NEWTON_DEE_CAMPHILL_COMMU - Accounts

The Trustees present their annual report and financial statements for the year ended 31 March 2023.

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 Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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).

Newton Dee became a totally independent Camphill charity on 5 July 2012, although it has been a Camphill Community for adults with additional support needs since 1960. Our intentional community at Newton Dee continues to thrive, attracting residents, day placements, co-workers and employees who wish to join us.

On 16 June 2023 there are 78 residents with additional support needs, and usually up to 21 adults on day placement from the surrounding local authority areas, who are active within our various workshops, with the support and care of our resident co-workers and assisted by 40 employees (full, part time, bank staff and seasonal workers) who live locally. There continues to be a waiting list for residential and day placements in our community.

Our business model is set up in such a way that through our Development Fund, we can continue with the ongoing renovation and refurbishment programme of the houses and workshops at Newton Dee. The community’s Quality Assurance management programme continues to help us maintain a high level of quality in care and support in the well cared for and well-maintained homes in the community. The Trustees are grateful for the prudent management of all internal budgets and procedures which ensures that these standards can be maintained.

The last year saw us complete two large building projects, The Craft Studio and Aspen House. Aspen House has ample ground floor accommodation, which is important for an ageing population. The Craft Studio has been improved greatly to allow for more space, better toileting facilities and better accessibility for those with mobility difficulties.

The traditional “Camphill co-worker management model”, which Newton Dee maintains, continues to be held up as a beacon of care. Newton Dee continues to have delegations and ad hoc visits from organisations wishing to understand how this model of care and support in a community setting can operate and be replicated to meet the needs that they serve. These visits, from the UK and abroad, have been by groups and individuals wishing to learn from our model, to learn about any innovative ideas that they would be able to adopt in their own organisations. From March 2020 to late 2022 we had not been able to arrange such visits. We have recently had visits from other UK based organisations and have continued to host and support the Camphill Values in Practice (CVIP) course that is available for employees and co-workers of Camphill Communities. And in April 2023 we hosted an international Youth Conference. We welcomed 75 young people into the community to have talks and workshops around spirituality and living and working together with adults with learning difficulties. This was well organised and supported by all in the community, and will hopefully make Camphill and Newton Dee known to a wider group of young volunteers that may join us in the future.

At the last inspection by the Care Inspectorate Newton Dee received gradings of Very Good (Grade 5) for the categories inspected. Due to the Covid-19 pandemic the Care Inspectorate had to assess each care and support organisation to decide where they needed to concentrate their efforts during the pandemic. Newton Dee provided the Care Inspectorate and Trustees with detailed weekly, and later with monthly reports, on the changing situation within the community in relation to the pandemic. Newton Dee was assessed as low risk by the Care Inspectorate from the outset of the pandemic and has maintained that same assessment throughout this period. Newton Dee had the first cases of Covid-19 in March 2022. For the most part, cases had been mild. However, last summer, one of our villagers who had underlying health conditions became very unwell. His COVID infection passed, but the damage to his body was too much. He passed away in hospital on 3 August 2022

In addition to a very full education and personal development programme for residents and co-workers, Newton Dee’s social events continue to grow, year on year, with the Phoenix Community Centre (opened in 2013) increasingly enhancing the lives of our residents and integrating the local community into the understanding and appreciation of what we achieve, and aim to achieve, at Newton Dee. During the pandemic, guidelines meant that the community was largely unable to use the Community Centre, so many community-wide events and activities have been replaced by many imaginative and artistic activities in the households. Over the last year, as restrictions have lessened, we have been able to restart many activities. And we have recently begun to host events and concerts with people from outside of Newton Dee joining in. We have been very excited to once again share our cultural lives with the wider community.

As can be seen from the more detailed information below, Newton Dee is in a good position to maintain and develop its ability to offer care and support in the community in this intentional community setting. The Trustees are not complacent however, and maintain due diligence in all aspects of management i.e. Finance, Reserves, Investments, Strategic Risk Policies, and all other legal responsibilities to ensure that Newton Dee will continue to flourish in the benefit of the care it provides for the communities in and around Aberdeen.

