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2024-03-31-accounts

Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

Company Number: 2348350 Charity Number: 801122

THE ORCHARD TRUST (Limited by Guarantee)

FINANCIAL STATEMENTS

For the Year Ended 31 March 2024

Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) OFFICERS AND ADVISORS FOR THE YEAR ENDED 31 MARCH 2024

Trustees Mr N Budd
Mr B Kaye
Mrs J Morris Kaye
Mrs S Henchley (Resigned 10 November 2023)
Mr R Morgan
Mrs C Smart
Mrs E Hewison (Resigned 24 January 2024)
Mr C Lloyd
Mrs E C Bell
Mr P E Wakeley (Appointed 15 March 2024)
Chief Executive Officer Mrs C Andrews
Registered and Administrative Office The Orchards
Lydbrook Valley Springs
Central 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: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) CHAIRMAN’S REPORT FOR THE YEAR ENDED 31 MARCH 2024

The year commenced fully clear of all Covid restrictions, allowing us to continue our catch-up back towards normality, including the review of policies and updating training, etc. It also saw us contending with the cost of living crisis, the increase in the National Living Wage (not matched by the Local Authorities) and the reluctance of the Government to acknowledge the contribution of the care sector and give genuine recognition to the hardworking, professional staff who provide care and quality of life to society’s most vulnerable people.

Our relationship with all the Local Authorities with whom we have dealings remain positive, recognising the pressures they too are under and acknowledging that they continue to support us as best they are able.

An ageing resident population, with all the increased risks and challenges that provides, inevitably results in individuals reaching their natural demise. This year we said farewell to Lorraine Morrison and Jamie Kay. However, we also had the joy of welcoming Jordan Dykes and James Wakerley to the Orchard Trust family.

After a number of years of dedicated service, Elaine Hewison left the Board of Trustees and we welcomed on Peter Wakerley, father of James. I am pleased to say that two staff members reached their 30-year service with the Trust. We owe so much to our dedicated staff, so thank you.

On a financial basis, although we ended the year with a modest deficit, however this disguised a greater underlying loss for the Trust. The loss was mitigated by a £120k donation from the Chris Wiltshire estate, which as of March 24 has given a total of £320k to the Trust, for which we are very grateful.

The next few years are likely to be extremely challenging for all care providers, ourselves included. We are fortunate to have significant funds to help us overcome these hurdles and continue to develop our infrastructure

Nick Budd Chairman of Trustees The Orchard Trust

18/11/2024 Date:

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Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

The Trustees present their report together with the audited financial statements (“accounts”) of the company for the year ended 31 March 2024.

PURPOSE AND IMPACT

The Orchard Trust (referred to as the Trust from now on) was established in 1989 by a group of parents looking to improve care options for their children and others with learning disabilities. Having grown over the past 35 years the Trust provides residential care, supported living homes, along with rebound therapy, a hydropool therapy and day services all based on a working smallholding at Stowfield 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. Developing our homes to ensure we continue to meet the need of our clients

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

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Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

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: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

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 authorities, external expert by experience quality visits, family and staff questionnaires, Trustee buddy visits, senior manager audits, 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 current and future activities meet the Trust’s objectives.

Staff Pay Award

Fee uplifts, effective from mid April 2023 and received from Local Authorities and NHS Trust’s, did not cover the full impact of the increase in National Living Wage (NLW). The Trust chose to invest in its staff teams by providing all staff a pay increase above the NLW 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 supports the Trust’s 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: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

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 8 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: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 MARCH 2024

Review of the accounts

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

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 year.

At the balance sheet date, cash reserves decreased from last year at £1,538,053 (2023 - £1,563,427). Total reserves decreased from £6,471,118 to £6,277,551 (2023 – increased from £6,391,667 to £6,471,118).

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 £1,538,053 (2023 - £1,563,427) reflected careful management of the Trust’s 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: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 MARCH 2024

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. This value was frozen on transition to FRS102.

Third Party Indemnity Insurance

The company incurred an annual premium of £1,777 to AXA Insurance UK PLC 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

15/11/2024 Date:

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Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

Opinion

We have audited the financial statements of The Orchard Trust for the year ended 31 March 2024, 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: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

Opinion on other matters 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: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 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:

Use of our report

This report is solely made to company’s members, as a body, in accordance wit Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

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

Windsor House Bayshill Road Cheltenham GL50 3AT

18/11/2024

Date:.............................

