REGISTERED COMPANY NUMBER: 03164820 {En8land and Wales) REGISTERED CHARITY NUMBER: 1053448 ort of the Trustees and Financial Statements for the Year Ended 31 March 2024 for Martha Trust Hereford Limited Thorne Widgery Accountancy Ltd Chartered Accountants Statutory Auditors 2 Wyevale Business Park Kings Acre Hereford Herefordshire HR4 7BS
Martha Trust Hereford Limited Contents of the Financial Statements for the Year Ended 31 March 2024 Page Report of the Trustees Report of the Independent Auditors 8 to 11 Statement of Financial Activities 12 Balance Sheet 13 Cash Flow Statement 14 Notes to the Cash Flow Statement 15 Notes to the FTnancial Statements 16 to 24 Detailed Statement of Financial Activities 25 to 26
Martha Trust Hereford Limited Re ort of the Trustees for the Year Ended 31 March 2024 The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2024. The twstees have adopted the provisions of 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 20191. OBJECTIVES AND ACTIVITIES Slgnlflcant activities Martha House The latest CQC inspection was May 2023 all lines of inspection were rated as good. The home has fourteen lifelong residents. The staff ensure that the residents have a busy but enjoyable time. The registered manager is responsible for the home residents and staff. The therapy team works very closely with the care team. Each resident has an individual activity programme specifically developed for their needs. Sophie House The latest CQC inspection was December 2018 with a paper review carried out on 6 July 2023 all lines of inspection were rated good. The home has fourteen lifelong residents. The activities available are similar to those provided at Martha House. Each home has a team of nurses and carers. The therapy team works across both sites. Public benefit Martha Trust Hereford Limited offers lifelong care which is funded by the fees paid by the County Council or Integrated Care Board. The Charity was established in 1996 to provide care for children and adults with complex and profound emotional and physical disabilities. In 1997 Martha House, a custom-designed home, was opened providing nursing and one to.one care to residents. In 2012, the increased demand for the services offered at Martha House led to the decision to build a second home, Sophle House, In close proximity to the original home. The Charity aims to provide the highest possible quality of care enabling the residents to develop to their own full potential. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. STRATEGIC REPORT Achievement and performance The financial year ending 31 March 2024 proved to be a very busy time for the Charity. At March 2024 Sophie House was full with 14 residents while Martha House had 1 empty bed and 13 residents. Recruitment for nursing and care staff c¢)ntinues to be difficult due to the nationwide shortage. The Charity continues to offer a bursary scheme for staff expressing an interest in undertaking a nursing degree. In addition to the flnancial benefits of the project, the individual works for the Charity during university closure and gains experience in care to expand on their skills. The scheme guarantee5 the individual a position once they have obtained their degree. The Nursing Associate Training Programme continues to be very successful and beneficial. During the year to March 2024 2 individuals worked as Nurs?ng Associates having completed their training through the Charity. One of these individuals is enrolled on the Nursing Apprenticeship and expects to be fully qualified in February 2025. The Charity employed 7 individuals on the TNA programme. The Charity offers trainee Nurse Associates from other localities the opportunity to undertake their leaming disability placements in one of our homes which could lead to the recruitment of qualified Nurse Associates in the future. The success of the charity in achieving its goals is largely measured and monitored against the many and varied requirements set out by the Care Quality Commission. The Trustees seek to ensure the charfty provides high quality care within the learning disability care and seryices sector with the continual aim of achieving an 'out5tanding' award for the work undertaken Page 1
Martha Trust Hereford Limited Re rt of the Trustees for the Year Ended 31 March 2024 STRATEGIC REPORT Flnancial review Réserves policy The trustees aim to hold at least 12 months of expenditure within reseryes. The results for the year show net outgoing resources of £255,460 (2023: net incorning resources £344,417). Net assets amounted to £8,891,15812023: £9,146,618). Unrestricted funds are generated where there is no stipulation from the donor as to how the income may be spent. The Trustees have identified the need to maintain some resee5 for set purposes and have designated reserves as follows: In 2022 the Trustees had set aside an operational reserve of £220,000. This was to cover any unplanned structural repairs or replacement of equipment or loss of income. In addition in 2022 £100,000 had been set aside as a Sophie House fund for upcoming maintenance and works planned. In 2023 a further £1,000,000 has been designated within the year also for future repalrs and upgrades at both Sophie and Martha House. None of these funds have been spent in the year. A Fixed Asset reserve comprises of the funds invested in fixed assets to allow the Charity to carry out its work. At 31 March 2024 the level of this reserve was £3,327,027 12023: £3,353.3981 (the book value of fixed assets that are not funded from restricted funds). At 31 March 2024 the restricted funds amounted to £1,287,961 {2023: £1,287,961). As