OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

COMPANY REGISTRATION NUMBER: 2580196 CHARITY REGISTRATION NUMBER: 1001916

SERVICE TO THE AGED

Company Limited by Guarantee FINANCIAL STATEMENTS

31 MARCH 2021

COHEN ARNOLD

Chartered accountant & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

PAGES
Trustees' annual report (incorporating the director's report) 1 to 4
Independent auditor's report to the members 5 to 8
Statement of financial activities (including income and expenditure
account) 9
Statement of financial position 10
Statement of cash flows 11
Notes to the financial statements 12 to 21

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

TRUSTEES' ANNUAL REPORT (INCORPORATING THE DIRECTOR'S REPORT)

YEAR ENDED 31 MARCH 2021

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2021.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered charity name Service to the Aged Charity registration number 1001916 Company registration number 2580196 Principal office and registered New Burlington House office 1075 Finchley Road London NW11 0PU The Trustees Mr S I Freshwater (Honorary Treasurer) Mr B S E Freshwater Mr S J Goldberg (Joint Chairman) Mr A M Jacobs BEM (Joint Chairman) (Chair: Admissions Committee) Company secretaries Mr J S Southgate Mr M D E Bale Auditor Cohen Arnold Chartered accountant & statutory auditor New Burlington House 1075 Finchley Road London NW11 0PU

Events after the end of the reporting period

Particulars of events after the reporting date are detailed in note 23 to the financial statements.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Service to the Aged is a Company Limited by Guarantee not having a Share Capital. It is registered as a charity with the Charity Commission (Number 1001916).

Service to the Aged's governing instruments are its Memorandum and Articles of Association dated 5 February 1991.

Organisation

The day to day affairs of the Company are administered by a Management Committee, the joint Chairmen of which are Mr S.J. Goldberg and Mr A. M. Jacobs BEM. The Chairman of the Admissions Committee is Mr A. M. Jacobs BEM and the Chairman of the Governance Committee is Dr D. Noimark.

The Company is governed by its Governors, who are advised on the strategic direction and policy by an Executive, the joint Chairmen of which are Mr S.J. Goldberg and Mr A.M. Jacobs BEM. The Executive meets regularly and delegates the day to day operation of the organisation to a Management Committee. New members join the Management Committee at the invitation of the Executive and are chosen with a view to ensuring that it contains an appropriate balance of experience relevant to the operations of the charity. A number of other Sub-Committees operate and meet as necessary.

All Governors (Trustees) give of their time voluntarily and no benefit or expenses were paid in the year. SAGE aims to make 60% of its accommodation available at all times to persons who cannot afford to pay the full fees charged.

- 1 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

TRUSTEES' ANNUAL REPORT (INCORPORATING THE DIRECTOR'S REPORT) (continued)

YEAR ENDED 31 MARCH 2021

Organisation (Continued)

The Home is situated at 208 Golders Green Road, London NW11.

Risk Management

The Charity has assessed the major risks to which the Charity is exposed in particular those to the operations and finances of the Charity, and is satisfied the systems are in place to manage its exposure to those risks.

OBJECTIVES AND ACTIVITIES

Objects

SAGE is a Registered Charity (No. 1001916) and is constituted as a company limited by guarantee. Its objects and powers and other constitutional matters are set out in its Memorandum and Articles of Association and provide for the relief of the aged of the Jewish community and in particular for the provision of residential accommodation and nursing home facilities for such persons. The Charity operates under the name SAGE.

Aims

We confirm that we have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to public benefit guidance published by the Charity Commission when reviewing the Charity’s aims and objectives and in planning our future activities.

ACHIEVEMENTS AND PERFORMANCE

During the year, Sage continued to provide quality care to its residents. Upon inspection by CQC in July 2021, it was found to require improvement in the areas of safety and leadership. In respect of both, Management has agreed appropriate Action Plans with CQC to improve those specific areas. In addition, the Trustees have restructured the Senior Management Team (SMT). The trustees have created a new role of Director of Operations and Human Resources (who has considerable experience within the care home industry) and the existing Deputy Manager has been allocated more specific tasks in relation to her duties. These appointments have relieved the home manger from some of her more general duties allowing her to deal specifically with clinical issues and in particular resident safety. It should be emphasized that under the headings “Effective” “Caring” and “Responsive” the Home was found to be good.

