**
**125,380**||
||||||169,195||
Leasehold buildings are sub-divided into those held under short-term leases (50 years and under) and those held under long-term leases (over 50 years)
## 14. FIXED ASSET INVESTMENTS
|**Cost or valuation**||**Listed**
**investments**
**£**||**Quoted**
**investments**
**£**||**Total**
**£**|
|---|---|---|---|---|---|---|
|At 1 August 2022
Revaluations
At 31 July 2023||**96,075**
**(34,330)**
**61,745**||**51,734**
**2,754**
**54,488**||**147,809**
**(31,576)**|
|||||||**116,233**|
||||||||
|**Net Book Value**|||||||
|At 31 July 2023
At 31 July 2023
All investments are in the United Kingdom.||**61,745**
96,075||**54,488**
51,734||**116,233**|
|||||||147,809|
||||||||
The listed investments were given to L’Arche as an endowment and comprise 1,050 shares in Adnams Brewery, an Aquis Stock Exchange company, with a market value of £58.80 per share at 31st July 2023 (2022: £91.50).
52
## 15. DEBTORS
**----- Start of picture text -----**
Due within one year 2023 2022
£ £
**----- End of picture text -----**
|**Due within one year**|**2023**
**£**|**2022**
**£**|
|---|---|---|
|Residents fees due
Other debtors
Prepayments and accrued income|**2,226,247**
**328,015**
**496,927**
**3,051,189**|1,899,336
452,041
268,551|
|||2,619,928|
## 16. CREDITORS
|||**2023**
**£**||**2022**
**£**|
|---|---|---|---|---|
|Triodos loan
Other taxation and social security
Other creditors
Accruals and deferred income||**16,483**
**288,324**
**498,642**
**596,874**
**1,400,323**||16,483
223,872
642,268
856,183|
|||||1,738,806|
||||||
|||**2023**
**£**||**2022**
**£**|
|Residents grants received in advance at 1 August 2022
Resources deferred during the year
Amounts released from previous periods||**286,348**
**193,588**
**(286,348)**
**193,588**||63,848
286,348
(63,848)|
|||||286,348|
Residents grants received in advance refers to funding received from statutory bodies and we would anticipate it would be no greater than 1 month in respect of individual residents.
53
17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
|||**2023**
**£**||**2022**
**£**|
|---|---|---|---|---|
|Triodos loan
Other creditors||**144,643**
**77,225**
**221,868**||160,614
83,822|
|||||244,436|
||||||
|**The aggregate amount of liabilities payable or repayable wholly or in part more than**
**five years after the reporting date is:**||**2023**
**£**||**2022**
**£**|
|Payable or repayable by instalments||**78,711**
**78,711**||101,358|
|||||101,358|
The Triodos loan at Ipswich is secured on 3 Warrington Road, Ipswich, with an interest rate fixed at 1.25% over base and is for a period of 25 years.
54
## 18. STATEMENT OF FUNDS
**----- Start of picture text -----**
Balance at Transfers Gains/ Balance at 31
Statement of funds - 1 August 2022 Income Expenditure in/out (Losses) July 2023
current year £ £ £ £ £ £
Unrestricted funds
General Fund 2,936,545 16,840,279 (16,680,128) (909,408) 2,754 2,190,042
Development Fund 1,262,365 - (333,985) - - 928,380
Fixed Asset Fund 8,270,204 - (406,286) 909,408 - 8,773,326
12,469,114 16,840,279 (17,420,399) - 2,754 11,891,748
Endowment funds
Endowment Fund 96,075 - - - (34,330) 61,745
Restricted funds
Transforming Lives - Expanding
the Contribution of People with
Learning Disabilities in Society 6,341 11,000 (8,471) - - 8,870
New Communities 66,476 - - - - 66,476
Capital & Refurbishment Appeals 132,759 275,000 (395,760) - - 11,999
Investing in Leadership, Young
People & Infrastructure for
Growth 247,741 204,964 (235,584) - - 217,121
Investment in Programmes &
Projects Of L’Arche International 283,529 248,218 (197,436) - - 334,311
Local Community Projects 408,957 41,184 (108,123) - - 342,018
Other 1,853 18,392 - - - 20,245
1,147,656 798,758 (945,374) - - 1,001,040
Total of funds 13,712,845 17,639,037 (18,365,773) - (31,576) 12,954,533
**----- End of picture text -----**
55
