Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Annual Report and Financial Statements Year Ended 31 March 2024 Company registration number: 03079623 Charity registration number: 1053486
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Directors’ report (incorporating Trustees’ report and Strategic report) | 2 to 10 |
| Independent Auditors' Report | 11 to 14 |
| Statement of Financial Activities | 15 to 16 |
| Balance Sheet | 17 |
| Notes to the Financial Statements | 18 to 36 |
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Reference and Administrative Details
| Directors | Ms L Blackwood |
|---|---|
| Ms S Clarke-Kuehn | |
| Mr E Lunt | |
| Mr N Warren | |
| Mr J Whitmore | |
| Mr P Williams | |
| Secretary | Ms N Seymour |
| Charitable company | 1053486 |
| Registration Number | |
| Company Registration Number | 03079623 |
| The charitable company is incorporated in England and Wales. | |
| Registered Office | Sanctuary House Chamber Court |
| Castle Street | |
| Worcester | |
| WR1 3ZQ | |
| Auditor | PKF Francis Clark |
| Statutory Auditor | |
| Lowin House | |
| Tregolls Road | |
| Truro | |
| TR1 2NA | |
| Solicitors: | Gowling WLG (UK) LLP |
| Two Snowhill | |
| Birmingham | |
| B4 6WR | |
| Bankers | Barclays Bank PLC |
| PO Box 229 | |
| Birmingham | |
| B1 3PF |
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Cornwall Care Limited
Directors’ report (incorporating Trustees’ report and Strategic report)
The Directors present their annual report, incorporating the Trustees’ report and Strategic report, for the year to 31 March 2024 under the Companies Act 2006 together with the audited financial statements for the year and confirm that the latter complies with the requirements of the Act, the Articles of Association and the Charities SORP FRS 102.
Trustees and officers
The trustees and officers serving during the year and since the year end were as follows:
Directors: Ms L Blackwood Ms S Clarke-Kuehn Mr E Lunt Mr N Warren Mr J Whitmore Mr P Williams
Secretary: Ms N Seymour
Principal activities
Cornwall Care Limited (the charitable company) was incorporated on 8 June 2001 under the Companies Act number 04231521. The company’s ultimate parent undertaking is Sanctuary Housing Association and the charitable company forms part of the Sanctuary Group of entities (the Group). The principal activity of the charitable company continues to be the provision of care for adults and older people throughout Cornwall.
Our clients receive quality care services that are provided in the following ways:
• Care Homes : Our care homes provide care for older frail people and those with dementia, either on a permanent basis or for rehabilitation and respite visits. Nursing services were in operation in nine of these homes for the full year.
• Extra Care / Supported Living : A number of our properties contain independent living units which provide accommodation enabling adults with mental health issues to live semi-independent lives within the community.
Objectives and activities
Objects and aims
The company’s objects, as set out in the Articles of Association, are: (a) to promote the relief of and provide relief, support and assistance to individuals who by reason of old age, or physical or mental handicap, require special care and attention; (b) to promote and provide relief to children and young people who require special care and attention;and (c) to promote, in particular the relief of, and provide support and assistance to, beneficiaries who are resident in or associated with the County of Cornwall, the County of Devon and the Isles of Scilly. ‘Beneficiaries’ means the people referred to in the points above,
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Cornwall Care Limited
Directors’ report (incorporating Trustees’ report and Strategic report)
Public benefit
The company’s charitable objectives are set out above. Throughout the year the Directors have sought to benefit the public by:
• providing care to those funded by means tested assistance from the Local Authority and Kernow Clinical Commissioning Group; and
• to continue to work closely with the Local Authorities and the Kernow Clinical Commissioning Group on implementing change in the way that care for older people, those with dementia and those with learning difficulties is provided.
As such the Directors confirm that they comply with their duty to have due regard to the Charity Commission’s guidance on public benefit in exercising their powers and duties and consider it in all aspects of the Cornwall Care's activities as reflected throughout the Directors’ Report.
Results
The results of the company for the year ended 31 March 2024 are set out on page 15.
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Cornwall Care Limited
Directors’ report (incorporating Trustees’ report and Strategic report)
Key performance indicators
The charitable company manages the following bed spaces:
Key performance indicators are shown in the table below and compare the financial periods ended 31 March 2024 (12 months) and 31 March 2023 (15 months) .
Review of business
Since joining the Sanctuary Group, Cornwall Care has forged a new strategic partnership, and continues to work closely, with Cornwall Council. This strategic partnership enables the two organisations to work closely together to ensure people in the county get high-quality care and support when they most need it.
2023/24 has seen steady occupancy growth, building on the trend set in the prior year as the care sector recovered from the impact of the Covid-19 pandemic. Whilst there has been an increase in occupancy and income streams, the availability of staff remained a challenge.
