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2022-03-31-accounts

DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

Company Number: 2348350 Charity Number: 801122

THE ORCHARD TRUST (Limited by Guarantee)

FINANCIAL STATEMENTS

For the Year Ended 31 March 2022

DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

C O N T E N T S

Page
OFFICERS AND ADVISORS 1
CHAIRMAN’S REPORT 2
REPORT OF THE TRUSTEES
3 - 8
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS 9 - 11
STATEMENT OF FINANCIAL ACTIVITIES 12 - 13
BALANCE SHEET 14
STATEMENT OF CHANGES IN EQUITY 15
STATEMENT OF CASH FLOWS 16
NOTES TO THE FINANCIAL STATEMENTS
17 - 27

DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) OFFICERS AND ADVISORS FOR THE YEAR ENDED 31 MARCH 2022

Trustees Mr N Budd
Mr B Kaye
Mrs J Morris Kaye
Mrs S Henchley
Mr R Morgan
Mrs R Dodsworth
Mrs C Smart
Mrs E Hewison
Mr C Lloyd
Mrs E C Bell
Chief Executive Officer Mrs C Andrews
Registered and Administrative Office The Orchards
Lydbrook Valley Springs
Central Lydbrook
Lydbrook
Gloucestershire
GL17 9PP
Auditors Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT
Solicitors Harrison Clark Rickerbys
Ellenborough House
Wellington Street
Cheltenham
GL50 1YD
Bankers Lloyds TSB
19 Eastgate Street
Gloucester
GL1 1NU
Company Number 2348350 (England and Wales)
Charity Number 801122

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) CHAIRMAN’S REPORT FOR THE YEAR ENDED 31 MARCH 2022

Once again we report a year of opportunities dashed as covid made face to face activities challenging, and the role of the staff in the Homes particularly difficult. One by one the Homes were forced to go into lockdown as covid took its toll, and available staff numbers went down. The dedication of staff has been wonderful, and the Trustees thank them profusely for doing extra hours and making sure that our people were safe during such difficult times.

The fundraising team has again been very successful in applying for grants and donations. The opening of the new pool was the highlight, enabled by grants of thousands of pounds. A further grant has enabled us to appoint a Community Liaison Officer, who is doing sterling work promoting the Trust and the Stowfield site in particular, and liaising with organisations throughout Gloucestershire. In all, the Fundraising team have raised over £81,000 this year. A splendid result!

Sadly, it was again decided that the Summer Fair would be virtual, in order to keep our people safe. However, a good sum of £1,600 was raised. This was used for “extras” for the people we support, including a favourite of mine, iPads to aid communication.

We were delighted when, in November, Liz Bell applied to become a trustee. She is proving to be a very valuable addition to the board, full of knowledge and spontaneous in offering her practical help.

We continue to have good, positive relationships with the local authorities who are involved with our clients. We are confident that we provide excellent care, and opportunities for our clients to develop at our Day Centre, smallholding and in the pool and rebound rooms. We look forward to providing more excellent care and facilities for them for the foreseeable future.

Sue Henchley Chairman of Trustees The Orchard Trust

Date: 22/11/2022

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their report together with the audited financial statements (“accounts”) of the company for the year ended 31 March 2022.

PURPOSE AND IMPACT

The Orchard Trust (referred to as the Trust from now on) was established in 1989 by a group of parents who were looking to improve care options for their children and others with learning disabilities. Having grown over the past 30 years the Trust provides residential care, supported living homes, short break (respite) beds, rebound therapy, hydropool therapy and day services based on a working smallholding which is open to all who may wish to benefit from the services.

To see more about our homes and facilities please visit our website: www.orchard-trust.org.uk

Philosophy of the Orchard Trust

Orchard Trust believes people with disabilities have the same rights as any other individual and support each to enjoy the services and opportunities available to any other member of the community.

Values

Kindness - We treat others and ourselves with gentleness, warmth and care, focusing on the little things that really matter.

Respect - We look after ourselves, each other, our places and the environment.

Individuality - We recognise one another for the people we are, understanding and accepting preferences and beliefs to ensure personalised care and support.

