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2022-12-31-accounts

Charity registration number: 1062023

JAH-JIREH CHARITY HOMES

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2022

JAH-JIREH CHARITY HOMES

CONTENTS

Page
Charity reference and administrative details 1
Trustees' annual report 2
Independent auditor's report to the trustees 7
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14

The following pages do not form part of the financial statements: Detailed statement of financial activities 26

JAH-JIREH CHARITY HOMES

CHARITY REFERENCE AND ADMINISTRATIVE DETAILS

Registered charity name Jah-Jireh Charity Homes
Charity registration number 1062023
Trustees P J Cutting
R Jones
C Stringer
J Stacey - Chairman
R Telles
C Bland
G Cockshott
L Chadwick
M Donnelly (as from 03/03/2022)
Chief executive officer M Donnelly
Registered office 317 Lytham Road
Warton
Preston
PR4 1TE
Auditor MHA Moore and Smalley
Chartered Accountants
& Statutory Auditors
Richard House
Winckley Square
Preston
PR1 3HP
Bankers National Westminster Bank plc
13 Whitegate Drive
Blackpool
FY3 9AG
Solicitors Roland Robinsons and Fentons
85-89 Adelaide Street
Blackpool
FY1 4LX

Page 1

JAH-JIREH CHARITY HOMES

TRUSTEES' ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2022

The trustees present their report and the audited financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

Structure, governance and management

Governing document

Jah-Jireh Charity Homes is governed by a Trust Deed dated 1 April 1997 as amended by a supplemental deed dated 25 February 2005. The charity is registered under the name Jah-Jireh Charity Homes with the Charity Commission (charity number 1062023).

Recruitment, appointment, induction and training of trustees

The minimum number of trustees shall be four with no maximum number. The trustees must be a respected member of a Congregation of Jehovah's Witnesses and shall remain so and be in good standing. Trustees are appointed by a resolution of a meeting of the trustees. A memorandum of his appointment shall be signed by the persons present at such meeting and every new trustee, before acting in the trust of the deed must sign the minute book for which provision is made, a declaration of acceptance and of willingness to act in the trusts declared in the trust deed.

Whilst it is likely that our trustee appointments will be current or previous trustees of another charity and therefore have relevant experience, we nonetheless share with them the Charity Commission Trustee Welcome Pack, a copy of the Trust Deed, the current charity registration with the Charity Commission, copies of previous meeting minutes and background to the work of the charity. Further training will be considered as it is identified. The Trustees hold a range of professional qualifications including in accountancy, law and civil engineering.

Organisational structure

The trustees who served during the year are shown on page 1. The trustees meet at least twice a year. In addition, there are various committees that support the trustees. The current committees are Operations, Finance, Buildings, Legal, Media and International. The committees are made up of trustees and some head office staff. Day to day decisions are made by the Executive Committee and are assisted by staff at the head office and homes of the charity.

Related parties

The trustees provide advice and assistance to Jehovah's Witness communities internationally and at home, including direct visits to explain and replicate the Jah-Jireh Charity Homes experience.

Page 2

JAH-JIREH CHARITY HOMES

TRUSTEES' ANNUAL REPORT (CONTINUED)

YEAR ENDED 31 DECEMBER 2022

Risk management

The trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen the risks.

Remuneration of key management personnel

The charity considers its key management personnel to comprise of an Executive Committee (consisting of Chief Executive Officer, Policy and Compliance Manager and Head of Finance) and the Home management of each location (consisting of the Registered Care Manager and the Business Manager). Remuneration of the Executive Committee is approved by a sub-committee of the Trustees. The Home management is set in reference with the market rate for the specific role and is reviewed annually by the Executive Committee.

Objectives and activities

Objects

The objects of the charity are:

Aims

The charity aims to continue its work in accordance with its charitable objects, so long as funding is available. It is looking to develop its existing portfolio of care homes as well as further development of land which is owned by the charity.

Objectives for the year

Each year the trustees review our objectives and activities to ensure they continue to reflect our aims. In carrying out this review the trustees have considered the Charity Commission’s general guidance on public benefit and in particular its supplementary public guidance on public benefit and fee charging and the advancement of religion for the public benefit.

