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2023-03-31-accounts

DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

Company Number: 2348350 Charity Number: 801122

THE ORCHARD TRUST (Limited by Guarantee)

FINANCIAL STATEMENTS

For the Year Ended 31 March 2023

DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 - 26

DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) OFFICERS AND ADVISORS FOR THE YEAR ENDED 31 MARCH 2023

Trustees Mr N Budd
Mr B Kaye
Mrs J Morris Kaye
Mrs S Henchley
Mr R Morgan
Mrs R Dodsworth (Resigned 25 November 2022)
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: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) CHAIRMAN’S REPORT FOR THE YEAR ENDED 31 MARCH 2023

This year thankfully, Covid had fewer direct effects on the Orchard Trust, but indirect effects have been more noticeable. Recruiting staff in all the Care industry has been incredibly hard, and does not appear to be improving. The Trust is examining its recruiting techniques in order to strengthen them, and retention becomes even more of a priority. Staff wellbeing is still important to the Trustees and the organisation, while risk of burnout remains high as staff continue their battle working with low staff numbers, and the recovery from Covid.

We continue to have good relations with the Local Authorities who refer clients to us. We feel that we offer so much more than just a place to live, and this makes us special. We offer the Stowfield site, with the smallholding and Day Services, including the Hydropool and Rebound facilities. We train our staff on site, which makes it more efficient to keep their learning up to date. We consider it important for all our staff to contribute to the decisions regarding the ethos and values of the Trust and feel that this helps them in their relationships with the people we look after.

The Trust is improving relations with the local community, with more people coming to visit the Smallholding at Stowfield. We are grateful to the companies which have enabled their staff to come and give us their valuable, voluntary time, often resulting in longer friendships and collaboration. We are also building relations with Heart of the Forest Community Special School, as a number of their leavers come to use our Day Centre and sometimes to live.

The Training department has again needed to change the way it keeps our staff learning up to date, as shortages mean that staff cannot be released from their work for longer than absolutely necessary. Some methods of providing training during lockdown have been very successful, and their implementation has continued.

The Summer Fair in 2022 was held at Stowfield, much to everyone’s relief, and the fantastic sum of £4134 was raised. Our enormous thanks go to the team who organised it. It is a great Team Building exercise, as everyone does their bit. We were pleased to see so many members of the public coming to join in, and see what we do.

Fundraising was more difficult following the shutdowns required by Covid restrictions, but our thanks must go to the family of Chris Wiltshire for their very generous donation of £200,000. We also again thank our great fundraising team for all the work they do.

After 25 years with Orchard Trust, Rhiannon Hughes, Deputy Manager at Orchards and Offa’s Dyke retired. Rhiannon has seen significant changes and growth over her years and the board wishes to thank her for her contribution to the charity over this time.

I sadly have to report the reluctant closure of the Friends of The Orchard Trust, but our grateful thanks go to the members who contributed so much to it.

Two more sad events were the deaths of Jeremy Norman and Steven Walker. They had been with us for a long time, and we miss them greatly.

This is my final year as Chairman. I have enjoyed my time in the chair, even though it started slowly, with Covid and shutdown taking everyone’s time and energy. Since then we have been able to introduce some innovations to the way the Board makes its decisions. These include occasional informal meetings, which allow wide ranging discussions and I believe, help Board cohesion. I am very grateful to Nick Budd for agreeing to take over the Chairmanship for a second time, and thank all members of the Board for their time and support during my Chairmanship.

Sue Henchley Chairman of Trustees The Orchard Trust

7/11/2023 Date:

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DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present their report together with the audited financial statements (“accounts”) of the company for the year ended 31 March 2023.

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: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Achievements and Performance

The key achievements of the Trust against its activities and thus its objectives during the 2022/23 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:

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DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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 audits 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

Fee uplifts, effective from mid April 2022, 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 regular review of the organisational risk register, comprehensive policies and procedures for all staff to follow along with appropriate training for each role. Financial risks are managed by the above along with 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

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DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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 9 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: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 MARCH 2023

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 £1,563,427 (2022 - £1,681,824). Total reserves increased from £6,391,667 to £6,471,118 (2022 - £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 12-26. Cash balances at the year-end of £1,563,427 (2022 - £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 HELP HR, PIB Insurance Brokers for dealing accordingly with our HR and insurance needs and RWKGoodman for assisting with our legal queries .

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DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 MARCH 2023

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 £1,589 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

Mr Chris Lloyd Treasurer - The Orchard Trust

Date: 7/11/2023

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DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

Opinion

We have audited the financial statements of The Orchard Trust for the year ended 31 March 2023, 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: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 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: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 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:

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

Windsor House Bayshill Road Cheltenham GL50 3AT

8/11/2023 Date:.............................

