Charity Registration No. 1058769 Company Registration No. 03244113 (England and Wales) PETWORTH COTTAGE NURSING HOME IA &IV I Dv rl Ib IIY hllJAI. P.l.-k" PETWORTH COTTAGE NURSING HOME LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mr C R Hubbard, Chairman Mr J RAtkins DrAJ Smoker Mr T J Barrington DrSPett MrA W Brooke Mr D H M Burrell Dr G M Lyons Mr A M Hepworth Ms P Barton (Appointed 1 January 2024} (Appointed 26 September 2024) Secretary DrSPett Patron The Lady Egremont Charity number 1058769 Company number 03244113 Registered office Petworth Cottage Nursing Home Fittleworth Road Petworth West Sussex GU28 OHQ Auditor Anova The Barn, Meadow Court Faygate Lane Faygate Horsham West Sussex RH124SJ Bankers Natwest Bank PLC 5 East Street Chichester Wesl Sussex P0101HH Solicitors Anderson Rowntree Wisteria House Market Square pe￿Orth West Sussex GU28 OAJ Investment advisors Quilter Cheviot Senator House 85 Queen Victoria Street London EC4V 4AB PETWORTH COTTAGE NURSING HOME CONTENTS Page Trustees, report -Qt2t} with average occupancy of 27 residents (2023. 271 Resep4es Policy The financial policy of the charity is to continue to hold reserve funds not only to cover the maintenance and renewal of the buildings and equipment of the charity but also to ensure a strong balance sheet to miligale the impact of any weakness in the market during the current and continuing recessionary period. It Is con51dered politic and sound management to ensure that reserves do not fall below £800.000 in order to meet many months expenditure and potential repairs to the property Total unrestricted funds were £2.961,278 {2023'. £2,995.199) and after taking account of £1,935,679 12023. £1,944,900) tied up in tangible fixed assets and investment property, uncommitted reserves at the year end were £1,025,59912023. £1.050,2991 PETWORTH COTTAGE NURSING HOME TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Risk Assessment The trustee directors are conscious of the need to review and determine the risks Inherent In the management of the Home and lo establish corrective actions and systems lo miligale the risks. The trustee directors continue to carry out risk assessment which is reviewed on an annual basis Through these procedures. the trustee directors are satisfied that the major risks identified have been adequately mitigated where necessary. It 15 categorised under. Medium likelihoodlhi9h Impact Low likelihoodlhigh impact Low likelihoodlmedium impact Description of Risk Shortage of staffing in the Nursinq home sector Sudden loss of senior staff Category Planning and strategies for managing risk Reducing dependency on agency staff Separate roles for Matron and Deputy Matron are in place so the likelihood of the sudden loss f both is reduced Matronlmanager is registered with the Care Qualitv Commission under relevant reoulalions Bed occupancy levels have improved. Financial crisis Sufficient invested funds. see Investment Policy nd Performance Report attached. Secondary generator installed that cuts in automatically if main supply fails. The Home is equipped with fire extinguishers Electricity failure Natural disaster,. such as fire or lightning strike Disaster recovery plan is in place Training and checks carried out for all staff Misbehaviour by member of staff Disciplinary procedure in place in case of an event arising Palient care records back up on cloud Failure of IT system, Regular back ups of accounts records Offsite suppliers of hot food available Care staff all receive first aid training Drugs administered by trained nurses only in accordance to doctor's prescription (m) Accounts audited by professional accountants and monthly accounts and bank reconciliations prepared Failure of cooking equipment Injury to patientlstaff from. Fall Wrongful administration of drugs Financial & Stores fraud leading to financial difficulty In addition to the above view Document headed"Disaster and Emergency Plan 2023 dated 16105123 prepared by DB and YS. The Trustee Directors and Management team will endeavour to 5UStain occupancy levels. A major consideration and concern continues lo be recruitment of both nursing and caring staff. This is greatly exacerbated by PCNH'S geographical location which is comparatively isolated The Budget foi 2025 is based therefore upon an occupancy level of 28 PETWORTH COTTAGE NURSING HOME TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 structure. governance and management The charitable company Is a company limited by guarantee and was set up in August 1996 It is governed by a Memorandum and Articles ofAssociation dated 19 August 1996. 