The trustees consider the beliefs and practises of the Christian religion, as practised by Jehovah’s Witnesses, assist in the advancement of religion for the purposes of charity law, and promote morals and ethics of the Christian faith which can have a positive impact on society as a whole.

The charity's main objectives for the year were to:-

Page 3

JAH-JIREH CHARITY HOMES

TRUSTEES' ANNUAL REPORT (CONTINUED)

YEAR ENDED 31 DECEMBER 2022

Significant activities for achieving objectives

The charity is continuing to pursue the above objectives through actively seeking voluntary donation and maximising fee income through various initiatives. In addition, the introduction of technology to care planning and delivery, medications management, staff and agency rotas and a range of other administrative functions. Enhancements to support staff through an improved training and audit provision and provider oversight.

Volunteers

Due to the increasing demands on the charity, a program has been put in place to enable those who are able to volunteer their time to assist the homes. This can include assisting with small maintenance tasks at the homes or visiting the residents. All volunteers are given appropriate training and are not remunerated.

Achievements and performance

In view of the current economic climate and the pandemic, the trustees are pleased to have maintained occupancy levels above industry averages during the Covid pandemic.

In December 2022, we successfully achieved government registration as an Overseas Sponsor. This will help in the recruitment of more full-time staff.

Financial review

The statement of financial activities on page 11 (SOFA) shows net incoming resources of £34,424 (2021: £152,332). Occupancy of homes averaged 93.1% (2021: 87.7%).

During 2022, the income has increased due to (1) increased occupancy (2) a sizeable legacy receipt (3) an increase in Merthyr receipts partly due to Local Authority fee uplifts of 20%. The Government concluded their ‘Infection Control Fund’ for the English Homes at the end of March 2022 and the Welsh Government paid out £1,498 per care staff member under their ‘Care Worker Support’ payment.

A significant impact on expenditure was in relation to higher than expected agency requirements to cover staffing shortfalls. A number of measures have been introduced to reduce this area of expenditure.

Reserves policy

It is the policy of the charity to maintain unrestricted funds to cover any emergency repairs which may arise from time to time, together with utilising these with a view to developing additional facilities. The charity continues to build up reserves to provide subsidised places to those service users who cannot afford our full fees and have been refused funding from local authorities .

The amount of cash reserves held at the year ended 31 December 2022 is £2,365,991, which is held for the reasons stated above. The cash reserves are equivalent to just about five months expenditure, which the trustees consider to be reasonable for continued operations.

The total amount of funds held includes designated funds of £160,764. The designated funds comprise funds received towards the proposed new home in the South of England.

Page 4

JAH-JIREH CHARITY HOMES

TRUSTEES' ANNUAL REPORT (CONTINUED)

YEAR ENDED 31 DECEMBER 2022

We also received Local Authority grants during the year which are treated as ‘Restricted Funds’, and carried forward balances for a legacy for the Merthyr home and committed LA grants. We still hold £62,502 relating to grants received from Local Authorities. This relates to the monies designated for the safe visiting facilities that were put on hold in 2021 and planned to be completed in 2023.

Principal funding sources

The charity's principal funding sources continue to be from local authority funding, residents' charges and voluntary donations.

With regard to fundraising no professional fundraising organisations are used in any of our activities. We do not solicit funds, all donations are voluntary. Payment methods offered include; card payment via Paypal online and over the telephone using a third party service; payroll giving; direct payment from banks and cash and cheques deposited in donation boxes within our homes, or sent to head office.

Plans for future periods

The charity plans to continue to provide a good standard of care, remunerate its staff appropriately and develop their skills as well as continuing to plan to develop other homes and sheltered accommodation/assisted living if this continues to be practicable. The charity plans to continue providing respite and charitably funded care beds through donated income. In addition, the Trustees will continue to assist and support other members of the international Jehovah’s Witness community where and when such support is required. The cost of such support will remain entirely at the discretion of the Trustees.

