2022-12-31-accounts

ANNUAL REPORT & ACCOUNTS For the year ended 31 December 2022

Company No. 03646570 Registered Charity No. 1072334

How the funds have helped

----- Start of picture text -----
How the money came in
----- End of picture text -----

----- Start of picture text -----
4.8%
14.5%
12.3%
68.4%
----- End of picture text -----

Provision of care, rehabilitation and services

Donations and fundraising events

Legacies

Investment and other income

----- Start of picture text -----
How the money went out
----- End of picture text -----

----- Start of picture text -----
5.6%
0.1%
94.3%
----- End of picture text -----

• Provision of care, rehabilitation and services

Fundraising costs

Investment and other income costs

Total expenditure £5.17m

Total income £4.85m

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 CHAIRMAN'S REPORT

I am very pleased to provide a foreword to this report for 2022 for Care for Veterans (CfV). Last year I wrote that it was a year like no other. After another very difficult year we have had to adjust to what can be described as a new normal. Covid has continued to affect us all at CfV, with occasional cases occurring, leading to a number of lockdown periods. You will read more on the impact of the virus on CfV within the various sections of this report. However, we have developed a robust regime to deal with what occurs and we have maintained the highest level of care and service to the residents, whilst attending to the needs of the staff. I am pleased to report that there were no deaths directly attributable to the pandemic in 2022.

2022 was another difficult year and we have not been able to achieve everything which was planned. Challenges were overcome one by one, and the new rhythm, established in 2021, was maintained so that everyone knew what had to be done and how to do it. New ways of working continued to have been developed to maintain business continuity so that the charity could continue to function. The IT systems have been fully tested, enabling some people to work from home seamlessly and 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 once again the Board of Trustees offer the highest accolade possible for their supreme efforts. 2022 continued to reinforce the evidence that people will always rise to the challenges which unforeseen events and circumstances demand. I cannot speak highly enough of the resilience which was shown.

We maintained work on a number of essential upgrades and programmes, within the restrictions imposed as a result of COVID-19. We maintained the programme to divide the existing double rooms into singles which will be completed in early 2023. This will enable us to return resident numbers as close as possible to the maximum capacity of 60. Resident numbers were held at a viable level throughout 2022 and more beds are now being filled; the benefits of single rooms are clearly evident.

Finances remain tight and this is reflected in the outcome for 2022. As always, legacy income is very important, 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.

Fundraising has been extremely difficult in 2022 but a number of successful live events were held alongside an increased use of digital events. The Fundraising and Marketing Team have been very responsive by shifting the dates of events at short notice to exploit the windows when they could be held at CfV.

The accounts in this report highlight again how a variety of measures to raise income and funds whilst reducing costs are bearing real fruit. With reserve levels maintained, my fellow Trustees and I are continuing to work closely with the management team to exploit 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. A Governance Review was undertaken in 2022 and this will lead to a Strategic Review in 2023.

CfV depends on its people. We are lucky to have a very strong team working together to produce the very best results. 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 2022 a surprisingly successful year, no matter what the external pressures might have been. The sense of pride in what has been achieved is tangible and always receives well deserved credit.

Once again, I would like to continue to highlight how difficult the measures we have had to maintain throughout the year have been for the families and friends of the residents. The fact that these measures have been successful is little consolation to those who were not able to spend time with their loved ones, despite innovative methods being in place. I can only restate my gratitude to our residents' families for their understanding and patience as we manage the risks in the home. This has not been easy for anyone, and I fully appreciate the additional pressures this has brought on family members.

As always, there were fluctuations between periods of great optimism and much more demanding times, but life at Care for Veterans goes on. Although the pandemic is not so dominant as before, there is a constant need for change at short notice and the strategic aim remains to do everything possible to allow CfV to provide the highest standards of care for the residents and a place of work where everyone can fulfil their functions in a very safe and happy way.

I will retire from the Board in May 2023, and I wish my successor and the Trustees all the very best for the future and am grateful for the fantastic support they, and the Senior Management Team, have offered me during my time as Chairman.