Dealing more specifically with the appointment of the Director of Operations and Human Resources, her main responsibilities and priorities will be to create processes to enhance staff and residents wellbeing. She will work closely with the Home Manager in relation to all matters relating to staff and residents

In addition, we have appointed a Manager of Religious Affairs and Events and will assist the SMT in relation to all matters pertaining to the religious ethos of the home and general administration of recruitment.

The home did go through a fairly tumultuous time when Covid was at its peak and the stresses and strains within the home resulted in difficulties with staff relations and even strikes by a small percentage of staff. The SMT however coped well during the few strike days and the safety and care provided by Sage was never at any time compromised. The fact that resident numbers, during that period had fallen, whilst no member of staff was laid off, meant that Sage had sufficient personnel to cope. Since July 2021 with the relaxation of Covid rules, residential applications have increased considerably which has allowed the Trustees to reward all Sage’s hard-working staff with a substantial wage increase such that no member of staff receives less than the London Minimum Wage. In addition, the Trustees have created a Staff Council with representatives from all sections of Sage’s employees to allow the free flow of both critical and complimentary views in a creative and positive manner. All of these measures, together with the appointment of the new director specifically tasked to deal with human resources has resulted in much improved industrial relations and the atmosphere within Sage is a much happier one.

- 2 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

TRUSTEES' ANNUAL REPORT (INCORPORATING THE DIRECTOR'S REPORT) (continued)

YEAR ENDED 31 MARCH 2021

ACHIEVEMENTS AND PERFORMANCE ( Continued )

The financial results of the Company for the year ended 31 March 2021 are fully reflected in the attached Financial Statements together with the Notes thereon.

During the year under review and since the Balance Sheet date a number of residents unfortunately passed away as a result of Covid 19. As at 6 December 2021 there were twelve empty rooms although interest from potential residents has increased in recent weeks. It will take the charity some time to recover. Meanwhile, costs have been reduced dramatically.

FINANCIAL REVIEW

Achievements and Performance

During the year there was a decrease in income from fees and voluntary contributions by approximately £560,000 from £3,308,810 to £2,749,004. In the year under review Donations Received were £295,527 and the Charity received Government and Local Authority Grants of £187,000.

Reserves Policy

The Charity has of necessity to maintain Reserves in order to ensure that it is in a position to continue its activities at a level consistent with those which have been maintained in recent years and to cover contingencies.

The Restricted Reserves are £3.1m and are represented by amounts received by the Charity and reflected in the cost of the Nursing Home. The Unrestricted Reserves are in surplus by £187,995.

Future reserves will be made available for funding growth and development as well as ensuring that Funds are available to repay bank debt. The bank loan was repaid in full on 30 September 2021.

Investment Policy

Under the Memorandum and Articles of Association, the Company has the power to make investments which the Governors (Trustees) consider appropriate.

PLANS FOR THE FUTURE

The Governors (Trustees) plan to continue and enhance the objectives for which the Charity was established.

FIXED ASSETS

The movements in Fixed Assets are fully reflected in Note 15 to the Financial Statements.

The Company’s freehold premises is included in the Balance Sheet at cost. This is fully disclosed in Note 15 to the Financial Statements.

The Governors (Trustees) are of the opinion that the present open market value of the Company’s premises is at least equal to the amount at which it is included in the Financial Statements.

