R•glst•rod number: 03467406 Charlty numbor: 1067685 . MARTHA¥" TRUST Martha Trust (A company Ilmlled by guarantoo) Tru8teeJJ' report and flnanclal statements For the year onded 31 December 2023 Martha Trust (A company Ilmlted by guarantee) Contents Page Reference and adrninistrative detalls of the Charity. Its Trustee8 and advl80rs Chalrnian's statement Trusteos. report 3-16 Trustees. responslbllltl•s Statement 17 Independent audltorn. rnport 18-21 Statemont of flnanclal actlvltles 22 Balance 8h•et 23 Statement of cash flows 24 Notes to the flnanclal 8tatament8 25-44 Martha Trust (A company lim5tad by guarantee) Rehrence and admlni8tratlva détails of the Charity, its Trustees and advlsors For the year ended 31 December 2023 Trustees Humphrey Clarke. (resigned as Chaimian on 15 December 2023) Adrian Button (resigned 7 December 2023) Georgina Hovey Richard Pitt Rebecca Pry3e John Quin Amy Rosie (resigned 17 August 20231 Rob8rt Spark8s Roger Walton, (appointed as Chalrman on 15 December 2023) Company reglsterod numbar 03467406 Charlty rog18terod number 1067885 Rogl8tornd offleA Hornemead Lane Hacklinge D8al Kent CT14 OPG Senlor management toam Natali8 OIsz8wska, Dlrector of Finance and Resources (reslgned 4 December 2023) Kelly Hulchings, Associate Director of Financ8 (appointed 4 D8cember 2023) Owen Nolan, Strategic Health and Social Care Lead Clalre Rogerson, Director of People and Culture Alice Moir, Associate Director- Fundraislng and Marketing Company secretary Julle Ga￿er lappolnted on 7 December 2023} Natalia Olszewska {rosigned on 4 December 20231 Chlef executlve offl¢er Julie Gayler Independent audltors Kreston R88V88 LLP statutory Audltor Chartered Accountants 37 St Margarel's Street Canterbury Kent CT12TU Bankors Barclays Bank PLC 9 St George Slreet Canterbury Kent CT1 2JX Sollcltors Girlings Solicitors LLP 16 Rose Lane Canterbury Kent CT12UR Page 1 Martha Trust IA company lirnited by guaranteel Chairnian's statement For thè year ended 31 December 2023 The chaimian pr8S8nts his statement for the year. Each year I write this statement with a sense of hope. Hope that the world will be kinder to those who are less fortunat8 or mora vulnarable, and to organisalions like us, who work to support and ancourage people with Profound and Multiple Learning Disabilities (PMLD to thriv8 in the world around them. 2023 was a year Ihat once again sel us challenges, and required our teams to dig deep, be creative, show faith and have empathy and understanding in the face of ongoing difficulty. With Covid now appearing to be an accepted part of life. and government restrictions for care homes all but disappearing, new challenges aros8 to be mel and conqu8red by all at Martha. Ongoing troub18s between the Ukraine and Russia continue lo impact on th8 world economy and result in increases in both energy and food costs. Furthermore, the tightening of budgets for local authorities. the NHS and Adult Social Care resulted in Martha's fee income coming under ever increasing pressure, potentially threatenlng the longevity of the organisation unless chang&s were mad8. The Senior Management Team ISMT) worked tlrelessly to look at ways to both reduce outgolngs and Increase income without aff8Cting the high-quality, perSOn￿enI￿d care w8 prid8 ourselves on. This work and del8rmined approach continued throughout 2023 and will need to be sustained into 2024 and beyond. The Board made the decision for the final quarter to increase the support provided to the SMT, setting regular Board meetings to provide guidance and reassurance to the team, The SMT were quick to recognise the importance of ensuring residents, funding matched thelr requirements and the level of care and sUPPOrt provided. This led lo the start of a projeGt, building on the work by the joint Trustee and SMT Funding Strategy Group initiat8d in 202, reviewing resid8nts' needs, and challenging fundars to recognise these changes and fund accordingly. This work will ensur8 that not only will Martha Trust receive the appropriate fees, but that residents will be funded for the hours required to meet their individual needs. Alongside this, Martha dev8loped existing relationships to challenge minimal fee increases that result in funding not meeting costs. Recruitment wa5 a tale of two sit88. In Deal, we found ourselves able to recruit well, ending 2023 fully staff8d. This was due lo hard work, and the excepbonal reputstion Martha has established in the local a￿a. In Haslings however, we continued to face the normal challenges. This said, recruitment did slowly improve, resulting in the high dependency on agency seen at the start of th8 year starting to easè towards the 8nd of 2023, a reli8f to our Mary House team. Mary House worked hard to address CQC feedback and implement improvements raised during Ihe initial inspectson In November 2022, The management teams on both sites came together to work collaclively, using learning from each other lo make positive Changes, including the introduction of medication training and competences thal improve our proGesses, ensu￿ resident safety, and enable Support Workers to increase their hourly pay through increased skills. As we look forward to 2024, 1 have made the decislon to step down as Chairman, a position I have been privileged to hold for 12 years. This is not a decision I made lightly, but I beli8ve our SMT will benefil from a Chair who is able to provide support and guidance in person. Martha is in safe hands with the unanimously elected new Chair, Roger Walton, an experienced and committed Board member. He and the SMT have my blessings. The Board have asked me to stay on as a Board member. which l am very happy to do. Together, we embrace the future ahead with faith, determination and gratitude for the support of our generous donors. We believe in Martha, our values and the good we can bring to th8 worfd. May the Lord continue to guide and protect us, enabling us to Gontinue our valuable work. pp Humphrey Clarke Chaimian (resigned as Chairman on 15 December 2023) Date.. -tytr- 2014 . Page 2 Martha Trust IA company limlted by guarantee) Trusla88' report For the year anded 31 December 2023 The Trustees {who are also directors of the charity for the purposès of the Companies Act) pres8nt thèir annual report together with the audited financial statements of Martha Trust (the ¢harity} for the year ended 31 D8cember 2023. The Trustees confirm Ihal the annual report and financial stat8m8nls of the charity comply with the current statutory r8quir8ments, the requirèments of the charitvs governing do¢um8nt and the provisions of the Statement of Recommended Practice ISORP), applicab18 lo charities preparing their accounts In accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (8ff8ctive 1 January 2019). Publlc Bèneflt a. Purp08e We are an established r8gional charlty, formed in 1987. providing residential and day care to adults with profound physical and multiple learning disabilities {PMLDI. W8 are passionate about delivering per50n-cenlred care, enabling the indivldua15 we support to achieve thelr highest level of Independence and lead a fulfilllng, contented and meaningful lif8. We achieve this by.. recognising and r8SP8Cting people as uniqu8 individuals. encouraging and supporting everyone to be involved and engaged in the world around them. promoting good health and holistic well-being. Our health goals are to reduce and prevent unnecessary hospital 8dmissions and to prevenl delayed discharges. We achieve this by.. having indlvldual care and support plans for people, recognlslng b8St practice and how we can support people wlth our nursing teams. developing a di5charg8 plan on admission and acting as advocates for the r8sid8nts' well-being while they are in hospital. We believe that people with PMLD have the right to make choices about their lives as w811 as the absolute right to privacy, dignity and respect. They are encouraged and assistad to engage where possible in activities within their local communlty. Our residential services are 8UPPOrted by a team of in-house care professlonals as well as external specialists in health, person-centred planning, communication and physiotherapy. Our Mission is to offer compasslon, friendship and encouragement to people with PMLD, supporting them to lead a full and contented Ilfe. Our Vision Is for everyone Wlth profound disabilities lo be given the very best opportunities in life, enabling them to engage in the world around them and achieve their individual potential. Our Values are.. To treat everyone with respect. dignity and wmpas5ion To always b8 SUPPOrtive and encouraging To promote a culture of inclusion and diversity To act with integrity and hon8sty at all times To champion the needs and rights of people with profound disabilities While Martha Trust is driven by Christian values, we offer Ca￿ and support to people from all faiths and backgrounds. We ernploy staff bas8d on their skills and experience and do not discriminat8 on grounds of faith, gender, age, ethnic origin, disability, marital ststus, race, nationality or sexual orientation. Page 3 Martha Trust (A Company limited by guarante8) Trustees. report (continued) For the year ended 31 December 2023 b. Our strategic aims Be an oulslanding provider offering high quality servic8s and support for our residents Generate sufficient fee and fundraising income to ensure ongoing financial viability Operate an effective and efficient charity 88 an employer of choice in our local area Enhanc8 our links with community to the benefit of our residents c. Our strateglc objectlves for 2022-2024 Ob'ectives su ortin each Strate 1¢ Aim Be an outstanding provider offering high quality S8rvices and support for our residents 1.1. Und8rstand the needs of the r8sidents we serve and ensure we can evidence the impact of our services 1.2. Ensure our services are safe, effective, caring, responsive and well-led 1.3. Working dos8ly with CQC and local authorities., to b8 outstanding in clinical expertise with an emphasis on residents needs Generate sufficient fee and fundraising income to ensure ongoing financial viability 2.1 Ensure fee income for each r8sid8nt is sufficient lo fully cover the cost of their individu81 care needs 2.2 Grr)w and 81JStain voluntary income 2.3 Maintain efficient stsffing levels and costs and limited use of agency staff 2.4 Ensure value for money by applying principles of economy, efficiency and effectiveness Operate an 8ffectiV8 and efficient charity 3.1 Ensure our organisalion is well-govemed and that our strategies, plans and budgets are aligned 3.2 Maintain effective risk management to aid and Inform decision-making 3.3 measu￿ impact and outcomes in line with our Misslon Be an employer of choice in our local area 4.1 Suppor( develop and manage our staff in the achievement ofour objectives 4.2 Fosler a Culture where Individuals of all backgrounds feel confident to be themselves, and are Included and empowered 4.3 Continue to evolve our strategic approach to recruitment and retention Enhance our links with community to the benefit of our residents 5.1 Identify and take advantage of opportunities to SUPPOrt residents to be active members of the local community 5.2 Develop initiatives to engage wilh our local communities, promoting the work of Martha Trust and ways to support the