James Fanshawe CBE

3

Group Trustees Report and Strategic Report

TRUSTEES REPORT

Report of the Trustees for the year ending 31 December 2022

The Trustees of Care for Veterans (CfV) present their annual report and audit of their financial statements of the charity for the year ended 31 December 2022. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" (FRS 102) in preparing the annual report and financial statements of the charity. This is also a director’s 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).

OBJECTIVITIES AND ACTIVITIES

The King George Hospital in London, which cared for those injured in battle closed as the war had ended resulting in a loss of nursing care. However, the needs of many ex-servicemen disabled in WW1 would remain for many years and there would be a change in emphasis from purely surgical care to continuing care for those disabled during the conflict. Lady Ripon, a Lady-in-Waiting to Queen Alexandra, recognised this need and campaigned hard for an establishment to provide long-term care for veterans. Sadly, she died in 1917 before any establishment was created, but her daughter, Lady Juliet Duff, took on the work and wrote to Queen Alexandra to establish a home at Gifford House in Roehampton to care for those disabled personnel discharged from the King George Hospital. This home in Roehampton was loaned to the charity by the Charrington family and recognising the continuing need Lady Duff relocated the charity to a permanent home in Worthing in 1932. 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 CfV’s work delivers our aims:

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

The Trustees have referred to the guidelines in the Charity Commission’s General guidance on Public Benefit when reviewing the charity’s aims and objectives and in planning its 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 and their families, irrespective of their geographical location within the United Kingdom.

Following an application, CfV undertakes an assessment of the potential resident (either in person or, since the pandemic, over the telephone), to ensure that their condition is of a nature that CfV is capable of managing safely.

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 veterans and their families at CfV is subsidised by the charity, thanks to the generosity of its many supporters and donors.

CfV helps its residents in the following way:

• Providing modern facilities and equipment.

• Providing full nursing and medical care.

• Encouraging social interaction with like-minded former members of HM Forces.

• Providing facilities and support to assist in personal matters.

• Liaising with resident’s former Service Units and Regiments – if desired by the resident.

• Providing a caring and supportive, family-environment until end-of-life.

The medium to long-term strategy is:

• To deliver a high standard of nursing care to all residents.

• To continually to upgrade facilities as required.

• To promote a green strategy to decrease utilities and demonstrate an environmental responsibility.

• To continue to promote increasing awareness of CfV.

• To maintain appropriate high bed occupancy to maximise income.

• To increase financial input through increased fundraising resources investigating scoping and developing new services.

• To continually review contracts to ensure they are fit for purpose and cost effective.

4

Group Trustees Report and Strategic Report STRATEGIC REPORT

Review of Business

Financial review

In January 2022 the focus on the covid pandemic and the lifting of restrictions in the general population was not mirrored in the social care sector with restrictions remaining until virtually the end of the year. The home suffered a significant outbreak in January when the Omicron variant swept across the United Kingdom. At one stage the home suffered a 38% staff sickness absence rate requiring administrative staff to support the clinical areas. The rates amongst residents was lower, although a number did contract covid, no residents were lost to the virus. Over the course of 2022 there were then several smaller outbreaks but strict adherence to the Public Health England guidelines appeared to contain them in isolated pockets. Resident numbers did increase over the year, at one stage reaching 55 which resulted in the decision being made to convert the final three double rooms to maximise occupancy opportunities. Whilst this did lead to a reduction in availability for most of 2022, the final room was completed in December and once the final modifications to hoists and alarm systems are complete the home will finally enjoy 60 single rooms. The financial year was also significantly impacted by inflation, increasingly so as the year progressed. The impact of Russia’s invasion of Ukraine was felt across the world as inflation hit virtually every aspect of daily life, from fuel and food to medical and building materials.

Total fee income for care was £2.85m (with an additional £471k for fees from non-primary purpose residents), an increase from 2021 (£2.51m with an additional £367k for fees from non-primary purpose), principally due to the slow increase in resident occupancy numbers during the year. Funding came directly from self-funding residents and funding organisations (principally local authorities and NHS commissioners).