11 succeeds a charity with similar object5 and assets sel up by a Trust Deed dated 24 November 1971. The trustees, who are also the directors for the purpose of Company law, and who served during the year and up lo the dale of signature of the Iinancial statements were". Mr C R Hubbard, Chairman Mr J RAlkins DrAJ Smoker Mr T J Barrington Dr S Peti MrA W Brooke Mr D H M Burrell Dr G M Lyons Mr A M Hepworth Ms P Barton (Appointed 1 January 2024) (Appointed 26 September 2024} The charity's Articles of Association govern the appointmènt of the trustee directors and the filling of vacancies. New trustee directors are recruited by personal contact. being persons known to the Chairman or other trustee directors as having knowledge and experience which will enable them lo make a significant ontribution to the running of the charity. They will be given informal instruction in their dutie5 and responsibilities and encouraged lo study the appropriate Charity Commission and other instructional papers. The day to day running of the nursing home is under the management of the Nursing Home Manager, Mrs Yvonne Stout. Financial administration and operational support is provided by Mrs. Ayelen Hayes. Finance Controller and both are salaried Expenditure over £10.000 requires board approval. The board of trustee directors meet 6 times per year, receives reports from the Nursing Home Manager. Finance Controller and Doctor, reviews performance and considers issues as they arise. None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up Auditor Anova was appointed as auditor to the company and a resolution proposing Ihat they be re-appointed will be put al a General Meeting Key Management Personnel The arrangements for setting the pay and remuneration of the charity's key personnel, consisting of the Nursing Home Manager, her Deputy and the Finance Controller is resolved by the Chairman with the involvement and approval of the Trustees. Subsequent enhancements for all staff members including senior management are agreed by the remuneration committee comprising the Chairman of the Trustees, the Nursing Home Manager, the Finance Controller and the lead Trustee for finance using bench marks such as Inflation and the National Living Wage PETWORTH COTTAGE NURSING HOME TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Revi¢w of Yèar The need to continue with successional planning is paramount. We are delighted to welcome two new Trustees. Allan Hepworth joined us in January 2024 anij Philippa Barton in September 2024. both bring much lo the table to say nothing of younger yearsll A situation arose in June of 2024. when a member of staff al PCNH reported a matter lo the Chairman of Trustees. The particular mallor was subsequently raised as a Formal Grievance which invoked Ihc Formal Grievance Process and Protocols of the PCNH Mar)agernenl Syslem. Exlerr)al expertise was engaged by the Chairman of Trustees lo undertake the initial steps of the Formal Grievance Process which went lo the Appeal Stage IOT which additional external expertise was also required. Trustees were appointed lo fulfil the functions of Grievance and Appeal Manager5. The duration of the formal processes was very protracted and considerably longer than envisaged. Once an adjudication was made several resloralive actions were identified and enacted by the PCNH Leadership Team and the Board ol Trustees collaboratively. The staff member resumed normal duties. Throughout the episode the Trustees have placed greal store in maintaining a mar￿OnI0uS and supportive working climate at PCNH. A consequence of Ihe Grievance episode is the human cost lo those directly Involved, most particularly Ihe Management Team who have borne a very demanding situation with much fortitude. There are other costs that have had lo be borne, most notably a significanl financial cost amounting to £16,000. We continue lo await the realisalion of Legacies that were very generously gifted lo us some two years ago and a further Benefactor's Legacy of some 250.000 US Dollars in 2024. Hopefully these will all come lo frLJilion during 2026, an eslimale of the combined values being some £300.000. Much work has beer) carried out on our new website which has now been completed and went live" on 16th June 2025 Finally, the Trustees are immensely grateful to Mrs. Yvonne Sloul. Manager (Matronl, Mrs. Ayelen Hayes, our Finance Manager, all the Nursing. Caring and Admini51ralive Team which Matron lead5 with great care and example. They have fflainlained the ethos of compassion and nursing excellence lo the highest standard_ Disclosure of information to auditor e, thL Trustee director5 of the charitable corTbpany who held officc al the date of approval of Ihese Financial Slalernenls as sel out above each confirm. 