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Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted
Restricted
Total
fund
fund
funds
2024
2024
2024
Note
£
£
£
INCOME AND ENDOWMENTS
Income and endowments from:
Donations and legacies
Donations and gifts
154,510
10,000
164,510
Investments
Bank interest receivable
27,242
-
27,242
Charitable activities
Local Authority contracts
4,845,304
-
4,845,304
Other
Training income
59,254
-
59,254
Rental income
36,961
-
36,961
Other income
-
-
-
Government grants
-
-
-
_
_
_
Total income and endowments
5,123,271
10,000
5,133,271
_
_
_
EXPENDITURE ON
Charitable activities

2
(5,280,852)
(45,986)
(5,326,838)
_
_
_
Total expenditure
(5,280,852)
(45,986)
(5,326,838)
_
__
_
Net loss for the year
14
(157,581)
(35,986)
(193,567)


 Total
funds
2023
£
368,764
6,132
4,369,875
49,777
33,150
168
6,747
_
4,834,613
_
(4,755,162)
_
(4,755,162)
_
79,451

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Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted
Restricted
fund
fund
2024
2024
Note
£
£
Reconciliation of funds
Funds brought forward at
1 April
6,429,896
41,222
Transfer between reserves
(4,300)
4,300
Net movement in funds
(157,581)
(35,986)
_
_
Funds carried forward at
31 March
14
6,268,015
9,536

 Total
Total
funds
funds
2024
2023
£
£
6,471,118
6,391,667
-
-
(193,567)
79,451
_
_
6,277,551
6,471,118

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 operations.

Note of Historical Cost Income and Expenditure

2024 2023
£ £
Reported net movement in funds (193,567) 79,451
Difference between historical cost
depreciation and the actual depreciation
charge of the year calculated on the revalued
amount 16,946 17,174
__ __
Historical cost net movement in funds (176,621) 96,625

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Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) BALANCE SHEET AS AT 31 MARCH 2024

Company Number: 2348350

2024 2023
Note £ £ £ £
Fixed assets
Tangible assets 6 4,683,653 4,792,651
Investments 7 930 930
__ __
4,684,583 4,793,581
Current assets
Stock 8 1,440 1,440
Debtors 9 337,264 455,492
Cash at bank and in hand 1,538,053 1,563,427
__ __
1,876,757 2,020,359
Creditors: Amounts falling due
within one year 10 (283,789) (283,789) (283,789) (342,822)
__ __
Net current assets 1,592,968 1,677,537
__ __
Total assets less current liabilities 6,277,551
 6,471,118
Funds
Restricted income funds 12,13,14 Restricted income funds 12,13,14 Restricted income funds 12,13,14 9,536 41,222
Unrestricted income funds:
13,14		 13,14
Operational general fund 4,437,862 4,582,797
Property revaluation reserve 930,153 947,099
Designated funds 900,000 900,000
____ ____ ___
6,277,551 6,471,118

15/11/2024

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: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2024

Operational Property Designated
Restricted
general revaluation
fund
fund
fund
reserve
£
£
£
£
Funds brought forward
at 1 April 2023
4,582,797
947,099
900,000
41,222

Net (deficit) / surplus
(157,581)
-
-
(35,986)
before transfers
Depreciation on revalued
16,946
(16,946)
-
-
Amounts
Transfer between reserves
(4,300)
-
-
4,300
_
_
_
_
Funds carried forward
at 31 March 2024
4,437,862
930,153
900,000
9,536



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 (deficit) / surplus
(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


 Total
funds
£
6,471,118
(193,567)
-
-
_
6,277,551

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

-15 -

Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024

2024 2023
Note £ £ £ £
Cash generated from in operating activities 15 46,591 112,881
Cash flows from investing activities
Interest income 27,242 6,132
Purchase of tangible fixed assets (99,207) (238,610)
Proceeds from sale of tangible assets - 1,200
Cash used in investing
activities (71,965)
 (231,278)
Decrease in cash and cash equivalents in
the year (25,374)
 (118,397)
Cash and cash equivalents at the beginning
of the year 1,563,427
 1,681,824
Total cash and cash equivalents at the end
of the year 1,538,053
 1,563,427

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: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

_________________

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: 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: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

_________________

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: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

_________________

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.

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: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

_________________

2 EXPENDITURE ON CHARITABLE ACTIVITIES

Note
Provision of care:
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 on disposal of tangible fixed assets
Total expenditure on charitable activities
 2024
£
3,763,859
228,747
57,308
228,048
87,477
133,863
208,205
76,569
-
_

4,784,076
_

363,156
12,003
4,604
4,030
32,729

2,170
120,090
3,980
-
-
_

542,762
_

5,326,838
 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

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Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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3 NET INCOME FOR THE YEAR

NET INCOME FOR THE YEAR
2024 2023
£ £
This is stated after charging:
Depreciation 208,205 173,810
Auditors’ remuneration 10,000 9,875

Third Party Indemnity insurance costs of £1,777 (2023 - £1,589) were incurred in the year in relation to Trustee Indemnity Insurance. The maximum indemnity under the policy was £2,000,000 (2023 - £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 Chief Executive Officer		 2024
£
3,788,507
259,164
79,344
_
4,127,015

3,763,859
363,156
_
4,127,015

78,891
__		 2023
£
3,428,936
235,945
69,370
_
3,734,251

3,396,365
337,886
_
3,734,251

72,913
__

The above represents the emoluments of the highest paid officer. One other employee earned more than £60,000. The trustees did not receive any remuneration.