Following the staffing review in 2020 changes have continued to be implemented across the workforce. The nursing and care review is the last and largest area to be considered but initial changes have been implemented and these changes have produced results in this reporting year. Richmond and Norfolk wings have now been combined creating a more flexible workforce and a slimmer management structure. Norfolk wing is now the therapy and wellbeing area of the site. The review has not reduced the home’s ability to continue to provide high levels and quality of care and facilities available for residents. As a result, the total cost of providing care to the residents was £4.88m in 2022 (2021: £4.69m). The increased costs in 2022 were represented mainly by the cost of converting the remaining three rooms from doubles to singles to the value of £83k and the window replacements in the main building totalling £124k.The process of creating a sustainable service for the long-term continues.

The total voluntary income amounted to £1.21m (2021: £1.04m). This reflected an increase in legacy income on 2021 (which benefitted from a single large legacy). Legacy income in 2022 was £702k (2021: £414k) 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 made a positive decision in 2020 to transfer the investment portfolio into the SUTL Cazenove Charity Multi-Asset Fund (CMAF). This proved to be a very positive change during 2021. In 2022 CfV moved one third of its investments to the SUTL Cazenove Charity Responsible Multi-Asset Fund (RMAF). This fund aims to provide income and capital growth in line with the Consumer Price Index +4% per annum (net of fees) over rolling ten-year periods. This return expectation is the same as the CMAF the RMAF however goes further and the intention is for the Fund to have a positive impact on people and the planet by avoiding harm through Environmental, Social and Governance (ESG) integration and exclusions, benefiting stakeholders through responsible business activities and contributing to solutions through influence and investing for impact.

Fundraising focus continues on increasing CfV’s supporter base and, with a committed fundraising staff, CfV hopes to continue with the positive support of 2021 into 2022 and beyond.

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).

5

Group Trustees Report and Strategic Report STRATEGIC REPORT

Achievements and Performance 2022

----- Start of picture text -----
Objective Outcome
Manage and where By the end of the reporting year, CfV’s completed all room conversions and now has 60 single rooms
possible reduce the allowing the charity to maximise occupancy. This will reassure private funders, commissioners and
operational financial social services that new residents can be safely admitted irrespective of any future outbreaks. In
deficit. addition, the full impact of the 2020 staffing review started to be realised during the financial year.
CfV had a net expenditure before investments (i.e. an operational financial deficit) in 2022 of £328k
compared to a net expenditure before investments in 2021 of £718k. There is close monitoring of
the financial situation from an overall budget and cashflow perspective. The workforce continues
to be reviewed and the changes to the last area to be reviewed, the nursing and care department
have started to take effect with a slimmer management structure. Following a benchmarking
against similar organisations the staff to resident ratios were adjusted from 1:3 in the morning to
1:3.5 and similarly in the afternoon 1:3.5 was changed to 1:4. This combined with the slimmer
management structure has made savings in this area and provided longevity to the home. This
objective became more challenging as inflation spiralled upward following the invasion of Ukraine
with almost every aspect or delivering care, from food and heat to dressings and equipment fittings
increasing in cost.
 The financial deficit persisted in 2022, compounded by inflation. However, overall expenditure
is more controlled.
Objective Outcome
Provide the residents with Following the conversion of seven double rooms into 14 single rooms, the decision was taken to
high-grade accommodation in pause the conversion programme until resident numbers rose. At one stage occupancy appeared
single rooms. stuck at approximately 42 residents. However, as the numbers increased, reaching 55 at their peak,
the programme to convert the final three rooms was restarted. This was achieved by the end of the
year with only a few minor items to complete such as call bells and the hoist re-instillation.
 CfV now has 60 single large rooms, almost half of which are en-suite.
Objective Outcome
Implement the Nursing and The nursing and care restructure was the final and most challenging aspect of the overall staffing
Care restructure. restructure. Nursing and care represent by far the largest number of employees in the workforce
many of whom have different qualifications and levels of experience. However, the amalgamation
of Richmond and Norfolk Wings into one Wing, Richmond Wing, resulted in a much slimmer
management structure and a more flexible workforce. Having one shift lead, who is supernumerary
allows greater control and improved management across the wing. The alteration in staff to
resident ratios also contributed to the overall changes.
 CfV now only has two nursing wings, Alexandra and Richmond.
Objective Outcome
Foster a closer working The team responsible for placements has continued to communicate with local authority providers
relationship with local along with private funders to increase occupancy. The local authority funders have visited the home
authority funding bodies. during 2022 and we have engaged in their infection control audit scoring highly. This was reflected
in our return to 55 residents during the reporting period.
 Whilst the covid grants largely ceased, the increased contact has positively affected
occupancy.
Objective Outcome
Investigate the potential for a A full scoping exercise was conducted including visits to the Royal Star and Garter and the Royal
dementia wing at CfV. Naval benevolent Trust. In addition, the dementia specialist from each visited CfV and looked at
infrastructure, the floor plan, access and egress and the security system. They advised on the best
areas for either an eight or 22 bed unit. Local fees were determined by an interview with one of the
Trustees whose mother has been in a local dementia home as a permanent resident. The discipline
that featured most prominently was meaningful care matters and details were gathered on staff to
resident ratios and staff training using this approach. Additionally, advice was sought from Stirling
University on the décor and furnishings. There would be considerable outlay for both infrastructure
and training and as occupancy levels rose, following a discussion at the trustee board, a decision
was taken not to pursue this at this stage. However, the scoping study remains on file should the
decision be taken to resurrect it.
 The decision was taken not to pursue this at the present stage.
Objective Outcome
Deliver savings on utilities The solar PV panels continue to produce considerable savings, especially in the high levels of
whilst demonstrating sunlight during 2022. This year returned our highest ever yield with the panels, at the peak of
environmental responsibility. summer producing almost a third of the hospital home’s electricity requirements. This is hugely
beneficial as the cost of energy rises across the world. All of the wooden windows in Gifford House
were replaced in 2022 with the installation of energy efficient and low-maintenance UPVC making
the oldest part of the site more environmentally friendly. The impact of the LED lights, new lifts and
laundry equipment since the advent to the green project have significantly reduce maintenance
costs and avoided equipment be unusable. The electric ambulance continues to produce fuel and
environment savings being used most days to take residents to appointments and on visits home
in the local area.
 With the exception of low annual servicing costs, the all-electric ambulance has cost nothing
to run since delivery in April 2021.
----- End of picture text -----