Working together - We believe the best results are gained through working as a team, valuing suggestions and encouraging new ideas as we strive to continuously improve the care we provide .

The Trust’s values reflect the intrinsic behaviours of staff within the organisation and daily decisions are enhanced by the ongoing focus provided by the values.

Objectives (Mission)

We are a consistent and long-term place for life for people with disabilities, with a warm and friendly environment where each individual is supported to realise their ambitions.

Activities

Our mission is achieved by working towards the following aims:

  1. Consistently look for innovation and fresh ideas to improve the care we provide

  2. Ensuring each staff member has the skills and attributes of our values through effective recruitment, ongoing support, development and shared vision.

  3. Building financial resilience through diversification of income, internal efficiencies and the provision of added value through alternative funding

  4. Expanding the reach of our day services site to benefit the wider community

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Achievements and Performance

The key achievements of the Trust against its activities and thus its objectives during the 2021/22 financial year are as follows:

VALUES AND WAYS OF WORKING

The Trust is deeply committed to providing high quality and positive-risk based care. To support sharing of learning and best practice the Trust has many internal committees to provide effective two-way feedback between all services and management. These include:

Due to covid restrictions many of these groups have met virtually and more frequently to ensure easy sharing of updates to guidance and risk assessments. Sadly, Trust our Voice has not adapted well to virtual meetings and this group has not met for many months. Once it is safe to do so the group will restart face to face. Carers and sharers have also adapted the way they interact and a circle of support was set up between families to maintain contact through the covid period.

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Ensuring our work delivers our mission

The Trust ensures all actions contribute to achieving its mission through regular monitoring of performance by CQC and local authority monitoring visits, external expert by experience quality visits, family and staff questionnaires, Trustee buddy visits, senior manager and peer visits along with an internal ‘mum’ test. The board has referred to the guidance contained in the Charity Commission’s general guidance on public benefit when determining how our current and future activities meet the Trust’s objectives.

Staff Pay Award

Although fee uplifts effective from April 2020 received from Local Authorities and Clinical Commissioning Groups did not cover the full impact of the increase in national Living Wage the Trust chose to invest in its staff teams by providing all staff a pay increase along with increasing the differential between care worker and team leader, reflecting the increased responsibilities required of the leader role. A pay progression route allows opportunity for salary increases through qualifications and length of service and support the Trusts aim to ensure each staff member has the skills and attributes of our values through effective recruitment, ongoing support, and training and shared vision. The Trust is delighted to continue to pay all staff above the National Living Wage reflecting the importance of the tasks they are doing and the gratitude the Trust has for their commitment and continuous hard work.

OPERATING MODEL AND RISKS

Risk

Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects. These procedures are regularly reviewed to ensure they meet the needs of the charity.

Principal identified risks

It was decided during the year to liquidate Independent Training and Development Ltd due to the financial impact of covid lockdowns and the shift towards virtual training within the Social Care sector. The business was liquidated on 22nd July 2021.

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Reserve Policy

The majority of the Trust’s income is received through local authority contracts for the specific care of an individual. Any surplus is used to ensure the Trust’s on-going sustainability and to improve the care environment.

All charities are required to consider the level of reserves they need to hold to cover both development opportunities and as resilience against unforeseen events. Additional cash reserves are considered by the Trustees to be essential to protect the activities of the Trust. In line with the general guidance provided by the Charity Commissioners and an understanding of the organisational risks, the Trustees calculate the unrestricted reserves held to be a minimum of six months expenditure with the aim to increase this to the 12-month figure. These amounts have increased from previous years following consideration of future Local Authority funding challenges and further uncertainties during the ongoing pandemic and increasing costs.

Currently, the maintained unrestricted reserves not committed or invested in tangible fixed assets (Residential Development Fund) is at £900,000. Any reserves over that sum could be allocated for future development, pending a suitable opportunity. The net asset value of the Trust is sufficient to release substantial funds in the event of a catastrophe.

GOVERNANCE AND DECISION MAKING

Orchard Trust

The Trustees in office in the year are detailed on page 1 of this report along with the names and addresses of relevant organisations providing banking services or professional advice to the Charity and its subsidiary.