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DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
Total
fund
fund
funds
2023
2023
2023
Note
£
£
£
INCOME AND ENDOWMENTS
Income and endowments from:
Donations and legacies
Donations and gifts
254,620
114,144
368,764
Investments
Bank interest receivable
6,132
-
6,132
Charitable activities
Local Authority contracts
4,369,875
-
4,369,875
Other
Training income
49,777
-
49,777
Rental income
33,150
-
33,150
Other income
168
-
168
Government grants
-
6,747
6,747
_
_
_
Total income and endowments
4,713,722
120,891
4,834,613
_
_
_
EXPENDITURE ON
Charitable activities

2
(4,729,302)
(25,860)
(4,755,162)
_
_
_
Total expenditure
(4,729,302)
(25,860)
(4,755,162)
_
__
_
Net income/(loss) for the year
14
(15,580)
95,031
79,451

 Total
funds
2022
£
92,542
319
4,118,192
36,925
37,150
-
234,211
_
4,519,339
_
(4,182,246)
_
(4,182,246)
_
337,093

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DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted Unrestricted Restricted Total Total
fund fund funds funds
2023 2023 2023 2022
Note £ £ £ £
Reconciliation of funds
Funds brought forward at
1 April 6,380,649 11,018 6,391,667 6,054,574
Transfer between reserves 64,827 (64,827) - -
Net movement in funds (15,580) 95,031 79,451 337,093
__ __ _ _
Funds carried forward at
31 March 14 6,429,896
 41,222
 6,471,118
 6,391,667
The notes on pages 17 to 27 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
2023 2022
£ £
Reported net movement in funds 87,861 337,093
Difference between historical cost
depreciation and the actual depreciation
charge of the year calculated on the revalued
amount 17,174 14,628
__ __
Historical cost net movement in funds 105,035 351,721

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

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DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) BALANCE SHEET AS AT 31 MARCH 2023

Company Number: 2348350

Note
£
Fixed assets
Tangible assets
6
Investments
7
Current assets
Stock
8
1,440
Debtors
9
455,492
Cash at bank and in hand
1,563,427
_
2,020,359
Creditors: Amounts falling due
within one year
10 (342,822)
_
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
__		 2023
£
£
4,792,651
930
_
4,793,581
1,440
227,300
1,681,824
_
1,910,564
(247,750)
_
1,677,537
_
6,471,118

41,222
4,582,797
947,099
900,000
__
6,471,118		 2022
£
4,727,923
930
_
4,728,853
1,662,814
_
6,391,667

11,018
4,516,376
964,273
900,000
___
6,391,667

7/11/2023

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

Mr Chris Lloyd Treasurer The Orchard Trust

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DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2023

Operational Property Designated
Restricted
general revaluation
fund
fund
fund
reserve
£
£
£
£
Funds brought forward
at 1 April 2022
4,516,376
964,273
900,000
11,018

Net incoming resources
(15,580)
-
-
95,031
before transfers
Depreciation on revalued
17,174
(17,174)
-
-
Amounts
Transfer between reserves
64,827
-
-
(64,827)
_
_
_
_
Funds carried forward
at 31 March 2023
4,582,797
947,099
900,000
41,222


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


 Total
funds
£
6,391,667
79,451
-
-
_
6,471,118

Restated
Total
funds
£
6,054,574
337,093
-
-
_
6,391,667

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DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Note £ £ £ £
Cash generated from in operating activities 15 112,881 598,068
Cash flows from investing activities
Interest income 6,132 319
Purchase of tangible fixed assets (238,610) (203,883)
Proceeds from sale of tangible assets 1,200 1,500
Cash provided by (used in) investing
activities (231,278)
 (202,064)
Increase in cash and cash equivalents in
the year (118,397)
 396,004
Cash and cash equivalents at the beginning
of the year 1,681,824
 1,285,820
Total cash and cash equivalents at the end
of the year 1,563,427
 1,681,824

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: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

_________________

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: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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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: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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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: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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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
COVID costs (ICG)
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
 2023
£
3,396,365
199,070
50,121
278,461
84,860
39,960
173,810
59,649
4,260
_

4,286,556
_

337,886
14,656
4,466
3,139
37,661

4,296
60,786
2,914
3,930
(1,128)
_

468,606
_

4,755,162		 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

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DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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3 NET INCOME FOR THE YEAR

NET INCOME FOR THE YEAR
2023 2022
£ £
This is stated after charging:
Depreciation 173,810 145,346
Auditors’ remuneration 9,875 9,300

Third Party Indemnity insurance costs of £1,589 (2022 - £1,382) were incurred in the year in relation to Trustee Indemnity Insurance. The maximum indemnity under the policy was £2,000,000 (2022 - £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		 2023
£
3,428,936
235,945
69,370
_
3,734,251
3,396,365
337,886
_
3,734,251
72,913
__		 2022
£
3,153,633
204,919
62,442
_
3,420,994

3,102,229
318,765
_
3,420,994

70,238
__

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.