6

Group Trustees Report and Strategic Report STRATEGIC REPORT

Risk and Uncertainty

----- Start of picture text -----
Number Risk Mitigation
1 Inflation.  SIx monthly reviews of fee levels.
 Staff salaries – accepted increases for 2023.
 Staffing ratios reduced as part of internal reviews.
 Previously outsourced services now done in-house.

2 A decline in resident numbers as  single rooms for every resident
the care in the community  Publication of on-site therapies
approach is widely used by local  Scoping complete to open a dementia wing
authorities.
3 Poor CQC rating  Inspection took place early 2023 – Good rating received.
 Policies and procedures regularly reviewed and updated.
 Supervisions and training monitored to make sure in
date.
 Resident involvement in decision making.
 Liaison with other care home managers to ensure best
practice.
4 Failure or replacement cost of  Rolling replacement programme for infrastructure and
ageing equipment. equipment.
 Cost of equipment repairs monitored and spend-to-save
replacements considered.
 Fundraising targeting appropriate funding sources for
support.
5 Fall in investment portfolio value.  Regular monitoring of the portfolio.
 Portfolio transferred into a charity multi asset fund to
provide improve portfolio liquidity and performance.
 Cash maintained to avoid drawing down on the
investment portfolio for short-term needs.
 Greater focus on cashflow in managing the finances.
6 Decreased fundraising  Increased number of supporters offering demonstrable
support to CfV.
 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.
----- End of picture text -----

7

Group Trustees Report and Strategic Report TRUSTEES REPORT

Operational Overview of 2022

Whilst the rest of the population had the rules on Covid-19 almost completely relaxed the same was not the case within the social care sector. Guidelines on visitor numbers, trips out, and the use of PPE, specifically masks, persisted until November 2022. The relaxation of this guideline was well received by both visitors and staff but did lead to an initial increase in sickness beyond covid with colds and flu-like symptoms. Testing also ceased at this time and there is no longer routine testing with tests only being carried out when a resident or staff member is symptomatic. Despite this, it comes against a guideline of only two positive cases are required for the home to be placed back into lockdown until those cases are negative on testing. In January the home suffered its biggest ever outbreak with a sickness absence rate of 38% at its peak with many residents affected too. This led to a redeployment of administrative staff to support the clinical areas and the home continued to function. Since then, the home has been placed in lockdown on three further occasions during 2022 but with far fewer staff affected and each episode lasting an average of four-to-six-week periods. Well-practised protocols are employed, and we have avoided any major outbreaks.