50 far as we are aware. Ihal.. Ihere is no relevant audit information of which the charitable company s auditors are unaware", and we have taken all the steps that we ought lo have taken as Trustee directors in order lo make ourselves aware ol any relevanl audit information and lo establish that the charitable company's auditors are aware of that informalion. The tru tees, report was approved by the Board of Trustees. Mr C R Hubbard, Chalrnian Truste8 Dated.. ....... PETWORTH COTTAGE NURSING HOME STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2024 The trustees, who are also the directors of Petworth Cottage Nuising Home for the purpose of CoMp￿Y law, are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. Company Law requires the Iruslees to prepare financial statemenls for each financial year which give a true and fair view of the slate of affairs of the charitable company and of the incoming resources and application of resources, including the incoffle and expenditure. of the charitable company for that year. In preparing these financial statements, the trustees are required lo. select suitable accounting policies and then apply them consistently, observe the methods and principles in the Charities SORP. make judgements and estimates that are reasonable and prudent". and prepare the financial statements on the going concem basis unle55 It is inappropriate to presume that the charitable company will continue in operation_ The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any lime the financial position of the charitable company and enable them to ensure that the financol statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. PETWORTH COTTAGE NURSING HOME INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF PETWORTH COTTAGE NURSING HOME Opinion We have audited the financial statements of Pe￿Orth Cottage Nursing Home (the 'charitable company,) for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheet, the slalement of cash flows and the notes to the financial statements. including a summary of significant accounting policies The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standaroy applicable in (he UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charrtable company's affairs a5 at 31 December 2024 and of its incoming resources and application of resources, for the year then ended", have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi￿, and have been prepared in accordance with the requirements of the Charilies Act 2011. Basi5 for opinion We conducted our audrt in accordance with International Standards on Auditing {UK} IISAS (UKII and applicable law. Our responsibilities under those standards are further described in the Auditoffs responsibilities for the audil ol the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements. we have concluded that the trustees. use of the going concern basis of accounting in the preparation of the financial stalemenls is appropriate. Based on the work we have performed, we have not identtfied any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when Ihe financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. other information The other information comprises the Information included In the annual report, including the trustees, report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other informalion and we do not express any form of assurance conclusion thereon_ Our responsibility is to read the other information and, in doing so, consider whether the other Information is materially inconsistent with the financial statements or our knowledge obtained in Ihe course of the audit, or otherwise appears lo be materially misstated. If we idenlify such material Ihis gives rise to a material misstatements 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 Ihat fact. We have nothing to report in this regard PETWORTH COTTAGE NURSING HOME INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF PETWORTH COTTAGE NURSING HOME Matters on which we are required to report by exception We have nothing lo report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if. in our opinion. the information given in the financial statements is inconsistent in any material respect with the tru5tees' report, or sufficient accounting records have not been kept- or the financial statements are not in agreement with the accounting records". or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the statement of trustees, responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such internal control as the trusleos dotermine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to Continue as a going concern, disclosing, as applicable. matters related to going concern and using Ihe going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delect a material missiatemenl when it exists Misstatements can arise from fraud or error and are considered material if. individually or in the aggregate. they could reasonably be exFe¢ted 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 wilh our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The gxtont to which our procedure5 are capable of detecting irregularities. including fraud, is detailed below. We identify and assess risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perfomi audit procedures responsive to Ihose risks. including obtaining audit ewdence that is sufficient and appropriate lo provide a basis for our opinion. