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2020-12-31-accounts

ANNUAL REPORT & ACCOUNTS For the year ended 31 December 2020

Registered Charity No. 1072334

Care for Veterans

How the funds have helped

How the money came in

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4.4%
26.2%
52.2%
17.3%
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How the money went out

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5.1%
0.1%
94.8%
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Charitable activities

Charitable activities

Donations and fundraising events

Fundraising costs

Legacies

Investment and other income

Investment and other income costs

Total income £6.01m

Total expenditure £5.03m

Contents

Chairman’s Report……………………………………….…………… 3 Report of the Trustees and Strategic Report……………. 4-16 Independent Auditors’ Report………………………………….. 17-18 Consolidated Statement of Financial Activities………… 19 Balance Sheets………………………………………………………….. 20 Consolidated Statement of Cash Flows……………………. 21 Notes to the Consolidated Accounts……………………….. 22-37

. Group Trustees Report and Strategic Report Care for Veterans

CHAIRMAN'S REPORT

I am pleased to provide a foreword to this report for 2020 for Care for Veterans (CfV), a year like no other. The report for 2019 was delayed until September last year due to the impact of COVID-19. This has affected all of us at CfV, both in our professional and domestic lives and routines. So much has been written on this subject across the world and you will read more from the CEO, Andy Neaves, about the impact on CfV in his annual report and about the financial position. However, it is testament to the extreme measures which were put in place, and rigorously implemented by all those who work on the site in a variety of capacities, that we maintained the highest level of care and service to the residents. This was achieved without a single case of COVID-19 and there were no deaths attributable to the pandemic in 2020.

2020 could have been a devastating year for CfV, but this was not the case. There were so many challenges to overcome, not least by limiting the number of people who could either work at or visit the home. New ways had to be found to maintain business continuity so that the charity could continue to function. For example, new IT systems were procured so that those who had to work from home could do so effectively; this worked extremely well and to everyone’s benefit.

However, the clinical and facilities staff did not have that option and continued to work on site throughout and deserve the highest accolade for their supreme efforts. If 2020 proved anything, it certainly reinforced the evidence that people will always rise to the challenges which unforeseen events demand. I cannot speak highly enough of the resilience, which was shown, and the results achieved in 2020 underpin this. Staff illness was very low, and we ended the year in the best financial situation we have seen for some years.

In addition, a number of essential upgrades and work programmes were undertaken, within the restrictions imposed as a result of COVID-19, including the start of a programme to divide the existing double rooms into singles. This work is well on track and should be complete in 2021. This will enable us to return resident numbers close to the maximum capacity of 60.

Finances are always tight but there was a noticeable step change in 2020 to place the accounts into surplus. There were significant legacies, with the promise of more to come in 2021. But excellent work has been set in train by the Head of Fundraising and Marketing, James Bacharew, to switch from traditional fundraising methods raised through events to the full exploitation of digital options, which has already proven to be very successful. This does not mean that financial pressures have disappeared; far from it. But the accounts in this report highlight how a variety of measures to raise income and funds whilst reducing costs are beginning to bear real fruit. The CfV website has been upgraded at https://www.careforveterans.org.uk/ and there is a section in this report which highlights the various ways in which we raise funds. As always legacy income is a very important part of this process and I am extremely grateful to all those who have so generously included CfV in their Wills. I would like to take this opportunity to encourage individuals who are reviewing their Wills to consider including CfV in them.

With reserve levels maintained, my fellow Trustees and I are continuing to work closely with the management team to examine further innovative new ways to reduce our costs and to develop the capabilities of CfV. I am very grateful to all those who have contributed to this work to ensure the long-term viability and sustainability of CfV.

CfV depends on its people. We are lucky to have a very strong team working together to produce the very best results and we were able to demonstrate our commitment to them in various ways, including through individual advent calendars in the run up to Christmas. Staff numbers remain high and great efforts are being made to ensure that we retain staff. Considering the pandemic pressures, I can only reiterate the admiration of the Board of Trustees for everything which has been done by everyone to make 2020 a surprisingly successful year, as some might say against all the odds. There is a real sense of pride in what has been achieved, which is very well deserved.

Finally, I would like to highlight how difficult the measures we have had to put in place have been for the families and friends of the residents. The fact that these measures were successful will be no consolation to those who were not able to spend time with their loved ones, despite some innovative methods we introduced, like the visit pods. I can only reiterate my gratitude to our residents' families for their understanding and patience as we manage the risks in the home. This has not been easy, and I fully appreciate the additional pressures this has brought on family members.

2020 was different. There were highs and lows, particularly the death of Elizabeth Baxter soon after her retirement as Head of Fundraising and Marketing, which was a tragic loss. Let us all hope that the early signs of controlling the pandemic continue to flourish to allow CfV to continue to provide the highest standards of care and a thriving charity.

James Fanshawe CBE

Chairman

. Group Trustees Report and Strategic Report Care for Veterans

TRUSTEES REPORT

Report of the Trustees for the year ending 31 December 2020

The Trustees present their annual report and audited financial statements of the charity for the year ended 31 December 2020. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" (FRS 102) in preparing the annual report and financial statements of the charity. This is also a Directors report for company law. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic (FRS 102) (effective 1 January 2015).

OBJECTIVES AND ACTIVITIES

As a result of the appallingly high number of disabled veterans returning from the First world war the charity was established in 1919 to care for physically disabled members of HM forces who had been discharged from the Armed Forces, providing their first steps in rehabilitation, including physiotherapy and occupational therapy. The objects of the charity have since been extended and are currently:

“Provide permanent or respite accommodation, end-of-life care and outpatient care for former members of the British Armed Forces and their families, who are-in-need of such care by reason of age, sickness or disability and who require nursing care or rehabilitation”.

Ensuring our work delivers our aims:

There is an annual review of the Home’s objectives and activities which considers our work in the previous 12 months, measuring the success of those goals and the benefits they have brought to our residents. The review also ensures that our aims, objectives, and activities remain within the constraints of our stated purpose.

We have referred to the guidelines in the Charity Commission’s General guidance on Public Benefit when reviewing our aims and objectives and in planning our future activities. The Trustees consider how planned activities will contribute to the aims and objectives they have set.

Our Ethos

Care for Veterans (CfV) considers applications from service veterans, their families, irrespective of their geographical location within the United Kingdom.

Following an application CfV will undertake a triage assessment of the potential resident to ensure that their condition is of a nature that Care for Veterans are both safe and capable of managing.

CfV accepts residents who are funded from a variety of sources – namely Self-funders; Clinical Commissioning Groups (continuing care cases); Local Authorities (Social Services); and War Pensioners (Service Personnel and Veterans Agency).

The cost of care provided to residents at CfV is subsidised by the charity, thanks to the generosity of its many supporters and donors.

We help our residents in the following way:

Our medium to long-term strategy is:

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. Group Trustees Report and Strategic Report Care for Veterans

STRATEGIC REPORT

REVIEW OF BUSINESS

Financial review

2020 was dominated by COVID-19 and the threat remains. With strict guidelines on admitting new residents and with the added concerns about sending family members to nursing homes, CfV income from fees was reduced during 2020. The total fee income for care amounted to £3.14m which represents a reduction from 2019 (£3.39m) due to the reduced occupancy levels during the year as a result of COVID-19. The funding came in the form of funding directly from the residents and other funding organisations (principally local authorities and NHS continuing care). The admittance of new residents was also hampered by the lack of single rooms available. CfV had ten double rooms, which during the pandemic proved extremely challenging to fill due to social distancing and the increased risk of passing infections. A review took place of the requirements and options to change the existing double rooms into single. The board approved the work to start the conversion process for each of the rooms when it was possible. This work began at the end of 2020 and the first room had been completed by the end of 2020. It is anticipated that the remaining double rooms will be converted to single rooms within 24 months.

CfV undertook a planned review of all staffing departments with the emphasis on improving the service provision efficiency and creating a flexible workforce where possible. These reviews also had the requirement to continue to provide the high levels and quality of care and facilities to the residents of CfV. As a result of these reviews the total cost of providing the high level of care to the residents amounted to £4.77m in 2020. This represents a reduction overall of just under 5% (from £4.97m in 2019). The process of creating a sustainable service for the long-term continues.

The total voluntary income amounted to £2.54m (2019: £1.16m). This represents a considerable increase on 2019. A substantial part of this came from legacy income. Legacy income provided £1.57m in 2020, of which one single legacy accounted for a large proportion of this, against £266k in 2019, and this came at a time in 2020 when there was considerable concern over the likely sources of voluntary income in 2020. Many new funds were setup in light of COVID-19 and CfV was very successful in obtaining some of these funds. The incredible generosity of individuals in recognising CfV in their Wills has led to a positive future during what has been a very difficult year for everyone.

CfV finished the year strongly with a recovering investment portfolio, successful trust applications and the reduction in overheads as a result of the service review during the year.

Focus continues, on increasing the supporter base and with strength of committed fundraising staff we hope to continue with the overall success of 2020 in the coming years.

A summary of the charity's strategy is set out in the Trustee’s report, and details of the Charity's results for the year are set out in the Statement of Financial Activities (page 19).

ACHIEVEMENTS AND PERFORMANCE 2020

OBJECTIVE: Provide the residents with high grade accommodation and excellent clinical care.

OUTCOME: Care for Veterans has 60 beds. The rooms are spacious allowing for care to be delivered at the bedside if required. Approximately half the rooms have en-suite facilities and for the others there are shared ablutions which were fully refurbished to provide wet rooms and large toilet cubicles with hoists. There are numerous large communal areas including the wellbeing hub, dining room and day room. The charity continues to provide high quality nursing care with a focus on disability nursing. The Home offers on-site physiotherapy, occupational therapy and speech and language therapy.

OBJECTIVE: Continue to improve end-of-life care to maintain platinum status.

OUTCOME: Care for Veterans continue to maintain links with many organisations to ensure that the end-of-life care offered at the home is of the highest standard. The platinum status is the highest award possible and demonstrates a commitment to excellence in this area. This was reflected in Care for Veterans being a finalist in the ‘Care Home of the Year’ for end-of-life care in England.

OBJECTIVE: Continuing with the environmental strategy to reduce costs and demonstrate environmental responsibility.

OUTCOME: Following the successful installation in 2019 of a 100Kw solar PV system on the roof which has seen a significant reduction in utility costs especially in the days of long sunlight. The feed-in-tariff has yet to be delivered due to the closure of the registration office due to COVID-19 but will be backdated to when the system was commissioned. The replacement of the lights in 2019 for LED lights and sensors are providing continued savings. Insulation has been installed in Gifford House to prevent heat loss through the old building and the two old lifts in Alexandra Wing have been replaced. The use of plastic cups has ceased at drinking fountains due to the use of reusable bottles or biodegradable cones.