TRUSTEES' RESPONSIBILITIES STATEMENT

The trustees, who are also directors for the purposes 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 charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

- 3 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

TRUSTEES' ANNUAL REPORT (INCORPORATING THE DIRECTOR'S REPORT) (continued)

YEAR ENDED 31 MARCH 2021

TRUSTEES' RESPONSIBILITIES STATEMENT ( Continued )

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

AUDITOR

Each of the persons who is a trustee at the date of approval of this report confirms that:

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

SMALL COMPANY PROVISIONS

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

22/12/2021 The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:

Mr A M Jacobs BEM Trustee

- 4 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVICE TO THE AGED

YEAR ENDED 31 MARCH 2021

OPINION

We have audited the financial statements of Service to the Aged (the 'charity') for the year ended 31 March 2021 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charity'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 charity'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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion the financial statements:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

- 5 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVICE TO THE AGED ( continued )

YEAR ENDED 31 MARCH 2021

CONCLUSIONS RELATING TO GOING CONCERN (Continued)

However, due to the current macro-economic impact of the Covid-19 pandemic and the higher level of uncertainty observed in the economy we cannot predict all future events or conditions. As subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the charity will continue in operation.

EMPHASIS OF MATTER

We draw your attention to Note 23 of the Financial Statements, which discloses the uncertainty with regards to Events after the end of the Balance Sheet date in respect of Covid - 19 pandemic. Our opinion is not modified in respect of this matter.

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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of 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 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:

- 6 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVICE TO THE AGED ( continued )

YEAR ENDED 31 MARCH 2021

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION (Continued)

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes 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 charity 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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

- 7 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVICE TO THE AGED (continued)

YEAR ENDED 31 MARCH 2021

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

( Continued )

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

DAVID GOLDBERG (Senior Statutory Auditor) For and on behalf of Cohen Arnold New Burlington House Chartered accountant & statutory auditor 1075 Finchley Road LONDON NW11 0PU

22 December Date: _______ 2021

- 8 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

YEAR ENDED 31 MARCH 2021

2021 2020
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 5 295,527 - 295,527 172,197
Charitable activities 6 2,749,004 - 2,749,004 3,308,810
Investment income 7 421 - 421 584
Other income 8 54,264 132,843 187,107 -
----------------------------------------------- ------------------------------------- ----------------------------------------------- -----------------------------------------------
Total income 3,099,216 132,843 3,232,059 3,481,591
=============================================== ===================================== =============================================== ===============================================
Expenditure
Expenditure on charitable activities:
Provision of Residential and
Nursing Care 9 (2,967,076) (132,843) (3,099,919) (3,532,725)
Expenditure on raising funds 10 (2,339) - (2,339) (2,200)
----------------------------------------------- ------------------------------------- ----------------------------------------------- -----------------------------------------------
Total expenditure (2,969,415) (132,843) (3,102,258) (3,534,925)
=============================================== ===================================== =============================================== ===============================================
Net income/(deficit) and
net movement in funds 129,801 - 129,801 (53,334)
=============================================== ===================================== =============================================== ===============================================
Reconciliation of funds
Total funds brought forward 3,196,018 - 3,196,018 3,249,352
----------------------------------------------- ------------------------------------- ----------------------------------------------- -----------------------------------------------
Total funds carried forward 3,325,819 - 3,325,819 3,196,018
=============================================== ===================================== =============================================== ===============================================

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 12 to 21 form part of these financial statements.

- 9 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

STATEMENT OF FINANCIAL POSITION

31 MARCH 2021

2021 2020
£ £ £ £
Fixed assets
Tangible fixed assets 15 3,209,330 3,288,403
Investments 16 8,000 8,000
----------------------------------------------- -----------------------------------------------
3,217,330 3,296,403
Current assets
Debtors 17 286,750 334,468
Cash at bank and in hand 117,272 3,576
------------------------------- -------------------------------
404,022 338,044
Creditors: amounts falling due
within one year 18 (295,533) (373,166)
------------------------------------- -------------------------------------
Net current assets/(liabilities) 108,489 (35,122)
----------------------------------------------- -----------------------------------------------
Total assets less current liabilities 3,325,819 3,261,281
Creditors: amounts falling due after
more than one year 19 - (65,263)
----------------------------------------------- -----------------------------------------------
Net Assets 3,325,819 3,196,018
=============================================== ===============================================
Funds of the charity
Restricted funds 3,137,824 3,137,824
Unrestricted funds 187,995 58,194
----------------------------------------------- -----------------------------------------------
Total charity funds 20 3,325,819 3,196,018
=============================================== ===============================================

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of trustees and authorised for issue on 22/12/2021 ........................, and are signed on behalf of the board by:

____ ____ Mr A M Jacobs BEM Mr S Goldberg Trustee Trustee

The notes on pages 12 to 21 form part of these financial statements.