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non- compliance with laws and regulations, we considered the following.. the nature of Ihe industry and sector, control environment and charity's performance", results of our enquiries of management aboul Iheir own identification and assessment of the risks of irregularities., any matters we identified having obtained and reviewed the charitable company's documentation of their policies and procedures relating to Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance", detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud, the Internal controls established to mitigate risks of fraud or non-compliance with laws and regulations", the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. PETWORTH COTTAGE NURSING HOME INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF PETWORTH COTTAGE NURSING HOME As a result of these procedures. we considered the opportunities and in￿ntiveS that may exist within the organisation for fraud. In common with all audits we are also required to perform specific procedures lo respond to the risk of management overnde. We also obtained an understanding of the legal and regulatory framework that the charitable company operates in. The key laws and regulations we considered in this conlext included the Charities Act 2011 and Companies Act 2006. In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company's ability to operate or to avoid a material penalty. As a result of performing the above, we did not identify any key matters related to the potential risk of fraud or non- compliance with laws and regulations. Our procedures to respond to risks identified Included the following. reviewing the financial statement disclosures and testing to supporting documentation to assess corT]pliance with relevant laws and regulations described as having a direct effect on the financial statements". enquiring of management concerning actual and polential litigation and claims., performing analytical procedures lo identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.. reviewing minutes of meetings of those charged with governance. reviewing internal reports and reviewing correspondence with HMRC, and.. in addressing the risk of fraud through management override of controls. testing the appropriateness of journal entries and other adjustments. assessing whether the iudgemenls made in making accounting estimates are indicative of a potential bias and evaluating the rationale for any significant transactions that are unusual or outside the normal course of operation. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indication of fraud or non-compliance with laws and regulations throughout the audit. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at. http.lm￿.frC.0rg uklauditorsresponsibilities. This description forms part of our auditor's report PETWORTH COTTAGE NURSING HOME INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE TRUSTEES OF PETWORTH COTTAGE NURSING HOME Use of our report This report is made solely to the charity's trustees. as a body. in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to stale to them in an auditors, report and for no other purpose. To the fullest extent permitted by law. we do nol accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work. for this report, or for the opinions we have formed. Matthew Cleghom (Jul 23, 2025 15.'49.'07 GMT+il Matthew Cleghorn FCA Bsc {Hons) (Senior Statutory Auditor) for and on behalf of Anova 2310712025 Chartered Accountants Statutory Auditor The Barn. Meadow Court Faygate Lane Faygate Horsham West Sussex RH12 4SJ Anova is eligible for appointment as auditor of the charitable company by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006. 10- PETWORTH COTTAGE NURSING HOME STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2024 General Operating funds funds 2024 2024 Total General funds 2023 Operating funds 2023 Total 2024 2023 Notes come f Donations and legacies 71,444 11,329 82.773 86.262 7,044 93,306 le activi Patients. fees Investments 1,833.565 1,833,565 29,454 1.753,367 1.753,367 26,921 29,454 26,921 Total income 100,898 1,844.894 1,945.792 113,183 1,760,411 1,873,594 Raising funds 13,647 13.647 23,543 23,543 Charitable activities Provision of a residential care home Governance 2.045.550 2.045.550 9.283 9.283 1.847,975 7,070 1,847.975 7.070 Total charitable expenditure 2.054.833 2.054.833 1,855,045 1,855,045 Other 10 4.976 4.976 3,108 3.108 Total resources expended 13,647 2.059.809 2.073.456 23.543 1,858,153 1,881,696 Net gainsl(lossesi on investments 14 93,743 93,743 55.040 55,040 Net incominglloutgoingl resources before transfers 180,994 {214.915) 133.921) 144,680 {97,742} 46,938 Gross transfers be￿een funds (214.915) 214.915 (97.742) 97.742 Net movement in funds {33,921) (33.921) 46,938 46,938 Fund balances at 1 January 2024 2,995.199 2,995.199 2,948,261 2,948,261 Fund balances at 31 December 2024 2.961.278 2.961,278 2,995,199 2,995.199 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complie5 Wlth the requirements for an income and expenditure account under the Companies Act 2006. 