The Charity plans to set up a Charitable Incorporated Organisation (CIO) with a current planned transfer date of assets and operational aspects of the current charitable trust on 31[st] December 2023.

Plans for Handling the COVID Pandemic

We have specific policies and procedures in place to manage infection control of the virus. The key risk from a financial perspective relate to a loss of income due to a higher number of deaths of residents in the year and potential for increased costs has significantly reduced. All staff and the majority of residents have been vaccinations and this should reduce the risk on occupancy. We continue to maintain a waiting list for new residents which is currently in excess of 35.

We trialled re-opening Respite during the year and decided to re-open some of the Homes to Respite early in 2023.

We are confident in maintaining good levels of occupancy and being able to manage the potential increased costs following the Governments withdrawal of PPE support. The situation is being constantly monitored and reported to management weekly, monthly meetings are being held with the managers.

Page 5

JAH-JIREH CHARITY HOMES

TRUSTEES' ANNUAL REPORT (CONTINUED)

YEAR ENDED 31 DECEMBER 2022

Trustees' responsibilities

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.

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

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

A resolution to re-appoint MHA Moore and Smalley as auditor for the ensuing year will be proposed at the annual trustees' meeting in accordance with the Charities Act 2011.

On behalf of the board ……………………………..

J Stacey - Chairman of the Board of Trustees

Page 6

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES

OF

JAH-JIREH CHARITY HOMES

Opinion

We have audited the financial statements of Jah-Jireh Charity Homes (the ‘charity’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Emphasis of matter – financial statements prepared on a basis other than going concern

We draw attention to note 19 to the financial statements which explains that trustees plan, subject to finalising an impact assessment, to transfer the whole of the charitable trust (the aims and objectives in the trust document, the charitable trust assets and operations) into a ‘Charitable Incorporated Organisation (CIO)’. The currently planned date is 31[st] December 2023 however this may be changed to a later date following the impact assessment, and therefore do not consider it to be appropriate to adopt the going concern basis in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described in note 1.

Our opinion is not modified in respect of this matter.

Page 7

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES

OF

JAH-JIREH CHARITY HOMES

Other information

The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to 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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Page 8

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES

OF

JAH-JIREH CHARITY HOMES

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:

We identified the following areas as those most likely to have a material impact on the financial statements: Charities Act, Care Quality Commission (CQC) Regulations, Health and Safety at Work Act 1974 and Food Safety Act 1990.

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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the FRC's website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/descriptionof-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report.

Page 9

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES

OF

JAH-JIREH CHARITY HOMES

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 state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

MHA Moore and Smalley Statutory Auditor

Richard House Winckley Square Preston PR1 3HP 10/10/2023

……………………….…

MHA Moore and Smalley is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Page 10

JAH-JIREH CHARITY HOMES

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

Note
Income and endowments from:
Donations and legacies
2
Charitable activities
Rents received
Residents charges
Investments
Interest – savings accounts
Other income
Gain on disposal of tangible
fixed asset held for the charity’s
own use
Covid payments from Councils
Infection Control Fund
CJRS
Wales Care Worker Support
Total income and endowments
Expenditure on:
Charitable activities
3
Total expenditure
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Un-
restricted
funds
£
177,266
33,162
5,231,682
21,659
-
2,420
-
-
-
5,466,189
5,394,021
5,394,021
72,168
-
72,168
5,734,791
5,806,959		 Designated
Funds
£
1,854
-
-
-
-
-
-
-
-
1,854
-
-
1,854
-
1,854
158,910
160,764		 Restricted
Funds
£
-
-
-
-
-
-
68,000
-
51,983
119,983
159,581
159,581
(39,598)
-
(39,598)
102,100
62,502		 Total funds
Total
funds
2022
2021
£
£
179,120
115,322
33,162
36,147
5,231,682
4,464,888
21,659
10,158
-
267,983
2,420
53,274
68,000
217,005
-
21,090
51,983
44,087
5,588,026
5,229,954
5,553,602
5,077,722
5,553,602
5,077,722
34,424
152,232
-
-
34,424
152,232
5,995,801
5,843,569
6,030,225
5,995,801		 Total funds
Total
funds
2022
2021
£
£
179,120
115,322
33,162
36,147
5,231,682
4,464,888
21,659
10,158
-
267,983
2,420
53,274
68,000
217,005
-
21,090
51,983
44,087
5,588,026
5,229,954
5,553,602
5,077,722
5,553,602
5,077,722
34,424
152,232
-
-
34,424
152,232
5,995,801
5,843,569
6,030,225
5,995,801
5,229,954
5,077,722
5,077,722
152,232
-
152,232
5,843,569
5,995,801

All income and expenditure derive from continuing activities.