## 18. STATEMENT OF FUNDS (CONTINUED)
## **Purpose of restricted funds**
**Transforming Lives - Expanding the Contribution of People with Learning Disabilities in Society** To Develop resources to help people with learning disabilities deepen their spiritual lives
## **New Communities**
Nottingham and Scotland
## **Capital & Refurbishment Appeals**
Ipswich - Purchase of The Ark, supported living house London - The Dove Manchester - Day Service Development Manchester - The Rose, supported living house
## **Investing in Leadership, Young People & Infrastructure for Growth**
Leadership Development Programme Assistant Induction Programme Big Conversation - Voice and Power Big Conversation - Impact Big Conversation - Spirituality Investment in Charity Infrastructure Jubilee Celebrations Volunteers Coordination
## **Investment in Programmes & Projects of L’Arche International**
India Africa Poland Haiti Bethlehem Ukraine International Local Community Projects Various projects in the Communities
56
## 18. STATEMENT OF FUNDS - PRIOR YEAR
**----- Start of picture text -----**
Balance at Transfers Balance at 31
Statement of funds - 1 August 2021 Income Expenditure in/out July 2022
current year £ £ £ £ £
**----- End of picture text -----**
|**Unrestricted funds**
General Fund
Development Fund
Fixed Asset Fund
**Endowment funds**
Endowment Fund
**Restricted funds**
Transforming Lives - Expanding
the Contribution of People with
Learning Disabilities in Society
New Communities
Capital & Refurbishment Appeals
Investing in Leadership, Young
People & Infrastructure for
Growth
Investment in Programmes &
Projects Of L’Arche International
Local Community Projects
Other
**Total of funds**|**2,471,194**
**704,520**
**8,999,246**
**12,174,960**
**100,275**
17,650
67,340
279,038
159,700
95,644
453,161
1,853
1,074,386
13,349,621|**15,362,934**
**-**
**-**
**15,362,934**
**-**
-
2,705
17,758
322,807
323,685
117,017
32,031
816,003
16,178,937|**(15,347,917)**
**-**
**-**
**(15,347,917)**
**(4,200)**
(11,309)
(3,569)
(38,073)
(208,403)
(135,800)
(34,411)
(32,031)
(463,596)
(15,815,713)|**450,334**
**557,845**
**(729,042)**|**2,936,545**
**1,262,365**
**8,270,204**|
|---|---|---|---|---|---|
|||||**279,137**|**12,469,114**|
|||||**-**|**96,075**|
|||||-
-
(125,964)
(26,363)
-
(126,810)
-|6,341
66,476
132,759
247,741
283,529
408,957
1,853|
|||||(279,137)|1,147,656|
|||||-|13,712,845|
57
## 19. SUMMARY OF FUNDS
|**Summary of funds -**
**current year**|**Balance at**
**1 August 2022**
**£**|**Balance at**
**1 August 2022**
**£**|**Income**
**£**|**Income**
**£**|**Income**
**£**|**Expenditure**
**£**|**Expenditure**
**£**|**Expenditure**
**£**|**Transfers**
**in/out**
**£**|**Transfers**
**in/out**
**£**|**Transfers**
**in/out**
**£**|**Gains/**
**(Losses)**
**£**|**Balance at 31**
**July 2023**
**£**|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|**Unrestricted funds**
General Fund
Endowment funds
Restricted funds|**12,469,114**
**96,075**
**1,147,656**
**13,712,845**||**16,840,279**
**-**
**798,758**
**17,639,037**|||**(17,420,399)**
**-**
**(945,374)**
**(18,365,773)**|||||**-**
**-**
**-**|**2,754**
**(34,330)**
**-**|**11,891,748**
**61,745**
**1,001,040**
**12,954,533**|
||||||||||||**-**|**(31,576)**||
|||||||||||||||
|**Summary of funds**
**- prior year**||**Balance at**
**1 August 2021**
**£**||||**Income**
**£**||**Expenditure**
**£**||||**Transfers**
**in/out**
**£**|**Balance at 31**
**July 2022**
**£**|
|**Unrestricted funds**
General Fund
Endowment funds
Restricted funds||12,174,960
100,275
1,074,386
13,349,621||||15,362,934
-
816,003
16,178,937||(15,347,917)
(4,200)
(463,596)
(15,815,713)||||279,137
-
(279,137)
-|12,469,114
96,075
1,147,656|
||||||||||||||13,712,845|
## 20. ANALYSIS OF NET ASSETS BETWEEN FUNDS
|**Analysis of net assets between funds**
**- current year**||**Endowment**
**funds**
**2023**
**£**||**Restricted**
**funds**
**2023**
**£**||**Unrestricted**
**funds**
**2023**
**£**|**Total**
**funds**
**2023**
**£**|
|---|---|---|---|---|---|---|---|
|Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year||-
61,745
-
-
-
61,745||-
-