11 PETWORTH COTTAGE NURSING HOME BALANCE SHEET AS AT 31 DECEMBER 2024 2024 2023 Notes Fixed assets Tangible assets Investment propertie5 Investments 12 15 13 1,650,679 285.000 886.342 1.684,900 260.000 830,455 2.822.021 2.775,355 Current assets Stocks Debtors Cash at bank and in hand 16 17 2.600 182.121 55.106 2,600 216,899 99.380 239.827 318.879 Creditors: amounls falling due within one year 19 (100.570) 199,0351 Nel currenl assets 139.257 219,844 Total assets less current liabilities 2,961.278 2,995,199 Incomo funds Unrestricted funds 2,961.278 2,995,199 2.961.278 2,995,199 The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2024, although an audit has been carried out under section 144 of the Charities Act 2011. No members have required the company to obtain an audit of its financial statements for Ihe year in question in accordance with section 476 of the CompaniesAcl 2006. The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of Ihe Act and for preparing financial statements which give a true and fair view of the slate of affairs of the company as at Ihe end of the financial year and of its incoming resources and application of resources. including ils income and expendilLJre. for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requiremenls of the Companies Act 2006 relaling to financial slatemenls, so far as applicable to the company. These financial statements have been prepared in accordance wilh the provisions applicable to companies subject to the 11 companies regime. The finan I statemenls were approved by the Trustees on ..2.3."...J.vLL zoz5 Mrc Hubbard. C Tru5teo Company Registration No. 03244113 PETWORTH COTTAGE NURSING HOME STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 Notes Cash flows from operating activities Cash absorbed by operations 22 (37, 5341 119.892) Investing activities PLJrchase of tangible fixed assets Proceeds from investment loans and receivables Proceeds on disposal of investments Interest received (49.0511 (32,1931 (12,143} 25,000 29.454 {10,329) 26,921 Net cash used in investing activities (6.740) 115,6011 Net cash used in financing activities Net decrease in cash and cash equivalents (44.274) 135,493} Cash and cash equivalents at beginning of year 99,380 134,873 Cash and cash equivalents at end of year 55,106 99,380 13- PETWORTH COTTAGE NURSING HOME NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policies Charity information Petworth Cottage Nursing Home is a private company limited by guarantee incorporated in England and Wales The registered office is Petworth Cottage Nursing Home. Fittleworth Road, Petworth, West Sussex, GU28 OHQ. 1.1 Accounting convention The financial statements 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 {FRS 1021 (effective 1 January 20191 and the CompaniesAct 2006. Petworth Cottage Nursing Home mee15 the definition of a public benefit entity under FRS102. The financial statements are prepared in sterling. which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded lo the nearesl £. The financial statements have been prepared under the historical cost convention. modified lo include inveslmenl properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. 1.2 Going concern At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company 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. 1.3 Charitable funds General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of their charitable objectives and which have not been designated for other purposes 1.4 Income Income is recognised when the charitable company is legally entitled lo it after any perforrllance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Patients, fees include all fees receivable for the year. Legacies are recognised on a case by case basis following the granting of probate and based on when the charity has been notified in writing of both the amount and the settlement date of the gift Donations are recognised when the charity has been notified in writing of both the amount and settiement date. Investment income is earned through holding assets for inveslment purposes such as shares and property Interest Income is recognised using the effective interest method and dividend and rent income is recognised as the charity's right lo receive payment is established. Grants, including government grants, are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt. its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. 