During this time, the charitable company has continued to see operational teams rise to the challenges presented and showcase a commitment to residents, as well as their tenacity and ability to innovate to deliver a quality service.
Cornwall Care has gone through a process of adopting Sanctuary Care’s working practices and governance to ensure homes meet Care Quality Commission (CQC) standards. Internal quality assurance monitoring accurately reflects the CQC inspection standard and the charitable company is committed to working with the CQC to maintain the delivery of high quality care.
Future developments
Over the next 12 months, the Cornwall Care redevelopment programme with significant investment into the homes, will remain a key focus of work for the Group development team.
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Cornwall Care Limited
Directors’ report (incorporating Trustees’ report and Strategic report)
Principal risks and uncertainties
Principal risks
The charitable company is a subsidiary of Sanctuary Housing Association and part of the Sanctuary Group (the Group). The charitable company, as part of the Group, operates a comprehensive risk mapping process as part of its annual business planning cycle. This process identifies a number of external factors which affect both the Group and the charitable company.
The Executive Committee and Group Audit and Risk Committee review and scrutinise the risk maps for all Group entities. The Sanctuary Group Board approves the Sanctuary Group risk map.
The principal risks for the charitable company included in the risk map considered by the Board during 2023/2024 are:
• Staff recruitment - The ability to recruit and retain qualified carers and nurses is a continuing challenge for all care home operators. It impacts directly on the costs of operating care homes and the quality of care provided. The risk includes wage costs inflation in an environment where costs are increasing.
• Longer term occupancy issues - The charitable company faces competition from other care providers in the regions in which it operates. If a home were to experience an increase in the volume of vacant rooms or the duration of the vacancy, income streams and profitability of the care home will be impacted. The charitable company manages occupancy levels closely and ensures that the relationships it has with local authorities and other commissioning bodies remain strong and that there is also an established proportion of self funding clients in each home to ensure that rooms are filled promptly as they become vacant.
• Changes to government policy, legislation and regulation - The charitable company operations are closely regulated by the Care Quality Commission (CQC). The consequences of non-compliance with regulations could be significant for the charitable company. The charitable company has a robust audit system in place to ensure adherence to policies and compliance with regulatory requirements. Changes to CQC compliance are monitored to ensure policies and processes are updated. The charitable company maintains a risk map that is reviewed by the Board and also by the Group Audit and Risk Committee. Risks also include those around health and safety compliance, legislative requirements and contractual risks.
Financial risk
The charitable company has external debt finance in the form of both an intercompany loan with Sanctuary Affordable Housing Limited and a loan with Cornwall Council relating to the closure of the LGPS deferred benefit pension scheme. Further information is detailed in note 18 on page 33.
The Directors therefore view the overall level of financial risk of the charitable company as low.
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Cornwall Care Limited
Directors’ report (incorporating Trustees’ report and Strategic report)
Employee involvement
Regular meetings are held between senior managers and each business unit’s management team to review progress and developments in their business. Within each business unit the manager holds regular staff meetings to ensure that the charitable company's goals and objectives are fully understood. Views and opinions of members of staff from around the whole Cornwall Care subgroup are collated annually in an anonymous web-based staff survey.
Business relationships
The charitable company's relationship with key business partners is integral to the success of the charitable company. Refer to the business relationships section in the s172 statement on page 7.
Health and safety
It is the clear intention of the charitable company to ensure, as far as reasonably practicable, the health, safety and welfare at work of all its employees. The charitable company undertakes to comply, as a minimum, with the provisions of the Health and Safety at Work Act 1974 and other relevant legislation to meet the objective of achieving the highest possible standards.
Investment in technology
Sanctuary Care has continued to roll-out kradle, which is an in-house electronic care planning app, as well as both electronic medication administration records (eMAR) and staff communications with the Kronos Dimensions app. Dedicated training is being provided to staff through the implementation of the new technology to ensure a smooth transformation from the paper-based approach. In time this will be extended to Cornwall Care as part of the integration plan.
Funds held as custodian trustee on behalf of others Details are set out in note 25 of the financial statements.
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Cornwall Care Limited
Directors’ report (incorporating Trustees’ report and Strategic report)
Section 172 - Directors’ Duties
The Directors of the charitable company, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:
The Board consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the charitable companyfor the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year.
In doing this, section 172 requires a director to have regard, amongst other matters, to the:
-
likely consequences of any decisions in the long-term;
-
interests of the charitable company's employees;
-
need to foster the charitable company's business relationships with suppliers, customers and others;
-
impact of the charitable company's operations on the community and environment;
-
desirability of the charitable company maintaining a reputation for high standards of business
-
conduct; and
-
need to act fairly as between members of the charitable company.
Detailed below is how the Board has maintained its commitment to promoting the success of the charitable company.
