Charity registration number 288070
Company registration number 01714560 (England and Wales)
KEHELLAND HORTICULTURAL CENTRE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
KEHELLAND HORTICULTURAL CENTRE LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
D J King
S L Pyner
H Bryant
I H Smith
N Smith
Delegated management
Chief Executive - Anthea Hedge
Secretary
B Davies
Charity number
288070
Company number
01714560
Registered office
Kehelland
Camborne
Cornwall
United Kingdom
TR14 0DD
Auditor
Azets Audit Services
Woodlands Court
Truro Business Park
Truro
Cornwall
United Kingdom
TR4 9NH
Bankers
Barclays
28 Chapel Street
Camborne
Cornwall
United Kingdom
TR14 8EL
Solicitors
Paddle & Cocks LLP Solicitors
Charles House
18-21 Charles Street
Truro
Cornwall
United Kingdom
TR1 2PQ
KEHELLAND HORTICULTURAL CENTRE LIMITED
CONTENTS
Page
Trustees' report
1 - 6
Statement of trustees' responsibilities
7
Independent auditor's report
8 - 10
Statement of financial activities
11
Balance sheet
12
Statement of cash flows
13
Notes to the financial statements
14 - 24
KEHELLAND HORTICULTURAL CENTRE LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

The trustees present their report and financial statements for the year ended 31 August 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 charitable company's governing document, 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)".

Objectives and activities

The Trustees of Kehelland Horticultural Centre Ltd ('charitable company'), Staff and Volunteers continue to be committed to the charity’s mission statement: -

 

“The provision of a rural, horticultural setting for the support of young people and adults with learning and/or physical disabilities. Developing personal and social skills, individual opportunities and active participation in the local Community”

 

Adhering to the charity's mission statement, the charitable company was incorporated in 1983. Since standing alone as a charity in 2011, the charitable company has maintained close and positive partnerships with Cornwall Council and the department of Adult Social Care and Cornwall Adult Education. The charitable company is also a registered training provider with OCN London.

 

The Charity trades as the Kehelland Trust.

 

The focus this financial year has been to continue to maintain our service as best as possible and diversify services to meet organisational and individual needs.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable company should undertake.

 

The Trustees consider that they have complied with their duty in section 17 (5) of the Charities Act 2011, which requires them to have due regard to guidance published by the Charity Commission.

KEHELLAND HORTICULTURAL CENTRE LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
Achievements and performance

Over the past 12 months we have:

KEHELLAND HORTICULTURAL CENTRE LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

What do we need to focus on for 2024/2025?

Reasons to celebrate at the turn of the financial year

 

The Board of Trustees would like to thank the whole team at Kehelland Trust for showing extraordinary adaptability and dedication to the work of the charity, to each other, the trainees, learners, families, and volunteers. It has been another challenging year which we have faced confidently & positively. We can be assured that Kehelland Trust will continue to provide exemplary care, support & educational opportunities for young people and adults with disabilities in Cornwall; all set within the stunning backdrop of 16 acres of productive land, rich in both managed crops & wildlife providing both sustenance and sanctuary.

KEHELLAND HORTICULTURAL CENTRE LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -
Financial review

During this period, the Kehelland Trust achieved incoming resources of £1,481,090 (2023 - £1,341,268) and outgoing resources of £1,595,073 (2023 - £1,471,427), an overall deficit in income over expenditure of £113,983 (2023 - £130,159).

 

Our main expenditure continues to be staff salaries in order to maintain a skilled and experienced staff team that can support the changing needs of our service users, and the diversification of services / business development needed.

 

Over the last 5 years, Kehelland Trust had been pulling back from a large deficit, however, the deficit these last 2 years is indicative of funding resources not keeping pace with the increase in costs of goods and services as well as the National Living Wage.

 

Investment in staff has continued to account for our highest cost but has the highest return as maintaining a highly skilled and experienced staff team enables us to continue to provide excellent services for the people we support.

 

 

2023/2024

2022/2023

2021/2022

(17 months)

2020/2021

2019/2020

Income

£1,481,090

£1,341,268

£1,614,888

£940,877

£696,563

Outgoings

£1,595,073

£1,471,427

£1,559,458

£783,387

£633,524

Income over expenditure

113,983

130,159

55,430

+£157,490

+£63,039

 

Reserves policy

The Board of Trustees recognise that in order that the charitable company may not only survive, but fulfil its objectives, it requires adequate finances to ensure that we can meet our statutory requirements and both working capital and capital expenditure requirements. The charitable company strives to maintain a healthy solvency barrier and adheres to the Reserves and Solvency Policy, which is reviewed annually.