charity 5.3 Identify and promote volunteering opportunities to individuals, businesses and local groups The above objectives are in the process of being developed into a formal three year plan. As detailed below, this work was delayed du8 to the need to focus on Martha Trust's financial position during 2023. The plan will now be completed in 2024. However, some initiatives and projects lo deliver the objectives are already live, with progress continuing in 2024 as set out in this report. Annual perfomianc& wlll bs measur8d against achievements relatlng to the plan in 2023 and 2024 and will be reported in the Trustees, Annual Reports for this year and next. Page 4 Martha Trust (Acompany Ilrniled by guarantee) Trustées. report (continued) For the year ended 31 December 2023 d. Actlvitlès for achieving objectives Str The biggest challenges in delivering against our strategic aims in 2023 have been the ongoing battle to negotiate appropriate f8es agalnst a backdrop of soaring inflation. the steep rise in the cost of living 8nd the national recruitment crisis within th8 adult social care sector. It is a harsh reality that the combination of these factors has hindered th8 speed with which we have been able to move forward with the completion and full implementation of our strategic plan, Martha Trust strives to be an organisalion that adapts and evolves to meet the inevitable challenges pos8d by extern81 forces. During 2023 our focus has been on identifwng new strategies to counter funding shorffalls and staff vacancies. A process of reassessmenl and strong fee challenges have led to a number of funding increases, whi15t a range of positive changes were introduced to improve staff retentian and recrLrilm8nt. These included an early pay increase above the Nalional Minimum Wage. Inlroduction of value5-based supervisions and a change to the management of the rota which resulted in a significant decr8as8 in agency use by the end of the year. By re¢o9nising the complex needs of those we support, we recognise the responsibility W8 have in en5urlng that we protect the long-terrn sustainability of the organisalion and Can provide residents with the caring home for life that they deseNe- and whilè doing so sel new industry standards of exc8118nce. We ar8 passionate about supporting people with PMLD to lead a full and contented life. We achi8V8 this by recognising and respecting peopla as unique individuals, encouraging and supporting everyone to be involved and engaged in the wortd around them and promoting good health and holistic well-being. Families We contlnue to be committed to working alongside famllles, recognising their wealth of knowledge, listening to fe8db8ck and ideas to improve the experience for thos8 involved and create meaningful relationships for the benefit of everyone. Virtual family forums continued during 2023, which 8nabled family members from both Martha locats'ons to interact. share views and experiences and develop their own support networks. Social media has prov8n to bè invaluable in enabling families to keep in touch, with dedicated Facebook and WhatsApp platforms set up by Ihe families. Parent Representatlve Meetings have contlnued to take place regularly via Zoom. Thls has facllltated open and transparent communication belmeen the Representatives and the Martha management team, which has been vital during a year of unexpected external pressures. One of the many benefits from th8s8 meetings, has been that consistent communications to wider family members has been far easler to facilitate. The Relatives Gateway provides access for families to areas of Martha's electronic care plan system, PCS, enabling them to keep up to date with the care and activities of their loved ones. This is currently available to the families of residents who live in Martha's Deal-based homes, but will b8 rolled out to those residing at Hastings in eady 2024. The 2023 family feedback questionnaire was distributed to families, with 12 responses received. a response rate of 320/0 compared to 23% in 2022. Whilst this is still a littl& disappointing, taking into account the olher mechanisms w8 have in place for families to expres5 their views, which we know they utilise, it is less of a COn￿r￿. Many of our families frequently attend the family forums and are encouraged to raise Issues, concern5 or positive feedback directly to the Home Managers as and when they need to, as well as utilising the Parent Repres8ntative group. The family questionnaire plays a part in the review of our care services but isn't to be used as a stand-alone. Page 5 Martha Trust (A company Ilmlted by guarantee) Tru8tee8' report (continued) For the year ended 31 December 2023 Family members are recruited to sit on Truslee-led committees when their experience is idenlrfied as being of Value. This includes the Care Improvement Committee and Funding Strategy Committee, both of which have ben8fitad enomously from th8 skills and different p8rsp8Ctiv&s brought to the discussions by th8 families of our residents. The Car8 Improvement Committ68. attended by a dinical Trustee and thr88 family m8mbers with dinical backgrounds. aims to further develop our servlce and demonstrate how we are improvlng Ihe lives of our residents through a long-tem care strategy. Positive progress was made by the Committee during 2023 on the priority area of a new medication policy. Our Quality assurance framework continues to evolve and improve. with the electronic care plan system, PCS, fully embedded. This technology streamlines Ihe process of recording daily care and the review of risk assessments and resident needs. The electronlc Medication Admlnlstration Record (MARI, which integrates with PCS and provides a safe, efficient system proven to reduce madicalion arrors was successfully introduced at our Hastings location during 2023. This is now live across the organisation. The organlsational govemance framework was reviawed and relaunched in 2022, replacing the previous Clinical Governance m88tings and is guided by th8 CQC reg 17 for Governanc8, encompassing the Regulations for Service Prowders and Managers under the Health and Social Care act 2008 and 2009. The framework has developed durin9 2023, with a new audit system introduced. Conts'nuous Improvement Plans ICIPI fomi the basis of improving the quality of the services we offer. Each site ha5 a CIP based on the CQC Key Lines of Enquiry standards. CIPS have been regularfy updated during the year to include areas of improvement highlighted in stakeholder questionnaire responses and audits. Focus is placed on areas ral8d as Good by CQC at th8 last insp8Ctions. with a vi8W to achieving Oulslanding. This rolling plan ensures we can react quickly to areas of concern or innovative ideas, put more robust governance in place and evidence our ethos of being a leaming organisation. The activities teams at both Martha locations continue to le8d on delivering pers0n-￿ntred activity plans, communication and physiotherapy programmes. PCS provides the plafform for recording eviden￿ of activities and review of individual plans due to any changes in need or preferences. AS always, we are keen to explore opportunities offered by new technology which can enable all resldents to communicata mor8 effectively, expr8SS themselves and have fun. As w811 as Eye Gaze technology, through generous donabons we have b8en able to introduce two Rainbow Tab18s for our Deal homes. These interactive, touch-screen, multipurpose tablets are the perfect addition to our acts'vity offering at Martha. Development of the Martha Trust GDPR policy is an ongoing project, with overall responsibility passing to the CEO and Associate Director of Markets'ng & Fundraising. Progress is now being made on reviewing and updating proGesses relating to Martha's care Servi￿S and HR priKesses to ensure ongoing compliance with the latest regulations. W8 continue to provlde monthly information to several CCG Commissioning Support Untts on set Key Perfomiance Indicators and are working with olh8r funding authoritl8S to provide more detailed infomiation on the service we provide. Page 6 Martha Trust (A company limited by guaranteo) Trustees, report {continuedl For the year ended 31 December 2023 Our Peo The r8cruitmant challenges of 2022 continued into 2023 with th8 teams on both sites working under pressur8 due to being und8rstaffed. As a rèsult, we saw high use of overtime shifts and agency workers to ansure staffing levels were maintained at a safe level. Martha was able lo implement a pay increase from the start of January 2023, paying above the national minimum wage b8for8 It became a legal requirement. This proved to have a positlV8 irnpact on both recruitment and retention, with new starters joining in the first quarter. The staff questionnaire also fed back Ihat this led to people feeling fairly paid for their roles and valued. Followlng positive feedback from the teams, additional incentlves were offered to staff to encourage retention. Th8se incentives were supported by Ihe generosity of gr81eful families of residents. The work life balance project Implemenled in 2022 was fimily In place by the stsrt of the year, and flexible working was supported as far as possible. A staff get logeiher was also arranged for all to attend with their families, with our regular supporter, So118y's, hosting the day on their field in Ripp18. This was an opportunity for people to get together. have fun on the inflalable assault Course all while the SMT and Fundraising team worked behind the bar to look after them as a thank you for their hard work. As part of the wider project to ensure values are 8mb8dd8d as part of the everyday culture. Value-based supervisions were introduced. This enabled the HR team to spend time with every member of staff, reflecting on how they ensur8d they treated people well, and providing feedback on what Martha do successfully and what can be done better. Standard supervisions still tak8 plac8 Wlth a focus on people's roles and skills, bul this time allows the opportunlty for people to cons￿der their behaviour and provide inslght for future improvements. Challenges to funding meant that hard decisions had lo be made during 2023 and incr8ases to overtime rates made during Covid to encourage our own staff to cover shifts and reduce the number of vlsiling agency staff had to be brought back in line with normal policy. The financial positlon also hlghllghted the danger of continuing lo staff heavily with agency. Mary House relied on agency, with a low pick up of overtime shifts. Changes were made withln the management team, and the managemant of the rota moved lo an organisational position rather than being managed in-hous8. The individual was tasked with reducing agency costs and increasing overtime pick up. Thls prèsentèd challenges, with th8 team required to adapt to a new way of working. Despite some negativity and some resistance, by Ihe end of 2023 we were starting to see a raal impact, with 18ss agency being booked and more ov8rtima shrfts being picked up. This trend is expected to continue into 2024. Training plans for 2023 n88ded to be adapted following the CQC inspectlon at Mary Hous8 in November 2022, and the follow up inspection in ea￿Y 2023. Feedback from the inspectors relating to medication resulted in the