The more detailed Trustee Report continues below.

The charity's objects are, for the public benefit, to relieve sickness, promote good health, provide care to advance the education and training of people with a disability (whether mental or physical), for the young, the old, or people otherwise in need, in harmony with the ideas and ideals arising out of Anthroposophy, particularly (without limitation) by the establishment of a community or communities that includes shared community households, residential households, day centres, kindergartens or other types of social and/or educational facilities, in which the beneficiaries live and/or work and/or to which they otherwise resort, in community with persons providing support.

Newton Dee is an independent Camphill charity based in Aberdeen, Scotland which offers a home, fulfilling work, a meaningful social/cultural life and opportunities for personal development in all of the above areas to adults with additional support needs. In all, some 200 people live and work within the Newton Dee community. Around half of whom have additional support needs. In addition, there are currently 40 employees (numbers fluctuate based on bank staff and seasonal support) from the local area who come into Newton Dee each week to support the work of the community.

Newton Dee is currently home to 78 adults with additional support needs who live and work within the community. In addition, up to 21 people, with additional support needs from the locality, also take part in the variety of work opportunities within Newton Dee each week. This work includes land work (dairy farming, mixed farming, horticulture and estate work), craft workshops include a joinery, a wood workshop, a craft metal workshop and a craft studio. There is also a confectionery, bakery, whole-food shop and a café which also sells some craft produce from the workshops, all open to the public. During the period of the pandemic, the community has remained closed to the public and those on day placements in Newton Dee only started returning to their work activity placements in Newton Dee in January 2021 when the national guidelines and agreements with the placing local authorities made it possible – however at a very reduced capacity. Our workshops are now fully open again. We had a staggered opening to slowly increase the amount of day placements and members of the public entering the village.

The ethos of Newton Dee is that each person brings different abilities, which are valued for the benefit they offer to the individual, to our community and to society in general. Newton Dee's home life is based around large and small households ranging from four to sixteen people. In addition, we have some shared houses, apartments and bed-sits allowing us to meet the needs of everyone.

There are 40 dwellings in Newton Dee's wooded grounds, which extend to a total of 180 acres, of which 120 acres is dedicated to our biodynamic farm.

Career volunteers - (Co-workers)

An important element of the ethos of Newton Dee Community is the separation of work and remuneration. Adults with additional support needs may be particularly disadvantaged in society in finding meaningful work which enhances individual fulfilment and a sense of identity. This ceases to be a problem within a community in which all contribute according to their ability and where people are assisted in finding their vocation within Newton Dee where there are so many varied opportunities for personal development.

Residential co-workers at Newton Dee do not receive a salary. The co-worker’s living costs, (co-workers share daily life and work alongside our beneficiaries as a lifelong vocation), are met from common resources and according to individual needs. The life sharing approach within the community also means that Newton Dee is in a position to offer highly cost-effective care and support to those with additional support needs who choose to join the community or to benefit from the day placement work, training and activities available.

Over the last year Newton Dee has continued to maintain and develop both the accommodation and work opportunities within the community. At the present (June 2023) there are 78 residents with additional support needs living and working in Newton Dee.

There continues to be a high level of demand, from adults with additional support needs, wishing to live in Newton Dee. Because of this the waiting list is growing, giving Newton Dee confidence of the relevance of its contribution to the needs of society.

Over the last year Newton Dee has continued to maintain and develop both the accommodation and work opportunities within the community. At the present (June 2023) there are 78 residents with additional support needs living and working in Newton Dee.

There continues to be a high level of demand, from adults with additional support needs, wishing to live in Newton Dee. Because of this the waiting list is growing, giving Newton Dee confidence of the relevance of its contribution to the needs of society.

There is an increasing demand for work and training opportunities (day placements) from both Aberdeen City and Aberdeenshire for adults with additional support needs who live locally. Newton Dee has been able to respond to these needs and continues to see how this opportunity can be developed. Newton Dee sees this as an ongoing and positive partnership for the future. We currently support 21 day activity placements and we are working towards increasing this further.