All gains and losses recognised in each period are included above.

The notes on pages 14 to 25 form part of these financial statements.

Page 11

JAH-JIREH CHARITY HOMES

BALANCE SHEET

31 DECEMBER 2022

Note
Fixed assets


Tangible assets
10

Current assets

Stocks
11
Debtors
12
Saving accounts
Cash at bank and in hand
Creditors: amounts falling due
within one year
13

Net current assets


Total assets less current liabilities


Creditors: amounts falling due

after more than one year
14

Net assets



Charity Funds


Unrestricted funds

Designated funds

Restricted funds


Total charity funds
16
 £
1,950
294,981
2,012,802
353,189
2,662,922
(721,141)		 2022
£
6,879,600




1,941,781

8,821,381


(2,791,156)

6,030,225



5,806,959
160,764
62,502

6,030,225		 £
1,950
164,449
2,003,678
548,944
2,719,021
(3,695,616)		 2021
£
6,972,396
(976,595)
5,995,801
-
5,995,801
5,734,791
158,910
102,100
5,995,801

These financial statements were approved and authorised for issue by the board of trustees on …………………………. 05/10/2023

Signed on behalf of the board of trustees

………………………………………

J Stacey – Chairman

Page 12

JAH-JIREH CHARITY HOMES

STATEMENT OF CASH FLOWS

YEAR ENDED 31 DECEMBER 2022

Reconciliation of net income to net cash flow
from operating activities
Net income for the year
Depreciation of tangible fixed assets
Surplus on sale of tangible fixed assets
(Increase) / decrease in debtors
Increase in creditors
Net cash flow from operating activities
Cash flow from investing activities
Receipts from sale of tangible fixed assets
Payments to acquire tangible fixed assets
Net cash flow from investing activities
Cash flow from financing activities
Proceeds of new long-term loan
Repayment of long-term loans
Net cash flow from financing activities
Net (decrease) / increase in cash and cash
equivalents
Cash and cash equivalents at 1 Jan
Cash and cash equivalents at 31 Dec
Cash and cash equivalents consists of:
Savings accounts
Cash at bank and in hand
Cash and cash equivalents at 31 Dec		 £
-
(145,632)
3,100,000
(3,378,581)		 2022
£
34,424
238,428
-
(130,532)
95,262
237,582



(145,632)

(278,581)
(186,631)
2,552,622
2,365,991


2,012,802
353,189
2,365,991		 £
688,558
(61,542)
-
(273,937)
 2021
£
152,232
219,293
(267,983)
22,375
90,065
215,982
627,016
(273,937)
569,061
1,983,561
2,552,622
2,003,678
548,944
2,552,622

Page 13

JAH-JIREH CHARITY HOMES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

1 Summary of significant accounting policies

General information and basis of preparation

Jah-Jireh Charity Homes is a registered charity in the United Kingdom. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are detailed on page 3 of these financial statements.

The charity constitutes a public benefit entity as defined by FRS102. 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102), the Charities Act 2011 and UK Generally Accepted Practice.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the 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 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

As explained in note 19 ‘Events after the end of the period’ to the financial statements the charity may, subject to finalising an impact assessment, transfer the whole of the charitable trust into a ‘Charitable Incorporated Organisation (CIO) and therefore the current unincorporated charity financial statements have been prepared on a basis other than that of the going concern basis. Since there are no intentions to sell any properties and the intention is to transfer to the new CIO, they have been left as classified within fixed assets. Similarly, as the intention is to transfer all long-term bank loans to the new CIO these have also continued to be classified as long-term liabilities.