Consequences of decisions
The Board promotes a strong culture of governance within the charitable company, and continually monitors performance through the use of key performance indicators, as outlined on page 3.
The long-term strategy of the charitable company is embedded in the strategy of the Sanctuary Group, and details of the Corporate Strategy 2023-2026 can be found on the Sanctuary Group website at https://www.sanctuary-group.co.uk/about-us/our-corporate-strategy
Employees
The charitable company is committed to equal opportunities in employment.
Our employees have the key responsibility of providing residents with a quality level of care, and are fundamental to our success. Our employee satisfaction is monitored through employee engagement surveys, and employees are involved in matters affecting their functions.
It is Group policy to involve all employees in matters affecting their functions. At a formal level this takes place through the Staff Council where management consult with elected staff representatives. At an operational level a team briefing system is in place to keep all employees updated on core Group business issues.
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Cornwall Care Limited
Directors’ report (incorporating Trustees’ report and Strategic report)
Business relationships
Our key customer is our residents and the monitoring of our compliance with CQC ratings ensures we continue to provide a quality level of care. The charitable company is continually developing its use of technology to improve our quality of resident care and the strength of the supply chain.
Community & environment
The impact of the charitable company's operations on the community is integral to the activities of the charitable company and the Sanctuary Group of entities. Sanctuary Group is a strong investor in communities, investing over a million pounds in cash, time and resources each year.
High standard of conduct
The charitable company meets the needs of its residents through continuous internal and external monitoring, through the CQC regulators to continuously improve the standard of Care we provide.
Act fairly between members
The charitable company's sole member is its parent undertaking Sanctuary Housing Association. We encourage honest conversations between staff and managers at all levels, and through these conversations we work together even more effectively. Our intention is to behave responsibly towards the staff we employ and treat them fairly and equally, so they will benefit from the successful delivery of the Group’s strategic plan.
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Cornwall Care Limited
Directors’ report (incorporating Trustees’ report and Strategic report)
Going concern
The Cornwall Care Group, which includes the charitable company, was acquired by Sanctuary Housing Association during the prior year.
Following the acquisition, the long-term future of the charitable company within Sanctuary Group is being considered. Consequently, the trade and assets of the charitable company may ultimately be transferred into a fellow subsidiary of the Group. However, should this occur, it would be more than 12 months after the date of signing these financial statements. Any possible future combination of the charitable company’s operations with other entities in the Group, would be to achieve increased operational and financial efficiency, and maximise capital reinvestment, whilst continuing to deliver the highest quality of care to residents. At this stage, the contracts arising from the strategic partnership with Cornwall Council will continue to be serviced from this entity and the Council’s requirements will be incorporated into any future plans.
The charitable company had net current liabilities of £5.6 million at 31 March 2024 (2023: £4.9 million). However, the charitable company has the continued support of its ultimate parent, Sanctuary Housing Association. The directors of the ultimate parent have provided a letter of support to the trustees of the charitable company to confirm that it intends, should the need arise, to provide financial and/or other support, including, if required, not seeking repayment of amounts currently made available, for the period to 31 March 2026. As with any entity placing reliance on other group entities for financial support, the trustees acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.
The Trustees have also prepared a going concern assessment, based on consideration of cash flow forecasts, for a period of at least 12 months from the date of approval of these financial statements (the going concern assessment period), taking account of a number of plausible downside scenarios. Consequently, the Trustees are confident that the charitable company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and have therefore prepared the financial statements on a going concern basis.
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Cornwall Care Limited
Directors’ report (incorporating Trustees’ report and Strategic report)
Statement of Directors' responsibilities
The Directors (who are also the directors of Cornwall Care Limited for the purposes of company law) are responsible for preparing the Directors’ report (incorporating Trustees’ report and Strategic report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
Company law requires the Directors to prepare financial statements for each financial year. Under company law the Directors must not approve the financial statements unless they are satisfied that they 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 its income and expenditure, of the charitable company for that period. In preparing these financial statements, the Directors are required to:
-
select suitable accounting policies and apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Directors are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.
26.03.2025
The annual report was approved by the Directors of the charitable company on .................... and signed on its behalf by:
......................................... 7430F5B829B2479... Ms L Blackwood Trustee
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Cornwall Care Limited
Independent Auditor's Report to the Members of Cornwall Care Limited
Opinion
We have audited the financial statements of Cornwall Care Limited (the 'charitable company') for the year ended 31 March 2024, which comprise the Statement of Financial Activities, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP, FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the charitable company's affairs as at 31 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 with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors decision to prepare the accounts on a going concern basis is appropriate.
Based on the work we have performed, we have identified the intention to transfer the trade and assets of the business to a subsidiary copany of the ultimate parent company does not cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
Other information
The Directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.