. Group Trustees Report and Strategic Report Care for Veterans

STRATEGIC REPORT

OBJECTIVE: To continue reducing the operational financial deficit.

OUTCOME: The surplus for 2020 represented in this instance as the Net income/(expenditure) before investments was £979,936 against a deficit in 2019 of £650,635. The cost of care for residents continues to rise. Costs continue to be monitored and savings made where possible and the service review will make a significant contribution to this. The complexity of our residents has also continued to increase. Residents funded by social services and commissioners often attract less funding and once they become a resident, they may attract below inflation fee increases. A full-service review was undertaken in 2020. As a result of this all departments have been restructured to provide both flexibility and cost-effectiveness in the workforce. This has incorporated finding more effective methods of delivering services to the residents. This has seen some turnover in staff which has provided a fresh perspective in the way the Home functions.

OBJECTIVE: Continue existing and develop new methods to manage the pension deficit.

The charity has maintained contributions to the pension scheme.

OBJECTIVE: Maintain and improve close working relationships with Clinical Commissioning Groups (CCGs) and local funding bodies and negotiate on inflation level fee increases for long-term residents.

OUTCOME: The clinical team have maintained good links with local commissioners and providers. CfV chose not to sign up to West Sussex County Council’s central contract which would have provided funding for four beds and the commissioners would have filled them when they were required. It was felt that this contract removed the control from the home in triaging new arrivals and this was not acceptable given the pandemic outbreak. In hindsight this proved to be the correct decision for CfV.

OBJECTIVE: Roll out day services in therapy and social and recreational areas.

OUTCOME: This has proved impossible over 2020 because of the pandemic. The entire country has seen three lockdowns and the guidelines for care homes has been even more stringent with even relative visiting being stopped for long periods to protect the residents many of whom are classified as highly vulnerable. These plans have been held until the pandemic is under control.

OBJECTIVE: Raise the profile of Care for Veterans and increase the fundraising database

OUTCOME: 2020 has proved a challenging year for fundraising having seen virtually all community events postponed or cancelled. The new Head of Fundraising has improved the profile of the home by: Facebook 80.9%, Instagram 23.3%, Twitter 2.3%, LinkedIn 222%, Database 12%, Newsletter 4%, and e-newsletter 10%.

. Group Trustees Report and Strategic Report Care for Veterans

STRATEGIC REPORT

RISK AND UNCERTAINTY

Number Risk Mitigation
1 Recurrence of COVID-19 •
Three-level business continuity plan to ensure the Home continues to
function
•
Well-practised visiting arrangements are in place
•
Publicise that all resident rooms are to become single
•
The Home engages in an effective vaccinationprogramme
2 A decline in resident numbers as a result of
COVID-19 or future social care uncertainty
with focus on care in the community		 •
Rolling programme of dividing each of the double rooms into single
rooms.
•
Premotion of the rehabilitation element of the Home
•
Engage with local commissioners highlightingservices,
3 Poor CQC rating •
Review and update policies and procedures
•
Ensure currency in supervision and training is in date
•
Resident involvement in decision making
•
Decrease staff turnover
•
Liaise with other care home mangers to ensure best practice
4 Failure or replacement cost of aging
equipment		 •
Develop a rolling replacement programme for infrastructure and
equipment
•
Monitor the cost of equipment repair and consider spend-to-save
replacements
•
Business Manager to work with Head of Finance on equipment
replacement
•
Fundraising to target appropriate funding sources for support
•
Long-term strategy for older buildings on site
5 Fall in investment portfolio value •
Portfolio transferred into the charity multi asset fund to provide greater
scrutiny and security
•
Maintain a cash portfolio to avoid drawing down on the investment
6 Decreased fundraising because of the
cancellation or postponement of events		 •
Increase the number of supporters offering demonstrable support to
the home
•
Use of technology to increase virtual fundraising and support those
performing ‘in aid of’ the charity
•
Focus on Trusts and Foundations to provide unrestricted funds to
support the day-to-day costs of running the home

. Group Trustees Report and Strategic Report Care for Veterans

TRUSTEES REPORT

OPERATIONAL OVERVIEW OF 2020

2020 has probably been the most challenging period for Care for Veterans since the end of the Second World War. The COVID-19 outbreak affected all aspects of operational delivery in the Home. The year has seen three different lockdowns and the guidelines on managing the outbreak have been amended and updated on a regular basis as we, the home tried to remain COVID-19 free. There was widespread coverage in the media as to the impact in the social care sector with many homes suffering calamitous losses in their resident population. This was reflected in a poll published in July in ‘The Carer’ , a monthly journal for all social care providers, that showed that 76% of respondents felt that care homes were not safe and 53% stating they felt their loved ones would deteriorate in a care home.

As the NHS sought to free beds in the hospital environment many homes accepted the offer of central contacts via commissioners. However, this proposal surrendered the home’s ability to triage and ensure that new residents were appropriate for the Home. For this reason, the contract was rejected. 2020 has been a difficult year for resident numbers with both commissioners and social services refusing to place residents in double rooms. This was also noted in private funders responses to the offer of room-sharing. As a consequence, the ability to maintain high occupancy proved extremely challenging.

The COVID-19 pandemic, in the early part of 2020 was all-consuming. The Home had made some early preparations and procured a small amount of PPE. Once the pandemic really started to take hold across the country the Home locked down and produced a Business Continuity Plan on a traffic light system allowing for a controlled escalation of measures to protect the residents and staff. The controlling of visitors and non-essential contractors, minimising the use of agency staff, using transfer points to each wing, and ensuring staff were provided with appropriate protective equipment. This was, during the early stages, the most challenging with supplies being limited and the NHS being initially prioritised, and prices increases exponentially on an almost daily basis. In addition, we dealt with anxiety and fear among many residents and staff.

In the later part of 2020 Care for Veterans did manage to create one visitor pod in an entrance, and procured two specialist ‘safepods’ from a local firm in Brighton. These pods are lit, heated, and have a built-in two-way communication system which allows visitors to visit loved ones without masks aiding communication, whilst completely removing the risk of infection.

For administrative staff there was significant investment in the ability to work from home. A new server that allows individuals to access their ‘virtual work desk’ and access all data bases and files that are accessible in the office. Each member of staff has been issued a laptop and large screen to allow easy working and this is transported in a laptop rucksack purchased specifically for purpose. By providing each individual with equipment necessary for the day-to-day tasks this reduces significantly possible cyber risks.

A full-service review of all departments at Care for Veterans was undertaken in the early summer of 2020 by the Senior Management Team and their findings were presented to, and supported by, the Board of Trustees in September 2020. Every department was considered, and changes made to allow for greater flexibility in the workforce. There is also a shift to technology with the roll out of a mobile medical records system to allow all care staff to provide contemporaneous records of care. The infrastructure works to move to a new security system have started with the plan to decrease the Home’s dependence on a daily external security provider by boosting the number and hours of the reception staff. The final review is of nursing and care staff and was started in consultation with all those staff and will deliver its findings in 2021. However, the changes that have been implemented should realise savings of almost £300K on the previous year’s budget.

The green project continues be successful. The two 15-year-old lifts to Alexandra Wing, which were extremely inefficient from an energy perspective, were replaced and the new lifts commissioned in May. The new lifts are a duplex type which will ensure equal wear on each lift as opposed to the previous system when the closest lift undertook a disproportionate number of ‘travels’ compared to the other. The instillation included a five-year maintenance plan. Again, all capital costs being raised by the fundraising team in a highly successful campaign. This not only reduces costs on energy but also has removed the call-out and repair costs which were considerable. Additionally, a project was started to purchase an electric ambulance and charging point this was completed and delivered in March 2021. Whilst only able to carry a single wheelchair it will save in vehicle licencing and for trips to drop specimens at either the surgery or Worthing hospital. It is also the first steps towards the government’s direction that all vehicles be electric by 2030.

Following a fault in the fire alarm system that proved beyond economic repair, Care for Veterans installed a complete new system that that allows the source of an alarm to be traced by individual room rather than by zone making tracing the source significantly quicker and easier.

The Fundraising and Marketing Department worked extremely hard in 2020 but also adapted to the current pandemic. There has been much more focus on Trusts and Foundations, virtual events and online promotion. It is to their credit that their target set prior to the pandemic was almost reached.

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REVIEW OF ACTIVITIES 2020

The population continues to age in the UK. A recent study by the Office of National Statistics revealed that the number of persons in the UK aged 85+ will increase by 36% between 2015-2025 reach 2m by 2025, 3.2m by 2041 and 5.1m by 2066. However, the amount spent on adult social care has decreased every year since 2010/11. As a result of these lower fees, the care home market remains unstable and to some degree in decline. In 2019, 600 new homes opened, but in the same year 900 homes closed. By comparison, in 2009, 7000 new homes were opened. In England, nearly half (46 per cent) of care home residents are part or fully funded by their local authority. The market is weighted toward the block commissioning power of councils who often pay below the market rate of what it costs to provide a bed in a home resulting in a delta between the fees received and the actual cost of care. Approximately 50% of residents at Care for Veterans self-funders which offers some protection, but the market remains challenging.

In the early part of 2020, the COVID-19 pandemic struck across the world. There was an initial increase in the demand for beds as hospitals tried to create space for COVID-19 patients. However, this demand for beds came with caveats that made the central contract highly undesirable with the Home losing the ability to triage potential new admissions. This resulted in a decline in resident numbers. This was further compounded following the well reported crisis in care homes decreasing the public’s confidence in placing their loved ones into social care. For Care for Veterans the effect was magnified by a third of the beds being in shared rooms which proved almost impossible to fill by either private or state funders. The result was a below average occupancy level for most of 2020. To address this issue a plan was developed to divide the 10 double rooms into 20 single rooms with the first being completed in December 2020. These rooms were occupied almost immediately.

The cost of care reflects the extremely high standard of clinical care that CfV provides. In addition to good nurse/staff ratios CfV benefits from onsite physiotherapy, occupational therapy, speech and language therapy and chiropody. The wellbeing hub has largely been closed in 2020 or limited to no more than six residents from one wing. When the hub has been closed the staff have been redeployed to the wings to assist the clinical staff or deliver one-to-one activities with residents in their rooms. Care for veterans retains platinum status, the highest possible level, by the Gold Standards Framework for our end-of-life care.

Student nurse training was suspended for 2020 but physiotherapy students from the University of Brighton did continue. The presence of students on a six weekly placement ensures staff remain current in their areas and provide residents variety during the long-term rehabilitation.