The company does not have share capital, being limited by a guarantee of £1 from each of the Trustees. The Trustees act as Directors for company purposes.

The company is governed by its Memorandum and Articles of Association.

The Trustees have given due consideration to Charity Commission published guidance on the operation of the public benefit requirement.

At the year end the Board of Trustees comprised 10 Trustees, who are also Directors of The Orchard Trust for the purposes of company law. Operational responsibility lies with the Trust’s Senior Management team of Cathy Andrews, C.E.O.; Anthony Jeffers, Head of Support & Operations; and Kelly Ryder, Finance Manager.

The Trust holds six full board meetings per year, plus a minimum of three finance committee meetings, two investment committee meetings and three safeguarding committee meetings. Trustees also have representation on the health and safety committee and each service has a Trustee buddy who regularly visits the service to learn more about that service's specific challenges and thus bring greater knowledge to the board room.

Trustee Appointment and Training

Trustees are appointed by election to the Board. On induction, new Trustees are given a tour of the Trust's sites, meet key employees and are introduced to the other Trustees. Trustees are briefed on their legal obligations under charity and company law, as well as the aims and activities of the Trust and its recent financial performance. Trustees are encouraged to attend external training events where these facilitate the undertaking of their role.

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 MARCH 2022

Review of the accounts

The accounts follow a similar format to those of the preceding year in compliance with the accounting rules under SORP 2015.

The "Statement of Financial Activities" on page 12-13 shows the movements on all funds of the Trust, with the Balance Sheet on page 14. A Cash Flow Statement has again been included in the accounts on page 16. As in previous years, the report contains a Risk Analysis.

Borrowings

The Trust has borrowed no money during this period.

At the balance sheet date, cash reserves were higher than last year at £1,681,824. Total reserves increased from £6,054,574 to £6,391,667.

Investment Powers

Under the Memorandum and Articles of Association, the company has the power to make any investment which the Trustees see fit.

Financial Review

The full accounts of the Trust are included on pages 12-27. Cash balances at the year-end of £1,681,824 reflected careful management of the Trusts resources during financially challenging times.

Acquisitions and Disposals

There have been no substantial acquisitions or disposals during the period.

Statement of Trustees’ Responsibilities

The Trustees (who are also directors of The Orchard Trust Limited for the purposes of company law), are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law, the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the profit or loss of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

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.

Acknowledgements

We acknowledge HR support and guidance from WorkNest and PIB Insurance Brokers for dealing accordingly with our HR and insurance needs.

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 MARCH 2022

Statement of Disclosure to Auditor

In accordance with company law, as the Company's Directors, the Trustees have taken the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information. The Trustees confirm that there is no relevant information that they know of, and which they know the auditors are unaware of.

Fixed Assets

The Company re-valued its properties in March 2015. This revaluation, which has been reflected in these financial statements, is based on the open market valuation for existing use of £4,630,000, which is the basis required by UK Financial Reporting Standards. The valuation of the properties at the same date, on the assumption that they were fully operational and equipped having regard to trading potential, was £4,630,000.

Third Party Indemnity Insurance

The company incurred an annual premium of £1,382 to DE Ford Limited in relation to Trustee Indemnity Insurance.

Auditors

Hazlewoods LLP were reappointed as auditors in the year and have expressed their willingness to continue in office.

Signed by order of the Board of Trustees

Sue Henchley Chairman of Trustees The Orchard Trust Date: 22/11/2022

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

Opinion

We have audited the financial statements of The Orchard Trust for the year ended 31 March 2022, which comprise the Charity Statement of Financial Activities, the Charity Balance Sheet, the Charity Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion the financial statements:

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’s 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustee’s responsibilities statement set out on page 7, the trustees 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 directors 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 directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

Extent to which the auditor was considered capable of detecting irregularities, including fraud

Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planning and performed in accordance with the ISA’s (UK).

In identifying and assessing risks of material misstatement in respect of fraud, including irregularities and noncompliance with laws and regulations our procedures included the following:

...................................... Martin Howard (Senior Statutory Auditor) For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House Bayshill Road Cheltenham GL50 3AT

22/11/2022 Date:.............................