1,001,040
-
-
1,001,040||8,934,452
54,488
4,524,999
(1,400,323)
(221,868)
11,891,748|**8,934,452**
**116,233**
**5,526,039**
**(1,400,323)**
**(221,868)**|
||||||||**12,954,533**|
58
## 20. ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED)
|**Analysis of net assets between funds**
**- prior year**||**Endowment**
**funds**
**2022**
**£**||**Restricted**
**funds**
**2022**
**£**||**Unrestricted**
**funds**
**2022**
**£**|**Total**
**funds**
**2022**
**£**|
|---|---|---|---|---|---|---|---|
|Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year||-
96,075
-
-
-
96,075||-
-
1,147,656
-
-
1,147,656||8,430,818
51,734
5,969,804
(1,738,806)
(244,436)|8,430,818
147,809
7,117,460
(1,738,806)
(244,436)|
|||||||12,469,114|13,712,845|
21. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES
**----- Start of picture text -----**
2023 2022
£ £
**----- End of picture text -----**
||**2023**
**£**|**2022**
**£**|
|---|---|---|
|Net income/expenditure for the year (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Unrealised loss on investments
Investment income receipts
Loss/(profit) on the sale of fixed assets
Increase in debtors
Increase/(decrease) in creditors
Finance costs paid
**Net cash provided by/(used in) operating activities**|**(758,312)**|363,224|
||**405,774**
**31,576**
**(40,847)**
**-**
**(431,261)**
**(345,080)**
**14,351**|409,165
22,408
(5,040)
(9,641)
(736,474)
180,565
3,208|
||**(1,123,799)**|227,415|
59
## 22. ANALYSIS OF CASH AND CASH EQUIVALENTS
|||**2023**
**£**|**2022**
**£**|
|---|---|---|---|
|Cash in hand
**Total cash and cash equivalents**||**2,474,850**|4,497,532|
|||**2,474,850**|4,497,532|
## 23. ANALYSIS OF CHANGES IN NET DEBT
|||**At 1 August**
**2022**
**£**||**Cash flows**
**£**|**At 31 July**
**2023**
**£**|
|---|---|---|---|---|---|
|Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year||**4,497,532**
**(16,483)**
**(160,614)**
**4,320,435**||**(2,022,682)**
**-**
**15,971**|2,474,850
(16,483)
(144,643)|
|||||**(2,006,711)**|2,313,724|
## 24. CAPITAL COMMITMENTS
|**Contracted for but not provided in these financial statements**||**2023**
**£**|**2022**
**£**|
|---|---|---|---|
|Acquisition of tangible fixed assets
**-**
880,000||||
At 31st July 2023, no contractual commitments had been entered into in respect of the above project.
At 31st July 2023, the total pledges received in respect of the above projects totalled £nil (2022 - £235,000)
60
## 25. OPERATING LEASE COMMITMENTS
**----- Start of picture text -----**
At 31 July 2023 the Charitable Company had commitments to make future 2023 2022
minimum lease payments under non-cancellable operating leases as follows: £ £
**----- End of picture text -----**
|**At 31 July 2023 the Charitable Company had commitments to make future**
**minimum lease payments under non-cancellable operating leases as follows:**|**2023**
**£**|**2022**
**£**|
|---|---|---|
|Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years|**32,986**
**199,415**
**806,000**|10,561
42,244
177,777|
||**1,038,401**|230,582|
The majority of the company’s leases of land and buildings are subject to rent review periods ranging between 3 and 5 years. All leases currently held by L’Arche are operating leases.
## 26. RELATED PARTY TRANSACTIONS
There were no related party transactions in either the current or previous financial period.
61
## **Memberships and Associations:**
## **AUDITOR**
BHP LLP
New Chartford House, Centurion Way, Cleckheaton, West Yorkshire, BD19 3QB
## **BANKERS**
National Westminster Bank plc
63 North Street, Keighley, West Yorkshire BD21 3SB
Royal Bank of Scotland plc PO Box 5663, 1st Floor, Affric House, Beechwood Park, Inverness IV2 3YR
## **L’Arche**
A company limited by guarantee Registered in England and Wales, No. 1055041 Registered Charity Nos. 264166 and SC038493 Registered Office: 10 Briggate, Silsden, Keighley, West Yorkshire BD20 9JT **Tel:** 01535 656186 Fax: 01535 656426 **Email:** info@larche.org.uk **Website:** www.larche.org.uk