A full-service review was undertaken during 2020 and all departments restructured to meet the current and future needs of the Home. The aim of the review was to ensure that staff were working in the most efficient manner, to rationalise working patterns and to reduce costs. The use of technology, flexible working with staff providing cover for each other when possible have all resulted in savings of approximately £300k per annum from the budget and a more effective workforce.

The green project’s financial benefits continue to reap rewards. The solar PV and LED light installation continue to decrease the utility bills, and the new lifts will also contribute to overall savings. The greater savings are also recognised in the huge decrease in call-out and repairs on both the lights and lifts. The electric ambulance and charging point were ordered for delivery in 2021. This should again see a reduction in vehicle costs. Finally, two brand new overs were installed in the kitchen providing a more efficient system for baking or steaming and again using less energy.

Fundraising at Care for Veterans

Our in-house Fundraising & Marketing team oversee a host of income streams including legacies, individual giving, corporate fundraising, community fundraising, trusts and foundations, events, digital and lottery, all of which we run in-house. Like so many, 2020 met us with many challenges, yet once again, the support we have received from our donors and advocates has been incredible.

At present, direct approaches are only made to those with legitimate interest or with prior consent. We will always remove a supporter’s details from our database if they so request. We do not share or swap data. Any data retained is held and maintained within the guidelines of GDPR. All our fundraisers are aware of the Data Protection Act and are trained in GDPR legislation and are required to refresh that training annually. We are conscious of pressures which vulnerable people might experience and our trained staff will never knowingly approach anyone who is vulnerable.

Care for Veterans is registered with the Fundraising Regulator and adheres to the Code of Fundraising Practice. We are also registered with the Fundraising Preference Service (FPS) and in 2020 had zero complaints via the FPS.

The Fundraising & Marketing team manage all our own fundraising events and initiatives to maintain control over how people are approached, how they are asked to support and how they are thanked. We manage all our own raffles and our own lottery which we do in accordance with the terms set out by the local authority with whom we are registered. We do not currently employ external professional fundraising individuals, companies or organisations.

Regretfully, 2020 saw the cancellation of many of our annual events and activities and the postponement of many partnerships, including our summer fayre, glitter ball and carol concert. However, we were able to deliver highly successful golf days at Ham Manor and Worthing Golf Club, and we created a new range of digital events including an online auction and a running series that could be supported from home. Two of our very own WW2 residents inspired the nation by taking on a D-Day cycle challenge, travelling from Portsmouth to Gold Beach, Normandy raising over £10,000. We won an application to receive a spitfire fly over, from the Daily Mail to celebrate D-Day, which we were able to share with all our residents and staff outside.

. Group Trustees Report and Strategic Report Care for Veterans

TRUSTEES REPORT

REVIEW OF ACTIVITIES 2020

We have set and maintain high standards about how we communicate with current and potential donors. We continue to develop the relationships we have with our supporters, donors and always thanked in the appropriate manner. We are open and honest with our supporters and donors and are transparent in how volunteers and give them control over the relationship with them, whilst protecting vulnerable people and ensuring supporters are money is raised and how it is spent.

Volunteers

Since the rebranding to Care for Veterans there has been continued support in both permanent and corporate volunteers in the charity. These provide services from painting and gardening to sitting with residents and reading to them or listening to them. These volunteers provide a service that improves both the lives and surroundings of our residents and we are extremely grateful for their continued support.

Reserves

The Trustees have formulated the reserves policy for CfV based upon recommendations from the Finance Committee. The reserves policy is considered appropriate to ensure the continued ability of the Charity to meet its objectives.

In view of our aim to provide long term nursing care to the ex-Service community, the Trustees consider that a total unrestricted reserves fund of 9-12 month's expenditure is reasonable to enable the charity to cope with unforeseen expenditure or a loss of income. The charity currently relies on voluntary income and legacies amounting to in excess of £1.5m. The level of reserves is currently equal to 9 to 10 months expenditure and is regularly reviewed. Fundraising activity is used to maintain the funds to obtain the optimal level. The current levels of available reserves are in line with the CfV policy. All services, both income and expenditure are being reviewed continuously to maintain reserves at the levels required.

Unrestricted Fund

The total unrestricted reserves fund of £4.3m (2019: £2.9m) represents the unrestricted reserve fund less the deduction for the pension reserve fund. The pension deficit value reduced at 31 December 2020 to (£286,000) from (£537,000) in 2019. This reduction in the pension scheme deficit came as a result of the positive Liability Driven Investment strategy adopted for the scheme.

Restricted Fund

The restricted and endowment reserves are materially represented by the charity's investment in fixed assets. At the end of the year, the restricted reserves excluding the endowments stood at £4.67m (2019: £4.87m) of which £3.56m (2019: £3.94m) represents our investment in capital items i.e. the buildings that constitute the Home.

Capital expenditure and other restricted funds £0.50m (2019: £0.45m) and the permanent endowment of £0.16m (2019: £0.16m) account for the remainder.

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REVIEW OF ACTIVITIES 2020

Investments

CfV investments are held as a reserve against any shortfall in income to ensure we can continue to deliver our charitable objectives.

At the beginning of 2020 the process of transferring the existing diversified portfolio to the SUTL Cazenove Charity Multi-Asset Fund (CMAF) was completed.

The SUTL Cazenove Charity Multi-Asset Fund (CMAF) aims to provide combined income capital growth in excess of the Consumer Price Index +4% per annum (net of fees) over rolling ten-year periods by investing in equity related securities, fixed and floating rate securities and alternative assets worldwide.

At 31 December 2020 the Charity's investments were valued at £4.09m (2019: £3.53m) as set out in Note 9. This amount includes £0.64m (2019: £0.05m) held in short term deposits. CMAF remains liquid should cash be required.

The CMAF produced a total return of 7.3% over the last 12 months. The board of Trustees were very happy with the performance of the investments over the period.

Investment Policy

The current investment policy reflects that of the investment into the CMAF plus leaving sufficient liquidity outside of the CMAF to provide for the day-to-day running costs.

The investment managers were reviewed at the end of 2019 with a resulting change in the portfolio structure. The investments were transferred to the CMAF which was completed in early 2020. The CMAF aims to provide income and capital growth in line with the Consumer Price Index +4%. The performance is reviewed quarterly by the finance committee.

Portfolio Impact Measurement

Planet People
Carbon footprint Social dividend
15 tonnes of CO2 6.0% p.a
vs benchmark* vs benchmark*
199 tonnes of CO2 0.9% p.a

To provide further insight into our portfolio, Schroders include an overall assessment of the impact of the equity investments on people and the planet, and a comparison against an appropriate benchmark. They provide two metrics:

Planet

Carbon emissions: an aggregate of the annual scope 1 and 2 carbon emissions (in tonnes) that can be attributed to CMAF’s holdings of the companies in which it is invested. For comparison, an average passenger vehicle emits 5 tonnes of CO2 each year, an average home emits 9 tonnes of CO2 each year and a flight from London to New York is equivalent to 1 tonne of CO2 emissions.

People

Social dividend: the overall social contribution of the companies in which CMAF is invested, expressed as a percentage of sales. For example, a score of +2% means that the portfolio adds $2 of benefits to society for every $100 of sales. The social contribution of business that Schroders value as part of this score includes aspects such as fair work, tax, medicine provision, financial inclusion, and access to water.

Source: Schroders SustainEx. Equivalency data sources: EPA, UK Government. Flight emissions are based on a single passenger flying economy class. Schroders is reliant on external providers for the underlying data for these metrics. Whilst Schroders makes every effort to ensure the accuracy of this data, it cannot be guaranteed. There may be some holdings where no underlying data is avaialble, therefore Schroders will only present these metrics to CfV when Schroders have access to them for 80% or greater of the total value of your equity portfolio.

Trading Subsidiary

During the year the trading subsidiary, Care for Veterans Services Limited (formally QAHH Services Limited) continued to trade for income outside the charitable status. The results are detailed in note 19.

. Group Trustees Report and Strategic Report Care for Veterans

TRUSTEES REPORT

REVIEW OF ACTIVITIES 2020

Pensions

The accounts as presented include the full adoption of Financial Reporting Standard 102 (`FRS102'). A qualified independent actuary has prepared a valuation of the scheme for these accounts in accordance with FRS102. This valuation indicated that a deficit of £286,000 existed at 31 December 2020 (2019: £537,000 deficit). This amount has been recognised as a deficit in these accounts.

At 30 April 2005 the existing defined benefit pension scheme was closed to future accrual. A replacement stakeholder scheme came into force on 1 May 2005, this scheme was discontinued on 30 April 2014. Since 1 May 2014 CfV has provided a workplace pension scheme in order to comply with the new pension auto-enrolment rules. This scheme is provided by the Peoples Pension.

Further information regarding the pension funds is set out in notes 5 and 6 to the financial statements.

Fees Policy

Setting resident’s fees remains a challenge. CfV seeks to achieve a balance between affordability, at a level which is consistent with the highest levels of care and suitable accommodation and our desire not to exclude any beneficiary on the grounds of financial hardship. CfV welcomes residents whose care is funded from a variety of sources such as self-funded, commissioners, continuing health care, social services and service charities.

Remuneration for Senior Staff

The Remuneration Committee oversee and approve the salaries of the senior management and of other key personnel, who have control of the day-to-day management of the charity. Salaries are reviewed annually and benchmarked against other similar organisations and in the case of clinical staff, the Nursing and Midwifery Council's Agenda for Change is used as the benchmark.

PLANS FOR FUTURE PERIODS

Future Plans

The Trustees support the Senior Management Team in planning for CfV to develop its services and activities to keep up with the changing care requirements of our residents and those veterans in the wider community.

The major initiatives for 2021 will include:

Future Prospects

The Board of Trustees continues to support the delivery for high quality, multi-disciplinary team of nursing and rehabilitation care that is offered at CfV, which very few other care facilities at a similar level. The Trustees are confident that NHS pressures will continue to see increasing numbers of NHS-funded continuing care cases offered to the Home. Once a medical emergency has been stabilised, the transfer to an external, financially beneficial, care facility such as CfV becomes an NHS priority. However, once these residents have been admitted to CfV and their fees agreed, adding inflationary rises to fees has proved challenging.

Applicants admitted to CfV, whose financial assets are considered too high to access local authority funding will be required to privately fund the cost of their care. This could entail the acceptance of having to equity release through the selling of a family home.

It is anticipated that funding overall services at CfV will continue to remain challenging. Running and staff costs increase annually and in addition, as dependency levels of those applying increases, so does the requirement for more highly trained staff. If Local Authority funding does not cover the minimum fee levels, families will inevitably have to make top-up payments towards the fee from their own resources, to keep a family member at CfV.