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted
Restricted
Total
fund
fund
funds
2022
2022
2022
Note
£
£
£
INCOME AND ENDOWMENTS
Income and endowments from:
Donations and legacies
Donations and gifts
20,180
72,362
92,542
Investments
Bank interest receivable
319
-
319
Charitable activities
Local Authority contracts
4,118,192
-
4,118,192
Other
Training income
36,925
-
36,925
Rental income
37,150
-
37,150
Other income
-
-
-
Government grants
3,864 230,347
234,211
_
_

_
Total income and endowments
4,216,630
302,709
4,519,339
_

_
_

EXPENDITURE ON
Charitable activities

2
(3,949,700)
(232,546)
(4,182,246)
_
_

_
Total expenditure
(3,949,700)
(232,546)
(4,182,246)
_

__
_
Net income for the year
14
266,930
70,163
337,093

Total
funds
2021
£
131,952
2,933
3,747,831
5,496
39,000
2,376
335,346
_
4,264,934
_

(4,066,317)
_
(4,066,317)
_

198,617

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted Unrestricted Restricted Total Total
fund fund funds funds
2022 2022 2022 2021
Note £ £ £ £
Reconciliation of funds
Funds brought forward at
1 April 6,020,929 33,645 6,054,574 5,855,957
Transfer between reserves 92,790 (92,790) - -
Net movement in funds 266,930 70,163 337,093 198,617
__ __ _ _
Funds carried forward at
31 March 14 6,380,649 11,018
6,391,667
6,054,574
The notes on pages 17 to 26 form part of these financial statements.
The Statement of Financial Activities has been prepared on the basis that all operations are continuing operat
Note of Historical Cost Income and Expenditure
2022 2021
£ £
Reported net movement in funds 337,093 198,617
Difference between historical cost
depreciation and the actual depreciation
charge of the year calculated on the revalued
amount 14,628 13,499
__ __
Historical cost net movement in funds 351,721 212,116

The Statement of Financial Activities has been prepared on the basis that all operations are continuing operations.

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) BALANCE SHEET AS AT 31 MARCH 2022

Company Number: 2348350

Note
£
Fixed assets
Tangible assets
6
Investments
7
Current assets
Stock
8
1,440
Debtors
9
227,300
Cash at bank and in hand
1,681,824
_
1,910,564
Creditors: Amounts falling due
within one year
10 (247,750)
_

Net current assets
Total assets less current liabilities
Funds
Restricted income funds 12,13,14
Unrestricted income funds:
13,14
Operational general fund
Property revaluation reserve
Designated funds


__
2022
£
£
4,727,923
930
_
4,728,853
1,440
284,779
1,285,820
_

1,572,039
(187,900)
_
1,662,814
_

6,391,667

11,018
4,516,376
964,273
900,000
__
6,391,667
2021
£
4,669,504
931
_
4,670,435
1,384,139
_

6,054,574
33,645
4,142,028
978,901
900,000
___
6,054,574

22/11/2022

The financial statements were approved by the Board of Trustees on _____ and signed on its behalf by:

Sue Henchley Chairman of Trustees The Orchard Trust

dodsw

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2022

Operational Property Designated
Restricted
general revaluation
fund
fund
fund
reserve
£
£
£
£
Funds brought forward
at 1 April 2021
4,142,028
978,901
900,000
33,645
Net incoming resources
266,930
-
-
70,163
before transfers
Depreciation on revalued
14,628
(14,628)
-
-
Amounts
Transfer between reserves
92,790
-
-
(92,790)
_
_

_
_
Funds carried forward
at 31 March 2022
4,516,376
964,273
900,000
11,018


Operational Property Designated
Restricted
general revaluation
fund
fund
fund
reserve
£
£
£
£
Funds brought forward
at 1 April 2020
3,937,802
992,400
900,000
25,755
Net incoming resources
before transfers
145,784
-
-
52,833
Depreciation on revalued
13,499
(13,499)
-
-
Amounts
Transfer between reserves
44,943
-
-
(44,943)
_