at 31 March 2024 undesignated free reserve5 amounted to £2,956,170 (2023: £3,185,259). The trustees have assessed the major risks to which the charity is exposed, and are satisfied that Systems are in place to mitigate exposure to the major risks. Residents. fee5 are the principal fundlng source and are fully expended in meeting the objectives. An intensive analysis of the residents. current care needs and thus the staffing requirements to meet those needs, continues to be carried out to ensure that the fee levels are commensurate with the care plans. Prlnclpal rlsks and uncertalntles The care provided by Martha Trust Hereford Limited is funded by the fees paid by the Local Authority or Integrated Care Boards. The economic downtum has led to the failure of the public sector to provide increases in fees for the majority of vulnerable people living in care facilities. The Trustees are fully aware of this potential risk and it is being fflanaged by the Trust Director and the Trustees. These factor5 mean that the reserves held by the Charity need to reflect these potential risks. The Charity provides lifelong care to our residents and the Trustees need to ensure the Charity is financially stable to meet their future needs. The Trust Director and management team continue to work together with the Care Quality Commission to ensure the service provided is safe, caring, responsive, effective and well led. Page Z
Martha Trust Hereford Limited Re rt of the Trustees for the Year Ended 31 March 2024 STRATEGIC REPORT Plans for Future periods The Trust will continue to provide a loving. safe and secure home environfflent for our residents. To help us maintain our high quality of care we will encourage staff to develop their own individual potential. The annual survey to the parents and staff will be undertaken; The policies and procedures will be reviewed as required; The required audits will be completed as directed by the Commissioning Authorities, CQC and Internal reviews. The Trustees have set aside funds for planned expenditure during the next financial year on the following Items: Upgrade all bathrooms, clinical rooms, sluice, laundry and bedroom sink areas at Sophie House begun in 23124 to continue in 24125 Plan to erect a canopy in the garden at the rear of Sophie House to provide shade Extensive redecoration of Martha House communal areas and bedrooms including carpet replacement begun in 23124 to continue in 24125 Martha House laundry upgrade Additional storage at Martha House Repairs to drainage from Farmhouse Staffing It ha5 been established by the Government and the Care Quality Commission that there 15 a nationwide shortage of nurses and care staff. Martha Trust will continue to advertise all vacant Posts a5 required however thls is a nationwide concern with the t)opulation living longer and care homes being financially pressured by the lack of funding within the adult KKial care environment. The Charity will continue with its involvement in the Nurse Associate Training Programme. Quality The Quality Audit Officer continues to review all the policies and procedures required by the homes. A timetable is produced detailing all the regular audit reports, which are undertaken both internally and also by external agencies. Purchasing authorities complete contract monitoring visits annually. A questionnaire will be issued to the parents, staff and purchasing authorities as a quality monitoring tool. Recruitment and appointment of new Trustees Potential Trustees are carefully selected from local people who have the required background and experience and who are likely to have a long-standing interest in the work of the Charity. They are approached personally by existing Trustee5. None of the trustees has any beneficial interest in the company. All of the trustee5 are member5 of the company and guarantee to contribute £1 in the event of a winding up. Organlsatlonal strurture Page 3
Martha Trust Hereford Limited Re rt of the Trustees for the Year Ended 31 March 2024 STRATEGIC REPORT The Trustees consider six Trustees to be appropriate, in number, skill mix and in their contribution to the running of the Charity and the homes. There are no plans to appoint further Trustees at present. As it becomes necessary, the Trustees will determine potential candidates who, if willing to stand, will be considered by inteNew Nwth the full Board. Ail Trustees submit DBS (Disclosure and Barring Servlcel disclosure applications. Induction and tralnlng of new Trustees An appropriate candidate is given an Tnduction programme that includes an in.depth tour of both homes and discussions with the existing Trustees and senior management team. The successful appointee is given a portfolio of financial, governance and Charity Commission documents and is guided through the Board and management meetings providing an insight into the work of the Charity and the roles of indiwdual managers. They are introduced informally to all staff, residents and families. Management and staffing From 1st April 2023 the Charity has been managed by the Trust Director. The Director of Care retTred in March 2024. From November 2023 the Registered Manager of Sophie House also took on the role of Registered Manager for Martha House and responsibility for the clinical operation of the two homes. Each home has a Care Manager and Deputy Home hlanager. Sufficient staff are employed to generally facilitate one to one care. Each resident has a primary nurse, Senior carer and key carers who provide continuity of care. The day is divided into three shifts w7th at least one registered nurse on duty for each shift at each home. The