- 10 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

STATEMENT OF CASH FLOWS

YEAR ENDED 31 MARCH 2021

YEAR ENDED 31 MARCH 2021
2021 2020
£ £
CASH FLOWS FROM OPERATING ACTIVITIES
Net income / (deficit) 129,801 (53,334)
Adjustments for:
Depreciation of tangible fixed assets 79,073 80,732
Other interest receivable and similar income (421) (584)
Changes in:
Trade and other debtors 47,718 22,501
Trade and other creditors (142,896) (105,104)
------------------------------------- -------------------------------
Cash generated from operations 113,275 (55,789)
Interest received and similar income 421 584
------------------------------------- -------------------------------
Net cash from operating activities 113,696 (55,205)
Cash invested
Capital Expenditure - (14,700)
------------------------------------- -------------------------------
113,696 (69,905)
------------------------------------- -------------------------------
NET INCREASE/(DECREASE) IN CASH AND
CASH EQUIVALENTS 113,696 (69,905)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 3,576 73,481
------------------------------------- -------------------------------------
CASH AND CASH EQUIVALENTS AT END OF YEAR 117,272 3,576
===================================== =====================================

The notes on pages 12 to 21 form part of these financial statements.

- 11 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

1. GENERAL INFORMATION

The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is New Burlington House, 1075 Finchley Road, London NW11 0PU.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

The charity meets the definition of a public benefit entity under FRS102.

Going concern

The outbreak of the Covid-19 has resulted in a downturn in the operations of the charity. The pandemic has had a negative impact on the UK economy as a whole, including on the charity's revenue and operations. These risks are beyond the control of the charity and represent uncertainty to the revenue and cash flow of the charity for the foreseeable future.

Notwithstanding the uncertainty, the financial statements have been prepared in accordance with the accounting principles appropriate to a going concern, as the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due, based on the net current asset position of the charity and available sources of finance.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Trustees do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed below.

- 12 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

3. ACCOUNTING POLICIES (continued)

Incoming resources

These are included in the statement of financial activities (SOFA) when:

the charity becomes entitled to the resources;

the monetary value can be measured with sufficient reliability

Legacies are included in the statement of financial activities when the Charity is advised by the personal representative of an estate that payment will be made or property transferred imminently and the amount involved can be quantified.

Expenditure

Expenditure is charged on an accrual basis and allocated to the appropriate headings in the accounts.

The majority of costs are directly attributable to specific activities. Costs incurred in respect of the charitable activities include elements of staff costs and attributable support costs.

Support costs

Support costs are those costs which are common to all areas of the organisation. These are allocated across all areas of activity on the basis of the number of service users for each activity.

Governance costs

Governance costs are associated with the governance arrangements of the charity and relate to the general running of the charity. These costs include audit, legal advice for Trustees and costs associated with meeting constitutional and statutory requirements such as the cost of Trustee meetings and the preparation of the statutory accounts.

Resources Expended and the Basis of Apportioning Costs

Expenditure is included in the statement of financial activities when incurred and includes any attributable VAT which cannot be recovered.

Resources expended comprise the following:

The majority of costs are directly attributable to specific activities and any support costs have been apportioned between the above categories as described in Note 9.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

- 13 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

3. ACCOUNTING POLICIES (continued)

Fixed assets

All fixed assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property (buildings only) - 2% Straight line
Furniture, fixtures and fittings - 20%
Equipment - 20%
Motor vehicles - 25%

Repairs and Replacements

The costs of repairs and replacements of buildings, equipment and furniture, fixtures and fittings and Uniforms are charged to the Income and Expenditure Account. Costs which, in the opinion of the Governors, represent an improvement to or upgrading of existing fixed assets are capitalised.