prioritisation of delivering 8 speciflc Medication course for Support Workers. The specialised course look a sizable amount of the tralning budget, and the decision to recognise the completion and subsequent passing of medication competencies with 8n increase in pay, impacled on the 2023 expenditure. Work began on writing a new course to be introduced in 2024 - 'Value5 and Empathl. This course will be delivered internally, and allows time to consider Martha's values. building on the feedback from the re￿￿tlY introduced supervisions and starting to build on the previous plans to 8mbrace Equity, Diversity, and Inclusion. The second part of the course focuses on enabling people to see from a resident's perspective, with an aim on building empathy. Several training courses planned for later in the year were pul on hold due to the budget being used for medication Iraining, and a need to r8duce expenditure. Plans for 2024 include moving all mandatory courses online lo enable th8 training budget lo be prioritised on courses that focus on improving peoples, skills andlor understanding resident's needs. Feedback from new starters continues to help us make the induction and Buddy process as effective as posslble, encouraging peop18 to embra￿ our values and commit to ensuring residents can embrace their lives and engage in the world around them. Page 7 Martha Trust {A company Ilmlted by guarantee) Trustees. report (continued) For the yoar ended 31 December 2023 SMT continued to be led and guided by our CEO, Julie Gayler, with other members continuing to grow in their roles. Natalia 01szewska stepped down as Finance Director in the last quarter, allowing Kelly Hulchings to step up into a role of Interim Financial Controller and enabling Kelly lo gain new strategic experience, working Wlth SMT on challenging fees, increasing income, and reducing expenditure. The second half of 2023 was difficult for Martha due to concerns around the financial pressures faced by the organisation. Contlnuous failures by funders to increase fees, high agency and staffing costs all contributed to challenging outlook. Julie Gayler took a positive approactt to the challenges, hamessing the strength and passion within SMT to adopt a slralegic approach that saw 2023 end with a lower deficit than might otherwis8 have occurred. This lev81 of tenacity, positivity and determination will be carried into 2024. Th8r8 W8re also difficulties faced on both siles related lo r8lationships with families. This impacted on the Gare teams, and much time was spent ensuring that support was provided at all levels to deal with some of the V8ry demanding situations. Work is underway to strengthen the professional boundaries and expectations we have when working with families and external agencies, to avoid Ihe same issues arises and ensuring we learn from the experiences. A revi88d, all encompassing 'Code of Conduct, will be introduced in 2024. Overall, the slafflng numbers in the care teams across the organisation remalned steady with 22 leavers for the year, and 21 new starters. 1218av8rs were frorn the Deal site, and 10 from Haslings. G8n8ral movement in contracted hours, and 2 of the Deal leavers being in supernumerary positions led to a slight increase in the level of slaffino on the rota, with Deal lookino to be fully staffed for both nurses and Support Workers In early 2024. However, levels of employee vacancies at Mary House remain a concern due to the wider impact Ih8y have on both team morale and agency costs. At the end of 2023 8pplications for roles wer8 Steady and agency use reducad compared to the start of the year. Teams were advised in Decemb8r 2023 that overtime rates would be reducing further to lime and a third. and that the annual pay increase would not be implemented until April 2024 due to challenges with finances. Despite this news, all staff received a £50 voucher for Christmas, and the increases implemented to recognise increased skills in Ihe form of competencies remained in place. Fundraisin 2023 was the Second full y8ar, post pandemlc that we were able lo run our full $8ries of events and fac8-t(>face fundraising. Income raised via our fundraising event5 programme continues to grow, with our music evenls and golf days proving extremely popular with our supporter5 and the widar cofflmunily of Deal. The majority of our ev8nts saw growth and income from all of them. except one. was at an all-time high. Income from our car challenge was down on 2022, as we had a number of cars drop out. A total of sev8n cars headed off to Barcelona. This event is a high profile event often picked up by the media and continues to provide us wlth great connections with local businesses and develops long term supporters. Our strategy for focussing our events around providing an enjoyab18 as well as a rewarding experience is proving the right focus for our charity. Where possible we also aim for our fundraising events, especially our music ones, to be accessible and inclusive. General incomé was down on budget, but this is a reflection on the challenges facing tha charity sector as a whole and the impact the cost-of-living crisis is having on general fundraising. We continue to build on support from local businesses and nurture relationships, we saw growth in support through sponsorship of our events programme and gifts In kind. Pag8 8 Martha Trust (A company Ilmlted by guaranteo) Trustees. report {contlnued) For the year ended 31 December 2023 As a charity we receive a largé number of Gifts in Kind (GIK) donations each year alongsidè monetary donations. Such donations play a vital role in achieving our fundraising objectives so in 2023 we took the decision to start including GIK support in our annual report and accounts. These donations are includad in our fundraising income and expenditure lines. Our profi'le in the local communities within which we work continues to grow and we are spreading awareness further into Kent and Sussex. We continue to build good foundations in tha Hastings area with key community groups. Our social media strategy continues lo gather momentum with our Facebook followers up 9.4%, Instagram up 170A on 2022. Twitter up 6.8% and Linkedln up 17.8Yo. Our social media is a great tool in promoting our fundraislng activity, support for Martha, as w811 as raising awareness of profound disability. Towards the end of 2022, we expanded our fundralslng team, appointlng a new post of Fundraising and Events Assistant lo support our fundraising and to help raise awareness of our work in the Hastings area. Sadly this role did not work out as we had planned and the role c8as8d in April 2023, Our fundraising team was the equivalent of 2.72 flt roles in 2024. Core Grant Incom8 Our core grant income stream, which focuses on securing core funding support from trust5 and foundatlons d81ivered 16¥0 over for&casted income, In 2023, our alm was to secure core fundlng towards items we have to pay for as 8 charlty. We focussed our cor8 approaches this y8ar around activities, Person Centr8d Software and fundraising events cost5. Restricted Appeals In 2023, w8 had a number of restricted projects for 8quipment. Our appeal, to purchase Rainbow Tables for our Deal homes Started in 2022 and completed in January 2023. These interactlV8, touch-screen, multipurpose tablèts are the perfect addition to our aclivity offering at Martha and we successfully completed the appeal in January and purchased the second Rainbow Table. We ended the year s8¢uring 68Yo of the funding n88ded for our THERA train8r appeal, so this carried fO￿ard Into 2024.Th8 THERA Trainer Tigo Is essentially an exercisè bike designed specifically for people wlth limited mobility, A number of r8Stricted donations were received for us to enhance our gardens at our Deal hom8S, Wlth a large grant to support a volunteer day by a team from Swiss Re. Page 9 Martha Trust (A company limited by guarantae} Trustees. report (continued) For the year endad 31 Dac8mber 2023 Achievements and èrformance a. Key flnancial perfomianco Indlcators Martha Trust had another challenging year Sn 2023. The adult social care sector continued to suffer the effects of the cost-of-living crisis, combined with the under-funding that has become systemic in the sector and is widely debated within th8 national press and service provider membership groups, We have to report that once again the fee increases that we did receive were insufficient to cover the full 8Xt8nt of cost increases. Inflalionary fee increases we received for 2023 were on average 2.910, significantly lower than the 5.2D/o increase in the Consumer Price Index and the 9.7/0 increase in minimum wage. It is unclear how Nation81 and Local Government envisaged this gap would b8 filled and it was largely to blame for the size of our deficrt in 2023. Total income was £6.6 million 12022.. £6.4 million) and the deficit was £451,715 12022., £64,039). Room occupancy which has a direct impact on income decreased to 94.90/0 compared to 96.50/0 in 2022, due to the sad death of three residents during th8 year and the time lag to fill resident vacanci8s caused by necessary assessments required by funders. Over the last six years, th8 full rale of minimum wage has risen by 33.10/0, from £7.83 per hour to £10.42 p8r hour. None of our funding authorities have increased their fee5 by anything near 33.10/0 over that six-year period. None of our funding authorities have so far increased their fees by 9.7¥. for 2024. The mismatch between increases in minimum wage and inflationary f88 increases clearly means a significant gap in funding because approximately 70VD of our costs ar& staff costs. It is notable that the Governmenl, havlng set the minimum wage each year, did not recognise a need to properly compensate through fees those organisations that are, like Martha Trust, largely publicly funded. Marketing of care services Is still generating new care enquiries. We are further building on relationships with stakeholder authorities that r8sulted from marketing activity in recent years. We Gontinue to engag8 With local Social Car8 and NHS funders, to enhance relationships with them at both of our locations. The level of new care enquiries in 2023 continued to be encouraging. Thls is, as in previous years, partly due to our profile being faised through marketing and partly due to a sustained and particularly high18vel of demand in time of shrinking servlce provision in South East England. We have a continuing system of expenditure monitorlng and control and a rigorous budgeting process. We negotiate with existing suppliers a5 well as potential new suppli8rs in ord8r to sourc8 goods and services at the best possible price. Although there continue lo be increases in costs. we hav8 achieved efficiencies across the organisation where this wa5 possible. Having said that, we suffered cost increas8S that we are unable to control as outlined above, The year ended with the following results.. Total income £6.57m12022'. £6.4m) Expenditure £7.03m12022'. 6.46m) Deficit £0.45m (2022.. £0.06ml Percentsge costs of management and administration 8.3Yo (2022.. 8.59 % } Occupancy 94.9'/o (2022.. 