 

Summary of Funds

 

 

 

31/08/2024

31/08/2023

31/03/2022

31/03/2021

31/03/2020

Total Funds

£286,034

£400,017

£530,176

£430,537

£317,256

Cash at bank and in hand

£233,180

£344,267

£433,165

£347,564

£234,698

Tangible assets and stock

£58,507

£62,832

£68,081

£70,205

£69,481

Debtors less creditors

-£5,653

-£7,082

£28,930

£12,768

£13,077

 

 

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be at least £250,000. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. At 31 August 2024 the total funds held by the charity were £286,034 (2023: £400,017).

 

After excluding tangible fixed assets of £36,061 (2023: £40,315) and restricted funds of £7,762 (2023: £nil), the free reserves balance is £242,211 (£359,702) which falls slightly below the target level. The trustees are obviously mindful of this and focused on ensuring we operate efficiently and effectively in the challenging environment we operate in.  We are now operating at full capacity which ensures revenue from Cornwall Council is maximised.  We are mindful of keeping costs under control and adapting our resources accordingly.  We are aiming to build up our reserves over the coming year and ensure that we are well in excess of the minimum.

KEHELLAND HORTICULTURAL CENTRE LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -

The trustees assessed the major risks to which the charitable company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The organisation is a Charitable Company limited by guarantee, incorporated on 13th April 1983 and registered as a charity on 20 January 1984.

 

The company was established under a Memorandum of Association, which established the objects and powers of the Charitable Company and is governed under its Articles of Association.

 

Business and Management are driven by the Mission Statement as noted under 'Objectives and activities'.

 

The charitable company has continued to face difficulties due to increases in the cost of living, goods and services, national minimum wage and staff salaries, and funding not keeping pace with these. Our priority has continued to be to operate in a safe and secure manner for all our trainees, learners & staff, whilst effectively delivering services.

 

Our thanks to all the staff, trainees, carers, volunteers, and partners who have demonstrated that a flexible and adaptable approach can help us overcome obstacles. We have continued to fulfill our mission statement, maintain a cohesive and ever-growing team managing both horticultural support work and day care provision and our own education programmes alongside supporting the immediate community.

 

The Board of Trustees continues to govern the charity in a positive and solution-focused way.

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:

D J King
S L Pyner
H Bryant
S W Wallace
(Resigned 19 November 2024)
M Thompson
(Resigned 17 November 2023)
I H Smith
J Kelly
(Resigned 13 August 2024)
N Smith

None of the trustees has any beneficial interest in the charitable company. All of the trustees are members of the charitable company and guarantee to contribute £5 in the event of a winding up.

Qualifying third party indemnity provisions

The Trustees consider that they have complied with their duty in section 17 (5) of the Charities Act 2011, which requires them to have due regard to guidance published by the Charities Commission.

The Company is managed by a Board of Trustees; the members of which discharge the functions of a Board of Directors. The number of Trustee seats on the Board must be no less than 3. The Trustees are as stated above and are unremunerated. Induction procedures are in place for newly appointed Trustees, with DBS checks and references requested and recorded.

 

During the reporting period the Board of Trustees met at regular intervals to receive reports from the Chief Executive and make decisions. Key Performance Indicators, Risk Registers, Finance Reports and staff structure updates formed the basis of meetings with the Chief Executive reporting to the board, making recommendations and the Board voting on decisions as necessary. Day-to-day management of the company is carried out by the Chief Executive and Team Leaders. Management keeps in touch with members of the board as appropriate.

 

 

KEHELLAND HORTICULTURAL CENTRE LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 6 -
Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

D J King
Trustee
14 May 2025
KEHELLAND HORTICULTURAL CENTRE LIMITED
STATEMENT OF TRUSTEES' RESPONSIBILITIES  
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -

The trustees, who are also the directors of Kehelland Horticultural Centre Limited 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 charitable company 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; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company 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 charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

KEHELLAND HORTICULTURAL CENTRE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KEHELLAND HORTICULTURAL CENTRE LIMITED
- 8 -

Opinion

We have audited the financial statements of Kehelland Horticultural Centre Limited (the ‘charitable company’) for the year ended 31 August 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes 1 to 21 to the financial statements, including 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).