Building Project Fund

Donations received towards the capital projects being undertaken by the Charity are credited to a Building Project Fund.

Property Held for use by Charity

Property held for charitable use is stated at cost.

The Trustees are of the opinion that the Open Market Value of the property is at least equal to the amount at which it is included in the Financial Statements.

Listed Investments

Share-holdings acquired or donated are included at Market Value at the date of acquisition.

Fund Accounting

The general fund comprises those monies which may be used towards meeting the charitable objectives of the Charity and which may be applied at the discretion of the Trustees.

The designated funds are monies or assets set aside out of general funds and designated for specific purposes by the Trustees.

The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

- 14 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

3. ACCOUNTING POLICIES (continued)

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model and the performance model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Under the performance model, where the grant does not impose specified future performancerelated conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

4. LIMITED BY GUARANTEE

The charity is a company limited by guarantee and has no share capital. The liability of each trustee in the event of winding up is limited to £1.

5. DONATIONS AND LEGACIES

Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Donations 295,527 295,527 142,197 142,197
Legacies - - 30,000 30,000
------------------------------------------------ --------------------------------------------- ------------------------------------- -------------------------------------
295,527 295,527 172,197 172,197
=============================================== =============================================== =============================================== ===============================================

6. CHARITABLE ACTIVITIES

CHARITABLE ACTIVITIES
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Fees and contributions receivable 2,749,004 2,749,004 3,308,810 3,308,810
=============================================== =============================================== =============================================== ===============================================

- 15 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

7. INVESTMENT INCOME

Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Income from listed investments 418 418 582 582
Interest receivable 3 3 2 2
-------------------------------- --------------------------------- ------------------------------------- -------------------------------------
421 421 584 584
=============================== =============================== =============================== ===============================

8. OTHER INCOME

OTHER INCOME
Restricted Total Total
Unrestricted
Funds		 Funds Unrestricted Funds
Funds 2021 Funds 2020
£ £ £ £ £
Coronavirus Job Retention
Scheme Grant 54,264
-		 54,264
-		 -
Local Authority Infection
Control Fund -
132,843		 132,843
-		 -
-------------------------------- -------------------------------- --------------------------------- ------------------------------------- -------------------------------------
54,264
132,843		 187,107
-		 -
=============================== =============================== =============================== =============================== ===============================

9. PROVISION OF RESIDENTIAL & NURSING CARE

Total Total
Unrestricted Restricted Funds Unrestricted Funds
Funds Funds 2021 Funds 2020
£ £ £ £ £
Provision of Residential
and Nursing Care 2,967,076 132,843 3,099,919
3,532,725		 3,532,725
=============================================== =============================================== =============================================== =============================================== ===============================================
Total Total
Unrestricted Restricted Funds Unrestricted Funds
Funds Funds 2021 Funds 2020
£ £ £ £ £
Staff costs 2,037,964 124,058 2,162,022
2,432,583		 2,432,583
Catering and food 337,538 - 337,538
399,868		 399,868
Premises day to day costs 375,669 - 375,669
428,150		 428,150
Medical, care and welfare costs 117,472 8,785 126,257
163,985		 163,985
Finance costs 2,392 - 2,392
4,983		 4,983
Support costs (Note 11) 16,968 - 16,968
22,424		 22,424
Depreciation 79,073 - 79,073
80,732		 80,732
------------------------------------------------ ------------------------------------------------ ------------------------------------------------ ------------------------------------------------ ----------------------------------------------
Total for residential
and nursing care 2,967,076 132,843 3,099,919
3,532,725		 3,532,725
=============================================== =============================================== =============================================== =============================================== =============================================