96.5'/0) Balance Sheal total funds £4.62m (2022.. £5.07m) b. Revlew of actlvltles There were three new résidential placements during the year. The respite service was suspend8d in March 2020 due to Covid-19 and remains closed. Enquiries from familie5 and clinical professionals seeking a possible placement continue to be at an encouraging level and residential rooms are very much in demand. c. Investment policy and performance The investment policy agreed by the Trustees is to place funds in cash deposits on fixed and short-term arrangements but with the primary obj8Ctive of ensuring Martha Trust's cash flow requirements are met. Page 10 Martha Trust (A company Ilmlted by guarantee) Trustees, report (continued) For the year end8d 31 December 2023 d. Factors relevant to achleva objéctives Our staff team works as seamlessly as possible to ensure that occupancy is maximised and that care is provided to nol jusl meet residents, needs but to make a real difference to their lives. Some of the major challengas are outlined in a later section of this report, but we ensure that everyone has their n8eds regularly reassessed and that full and comprehensive care plans, rlsk assessments and other important documentation are in place and regulady updatéd in support of our objectiv8 to ensure our services aré saf8, effective, caring, responsiv8 and well-led. Financlal rnvlew a. Golng concern The adv8rs8 impact on our overall finances of underfunding from our major funding authorities and high staff vacancies, resulting in substantial agency cost, were und8r8tandably a cause for concern. Work is In hand to mitigate these issues and. as a consequence, the Trustees are now confident that the charity has adequate resources to conlinue in operational existence for th8 fores8eable future. For this reason, they continue to adopt the going concem basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accountir)g Policies. b. Flnanclal rlsk management objectlves and pollcles Financial risk is minimised in several ways by Martha Trust. The ways we manage risk indud8 se8king adequate fe8s for residents, effective cost control and proper appraisal of any developments. Through our polici9s and procedures our financial rfjsk management is 8mbedded in our organisalional culture. c. Prlncipal risks and uncertainties In common with many providers of social care and health services, Martha Trust faces risks and uncertainties regarding the sustainability of fee levels in the long t8rm. As noted above there have not been sufficient fee increases lo cover cost pressures In full, partlcularly wage increases. Costs in the care sector are rising faster than general inflation. Regulation and good practice have caused notable cost increases as we need to spend more on maintaining and enhancing the quality of care. The Trustees have always believed it is absolutely correcl for stakeholders lo hav8 confidence that our service is safe, eff8cliv8, carlng, responsive and w81118d. Securing fundlng for the essential spendlng Ihal is increasingly required remains very challenging. As mention8d in a. above, staff vacancies and the impact of agency cost ar8 another concern. Staffing costs continue to be impacted by increases in National Llving Wage (NLW). Although some funding authorities have increased fee levels, thos8 increases do not cover the increase in wage costs. This results in continued pressur8 on resources and a gr8at8r challenge in maintaining fi'nancial stabllity. As also mentloned In a. above, Inadequate fee Increases remain of concern. In particular. for the second year running, Kent County Council, are proposing no increase whatso8V8r to residents on the Deal site, and Kent and Medway ICB are proposing 8 mere increase of 1.89k. Neither of these take any account of inflationary situation. We have developed relationships with funding authorities where in previous years there was no relationship. By working lo resist pressure on fee5, by nurturing relationships with stakeholders. by increasing the number of rooms and by maximising our bed occupancy level we Continue to meet risk with concerted action and therefore safeguard the future of Martha Trust. d. Principal funding The main source of income for Martha Trust is from contracts with local authorities and NHS ICBS. Since Martha Trust provides care for people drawn from all parts of the UK, the charity has cultivated and maintain8d a wide range of relationships. Page11 Martha Trust (A company Ilmited by guarantee) Trustees. report (contsnued) For the y8ar ended 31 December 2023 In addition, Martha Trust has, over several years, developed a marketing strategy specifically for ils carè seNices that has broadened its reach, enabling it to source placements from a greater number of authorities. This will help to maximise overall occupancy levels and therefore fee income. Alongsid8 this strategy we are working more closely with Susséx ICB as w811 as with Kent & Medway ICB in order to source a higher level of placements from local areas. Fundraising income finances som8 of our capital expènditure including davelopments within our homes like new rooms and specialist equipm8nt, as well as providing some unrestricted funding. Other than fees for services and specific funding for the effects of Covid on our costs, no income is received from any ststutory sources. We are also grdtéful for the vltal contributions by our supporters who help Martha Trust provid8 the level of service and care that we are all committed to. Without this support it would not be posslble for the charity to continue to undertake its current level of servic8 provision. We believe that giving to charfty should be a posltlve experlence, and to help make sure this is the case the charity ha5 Put in place a policy that seeks to ensure that the highosl possibl8 Standards of fundraisirsg practice ar8 being adopted. This policy acknow18dg8S the damaging impact an excessively aggressive approach to fundraising can have on vulnerable people, whether from unreasonably persistent approaches being made or undue pressure to give being applied. and great care Is undertaken to ensure that such practlces are not adopted by the charity. The charity voluntarily subscrib8S to the Fundraising Regulator and complies with all aspects of its Code of Practice as well as ensuring its fundraising activity follow5 the prlnciples set out under GDPR. Fundralslng activity is predomlnantly carried out by our own in-house team and volunteers. The charity does not utilise the servi￿5 of any external comm8rcial fundraisers for general fundraising purposes. However during 2023, Martha sought support from a Fundraising Consultant for the purposes of its strategy and 8ppeal approach to Trusts and Foundations Martha welcomes feedback on its fundraising approach and s88ks to make irnprovements wherever it can. Any complaints received in respect of our fundraising activities are taken very seriously and are acted upon immediately. We are pleased to report that during the year no complaints were received in respect of our fundraising activity. Materlal Invostments pollcy We do not partidpat8 in mat8rial investments. Structure over ance and mana emen Conslltution The charity is regist8red as a charitabl8 company limited by guarantee and was set up by a Trust Deed. The principal object of the charlty Is to provide residential or 'incluslve Ca￿,, for people with profound physical and multiple learning disabilities IPMLD), as well as respite services and support to families Caring for people with PMLD. b. Method of appointment or eleclion of Trustees The management of thg charity is the responsibility of the Trustees who are elected and co opted under the leriiis of tli& Trusl deèd. c. Policies adopted for the Indudlon and tralnlng of Trustoos For all new Trustees we undertake an induction programme using the guidance from the Charity Commission under the heading of good govemance. Pag8 12 Martha Trust IA company Ilmlted by guarantee) Trustaes. report (contlnuedl For the year ended 31 December 2023 Wé discuss with them th8 s8ven principles of the Charity Govemance Code.. Organisational Purpose Leadership Intègrity Decision making, risk and contiol Board Effectiveness Equality, Div8rsity and Inclusion and Openness and Accountability This ensures that they have a full understanding of their responsibilities. In addition, new Trustees wll attend a seminar on their responsibilit18s by a charity firm during th8 first year of their Truste8ship at Martha Trust. New Trustees will also be allocated an experienced Trustee to guide them in their flrst six months of Trusteeship. d. Pay pollcy for sonlor staff The Trustees are able lo claim reasonable travelling and other expenses properly incurred by them in connection with their attendance at meetings of Trustee Board, Committee or General meetings, or otherwise in connection with the discharge of their duties but ar8 not paid remuneration. Some Trustees choose to donate their expenses back to Martha Trust. All salaried roles at Martha, Including those of the Directors and Chief ExecutlV8 Officer, hav8 b88n evaluated based on comparator market data by an independent HR consultancy, TRP Ltd, specialising in remuneration and reward issues. o. Organlsatlonal structure and declslon maklng At the year end the Board of Trust88s consisted of nine Trustees, who are also Directors of Martha TTUSt for th8 purposes of company law. The Senior Management Team consisted of the Chief Executive Officer, Director of Finance and Resources, Strateglc Health & Social Care Lead, Director of People and Culture, and Associate Director of Fundraising and Marketing. There are four full Board Meetings per year, plus at 18asl four Audlt & Flnance Committee Meetings. The Funding Strategy Group meet5 periodically and has two Trustees and one family representative. Th8 Ca Improvement Committ88 m8ets quartedy and has one Trustee and two family r8pr8S8ntatlves. In terms of financial conlrol, revenue and capital budgets are prepared for the forthcoming financlal year and the Audit and Finance Committee considers the budgets prior to the start of that year. Onc8 agreed, budgèts ar8 presented to Trustees for approval. Addillonally, regular forecasts are prepared and rèviewed during each financial year. The budgets and for8casts are the cornerstone for financial operatlons durlng the year, The CEO currently holds the CQC registration for the Hastings site, with a Home Manager responsible for the operational management of the home. Registration for the Deal site is held by the Senior Registered Home Manager (SRHMI who a150 provides clinical advice and support to th8 Hasting5 horne management team. All new care policies or changes to existing care policies are review8d and approved at th8 organisation Governan￿ meetings, which involve the SMT and management team5 across all functions. f. Risk management The Trustees have assessed the major risks to which the charity is exposed, in particular, those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to miligate our exposure to the major risks. Page 13 Martha Trust (A company Ilmltad by guaranteol Trustees. rèport (contlnuedl For the year ended 31 December 2023 Plans forfuture erlods a. Future developmonts Th8 challenges faced during 2023, most imporLqntly the ability to negotlate appropriate fees against a backdrop of financial pressure on commissioners, and the impact of the ongoing national recruitment crisis within the 8dult social care