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| -1 - 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:** -2 - 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 -3 - 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: - Release of care homes from all covid restrictions and return to full activities from 1st April 2023 - Development of services provided including a new sensory system for the hydropool, generously funded by Goldman Sachs Gives - The addition of ReciteMe accessibility software into the website, funded by Barnwood - Development of new and existing staff through the use of funded apprenticeship schemes - As an acknowledgement of the success of the Trust’s Training and Development department through being shortlisted for the Circle to Success (C2S) South West Business Awards - The celebration of the Trust’s 35 year anniversary in February 2024, and more planned for 2024/25 - Progression by the Trust in its desire to minimise the negative impacts of operations through an energy audit and waste management review both with associated actions, a review of staff pensions to ensure funds are invested in the most suitable and ecologically sustainable product, and an external lean to at Hilltop has been constructed allowing the majority of clothes to be dried outside - A wildlife pond at Stowfield has been created, funded by those who generously donated to the Big Give Christmas Challenge 2022, to improve biodiversity and allow opportunities for environmental education - Development of homes continues with planning permission granted for a significant extension at Sevenoaks - Opening of the Changing Place installed at Stowfield and now used by clients, volunteers and visitors - Furthering the Trust’s desire to benefit the wider community through a partnership agreement with Forest Community Shed who use the Stowfield site regularly - Day service’s Friday arts group worked with Artspace to create artwork for an exhibition at Westonbirt Arboretum - Wyldwood Art delivered performing arts activities to our clients - Canopy worked with clients and staff on various projects, walks and arts and showcased these at festivals - Volunteers at Stowfield redeveloped the goat gym, provide weekend animal care and undertake various gardening projects - Donations throughout 2023/24 totalled over £58,000, including £3,900 in gift aid, much of which is being used to further developed areas within the Trust - The Trust also wishes to thank Gloucestershire Care Providers Association (GCPA), Gloucestershire County Council, along with the various other Local Authorities and NHS Trusts we work with, for their ongoing support. ## **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: - Client Group (Trust our Voice) - Parent Support Group (Carers & Sharers) - Staff Communication Group (Comms) - Health & Safety Staff Reps - with Trustee representation - Action Based Management (ABM) - Trustee buddy scheme across all services in the Trust - Trustee Sub-Committees - Finance, Investment, Remuneration, Safeguarding - Environmental Champions - Wellbeing Champions - Menopause Champions -4 - 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** - Service delivery – internal and external quality controls minimise risks in this area with internal quality control process reviewed and updated to reflect the regularly changing best practice guidelines provided by authorities within the care sector. - Recruitment – The challenge of recruiting new staff with the values and attributes required by the Trust to support clients is increasingly difficult, however these standards are vital to the wellbeing of individuals so new methods of advertising and recruiting are continually explored. - Changes to Local Authority funding and/or commissioning models – Trust staff work closely with partners in local authorities to ensure client packages reflect true costs of care and individual need. Senior staff are active within local authority market shaping workshops and Cathy Andrews sits on the board of the Gloucestershire Care Providers Association. - Regional and National policy changes - Cathy Andrews sits on the ADASS South West Stakeholder Forum and the South West Regional Stakeholder Network for the Disability Unit in Cabinet Office both feed information into and influence change at regional, national and governmental levels. Alongside this Cathy’s position on the Skills for Care Workforce Board supports the development of training and conditions for todays and future social care workers. - To ensure the Trust is up to date with current and future changes to the financial landscape Kelly Ryder sits as a Trustee for the Charity Finance Group and she and Tony Lafford, Orchards Registered Manager, are members of the Association for RealChange (ARC) - Regulatory and Legislative changes - The Trust seeks to remain up to date with all changes through subscription to CQC, Skills for Care, HSE and other email updates along with face to face and social media peer networking. We consider and respond to the continued development of legislation and changes regulations through discussion and regular reviewing of internal procedures. -5 - 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. -6 - 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: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 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. -7 - 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:** -8 - 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: - give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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: - the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. ## **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. -9 - 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: - the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Report of the Trustees have been prepared in accordance with applicable legal requirements. ## **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: - adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the charitable company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **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. -10 - 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: - We obtained an understanding of the legal and regulatory frameworks applicable to the charitable company financial statements or that had a fundamental effect on the charitable company’s operations. We determined that the most significant laws and regulations included UK GAAP, UK Companies Act 2006 and Charities Act 2011. - We understood how the charitable company is complying with those legal and regulatory frameworks by making inquiries of management, those responsible for legal and compliance procedures. - We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: - Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud; - Understanding how management considered and addressed the potential for override of controls. Detailed analysis of journals posted through the accounting system during the year to 31 March 2024 has been undertaken; - Understanding the controls in place to prevent and detect fraud. Reliance was not placed on controls for the entirety of the audit, instead taking a substantive testing approach, however controls were in place to prevent fraud and they appeared to be working effectively. - Challenging assumptions and judgements made by management in its significant accounting estimates. ## **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:............................. -11 - 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
| |---|---| -12 - 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| -13 - 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** -14 - 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. -16 - 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 -17 - 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’. -18 - 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: - Unrestricted general funds, which can be used in accordance with the charitable objects at the discretion of the Trustees; or - Unrestricted designated funds, which can be used in accordance with the Charitable objects, in respect of specific projects ear-marked by the Trustees; or - Restricted funds, which can only be used for particular restricted purposes within the objects of the charity. Restrictions are specified by the donor or when funds are raised for particular restricted purposes. All funds received to date have been applied against capital projects. ## **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. -19 - 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
| |---|---|---| -20 - 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** **_________________________________________________________________________________________** ## **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| -21 - 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). -22 - 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** **_________________________________________________________________________________________** ## **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
| |---|---| -23 - 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. -24 - 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
| |---|---|---| -25 - 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** ## **_________________________________________________________________________________________** ## **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
| -26 - 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** **_________________________________________________________________________________________** ## **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. -27 -