In our opinion, the financial statements:

-

give a true and fair view of the state of the charitable company's affairs as at 31 August 2024 and 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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

KEHELLAND HORTICULTURAL CENTRE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KEHELLAND HORTICULTURAL CENTRE LIMITED
- 9 -

Opinions on other matters prescribed by the Companies Act 2006

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

-

the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and

-

the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the 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 directors' report included within the trustees' report.

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

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-

certain disclosures of trustees' remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit; or

-

the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, 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 trustees 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 trustees 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

KEHELLAND HORTICULTURAL CENTRE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KEHELLAND HORTICULTURAL CENTRE LIMITED
- 10 -

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

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 charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Matthew Webb FCA (Senior Statutory Auditor)
for and on behalf of Azets Audit Services
14 May 2025
Chartered Accountants
Statutory Auditor
Woodlands Court
Truro Business Park
Truro
Cornwall
United Kingdom
TR4 9NH
KEHELLAND HORTICULTURAL CENTRE LIMITED
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
Unrestricted
Restricted
Total
Unrestricted
funds
funds
funds
2024
2024
2024
2023
Notes
£
£
£
£
Income and endowments from:
Donations and legacies
2
5,135
16,373
21,508
3,443
Charitable activities
3
1,265,051
-
1,265,051
1,185,855
Other trading activities
4
175,898
-
175,898
150,867
Investments
5
3,633
-
3,633
1,103
Other income
6
15,000
-
15,000
-
Total income
1,464,717
16,373
1,481,090
1,341,268
Expenditure on:
Raising funds

Other trading activities

156,248
8,611
164,859
129,277
Charitable activities

Staff costs and charitable expenditure

7
1,430,214
-
1,430,214
1,342,150
Total charitable expenditure
1,430,214
-
1,430,214
1,342,150
Total expenditure
1,586,462
8,611
1,595,073
1,471,427
Net income for the period/year
Net movement in funds
(121,745)
7,762
(113,983)
(130,159)
Fund balances at 1 September 2023
400,017
-
400,017
530,176
Fund balances at 31 August 2024
278,272
7,762
286,034
400,017

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
KEHELLAND HORTICULTURAL CENTRE LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
36,061
40,315
Current assets
Stocks
13
22,446
22,517
Debtors
14
75,224
61,338
Cash at bank and in hand
233,180
344,267
330,850
428,122
Creditors: amounts falling due within one year
15
(80,877)
(68,420)
Net current assets
249,973
359,702
Total assets less current liabilities
286,034
400,017
Income funds
Restricted funds
18
7,762
-
Unrestricted funds
278,272
400,017
286,034
400,017
The financial statements were approved by the Trustees on 14 May 2025
D J King
Trustee
Company registration number 01714560
KEHELLAND HORTICULTURAL CENTRE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
16
(112,075)
(89,373)
Investing activities
Purchase of tangible fixed assets
(2,645)
(628)
Investment income received
3,633
1,103
Net cash generated from investing activities
988
475
Net cash used in financing activities
-
-
Net decrease in cash and cash equivalents
(111,087)
(88,898)
Cash and cash equivalents at beginning of year
344,267
433,165
Cash and cash equivalents at end of year
233,180
344,267
KEHELLAND HORTICULTURAL CENTRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -
1
Accounting policies
Charity information

Kehelland Horticultural Centre Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Kehelland, Camborne, Cornwall, TR14 0DD, United Kingdom.

 

The company has no share capital. The liability of each member who has subscribed to the company's Memorandum & Articles of Association is limited in the event of a winding up to £5.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charitable company's governing document, 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 charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest pound sterling.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The trustees have assessed the use of the going concern basis and have considered possible events or conditions that might cast a significant doubt on the ability of the charity to continue as a going concern. The trustees have considered a period of at least twelve months from the date of approval of these financial statements. In particular, the trustees have considered the charity's available cash balances in conjunction with expected working capital requirements and have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future.

 

The trustees are of the view that there are no material uncertainties that may create significant doubt over the charity's ability to continue as a going concern. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

1.3
Charitable funds

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 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.

1.4
Income

Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company 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.

Legacies are recognised on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

KEHELLAND HORTICULTURAL CENTRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -

Grant income is recognised when the charity has entitlement to the funds, any performance conditions attached to the grant have been met, it is probable that the income will be received and the amount can be measured reliably.