sector, will very likély r8main as we look to the future. Delivery against key objectlV88 of our 3-year strateglc plan will involve the new strategies now in place to counter funding shortfalls. These include regLJlar reassessment of residents, needs and appro8ch8S to funders lo fully fund those needs. together with robust Ghallenges to inadequate annual fee increases. We will work to identify n8w ways lo further improve staff retention and recruitment, thereby reducing agency cosis. one 8xamp18 of which will be exploring opportunities for overseas racruitm8nt. It is anticipat8d that staffinq is likely to be stable at Deal, but recruitment at Hastings will rèmaln challenging in 2024. In the meantime, efforts will continue to ensu￿ people feel valued, appr8ciated and well supported, leading to employment at Martha being a posikn've experience. Our commitment lo b8ing an excellent employer, delivering high quality care remains, In line wlth our strategic aims set out above, we will also.. C.nntiniip tr) ba Hn niit8lAnding provider that others can asplre to by.. Demonslrating our understanding of the needs ofth8 residents at Martha Trust and ensuring we can evidence the impact of our support. Ensuring our s8NIC8s ar8 safe, 8ffective, caring, responsive and well-led. Working closely with CQC and funding authorities, aim to be outstanding in clinical knowledge and safeguarding with an emphasis on resldents, needs. Being a leading provider in our work on communlcalion wlth people with PMLD through Iradltional methods and using the lat8sI technology. Generate 8UStainable funding and maxSmise resources to provlde our resldents with the best possible lives by: Growing, maximising and sustaining statutory, earned and fundraising Incom8. Producing three-year budget plan, incorporating income and expenditure. to live within our m8ans. Ensuring value for money by applying principl8s of 8conomy, efficiency and effectiveness. Consider n8W Opportunities to increase service provision, but only where the outcomes will contribute to the longevity of Martha Trust Operate a well-governed, efficient organisation, supporb'ng and d&veloping th8 Staff and volunteers who work for us by.. Ensuring our charity is w811-gov8rned with alignment of strategy, business plan and financial sustainability. Managing our quality standards and risks effectively within our regulatory frameworks. Supporting, developing and managing our staff in the achievement of our objectives. Rlsk Pol The charlty malntalns a rlsk reglster whlch flrstly identlfles all rfsks and then has a scorlng system to further Identify major risks. The Director of Finance and Resources is responsible for maintaining the register, which is reviewed monthly at SMT meetings. The CEO discusses serious risks with the Trustees and the relevant subcommittee who will then agree whether it should be subject to a board paper and discussion. Page 14 Martha Trust (A company limlted by guarantee) Trustees. report (contlnuad) For the year andad 31 December 2023 Reservos Pollc At 31 December 2022, the Trustees considered il appropriate to set free f8serves held to equivalent of at least four months expected general expenditure for one home (four and half months in previou5 year), which is in the region of £600,000. The free re88rv8s at 31 December 2023 amounted to £504.773. This is lower than our reserves policy. however action ha5 been made to rectify this with a surplu5 to date following the year end. Th8 Trustees will continue to review res8rv8s on a regular basis. in accordanc8 Wlth the Charity Commission guidanc8. Remunera lon and social investment ollc Martha Trust recognises the importance of a sound remuneration 8nd benefits policy when it comes to attracting and retaining highly skilled and motivated staff. This policy cannot stand still in isolation and must b8 reviewed regularly in absolut6 tarms and compared to other similar organisations to ensure its competitiveness. Staff should be rewarded in relation to.. The level of responsiblllty and the value placed on comparable jobs wlthin the Trust. The value placed on comparable jobs in the local area. In additlon lo an 8nnu81 inflation-linked revlew, regular reviews will b8 carried out by the Chlef Executlve in conjunction with the Home Managers lo ensu￿ that Martha Trust remains competitive in respect of Its pay and benefits policy generally. We do not currently undertake any social inveslment and hence have no policy for thls. Trusteo Declaratlon Each of the persons who are Trustees at the time when this Trustees, report is approved has confirmed that: So far as that Trustee Is aware, there is no relevant audlt Informatlon of which the charitable companls auditors are unaware, and That Trustee has taken all th8 Steps that ought to have been taken as a Trustee in order lo be aware of any relevant audit information and lo establish that the charitable company's auditors arg aware of that information. That Trustee had due regard to the Charity Commission's public benefit guidance when exercising any powers or duties to which the guidance is relevant. The board of Trustees welcomed the new Charity Govemance Code published in December 2020. The Trustees considered some of the new requirements of The Code aspirational and thus have faced constraints in immediately implementing all of its recommendations. N8vertheless, the board will continue to strive for continuous improvement, exploring possibilities for extending the range of skills and experience of existing trustees, recruiting where any shorffalls are identsfied. An independent board review is planned for 2024. Page 15 Martha Trust {A company Ilmltod by guarantee) Trustees. report {contlnued) For tha y•ar ended 31 Decembor 2023 Martha Trust is committed to evolving as an organisation to refiect the changing values and principles wlthin society. Approved by ord8r of the rnembers of the board of TTUStees and signed on their behalf by: Roger Walton Date.. 22 August 2024 Page 16 Martha Trust (A eompany Ilmlted by guarantee) Staloment of Trustees. responslbllltle8 For the year ended 31 December 2023 The Trustees (who are also the directors of the Charity for the purpos8s of company lawl are responsible for preparing the Trustees, report including the Strategic report and the financial statements in accordance with applicabl8 law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praetice). Company law requires the Tnjstees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satlsfied that they give a true and fair view of the state of affairs of the Charity and of ils incoming resources and application of resources, including its Incom8 and expenditure, for that pèriod. In preparing these financial statements, the Trustees are required lo.. select suitable accounting policlas and then apply them consistently; observe the methods and principles of the Charities SORP {FRS 1021: make judgements and accounting estimates that are reasonable and prudent; state whether applicable UK AcGounting Standards (FRS 1021 have been followed. subject to any material departure5 disclosed and 8xplalned in the financial stal8ments- prepare the flnancial statements on the going concern basis unless it is Inappropriate to presume that the Charity will continue in business. The Trustees are responslble for keeping adequate accounting records that are sufflclenl to show and explain the Charitls transactions and disclose with reasonable a¢Guracy at any time the financial position of the Charity and enable them to ensure that the financial Statements comply with the Companies Act 2006. They are also responslble for saf8guarding the assets of the Charlly and hence for taking reasonable sleps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenanc8 and integrily of the corporate and financial infomation included on the charitab18 company's website. Legislation in the United Kingdom governing the pr8paration and dissemin81ion of financial statements may differ from legl8lation in oth8r jurisdictions. Page 17 **Martha Trust** **(A company limited by guarantee)** ## **Independent auditors' report to the Members of Martha Trust** ## **Opinion** We have audited the financial statements of Martha Trust (the 'charity') for the year ended 31 December 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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: - give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Page 18 **Martha Trust** **(A company limited by guarantee)** ## **Independent auditors' report to the Members of Martha Trust (continued)** ## **Other information** The other information comprises the information included in the Annual report other than the financial statements and our Auditors' 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 the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinion on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees' report including the Strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements. - the Trustees' report and the Strategic report have been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report including the Strategic report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of Trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial 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 the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Page 19 **Martha Trust** **(A company limited by guarantee)** ## **Independent auditors' report to the Members of Martha Trust (continued)** ## **Auditors' responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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: Based on our understanding of the charitable company and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of noncompliance with laws and regulations related to safeguarding, health and safety, Care Quality Commission inspection reports and fundraising practices and employment law. We considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included: - Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety, Care Quality Commission inspection reports and fundraising practices) and fraud, and review of the reports made by management; and - Assessment of identified fraud risk factors; and - Challenging assumptions and judgements made by management in its significant accounting estimates; and - Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and - Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and - Reading minutes of meetings of those charged with governance - Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and - Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation. 