Administrative staff have largely returned to the workplace which has improved internal communication. However, the use of virtual desks has allowed staff to continue to work from home on occasions when they are working on specific projects, or the internal lockdown dictates it. Microsoft Teams has continued to allow Trustee Board meetings to be conducted remotely, along with the sub-committees of fundraising, finance and clinical governance.

The covid pandemic also had an impact on the supply chain and expenditure. China suffered further outbreaks and the strict lockdowns in factories had a huge impact on the supply chain. This led to global shortages of many items and an increase in costs as demand persisted. This situation was further compounded by Russia’s invasion of Ukraine which again affected the delivery of many items from food to building materials. The impact of these two situations led to a rapid increase in inflation, especially in energy supply and food. The well-publicised cost-of-living crisis affected most of the United Kingdom’s population and the social care sector did not escape the impact. Additionally, the larger than predicted increase in the National Minimum Wage announced in autumn led to salary compression through all employees. These factors were the rationale placing inflation as the number one risk to the organisation’s longevity.

The nursing and care review, which was the final part of the whole site service review, was completed in 2022. It saw the amalgamation of Richmond and Norfolk Wings into one wing, Richmond Wing. Norfolk Wing is now the therapy area and wellbeing hub maintaining the long-established links with the Duke of Norfolk. This change led to a slimmer management structure and a more flexible workforce capable of covering absence more easily. Following a benchmarking exercise against similar veterans’ charity nursing homes, the decision was taken to slightly reduce the staff to resident ration from 1:3 to 1:3.5 in the morning and 1:3.5 to 1:4 in the afternoons. This has been achieved whilst maintaining the high standards of nursing care and is still ahead of similar organisations.

In August 2022 the home unexpectedly lost the use of its electronic medical system. This was a direct result of the supplier being a victim of the ever-increasing number of cyber-attacks. CfV quickly adapted to this situation devising its own method for recording data for the down period. No resident information was lost or stolen in the period of downtime which lasted until the end of 2022. As a result, CfV has since found a new system which better suits its changing needs and this system will be implemented at the start of 2023.

Contact has been made from former residents of Blind Veterans (BV) at Brighton. With the sale of their building in Brighton and the procurement of a new site in Rustington some are seeking alternative accommodation.A meeting with the CEO of BV as led to collaborative approach and the staff from Brighton visiting CfV to advice on potential changes to the infrastructure.

Following successful fundraising applications CfV rolled out a new improved Wi-Fi system. This extended the existing system making Wi-Fi available in all parts of the building for residents. With an ever-increasing requirement from residents for internet connectivity for watching TV and communicating with family and friends CfV felt this was a very important step forward with technology.

The impacts of our earlier years Green Projects continue to save the home money on utilities and the long-hot summer of 2022 produced the best yield to date from the solar PV panels producing approximately a third of the home’s electricity in the peak of summer. The other noticeable change is the reduction in callout charges, repairs and labour on many of the items replaced under the project.

An ageing CCTV system was replaced providing greater security for the residents and staff. In addition, the two barriers into the visitor’s and staff car parks were replaced providing a visible deterrent. Finally, all of the single glazed windows in Gifford house have been replaced with low-maintenance and energy-efficient UPVc double glazed frames.

8

Group Trustees Report and Strategic Report TRUSTEES REPORT

Review of Activities 2022

The funding of social care remains a challenge for the Treasury. The rise in National Insurance, which was to deliver increased social care funding was initially redirected to the NHS, and then reversed on the change of Prime Minister leaving the sector struggling to provide care.

There was a small increase in the financial year of £200 million for social care but this has not eased the pressures on delivering the cost-of-care. This lack of additional funding allied to the inflationary pressures of services, consumables, utilities and salaries have made 2022 extremely challenging. Alongside this the infection control grants from West Sussex County Council reduced sharply and were then withdrawn leaving the sector struggling in a cost-of-living crisis.