_
_

_
Funds carried forward
at 31 March 2021
4,142,028
978,901
900,000
33,645
Total
funds
£
6,054,574
337,093
-
-
_
6,391,667

Restated
Total
funds
£
5,855,957
198,617
-
-
_
6,054,574

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

2022 2021
Note £ £ £ £
Cash generated from in operating activities 15 598,068 333,481
Cash flows from investing activities
Interest income 319 2,933
Purchase of tangible fixed assets (203,883) (82,060)
Proceeds from sale of tangible assets 1,500 -
Cash provided by (used in) investing
activities (202,064)
(82,060)
Increase in cash and cash equivalents in
the year 396,004
254,354
Cash and cash equivalents at the beginning
of the year 1,285,820
1,031,466
Total cash and cash equivalents at the end
of the year 1,681,824
1,285,820

The charitable company does not have any debt and therefore an analysis of the debt has not been included in these financial statements.

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

_________________

1 ACCOUNTING POLICIES

Basis of Preparation

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain fixed assets, adopting the following principal accounting policies all of which are in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Charities Act 2011.

The financial statements are presented in Pounds Sterling.

Company status

The company is limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1. The company is subject to the requirements of the Companies Act 2006 with regards to the form and content of the financial statements.

The company is incorporated and domiciled in England and Wales.

The address of its registered office is: The Orchards Lydbrook Valley Springs Central Lydbrook Lydbrook Gloucestershire GL17 9PP

Judgements and estimation uncertainty

The trustees consider that there are no key areas of judgement or estimation uncertainty to be disclosed in these financial statements.

Tangible fixed assets and depreciation

Tangible fixed assets are stated in the accounts at cost or revalued amount less depreciation. Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life. The annual rates applied in this period were:

Freehold buildings (homes) 2% on written down value Farm 2% on written down value Plant and equipment 15% on written down value Office equipment and furniture 40% on written down value Motor vehicles 25% on written down value

No depreciation is provided on freehold land.

Stocks

Stocks are valued at the lower of cost and net realisable value.

Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risk of ownership remain with the lessor are charged to the Statement of Financial Activities.

Investments

Fixed asset investments are stated at cost less provision for diminution in value.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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1 ACCOUNTING POLICIES (continued)

Trade receivables

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All debtors are repayable within one year and are hence included at the undiscounted amount of the cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the Trust will not be able to collect all amounts due according to the original terms of the receivables.

Trade payables

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Trust does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Financial instruments

The trust 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.

Income and endowments

Income and endowments are allocated between:

Donations and legacies (analysed between donations/gifts and grants receivable)

Donations/gifts and grants are accounted for on a receivable basis. Funds collected, to which the charity is entitled, but not received before the end of the financial year, are included in income and endowments and in debtors.

Capital grants are recognised through the Statement of Financial Activities as income to restricted funds. A transfer is then made to the General Fund so as to write back the fund over the expected useful life of the relevant asset.

Income from charitable activities (fees from local authority contracts)

Income derives from the provision of education and residential care and is recognised in the Statement of Financial Activities on a receivable basis. Such income is exempt from Value Added Tax.

Income from Investments

Interest receivable is accrued on a daily basis.

Other income

Income arising from the provision of training is recognised on a receivable basis, and included within ‘Other income’.

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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1 ACCOUNTING POLICIES (continued)

Expenditure on Charitable activities

Expenditure on Charitable activities is included in the Statement of Financial Activities on an accruals basis, inclusive of any Value Added Tax, which cannot be recovered. Where expenditure is directly attributable to more than one activity, it is apportioned across cost categories on the basis of an estimate of the proportion of time spent by staff on those activities.

Funds

Funds held by the charity are either:

Taxation

The Company is an Exempt Charity within the meaning of Schedule 2 of the Charities Act 1993 and as such is a charity within the meaning of Section 519 of the Income Tax Act 2007 (formerly Section 506(1) of the Taxes Act 1988). Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Section 524 of the Income Tax Act 2007 (formerly Section 505 of the Taxes Act 1988) or Section 256 of the Taxation of Chargeable Gains Tax 1992 to the extent that such income or gains are applied to exclusively charitable purposes.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses of tax credits. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Pensions

The company operates a defined contribution scheme for certain employees. The contributions are charged to revenue in the period in which they are incurred.