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Cornwall Care Limited
Independent Auditor's Report to the Members of Cornwall Care Limited
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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Directors’ report (incorporating Trustees’ report and Strategic report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the Directors’ report (incorporating Trustees’ report and Strategic report) has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ report (incorporating Trustees’ report and Strategic report) .
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Directors remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Statement of Directors' responsibilities (set out on page 10), the Directors 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 Directors 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 Directors are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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Cornwall Care Limited
Independent Auditor's Report to the Members of Cornwall Care Limited
Auditor 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of our audit planning, we obtained an understanding of the legal and regulatory framework that is applicable to the charitable company. We gained an understanding of the industry in which the charitable company operates as part of this assessment to identify the key laws and regulations affecting the charitable company. As part of this, we reviewed the Sanctuary group website for indication of any regulations and certification in place which are applicable to the charitable company and discussed these with the relevant individuals responsible for compliance. The key regulations we identified were the regulations of the Care Quality Commission (CQC), as well as health and safety regulations, tax legislation,employment law and breaches of The General Data Protection Regulation (“GDPR”). We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the charitable company’s ability to continue operating and the risk of material misstatement to the accounts. We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements.
• Review of CQC ratings and reports and enquiries of management in relation to any ongoing CQC reviews and communications.
• Review of the charitable company's GDPR register and enquiries of the charitable company's compliance officer as to the occurrence and outcome of any reportable breaches.
• Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance.
We assessed the susceptibility of the financial statements to material misstatement through management override or fraud, including in relation to cash income and expenditure, accuracy of revenue cut off, and obtained an understanding of the controls in place to mitigate the risk of fraud. Based upon our understanding we designed and conducted audit procedures including:
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Cornwall Care Limited
Independent Auditor's Report to the Members of Cornwall Care Limited
• Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates.
As part of our enquiries, we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which there were none.
We also evaluated the risk of fraud through management override including that arising from management's incentives. The key risk we identified was fraudulent financial reporting in respect of revenue completeness and cut off.
In response to the identified risk, as part of our audit work we:
• Used data analytics to test journal entries throughout the year, for appropriateness;
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates.
• Undertook specific cut-off procedures in respect of revenue around the year end.
• Reviewed controls related to income to ensure the completeness of revenue.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charitable company's Directors, 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 Directors those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its Directors as a body, for our audit work, for this report, or for the opinions we have formed.
...................................... DBA5C4939639455... Tracy Lewis FCA (Senior Statutory Auditor) For and on behalf of PKF Francis Clark, Statutory Auditor
Lowin House Tregolls Road Truro TR1 2NA
27 March 2025 Date:.............................
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Cornwall Care Limited
Statement of Financial Activities for the Year Ended 31 March 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 3 Charitable activities 4 Investment income Other income 5 Total income Expenditure on: Charitable activities 6 Other expenditure 7 Total expenditure Net expenditure Transfers between funds Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 21 |
Unrestricted funds £ 000 1 32,048 3 327 32,379 (25,362) (10,052) (35,414) (3,035) (7) (3,042) 12,231 9,189 |
Restricted funds £ 000 - - - - - - - - - 7 7 227 234 |
Total 2024 £ 000 1 32,048 3 327 |
|---|---|---|---|
| 32,379 | |||
| (25,362) (10,052) |
|||
| (35,414) | |||
| (3,035) - |
|||
| (3,035) 12,458 |
|||
| 9,423 |
The notes on pages 18 to 36 form an integral part of these financial statements. Page 15
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Cornwall Care Limited
Statement of Financial Activities for the Year Ended 31 March 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
Period ended 31 March 2023
| Note Income and Endowments from: Donations and legacies 3 Charitable activities 4 Investment income Other income 5 Total income Expenditure on: Charitable activities 6 Other expenditure 7 Total expenditure Net expenditure Transfers between funds Other recognised gains and losses Gains/losses on revaluation of fixed assets Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 21 |
Unrestricted funds £ 000 33 45,968 1 789 46,791 (18,805) (33,395) (52,200) (5,409) (11) - (5,420) 17,651 12,231 |
Restricted funds £ 000 - - - - - - - - - 11 - 11 216 227 |
Total 2023 £ 000 33 45,968 1 789 |
|---|---|---|---|
| 46,791 | |||
| (18,805) (33,395) |
|||
| (52,200) | |||
| (5,409) - - |
|||
| (5,409) 17,867 |
|||
| 12,458 |
All of the charitable company's activities derive from continuing operations during the above two periods.
The funds breakdown for 2023 is shown in note 21.