Despite these factors, the Trustees are unanimously agreed that their policy of maintaining a high level of affordable nursing and rehabilitation services will remain in place for the foreseeable future. The continuing operational deficit will be met by fundraising on a national scale. In addition, contract reviews and the anticipated savings and income generation from the environmental project will help address the shortfall.

. Group Trustees Report and Strategic Report Care for Veterans

TRUSTEES REPORT

2021 OBJECTIVES

Our main objectives for 2021 are:

How the objectives for 2022 will affect the charity:

IMPLICATIONS OF COVID-19

The global COVID-19 pandemic has altered life in all aspects of everyday life. Care for Veterans did lockdown aggressively to prevent COVID-19 entering the Home and protect the residents and staff. As the year wore on and the severity of the virus became more apparent CfV closely monitored the guidelines published by Public Health England and locally by West Sussex County Council. There was initially a paucity in information, and this was replaced with vast quantities of guidelines and directives which were generated centrally, locally and by various professional bodies.

Following the initial anxiety and confusion the Home developed a traffic light system of business continuity to allow for either escalation or a deescalation of restrictions to adapt to constantly changing information and guidelines. There were daily meetings of the Senior Management Team to interpret the effect of changes on CfV and the information was cascaded to staff via a daily ‘frequently asked questions’ leaflet and on occasions by a letter to all staff. The Registered Manager kept the residents informed and when the situation allowed small resident meetings were held with each wing represented. The CEO provided regular updates to families covering all areas but with a focus on visiting. The Home initially went to window and virtual visits and as the situation allowed these were replaced, in the summer months, outdoor socially distanced visits were allowed. As the weather deteriorated, we moved to internal visitor bays again with full PPE and social distancing, but this ceased as the second lockdown commenced. Initially CfV returned to window and virtual visits but then purchased two bespoke ‘safepods’ which allowed visitors to see their loved ones without PPE. The virtual visits also continued, and we were able to offer every resident a pod or virtual visit on Christmas day knowing there was no transmission risk.

CfV did remain open to new admissions with a strict triaging and 14-day isolation policy. However, the management team made the decision not to participate in the West Sussex County Council’s central contract which could have funded four beds, whether occupied or not, seven days a week. It came with caveats that would have resulted in CfV losing control of any admissions and their timings, and for that reason the decision was taken not to engage in this option. Given that, at one stage, care homes in Worthing had twice the national average of COVID-19 cases, this decision appears to have been the correct one for CfV.

There have been no resident excursions since the pandemic hit and residents were advised against visits into the local community. CfV were unable to prevent those with the capability and capacity to leave the site but it was strongly discouraged. All visits to residents were cancelled and CfV’s volunteers were cancelled irrespective of their roles. All routine maintenance visits were postponed, and only essential contractors were given access to the site. Therapy assistants were redeployed onto the respective wings as ward assistants to minimise the requirement for agency staff. In addition, all agency staff that were used completed a declaration and were issued CfV uniform which was then laundered at 60 degrees after every shift. The Public Health England (PHE) guidelines on ‘How to Work Safely in Care Homes’ were used to determine working processes and to determine Personal Protective Equipment (PPE) levels.

The early days of the pandemic proved extremely challenging in ensuring the charity has sufficient supplies of personal protective equipment (PPE) as supplies were prioritised for the front-line NHS. Consequently, there was very limited stock and the stock that was procured suffered considerable increases in price, up to 400% at times. However, over the year this has seen a more readily available supply and costs have returned to almost prepandemic levels. CfV has sufficient stock levels to provide protection in the event of an outbreak. Throughout the pandemic CfV has followed the guidelines issued by Public health England throughout the pandemic.

Resident fees still provide the largest proportion of CfV’s income. This year has seen an increase in funding from both commissioners and social services as part of the COVID-19 support payments which has been welcomed given the expense involved in making the Home safe for residents and staff. The pandemic has highlighted the challenges in filling beds in shared rooms. CfV had 40 single-bed rooms and 10 double rooms. During the pandemic it became extremely challenging with social services and commissioners refusing to fund residents in double rooms and private funders failing to show any interest in availability and as a consequence the first double room was converted to two singles in December and both these rooms are now occupied. The plan is to divide the remaining rooms over the next two years and this work continued in 2021.

. Group Trustees Report and Strategic Report Care for Veterans

TRUSTEES REPORT

The second largest proportion of income is from fundraising. This has been affected by the pandemic with numerous events and collections cancelled or postponed. Several of the fundraising team were furloughed as opportunities for community events and fundraising disappeared. Marketing and trust fundraisers continued to be employed but even these areas struggled as many charities with demonstrable reserves were sifted out by trusts. Fundraising is adapting to the new normal and are seeking more virtual fundraising opportunities but face severe competition from many other charities and organisations like the NHS.

The final source of income is our portfolio which reduced significantly in the early stages of the pandemic. However, over 2020 it has recovered and has been boosted by the addition of a deposit following a substantial legacy during the year. The portfolio was, in collaboration with Schroders, transferred to a charity multi asset fund which provides for greater security and scrutiny than in an induvial portfolio.

The vaccine was rolled out to both residents and staff early in 2021 which provided additional protection against the more severe symptoms associated with the pandemic but the need for local control will linger for a significantly longer period. However, it does feel that there is now hope that the Home can return to some semblance of normality over the year.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Care for Veterans, formerly the Queen Alexandra Hospital Home (QAHH) was founded in 1919 and incorporated as a Company Limited by Guarantee in 1998 (registered number 3646570) and registered as a charity (registered number 1072334) thereafter subject to Charity, Trust and Company Law and governed by a Memorandum and Articles of Association. Its registered address is Gifford House, Boundary Road, Worthing, West Sussex, BN11 4LJ (Tel: 01903-213458)

The Charity has one subsidiary company Care for Veterans Services Limited (company number 5802953) incorporated 2 May 2006. The company is limited with the single shareholder being Care for Veterans.

Appointment of Trustees

The Chairman of the Board undertakes the appointment of new Trustees. The Chairman will nominate an individual when a vacancy exists and, subject to the approval of the full board, they will be invited to join the Board. Following appointment to the Board a new Trustee will;

An Induction programme is in place for new Trustees. All new Trustees are required to undergo Disclosure and Barring Service Checks.

Organisation

The Board appoints the Chief Executive, who reports to the Chairman and is accountable to the Board. He attends meetings of the Board and the subcommittees. The current Chief Executive is Mr Andy Neaves MSc BSc (Hons). He is also the ‘Nominated Individual’ under the requirements of our registration body the Care Quality Commission (CQC) and is the point of contact in all matters emanating from them. The day-to-day running of the home is the responsibility of the Registered Manager.

The Trustees, who for the purposes of company law are the Directors of the Company, oversee the operations of CfV. The Trustees and senior executives of the charity are listed on page 15. The principal place of business and professional advisers of the charity are given on page 15.

The Chief Executive is responsible to the Board of Trustees for carrying out the agreed policies and objectives of CfV. He deals with all strategic matters relating to finance and fundraising; all matters concerning Health and Safety; and is responsible for the smooth running and financial health of the Hospital Home.

Under the CEO, the Departmental Managers are – the Registered Manager; Senior Nurse Manager; the Head of Finance; the Head of Fundraising and Marketing and the Head of Human Resources.

. Group Trustees Report and Strategic Report Care for Veterans

TRUSTEES REPORT

STRUCTURE, GOVERNANCE AND MANAGEMENT

Related Parties

The Charity’s wholly owned subsidiary Care for Veterans Services Limited (formally QAHH Services Limited) was formed during 2006 to provide nursing and care services for a small number of residents who fall outside the objects of the Charity. The Charity recharges the cost of care and the company gift aids any profits to the Charity.

Officers and Management

The names of the Trustees who have served during the year and up to the date of approval of the financial statements, and the executives are set out below along with the Sub-Committees of Care for Veterans.

Trustee Role Sub-committees
Cdre James Fanshawe CBE Chairman 1,3
Mr David Williams Deputy Chair, Chair Finance 1,3
Mrs Ruth Taylor 4 *Resigned May 2021 AGM
Dr Paul Hughes RD QHP MD FRCP 4 *Resigned May 2020
Mr Alan Price JP 1,3 *Resigned Sep 2020
Cdr David Habershon RN 2 *Resigned May 2021 AGM
Mrs Denise Patterson Resigned May 2020
Col John Saville FIMechE 2,4
Mr Michael Jones 2
Mr John McKee Chair Fundraising and Marketing 2 Appointed May 2020
Dr Timothy Fooks Chair Clinical Governance 4 Appointed May 2020
Ms Georgina Crowhurst 1 Appointed Sep 2020
Mr Richard Andrew 1 Appointed Sep 2020
Mrs Dawn Hart Appointed May 2021 AGM
Mrs Anna Harrison Appointed May 2021 AGM

Sub-committees

  1. Finance Committee

  2. Fundraising and Marketing Committee 3. Remuneration Committee

  3. Clinical Governance Committee

Additional Trustees and those to fill casual vacancies may be nominated by the existing Trustees and upon a majority vote by the Board, appointed.

Executives

AD Neaves, MSc BSc (Hons)

Chief Executive

Legal and administrative information

Auditors and Financial Advisors

Carpenter Box Amelia House Crescent Road Worthing West Sussex BN11 1QR

Bankers

Barclays Bank Plc 1 Chapel Road Worthing West Sussex BN11 1EX

Pension Trustees

Independent Trustee Services Limited 4th floor Cannon Place 78 Cannon Street London EC4N 6HL

Principle office of Charity and Registered Office Gifford House Boundary Road Worthing West Sussex BN11 4LJ

Pension Administrators

Cartwright Mill Pool House Mill Lane Godalming Surrey GU7 1EY

Company Number 03646570

Registered Charity Number 1072334

Investment Managers

Schroder & Co Limited Schroders Charities 1 London Wall Place London EC2Y 5AU

Solicitors

GWCA 13/14 Liverpool Terrace Worthing West Sussex BN11 1TQ

Country of incorporation England and Wales

. Group Trustees Report and Strategic Report Care for Veterans

TRUSTEES REPORT

Statement of Trustees' Responsibilities for the Financial Statements

The Trustees (who are also directors of Care for Veterans for the purposes of company law) are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom generally accepted accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and the application of resources, including net income or expenditure of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for the keeping of proper accounting records that disclose with reasonable accuracy at any time, the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for the safeguarding of the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In so far as the Trustees are aware:

The Trustees confirm that they have complied with the duty in Section four of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit.

Trustee Indemnity Insurance

The charity has third party indemnity insurance cover for its Trustees, as disclosed in note five to the financial statements.

Auditors

A resolution to reappoint Carpenter Box for the coming year will be proposed at the Annual General Meeting in accordance with the Companies Act 2006.