The Phoenix Community Centre, which was completed in January 2013, has been in full use by the community (plays, concerts, performances by visiting artists, social events, art exhibitions etc.) since its completion. The continued development in the use of the community centre, overseen by the Community Centre Management Group, has proved to be a significant factor in the development of Newton Dee’s integration into the locality. This is resulting in a growing circle of friends and supporters. We have had a slow re-start (from the pandemic) to hosting events to ensure that everyone was comfortable with inviting guests into the community again, but now we have an exciting program of performances and events scheduled in. There seems to be a real excitement for new cultural events and engagement with our wider community.

Newton Dee continues to maintain and develop its houses, workshops, agricultural buildings, community centre, health and therapy related buildings, etc. underpinned by well monitored repair and renewal and capital budgets. This responsibility is carried by the Building Group (maintenance and small upgrades) and Building Development Group (Long term planning and development). The Building Development Group has recently been reformed with reps from the following groups: Building Group, Sustainability Group, Finance Group, Welfare Group, HR Group, and our Quality Management Group. We want to ensure that Building Development Group has a good overview of the needs of the community to ensure that we prioritise the right building projects for our continued development.

Education and training for co-workers and employed staff continues to be an essential element in strengthening the future of the community and what it can offer society. Therefore, the relationship with Robert Gordon’s University has played an important role in the education that we can offer. The SVQ (Scottish Vocational Qualification) route to qualification provides another possibility for those working in Newton Dee. Newton Dee also organises regular education/training sessions in-house as well as bringing in speakers with other areas of expertise that helps us to develop our abilities to support those living or working in Newton Dee. This emphasis on education helps to encourage those working in Newton Dee in their personal development and enhances the support that they are able to offer. Obviously, during the period of pandemic, training opportunities have been reduced but we have made use of relevant courses online whenever possible. Newton Dee continues to ensure that adequate funds are budgeted each year to meet the education/training needs of the community.

Newton Dee has continued to review and refine its management structure over the last years. These developments have been helpful in supporting the Board of Trustees to carry out its governance role. The continuing work with quality assurance ensures that we are in a continual process of review and reflection of our management and governance.

The success of the work of the charity can be demonstrated by the constant and increasing demand for residential and day places at Newton Dee. There have been some recent deaths of villagers that were unwell. This has been a sad time for us. This means that we currently have some vacancies. We are using this time to sort out some internal moves and changes for people, and we have had some working visits for people who would like to join Newton Dee. As we finalise some internal moves, we will then be in a position once again to admit new residents to increase overall numbers in the village.

The integration, of those living at Newton Dee, into the local community has always been an important aim. The Bakery, Confectionery, Wholefood Store and Café are well established in providing a high-quality service and give opportunities for a fruitful interaction with the local community.

The Care Inspectorate completed its annual inspection of Newton Dee in November 2019 under the two themes of “Quality of Care and Support” and “Quality of Management and Leadership”. As a result of the inspection Newton Dee was awarded “Very Good” grades (Very Good = Grade 5) in both of the categories inspected. As mentioned previously, the Care Inspectorate graded Newton Dee as “low risk” at the outset of the pandemic and this grading continued throughout the last 3 years of the pandemic. They have not inspected Newton Dee since November 2019, reassured by the weekly and later monthly reports that we have continued to submit. We expect to have an inspection soon.

As part of the monitoring of Newton Dee’s success in achieving its goals, the community had engaged in a quality assurance programme “Ways to Quality”. Confidentia, an internationally accredited auditing and certificating organisation, conducted these annual audits. This programme had assisted the community in setting its goals each year and with reviewing progress on any goals set. This has greatly benefitted the development of the community in its many different areas of activity. However, there have been difficulties with Ways to Quality, the quality of the translations, and time it took to translate feedback and the inflexibility to collaboratively work with implementations of their feedback and recommendations led us to begin developing our own Quality Management System. We will use many of the tools that Ways to Quality taught us, and we will continue to carry out regular review’s and giving accounts. We will invite outside professionals to help review our different groups and utilise a wider variety of systems and schools of thought to continue to challenge ourselves and ensure that we continue to improve our practice. We have recently been working with Gross National Happiness as a tool to help ensure a good quality of care. This will work alongside regular reviews from outside professionals that we invite to help ensure a good quality of care.