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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2 EXPENDITURE ON CHARITABLE ACTIVITIES

Note
Provision of care and education:
Staff costs
4
Residents’ expenses
Transport costs
Property costs
Equipment maintenance
Other costs
Depreciation
Insurance
Support costs:
Staff costs
4
Property costs
Equipment maintenance
Insurance
Office costs
Sundry
Legal and professional fees
Bank charges
Bad debt expense
(Profit)/Loss on disposal of tangible fixed assets
Total expenditure on charitable activities
2022
£
3,102,229
180,002
46,571
120,283
71,507
35,572
145,346
47,078
_

3,748,588
_


318,765
6,331
3,764
2,478
42,860

138
52,866
1,804
6,034
(1,382)
_

433,658
_


4,182,246
2021
£
2,944,318
207,277
33,978
123,130
68,100
31,279
148,469
39,216
_
3,595,767
_

314,048
6,480
3,584
2,064
39,266
150
50,745
1,553
42,129
10,531
_
470,550
_

4,066,317

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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3 NET INCOME FOR THE YEAR

NET INCOME FOR THE YEAR
2022 2021
£ £
This is stated after charging:
Depreciation 145,346 148,469
Auditors’ remuneration 9,300 9,250

Third Party Indemnity insurance costs of £1,382 (2021 - £1,106) were incurred in the year in relation to Trustee Indemnity Insurance. The maximum indemnity under the policy was £2,000,000 (2021 - £2,000,000).

4 STAFF COSTS AND NUMBERS

Note
Staff costs:
Wages and salaries
Social security costs
Other pension costs

Analysed:
Staff costs included in provision of care and education
2
Staff costs included in support costs
2
Emoluments to Executive officer
2022
£
3,153,633
204,919
62,442
_
3,420,994

3,102,229
318,765
_

3,420,994

70,238
__
2021
£
3,009,312
188,801
60,253
_
3,258,366
2,944,318
314,048
_

3,258,366
70,940
__

The above represents the emoluments of the highest paid officer. No other employee earned more than £60,000. The trustees did not receive any remuneration.

2022 2021
Number Number
Management and administration 11 11
Nursing and care staff 182 177
____ ____
193 188

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

5 TAXATION

As The Orchard Trust is an exempt charity, it is exempt from taxation in respect of income or capital gains received.

6 TANGIBLE FIXED ASSETS

Cost
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
Eliminated on disposal
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
Residential
freehold
property
£
5,173,855
118,844
-
5,292,699
776,918
82,198
-
859,116
4,433,583
4,396,937
Farm
£
192,780
-
-
192,780
64,700
2,563
-
Plant &
equipment
£
18,873
-
-
18,873
13,635
786
-
14,421
4,452
5,238
Office
equipment
& furniture
£
241,058
52,665
-
293,723
148,190
44,824
-
193,014
100,709
92,868
Motor
vehicles
£
131,498
32,374
(7,794)
156,078
85,117
14,975
(7,676)
92,416
63,662
46,381
Total
£
5,758,064
203,883
(7,794)
5,954,153
1,088,560
145,346
(7,676)
67,263
125,517
128,080
1,226,230
4,727,923
4,669,504

Freehold property includes £278,720 (2021 - £278,720) in respect of land which has not been depreciated.

Comparable historical cost of the freehold property is £4,635,000 (2021 - £4,635,000). The accumulated depreciation on the historical cost is £1,324,092 (2021 - £1,256,522).