waking night shift is staffed by a nurse with two carers and there is an on-call rota for nurses and managers in case of emergency. Extra staff will work at night when a resident is ill and requires one to one care throughout the night shift either in the home or the hospital. Other employed staff include. cooks. housekeepers. maintenance. gardening and administratlon. The primary nurses and senior care staff on both sites plan, monitor and evaluate the activities which take place throughout the day. A team of professional therapists and the care staff provide a wide range of activities ensuring a balanced daily activity programme for each resident. This is complemented by social activities and outings. Key management remuneration The salaries for all senior managers are agreed by the Trustees and reviewed annually. Costed proposals are forwarded to the Trustee5 and these consider the economic climate, including risks associated with the lack of funding in adult sttial care and the effect this has on the income for the charity, local trends and length of time in service. The registered manager, care managers and their deputies have detailed roles and responsibilities against which their performance can be measured. Related parties The Charity works closely with the Care Quality Commission (CQCI, County Councils, Integrated Care Boards {ICB'sl and all local and national agencie5. Martha Trust is one of very few providers of highly specialise care for individuals with profound and multlple learning and physical disabilities, particularly in relation to its ability to encompass children with adults in such a homely setting. Unlike most homes, the Trust has no age limit or geographical boundary and can therefore accept referrals from across the United Kingdom. The Charity owns all the issued share capital of hlartha Hereford {Developments) Limited, a Company Incorporated in the United Kingdom. The Company wa5 incorporated on 24 August 2(M)9 to design and construct the second home on behalf of the Charity. The Company ceased trading on 31 March 2016. Page 4
Martha Trust Hereford Limited ort of the Trustees for the Year Ended 31 March 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT The charity is a company limited by guarantee and as such is governed by its Memorandum and Articles of Association in accordance with the Companies Act 2006. It was incorporated on 21 February 1996. 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: R E L Smith Esq Miss S F Smith Mrs S J Sharp-smith A C Stewart Esq S W Somers Esq Ms L Sharp-smith REFERENCE AND ADMINISTRATIVE DEfAILS Reglstered Company number 03164820 {England and Wales) Registered Chartty number 1053448 Registered office Hampton Green Old Eign Hill Hereford HR1 1UB Trustee5 Miss S F Smith RELSmith S W Somers A C Stewart Ms S J Sharp-smith Ms L Sharp-smith Company Secretary Miss S F Smith Auditors Thome Widgery Accountancy Ltd Chartered Accountants Statutory Auditors 2 Wyevale Business Park Kings Acre Hereford Herefordshire HR4 7BS Page 5
Martha Trust Hereford Limited Re rt of the Trustees for the Year Ended 31 March 2024 REFERENCE AND ADMINISTRATIVE DETAILS Solicltors Willans LLP 28 Imperial Square Cheltenham Gloucestershire GL50 1 RH Harri50n Clark Rickerbys Ellenborough House Wellington Street Cheltenham Gloucestershire GL20 1TD Bankers Uoyds TSB Bank PIC 38 Blue Boar Row Salisbury Wiltshire SP1 1DB STATEMENT OF TRUSTEES. RESPONSIBILITIES The trustees (who are also the directors of Martha Trust Hereford Limited for the purposes of company law} are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards {United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to select suitable accounting p)licies and then apply them consistently. observe the methods and principle5 in the Charity SORP; make judgements and estimates that are reasonable and prudent. state whether applicable accountin£ standards have been followed, subject to any material departures disclosed and explained in the financial statements" prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply th the Companies Art 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: there is no relevant audit information of which the charitable company's auditors are unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. AUDITORS The audltors, Thorne Widgery Accountancy Ltd, will be proposed for re-appolntment at the forthcomin8 Annual General Meeting. Page 6
Martha TNst Hereford Ll Ited Re rt of the Trustees for Year Ended 31 Ilarch 2024 Rert of the trustees. Incorp)ratlng a strategk report? approved by order of the board of trustees. as the coNpany dlrector5, on ............. and slgned on the tM)ard* behalf by. REL h - Trustee Page 7
Re rt of the Inde ndent Audltors to the hlembers of Martha Trust Hereford Limited Oplnlon We have audlted the financial statements of Martha Trust Hereford Llmited {the 'charitable company'> for the year ended 31 March 2024 which comprise the Statement of Financlal Actlvltles, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of signlficant accounting policie5. The financial repjrting framework that has been applied in their preparation is applicable law and United Kingdom Accountlng Standards {United Klngdom Generally Accepted Accounting Practice). In our opinion the financial Statements: give a true and fair view of the state of the charitable companrfs affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended" have been properly prepared In accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance Nwth the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor5. responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to golng concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going conrn 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 inforniation The trustees are responsible for the other information. The other informatlon comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwse 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 prescrlbed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements. and the Report of the Trustees has been prepared in accordance with applicable legal requirements. Page 8