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material Page 20 **Martha Trust** ## **(A company limited by guarantee)** ## **Independent auditors' report to the Members of Martha Trust (continued)** - misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees. - Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. ## **Samantha Rouse FCCA DChA (Senior statutory auditor)** for and on behalf of ## **Kreston Reeves LLP** Statutory Auditor Chartered Accountants Canterbury 22 August 2024 Page 21 Martha Trust (A company limited by guarantee) Statement of financial activities (incorporatlng Income and 8xpendltur8 account) For the year ended 31 December 2023 Unrostricted funds 2023 Re$lrlct•d funds 2023 Total funds 2023 Total funds 2022 Note Incomo from: Donations and legacies Charitable activities Other income 275,138 6.210,067 21,063 67.298 342,436 6,210,067 21,063 306,849 6,084.018 9,983 Total Incom• 6,506,268 67,298 6,573,566 6,400,850 Expendlture on: Raising funds Charitable activities 243,277 6,737,282 243,277 6,782,004 154,091 6,310,798 44,722 Totsl expendlture 6,980,559 44,722 7,025,281 6,464,889 Net movement in funds (474,291) 22,576 (451,715) 164,039) Reconclllatlon of fund8: Total funds brought forward Net movement in funds 4,460,588 (474,291) 612,960 22,576 5.073,548 (451,715) 5,137.587 164,0391 Total funds carrled forward 3,986,297 635,536 4.621,833 5,073,548 The Statement of financial activitles includes all gains and losses recognised In the year. The notes on pages 2510 44 fom part of thes8 financial statements. Page 22 Martha Trust (A company Ilmlted by guarantee) Reglstered number: 03467406 Balance sheet As at 31 December 2023 As r8Stated 2022 2023 Noto Flxod assets Tangib18 assets 11 4,691,045 4,753,318 4,691,045 4,753,318 Current assets Debtors C88h at bank and in hand 12 484,075 600,078 656,831 754,768 1,084.153 1,411,599 Créditors.. amounts falling du8 Wlthin one year 13 (586,0811 (468,458) Net currènt assets 498,072 943,141 Total assets less curront liabillties 5,189,117 5,696,459 Creditors.. amounts falling due after more than one year 14 (567,284) (622.911) Total not assets 4,621,833 5,073,548 Charlty funds Restrided funds Unrestricted fvnds 16 635,538 612,960 Designated funds General fvnds Revaluation reserve 16 16 3,278,389 503,773 204,135 3,272,715 983,738 204,135 Total unrestricted funds 16 3,986,297 4.460,588 Total funds 4,621,833 5.073,548 The Trustees acknowledg8 their responsibiliti8s for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The fi nGial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. ger Walton Chairman Date: 22 August 2024 The notes on pages 25 to 44 fom part of these financial statements. Page 23 Martha Trust {A company limited by guarantee) Statement of cash flows For the yaar énded 31 December 2023 2023 2022 Note Cash flows from operatlng aotlvltlog Net cash used in operating activities 19 98.641 51,313 Cash flows from Invosting actlvities Dlvid8nds, interests and rents from investments Purchase of tangible fixed assets (24,047) (171,443) (28,628) {72.966) Net cash used In Investing actlvltles (195,490) {101,5941 Cash flow8 from flnanclng actlvltles Repayments of borrowing (57,841) (252,6091 Not cash used In flnancing actlviti98 (57,841) (252,609) Change In cash and cash equlvalents In the year Cash and cash equivalents at the beginning of the year (154,690) (302,890) 754,768 1.057,658 Cash and cash equlvalents at the ond of tho year 20 600,078 754,768 The notes on pages 25 to 44 fomi part of these financial statements Page 24 Martha Trust (A company Ilmlted by guarantèe) Notes to the financial statements For the year ended 31 December 2023 General Informatlon Marlha Twst 15 a Charity. limi18d by guarantee, domiciled in England and Wales, registration number 03467406. The r8gist8r8d office is Hom8m8ad Lane. Hacklinge, Deal, Kent, CT14 OPG. Accountlng pollcles 2.1 Basis of preparation of financlal statements The financial statements have been prepared in accordance wllh the Charlties SORP (FRS 102) - Accounting and Reporting by Charib'es.. Statement of R8commend8d Practic8 applicable to charitiés preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republlc of Ireland {FRS 102) (effective 1 January 20191, the Financial Reporting Standard 8pplicabl8 in the UK and R8public of Ireland (FRS 102) and the Companies Act 2006. Martha Trust meets the definltlon of a publlc benefit entlty under FRS 102. Assets and Ilabllltles are initially recognised at historical cost or transaction value unless otherwise slated in the relevant accounting pollcy. The financial statements have been prepared lo give a 'true and fairf view and have departed from the Charities (Accounts and R8POrts) Regulations 2008 only to the exlenl required to provid8 a 'trust and fairf view. This departure has involved following the Charities SORP IFRS 1021 publlshed on 16 July 2014 rather than the Arxounling and Reporting by Charities,. Slalement of Recommended Practice effective from 1 April 2005 which has since b8en withdrawn. The charfty's functlonal currency is Pounds Sterling. The charitys financial statements are presented to the nearest pound. 2.2 Company status The charity is a company limited by guarantee. The members of the company are the Trustees named on page 1. In ihe event of the charity being wound up, the liablllty In resped of the guarantee is limited to £10 per member of the charity. 2.3 Fund accountlng General funds are unrestricted fund5 which are available for use at the discretion of the Trustee5 in fijrtherance of the general objectives of the Charlty and which have not been deslgnated 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. Restricted funds are funds which are to be used in accordance with specific restridions imposed by donors or which have been raised by the Charity for particular purposes. The costs 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. Page 25 Martha Trust (A company Ilmlted by guarantee) Notes to the flnanclal statement8 For the year ended 31 December 2023 Accounting policies (continued) 2.4 Income All income is r8cognised once the Charity has enkn'tlemant to the income, it is probable that th8 income will be received and the amount of income rec8ivabl8 can be measured reliably. For legacies, entitlement Is taken as the earlier of the date on which either,. the charity 15 aware that probate has b8en granted, the estat8 has b88n finalisèd and nolification has beèn made by the executorls) to the Trust that a distribution will be made, or when a distrtbution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor,'s intention lo make a distribution. Where legacies have been notified to the charity, or the Ghadty Is aware of the granting of probate, and the criteria for income wognition have not been met, then the legacy Is treated as a contingent asset and disclosed if material. Gifts in klnd donated for dlstdbutlon are Included at valuation and ￿cOgnised as Income when they are distributed lo the proj8Cts. Gifts donated for resale are included as income when they are sold. Donated facilities are induded at the value to the charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers. Donated services or facllities are recognlsed when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount il would have been willing to pay to obtain services or facilitias of 8quivalent economic benefit on the open market; 8 corresponding amount is then recognised in expenditure in the period of receipt. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the tlme of the donation. Income tax recoverable Sn relation lo investment income is recognls8d at the time the Investment Income is recelvable. Other income is recognised in the period in which it Is r8C8ivable and to the ext8nt the goods have been provided or on completion of the service. Page 26 Martha Trust (A company Ilmlted by guarantee) Notes to thé financial Statements For the year ended 31 Decomber 2023 Accountlng pollclas {contlnued) 2.5 Exp8nditure Expenditure is recognised once there is a legal or constructive obligation to transfer @conomic b8n8fit to a third party. il is probable that sett18ment will b8 required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated lo the applicable expenditure headings, Fundraising costs are those incurred in seeking voluntary contributions and do not include thè costs of disseminating inforrnation in support of the charitable activities. Support costs are those costs incurred directly in support of expanditure on the objects of the charity and include project managernent carried out at the Headquarters. Gov8manc8 Costs ar8 thos8 incurr8d in connedion with administration of the charity and compliance with constitutional and statutory requirements. Expenditur8 on raising funds includes all expenditure incurred by the Charlty to raise funds for its charitable purposes and includes costs of all fundraising activities •v8nts and non-charitable trading. Expendlture on charltable activities is incurred on directly undertaking the activities whlch further the Charitys oblectlves, as well as any associated support costs. Irrecoverable VAT is charg8d agalnst the expenditure heading for which it was Incurred. 2.6 Golng concern The charity has a net deficit of £451,715 during the year ended 31 Decemb8r 2023. The adverse impacl of underfunding from our major funding authorities and high staff vacancies resulting in substantial agency cost were a cause of concern for the majority of 2023, however these issues have now larg8ly been addressed. Work is in hand to mitigate these issues and, as 8 consequence, the Trust8es have a reasonable expectation that the charity has adequate r8sources to continue In operational exlstence for the foresoeable future. For this reason, they continue to adopt the golng concern basis in preparlng the financial statements. 2.7 Government grant8 Govemrn8nl grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activit18s over the expected useful lives of the assets concerned. Other grants are credited lo the Statement of financial activitles as the related expenditure is incurred. 2.8 Tanglble fixed a88Ot8 and depreclatlon Tangible fixad assats costin9 £1,000 or more arg capitalised. Tangible fixed assets are carried at cost or deemed cost, net of depreciation ané any provision for impairment. Deemed cost represents the fair value of certain freehold properties owned by the charity, at the date of Iran%itinn lo FRS 102, 1 JAniAary ?n14. 1 Indfir thR r,n.qt mndft, frftAhnld property will not bè subject to further valuations. Page 27 Martha Trust (A company Ilmited by guarantee) Notes to the flnancial statements For the year ended 31 Dac8mber 2023 Accounting policies (Gontinued) 2.8 Tangible flxed assets and depreciation Icontlnued) Depreciation is not charged on freehold land. Depreciation is provided from when assets become available for use at rates calculated to writ8 off the cost or deemed cost of fixed assets, less their estimated resldual value. over their expected useful lives on the followlng bases- Freehold property Motor v&hicl8S Fixtures and fittings Fi¥gl iuld laiid 20/0 straight line 200/0 Straight line 100/0 - 200A straight line Iiul d8prF)Li(Itgd Th8 assets, residual values, useful liv8s and d8pr8ciation methods ar8 révièwéd, and adjusted prospectively if appropriate, or if there Is an indication of a significant chang8 Since the18St reportlng date. 2.9 Intergst recelvable Interest on funds held on d8POSIt is included when receivable and the amount can be measured reliably by the charity,. this is normally upon nolificalion of the interest paid or payable by the Bank. 2.10 Operating lea8e8 Rantals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term. 2.11 Debtors Trade and other debtors are recognised at the settlem8nt amount after any trade discounl offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.12 Cash at bank and In hand Cash at bank and in hand includes cash and short-temi highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or Similar account. 