In Gratitude

The Trustees wish to convey their sincere thanks to all the volunteers who gave so generously their time and support to Care for Veterans during 2020. With their continued support, we look forward to enhancing the delivery of our charitable services.

This report was approved by the Trustees

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF CARE FOR VETERANS

Opinion

We have audited the financial statements of Care For Veterans (the 'charitable company') for the year ended 31 December 2020 which comprise the Consolidated Statement of Financial Activities, the summary income and expenditure account, the Consolidated and Charity Balance Sheets, the Consolidated Cashflow Statement and the related notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the 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 Strategic Report and the Directors' Report included within the Trustees’ Report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF CARE FOR VETERANS

Responsibilities of trustees

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

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the charitable company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: compliance with the UK Companies Act.

In addition to the above, our procedures to respond to risks identified included the following:

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed noncompliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities is available on the Financial Reporting council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's 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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Robin Evans BA FCA CTA (Senior Statutory Auditor) �1)or /1-I For and on behalf of Carpenter Box Chartered Accountants Statutory Auditor Worthing Carpenter Box is a trading name of Carpenter Box Limited

Consolidated Statement of Financial Activities and Income and Expenditure Account

For the year ended 31 December 2020

Note
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Other trading activities
2
Investments
2
Charitable activities
3a
Other income
3b
TOTAL INCOME
Raising funds
4
Charitable activities
4
TOTAL EXPENDITURE
NET GAINS/(LOSSES) ON INVESTMENTS
9
NET INCOME/ (EXPENDITURE)
Transfers between funds
6
Net movement in funds
Funds balance brought forward
FUNDS BALANCE CARRIED FORWARD
Actuarial gains/(losses) on defined benefit
pension scheme
Net income/(expenditure) before investments
EXPENDITURE ON		 Unrestricted
Endowment
2020
Unrestricted
Endowment
2019
Funds
& Restricted
Total
Funds
& Restricted
Total
£
£
£
£
£
£
1,986,030
551,120
2,537,150
457,679
701,848
1,159,527
569,332
-
569,332
681,791
-
681,791
122,118
-
122,118
113,469
-
113,469
2,677,480
551,120
3,228,600
1,252,939
701,848
1,954,787
2,649,480
-
2,649,480
2,694,182
-
2,694,182
46,292
91,225
137,517
-
-
-
5,373,252
642,345
6,015,597
3,947,121
701,848
4,648,969
263,296
-
263,296
322,196
2,500
324,696
3,801,101
971,264
4,772,365
4,051,405
923,503
4,974,908
4,064,397
971,264
5,035,661
4,373,601
926,003
5,299,604
1,308,855
(328,919)
979,936
(426,480)
(224,155)
(650,635)
101,719
3,165
104,884
346,451
9,610
356,061
1,410,574
(325,754)
1,084,820
(80,029)
(214,545)
(294,574)
(124,206)
124,206
-
(16,727)
16,727
-
137,000
-
137,000
(136,000)
-
(136,000)
1,423,368
(201,548)
1,221,820
(232,756)
(197,818)
(430,574)
2,900,309
4,869,515
7,769,824
3,133,065
5,067,333
8,200,398
4,323,677
4,667,967
8,991,644
2,900,309
4,869,515
7,769,824

The accompanying accounting policies and notes form an integral part of these financial statements. All of the operations represented by the information above are continuing.

19

Consolidated and Charity Balance Sheets

As at 31 December 2020

s at 31 December 2020
Note
Fixed assets
8
9
TOTAL FIXED ASSETS
Current assets
10
11
12a
NET CURRENT ASSETS
12b
Net assets before pension scheme liability
NET ASSETS AFTER PENSION LIABILITY
Capital funds
14
Revenue funds
14
6
13
Total unrestricted
TOTAL CHARITY FUNDS
Creditors - amounts falling after more than one year
Endowment fund
Restricted
Defined benefit pension scheme liability
Unrestricted:
Pension reserve fund
General fund
(including revaluation reserve £92,761 [2019: £362,292] for Group
and Charity)
Tangible assets
Investments
Stocks
Creditors - amounts falling due within one year
Debtors
Cash at bank and in hand		 2020
2019
2020
2019
Total
Total
Total
Total
£
£
£
£
4,078,770
4,393,520
4,242,040
4,556,790
4,092,263
3,534,374
4,092,264
3,534,375
Charity
Group
8,171,033
7,927,894
8,334,304
8,091,165
12,775
11,100
12,775
11,100
662,337
382,764
671,765
406,682
748,256
379,366
736,188
352,928
1,423,368
773,230
1,420,728
770,710
(299,580)
(364,999)
(296,940)
(362,479)
1,123,788
408,231
1,123,788
408,231
(17,177)
(29,301)
(17,177)
(29,301)
9,277,644
8,306,824
9,440,915
8,470,095
(286,000)
(537,000)
(286,000)
(537,000)
8,991,644
7,769,824
9,154,915
7,933,095
160,071
156,906
160,071
156,906
4,507,896
4,712,609
4,671,166
4,875,879
(286,000)
(537,000)
(286,000)
(537,000)
4,609,677
3,437,309
4,609,678
3,437,310
4,323,677
2,900,309
4,323,678
2,900,310
8,991,644
7,769,824
9,154,915
7,933,095

Approved by the Board of Trustees on and signed on its behalf by

The accompanying accounting policies and notes form an integral part of these financial statements.

Company No. 03646570

20

Consolidated Cashflow Statement

For the year ended 31 December 2020

Note
a
Cashflows from financing activities
Payment of finance lease obligations
See note 23 for net fund analysis note
Net cash provided by (used in) investing activities
Investment income and interest receivable
Purchase of tangible fixed assets
Purchase of investments
Sale of investments
CASH FLOWS FROM INVESTING ACTIVITIES:
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities
Net cash provided by (used in) operating activities
Cash and cash equivalents in the reporting period
Net (outgoing)/incoming resources before gains and losses on
investment assets
Investment income and interest receivable
Depreciation and loss on disposal
Decrease/(increase) in cash on deposit
(Increase)/decrease in stock
(Increase)/decrease in debtors
Increase/(decrease) in creditors
a. Reconciliation of net movement in funds to net cash flow
from operating activities
Cash and cash equivalents at the beginning of the reporting
period
Cash and cash equivalents at the end of the reporting period		 2020
2019
2020
2019
£
£
£
£
343,924
(336,178)
358,294
(354,198)
122,118
113,469
122,118
113,469
(222,236)
(124,954)
(222,236)
(124,954)
(1,668,187)
(2,550,533)
(1,668,187)
(2,550,533)
1,805,396
3,166,482
1,805,396
3,166,482
Group
Charity
37,091
604,464
37,091
604,464
(12,125)
(12,125)
(12,125)
(12,125)
368,890
256,161
383,260
238,141
379,366
123,205
352,928
114,787
748,256
379,366
736,188
352,928
2020
2019
2020
2019
£
£
£
£
979,936
(650,635)
979,936
(650,635)
(122,118)
(113,469)
(122,118)
(113,469)
536,986
486,209
536,986
486,209
(590,213)
139,995
(590,213)
139,995
(1,675)
(919)
(1,675)
(919)
(279,573)
85,404
(265,083)
67,504
(179,419)
(282,763)
(179,539)
(282,883)
Group
Charity
343,924
(336,178)
358,294
(354,198)

21

Note to the financial statements for the year ended 31 December 2020 Care for Veterans.

The principle accounting policies, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

1. Accounting policies

1.1 Basis of preparation

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with the Auditing and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014, the Charities Act 2011, the Companies Act 2006 and the UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements are prepared in sterling, which is the financial currency of the group. Monetary amounts are rounded to the nearest £1.

1.2 Basis of consolidation

The group financial statements consolidate those of the charity and of its subsidiary undertakings (note 19) drawn up to 31 December 2020 in full. Surpluses or deficits on intra group transactions have been eliminated. Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.

1.3 Incoming resources

Residents' contributions and capitation grants from the Veterans Agency are recognised in the Statement of Financial Activities on a receivable basis.

Donations and grants are recognised in the Statement of Financial Activities as received and are shown gross.

For estates in which probate has been granted the value of a quantifiable legacy, although not received in the financial year under review, is recognised in the Statement of Financial Activities with the corresponding amount being included as a debtor in the Balance Sheet. Investment income comprises dividends declared during the accounting period and interest receivable on listed and unlisted investments.

1.4 Resources expended

Resources expended are all associated with the sole activity of the provision of residential care. The charitable company's objective is the provision of residential care and this is achieved principally through its staff.

A high standard of buildings, equipment and other facilities are essential to the well-being of residents. These elements underlie the categorisation of expenditure as follows:

Charitable expenditure comprises resources with the specific purpose of fulfilling the objects of the charity,

predominantly the costs of care staff, and also expenditure incurred in support of the charity's primary purpose. Governance costs under FRS 102 have been included in expenditure on 'charitable activities'.

Costs of generating funds include the costs associated with running the fundraising appeals including the development of the donor database, and fundraising events. Where applicable, costs have been apportioned on the basis of time or area, as appropriate to the relevant cost.

1.5 Fund accounting

The charitable company's assets represent; the Capital Fund (resources invested in the buildings, equipment and vehicles), the Revenue Funds (resources held to produce income and to act as a reserve against temporary deficits), Special Funds (restricted or designated funds established to meet capital needs or specific projects) and Endowment Funds (resources invested in Gifford House the property and a fund held in investments with income at the charity's discretion). The Capital Fund is shown as a restricted fund, but part of this fund includes amounts designated by the trustees. From time to time transfers between the Capital fund and the Revenue (unrestricted) fund occur in order to account for the results of projects which the trustees had designated funds to complete.

1.6 Fixed assets and depreciation

Capitalisation levels: Individual fixed assets costing £2,500 or more are capitalised at cost. IT equipment £400 or more

Tangible fixed assets are stated at cost net of depreciation. No depreciation is charged on fixed asset additions in the course of construction. Depreciation is calculated to write down the cost of all tangible fixed assets except for freehold land by equal annual instalments over their expected useful lives, leading to an annual depreciation charge against the Capital fund. The periods generally applicable are:

Property - 25 years

Plant, equipment and vehicles - 5 to 15 years Computer equipment - 3 years

1.7 Investments

Investments appear at market value as fixed assets in the balance sheet as they are held on a long-term basis to provide an essential income to offset part of the operating costs of the charity. Both realised and unrealised gains and losses are credited or charged to the Revenue fund.

1.8 Retirement benefits

Defined benefit pension scheme

Scheme assets are measured at fair values. Scheme liabilities are measured on an actuarial basis using the projected unit method and are discounted at appropriate high-quality corporate bond rates.