rt of the Inde ndent Auditors to the hlembers of Martha Twst Hereford Limited Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and it5 environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 require5 US to report to you if. in our opinion: adequate accounting records have not been kept or returns adequate for our audit have not been received from branche5 not visited by us. or the financial statements are not in agreement with the accounting records and returns. or certain disclosures of trustees. remuneration specified by law are not made. or we have not received all the information and explanations we require for our audit. Responslbllltles of trustees As explained more fully in the Statement of Trustee5' Responsibilities, the tnJstee5 (who are also the directors of the charitable company 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 statement5, the trustees are responsible for assessing the charitable companrfs 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. Page 9
Re rt of the Inde ndent Auditors to the Members of Martha Trust Hereford Limited Our responsibilities for the audlt of the flnancial statements Our objectlves are to obtain reasonable assurance about whether the flnancial statements a5 a whole are free from material misstatement, whether due to fraud or error, and to Issue a Report of the Independent Auditors 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 {UKI will alway5 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: Fraud and breaches of laws and regulations - abillty to detect Identifying and responding to ri5k5 of material misstatement due to fraud To identify risks of material misstatement due to fraud I'fraud risks") we assessed event5 or conditTons that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included: o Enquiring of trustees, management and inspection of policy documentation as to the Charity's hTgh-level policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged fraud. o Reading meeting minutes. o Considering performance targets for management. We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit. A5 required by auditing standards, and taking into account our overall knowledge of the control environment, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to makè inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognitlon because the revenue is non-judgemental and straightforward, with limited opportunity for manipulation. We did not identify any additional fraud risks. We performed procedures including identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation. These included those posted by finance managementl those posted and approved by the same userl those posted to unusual accounts. Identifying and responding to risks of material mlsstatement due to non-compliance with laws and regulations We ident7fied areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with management las required by auditing standards) and discussed with management the policies and procedures regarding compliance with Lay and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the Charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, taxation legislation, the Charlties Act legislation and guidance issued by CQC and we assessed the extent of compliance with these laws and regulations a5 part of our procedure5 on the related financial statement items. Secondly, the Charity is subject to many other laws and regulations where the consequences of noncompliance could have a material effect on amounts or dlsclosure5 in the flnanclal statements, for Instance through the Imposltlon of fines or litigation or the loss of the Charity's license to operate. We identified the following areas as those most likely to have such an effect: health and safety, anti.bribery, employment law, data protection, anti.money laundering and specific areas of other leglslatlon recognlslng the nature of the Charity's activities. Page 10
Re rt of the Inde ndent Auditors to the Alembers of Martha Trust Hereford Limited Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of management, inspection of regulatory and legal correspondence, If any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an aLKlit will not detect that breach. Context of the ability of the audlt to detect fraud or breaches of law or regulation Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements. even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non.cornpliance with laws and regulations is from the event5 and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. A further description of our responsibilities for the audit of the financial statements ls lated on the Financial Reporting Council's website at www.frc.org.uklauditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's mefflbers those matters we are required to state to them in an auditors. report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable companrfs members as a body, for our audit work, for this report, or for the opinions we have formed. Loo/ Lisa Weaver FCCA (Senior Statutory Auditorl for and on behalf of Thorne Widgery Accountancy Ltd Chartered Accountants Statutory Auditors 2 Wyevale Business Park Kings Acre Hereford Herefordshire HR4 7BS Date: Page11