2.13 Crndltors and provlslons Creditors and provisions are recognised when the charity has a pres8nt obligation ￿SUlting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Cr8ditors and provisions are normally recognised at their sattlement amount aftèr allowing for any trade discounts due. 2.14 Flnanclal Instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using th8 effectiv6 interest method. Page 28 Martha Trust (A company limited by guarantéa} Notes to the flnanclal statements For the year ended 31 December 2023 Accounting policies (continued) 2.15 Judgements In applylng accounting policies and key sources of estimatlon uncertainty The preparation of the fin8ncial statements r8quired the Trust8es to make judgements. estimates and assumptions that can affect the arnounls reported for assets and liabilities, and the results from the year. The nature of estimation is such though that actual outcomes could differ significantly from those estimates. The following judgement has had the most significant impact on the amounts recognised In the financial statemenls.. Th8 charity has recognised tangible fixed assets with a carrying value of £4,691,045 at the reporting date (see note 11)- These assets are stated at their cost less provlslon for depreciation and impaim)ant. The charivs accounting policy sels out Ihe approach to calculating depreciation for irnmalerial assets acquired (see note 2.8). For material assets such as land and buildings the Charity determines al acquisltion reliable estlfflates for the useful life of the asset, Its residual value and decommissioning costs. These estimates are based upon such factors as the exp8Ct8d use of the acquired asset and market conditions. At subsequent reporting dates the Trustees consider whether there are any factors such as technologlcal advancement5 or changes In market conditions that IndiGate a need to reconsider the estimates used. Where there are indicators that the carrying value of tangible assets may be Impalred the charity undertakes tests to detemine the recoverable amount of assets. These tests require estimates of the fair value of assets less cost to sell and of Iheir value in us8. Wherever possible the estimate of the fair value of assets is based upon observable market prlces less incremental cost for disposing of the asset. The value in use calculation is based upon 8 discounted cash flow model, based upon th8 charitys forecasts for the foreseeable future which do not include any ￿structU￿ng activities Ihal the charity is not yet committed to or significant future investments that will enhance the asset's performance. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well expected future cash flows and the growth rate used for extrapolation purposes. 2.16 Penslon$ The charily operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year. Paga 29 Martha Trust (A company limited by guarantee) Notes lo the financial statements For the year ended 31 December 2023 Income from donatlons and legacles Unre8trlct8d Re8trfcted funds funds 2023 2023 Total funds 2023 Total funds 2022 Donation5 Grants 275,138 17,116 50,182 292,254 50,182 264,945 41,904 Total 2023 275,138 67,298 342,436 306,849 Total 2022 247,071 59,778 306,849 Income from charitable a¢tlv11108 Unrn8trlctod Rostrlcted fund$ funds 2023 2023 Total funds 2023 Total funds 2022 Residential and day care fees Covld-19 fees 6,210,067 6,210,067 6,026,230 57.788 6,210,067 6,210.067 6,084,018 Total 2022 6,026,230 57,788 6,084,018 other Incoming resources Unrestrlcted funds 2023 Total funds 2023 Total funds 2022 Other 21,063 21,063 9,983 Total 2022 9.983 9,983 Page 30 Martha Trust (A company limited by guarantee) Notes lo the flnan¢lal statements For the year ended 31 December 2023 Expendlture on ralslng funds Costg of ralsing voluntary income Unrestrlctod funds 2023 Total funds 2023 Total funds 2022 Events and publlclty costs Events and publicily Costs - gift in kind Legal and professional General office costs Maintenancelutilitieslsundry Salarles to generale income 44,757 69,700 2,431 2,186 1,911 122,292 44,757 69,700 2,431 2,186 1,911 122,292 50,348 2,287 2,778 1,892 96,786 Total 2023 243,277 243,277 154.091 Total 2022 154,091 154,091 Analys18 of •xp•ndltur• on charltable actlvltle8 Summary by fund type Unrestrlcted Re$lrlct•d funds fund8 2023 2023 As restated Total 2022 Total 2023 Residential and day care costs 6,737,282 44,722 6,782.004 6,310,798 Total 2022 as reststod 6,183,340 127,458 6,310,798 Page 31 Martha Trust IA company Ilmlted by guarantèe) Notss to the flnanclal Statements For the year ended 31 December 2023 Analysis of expenditure by actlvllles Actlvltles undertaken dlrectly 2023 Support costs 2023 Total funds 2023 Total funds 2022 Residential and day care costs 6,198.827 583,177 6,782,004 6,310,798 Total 2022 5,755.453 555,345 6,310,798 Analys1$ of dlrgct costs Resldentlal and day care 2023 Total fund8 2023 Total funds 2022 staff costs 4,051,056 213,374 1,934,397 4,051,056 213,374 1,934.397 3.601,651 207,549 1,946,253 Depreciation E$tablishmenl costs Total 2023 6,198,827 6,198,827 5,755,453 Total 2022 5,755,453 5,755,453 Page 32 Martha Trust {A company limiled by guaranteel Notes to the flnanclal statements For the yèar ended 31 December 2023 Analysls of expendlture by activltles (contlnued) Analysis of support costs Residential and day car8 2023 Total funds 2023 Total funds 2022 Wages and salaries Depreciation Establishment costs Travel and subsistence Insurance Maintenance. cleanlng and repairs Print, post and stationery Telephone and fax Operating lease rentals and equipmenl Staff training Gen8ral expense5 Bank charges and interest IT Costs Legal and professional fees Publicity and communicatlons Govemance costs 455,229 17,241 75 5,112 5,780 13.784 2,961 2,032 878 3,328 1,777 3,135 836 52,770 3,635 14,604 455,229 17,241 75 5,112 5,780 13.784 2,961 2,032 878 3,328 1.777 3.135 836 52,770 3,635 14,604 447,386 17.953 29 7,924 2,475 14,153 1,988 1.478 1,498 10,234 1,815 1,867 2,255 29,340 2,950 12,000 Total 2023 583,177 583,177 555,345 Net Incom￿(expend1tUr0) This is stated after charglng: 2023 2022 Depreciation of tangible fixed assets.. - owned by the charity Auditors, remuneration - audit Operating lease rentsls 230.439 225,502 12,276 878 12,000 1.498 During the year, no Trustees re￿iVed any remuneration (2022.. £NIL). During the year, no Trustees received any benefits in kind (2022.. £NIL). One Trustees received a ￿1MbUr5ernent of travel expenses totalling £105 in the current year, (2022: £89 paid to one trustee). Page 33 Martha Trust (Acompany limited by guarant801 Notes to the finan¢lal slatements For the year endad 31 December 2023 10. Staff costs 2023 2022 Wages and salaries Social security costs Contribution to defined contribution pension schemes 4,154,053 363,743 110,781 3,743,271 337,285 65,267 4,628,577 4,145,823 No termination payments were made during the year (2022: £Nill included wlthin wages and salafies. The average number of persons employed by the Charity during the year was as follows: 2023 No. 2022 No. Employee5 173 169 The number of employees whose employee benefits (exduding employer pension costs) exceeded £60,000 was.. 2023 2022 In th8 band £60,001- £70,000 In the band £70,001- £80,000 The total salaries received by key management personnel was £296,951 12022.. £277,405>- Employer pension contributions wer8 a total of £13,235 12022.. £11,291) and employer national insurance contributions were a tot81 of £34,21912022'. £30,044). Page 34 Martha Trust (A company Ilmlted by guarant88) Notes lo the financial statements For the year ondod 31 December 2023 11. Tangiblo fixed assets Freehold property Motor Flxtur8s and vehicles litting8 Total Cost or valuatlon At 1 January 2023 Additions Disposals 6,260,745 136,462 1,404,715 171,443 (36,713 7,801,922 171,443 136,713) At 31 December 2023 6,260,745 136.462 1,539,445 7,936,652 O•pr•clatlon At 1 January 2023 Charge for the year On disposals 1,887,732 116,168 116,262 5,043 1,064,610 109,404 (33,612) 3,048,604 230,615 133,612) At 31 December 2023 1,983.900 121,305 1,140,402 3,245.607 Net book valuo At 31 December 2023 4,276,845 15,157 399,043 4,691,045 At 31 December 2022 4,393,013 20,200 340,105 4,753,318 Included in land and bulldlngs Is freahold land at a valuation of £716,575 {2022'. £716.575>, which is not depreciated. The Charlty has adopted a policy of deemed cost for tangible fixed asse15. Had these assets been measured at historic cost, the carrying values would have been as follows.. 2023 At cost: At valuation: 1998 at open market value 6,056,610 204,135 6,260,745 Page 35 Martha Trust (A company limitsd by guarantèé) Notes to the financial statements For the yaar ended 31 December 2023 11. Tanglble fixed assets (contlnued) Included in the net book valu8 of property displayed above ar8 the following amounts ascribable to land: 2023 2022 Cost Accumulated depreciation 6,056,610 6,056,610 (1,798,704) (1,690,252) 4,257,906 4,366,358 12. Debtor8 2023 2022 Trade debtors Other debtors Prepayments and accrued income 444,611 8,754 30.710 556,109 10,933 89,789 484,075 656,831 13. Creditors: Amounts falling duo Within onè y•ar 2023 2022 Barclays Mortgage Charity Bank Loans Trade ¢￿ditOrS Other taxation and social security Other Creditors Accruals and deferred income 26,508 32,219 163,036 87,884 66,163 210,271 23,496 37,445 118.032 81,275 48,587 161,623 586,081 468,458 Deferred Income Deferred income as at 1 January 2023 is £70,009. There have been resources deferred during the year of £68,802. £70,009 has been released relating to deferred income in prévious years. The def8rred income a5 at 31 December 2023 is therefore £68.802. Deferred income is in relation to fees r8C8ived in advance. Page 36 Martha Trust (A company limited by guarantee) Notes to the flnanclal statements For the year ended 31 December 2023 14. Credltors: Amounts falllng due after moro than ono yéar 2023 2022 Barclays Mortgage Charity Bank Loans 80,933 486,351 104,320 518.591 567,284 622,911 The aggr8gat8 amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is.. 2023 2022 Repayable by installm•nts 337,107 358,931 337,107 358,931 The Barclays Mortgage is secured by way of a charge over the Charit￿s land and buildings at Martha Hous8. The mortgage is ￿paYable in installm8nts until 2028 for £107,441. During the year, the mortgage bore interest at a flexible rate of 1 % over the Barclays Base Rate. Charity Bank holds a fixed legal charge ov8r th8 fr8ehold propety that is Mary House in Hastings. The two loans are repayable by way of the following.. Charlty Bank loan 2 is repayable in installments until 2033 and bears interest at a rate of 4.4Vo. The outstanding balance of this loan as at 31 December 2023 was £352.593. Charity Bank loan 3 is repayable in installmenls until 2037 and bears Interest at a rat8 of 4.4%. The outstanding balance of this loan as at 31 December 2023 was £165,976, 15. Prior year adjustments A prior year adjustmenl has been recognised in relation lo the allocation of Covid-19 expenditure baiween restricted funds and unrestricted funds. It was id8ntified that th8 Covid expenditure in prior y8ars should be allocated to the restricted fund for Local Authority grants In relation to Covid-19 and had been incorrectly allocated as unrestricted expenditure. Due to the material nature of the