The Trustees present their annual report and financial statements for the year ended 30 June 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The objective of the charity is to provide independent living accommodation and assisted living for elderly people in the South East of England. The owners of the flats will be independent but will be offered services such as domestic help if required.
The land for the Strawberry Hill Development was purchased in 2013. In October 2015 full planning permission was granted for a development of ten apartments and a communal area on site. The site was completed in June 2018.
The apartments have been designed to support an independent lifestyle, but come with the reassurance that care and support services are available if or when required. A private parking space is allocated for each apartment and the secure gate entrance provides peace of mind.
The charity’s trustees have considered the guidance regarding public benefit when considering and planning their objectives and activities for the year.
The apartments are sold at 20% less than market value. It is the desire of the Trustees and prospective occupants that a Christian ethos is maintained at the development. The trustees have pre-emption rights on all apartments sold.
Public benefit
Fundraising and residential care activities to provide for the elderly and disabled.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
We held our Autumn Fayre on Saturday 4th November where we served coffee and cake, home-made preserves and cakes, fresh bread, seasonal plants, greeting cards and more. We also served light lunches in the OTHT café. A presentation was held at 11.30 a.m. with an update on the works of the Charity and the prospect of a second development. The Fayre raised £5,088.82 which will be used for the on-going work of the charity.
A Christmas singing evening was held on Saturday 9th December in the communal lounge which was followed by refreshments and mince pies.
On 15th June we hosted a Cream Tea to celebrate the 6th anniversary of the opening of Strawberry Hill House. This was well attended and we were grateful for the support we received.
Review of financial position
The charity had excess income of £36,616 (deficit of £78,384 after taking into account the deficit on the investment property revaluation) during the year. This was helped by a legacy by a former resident of Strawberry Hill.
The trustees have considered the financial position of the charity for current and future periods. The company has now paid off the drawdown from Lloyds Bank and there is one apartment for sale now. The charity is able to meet its liabilities as they fall due for a period of not less than 12 months after the balance sheet date and the trustees therefore consider it appropriate to prepare the financial statements on a going concern basis.
There is no reserves policy at present.
The charity’s main source of funds are donations from individuals and companies.
As we look to the future we have a number of prospective buyers and lessees on our waiting list. We have now identified a site in East Sussex. The Trustees are currently in discussion with the Planning Authority to see how best to develop it and hope to report shortly to all subscribers. We look to the Lord for his continued help.
The charity is bound by its Memorandum and Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
There is no current requirement to recruit/appoint further trustees. The 3 Trustees, who are also the key management personnel, are all involved in the operation of the Trust and there is also a Management Company associated with the Trust.
None of the Trustees has any beneficial interest in the company nor received any remuneration during the period.
Relationships with related parties
Stephen Jempson
Trustee
Helen Jempson
Trustee
Brian Jempson
Trustee
Jempsons Holdings Ltd and associated companies
Common ownership
Oak Tree Homes Management Co. Ltd.
Management company
The Trustees' report was approved by the Board of Trustees.
The Trustees, who are also the directors of Oak Tree Homes Trust Ltd. for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
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;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I report to the Trustees on my examination of the financial statements of Oak Tree Homes Trust Ltd. (the Charity) for the year ended 30 June 2024.
As the Trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Roy M Holland FCA
Independent Examiner
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Oak Tree Homes Trust Ltd. is a private company limited by guarantee incorporated in England and Wales. The registered office is Jempson's Ltd, Main Street, Peasmarsh, East Sussex, TN31 6YD.
These financial statements cover the year to 30th June 2024 and the comparative figures cover the year to 30th June 2023.
The financial statements have been prepared in accordance with the Charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention (modified to include investment properties at fair value). The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
There were no restricted or endowment funds during the period, only unrestricted funds.
Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Other income from fundraising events, income from sale of items made or donated by volunteers is recognized either in the period in which the event takes place or when items are sold.
Service costs from the occupants is recognised in Oak Tree Homes Trust Management Ltd’s financial statements, along with associated running costs of the building.
Income from ground rent and full rental of apartments are recognised in the period which they relate.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources.
Raising funds
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’ meetings and reimbursed expenses.
Tangible fixed assets costing £100 or more are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Subsequent day-to-day servicing of the assets will be recognized in the profit or loss in the period they are incurred. Only subsequent expenditure that can provide an incremental benefit will be capitalized.
No depreciation is charged on assets under construction.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Trading income from sales of goods and services
Raising funds
Investment management costs (property expenses)
Printing, postage and stationery
Sundry expenses
Independent Examiner's fee
Bookkeeping
Bank charges
Depreciation of fixtures & fittings
Professional fees
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The fair value of the company's investment property was revalued on an open market basis at 30 June 2024 by the Trustees. An independent valuer was not involved but the view of a firm of Chartered Surveyors around that time was taken into account.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £936,660 (2023 - £936,660).
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
During the period the following related party transactions were relevant:
Brian Jempson
(Trustee of the charity)
During the year, Brian made donations to the charity.
Jempsons Limited
(Company in which two of the trustees control)
Jempsons Limited makes donations to the charity. At the balance sheet date the amount due to Jempsons Limited was £0 (2023 - £888).