The net surplus or deficit is presented separately from other net assets on the balance sheet.

A net surplus is recognised only to the extent that it is recoverable by the charity.

The current service cost and costs from settlements and curtailments are included in operating costs and are allocated to the same expenditure headings as the related staff costs.

Past service costs are spread over the period until the benefit increases. Interest on the scheme liabilities and the expected return on the scheme assets are included under the appropriate expenditure headings as other finance costs.

1.8 Retirement benefits (cont)

Defined benefit pension scheme

Actuarial gains and losses are reported in the Statement of Financial Activities with other gains and losses on investments. The pension costs charged against operating profits are the employers' contribution payable to the Stakeholder pension scheme and Work Place pension scheme in respect of the accounting period.

Note to the financial statements for the year ended 31 December 2020 Care for Veterans.

1. Accounting policies (continued)

1.9 Stock

Stocks are stated at lower of cost or estimated selling price less cost to complete and sell.

1.10 Taxation

No provision for taxation, deferred or otherwise, has been made in these financial statements as the Hospital Home is a charity in accordance with the Charities Act 2011 and is exempt from taxation except Value Added Tax, provided that income and gains are applied for charitable purposes under S.505 of the Income and Corporation taxes Act 1998 and S.145 of the Capital Gains Tax Act 1979.

1.11 Cash and liquid resources

For the purpose of the cash flow statement, cash comprises cash in hand and deposits repayable in demand, less overdrafts payable on demand. Liquid resources comprise term deposits of less than one year (other than cash) and are included in fixed asset investments as they are integral to the portfolio managed by investment managers.

1.12 Volunteers

The charity benefits from the involvement and support of its volunteers. In accordance with FRS102 and the Charities SORP (FRS102), the economic contribution of general volunteers is not recognised in the accounts.

1.13 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.14 Cash at bank and in hand

Cash at bank and cash in hand includes cash and short-term liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.15 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.16 Financial instruments

The charity only has financial assets and financial instruments 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.

1.17 Going concern

The financial statements have been prepared on a going concern basis. The trustees have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The COVID-19 pandemic and the ensuing economic shutdown has had a significant impact on the company’s operations, as detailed on page 12, within the Trustees' Report. A COVID-19 Business Continuity Plan was produced, along with a risk assessment, to guide the home through the pandemic successfully. The increased cost of PPE was countered by the issuing of two grants from West Sussex, from a Central Government grant, each totalling almost £30k to cover the increases in PPE, cleaning materials and the other required changes to ensure compliance with Public Health England's guidelines 'How to work Safely in Care Homes'. Care for Veterans also employed the furlough scheme for those receiving letters from their GPs advising them to shield for 10 weeks. In addition, some members of the fundraising team with a responsibility for events and community collecting were also furloughed as events were either cancelled or postponed.

In response to the COVID-19 pandemic, the trustees have performed a robust analysis of forecast future cash flows considering the potential impact on the charity of possible future scenarios arising from the impact of COVID-19. This analysis also considers the effectiveness of available measures to assist in mitigating the impact.

Based on these assessments and having regard to the resources available to the entity, the trustees have concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis in preparing the annual report and accounts.

Notes to the Consolidated Accounts for the year ended 31 December 2020 Care for Veterans

2. Analysis of income from generated funds

Voluntary income:
Donations
Legacies
Activities for generating funds:
Fundraising events
Nursing and care (non-primary purpose)
Other income
Investment income:		 2020
2019
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
£
£
£
£
412,687
551,120
963,807
191,077
701,848
892,925
1,573,343
-
1,573,343
266,602
-
266,602
1,986,030
551,120
2,537,150
457,679
701,848
1,159,527
74,149
-
74,149
134,166
-
134,166
491,847
-
491,847
539,814
-
539,814
3,336
-
3,336
7,811
-
7,811
569,332
-
569,332
681,791
-
681,791
122,118
-
122,118
113,469
-
113,469

3a. Analysis of income from charitable activities

Fee Income
Contributions from residents
Veterans Agency capitation grant
3b. Other income
Other income
Grants received
Corona Virus Job Retention Scheme
TOTAL INCOME		 2020
2019
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
£
£
£
£
£
£
2,585,481
-
2,585,481
2,621,965
-
2,621,965
63,999
-
63,999
72,217
-
72,217
2,649,480
-
2,649,480
2,694,182
-
2,694,182
2020
2019
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
£
£
£
£
£
£
-
91,225
91,225
-
-
-
46,292
-
46,292
-
-
-
46,292
91,225
137,517
-
-
-
5,373,252
642,345
6,015,597
3,947,121
701,848
4,648,969

24

Notes to the Consolidated Accounts for the year ended 31 December 2020 Care for Veterans

4. Analysis of Resources Expended

4. Analysis of Resources Expended
Resources expended
Cost of generating voluntary income
Cost of activities for generating funds
Investment management fees
Total cost of generating funds		 2020
2019
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
£
£
£
£
£
£
219,805
-
219,805
227,630
-
227,630
39,707
-
39,707
66,647
2,500
69,147
3,784
-
3,784
27,919
-
27,919
263,296
-
263,296
322,196
2,500
324,696

Costs of generating voluntary income include the costs associated with running the fund-raising appeals including the development of the donor database. Where applicable, administration and other costs have been apportioned on the basis of time or area as appropriate to the relevant cost and on a basis consistent with the use of resources by the fundraising department.

Cost of charitable activities
Payroll costs
Non-payroll costs
Total cost of charitable activities
TOTAL EXPENDITURE
Analysis of total resources expended
Provision of residential care
Provision of services and support costs
Other expenditure
Fundraising, publicity and other
Total resources expended		 2020
Unrestricted
Restricted
Total
Unrestricted
Restricted
£
£
£
£
£
3,012,650
378,215
3,390,865
3,174,136
318,862
788,451
593,049
1,381,500
877,269
604,641		 2019
Total
£
3,492,998
1,481,910
3,801,101
971,264
4,772,365
4,051,405
923,503		 4,974,908
4,064,397
971,264
5,035,661
4,373,601
926,003
2020
Staff costs
Depreciation
Other
Total
£
£
£
£
3,390,865
532,698
848,802
4,772,365
195,311
-
67,985
263,296
3,586,176
532,698
916,787
5,035,661		 5,299,604
2019
Total
£
4,974,908
324,696
5,299,604

Analysis of total resources expended for 2019 include provision of residental care staff costs amounting to £3,492,998, depreciation of £486,209 and other costs of £851,911. Other expenditure included staff costs of £212,560 and other costs of £112,136.

25

Notes to the Consolidated Accounts for the year ended 31 December 2020 Care for Veterans

5. Trustees and employees

5. Trustees and employees
Staff costs during the year were as follows:
Wages and salaries
Social security costs
Pension costs:
Defined benefit scheme *
Defined contribution scheme
Work place pension scheme		 2020
2019
Total
Total
£
£
3,231,573
3,351,594
256,191
255,994
-
-
-
-
98,412
97,970
3,586,176
3,705,558

Staff costs above include agency staff.

The total average monthly number of employees during the reporting period (full and part-time staff) was:

Nursing and clinical staff
Care assistants
Kitchen
Domestic
Driver and maintenance
Neuropsychologist
Occupational Therapy
Physiotherapy
Speech Therapy
Social and Recreation
Support
Fundraisers
Chaplain
Administration		 2020
2019
Total
Total
23
25
58
66
8
7
14
18
3
3
1
1
2
3
5
5
1
1
2
2
3
3
7
7
1
1
5
5
133
147

No payments were made to Trustees of Care for Veterans for remuneration of their services or any reimbursement of expenses for the year ended 31 December 2020 (2019: None). During the year there were no donations from Trustees made to CfV (2019: None).

The premium for the trustee's indemnity insurance is now included within the combined liability insurance as in 2019.

Details of employees who received more than £60,000 in the year are as follows:

2020 2019
Total Total
£60,001 - £70,000 0 1
£70,001 - £80,000 1 1
£80,001 - £90,000 0 0

During the year pension contributions of £3,960 (2019: £6,932) were paid on behalf of these employees as members of the Work Place scheme operated by the charity. These figures are also included in the key figures below.

During the year a total of 9 staff were recognised as key management personnel the total paid to these indiviuals amounted to £431,153 (2019: £390,337). Included within this amount was £14,831 (2019: £14,597) for contributions to the Work Place Pension scheme operated by the charity.

26

Notes to the Consolidated Accounts for the year ended 31 December 2020 Care for Veterans

6. Retirement Benefits

The Company operates a defined benefits plan, The Federated Pension Scheme for the Queen Alexandra Hospital Home.

The liabilities of the plan have been calculated for the purposes of FRS102 based on the calculations previously undertaken for the initial results of the funding Actuarial Valuation as at 31 March 2019, allowing for the different assumptions required under FRS102 and taking fully into consideration changes in the plan benefit structure and membership since that date.

The principal actuarial assumptions at the balance sheet date (expressed as weighted averages) were as follows:

2020 2019
% %
Discount rate 1.30 2.00
Retail Prices Inflation ("CPI") 3.00 3.10
Consumer Prices Inflation ("CPI") 2.00 2.10
Pension increases: RPI, max 5%, min 0% 2.90 3.00

The underlying mortality assumption is based upon the standard table known as S3PxA on a year of birth usage with CMI_2019 future improvement factors and a long-term rate of future improvement of 1.25% p.a. (2019: S3PxA, 2018: S1PA, 1.25% p.a). This results in the following life expectancies:

Employee Benefit obligations

The amounts recognised in the balance sheet as at 31 December 2020 (with comparative figures as at 31 December 2019) are as follows:

Market value of plan assets
Present value of plan liabilities
Net defined benefit asset/(liability)		 2020
2019
£
£
4,870,000
4,223,000
(5,156,000)
(4,760,000)
(286,000)
(537,000)

The amounts to be recognised in the consolidated statement of financial activities for the year ending 31 December 2020 (with comparative figures for the years ending 31 December 2019) are as follows:

Current service cost
Administrative expenses
Interest on net defined benefit (asset)/liability
Loss/(Gain) recognised
(Gain)/loss on plan charges
Curtailment (gain)/loss
Total		 2020
2019
£
£
-
-
10,000
13,000
-
-
-
-
-
-
10,000
13,000

27

Notes to the Consolidated Accounts for the year ended 31 December 2020 Care for Veterans

6. Retirement Benefits

Changes in the present value of the plan liabilities for the year ended 31 December 2020 (with comparative figures for the year ending 31 December 2019) are as follows:

Present value of plan liabilities at beginning of period
Current service cost
Employee contributions
Interest on plan liabilities
Past service cost
Curtailment (gain)/loss
Actuarial (gains)/losses
Benefits paid
Present value of plan liabilities at end of period		 2020
2019
£
£
4,760,000
4,326,000
-
-
-
-
94,000
120,000
-
-
-
-
434,000
422,000
(132,000)
(108,000)
5,156,000
4,760,000

Changes in the fair value of the plan assets for the year ending 31 December 2020 (with comparative figures for the year ending 31 December 2019) are as follows:

Market value of plan assets at beginning of period
Interest on plan assets
Return on assets, less interest included in Profit & Loss
Benefits paid
Administrative expenses
Contributions paid by the company
Employee contributions
Market value of Scheme assets at end of period
Actual return on plan assets		 2020
2019
£
£
4,223,000
3,814,000
84,000
107,000
571,000
286,000
(132,000)
(108,000)
-
-
124,000
124,000
-
-
4,870,000
4,223,000
655,000
393,000

The major categories of plan assets as a percentage of total plan assets for the year ending 31 December 2019 (with comparative figures for the year ending 31 December 2018) are as follows:

Equities and Property
Bonds
Diversified Growth
Liability Driven Investment ("LDI)
Cash
Total		 2020
2019
%
%
15
60
19
30
43
n/a
22
n/a
1
10
100
100

The plan has no investment in property occupied by, assets used by or financial instruments issued by Care for Veterans.