- 16 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

9. PROVISION OF RESIDENTIAL & NURSING CARE ( Continued )

Analysed between cost centres

Analysed between cost centres
Operating Establishment Administrative
Costs
Costs
Costs
£
£
£
Staff Costs
1,805,787
76,462
279,773
Catering and Food
337,538
-
-
Premises Day to Day Costs
-
240,294
135,375
Medical, Care and
Welfare Costs
61,864
64,393
-
Finance Costs
2,392
-
-
Support Costs (Note 11)
11,149
-
5,819
Depreciation
79,073
-
-
_
_
_
2,297,803
381,149
420,967
_
_
_
Premises Day to Day Costs
Establishment Costs
Light and Heat
Insurance
Repairs, Refurbishments and Maintenance
Rates
Administrative Costs
Telephone
Motor and Travel
Legal and Professional
Printing, Postage and Stationery
Licence and Registration Fees
General Expenses
Festival Expenses and Licences
Computer Running Costs
Bank Charges
Grand Total		 2021
2020
Total
Total
(Unrestricted)
£
£
2,162,022
2,432,583
337,538
399,868
375,669
428,150
126,257
163,985
2,392
4,983
16,968
22,424
79,073
80,732
_
_
3,099,919
3,532,725
_
_
2021
2020
Total
Total
£
£
67,828
57,979
34,360
23,439
120,953
205,729
17,153
17,616
_
_
£240,294
£304,763
_
_
4,187
4,625
5,163
5,694
75,401
51,616
7,353
12,029
8,792
8,878
8,252
15,370
13,277
13,780
7,551
4,514
5,399
6,881
_
_
£135,375
£123,387
_
_
£375,669
£428,150
_
_

4,625
5,694
51,616
12,029
8,878
15,370
13,780
4,514
6,881
_
£123,387
_

£428,150
__

- 17 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

10. EXPENDITURE ON RAISING FUNDS

Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Fundraising costs 2,339 2,339 2,200 2,200
=============================== =============================== =============================== ===============================
11. SUPPORT COSTS
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Office costs 11,149 11,149 11,424 11,424
Audit fees 5,819 5.819 11,000 11,000
------------------------------------------------ ------------------------------------------------ ------------------------------------------------ ------------------------------------------------
16,968 16,968 22,424 22,424
=============================================== =============================================== =============================================== ===============================================

Office Costs represent Professional Fees incurred on an actual basis paid to the Company’s auditor in respect of other non-audit services (Payroll).

12. NET EXPENDITURE FOR THE YEAR

Net expenditure is stated after charging:

Staff costs
Auditors remuneration
Depreciation
Staff pension contributions
13. STAFF COSTS
Staff Costs during the Year were as follows:
Wages and Salaries
Social Security Costs
Employer’s pension
Agency Staff, Recruitment and related costs
Staff Costs by function were as follows:
Residential and Nursing Care		 2021
£
2,118,269
5,819
79,073
38,077
===============================
2021
£
1,919,270
160,922
38,077
_
2,118,269
43,753
_
£2,162,022
_
£2,162,022
_		 2020
£
2,360,474
11,000
80,732
41,370
===============================
2020
£
2,134,980
184,124
41,370
_
2,360,474
72,109
_
£2,432,583
___

£2,432,583
___

- 18 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

13. STAFF COSTS ( Continued )

The average number of employees, excluding agency staff, analysed by function, was:

Residential and Nursing Care Services 2021
95
___		 2020
99
___

14. TRUSTEE AND KEY MANAGEMENT REMUNERATION AND EXPENSES

There was no remuneration paid to the trustees. The charity did not meet any individual expenses incurred by the trustees for services provided to the charity. Remuneration paid to key management personnel totalled £178,412.