Duty of candour 

Newton Dee Camphill Community aims to create a culture that supports a safe environment, which encourages workers to report concerns or when something has gone wrong. We believe that an atmosphere of openness, honesty and transparency will enable those carrying responsibility to expect support rather than blame and will help to develop good relationships between all who live or work in Newton Dee. In the event of an unintended or unexpected incident that results in harm or death, we believe that how we respond to such an incident will make a real difference to people’s experience, and that people want to be told honestly what happened and what will be done in response, and to know what actions will be taken to reduce the risk of the same thing happening again to someone else in the future. These conversations should happen as soon as possible after an event happening or harm being confirmed.

Therefore, in the event of any incident that is unexpected and has resulted in death or harm and is not related to the natural course of the person’s current condition or illness for which they are receiving care, we will follow our Duty of Candour Procedure, as soon as it is clear that this has been triggered.

There have been no incidents that have triggered this procedure in the last year.

Covid-19 pandemic 

Newton Dee responded quickly in March 2020 to the new risks faced related to Covid-19. A group of four people was formed with the task of guiding the community through the changing guidelines, restrictions, and contacts with authorities etc. Newton Dee was closed to the public in March 2020 and only started to open to the public in early 2022. We had to close down our day placement programme but commenced with reopening it for some people as soon as were able to, following agreements from the relevant authorities. Through careful management and individual responsibility, we had managed not to have any cases of covid within Newton Dee nor among our employees until January 2022. Since re-opening though, it has not been possible to keep cases out of the village. But by this point enough of us had been vaccinated that we felt confident to start opening again.

We would like to thank the efforts made by every individual who all restricted their personal lives in such a way that has helped us to keep everybody safe during this period.

We had one death related to COVID in August 2022 to an elderly villager who had already been unwell. All other cases of COVID have been mild to moderate in nature.

The Statement of Financial Activities shows a net increase in funds for the year of £146,574 to £32,306,169.

The charity’s main sources of income are fees and contributions in respect of our beneficiaries and from workshop and agricultural activities and other services. The funding from government sources for residents has reduced slightly due to vacancies that we were unable to fill due to the pandemic. Newton Dee's workshops continued to provide work for most of the period of the pandemic where possible. The Store, Café, Bakery and Confectionery also continued to operate but were closed to the public and could only offer a much-restricted service to the community, always abiding by the national guidelines. This resulted in a large drop in the surplus as expected. They have now fully re-opened.

Included in the income is the amounts relating to transactions between the various internal units and the audit report draws attention to this in respect of UK GAAP recommendations. The Trustees have started procedures and will meet with the trading accounts holders to discuss this and will implement the new system/procedure (separating the internal transactions).

Reserves policy  

The Trustees have considered the disposition of the charity’s reserves and this is set out in the notes to the financial statements.  

The General Reserve (being the free reserves of the charity) is intended to protect the charity’s charitable operations and to limit risk in the event of an unforeseen downturn in income or an unexpected need for additional expenditure. It is set by the Trustees, after due consideration, at £2,519,295.

There are Restricted Funds that have been donated totalling £11,491.98

1. £4,983.00 Government Grant from the Workforce Wellbeing Fund for Adult Social Work and Social Care. The funds must be used for the intended purpose, to buy equipment for a gym for the staff of Newton Dee Camphill Community.

    

2. £8,418.68 Cycling Scotland Grant for the provision of cycling equipment for coworkers and a cycling shelter and service station for the public to use at the Café. £2,909.70 has been spent already on cycling equipment, with the remaining £6,508.98 to be spent on the shelter and service station in the new financial year.

Designated Funds have been allocated by the Trustees for particular purposes. These are:  

• The Fixed Asset Reserve which represents the value of unrestricted funds that are held in the form of the tangible assets which are stated at note 15. The value of the fund at 31 March 2023 was £22,649,102.