Analysis of the remeasurement of the net defined benefit liability recognised in Other Comprehensive Income ("OCI") for the year ending 31 December 2020 (with comparative figures for the year ending 31 December 2019) are as follows:

Return on assets, less interest included in Profit & Loss
Expected less actual plan expenses
Experience gains and losses arising on the plan liabilities
Remeasurement of net defined benefit liability recognised in OCI
Changes in assumptions underlying the present value of plan liabilities		 2020
2019
£
£
571,000
286,000
-
-
102,000
(46,000)
(536,000)
(376,000)
137,000
(136,000)

28

Notes to the Consolidated Accounts for the year ended 31 December 2020 Care for Veterans

6. Retirement Benefits

Movement in net benefit asset/(liability) during the year ending 31 December 2020 (with comparative figures for the year ending 31 December 2018) are as follows:

31 December 2018) are as follows:
Net defined benefit asset/(liability) at beginning of year
Recognised in Statement of Financial Activities
Contributions paid by Company
Remeasurement of net defined benefit liability recognised in OCI
Net defined benefit asset/(liability) at end of the year		 2020
2019
£
£
(537,000)
(512,000)
(10,000)
(13,000)
124,000
124,000
137,000
(136,000)
(286,000)
(537,000)

Funding Policy

Actuarial valuations are carried out every three years on behalf of the Trustees of the plan, by a qualified independent actuary. The actuarial assumptions underlying the actuarial valuation are different to those adopted under FRS102.

The last such actuarial valuation was at 31 March 2019. This showed that the plan's assets were insufficient to cover the liabilities on the funding basis. A Recovery Plan has been agreed with the Company, which commits the Company to paying contributions to fund the shortfall. These deficit recovery contributions are incorporated in the plan's Schedule of Contributions dated 22 April 2020 and required contributions equal to £124,000 per annum payable in monthly instalments.

The contributions are subject to review following completion of the next funding valuation, due as at 31 March 2022.

Defined Contribution Scheme

Following the closure to future accrual of the Defined Benefit Scheme the charitable company put in place a stakeholder scheme for the benefit of the employees, to which the charity contributed a matched figure up to the value of 5% of the gross contribution. The Scheme was closed on 30 April 2014 following the introduction of the Workplace Pension Scheme.

The Workplace Pension Scheme was made available from 1 May 2014 to comply with the new pension auto-enrolment rules. Contributions in this scheme are matched by the Charity up to the value of 5%.

Charge Over Assets

In 2009 the pension scheme trustee asked for a charge over the property of Care for Veterans (formerly The Queen Alexandra Hospital Home) in order to reduce the Pension Protection Fund Levy (PPF). This security was agreed by the PPF in 2010 but requires recertification each year. Each year the pension scheme trustee will review whether the reduction in the PPF levy which would result from recertifying the security will exceed the costs of recertification. The security was not in place during 2020.

A charge remains in place for the Pension Scheme Trustees. This charge provides security for the pension Trustee and can be taken into account when setting the investment strategy and, to a degree, the pace of funding for the deficit. The value of security is capped at £3,500,000.

29

Notes to the Consolidated Accounts for the year ended 31 December 2020 Care for Veterans

7. Taxation

No provision has been made for taxation in these financial statements as the company is a charity in accordance with Section 4 of the Charities Act. It is exempt from taxation other than Value Added Tax provided that income and gains are applied to charitable purposes.

8. Tangible fixed assets

GROUP
Cost
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Provided in period
On disposals
At 31 December 2020
Net book value at 31 December 2020
Net book value at 31 December 2019
CHARITY
Cost
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Provided in period
On disposals
At 31 December 2020
Net book value at 31 December 2020
Net book value at 31 December 2019		 £
£
£
£
8,885,720
1,471,549
246,638
10,603,907
-
222,236
-
222,236
(10,721)
(12,474)
-
(23,195)
Freehold
property
Plant and
equipment
Vehicles
Total
8,874,999
1,681,311
246,638
10,802,948
4,942,206
1,021,543
246,638
6,210,387
364,501
168,197
-
532,698
(6,433)
(12,474)
-
(18,907)
5,300,274
1,177,266
246,638
6,724,178
3,574,725
504,045
-
4,078,770
3,943,514
450,006
-
4,393,520
£
£
£
£
9,048,990
1,471,549
246,638
10,767,177
-
222,236
-
222,236
(10,721)
(12,474)
-
(23,195)
Freehold
property
Plant and
equipment
Vehicles
Total
9,038,269
1,681,311
246,638
10,966,218
4,942,206
1,021,543
246,638
6,210,387
364,501
168,197
-
532,698
(6,433)
(12,474)
-
(18,907)
5,300,274
1,177,266
246,638
6,724,178
3,737,995
504,045
-
4,242,040
4,106,784
450,006
-
4,556,790

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Plant and machinery
Motor vehicles		 2020
2019
£
£
24,249
36,375
-
-
24,249
36,375

30

Notes to the Consolidated Accounts for the year ended 31 December 2020 Care for Veterans

9. Fixed asset investments

Quoted investments
Market value at 1 January 2020
Additions
Disposals
Net realised/unrealised gains
Market value at 31 December 2020
Short term deposits
Investments (Group)
(Historical cost £3,999,501 [2019: £3,172,083])
Investments in group undertakings at 1 January 2020 and at 31 December 2020
Investments (Charity)
(Historical cost £3,999,501 [2019: £3,172,083])
Analysed as:
Fixed interest securities - unit trusts
Equities - UK
Property funds - UK
Equities - Overseas
Charity Multi-Asset fund
Hedge funds		 2020
2019
Total
Total
£
£
3,482,182
3,742,070
1,668,187
2,550,533
(1,805,396)
(3,166,482)
104,884
356,061
3,449,857
3,482,182
642,406
52,192
4,092,263
3,534,374
1
1
4,092,264
3,534,375
2020
2019
Total
Total
£
£
-
145,885
-
829,272
-
238,883
-
342,022
3,449,857
1,846,796
-
79,324
3,449,857
3,482,182

The Charity wholly owns the following subsidiary:

Care for Veterans Services Limited (formerly QAHH Services Limited)

Country of Incorporation Class of share capital held Principal activity Ordinary - 100% of Provision of nursing care and other trading England ownership activities

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31
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Notes to the Consolidated Accounts for the year ended 31 December 2020 Care for Veterans

10. Stocks

Consumable stores
Total consumable stores		 Group
Charity
£
£
12,775
12,775
12,775
12,775
2020		 Group
Charity
£
£
11,100
11,100
2019
11,100
11,100

11. Debtors

Resident contributions receivable
Group debtors
Capitation fees receivable
Legacies receivable
Income tax recoverable
Prepayments and other debtors
Gift aid donations from trading subsidiary
Amounts due from group undertakings
Total debtors		 Group
Charity
£
£
169,266
137,283
-
-
5,421
5,421
413,605
413,605
2,269
2,269
71,776
71,776
-
11,383
-
30,028
662,337
671,765
2020		 Group
Charity
£
£
143,235
116,293
-
-
7,169
7,169
173,733
173,733
9,272
9,272
49,355
49,355
-
11,550
-
39,310
2019
382,764
406,682

12a. Creditors: amounts falling due within one year

Trade creditors
Staff remuneration
Pension
Social security and other taxes
Amounts owed to group undertakings
Hire purchase creditor
Other creditors and accruals
Total creditors (falling due within one year)		 Group
Charity
£
£
75,810
75,810
47,642
47,642
18,876
18,876
59,779
59,779
-
-
12,125
12,125
85,348
82,708
299,580
296,940
2020		 Group
Charity
£
£
48,652
48,652
42,073
42,073
18,226
18,226
52,501
52,501
-
-
12,125
12,125
191,422
188,902
2019
364,999
362,479

Net obligations under hire purchase are secured by fixed charges in the assets concerned

12b. Creditors: amounts falling due after more than one year

Group
Charity
£
£
Hire purchase creditor
17,177
17,177
Other creditors and accruals
-
-
Total creditors (falling due after more than one year)
17,177
17,177
Net obligations under hire purchase are secured by fixed charges in the assets concerned
2020		 Group
Charity
£
£
29,301
29,301
-
-
2019
29,301
29,301

32

Notes to the Consolidated Accounts for the year ended 31 December 2020 Care for Veterans

13. General fund

Revenue funds
At 1 January 2020
Retained surplus/(deficit) for the year
Transfers from/(to) restricted funds
At 31 December 2020
14. Restricted and endowment funds
GROUP
Revenue funds
At 1 January 2020
Incoming resources
Expenditure
Gains/(losses) on investments
Transfer between funds
Transfers from/(to) revenue funds
At 31 December 2020		 Group
Charity
Group
Charity
£
£
£
£
3,437,309
3,437,310
3,645,065
3,645,066
1,296,574
1,296,574
(191,029)
(191,029)
(124,206)
(124,206)
(16,727)
(16,727)
4,609,677
4,609,678
3,437,309
3,437,310
£
£
£
£
156,906
4,372,520
340,089
4,869,515
-
642,345
642,345
-
(532,698)
(438,566)
(971,264)
3,165
-
-
3,165
-
93,742
(93,742)
-
-
124,206
-
124,206
2020
2019
Endowment
Funds
Capital
Funds
Other
Restricted
Funds
Total		 Group
Charity
£
£
3,645,065
3,645,066
(191,029)
(191,029)
(16,727)
(16,727)
2019
160,071
4,057,770
450,126
4,667,967
-

The transfers between funds during the year are represented by additional funds when required to show progress; transfers to and from these fund represent the introduction of funds from restricted income and the distribution of costs to capital funds. Transfers to the revenue fund represent restricted funds received for the allocation against revenue costs.