14 PETWORTH COTTAGE NURSING HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policies (Continued) 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party. it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All cosls have been allocated to activities on a basis consistent with the use of the resource_ Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events, Expenditure on charitable activities is incurred on directly undertaking the activities which further Ihe Charity's objectives, as well as any associated support costs and governance costs Support costs are those costs incurred directly in support of expenditure on the objects of the Charity and include project management carried out at Headquarters. Govemance costs are those incurred In connection with administration of the Charity and compliance with constitutional and statutory requirements. All expenditure is inclusive of irrecoverable VAT 1.6 Tangible fixed assets Tangible fixed assets costing £100 or more are initially measured at cost and subsequently measured al cost or valuation, net of depreciation and any impairment losses. Tangible fixed assets are initially recogr)ised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated Impairment losses All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost_ Depreciation is recognised so as to write off the cost or valuation of assels less their residual values over their useful lives on the following bases.. Freehold land and buildings Plant and equipment Fixtures and fittings Motor vehicles 5: 10 or 20 years straight line Be￿een 10-33 % per annum on cost Between 10-500/0 per annum on cost 25 /0 per annum 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 net Incomellexpenditurel for the year. At each balance sheet date the Trustee directors review the carrying amounts of the Charity's tangible fixed assets to determine whether there is an Indication of impairment of those assets. If such an indication exists, the recoverable amount of the asset is estimated in order lo assess whether any impairment loss has arisen. The recoverable amount is the higher of fair value less costs to sell and value in use as determined by the trustee directors. If the recoverable amount of an asset is eslimated to be le5S than Its carrying amount, the carrying amount of the asset is reduced to its recoverable amount_ 1.7 Investment properties Investment properties are measured at fair value at each reporting date. 15 PETWORTH COTTAGE NURSING HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policies (Continued) 1.8 Fixed asset investments Fixed asset investments are initially recognised at their transaction cosl and subsequently measured al fair value at each reporting date. unless the value cannot be measured reliably in wh1ch case il Is m easure al cost less impairment. Gains and losses, whether realised or unrealised, are combined and presented as "Net gainslllossesl on investments in the Statement of Financial Activities" 1.9 Impairment of fixed assets At each reporting end dale, the charitable company reviews the carrying amounts of ils tangible assets to determine whether there is any indication Ihat those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment105s lif any) 1.10 Stocks Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Net realisable value is the eslimated selling price less all estimated costs of completion and costs to be incurred in marketing. selling and distribution. 1.11 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks. other short-term liquid investments with original maturities of three months or less. and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.12 Financial instruments The charitable company has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instruments Issues of FRS 102 to all of ils financial instruments. The charitable company only ha5 financial assets and financial liabilities of a kind that qualify as basic rinancial instruments. Basic financial instruments of the charity are initially recognised at transaction value and subsequently measured at their settlemenl value. 1.13 Taxation The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definilion of a charitable company for UK Corporation Tax purposes. 1.14 Employee benefits When employees have rendered service lo the Charity. short term employee benefits, to which the employees are entitled, are recognised at Ihe undiscounted amount expected lo be paid in exchange for that service. 1.15 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 1.16 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity. this is normally upon notification of the interest paid or payable by the Institution wth whom the funds are deposited. 16- PETWORTH COTTAGE NURSING HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Ac¢ounting policies (Continued) 1.17 Company status The Charity Is a company limiled by guarantee_ The members of the company are the Trustee directors named in the Trustees, report. In the event of the Charity being wound up. the liability In respect of the guarantee is limited lo £10 per member of the Charity Critical accounting estimates and judgements Critical accounting estimates and assumptions: In the application of the charitable company's accounting policies. the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors thal are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Critical areas of judgement: Expected useful life and residual value of freehold land and buildings Tangible fixed assets are depreciated over their expected useful economic