2023 2022
Number Number
Management and administration 12 11
Nursing and care staff 191 182
____ ____
203 193

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DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 2022
Additions
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Eliminated on disposal
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Residential
freehold
property
£
5,292,699
25,000
-
5,317,699
859,116
83,392
-
942,508
4,375,191
4,433,583		 Farm
£
192,780
-
-
192,780
67,263
2,511
-

69,774
123,006
125,517		 Plant &
equipment
£
18,873
4,310
-
23,183
14,421
1,210

-
15,631
7,552
4,452		 Office
equipment
& furniture
£
293,723
189,605
-
483,328
193,014
68,338
-
261,352
221,976
100,709		 Motor
vehicles
£
156,078
19,695
(11,450)
164,323
92,416
18,359
(11,378)
99,397
64,926
63,662		 Total
£
5,954,153
238,610
(11,450)
6,181,313
1,226,230
173,810
(11,378)
1,388,662
4,792,651
4,727,923

Freehold property includes £278,720 (2022 - £278,720) in respect of land which has not been depreciated.

Comparable historical cost of the freehold property is £4,635,000 (2022 - £4,635,000). The accumulated depreciation on the historical cost is £1,390,310 (2022 - £1,324,092).

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DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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7 INVESTMENTS

Subsidiary
Listed
undertakings investments
£
£
Cost
At 1 April 2022 and 31 March 2023
10,908
930
Amortisation
Impairment brought forward and at 31 March 2023
10,908
-
__
_
Net book value
31 March 2023
-
930
31 March 2022
-
930
8
STOCK
2023
£
Livestock and materials
1,440
9
DEBTORS
2023
£
Trade debtors
356,787

Other debtors and accrued income
47,104
Prepayments
51,601
_

455,492


10
CREDITORS: Amounts falling due within one year
2023
£
Trade creditors
162,336
Taxation and social security
44,323
Accruals and deferred income
96,014
Other creditors
40,149
_____
_
342,822
 Total
2023
£
11,838
10,908
__
930

930

2022
£
1,440

2022
£
140,230
36,112
50,958
_
227,300

2022
£
55,874
60,858
86,210
44,808
___
247,750

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DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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11 COMMITMENTS

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

2023 2022
£ £
Expiry date:
Less than one year 1,786 1,786
Between two and five years 1,416 2,637
_ _
3,202 4,423

The amount of non-cancellable operating lease payments recognised as an expense during the year was £1,786 (2022 - £2,371).

At 31 March 2023 the Trust had no capital commitments contracted for but not provided in these financial statements. At 31 March 2022 the Trust had capital commitments contracted for but not provided in these financial statements amounting to £25,000.

12 RESTRICTED FUNDS

1 April Incoming Normal Resources 31 March
2022 Resources Expenditure Transfer 2023
£ £
£		 £ £
Offas Dyke Car - 863
-		 (863) -
Offas Dyke Sensory room 1,236 -
-		 - 1,236
Cookery project 4,598 -
-		 (881) 3,717
Sevenoaks Tomcat 643 -
-		 - 643
Sevenoaks Paths 4,105 -
-		 (4,105) -
Pool upgrade - 981
-		 (981) -
Government grants - 6,747
(6,747)		 - -
Community liaison - 10,000
(10,000)		 - -
Science week project 436 -
-		 2 438
Stowfield Allotment Project - 3,250
-		 (3,250) -
Alpaca project - 2,000
-		 - 2,000
Changing places - 60,000
-		 (54,749) 5,251
Morelands bed/paintbrushes/gazebo
-		 550
-		 - 550
Pool pilot and client session subsidy
-		 33,500
(9,113)		 - 24,387
Community garden project - 3,000
-		 - 3,000
__ __
__		 __ __
Total restricted funds 11,018 120,891
(25,860)		 (64,827) 41,222

Resources transfer includes capital expenditure of £67,228 (2022 – £120,339).

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DocuSign Envelope ID: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

13 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted
Funds
£
Fixed assets
4,793,581
Current assets
1,979,137
Current liabilities
(342,822)
___
Balance carried forward
at 31 March 2023
6,429,896
 Restricted
funds
£
-
41,222
-
___
_
41,222
 Total
£
4,793,581
2,020,359
(342,822)
__
6,471,118

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 2022 4,516,376 964,273 900,000 11,018 6,391,667
Net incoming resources (15,580) - - 95,031 79,451
before transfers
Depreciation on revalued 17,174 (17,174) - - -
Amounts
Transfer between reserves
64,827		 - - (64,827) -
__ __ __ _ _
Funds carried forward
At 31 March 2023 4,582,797 947,099 900,000 41,222 6,471,118

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: 9B7B1FA2-BFA3-4F2A-9ECA-76FFDC945151

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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

2023
£
Net income before other recognised gains and losses
79,451
Interest receivable
(6,132)
Depreciation
173,810
(Profit) or loss on disposal of assets
(1,128)
(Increase) / decrease in debtors
(228,192)
Increase / (decrease) in creditors
95,072

Net cash generated from operating activities
112,881
 2022
£
337,093
(319)
145,346
(1,382)
57,480
59,850

598,068

16 RELATED PARTY TRANSACTIONS

During the year, rent and rates was paid of £17,600 (2022 - £16,669) to Mr R Morgan (a trustee), who owns a freehold property from which the company trades. No amounts remain unpaid as at 31 March 2023.

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