The Trustees still have regard to the going concern status of the charity and regardless of the vehicle used in the future, they do not consider there to be a material uncertainty at this time, and there is a reasonable expectation that the Charity has adequate resources to continue for the foreseeable future.

The financial statements are prepared under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Page 14

JAH-JIREH CHARITY HOMES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

Wherever possible residents are charged a full fee, subject to the availability of local authority funding and the use of charitable donations where residents and their families are not able to afford fees.

Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Page 15

JAH-JIREH CHARITY HOMES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. Premises overheads have been allocated on an insert detail basis and other overheads have been allocated on an insert detail basis.

The analysis of these costs is included in note 4.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended:

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

 Freehold land and buildings - Nil on land, 2% of cost of buildings  Leasehold land and buildings - 2% on cost  Plant, equipment and fixtures - 20% - 33% on cost per annum  Motor vehicles - 25% of reducing balance

Investments

Current asset investments are short term highly liquid investments and are held at fair value. These include cash on deposit and cash equivalents with a maturity of less than one year.

Stocks

Stocks consist of consumables and are stated at the lower of cost and net realisable value.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Concessionary loans

Concessionary loans include those receivable / payable / receivable and payable to a third party / parties which are interest free or below market interest rates and are made to advance charitable purposes. Where the loan is repayable on demand within one year, the loan is measured at cost, less impairment. Where the loan is repayable after more than one year, the loan is initially measured at fair value and subsequently measured at amortised cost using the effective interest rate method, less impairment.

Page 16

JAH-JIREH CHARITY HOMES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Leases

Rentals payable and receivable under operating leases are charged to the SoFA on a straight line basis over the period of the lease.

Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Tax

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 definition of a charity for UK corporation tax purposes.

Page 17

JAH-JIREH CHARITY HOMES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

2 Income from donations and legacies

Gifts
Legacies
Gifts
Legacies		 Unrestricted
funds
75,117
102,149
177,266
Unrestricted
funds
100,300
12,923
113,223		 Designated
funds
1,854
-
1,854
Designated
funds
2,099
-
2,099		 Restricted
funds
-
-
-
Restricted
funds
-
-
-		 Total 2022
76,971
102,149
179,120
Total 2021
102,399
12,923
115,322

3 Analysis of expenditure on charitable activities

Residential home care costs - 2022
Residential home care costs - 2021		 Staff Costs
3,021,130
3,052,182		 Depreciation
238,428
219,293		 Support costs
Total funds
2,294,044
5,553,602
1,806,247
5,077,722

Expenditure on charitable activities was £5,553,602 (2021: £5,077,722) of which £5,394,021 (2021: £4,768,657) was attributable to general unrestricted funds, £nil (2021: £1,163) was attributable to designated funds and £159,581 (2021: £307,902) was attributable to restricted funds.

Page 18

JAH-JIREH CHARITY HOMES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

4 Allocation of support costs

Governance
Finance
Residents costs
Property costs
Office costs		 Residential
home care
costs 2022
£
27,362
138,180
1,405,983
570,784
151,735
2,294,044		 Total funds
2022
£
27,362
138,180
1,405,983
570,784
151,735
2,294,044		 Residential
home care
costs 2021
£
17,989
113,255
1,021,808
555,191
98,004
1,806,247		 Total funds
2021
£
17,989
113,255
1,021,808
555,191
98,004
1,806,247

5 Governance costs

Audit fees
Accountancy and advisory fees
Professional indemnity insurance
Board of Trustees’ meeting expenses		 2022
£
15,025
4,468
6,794
1,075
27,362		 2021
£
12,210
2,005
3,774
-
17,989

6 Net income for the year

Net income is stated after charging / (crediting):

Depreciation of tangible fixed assets
Gain on disposal of tangible fixed asset held for the charity’s own use
Operating lease rentals
 2022
2021
£
£
238,428
219,293
-
(267,983)
39,520
32,649

7 Auditor’s remuneration

The auditors' remuneration of £19,493 (2021: £14,215) comprised £15,025 relating to audit services (2021: £12,210) and £4,468 (2021: £2,005) relating to accountancy and other services.