• The Development Fund is for the purpose of refurbishment of existing properties and the provision of additional buildings. At 31 March 2023 the fund was £7,102,290.

Fundraising 

Newton Dee has not been active in fundraising over the last year. Despite this, Newton Dee has been fortunate to receive donations and legacies for which we are most grateful.  

There have been no concerns or complaints raised in regard to fundraising or use of donations. Newton Dee is not registered with any fundraising authority. 

Changes in funding in the last year     

Aberdeen City and Aberdeenshire Councils continue to be responsible for a high proportion of the financial support of adults with special needs living and/or working at Newton Dee. Newton Dee is in regular contact with Aberdeen City Council and continues to monitor its finances to reduce the effects of any possible unexpected national changes in the coming year. In the meantime, new fee levels were finalised with Aberdeen City for 2023/24 resulting in an average increase of approximately 3.3% for residential placements over the previous year. Newton Dee is grateful to Aberdeen City and Shire for making this possible.

Newton Dee is fully aware of the current challenging economic climate and will continue to take all possible precautions to minimise its effect on the quality of the work of the charity.

Remuneration of key management personnel 

Camphill co-workers, resident at Newton Dee, are responsible for the management of the community, reporting regularly to the Trustees. Co-workers do not receive salaries, but their needs are met from the community funds.  

The management structure in Newton Dee (described below) means that all expenditure is closely monitored by different mandated groups within the community and is reported upon at every meeting of the Board of Trustees.

Investment policy   

The Trustees have appointed Sarasin & Partners LLP as our investment managers. Long term funds and funds not required in the shorter term are invested in accordance with Newton Dee's investment policy. The policy states that a “diversified risk” approach be adopted and that any direct investments in companies be ethically guided.    

Covid-19 Pandemic

Newton Dee implemented immediate major precautions across the community in March 2020 in response to the national situation. All day placements were suspended with the agreement and support of the families and the relevant local authorities. We worked particularly closely with Aberdeen City and Shire Councils, The Care Inspectorate, as well as with other relevant bodies. Excellent advice meant that we have been able to keep any outbreaks of COVID contained to individual houses, without internal transmission. All the residents at Newton Dee and more than 95% of the co-workers and employees have been fully vaccinated.

Principal risks and uncertainties 

Using a risk management process, the Trustees continue to assess and identify significant risks and have established systems and procedures to mitigate these risks. They are categorised under the following headings: Management and Administration (of the community and individual households and workplaces), Finance and Governance. They are reviewed regularly by the Management Group and the Board of Trustees.

The possible breakdown of working relationships in the community would have serious impact significance, though the likely frequency of this occurring is relatively low. Each member of the community and employee receives individual peer supervision which gives support to the individual and the opportunity to voice concerns and issues.

In addition, there are mandated groups where issues are shared and resolved. Our continual development of our own quality management system, reviewing of our Mandate Groups and giving account also helps us to address any interpersonal relationship concerns.

Compliance with statutory requirements is of primary importance. Failure to comply is recognised as a significant risk as it may jeopardize the funding on which the charity depends. Close cooperation with the Care Inspectorate, Aberdeen City Council and other regulatory bodies is in place to mitigate this risk. Also, advice is actively sought from external independent sources in issues of general legal advice, human resource management, health and safety etc. Regular reporting by management to Council is in place.

The risk management of the Covid-19 threat has been dealt with by a specially appointed community task force who have continued to monitor the situation on a daily basis. They interpret and implement any changes in regulations and guidance on behalf of the community. As the situation has become less critical this special task force has been able to step back and our normal management procedures have resumed.

Financial mismanagement and fraud are a risk of high impact significance. To manage this risk a number of measures are in place. There is a practice of heightened transparency and accountability in financial decisions

and actions. Minutes of the Finance Group are circulated in the community and to Trustees. All major transactions must be signed by two authorised signatories. Apart from the statutory annual audit, quarterly management accounts are presented to Council. Council has high confidence that this risk is well managed.