The notes on pages 18 to 36 form an integral part of these financial statements. Page 16
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
(Registration number: 03079623) Balance Sheet as at 31 March 2024
| (Registration number: 03079623) Balance Sheet as at 31 March 2024 |
|||
|---|---|---|---|
| 2024 | 2023 | ||
| Note | £ 000 | £ 000 | |
| Fixed assets | |||
| Tangible assets | 13 | 29,697 | 30,574 |
| Investments | 14 | - | - |
| 29,697 | 30,574 | ||
| Current assets | |||
| Stocks | - | 1 | |
| Debtors | 15 | 6,714 | 2,721 |
| Cash at bank and in hand | 16 | 2,638 | 661 |
| 9,352 | 3,383 | ||
| Creditors: Amounts falling due within one year | 17 | (14,957) | (8,289) |
| Net current liabilities | (5,605) | (4,906) | |
| Total assets less current liabilities | 24,092 | 25,668 | |
| Creditors: Amounts falling due after more than one year | 18 | (13,795) | (13,210) |
| Provisions | 19 | (874) | - |
| Net assets | 9,423 | 12,458 | |
| Funds of the charitable company: | |||
| Restricted income funds | |||
| Restricted funds | 21 | 234 | 227 |
| Unrestricted income funds | |||
| Unrestricted funds | 9,189 | 12,231 | |
| Total funds | 21 | 9,423 | 12,458 |
The 26.03.2025 financial statements on pages 15 to 36 were approved by the Directors, and authorised for issue on .................... and signed on their behalf by:
......................................... 7430F5B829B2479... Ms L Blackwood Trustee
The notes on pages 18 to 36 form an integral part of these financial statements. Page 17
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
1 Charitable company status
The charitable company is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the Directors is liable to contribute an amount not exceeding £1 towards the assets of the charitable company in the event of liquidation.
The address of its registered office is: Sanctuary House Chamber Court Castle Street Worcester WR1 3ZQ
2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with 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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Basis of preparation
Cornwall Care Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The financial statements are prepared in pounds sterling which is the functional currency of the charitable company. Unless otherwise stated, amounts are denominated in thousands (£'000) rounded to the nearest £1,000.
Page 18
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
2 Accounting policies (continued)
Going concern
The Cornwall Care Group, which includes the charitable company, was acquired by Sanctuary Housing Association during the prior year.
Following the acquisition, the long-term future of the charitable company within Sanctuary Group is being considered. Consequently, the trade and assets of the charitable company may ultimately be transferred into a fellow subsidiary of the Group. However, should this occur, it would be more than 12 months after the date of signing these financial statements. Any possible future combination of the charitable company’s operations with other entities in the Group, would be to achieve increased operational and financial efficiency, and maximise capital reinvestment, whilst continuing to deliver the highest quality of care to residents. At this stage, the contracts arising from the strategic partnership with Cornwall Council will continue to be serviced from this entity and the Council’s requirements will be incorporated into any future plans.
The charitable company had net current liabilities of £5.6 million at 31 March 2024 (2023: £4.9 million). However, the charitable company has the continued support of its ultimate parent, Sanctuary Housing Association. The directors of the ultimate parent have provided a letter of support to the trustees of the charitable company to confirm that it intends, should the need arise, to provide financial and/or other support, including, if required, not seeking repayment of amounts currently made available, for the period to 31 March 2026. As with any entity placing reliance on other group entities for financial support, the trustees acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.
The Trustees have also prepared a going concern assessment, based on consideration of cash flow forecasts, for a period of at least 12 months from the date of approval of these financial statements (the going concern assessment period), taking account of a number of plausible downside scenarios. Consequently, the Trustees are confident that the charitable company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and have therefore prepared the financial statements on a going concern basis.
Summary of disclosure exemptions
FRS102 grants a qualifying entity exemptions from the full requirements of FRS102. The following exemptions have been taken in these financial statements as the charity is deemed to be a qualifying entity:
The charity has taken advantage of the exemption, under FRS102 paragraph 1.12(b), from preparing a Statement of Cash Flows, on the basis that it is a qualifying entity and its ultimate parent company, Sanctuary Housing Association, includes the company's cash flows in its own consolidated financial statements.
Page 19
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
2 Accounting policies (continued)
Critical accounting judgements and key sources of estimation uncertainty
In the application of the charitable company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The key judgement that has a significant impact on the financial statements is in respect of going concern, as described above.
Other accounting estimates
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:
Land and buildings. Properties are carried at valuation. This requires an estimation of the value of properties as at the balance sheet date, and adjusting the carrying value accordingly. During the prior financial year, all property fair values were determined by independent valuers in accordance with RICS Valuation Professional Standards. A formal third-party valuation exercise has not been conducted for the year ended 31 March 2024, as it is the opinion of the trustees that there has not been a material movement in the values of the properties.
Trade debtors. Provision is made against amounts which are considered doubtful on a specific client by client basis. The carrying value of trade debtors at the year end is £3,484,000 (2023 - £2,029,000).
Income and endowments
All income is recognised once the charitable company has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Page 20
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
2 Accounting policies (continued)
Donations and legacies
Donations are recognised when the charitable company has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charitable company before the charitable company is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charitable company and it is probable that these conditions will be fulfilled in the reporting period.