Trading income is recognised when the goods or services have been provided, typically at the point of sale, or as services are performed.

Interest income is recognised using the effective interest rate method.

1.5
Expenditure

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.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

 

The charity is partially exempt for VAT purposes due to the nature of its incoming resources. On a quarterly basis the VAT is attributed to the expenses to which it originated from.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Improvements to leasehold property
- 10% straight line
Fixtures and fittings
- 20% straight line
Office equipment
- 20% straight line
Motor vehicles
- 20% straight line
Payments to provisions of assets
- 20% straight line

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.

1.7
Impairment of fixed assets

At each reporting end date, the charitable company 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).

KEHELLAND HORTICULTURAL CENTRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 16 -
1.8
Stocks

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.

1.9
Financial instruments

The charitable company 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 charitable company's balance sheet when the charitable company 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

Basic financial assets, which include debtors, 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

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.

1.10
Taxation

The charity is exempt from corporation tax on its charitable activities.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

KEHELLAND HORTICULTURAL CENTRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
2
Donations and legacies
Unrestricted
Restricted
Total
Unrestricted
funds
funds
funds
2024
2024
2024
2023
£
£
£
£
Donations and gifts
4,627
-
4,627
3,443

Government grants    

508
16,373
16,881
-
5,135
16,373
21,508
3,443
3
Charitable activities

Personal Budgets

Education Income

Total
2024

Personal Budgets

Education Income

Total
2023
2024
2024
2023
2023
£
£
£
£
£
£

Adult social care

419,776
845,275
1,265,051
331,054
854,801
1,185,855
4
Other trading activities
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£

Kitchen income    

18,820
17,563
Shop income
135,665
121,330

Lettings income

21,413
11,974
Other trading activities
175,898
150,867
5
Investments
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Interest receivable
3,633
1,103
KEHELLAND HORTICULTURAL CENTRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
6
Other income
Unrestricted
Total
funds
2024
2023
£
£
Insurance claim
15,000
-
7
Charitable activities

Staff costs and charitable expenditure

Staff costs and charitable expenditure

2024
2023
£
£
Staff costs
1,218,682
1,130,203
Depreciation and impairment
6,899
11,023

Rates and water

1,828
1,467

Insurance

9,050
8,136

Light and heat

16,344
14,462

Telephone

3,365
1,378

Postage and stationery

4,487
5,121

Advertising

610
1,504

Travel and subsistence

14
154

Motor expenses

7,584
6,356

Rent

16,742
7,274

Uniform and protective clothing

2,544
3,558

Repairs and renewals

33,529
21,047

Cleaning and laundry

5,981
5,966

Staff training

4,675
1,827

Professional fees

17,216
25,766

Dance and other activities

8,757
11,405
Other charitable expenditure
31,535
56,182
1,389,842
1,312,829
Share of support costs (see note 8)
13,072
12,320
Share of governance costs (see note 8)
27,300
17,001
1,430,214
1,342,150
KEHELLAND HORTICULTURAL CENTRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
8
Support costs
Support costs
Governance costs
2024
Support costs
Governance costs
2023
£
£
£
£
£
£

Bank charges

3,308
-
3,308
2,778
-
2,778

IT support and broadband

7,301
-
7,301
6,874
-
6,874

Payroll services

2,463
-
2,463
2,668
-
2,668
Audit fees
-
16,800
16,800
-
12,950
12,950
Accountancy
-
10,500
10,500
-
4,051
4,051
13,072
27,300
40,372
12,320
17,001
29,321
Analysed between
Charitable activities
13,072
27,300
40,372
12,320
17,001
29,321

Support costs are not attributable to a single activity but rather provide the organisational infrastructure that enables output activities to take place.

9
Trustees

During the year the trustee S L Pyner received a salary of £34,858 (2023: £33,013) in respect of her employment as the Horticultural Coordinator.

 

Other than the above, none of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year (2023: none).