There are changes to the regulations regarding VAT reporting and Newton Dee has met these new requirements within the stated deadlines.

The Trustees and the Management Group have developed a Five-Year Development Plan which projects income and expenditure, both capital and revenue, over the period. This takes due regard of possible changes in funding income and operating expenses and seeks to ensure that funds are available for development when and where needed. This forms part of a wider plan which covers all aspects of the charity’s activities in pursuit of its objectives. The plan is reviewed and updated at least once a year, and more often if a change in circumstances makes it necessary.

Construction work has been completed on the demolition and replacement of the “Old Store” in Newton Dee with a new house for five residents plus supporting residential co-workers. This house has improved accessibility to help meet the changing requirements of the community. Due to the Covid-19 pandemic, the construction of the new building only commenced in late October 2020 and was completed and moved into in August 2022.

Woodburn House has now been emptied, this will enable us to carry out some upgrades to Woodburn House. Plans for the upgrade have been approved by the community and the Board of Trustees and work will commence in September 2023. We then look forward to the next improvement/renovation of one of our older houses in the community. This enables the community to provide an ever-improving quality of housing for residents.

There are also plans to update the milking parlour on the dairy farm at Newton Dee to make further improvements in line with health and safety standards. This project has been delayed, allowing additional time to identify the best way forward. The plans have now been approved by the community and the Board of Trustees. Work will start later this summer (2023).

We have also put in a bid on a land purchase. We were selected as the preferred buyer, but due to delays between the sellers and HMRC, this has not yet been finalised.

The Craft Studio had temporarily moved to a space in the Community Centre while the Craft Studio building at the northern end of the community was refurbished, creating a greatly improved working space for all who work there. This work was completed in June 2022. The new space is greatly appreciated by all who work there.

Newton Dee Store and Newton Dee Café, usually open to the public, have continued to attract more people from the locality into the community in recent years. Unfortunately, the Covid-19 pandemic has meant that the Store, Café and Bakery have been closed to the public since March 2020. The Store re-opened in early 2022, with the Café opening up to the public in April 2022. Many of our villagers had expressed concerns over the public returning to Newton Dee, so we opened slowly and carefully to allow the whole community time to adjust. The Store and Café are now fully opened again, and being used widely by the public and our villagers.

Any developments at Newton Dee will be closely related to the funding situation both nationally and locally. Newton Dee will continue to maintain close contact with its various income sources in the planning of any developments in the coming years.

The charity is a company limited by guarantee, governed by its Articles of Association, and is recognised as a charity by the Office of the Scottish Charity Regulator in accordance with the provisions of The Charities and Trustees Investment (Scotland) Act 2005. In accordance with the Articles of Association, every member is liable to contribute the sum of £1 in the event of the company being wound up.

The proportion of co-worker Trustees to non-resident Trustees is maintained at the level required by the Office of the Scottish Charity Regulator.  

The Trustees, known collectively as the Council, are appointed by the members of the Company in accordance with the constitution, maintaining a majority of external Trustees. The Council meets on a regular basis to carry out the governance responsibilities of the charity.     

The Management Group coordinates the day to day running of the charity’s operations by coordinating the work of the mandated working groups (Welfare, Finance, HR etc.) to ensure the sound and purposeful management of Newton Dee Community. The Management Group and mandated groups report to the Trustees on a regular basis and keeps them informed of the ongoing development of policies and procedures as required. Trustees also attend some mandate committee meetings to strengthen the links between management and governance of the charity.

Newton Dee aims to ensure that all Trustees receive the induction, training and ongoing support they need to carry out their duties effectively. All new Trustees undertake an induction programme to familiarise them with the organisation, their duties and legal responsibilities, underpinned by an understanding of the ethos of this particular Camphill community. 

Camphill Architecture & Development Ltd are set up as a wholly owned subsidiary company of Newton Dee Camphill Community. 

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:

The Trustees, who are also the directors of Newton Dee Camphill Community 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 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 Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and 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.

In accordance with the company's articles, a resolution proposing that Meston Reid & Co be reappointed as auditor of the company will be put at a General Meeting.