Martha Trust HL¥eford Limited Statement of Financial Activities for the Year Ended 31 March 2024 31.3.24 Total funds 31.3.23 Total funds Unrestricted funds Restricted fund Notes INCOME AND ENDOWMENTS FROM Donations and legacies 15,560 55.300 70,860 35.966 Charitable activities Lifelong care for people with profound intellectual and physical disabilities 4,746,164 4,746,164 4,495,425 Investment income Other income 104,448 104,448 9,218 155,173 Total 4,866,172 55,3LKI 4,921,472 4,695,782 EXPENDrruRE ON Charltable actfvltles Lifelong care for people with profound intellectual and physical disabilities 5,121.632 55.300 5,176,932 4,351,365 NEf INCOMEI(EXPENDITURE) (255,4601 1255,4601 344,417 RECONCILIATION OF FUNDS Total funds brought forward 7,858,657 1,287,961 9,146,618 8.802,201 TOTAL FUNDS CARRIED FORWARD 7,603,197 1,287,961 8,891.158 9,146,618 The notes form part of these financial statements Page 12
Martha Trust Hereford Llmlted Balance Sheet 31 March 2024 31,3.24 Total fund5 31.3.23 Total fund5 Unrestrlcted funds Restrfcted fund Notes FiXED ASS$ Tanglble a55ets Investments 12 13 3.327,027 1.287,961 4,614,988 4.641.359 3.327,027 1.287.961 4,614,988 4,641,360 CURRENT ASSETS Debtors Cash at bank and In hand 14 308.830 4,157,883 308,830 4,157,883 183,058 4,487,079 4.466,713 4,466,713 4.670.137 CREDITORS Amount5 falllng due wlthin one year 15 (190,543) 1190,543) 1164,879) NEf CURREKf ASSErs 4,276.170 4,276,170 4,505,258 TOTAL ASSETS LESS CURRENT LIABILmE5 7.603.197 1,287,961 8,891,158 9,146,618 Nrr Assrrs 7,603,197 1.287.961 8.891,158 9,146,618 FUNDS Unre5trfcted lund5: General fund Designated f 6 2,956,170 4,647.027 3,185,259 4,6T3,398 7,603,197 7,858,657 Restrlcted fund5 1,287.961 1,287,961 TOTAL FUNDS 8.891,158 9.146,618 The fln al statrments were appmved by the Board of Tnt5tees and auttrK>rlsed for fssue on . and were SIed on Its behalf by. R E L Sfflith - Trustee The note5 form part of these flnancial Statements Page 13
Martha Trust Hereford Limited Cash Flow Statement for the Year Ended 31 March 2024 31.3.24 31.3.23 Notes Cash flows from operatlng actlvltles Cash generated from operations (241,2491 563,098 Net cash (used inllprovided by operating actiwties (241,249) 563,098 Cash flows from investing activitles Purchase of tangible fixed assets Sale of tangible fixed assets Sate of fixed asset investments Interest received (192,396) (70,796) 29,860 104,448 9,218 Net cash used in investing activities {87,9471 131,718) Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period 1329,1961 531,380 4,487,079 3,955,699 Cash and cash equivalents at the end of the reporting period 4,157,883 4,487,079 The notes form part of these financial statements Page 14
Martha Trust Hereford Limited Notes to the Cash Flow Statement for the Year Ended 31 March 2024 RECONCILIATION OF NEf (EXPENDITURE)IINCOME TO CASH FLOW FROM OPERATING ACTIVITIES 31.3.24 31.3.23 Net (expendlturevlncome for the reporting period las per the Statement of Financial Actlvities) Adjustments for: Depreciation charges Profit on disposal of fixed assets Interest received (Increaselldecrease in debtors Increase in creditors 1255,460 344,417 218,766 206,5n (29,860) (9,218) 39,209 11,978 (104,448) (125,7n) 25,665 Net cash (used inllprovided by operations {241,249} 563,098 ANALYSIS OF CHANGES IN NEf FUNDS At 1.4.23 Cash flow At 31.3.24 Net cash Cash at bank and in hand 4,487,079 1329,196) 4,157,883 4,487,079 (329,1961 4,157,883 Total 4,487,079 {329,1961 4,157,883 The notes form part of these financial statements Page 15
hlartha Trust Hereford Limited Notes to the Financial Statements for the Year Ended 31 March 2024 ACCOUNTING POLICIES Basis of preparlng the flnanclal statements The financial statements of the charitable company¥ which is a public benefit entlty under FRS 102, have been prepared in accordance with the Charities SORP (FRS 1021 '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 IFRS 1021 {effective 1 January 2019).. Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. and the Companies Act 2¢J06. The financial statements have been prepared under the historical cost convention, with the exception of investments which are inclLKled at market value. Income All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Le¥acies are recogni5ed on receipt or otherwise if the charity ha5 been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy 15 treated as a ontingent asset. Income from grants and government grant5 15 recognised when there is evidence of entitlement to the grant, receipt is probable and its amount can be measured reliably. Interest is included when received by the charity. Expenditure Liabilities are recognised as expenditure as sts)n as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been aLlated to activities on a basis consistent with the use of resources. Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment Losses. Depreciation is recognised 50 as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Freehold land and buildings 2%, 15% and 20% straight line Property improvements 2%, 5%. 15% and 20% straight line Plant and equipment 15% straight line Fixtures and fittings 15% and 33% straight line Motor vehicles 25% straight line and 25% reducing balance 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. Capitalisation policy of fixed assets is set at £1,OCQ. Taxation The charity is exempt from corporation tax on its charitable activities. Fund accountlng Unrestricted funds can be used in accordance with the charltable objectlves at the discretion of the trustees. Page 16 ontinued...