10
Employees

The average monthly number of employees during the year was:

2024
2023
Number
Number
72
71
Employment costs
2024
2023
£
£
Wages and salaries
1,121,873
1,048,299
Social security costs
68,654
59,580
Other pension costs
28,155
22,324
1,218,682
1,130,203
There were no employees whose annual remuneration was more than £60,000 (2023: none).
KEHELLAND HORTICULTURAL CENTRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
11
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

KEHELLAND HORTICULTURAL CENTRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
12
Tangible fixed assets
Improvements to leasehold property
Fixtures and fittings
Office equipment
Motor vehicles
Payments to provisions of assets
Total
£
£
£
£
£
£
Cost
At 1 September 2023
152,464
16,056
6,437
34,980
8,861
218,798
Additions
-
2,271
374
-
-
2,645
At 31 August 2024
152,464
18,327
6,811
34,980
8,861
221,443
Depreciation and impairment
At 1 September 2023
115,857
14,157
4,628
34,980
8,861
178,483
Depreciation charged in the year
4,666
1,073
1,160
-
-
6,899
At 31 August 2024
120,523
15,230
5,788
34,980
8,861
185,382
Carrying amount
At 31 August 2024
31,941
3,097
1,023
-
-
36,061
At 31 August 2023
36,607
1,899
1,809
-
-
40,315
KEHELLAND HORTICULTURAL CENTRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
12
Tangible fixed assets
(Continued)
- 22 -

Payments for Provision of Assets

 

i) Pre 1 April 1985

In order that the company may have the use of assets at a cost excluding VAT, certain assets were purchased by Cornwall Council utilising funds raised by the Company. Although the title of these assets remains with Cornwall Council, the Company understands that the Council will permit the assets to be treated as though the title vested with the Company.

 

ii) Post 1 April 1985

From 1 April 1985, when the company registered for VAT purposes, all assets have been purchased through the company and title rests with the company.

13
Stocks
2024
2023
£
£
Finished goods and goods for resale
22,446
22,517
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
43,041
55,501
Prepayments and accrued income
32,183
5,837
75,224
61,338
15
Creditors: amounts falling due within one year
2024
2023
£
£
Other taxation and social security
23,683
9,354
Trade creditors
22,310
10,902
Other creditors
10,242
29,440
Accruals and deferred income
24,642
18,724
80,877
68,420
KEHELLAND HORTICULTURAL CENTRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -
16
Cash generated from operations
2024
2023
£
£
Deficit for the year
(113,983)
(130,159)
Adjustments for:
Investment income recognised in statement of financial activities
(3,633)
(1,103)
Depreciation and impairment of tangible fixed assets
6,899
11,024
Movements in working capital:
Decrease/(increase) in stocks
71
(5,147)
(Increase)/decrease in debtors
(13,886)
4,975
Increase in creditors
12,457
31,037
Cash absorbed by operations
(112,075)
(89,373)
17
Analysis of changes in net funds

The charitable company had no debt during the year.

18
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Movement in funds
Movement in funds
Incoming resources
Balance at
1 September 2023
Incoming resources
Resources expended
Balance at
31 August 2024
£
£
£
£
£
Growth Hub grant
-
-
16,373
(8,611)
7,762

Growth Hub Grant - In order to address the pressures on space on our site at Kehelland, we located a town centre shop site in Camborne for our sales operations. This allowed us to apply for a grant from the Cornwall and Isles of Scilly Growth Hub to assist us with developments in town and fund much needed infrastructure improvements on site.  The grant, which we were required to match-fund, allowed better digital & physical access in the shop in Camborne; it covered the cost of our new Electronic Point of Sales System, disabled access lift, kitchen & accessible toilet.  The grant also part funded providing power and WiFi to our onsite shop.

19
Analysis of net assets between funds
Unrestricted funds
Restricted funds
Total
Unrestricted funds
2024
2024
2024
2023
£
£
£
£
Fund balances at 31 August 2024 are represented by:
Tangible assets
36,061
-
36,061
40,315
Current assets/(liabilities)
242,211
7,762
249,973
359,702
278,272
7,762
286,034
400,017
KEHELLAND HORTICULTURAL CENTRE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
20
Operating lease commitments

At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
20,600
7,100
Between two and five years
8,642
11,242
29,242
18,342
21
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
161,396
174,237

During the financial year S Pyner, spouse of Sally Pyner (trustee), was employed by the charity and was paid a gross salary of £1,553 (2023: £1,607).

 

During the period payments were made to Resilient Orchard Cornwall CIC, a CIC in which Sally Pyner (trustee) is a director, of £480 (2023: £945) relating to event expenditure. There was no outstanding balance at the year end (2023: £240).

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