misallocation, the financial statements have been adjusted accordingly. Th8 adjustment ha5 not impacted the surplus of the charlty- The impact is a decrease to unrestricted expenditure by £39.421 and to increase restricted expenditure by £39,421 in the prior year, and an increase to unrestricted funds brought foThvard by £133,516 and to decrease restricted funds brought forward by £133,516 as at 1 January 2022. Page 37 Martha Trust (A company Ilmitéd by guarantee) Notes to the financial statements For the year onded 31 December 2023 16. Statement of funds SLitsment of funds - current year Balance at 31 December 2023 Balanco at 1 January 2023 Transfers Inlout Income Expendlture Unrestrlcted funds Deslgnated funds DA8ignatad fixfid ASSAt fund 3,272,715 5,674 3,278,389 General funds General Funds Revalualion reserve 983,738 204,135 6,506,268 16,980,559) (5,674) 503,773 204,135 1,187,873 6,506,268 (6,980,559) (5,674) 707,908 Total Unrostricled funds 4,460,588 6,506,268 (6,980,559 3.986,297 Restrlcted fund8 Frances House Mary House Mary House ICT Mary House Misc Martha House Deal Water Garden Deal Staff Fund Core Restricted Frances House Misc Stsff Christmas Fund Thera Trainer Dave Poke Memorial Fund Rainbow Table 230,001 350,000 2,278 6,620 3,237 230,001 350,000 2,278 8,087 1,527 23 2,750 50 50,183 525 3,490 6,750 (60) (3,260) (2,750) {891) 130,606) (465) (2,345) 2,890 10,743 480 1.035 2,049 30,320 540 2,180 6,750 3,100 231 3,100 2,576 2,000 {4,345) 612.960 67.298 (44,722) 635,536 Total of funds 5,073.548 6,573,566 (7,025,281 4,621,833 Page 38 Martha Trust (A company Ilmltod by guarant80) Notas to Ihe financial statements Forthe year endod 31 December 2023 16. Statement of funds {cantlnued) ststomont of funds . prlor year Balance at 31 Gains1 December (Losses) 2022 Balance at 1 January As r8sta18d As restated 2022 Income Expenditure Unre$trl¢ted funds Deslgnated funds Designated fix8d assat fund 3,160,190 112,525 3,272,715 G•n•ral funds General Funds Revaluation reseNe 1,148,735 204,135 6,283,284 (6.335,756) (112,525) 983,738 204,135 1,352,870 6,283,284 (6,335,756) 1112,525) 1,187,873 Total Unrostrlctod funds 4.513.060 6,283.284 (6.335,7561 4,460,588 Restrlcted funds Frances House Mary House Mary House Vehicle Mary House ICT Mary House Misc Martha House Deal Staff Fund Core Restricted Staff Christmas Fund Local Authority- Covid-19 Dave Poke Memorial Fund Bladder Scanner Rainbow Table Deal Garden 230,556 350,000 16,200 3,075 5,618 2,314 2,862 5,000 10 (851 230,481 350,000 (16,200) 1797) {2,926) (8481 (1771 {36,1611 11,750) (57,788) 2,278 6,620 3,237 2,890 10,743 1,035 3,928 1,771 205 41,904 2,785 57,788 3.100 5,800 3,100 (5,8001 {4,0991 (2,5001 6,675 2.500 2,576 624,525 117,566 (129,131) 612.960 Total of funds 5,137,585 6,400,850 (6,464,887) 5.073,548 Page 39 Martha Trust (Acompany limited by guarantee) Notes to the financial statements For the year anded 31 December 2023 16. Statement of funds {contlnued) Designated lixed asset fund This represents the book value of fix8d ass8ts less any associated liabilities and are not deemed to be freely available funds by the Tru51ees. Deslgnated bulld fund The designated build fund represents the charills own flnancial investment in the development of Mary House. Frances House In 2007 £230,000 was donated by the Developm8nt Trust towards the ext8nsion al Frances House which provided three new places. This donation carries a restriction for a p8riod of 21 years and requires that those three new residents at Frances House must not have prevlously Ilved at any other Martha Trust home. Tha restriction is secured by way of a legal charge over the property. In the opinion of the Twstees this criteria will be met and the likelihood of having to repay the money is considered remote. Mary Housa (l) Thi5 fund includes a donation of land and buildings in Hastings frorn The Agape Trusl In 2004. The use to which the lanrj and buildings could be put was restricted by the original donors. Blatchington Court Trust. The r8Striction r8quir8s Martha Trust lo provide homes for a period af 99 years and al any one lime at least four resldents must be people und8r 31 years. of whom at least two must be visually impaired. Thls restrlction applies to Martha Trust as a whole and not to Mary House individually. If this restrlction is breached £350,000 is repayable to Blalchington Court Trust. In the opinion of th8 Trusl88S this crileria will be met and the likelihood of having to repay the money is consider8d to be remote. These restrictions will be waived on Martha Trust meeting certaln crlteria. {lil The remainder of the fund represents ongoing donations we have been receivlng for the benefit of Mary House. Martha Houge This fund represents ongoing donations we have been receiving for the benefit af Martha House. Deal Water Gardon This fund represents donation5 made to fund a water feature gard8n at Martha House. Deal Staff Fund This fund is for donations r8C8iv&d towards staff entertainment. Core restrlcted Thls fund has been set UP lo secure Core funding for ongDing costs we face as a charity, such as specialist equipment, training and the cost of providing activities to our residents. Grants secured from multiple fund8r Page 40 Martha Trust (A company Ilmlted by guarantee) Notes lo the flnanclal statements For thè year ended 31 Docomb8r 2023 Staff Chrl8trnas Fund This fund represents donations from families and Trustees for th8 purchase of gift cards. COVID Funds There are four funds that represenl grants receivéd to enable the charity to purchase n8cessary PPE and equipment durlng COVID-19. Davo Poke Memorlal Fund Donations were raised In memory of tha parent of one of the residents at Mary House. The f8mily are considering us8 of the funds either towards a sensory garden or as a bursary for specialist trainlng to support adults with PMLD. Mary House Vohlcle We successfully fundr81sed for an adapted vehicle for our home in Hastings, Mary House. This vehlcle now plays an integral role in our residents lives, enabling them to go out on an individual basis for medical appointm8nts and trips out as an alt8rnalive lo the use of the communal minibus. Bladder Scanner We successfully raised funds lo purchase 8 bladder scanner and associated tralning that was needed. With the use of this diagnostic aid we will be able to scan and measure the volum8 of urine within the bladdèr so avoiding the use of unnecessary catheterization,. reduc8 the rates of urinary tract infection due to Incomplete emptying and help to manage Incontinence. This piece of equipment will allow us to better support our residents health and wellbeing. Ralnbow Table Our appeal, to purchase Rainbow Tables for our Deal homes proved popular with funders. These interactive touch screen multipurpose tablets are the perf8Ct addition to our activity offering at Martha. And, we successfully ended the year completlng the appeal with granls pending paym8nt and one Rainbow Table purchased. D•al Gardon A number of r8Stricled monies were received for use lo enhance our gardens at our Deal homes, raised through In memory donations and a grant lo support a volunteer day by 8 team from Swiss Re. Thera Trainer The Thera Trainer15 a piece of physio equipment with a range of benefits such as improved circulation, building muscle tone and bone denslty and improves the range of movement in residents arm5 and18gs as well a5 b8ing lots of fun to use. Transfers During the year, the Trustees have designated funds representing the book value of the fixed assets less any associated borrowings as these are not d8emed to be freely available funds by the Trustees. Pagè41 Martha Trust (A company Ilmlted by guarantee) Notss lo the flnanclal statements For thè year ended 31 December 2023 17. Summary of funds Summary of funds - current yaar Balanca at 31 December 2023 Balance at 1 January 2023 Transfers Inlout Incomo Expendfturn Designated funds General funds R8Strlcted funds 3,272,715 1,187,873 612,960 5,674 (5,674) 3,278,389 707,908 635,536 6,506.268 (6,980,559) 67,298 (44,722) 5,073,548 6,573,566 (7,025,281) 4,621,833 Summary of funds - prlor y•ar Balance at 31 Gainsl Dec8mber (Losses) 2022 Balance at 1 January As resiated As restated 2022 Income Expenditure Designated funds General funds Restricted funds 3,160,190 1,352,870 624,525 112.525 6,283,284 16,335,756) (112,5251 117,566 (129,131} 3,272,715 1,187,873 612,960 5,137,585 6,400,850 16,464,887) 5,073,548 18. Analysls of not aSSOt$ botwo•n funds Analy$ls of nel assets between fund8 - currant year Unrestrlcted Restricted funds funds 2023 2023 Totsl funds 2023 Tangible fixed assets Currenl assets Creditors due within one year Creditors due in more than one year 4,108,766 1,030,896 (586,081) (567,284) 582,279 53,257 4.691,045 1.084,153 (586,081) (567,284) Total 3,986,297 635,536 4,621,833 Page 42 Martha Trust IA company limlted by guarantee) Notes to the financlal statements For the year 8nded 31 December 2023 18. Analy$i$ of net assets between funds (continued) Analysis of nol assets between funds - prlor year Unrestri¢ted funds 2022 Restricted funds 2022 Total funds 2022 Tangible fixed assets Current assets Creditors due within one y8ar Creditors due in more than one year 4,160.702 1,216,645 1468,458) {622,911) 592,616 194,954 4,753,318 1,411,599 (468,4581 (622,9111 Total 4,285,978 787,570 5,073,548 19. Rgconclllatlon of net movement In funds to net ¢a8h flow from operatlng actlvltlos 2023 2022 Net expenditure for the year (as per Statement of Financial Activities) (451,715) {64,039) Adjustments for: Depreciation charges Dlvidends, interests and rents from Investments Loss on the sale of fixed assets Decreasellincrease) in debtors Increasel(decrease) in creditors 230,615 24,047 3,101 172,756 119,837 225,503 28,628 2,532 (118,6911 (22,620) Not cash provlded by oporatlng actlvitles 98,641 51,313 20. Analysls of cash and cash equivalents 2023 2022 Cash in hand 600.078 754,768 Total ¢ash and Cash equlvalents 600,078 754,768 Page 43 Martha Trust {A Company limited by guarantee) Notes to the financial statements For the year ended 31 December 2023 21. Analysls of changes In net debt At31 December 2023 January 2023 Cash flows Cash at bank and in hand D8bt due within 1 year Debt due after 1 year 754,768 (60.941) (622,911) (154,690) 2,214 55,627 600,078 (58,727) 1567,284) 70,916 (96,849) (26,933) 22. Pen$lon Qommltmonts The charity operates a defined contribution pension scheme. The assets of the scheme are held separately frorn those of the group in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £110,781 12022: £65,267). Contributions totaling £17,748 {2022.' £15,072) wer8 payable to the fund al the balance sheet date and are included in credllors. 23. Operating lease commltmont8 At 31 December 2023 the Charity had commitments to make future minimum lease payments under non- cancellable operating leases a8 follows.. 2023 2022 Not lat8r than 1 year Later than 1 year and not later than 5 years Later than 5 years 32.356 57,350 1,399 32,509 60,559 3,221 91,105 96,289 24. Related party transactions During the year ended 31 December 2023 donations totaling £1,345, plus Gift Aid totalling £225 (2022.. £2,219) were received from Trusleas. 25. Controlling party The charity is a company limlted by guarantee and was controlled throughout the year by the board of Twstees. Pag8 44