Martha Trust Hereford Llmlted Notes to the Financial Statements - contTnued for the Year Ended 31 March 2024 ACCOUNTING POLICIES - contlnued Fund accounting Restricted funds can only be used for partlcular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purp05e5. Designated funds are funds set aside by the trustees out of unrestricted general funds for specific future purposes or projects Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. Penslon costs and other post-retirement benefits The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable companls pension scheme are charged to the Statement of Financial Activities in the period to which they relate. Going Concern At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. DONATIONS AND LEGACIES 31.3.24 31.3.23 Donations & Grants 70,860 35,966 Grants receivable for core actlvltles 2024 55,300 8,300 2023 24,100 Nurse training grant Apprenticeship Funding Coronavirus Grants Donations received in the year amounted to £7,26012023: £4,888) INVESTMEKf INCOME 31.3.24 31.3.23 Deposit account Interest 104,448 9,218 Page 17 contlnued...
Martha Trust Hereford Limited Notes to the Financial Statements - contlnued for the Year Ended 31 March 2024 INCOME FROM CHARrrABLE ACTNMES 31.3.24 31.3.23 Activity Llfelong care for people with profound intellectual and physical disabilities Involced Patient Care 4,746,164 4,495,425 CHARITABLE ACTIVITIES COSTS Direct Costs (see note 61 Support costs (see note 7) Totals Lifelong care for people with profound intellectual and physical disabilities 4,485,382 691,550 5,176,932 DIRECT COSTS OF CHARITABLE ACTIVITIES 31.3.24 31.3.23 Staff costs Rates, water & waste disposal Light and heat Insurance 4,281,237 40,860 107,478 55,807 3,598,665 38,630 107,367 45,776 4,485,382 3,790,438 SUPPORT COSTS Govemance costs Other Totals Lifelong care for people with profound intellectual and physical disabilities 665,158 26,392 691,550 NEf INCOMEI{EXPENDITURE) Net incomel{expenditurel is stated after chargingl (crediting): 31.3.24 31.3.23 Audit Fees Depreciation - owned as5et5 Surplus on disposal of fixed assets 6,500 218,767 6,000 206,573 (29,8601 Page 18 continued...
Martha Trust Hereford Limited Notes to the Financial Statements - continued for the Year Ended 31 March 2024 TRUSTEES. REMUNERATION AND BENEFITS There were no trustees. remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023. Trustees. expense5 There were no trustees. expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023. 10. STAFF co&rs 31.3.24 31.3.23 Wages and salaries Social security costs Other pension costs 3,882,665 331,516 71,832 3,312.065 230,819 60,557 4,286,013 3,603,441 Key Management Remuneration paid for the year ended 3110312024 was: £412,27213110312023: £271,452). This consists of the Trust Director, Deputy Trust Director, Director of Care, Manager of Sophie House and Manager of Martha House and HR manager. Full time equivalent employees - anatysed by function 2024 110 14 124 2023 Patient Care Management & Admin Total 13 117 The average monthly number of employees during the year was as follows: 31.3.24 80 33 31. 3.23 76 30 Full Time (more than 30 hours per week) Part Tiffle130 hours or less per week) 113 106 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,OW was: 31.3.24 31.3.23 £60.001- £70,000 £80,001- £90,000 The current year and prior year both include the director of care. But the current year also Includes the manager of sophie house and a night nurse. Page 19 continued...