Legacy gifts are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charitable company.
Grants receivable
Grants are recognised when the charitable company has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Deferred income
Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:
- The donor specifies that the grant or donation must only be used in future accounting periods; or - The donor has imposed conditions which must be met before the charitable company has unconditional entitlement.
Investment income
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Charitable activities
Charitable expenditure comprises those costs incurred by the charitable company in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Page 21
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
2 Accounting policies (continued)
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
Taxation
The charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charitable company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Properties are recorded at valuation. All other fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The portion of property value considered to be land is the lower of 33% of the valuation and the indicative site value.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
| Asset class | Depreciation method and rate |
|---|---|
| Freehold property | 10 to 40 years straight line |
| Long leasehold properties | Over the term of the lease |
| Computer equipment | 4 to 10 years straight line |
| Fixtures, fittings and other equipment | 4 to 10 years straight line |
| Motor vehicles | 4 to 7 years straight line |
Fixed asset investments
Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.
Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.
Stock
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).
Page 22
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
2 Accounting policies (continued)
Trade debtors
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charitable company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charitable company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the charitable company has an obligation at the reporting date as a result of a past event, it is probable that the charitable company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Fund structure
Unrestricted income funds are general funds that are available for use at the Directors discretion in furtherance of the objectives of the charitable company.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Page 23
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
2 Accounting policies (continued)
Pensions and other post retirement obligations
The charitable company operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charitable company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Recognition and measurement
The charitable company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised when the charitable company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include trade and other debtors, amounts due from group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charitable company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities, including trade and other creditors and amounts due to group undertakings are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities are derecognised when, and only when, the charitable company's contractual obligations are discharged, cancelled, or they expire.
Page 24
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
2 Accounting policies (continued)
Debt instruments
Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.
(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.
(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).
Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.
With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.
Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.
Investments
Investments in subsidiaries are measured at cost less impairment.
Page 25
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
2 Accounting policies (continued)
Fair value measurement
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
3 Income from donations and legacies
| Donations and legacies; Donations from individuals Grants, including capital grants; Grants from other charities 4 Income from charitable activities Care Home Home Care 5 Other income Income from trading subsidiary Other Training Grants |
Unrestricted funds General £ 000 1 - 1 Unrestricted funds General £ 000 32,092 (44) 32,048 Unrestricted funds General £ 000 112 246 - (31) 327 |
Total 2024 £ 000 1 - 1 Total 2024 £ 000 32,092 (44) 32,048 Total 2024 £ 000 112 246 - (31) 327 |
Total 2023 £ 000 23 10 |
|---|---|---|---|
| 33 | |||
| Total 2023 £ 000 44,514 1,454 |
|||
| 45,968 | |||
| Total 2023 £ 000 251 15 (11) 534 |
|||
| 789 |
Page 26
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
6 Expenditure on charitable activities
| Note Resident Costs Premises and equipment costs Communications Legal and professional Other care expenses Depreciation, amortisation and other similar costs Staff costs Allocated support costs 8 Agency staff costs Other staff costs |
Unrestricted funds General £ 000 1,150 5,041 453 154 94 2,203 11,195 2,144 2,393 535 25,362 |
Total 2024 £ 000 1,150 5,041 453 154 94 2,203 11,195 2,144 2,393 535 25,362 |
Total 2023 £ 000 1,180 3,421 919 746 116 2,341 1,808 1,783 6,172 319 |
|---|---|---|---|
| 18,805 |
7 Other expenditure
| Other expenditure | Unrestricted funds General £ 000 10,052 10,052 |
Total 2024 £ 000 10,052 10,052 |
Total 2023 £ 000 33,395 |
|---|---|---|---|
| 33,395 |
Page 27
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
7 Other expenditure (continued)
Other expenditure costs in 2024 of £10,052k relate to various inter-company recharges.
Other expenditure costs in 2023 of £30,904k relate to various inter-company recharges. A further £2,491k relate to exceptional costs incurred as part of the acquisition including consultancy and professional fees, retention and severance payments, and other post acquisition costs such as termination of contracts.
8 Analysis of support costs
Charitable activities expenditure
| Staff costs Premises and equipment Loan Interest payable Other admin expense Total for period ended 31 March 2024 Total for period ended 31 March 2023 |
Unrestricted funds General £ 000 15 678 1,111 340 2,144 1,783 |
Total funds £ 000 15 678 1,111 340 |
|---|---|---|
| 2,144 | ||
| 1,783 |
9 Net outgoing resources
Net outgoing resources for the year include:
| Audit fees Loss on disposal of fixed assets held for the charitable company's own use Depreciation of fixed assets |
2024 £ 000 40 115 2,089 |
2023 £ 000 35 1,033 1,308 |
|---|---|---|
10 Directors remuneration and expenses
No Directors, nor any persons connected with them, have received any remuneration from the charitable company during the year. Key management responsibilities were undertaken by employees of fellow Sanctuary Group undertakings in the year.