lives after taking into account the estimated residual value of the asset where significant. The residual values and useful economic lives are reassessed annually and may vary depending on a number of factors such a5 future maintenance programmes, future market conditions and change in legislation. Fair value of investment properties Investmenl properties are measured at fair value at each reporting date. The fair value of investment properties is assessed by the Trustee directors with reference to current market values. Donations and legaci@s General Operating funds funds Total General funds Operating funds Total 2024 2024 2024 2023 2023 2023 Donations and gifts Government grants 71,444 5.000 6.329 76.444 6,329 86.262 86.262 7.044 7,044 71 444 11.329 82.773 86,262 7,044 93,306 Donations and gifts Donations and legacies Donations received via The Friends 23.777 5,000 28.777 24.246 24,246 47,667 47,667 62.016 62.016 71.444 5,000 76.444 86.262 86,262 17 PETWORTH COTTAGE NURSING HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Donations and legacies (Continued) Grants receivable for core activities Government grants 6.329 6,329 7,044 7.044 6,329 6.329 7,044 7,044 During the year, a total of £6,32912023 £7,044) was received in government grant5 These were received in relation to support for social service residenls. Charitable activitiès Patients. fees 2024 Patients. fees 2023 Sales within charitable activities 1,833,565 1,753,367 Investments General funds 2024 General funds 2023 Rental income Income from listed investments Interest receivat)le 9,673 18,644 1,137 9,646 15,924 1,351 29,454 26.921 Raising funds General fund5 2024 General funds 2023 ndraisin nd ublici Other fundraising costs 5,291 9,458 Investment mana ement 8,356 14,085 13.647 23,543 a) (N r En co in cw 17) o ryi In CKJ O LO ¢3) ￿ a) fQ r (Q ￿ CO ￿ UJ J) i O O ￿ ¢ CFtr CO ftr N Ln (O fi- a>ThJr tno)In ry) CQ ty Ln ¢J)m (oThJ O ￿ Ln ￿ o a) (N (3) m- O L) C CiLu>tt(J￿￿so u) (￿￿ i)w_ PETWORTH COTTAGE NURSING HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR fHE YEAR ENDED 31 DECEMBER 2024 Auditor's remuneration The analysis of auditor's remuneration is as follows. Fees payable to the charitable company's auditors and associates: 2024 2023 Audit of the annual accounts 4,895 4,750 other services to the charitable company Non-audit services provided to the charitable company 2,390 2,320 Total audit fees 7,285 7,070 Employees Number of employees The average monthly number of employees during the year was: 2024 Number 2023 Number 56 Employment costs 2024 2023 Vvages and salaries Social security costs Other pension costs 1,297,974 112.937 26,779 1,203,111 112,140 23,780 1.437,690 1.339,031 The key management personnel of the charity comprise the financial controller, the home manager and her deputy The total remuneration of key management personnel during the year was £180,075 {2023'. £180,031) The number of employees whose annual remuneration was £60,000 or more were.. 2024 Number 2023 Nurnber £70,001- £80,000 20_ PETWORTH COTTAGE NURSING HOME NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 10 Other Operating funds Restricted funds 2024 2023 Net loss on disposal of tangible fixed assets 4.978 3,108 4,976 3,108 11 Trustees None of the trustees lor any persons corlnected with them) received any remur]eration or benefit5 from the charitable company during the year (2023. £Nil)_ During the year ended 31 December 2024. no Trustee director expenses have been incurred (2023. £Nil) 12 Tangible fixed assets Freehold land and buildings Plant and Fixtures and Motor vehicles equipment litting5 Total Cost At 1 January 2024 Additions Disposals 1.637.862 27.199 {5.237) 16,650 581 260,600 21,271 (4,794) 42.835 1,957,947 49,051 110,0311 At 31 December 2024 1,659,824 17.231 277,077 42,835 1,996,967 Depreciation and impairment Al 1 January 2024 Depreciation cnarge(J in the year Eliminated in respect of disposals 127.503 33.101 (1.351} 1.033 3.331 118.092 37,760 (3.7031 26,416 4,106 273,044 78,298 (5,0541 At 31 December 2024 159,253 4.364 152.149 30,522 346,288 Carrying amount At 31 December 2024 1.500,571 12.867 124,928 12,313 1,650,679 At 31 December 2023 1.510.359 15.617 142,5Q6 16,418 1,684,900 All of the tangible fixed assets of the Charity are used directly for charitable purposes 21 PETWORTH COTTAGE NURSING HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 13 Fixed asset investments Listed investments Cost or valuation At 1 January 2024 Valuation changes Dividendslcharges elc Disposals 830,455 68,743 12,144 125,000) At 31 December 2024 886,342 Carrying amount At 31 December 2024 886,342 At 31 December 2023 830,455 Fixed asset investments revalued The historical cost of fixed asset investments at 31 December 2024 was £813,520 (2023: £813,520> The fair value of listed investment5 is determined by the reference to market value. The listed investments are wholly comprised of an investment portfolio managed by Quilter Cheviot. 