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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7 INVESTMENTS

Subsidiary
Listed
undertakings investments
£
£
Cost
At 1 April 2021
10,909
930
Disposals
(1)
-
__
_
31 March 2022
10,908
930

Amortisation
Impairment brought forward and at 31 March 2022
10,908
-

___
Net book value
31 March 2022
-
930

31 March 2021
1
930
Total
2022
£
11,839
(1)
__
11,838

10,908
____
930

931

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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8 STOCK

Livestock and materials
9
DEBTORS
Trade debtors
Other debtors and accrued income
Prepayments
Amount owed by related parties

10
CREDITORS: Amounts falling due within one year
Trade creditors
Taxation and social security
Accruals and deferred income
Other creditors
2022
£
1,440

2022
£
140,230
36,112
50,958
-
_

227,300

2022
£
55,874
60,858
86,210
44,808
_

247,750
2021
£
1,440

2021
£
186,600
52,892
41,736
3,551
_
284,779

2021
£
43,508
39,742
61,554
43,096
_
187,900

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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11 COMMITMENTS

At 31 March, the total of future minimum lease payments is as follows:

2022 2021
£ £
Expiry date:
Less than one year 1,786 2,240
Between two and five years 2,637 3,543
_ _
4,423 5,783

The amount of non-cancellable operating lease payments recognised as an expense during the year was £2,371 (2021 - £12,942).

At 31 March 2022 the Trust had capital commitments contracted for but not provided in these financial statements of £25,000 (2021 - £nil).

12 RESTRICTED FUNDS

1 April Incoming Normal Resources 31 March
2021 Resources Expenditure Transfer 2022
£ £
£
£ £
Café 7,822 780
-
(8,602) -
Offas Dyke Car 2,081 -
(1,039)
(1,042) -
Offas Dyke Sensory room 1,236 -
-
- 1,236
Cookery project 4,598 -
-
- 4,598
Sevenoaks Tomcat 643 -
-
- 643
Sevenoaks Paths 4,100 4,000
-
(3,995) 4,105
Pool upgrade 10,000 55,162
-
(65,162) -
Virtual day service 2,069 -
-
(2,069) -
Government grants 1,096 230,347
(231,443)
- -
Community liaison - 10,000
-
(10,000) -
Beanbags - 400
-
(400) -
Science week project - 500
(64)
- 436
Morelands Gardens - 1,520
-
(1,520) -
__ __
__
__ __
Total restricted funds 33,645 302,709
(232,546)
(92,790) 11,018

Resources transfer includes capital expenditure of £120,339 (2021 – £43,188).

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

13 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted
Funds
£
Fixed assets
4,728,853
Current assets
1,899,546
Current liabilities
(247,750)
___
Balance carried forward
at 31 March 2022
6,380,649
Restricted
funds
£
-
11,018
-
___
_
11,018
Total
£
4,728,853
1,910,564
(247,750)
__
6,391,667

14 MOVEMENTS ON RESERVES

Whilst the Statement of Financial Activities shows the movement on all funds, the position is also illustrated in this note for clarity:

Operational Property Designated Restricted Total
general revaluation fund fund funds
fund reserve
£ £ £ £ £
Funds brought forward
at 1 April 2021 4,142,028 978,901 900,000 33,645 6,054,574
Net incoming resources 266,930 - - 70,163 337,093
before transfers
Depreciation on revalued 14,628 (14,628) - - -
Amounts
Transfer between reserves
92,790
- - (92,790) -
__ __ __ _ _
Funds carried forward
At 31 March 2022 4,516,376 964,273 900,000 11,018 6,391,667

The designated funds of the charitable company relates to a “Residential Care Development Fund” whereby it is the intention of the Trustees to further develop the provision of care and to provide for unforeseen major expenditure to the properties.

The Trustees are looking for suitable opportunities.

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DocuSign Envelope ID: ABBEF351-9821-49BB-9CD8-F44146042067

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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15 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income before other recognised gains and losses
Interest receivable
Depreciation
(Profit) or loss on disposal of assets
(Increase) / decrease in debtors
Increase / (decrease) in creditors

Net cash generated from operating activities
2022
£
337,093
(319)
145,346
(1,382)
57,480
59,850

598,068
2021
£
198,617
(2,933)
148,469
10,531
(57,743)
36,540

333,481

16 RELATED PARTY TRANSACTIONS

During the year, rent and rates was paid of £16,669 (2021 - £14,009) to Mr R Morgan (a trustee), who owns a freehold property from which the company trades. No amounts remain unpaid as at 31 March 2022.

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