As can be seen from the more detailed information below, Newton Dee is in a good position to maintain and develop its ability to offer care and support in the community in this intentional community setting. The Trustees are not complacent however, and maintain due diligence in all aspects of management i.e. Finance, Reserves, Investments, Strategic Risk Policies, and all other legal responsibilities to ensure that Newton Dee will continue to flourish in the benefit of the care it provides for the communities in and around Aberdeen.

The more detailed Trustee Report continues below.

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.

Qualified opinion on financial statements

We have audited the financial statements of Newton Dee Camphill Community Limited (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes 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, except for the effect of the matter described in the Basis for qualified opinion section, the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Basis for qualified opinion

Unrestricted income on charitable activities is recorded at £5,971,667 for the year ended 31 March 2023. Under UK GAAP "An entity shall include in revenue only the gross inflows of economic benefits received and receivable by the entity on its own account." The charity has included within this income amounts relating to transactions between the various internal trading units and therefore as a result both income and expenditure are overstated by the value of these transactions.

We were unable to accurately establish the extent of the value of the internal transactions and accordingly we are unable to give an opinion on whether the income value of £5,971,667 and expenditure value of £5,676,541 are free from material misstatement. The overall net movement in funds is not misstated due to the transactions being reflected in both income and expenditure.

We were also unable to accurately establish the extent of the value of the internal transactions in the previous year and accordingly we are unable to give an opinion on whether the comparative income of £5,840,853 and expenditure of £5,127,156 were free from material misstatement. The overall net movements of funds in the comparative year of £701,994 is not misstated due to the internal transactions being reflected in both income and expenditure.

We conducted our audit in accordance with International Standard on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit if the financial statements section of our report. We are independent of the 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.

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 charity’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.

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.

In the light of the knowledge and understanding of the charity 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 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

adequate and proper 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

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.

As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the charity 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 charity’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.

We have been appointed as auditor under Chapter 3 of Part 16 of the Companies Act 2006 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Based on our understanding of the charity and its activities, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

• Inquiring of management and, where appropriate, those charged with governance, as to whether the charity is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;

• Inspecting correspondence, if any, with relevant licencing or regulatory authorities;

• Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and

• Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud.

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, the Companies Act 2006 and the Charities Statement of Recommended Practice.

In addition, we evaluated the Trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to income recognition (which we pin pointed to cut off assertion), and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

• Making enquiries of the Trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;

• Gaining an understanding of the internal controls established to mitigate risks related to fraud;

• Discussing amongst the engagement team the risks of fraud; and

• Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentation or the override of internal controls.

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.

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 and to the charity’s trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and trustees 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, the charitable company’s members as a body,and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

designated

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

All income and expenditure derive from continuing activities.

designated

Newton Dee Camphill Community Limited is a private company limited by guarantee incorporated in Scotland. The extent of the liability of the members of the charity on winding up is limited to a maximum of £1 each. The registered office is The Office, Newton Dee Village, Bieldside, Aberdeen, AB15 9DX.

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), 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 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 unless otherwise stated in the relevant accounting policy note(s). The principal accounting policies adopted are set out below.

The charity has taken advantage of the exemption from preparing consolidated financial statements, on the grounds that its subsidiary, Camphill Architecture & Development Ltd, was not material. These financial statements therefore present information about the charity as an individual undertaking rather than a group.

The Trustees have prepared budgets and projections, taking into account possible changes to future income and expenditure, which show that the entity is able to operate continue as a going concern for the foreseeable future.

Therefore the Trustees continue to adopt the going concern basis of accounting in preparing these financial statements. The Trustees have considered a period in excess of twelve months from the date of the approval of financial statements in making their assessment.

Unrestricted funds are donations and other incoming resources received or generated for charitable purposes.

Designated funds are unrestricted funds earmarked by the Trustees for particular purposes. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Restricted funds are to be used for specified purposes laid down by the donor. Expenditure which meets these criteria is identified to the fund, together with a fair allocation of overheads. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Donations and other forms of voluntary income are recognised as incoming resources when receivable, except in so far as they are incapable of financial measurement. Legacies are included when notified to the charity, if the receipt is both certain and measurable. Grants, fees and contributions are included in the year in which they are due. Income from charitable trading activities is included when receivable. Investment income is recognised on a receivable basis.