Martha Trust Hereford Limited Notes to the Financial Statements - continued for the Year Ended 31 March 2024 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTNITIES Unrestricted funds Restricted fund Total funds INCOME AND ENDOWMENTS FROM Donations and legacies 35,966 35,966 Charitable activltles Lifelong care for people with profound intellectual and physical disabilitie5 4,495,425 4,495,425 Investment income Other income 9,218 155,173 9,218 155,173 Total 4,695,782 4,695,782 EXPENDITURE ON Charitable activities Lifelong care for people with profound intellectual and physical disabilities 4,318,596 32,769 4,351,365 NEf INCOMEI(EXPENDITURE) 377,186 (32,769) 344,417 RECONCILIATION OF FUNDS Total funds brought forward 7,480,691 1,321,510 8,802.201 TOTAL FUNDS CARRIED FORWARD 7,857,877 1,288,741 9,146,618 12. TANGIBLE FIXED ASSErs Freehold Land & BuildTngs Improvements to property Plant and machinery COST At 1 April 2023 Additions Disposals 5.602.278 504.266 28,494 81,773 3,816 At 31 March 2024 5,602,278 532,760 85,589 DEPRECIATION At 1 April 2023 Charge for year Eliminated on disposal 1,568,753 116,111 139.076 15,690 76,667 617 At 31 March 2024 1,684,864 154,766 T7.284 NEf BOOK VALUE At 31 March 2024 3,917,414 377,994 8,305 At 31 March 2023 4,033,525 365,190 5,106 Page 20 contlnued...
Martha Trust Hereford Limited Notes to the Financial Statements - continued for the Year Ended 31 hlarch 2024 12. TANGIBLE FIXED ASSEfs - continued Fixtures and fittings Motor vehicles Totals COST At 1 April 2023 Additions Disposals 739,936 77,613 (19,628} 118,457 82,473 7,046,710 192,396 (19,6281 At 31 March 2024 797,921 ZIXI,930 7,219,478 DEPRECIATION At 1 April 2023 Charge for year Eliminated on disposal 511.578 80,588 (19,628) 109,277 5,761 2,405,351 218,767 (19,628) At 31 March 2024 572,538 115,038 2,604,490 BOOK VALUE At 31 March 2024 225,383 85,892 4,614,988 At 31 March 2023 228.358 9,180 4,641,359 Included viithin Freehold Land & Buildings is Land at cost of £199,151. 13. FIXED ASSET INVESTMEKrs There were no investment assets outside the UK. 14. DEBTORS: AMOUNTS FALLING DUE wrrHIN ONE YEAR 31.3.24 31.3.23 Trade debtors Prepayments and accrued income 260,546 48,284 114,520 68,538 308,830 183,058 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.24 31.3.23 Trade creditors Social security and other taxes Other creditors Accrued expenses Deferred government grants 72,862 81,567 13,824 15,098 7,192 35.069 70.723 12,643 38,564 7,880 190,543 164,879 Deferred Income arising from patient care Invoices raised in advance for 2024 was £7,19212023: £7,880) Page 21 continued...
Martha Trust Hereford Limited Notes to the Financial Statements . continued for the Year Ended 31 March 2024 16. MOVEMENT IN FUNDS Net movement in funds At 31.3.24 At 1.4.23 Unrestrlcted funds General fund Designated 3,211,630 4,647,027 {255,460) 2,956.170 4,647,027 7,858,657 1255,460) 7,603.197 Restricted funds Restricted 1,287,961 1,287,961 TOTAL FUNDS 9,146,618 (255,4601 8,891,158 Net movement in funds, included in the above are as follows: Incoming resources Resources expended Movement in funds Unrestricted funds General fund 4,866,1n 15,121,632) (255,4601 Restricted funds Restricted 55,300 (55, 31x1) TOTAL FUNDS 4,921,472 15.176.932) (255.4601 Comparatives for movement in funds Net movement in funds Transfers between fund5 At 31.3.23 At 1.4.22 Unrestrlcted funds General fund Designated 3,707,606 3,773,085 584,538 {206, 5721 {1,106,8851 1,106,885 3,185,259 4,673,398 7,480,691 377,966 7,858,657 Restrlcted fund5 Restricted 1,321,510 (33, 549) 1,287,961 TOTAL FUNDS 8,802,201 344,417 9,146,618 Page 22 contlnued...