15. TANGIBLE FIXED ASSETS

Freehold Furniture
Land and Fixtures & Motor
buildings Fittings Equipment Vehicles Total
£ £ £ £ £
Cost
At 1 April 2020 and
At 31 March 2021 4,287,279 378,237 303,246 24,000 4,992,762
===================================== ===================================== ===================================== ===================================== =====================================
Depreciation
At 1 April 2020 1,029,000 369,934 283,136 22,289 1,704,359
Charge for the year 73,500 1,516 3,673 384 79,073
------------------------------------- ------------------------------------- ------------------------------------- ------------------------------------- -------------------------------------
At 31 March 2021 1,102,500 371,450 286,809 22,673 1,783,432
===================================== ===================================== ===================================== ===================================== =====================================
Carrying amount
At 31 March 2021 3,184,779 6,787 16,437 1,327 3,209,330
===================================== ===================================== ===================================== ===================================== =====================================
At 31 March 2020 3,258,279 8,303 20,110 1,711 3,288,403
===================================== ===================================== ===================================== ===================================== =====================================

The Trustees are of the opinion that the open market value of the premises is at least equal to its carrying value in the accounts.

16. INVESTMENTS

At 1 April 2020 and 31 March 2021

Listed Investments £8,000 ___

The Listed Investments represent quoted shares donated to the Charity. The market value of the shares at 31 March 2021 was above its holding value.

- 19 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

17. DEBTORS

DEBTORS
2021 2020
£ £
Trade debtors 270,636 316,454
Other debtors 16,114 18,014
------------------------------------- -------------------------------------
286,750 334,468
===================================== =====================================
CREDITORS: amounts falling due within one year
2021 2020
£ £
Bank loans and overdraft 58,424 106,458
Taxation (PAYE) 34,356 40,756
Other creditors and accruals 202,753 225,952
------------------------------------- -------------------------------------
295,533 373,166
===================================== =====================================
CREDITORS: amounts falling due after more than one year
Interest 2021 2020
Rate £ £
Mortgage Advance
Amounts repayable within five years:
Loan terminating in 2021 Libor + 1.5% - 65,263
------------------------------------- -------------------------------------
- 65,263
===================================== =====================================
ANALYSIS OF CHARITABLE FUNDS
Unrestricted funds
At At
1 April 31 March
2020 Income Expenditure 2021
£ £ £ £
General funds 58,194 3,232,059 (3,102,258) 187,995
=============================================== =============================================== =============================================== ===============================================
Restricted funds
At At
1 April 31 March
2020 Income Expenditure 2021
£ £ £ £
Building project fund 3,137,824 - - 3,137,824
------------------------------------- ------------------------------------- ------------------------------------- -------------------------------------
3,137,824 - - 3,137,824
===================================== ===================================== ===================================== =====================================

18. CREDITORS: amounts falling due within one year

19. CREDITORS: amounts falling due after more than one year

20. ANALYSIS OF CHARITABLE FUNDS

- 20 -

DocuSign Envelope ID: CF5BCB72-1F66-47A8-B13A-B8BD354786D0

SERVICE TO THE AGED

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Tangible assets 71,506 3,137,824 3,209,330
Investments 8,000 - 8,000
Net Current Assets 108,489 - 108,489
----------------------------------------------- ------------------------------------- -----------------------------------------------
Net assets 187,995 3,137,824 3,325,819
=============================================== ===================================== ===============================================

22. COMPANY LIMITED BY GUARANTEE

Every Member of the Charity has undertaken to pay such an amount as may be required not exceeding £1 towards the Charity’s assets if the Charity should be wound up.

23. EVENTS AFTER THE END OF THE REPORTING PERIOD

The Covid-19 pandemic is expected to severely affect the wider macro economy and the specific market the charity operates in. It is possible that fee income will decline due to the pandemic and associated lockdown. The full financial effects cannot currently be quantified.

The accounts have been prepared on a going concern basis on the assumption of continued support from the charity's creditors and supporters and on the assumption that the Home will maintain the level of occupancy in the future and generate sufficient income to finance its debts. The charity was able to continue operating during the Covid-19 lockdown. The charity was able to cover the additional cost relating to the increased expenditure on personal protective equipment thanks to additional funding obtained for this purpose and has received significant donations since the Balance Sheet date.

- 21 -