Page 19

JAH-JIREH CHARITY HOMES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

8 Trustees’ and key management personnel remuneration and expenses

During the year Mr M Donnelly, having become a Trustee on 3[rd] March 2022 received remuneration and benefits in kind totalling £33,658 (2021: not a Trustee). The remuneration paid to Mr M Donnelly was for services as a chief executive officer and not as a trustee. Additionally, amounts totalling £20,272 (2021: not a Trustee) were paid to family members of Mr M Donnelly. During the year Mr J Stacey received remuneration and benefits in kind totalling £12,480 (2021: £12,480). Mr E W Delaney resigned as Trustee during the prior year and received remuneration and benefits in kind during that year totalling £32,240.

Legal authority to make such payments to Trustees is contained in the charity’s Trust Deed.

The total amount of employee benefits received by key management personnel is £337,972 (2021: £379,810). The charity considers its key management personnel comprise of the chief executive officer, chair of trustees/property asset manager, finance manager, training & policy manager, and the business and care managers from each of the four homes.

None of the trustees are accruing pension arrangements (2021: none).

The reimbursement of trustees’ expenses was as follows:

Travel
Subsistence
Accommodation
Other		 2022
No.
4
1
1
-
6		 2021
No.
2
1
-
-
3		 2022
£
994
127
150
-
1,271		 2021
£
379
71
-
-
450

Included above are £nil (2021: £nil) which have been paid directly to third parties.

9 Staff costs and employee benefits

The average monthly number of employees during the year was as follows:

Charitable activities 2022
No.
177
177		 2021
No.
174
174

During the year, there was an average of 41 full-time employees (2021: 37), 136 part-time employees (2021: 137) and 116 full-time equivalent employees (2021: 123).

Page 20

JAH-JIREH CHARITY HOMES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

The total staff costs and employees benefits were as follows:

2022 2021
£ £
Wages and salaries 2,781,943 2,834,821
Social security 194,985 175,624
Defined contribution pension costs 44,202
 41,737
3,021,130
 3,052,182
No employees received total employee benefits (excluding employer pension costs) of more than
£60,000 in either the current or previous year.
Tangible fixed assets
Long
Freehold Leasehold Plant
land and land & equipment Motor
buildings buildings and fixtures vehicles Total
Cost
At 1 January 2022 9,443,015 40,000 1,394,027 45,740 10,922,782
Additions - - 145,632 - 145,632
Disposals - - - - -
At 31 December 2022 9,443,015 40,000 1,539,659 45,740 11,068,414
Depreciation
At 1 January 2022 2,661,634 13,733 1,238,644 36,375 3,950,386
Charge for the year 153,789 640 81,658 2,341 238,428
On disposals - - - - -
At 31 December 2022 2,815,423 14,373 1,320,302 38,716 4,188,814
Net book value
At 31 December 2022 6,627,592 25,627 219,357 7,024 6,879,600
At 31 December 2021 6,781,381 26,267 155,383 9,365 6,972,396

No employees received total employee benefits (excluding employer pension costs) of more than £60,000 in either the current or previous year.

10 Tangible fixed assets

All freehold and leasehold land/ buildings, together with plant, equipment, fixtures and motor vehicles are held as functional assets.

The trustees are confident, without having a professional valuation carried out, that the true value of the properties detailed in the financial statements is greater than the value stated in the financial statements, and use the insured rebuilding cost as a basis for this confidence.

Included in tangible fixed assets is land totalling £1,761,551 (2021: £1,761,551) which is not depreciated. Tangible fixed assets with a net book value of £6,653,219 (2021: £6,807,649) have been pledged as security for liabilities of the charity. The assets have restricted title.

The carrying value of the above fixed assets is not impacted by the proposed transfer of the whole of the charitable trust (including its charitable trust assets) into a ‘Charitable Incorporated Organisation (CIO) as detailed in note 19 ‘Events after the end of the period’ of the financial statements, and since there are no intentions to sell any properties, they can be left to be classified within fixed assets.