Martha Trust Hereford Limited Notes to the Financial Statements . Continued for the Year Ended 31 March 2024 16. MOVEMEKf IN FUNDS - continued Comparative net movement in funds, included in the above are as follows: Incoming resources Resources expended Movement in funds Unrestrlcted funds General fund Designated 4,695,782 14,111,244) {2IyJ,572) 584,538 (206,5721 4,695,782 14,317,816) 377,966 Restrlcted funds Restricted {33,549) (33.5491 TOTAL FUNDS 4,695.782 14,351,365) 344,417 A current year 12 months and prior year 12 months combined position is as follows: Net movement in funds Transfers between funds At 31.3.24 At 1.4.22 Unrestricted funds General fund Designated 3,707,606 3,773,085 329,078 (206,572) 11,106,885) 1,106,885 2,929,799 4,673,398 7,480,691 122,506 7,603,197 Re5trlcted funds Restricted 1,321.510 (33, 549) 1,287,961 TOTAL FUNDS 8,802,201 88,957 8,891,158 A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: Incoming resources Resources expended Movement in funds Unrestrlcted funds General fund Designated 9,561,954 {9,232,8761 (206, 5721 329,078 {206.572) 9,561,954 {9,439.4481 122,51 Restricted funds Restricted 55,300 188,8491 {33,549) TOTAL FUNDS 9,617,254 {9,528,2971 88,957 Desi nated Funds Within designated funds there is £220,1)JO set aside as an operational fund. Thi5 15 to cover any unplanned structural repairs or replacement of equipment. Page 23 continued...
hlartha Trust Hereford Limited Notes to the Flnancial Statements - continued for the Year Ended 31 March 2024 16. MOVEMENT IN FUNDS - continued £1.100,000 is set aside for future repairs and upgrades at both Martha House and Sophie House. An additional £1,000,000 has been designated in the prior financial year. In 2022 there wa5 £100,000 set aside as a Sophie Htyjse fund which was for upcoming maintenance and works planned at Sophie House. The remaining amount is within the fixed a55et reserve which is the funds invested in fixed asset5 to allow the charity to carry out its work. Restricted Funds Restricted funds all relate to fixed assets for Sophie House where funding had been allocated solely for this purpose. The total fund balance at the year end is £1,287,961 which agrees to the net book value of restricted fixed assets. In the year we have recognised the LD Grant funding from HEE within restricted funds but there is no effect on the overall clf balance as this income has been fully spent on Salaries for these nurses. 17. CAPITAL COMMITMENTS As at 31 March 2024 the following purchase orders were in place for the following capital item5: Pressurisation Unit £2,276.06, Water Heater l Boiler £13,278.83 and Gas Commercial Tumble Dryer £5,455.20. 18. RELATED PARTh DISCLOSURES There were no related party transactions for the year ended 31 March 2024 or 31 IAarch 2023. Page 24
Martha Trust Hereford Limited Detailed Statement of Flnancial Activities for the Year Ended 31 March 2024 31.3.24 31.3.23 INCOME AND ENDOWMENTS Donations and legacies Donations & Grants 70,860 35,966 Investment income Deposit account interest 104,448 9,218 Charitable actlvltles Invoiced Patient Care 4,746,164 4,495,425 Other Income Gain on sale of tangible fixed assets Insurance Claim Income 29.860 125,313 155,173 Total Incom1 resources 4,921,4n 4,695,782 EXPENDITURE Charitable activltSes Wages Social security Pensions Rates, water & waste disposal Light and heat Insurance 3,877,889 331,516 71,832 40,860 107,478 55,807 3,307,289 230,819 60,557 38,630 107.367 45,776 4,485,382 3.790,438 Support Costs Other Medical & Hygiene Telephone & IT Costs Postage and stationery Sundry Expenses Cleanlng & Laundry Catering Protective Clothing Holidays & Activities Recruitment Costs CQC & CRB Travelling Motor Expenses Property Expenses Equipment Repairs & Small Tool Licences & Subscriptions Staff Training Carried forward 104,081 26,736 10,980 6,576 14,166 56,709 4,184 6,786 35,677 12,047 3,061 15,086 70,353 66,559 1,779 10,974 445,754 91,143 16,774 8,233 5,065 10,666 47,643 4,049 8,788 17,011 4,4n 1,106 14,463 35,325 58,224 1,714 6,259 330,935 This page does not fomi part of the statutory financial statements Pase 25
Martha Trust Hereford Limited Detalled Statement of Financial Activitles for the Year Ended 31 March Z024 31.3.24 31.3.23 Other Brought forward Bank Charges Disposal of Pknrtha Development Freehold property 445,754 637 330,935 709 218,766 206, 572 665,158 538,216 Governance costs Wages Auditors. remuneration Accountancy fees Legal fees Office Costs 4,776 6,500 3,352 9,785 1,979 4,776 7,130 1,805 26,392 22,711 Total resources expended 5.176,932 4,351.365 Net (expenditure)lincome (255,460) 344,417 This page does not form part of the statutory financial statements Page 26