2024 2023
Number Number
Management and administration 12 12
Nursing and care staff 193 191
____ ____
205 203

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Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 2023
Additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
Eliminated on disposal
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Residential
freehold
property
£
5,317,699
23,782
-
5,341,481
942,508
81,840
-
1,024,348
4,317,133
4,375,191		 Farm
£
192,780
-
-
192,780
69,774
2,461
-

72,235
120,545
123,006		 Plant &
equipment
£
23,183
-
-
23,183
15,631
1,133
-
16,764
6,419
7,552		 Office
equipment
& furniture
£
483,328
75,425
-
558,753
261,352
105,948
-
367,300
191,453
221,976		 Motor
vehicles
£
164,323
-
164,323
99,397
16,823
-
116,220
48,103
64,926		 Total
£
6,181,313
99,207
-
6,280,520
1,388,662
208,205
-
1,596,867
4,683,653
4,792,651

Freehold property includes £278,720 (2023 - £278,720) in respect of land which has not been depreciated.

Comparable historical cost of the freehold property is £4,635,000 (2023 - £4,635,000). The accumulated depreciation on the historical cost is £1,455,204 (2023 - £1,390,310).

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Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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7 INVESTMENTS

Subsidiary
Listed
undertakings investments
£
£
Cost
At 1 April 2023
10,908
930
Investment written off
(10,908)
-
__
_
As at 31 March 2024
-
930


Amortisation
Impairment brought forward at 1 April 2023
10,908
-
Investment written off
(10,908)
-
As at 31 March 2024
-
-


Net book value
31 March 2024
-
930


31 March 2023
-
930


8
STOCK
2024
£
Livestock and materials
1,440

9
DEBTORS
2024
£
Trade debtors
203,352

Other debtors and accrued income
74,808
Prepayments
59,104
____
_
337,264


 Total
2024
£
11,838
(10,908)
__
930

10,908
(10,908)
-
_
930

930

2023
£
1,440

2023
£
356,787
47,104
51,601
___
455,492

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Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

10 CREDITORS: Amounts falling due within one year

2024 2023
£ £
Trade creditors 78,552 162,336
Taxation and social security 53,268 44,323
Accruals and deferred income 108,681 96,014
Other creditors 43,288 40,149
_ _
283,789 342,822

11 COMMITMENTS

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

2024 2023
£ £
Expiry date:
Less than one year 1,427 1,786
Between two and five years 388 1,416
_ _
1,815 3,202

The amount of non-cancellable operating lease payments recognised as an expense during the year was £1,427 (2023 - £1,786).

At 31 March 2024 the Trust had no capital commitments contracted for but not provided in these financial statements.

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Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

________________

12 RESTRICTED FUNDS

1 April Incoming Normal Resources 31 March
2023 Resources Expenditure Transfer 2024
£ £ £ £ £
Offas Dyke Sensory room 1,236 - - - 1,236
Offas Dyke Car - - (3,910) 3,910 -
Cookery project 3,717 - (3,717) - -
Sevenoaks Tomcat 643 - - - 643
Science week project 438 - - - 438
Orchards Television - 100 - (100) -
Sharp Big Pads - 9,900 (9,900) - -
Alpaca project 2,000 - (2,490) 490 -
Changing places 5,251 - (2,247) - 3,004
Morelands
bed/paintbrushes/gazebo 550 - - - 550
Pool pilot and client session
subsidy 24,387 - (23,722) - 666
Community garden project 3,000 - - - 3,000
__ __ __ __ _
Total restricted funds 41,222 10,000 (45,986) 4,300 9,536

Resources transfer includes capital expenditure of £Nil (2023 - £67,228).

13 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted
Funds
£
Fixed assets
4,684,583
Current assets
1,867,221
Current liabilities
(283,789)
___
Balance carried forward
at 31 March 2024
6,268,015
 Restricted
funds
£
-
9,536
-
___
_
9,536
 Total
£
4,684,583
1,876,757
(283,789)
__
6,277,551

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Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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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 2023 4,582,797 947,099 900,000 41,222 6,471,118
Net incoming resources (157,581) - - (35,986) (193,567)
before transfers
Depreciation on revalued 16,946 (16,946) - - -
Amounts
Transfer between reserves
(4,300)		 - - 4,300 -
__ __ __ _ _
Funds carried forward
At 31 March 2024 4,437,862 930,153 900,000 9,536 6,277,551

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.

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

2024 2023
£ £
Net income before other recognised gains and losses (193,567) 79,451
Interest receivable (27,242) (6,132)
Depreciation 208,205 173,810
Profit on disposal of assets - (1,128)
(Increase) / decrease in debtors 118,228 (228,192)
Increase / (decrease) in creditors (59,033)
 95,072
Net cash generated from operating activities 46,591
 112,881

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Docusign Envelope ID: A50D6320-30FC-4FA1-BC01-CBDD6D7284E2

THE ORCHARD TRUST (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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16 RELATED PARTY TRANSACTIONS

During the year, rent and rates was paid of £17,600 (2023 - £17,600) to Mr R Morgan (a trustee), who owns a freehold property from which the company trades. No amounts remain unpaid as at 31 March 2024.

During the year, £222,997 of fees were received from local authorities for 3 children of trustees, who are supported by the charity.

Additionally, during the current financial year, Elizabeth Bell (a trustee) has volunteered time and services to the business smallholding.

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