14 Net gainslllossesl on investments Unrestricted funds Unrestricted funds 2024 2023 Revaluation of investments 93.743 55,040 15 Investment property 2024 Fair value Al 1 January 2024 Nel gains or losses through fair value adjuslmenls 260.000 25.000 At 31 December 2024 285,000 The 2024 valuation was made by the Trustee directors. on an open market value for existing use basis. The Trustee directors consider that the open market value equates for fair value. -22- PETWORTH COTTAGE NURSING HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR fHE YEAR ENDED 31 DECEMBER 2024 15 Investment property (Continued) 2024 2023 Freehold 285.000 260.000 16 Stocks 2024 2023 Medical supplies and food 2,600 2,600 17 Debtors 2024 2023 Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income 153,781 1,383 26,957 163,407 1,276 52,216 182.121 216,899 18 Contingent Assets The charitable company has been legally gifted 100/0 of an estate. the sum of which is dependant on the sale of property and is likely to be in the region of £64.000 The inflow of economic benefits has been c£)nsidered as probable. however, the expected receipt date of the legacy is unknown. The charitable company has further been gifted a bequest of circa £200k. £180k of which was received in October 2022. The residual inflow of economic benefits Icirca £20kl from the bequest has been cor)sidered as probable. however, the expected receipt date of the remaining legacy is unknown. The charitable company has additionally been gifted $250.000. The inflow of economic benefits has been considered as probable, however, the expected receipt dale of the legacy is unknown. 23- PETWORTH COTTAGE NURSING HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 19 Creditors.. amounts falling due within one year 2024 2023 Notes Other taxation and social security Deferred income Trade creditors Other creditors Accruals 36,212 3.652 32,628 5,347 22,731 34.032 1,311 36.366 5,508 21,818 20 100.570 99,035 Income is deferred in respect of resident fees received in advance and income for fundraising events received in advance. 20 Deferred income 2024 2023 Other deferred income 3,652 1,311 Deferred income is included in the financial stslements as follows.. Balance at 1 January 2024.. Released in year Income deferred in year Balance at 31 December 2024 1311 (1,311) 3,652 21 Analysis of net assets between funds Unrestricted Restricted funds funds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Fund balances at 31 December 2024 are represented by Tangible assets Investment properties Investments Current assetsl{liabililies) 1,650,679 285.000 886,342 139,257 1,650.679 285.000 886.342 139.257 1,684,900 260.000 830,455 219.844 1,684,900 260,000 830,455 219,844 2,961,278 2.961.278 2.995.199 2,995,199 24- PETWORTH COTTAGE NURSING HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 22 Cash generated from operations 2024 2023 (Deficitllsurpus for the year (33.921) 46,938 Adjustments for.. Investment income recognised in statement of financial activities Loss on disposal of tangible fixed assets Fair value gains and losses on Investment5 Depreciation and impairment of tangible fixed assets (29,454) 4.976 (93.7431 78,299 126,9211 3.108 155.0401 80,247 Movements in working capital.. Decreasel(increasel in debtors (Decrease} in creditors Increasel{decrease} in deferred incorne 34,774 1806) 2,341 (34,8421 (32,2261 11,1561 Cash absorbed by operations {37,5341 (19,8921 23 Analysis of changes in net funds At 1 January 2024 Cash flows At 31 Dècember 2024 Cash at bank and in hand 99.380 144,274) 55.106 99.380 144.274) 55,106 24 Retirement benefit schemes Defined contribution schemes The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The charge to profit or loss in respect of defined contribution schemes was £26,77912023 £23,780). Contributions totalling £5.714 were payable to the fund at the balance sheet date (2023. £5,248) 25 Related party transactions During the year the Chanty incurred property managemenl fees of £1,51012023' £1.1541 from Barrington and Co, of which T Barrington. trustee, is a director. At the balance sheet date the amount due to Barrington and Co was £Nil (2023. £Nill. There were no other related party transaction that require disclosure in 2024. 26 Controlling party The charitable company is controlled by its trustee directors. 25- 4776 001 Final Audit Report 2025-07-23 Created.. 2025-07-23 By.. Ajaina Cryer {alaina@anovagroup.(x>.uk) Status.. Signed Transaction ID.. CBJCHBCAABM1PbOvGnv41RCmpvBykrdK3Tlmp7rEo "4776_001" History Documenl created by Aaina Cryer {alaina@anovagroup.co.uk) 2025-07-23- 2'.46'.52 PM GMT Document emailed to Matthew Cleghom (matt@anovagroup.co.uk) for signature 202M7-23- 2.'46.'59 PM GMT Email viewed by Matthew Cleghom (matt@anovagroup.co.uk) 202M7-23- 2.'48.'29 PM GMT Document e-signed by Matthew Cleghom (matt@anovagroup.co.uk) Signature Date: 202M7-23- 2'.49:07 PM GMT- Time sour￿.. server Agreement completed. 2025-07-23- 2..49..07 PM GMT LANOVA 1-- CHAITEREOACCOUNTANTS robat Sign