No trustees have received any reimbursed expenses from the charity during the year.
Page 28
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
11 Staff costs
The aggregate payroll costs were as follows:
| The aggregate payroll costs were as follows: | ||
|---|---|---|
| Staff costs during the year were: Wages and salaries Social security costs Pension costs |
2024 £ 000 10,144 753 298 11,195 |
2023 £ 000 1,685 90 33 |
| 1,808 |
The monthly average number of persons (including senior management / leadership team) employed by the charitable company during the year was as follows:
| Care services | 2024 No 425 |
2023 No 7 |
|---|---|---|
No employee received emoluments of more than £60,000 during the year.
The number of employees whose emoluments fell within the following bands was:
| £60,001 - £70,000 £70,001 - £80,000 £100,001 - £110,000 |
2024 No - - - |
2023 No 3 2 1 |
|---|---|---|
Page 29
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
12 Taxation
The charitable company is a registered charity and is therefore exempt from corporation tax.
13 Tangible fixed assets
| Cost or valuation At 1 April 2023 Additions Disposals At 31 March 2024 Depreciation At 1 April 2023 Charge for the year Eliminated on disposals At 31 March 2024 Net book value At 31 March 2024 At 31 March 2023 |
Land and buildings £ 000 27,824 1,201 (1,100) 27,925 107 1,006 (107) 1,006 26,919 27,717 |
Furniture and equipment £ 000 6,224 973 - 7,197 3,433 1,028 - 4,461 2,736 2,791 |
Motor vehicles £ 000 198 - (46) 152 132 6 (28) 110 42 66 |
Total £ 000 34,246 2,174 (1,146) 35,274 3,672 2,040 (135) 5,577 29,697 30,574 |
|---|---|---|---|---|
Included within the net book value of land and buildings above is £9,188,066 (2023 - £10,308,889) in respect of freehold land and buildings and £17,731,351 (2023 - £17,409,000) in respect of leaseholds.
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Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
14 Fixed asset investments
Shares in group undertakings and participating interests
| Cost At 1 April 2023 At 31 March 2024 Provision for impairment At 1 April 2023 At 31 March 2024 Net book value At 31 March 2024 At 31 March 2023 |
Subsidiary undertakings £ 000 - - |
Total £ 000 - - |
|---|---|---|
Details of undertakings
Details of the investments in which the charitable company holds 20% or more of the nominal value of any class of share capital are as follows:
| Country of | Proportion of voting | Proportion of voting | Principal | ||
|---|---|---|---|---|---|
| Undertaking | incorporation | Holding | rights and shares held | activity | |
| 2024 | 2023 | ||||
| Subsidiary undertakings | |||||
| Cornwall Care Services Limited |
England and Wales |
Ordinary | 100% | 100% | Care services |
| Cornwall Care Property Limited |
England and Wales |
Ordinary | 100% | 100% | Property developer |
As a result of the directors' decision to transfer the trade and assets of Cornwall Care Services Limited and Cornwall Care Property Limited to a fellow subsidiary of the Sanctuary Group, the financial statements of these entities for the year ended 31 March 2024 have been prepared on a basis other than going concern.
Page 31
Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
| 15 Debtors Trade debtors Due from group undertakings Prepayments Accrued income 16 Cash and cash equivalents Cash on hand Cash at bank 17 Creditors: amounts falling due within one year Trade creditors Other loans Due to group undertakings Other taxation and social security Other creditors Accruals Deferred income |
2024 £ 000 3,484 2,635 247 348 6,714 2024 £ 000 - 2,638 2,638 2024 £ 000 1,087 451 7,572 2 237 4,670 938 14,957 |
2023 £ 000 2,030 - 97 594 |
|---|---|---|
| 2,721 | ||
| 2023 £ 000 11 650 |
||
| 661 | ||
| 2023 £ 000 1,084 480 1,397 5 1,206 4,117 - |
||
| 8,289 |
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Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
18 Creditors: amounts falling due after one year
| Other loans | 2024 £ 000 13,795 |
2023 £ 000 13,210 |
|---|---|---|
Bank and other loans
Other loan balances for 2024 include:
An intra-group loan agreement which was entered into in the previous year. The balance outstanding at the year end was £11.4m (2023: £11.4m). The intra group loan is held with Sanctuary Affordable Housing Limited and is secured by fixed and floating charges over the assets of the charitable company.