Page 21

JAH-JIREH CHARITY HOMES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

11
Stocks
Finished goods
All stock held is for the provision of residential home care.
12
Debtors
Trade debtors
Other debtors
Prepayments and accrued income
13
Creditors: Amounts falling due within one year
Trade creditors
Other tax and social security
Accruals and deferred income
Concessionary loans payable
Other creditors
Fees received in advance
Bank loans		 2022
2021
£
£
1,950
1,950
2022
2021
£
£
122,254
78,860
37,668
15,236
135,059
70,353
294,981
164,449
2022
2021
£
£
199,436
125,227
34,995
22,666
158,967
169,215
2,000
2,000
2,305
1,992
83,526
64,867
239,912
3,309,649
721,141
3,695,616

Bank loans totalling £3,031,068 (2021: £3,309,649) are secured by a legal charge over certain freehold property of the charity.

The bank loan is currently repayable in monthly instalments over 10 years, due to be completely repaid in September 2032. The rate of interest on the loan is fixed at 5.74%.

The Concessionary loan payable totals £2,000 which is a single unsecured loan repayable on demand with no on-going repayable element. All concessionary loans payable are interest free.

The presentation of the bank loans within creditors: amounts falling due after more than one year in note 14 to the financial statements is not impacted by the proposed transfer of the whole of the charitable trust (including its charitable trust assets) into a ‘Charitable Incorporated Organisation (CIO) as detailed in note 19 ‘Events after the end of the period’ of the financial statements, since the intention is to transfer all long-term bank loans to the new CIO, and hence they have continued to be classified as long-term liabilities.

Page 22

JAH-JIREH CHARITY HOMES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

14 Creditors: Amounts falling due after more than one year

Creditors: Amounts falling due after more than one year
Bank loans and overdrafts
Due within one to two years
Due within two to five years
Due after more than five years		 2022
£
253,931
861,281
1,675,944
2,791,156		 2021
£
-
-
-
-

15 Operating leases

Total future minimum lease payments under non-cancellable operating leases are as follows:

Not later than one year
Later than one year and not later than five years
Later than five years		 2022
£
24,697
97,532
38,085
160,314		 2021
£
23,923
80,137
45,115
149,175

16 Fund reconciliation

Unrestricted funds
Designated funds
South of England
Project
Restricted Funds
Infection Control Fund
Merthyr Legacy
Wales Care Workers
Total funds		 Balance at
1 Jan 2022
£
5,734,791
158,910
62,502
39,598
-
5,995,801		 Incoming
resources
£
5,466,189
1,854
68,000
-
51,983
5,588,026		 Resources
expended
£
(5,394,021)
-
(68,000)
(39,598)
(51,983)
(5,553,602)		 Transfers
Balance at
31 Dec 2022
£
£
-
5,806,959
-
160,764
-
62,502
-
-
-
-
-
6,030,225

Designated funds

The South of England project funds represent funds received towards the proposed new home in the South of England. The fund has an over and an under subscription clause. This means that any funds over-subscribed can be put to the general use of the charity and any funds under-subscribed, which means the project cannot therefore proceed, can also be put to the general use of the charity, should this become necessary.

Page 23

JAH-JIREH CHARITY HOMES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

Restricted funds

Infection Control Fund represents money given to the charity by Local Authorities for specific costs related to additional infection control activity related to the COVID pandemic.

Merthyr legacy funds represent a restricted legacy for payment towards the unspecified costs relating to the running of the Merthyr home.

Wales Care Workers funds represent money given by the Welsh Government to recognise the contribution of care workers during the COVID pandemic.