The **Other restricted funds** represents the smaller funds with restrictions placed on them.

The endowment funds are represented as follows;

The endowment (permanent) fund of £21,000 represents the value of premises owned by the unincorporated charity, The Queen Alexandra Hospital Home (208721) and a "uniting direction" was made by the Charity Commission enabling the two charities to be treated as one. Two additional endowments (permanent) were added in 2010 and held in special trust for The Sailors & Soldiers Home Fund and Bloomfield Bequest. These two funds are invested seperately from the Charity's main fund and its income is available for the charity's purpose.

CHARITY
Revenue fund
At 1 January 2020
Incoming resources
Expenditure
Gains/(losses) on investments
Transfer between funds
Transfers from/(to) revenue fund
At 31 December 2020		 £
£
£
£
156,906
4,535,790
340,089
5,032,785
-
-
642,345
642,345
-
(532,698)
(438,566)
(971,264)
3,165
-
-
3,165
-
93,742
(93,742)
-
-
124,206
-
124,206
Total
Endowment
Funds
Capital
Funds
Other
Restricted
Funds
160,071
4,221,040
450,126
4,831,237

33

Notes to the Consolidated Accounts for the year ended 31 December 2020 Care for Veterans

15. Analysis of movements in restricted funds

15. Analysis of movements in restricted funds
Balance at 1
January 2020		 Income Expenditure Transfers Funds 31
December
2020
£ £ £ £ £
Chaplaincy costs 1,817 3,000 (4,293) - 524
CFV choir costs 45 - - - 45
Sporting chances for disabled veterans 33,250 - (17,993) - 15,257
Garden design and costs 1,764 - (1,764) - -
Mixed rehabilitation related costs 223,983 278,336 (166,308) - 336,011
Green Project - Solar panels & maintenance 14,195 - (2,829) - 11,366
Lift replacement and maintenance 39,923 44,000 (74,794) - 9,129
Richmond Wing extension 6,221 - - - 6,221
Social and recreation 200 - (200) - -
Hospital equipment - general 16,068 12,026 (21,522) - 6,572
Residents costs and entertainment 2,473 302 (2,775) - -
Ward hospitality 150 400 (550) - -
Green Projects - Electric Vehicle - 43,678 - - 43,678
IT Equipment - 4,794 (4,794) - -
Occupational Therapy Equipment - 19,861 (18,261) - 1,600
Room Conversions - 19,723 - - 19,723
COVID-19 impact programme 125,000 (125,000) - -
COVID-19 infection control - 91,225 (91,225) - -
340,089 642,345 (532,308) - 450,126
Analysis of movements in restricted funds - previous year
Balance at 1
January 2019		 Income Expenditure Transfers Funds 31
December
2019
£ £ £ £ £
Chaplaincy costs 1,582 3,000 (2,765) - 1,817
CFV choir costs 45 - - - 45
Sporting chances for disables veterans - 33,250 - - 33,250
Garden design and costs 2,700 1,909 (2,845) - 1,764
Mixed rehabilitation related costs 99,237 334,521 (209,775) - 223,983
Fundraising event - 2,500 (2,500) - -
Green Project - Solar panels & maintenance 50,000 71,059 (106,864) - 14,195
Lift appeal - 39,923 - - 39,923
Richmond Wing extension 6,221 - - - 6,221
Building repairs and replacement 4,423 - (4,423) - -
Social and recreation costs 200 - - - 200
Hospital equipment - general 21,454 8,137 (13,523) - 16,068
End of life care - Nursing and care - 115,848 (115,848) - -
Residents costs and entertainment 250 3,108 (885) - 2,473
Ward hospitality 150 - - - 150
LED lighting for Care for Veterans - 88,593 (88,593) -
186,262 701,848 (548,021) - 340,089

Name of restricted fund

Sporting chances for disabled veterans Garden design and costs Mixed rehabilitation related costs Green Project - Solar panels Lift replacement and maintenance Richmond Wing extension Social and recreation costs Hospital equipment - general Residents costs and entertainment Ward hospitality Green Projects - Electric Vehicle IT Equipment Occupational Therapy Equipment Room Conversions COVID-19 impact programme

Description of fund

Sporting activities for disabled veterans (delayed due to Covid) Fund towards ongoing gardening requirements To maintain occupational therapy, physiotherapy and speech therapy. To provide and maintain Solar panels

To replace the two lifts and related costs on Alexandra Wing Retention dispute on Richmond Wing extension

To purchase the necessary equipment required for the use with residents. To provide the much need services for residents needing end-of-life care. To purchase small items for residents needs.

To purchase small items for the Wings to show appreciation To purchase an electric ambulance

To purchase equioment to allow staff remote working

IT equipment to aid residents Conversion of double rooms to single rooms To provide funds to help during Covid-19

34

Notes to the Consolidated Accounts for the year ended 31 December 2020 Care for Veterans

16. Analysis of net assets between funds

GROUP
Endowment fund
Capital fund
Restricted fund
Capital fund
Capital expenditure fund
Other restricted funds
Unrestricted fund
Revenue fund
Pension fund liability
CHARITY
Endowment fund
Capital fund
Restricted fund
Capital fund
Capital expenditure fund
Other restricted funds
Unrestricted fund
Revenue fund
Pension fund liability
(including unrealised (losses)of (£32,192) (2019: Losses £1,273))
(including unrealised (losses) of (£251,661) (2019: Losses
£275,314))
(including unrealised (losses)of (£32,192) (2019: Losses £1,273))
(including unrealised (losses) of (£251,661) (2019: Losses
£275,314))		 £
£
£
£
£
21,000
139,071
-
-
160,071
Tangible
Fixed Assets
Investments
Net Current
Assets
Creditors due
>1year
Total
21,000
139,071
-
-
160,071
4,057,770
-
-
-
4,057,770
-
-
-
-
-
-
-
450,126
(17,177)
432,949
4,057,770
-
450,126
(17,177)
4,490,719
-
3,953,192
673,662
-
4,626,854
-
-
-
(286,000)
(286,000)
-
3,953,192
673,662
(286,000)
4,340,854
4,078,770
4,092,263
1,123,788
(303,177)
8,991,644
£
£
£
£
£
21,000
139,071
-
-
160,071
Creditors due
>1year
Tangible
Fixed Assets
Investments
Net Current
Assets
Total
21,000
139,071
-
-
160,071
4,221,040
-
-
-
4,221,040
-
-
-
-
-
-
-
450,126
(17,177)
432,949
4,221,040
-
450,126
(17,177)
4,653,989
-
3,953,193
673,662
-
4,626,855
-
-
-
(286,000)
(286,000)
-
3,953,193
673,662
(286,000)
4,340,855
4,242,040
4,092,264
1,123,788
(303,177)
9,154,915

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35
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Notes to the Consolidated Accounts for the year ended 31 December 2020 Care for Veterans

17. Capital commitments

There were no capital commitments at 31 December 2020 (2019: None). No other commitments had been made at 31 December 2020 (2019: None).

18. Related party transactions

No transactions with related parties were undertaken such as are required to be disclosed under FRS 102 or the SORP (2019: NIL)

19. Subsidiary company

The Charity owns the whole of the issued ordinary share capital of Care for Veterans Services Limited (formerly QAHH Services Limited) registered number 5802953, a company registered in England and Wales whose registered office and place of business are the same as that of the charity.

The trading activities of the subsidiary Care for Veterans Services Limited for the year ended 31 December 2020 were as follows:

Turnover
Cost of sales
Other operating income and charges
Profit/(loss) on ordinary activities before taxation
Appropriation to holding company (Gift aid)
(Loss)/profit for the financial year
Net current assets
Net assets
Share capital
Retained profit
Net assets		 2020
2019
£
£
491,847
539,813
477,521
525,397
14,326
14,416
2,943
2,866
11,383
11,550
(11,383)
(11,550)
-
-
1
1
1
1
1
1
-
-
1
1

20. Surplus of income over expenditure

The charity has taken advantage of section 408 of the Companies Act 2006 and has not included its own income and expenditure account in these financial statements. The net of income over expenditure for the period includes a surplus of £1,342,968 (2019: deficit (£32,083) which is dealt with in the financial statements of the charity.

36

Notes to the Consolidated Accounts for the year ended 31 December 2020 Care for Veterans

21. Grants/ Donations receivable

Under the terms of the Grant/ Donation Agreement or contract, the following funders are disclosed individually.

2020
Funder Project Amount
£
RAF Benevolent Fund Mixed Rehab 20,000
ABF Soldiers' Charity Mixed Rehab 60,000
Armed Forces Covenant Trust - Keep Calm and Keep Connected 19,345
- Covid-19 Impact Programme 125,000
The Chapman Charitable Trust Further the objectives of the Charity 12,000
The Corporation of Trinity House Further the objectives of the Charity 10,000
Ernest Kleinwort Charitable Trust Mixed Rehab 30,000
Royal Navy & Royal Marines Charity Mixed Rehab 63,858
The Francis Winham Foundation Mixed Rehab 10,000
Postcode Neighbourhood Trust Room conversion 19,723
Garfield Weston Foundation Core costs 40,000
Rampion Fund at Sussex Community Foundation Electric mini-ambulance 24,343
The Wolfson Foundation Lift refurbishment project 44,000
The Julia and Hans Rausing Trust Charity Survival Fund 245,635
Sussex Community Foundation Sussex Crisis Fund- Remote working 4,794

22. Analysis of governance

Basis of apportionment
Salaries, wages and related costs
Insurance
Audit fees - charity
Audit fees - subsidiary company
Total governance
Governance
Time apportionment
Governance
Governance		 2020
2019
£
£
22,914
22,437
-
-
13,590
12,375
2,640
2,520
39,144
37,332

23. Analysis of changes in net funds

Cash at bank and in hand
Obligations under finance leases		 At 1 January
2020
Cash flows
At 31
December
2020
£
£
£
379,366
368,890
748,256
379,366
368,890
748,256
(41,426)
12,125
(29,301)
337,940
381,015
718,955

37

Ask us about all the ways you can help

Care for Veterans.

Care for Veterans

Gifford House Boundary Road Worthing West Sussex BN11 4LJ

Telephone 01903 213458 Email info@careforveterans.org.uk Web www.careforveterans.org.uk

Registered Charity No. 1072334 A Company limited by guarantee, registered in England No. 3646570