Gifts in kind donated to the charity on incorporation were valued at a reasonable estimate of their value to the charity. In the case of land and buildings, this was arrived at by way of independent professional valuation.

Expenditure is recognised in the year in which they are incurred with liabilities being recognised where there is a current or constructive obligation to pay. Expenditure is allocated to a particular activity where the costs relate directly to that activity and include attributable VAT when this cannot be recovered. Expenditure has been allocated on the basis indicated below.

All costs are considered to relate to charitable activities and have been allocated between community income generating activities and community expenditure as shown in note 7.

Community income generating activities relates to the costs associated with:

Farm and land production - costs attributable to running the farms as part of the community activities.

Workshop and general produce - costs attributable to running craft workshops and retail outlets.

Community expenditure includes all other costs including the cost of supporting people who are living in the centre, the salaries, direct expenditure and overhead costs of staff who promote fundraising activities as well as costs directly attributable to managing the investment portfolio and governance costs which relate to the general running of the charity and includes items such as the external audit, legal advice for Trustees and costs associated with constitutional and statutory requirements.

All costs are directly attributable to specific activities.

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

Expenditure of a capital nature is capitalised where the cost is over £1,500. 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.

Assets gifted to the charity on incorporation are depreciated over the remaining expected useful life of the asset at the date of receipt.

The depreciation charge for heritable buildings is based on total carrying value which includes an element of land. It is not possible to value separately the land and any adjustment to exclude the land element would not materially affect the depreciation charge.

Land and buildings gifted to the charity on incorporation were independently valued by qualified surveyors, Shepherd Commercial and Allathan Associates. Specialist buildings were valued at depreciated replacement cost and non-specialised at market value. The value attributed to land and buildings will be treated as deemed cost henceforth as a cost based valuation model is adopted.

Quoted investments are stated at fair value and the investment in the subsidiary is stated at its shareholders' funds value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year.

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 net realisable value as follows:

Raw materials – purchase cost on a first-in, first-out basis

Work in progress and finished goods – cost of direct materials and labour plus attributable overheads based on normal level of activity

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 recognised as a charity for the purposes of applicable taxation legislation and is therefore not subject to taxation on its charitable activities.

The charity pays contributions to a defined contribution pension scheme for certain employees. The contributions paid during the year are charged to the Statement of Financial Activities.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

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.

No significant judgements have had to be made by management in preparing these financial statements and they consider there to be no material areas of estimation uncertainty.

Fees and contributions

Income from community activities

Expenditure on community income generating activities

The resident members/Trustees are co-workers who live and work in the Newton Dee community. Co-workers are provided with living accommodation and daily essentials by the community. The co-workers live with the beneficiaries and all expenditure is paid within the community.

During the year a donation of £5,746.80 was made to the charity by a Trustee.

The average monthly number of employees during the year was:

No key personnel were remunerated (see also note 9).

A subsidiary company, Camphill Architecture & Development Ltd, company number SC496681, was incorporated on 3 February 2015. The company has 1 ordinary share of £1. The investment has been valued at the net assets value and this equates to cost of £1 and subsequent unrealised gains of £15,941.

The charity is incorporated as a company limited by guarantee having no share capital and, in accordance with the Memorandum of Association, every member is liable to contribute a sum of £1 in the event of the company being wound up. At 31 March 2023 there were 61 members.

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £27,510 (2022 - £21,903).

At 31 March 2023 the charity had capital commitments of £nil, for which no provision has been made in these financial statements.

The charity is connected to Phoenix Benevolent through their association with the Camphill movement. A donation of £90,000 was payable to Phoenix Benevolent in respect of retired co-workers.

These financial statements are separate charity financial statements for 31 March 2022.

Details of the charity's subsidiaries at 31 March 2023 are as follows:

The charity had no debt during the year.