Unrestricted funds
Designated funds
South
of
England
Project
Video/Website Work
Restricted Funds
Infection Control Fund
Merthyr Legacy
Wales Care Workers
Total funds		 Balance at
1 Jan 2021
£
5,536,685
156,811
1,163
62,502
86,408
5,843,569		 Incoming
resources
£
4,966,763
2,099
-
217,005
-
44,087
5,229,954		 Resources
expended
£
(4,768,657)
-
(1,163)
(217,005)
(46,810)
(44,087)
(5,077,722)		 Transfers
Balance at
31 Dec 2021
£
£
-
5,734,791
-
-
-
-
-
158,910
-
62,502
39,598
-
-
5,995,801

17 Analysis of net assets (between unrestricted, designated and restricted funds)

Unrestricted funds
Designated funds
Restricted funds		 Tangible
fixed assets
£
6,879,600
-
-		 Other net
assets
2022
Total
£
£
(1,072,641)
5,806,959
160,764
160,764
62,502
62,502
6,879,600 (849,375)
6,030,225
Unrestricted funds
Designated funds
Restricted funds		 Tangible
fixed assets
£
6,972,396
-
-		 Other net
assets
2021
Total
£
£
(1,237,605)
5,734,791
158,910
158,910
102,100
102,100
6,972,396 (976,595)
5,995,801

Page 24

JAH-JIREH CHARITY HOMES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

18 Pension and other post-retirement benefits

The charity operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £44,202 (2021: £41,737).

19 Events after the end of the period

The charity is not aware of any legacy or other events after the period.

The charity plan, subject to finalising an impact assessment, to transfer the whole of the charitable trust (the aims and objectives in the trust document, the charitable trust assets and operations) into a ‘Charitable Incorporated Organisation (CIO)’. The currently planned date is 31st December 2023 however this may be changed to a later date following the impact assessment.

20 Related party transactions

Trustees are employed by the charity, their remuneration and benefits in kind are included in note 8.

Mr E W Delaney resigned as Trustee during the prior year and received amounts for the use of 317 Lytham Road, Warton, as an administration office totalling £7,280 to rent these premises on a mutually agreed ongoing basis.

During the year the charity received cash donations totalling £nil (2021: £240) from trustees.

21 Capital Commitments

At the 31 December 2022, there are no capital commitments.

22 Non Cash Donations

At the 31 December 2022, the charity had no non-cash donations to declare.

23 Volunteers

At the 31 December 2022, there are 2 regular volunteers who have covered roles that may have featured on the payroll, they cover the areas of media service and IT support, we estimate the value of the time spent to be in the region of £19,203.

Page 25

JAH-JIREH CHARITY HOMES

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2022

Income and endowments from:
Donations and legacies
Charitable activities
Rents received
Residents charges
Investments
Interest – savings accounts
Other Income
Gain on disposal of tangible fixed asset held for
the charity’s own use
Covid payments from Councils
Infection Control Fund
Coronavirus Job Retention Scheme
Wales Care Worker Support
Total income and endowments
Expenditure on:
Charitable activities
Wages and salaries
Agency costs
Rent
Rates, insurance and water
Heat and light
Repairs and renewals
Food
Nursing, cleaning and household supplies
Stationery, postage and telephone
Motor and travel expenses
Bank charges
Bank loan interest
Bank loan extension
Sundry expenses
Training costs
Legal and professional fees
Criminal records applications
Registration fees
Depreciation:
Buildings
Plant and fixtures
Motor vehicles
Governance costs
Audit fees
Accountancy and advisory fees
Professional indemnity insurance
Board of trustees meeting expenses
Total expenditure
Net income for the year		 £
3,021,130
860,865
12,635
151,477
218,744
206,653
294,306
190,245
68,011
40,084
7,075
129,937
1,168
35,637
15,232
10,574
5,192
18,847
154,429
81,658
2,341		 2022
£
179,120

33,162
5,231,682

21,659

-
2,420
68,000
-
51,983		 £
3,052,182
490,299
10,286
120,876
195,873
241,891
256,512
198,298
41,623
47,683
6,834
106,421
-
23,219
10,965
15,670
2,961
18,847
154,429
61,633
3,231		 2021
£
115,322
36,147
4,464,888
10,158
267,983
53,274
217,005
21,090
44,087






















5,588,026




















5,526,240



27,362
5,553,602
34,424





















5,229,954




















5,059,733



17,989
5,077,722
152,232
15,025
4,468
6,794
1,075		 12,210
2,005
3,774
-

Page 26