A further £1m intra-group revolving loan facility has been entered into with Sanctuary Affordable Housing Limited in 2024. The revolving loan facility is secured by fixed and floating charges over the assets of the charitable company
During 2019, the charitable company took a loan with Cornwall Council which related to the settlement of the LGPS deferred benefit pension scheme taken up in September 2018 for £4.2m with an interest rate at 1.75% repayable over 115 months. The balance outstanding as at 2024 was £1.4m (2023: £1.8m).
19 Provisions
| 19 Provisions | ||
|---|---|---|
| At 1 April 2023 Increase from reclassifications At 31 March 2024 |
Other provision £ 000 - 874 874 |
Total £ 000 - 874 |
| 874 |
The increase in provisions in year relates to items reclassified from accruals. This consists of employee related costs, balances due from pre acquisition and irrecoverable VAT expenses.
20 Pension schemes
Defined contribution pension scheme
The charitable company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charitable company to the scheme and amounted to £474,722 (2023 - £493,330).
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Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
21 Funds
| Unrestricted funds General General fund Designated Homes' amenities account Other Pension post settlement Revaluation reserve Total unrestricted funds Restricted funds Huddy legacy Total funds |
Balance at 1 April 2023 £ 000 (5,938) 55 (2,293) 20,407 18,114 12,231 227 12,458 |
Incoming/ (outgoing) resources £ 000 (3,476) - 441 - 441 (3,035) - (3,035) |
Transfers £ 000 48 (55) - - - (7) 7 - |
Balance at 31 March 2024 £ 000 (9,366) - (1,852) 20,407 |
|---|---|---|---|---|
| 18,555 | ||||
| 9,189 234 |
||||
| 9,423 |
The Homes' amenities accounts are to provide minor comforts and benefits for residents in consultation with the residents and staff. All of the amenities bank accounts were closed during the year following the acquisition by Sanctuary Group and therefore the balance has been transferred to general funds.
The Huddy legacy is for the benefit of residents at Trevarna Care Home.
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Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
21 Funds (continued)
| 21 Funds (continued) | ||||||
|---|---|---|---|---|---|---|
| Balance at 1 January 2022 £ 000 Unrestricted funds General General fund (821) Designated Homes' amenities account 55 Other Pension post settlement (2,796) Revaluation reserve 21,213 18,417 Total unrestricted funds 17,651 Restricted Huddy legacy 216 Total funds 17,867 22 Analysis of net assets between funds General Fund £ 000 Revaluation Reserve £ 000 Tangible fixed assets 9,290 20,407 Current assets 9,118 - Current liabilities (14,957) - Creditors over 1 year (11,943) - Provisions (874) - Total net assets (9,366) 20,407 |
Incoming/ (outgoing) resources £ 000 (5,106) - 503 (806) (303) (5,409) - (5,409) Pension post settlement Fund £ 000 - - - (1,852) - (1,852) |
Transfers £ 000 (11) - - - - (11) 11 - Restricted Fund £ 000 - 234 - - - 234 |
Balance at 31 March 2023 £ 000 (5,938) 55 (2,293) 20,407 |
|||
| 18,114 | ||||||
| 12,231 227 |
||||||
| 12,458 | ||||||
| Total Funds as at 31 December 2024 £ 000 29,697 9,352 (14,957) (13,795) (874) |
||||||
| 9,423 |
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Docusign Envelope ID: A2EC5E8D-5152-41C3-B999-1B9A0DABC47CDocusign Envelope ID: E2BB3D23-6F6C-4906-8E6B-982948B69DC7
Cornwall Care Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
22 Analysis of net assets between funds (continued)
| Tangible fixed assets Current assets Current liabilities Creditors over 1 year Total net assets |
General Fund £ 000 Designated Fund £ 000 Revaluation Reserve £ 000 10,167 - 20,407 3,101 55 - (8,289) - - (10,917) - - (5,938) 55 20,407 |
Pension post settlement Fund £ 000 - - - (2,293) (2,293) |
Restricted Fund £ 000 - 227 - - 227 |
Total Funds as at 31 December 2023 £ 000 30,574 3,383 (8,289) (13,210) |
|---|---|---|---|---|
| 12,458 |
23 Related party transactions
The charitable company has taken advantage of the exemption under the terms of FRS102 from disclosing related party transactions with entities that are part of the Sanctuary Group. There were no related party transactions in the year other than those with entities within the Sanctuary Group.
24 Parent and ultimate parent undertaking
The company's immediate and ultimate parent is Sanctuary Housing Association, incorporated in England and Wales.
The most senior parent entity producing publicly available financial statements is Sanctuary Housing . These financial statements are available upon request from its registered office, Sanctuary House Chamber Court, Castle Street, Worcester, England, WR1 3ZQ.
25 Custodian trustee
The charitable company is custodian trustee of residents' savings bank accounts. The money held in these bank accounts at 31 March 2024 was £39k (2023: £41k). These accounts are in the residents' own names, are separate from the charitable company's own bank account and are not included in these financial statements.
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