CfV continued to provide interdisciplinary working from the multidisciplinary team. 2022 saw the successful recruitment of both a full-time Speech and Language therapist and Occupational therapist. These new staff slipped seamlessly into the organisation alongside the physiotherapy department to provide true interdisciplinary working. Subsidised charges were introduced for all therapies during 2022 helping to manage the operational deficit but the group exercise and cycling club have remained free to all and have proved extremely popular. These are funded by the restricted funds acquired by the Fundraising team.

Student nurse training has restarted and we now take student nurses from both Brighton and Portsmouth Universities. Physiotherapy student placements from the University of Brighton continue with at least one student here at all-times which ensures currency among the clinical staff. Unfortunately, in 2022 the placement of occupational therapy students expected to start during the year were put on hold during the omicron outbreak at the start of the year and, at present, have not restarted. The presence of students on provides residents with variety during the long-term rehabilitation.

Fundraising at Care for Veterans

CfV’s in-house Fundraising & Marketing team oversees a host of income streams including legacies, individual giving, corporate fundraising, community fundraising, trusts and foundations, events, digital and lottery, all of which are run inhouse. 2022 continued to be challenging with considerable difficulties in organising and delivering events. There were fantastic in person events in 2022 including a Fire walk, Clay Pigeon Shooting, 2 golf days, Peacehaven cliff abseil and a Skydive. Returning to some normality with hosting Summer Fayre and Christmas Market in the grounds at Care for Veterans, and we attended more community based events.

Trusts applications are still challenging and the giving has not returned to a pre Covid level. More trusts are either declining or the donation is lesser than applied for. The cost of living crisis has certainly had a detrimental impact on givers, and the amount they are donating. The fundraising budget for 2022 was not achieved but looking forward to 2023 with optimism and careful planning to achieve budget.

At present, direct approaches are only made to those with legitimate interest or with prior consent. A supporter’s details are removed from the database if they so request and CfV does not share or swap data with third parties. Any data retained is held and maintained within the guidelines of GDPR. All CfV’s fundraisers are aware of the Data Protection Act, are trained in GDPR legislation and are required to refresh that training annually. CfV is conscious of pressures which vulnerable people might experience and its 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 2022 had zero complaints via the FPS.

CfV does not currently employ external professional fundraising individuals, companies, or organisations. The Fundraising & Marketing team manages its own fundraising events and initiatives to maintain control over how people are approached, how they are asked to support and how they are thanked. CfV manages its own raffles and lottery in accordance with the terms set out by the local authority with whom it is registered.

CfV does not cold-call potential supporters, but use a wide variety of techniques, traditional and digital, to raise the profile of the charity and attract supporters. Once an organisation or individual registers as a supporter they are regularly updated as to how their donations have been used to benefit the veterans. CfV has made it as easy for supporters to unsubscribe as a supporter as it is to join to protect any vulnerable individuals.

Volunteers

There has been continued support from volunteers in the charity. The pandemic has limited the roles that volunteers can undertake, but during the lockdown the gardeners have continued to work outside and maintain the site. Additionally, volunteers have supported fundraising events and assisting at the Christmas market. The trustees remain grateful for their continued support.

9

Group Trustees Report and Strategic Report TRUSTEES REPORT

Review of Activities 2022

Reserves

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 level of reserves is currently equal to 9-10 months expenditure and is regularly reviewed. The current levels of available reserves are held in line with the CfV investment and liquidity policy.

Unrestricted Fund

The total unrestricted reserves fund of £4.2m (2021: £4.5m) represents the unrestricted reserve fund, adjusted for the pension reserve fund. The pension value at 31 December 2022 showed a surplus of £328k compared to a surplus of £67k in 2021. This reduction in the pension scheme deficit came as a result of, the continued contributions from CfV and a reduction in the value placed on the liability for accounting purposes (mainly due to an increase in the discount rate). The £328k surplus has not been recognised in the financial statements. The criteria of the recognition of a surplus as an asset as described in accounting policy 1.8 was not met and therefore the surplus has not been recognised.

Designated funds

The designated reserves are made up of the capital fund and the permanent endowment fund. At the end of the year, the capital fund stood at £3.17m (2021: £3.64m) which represents CfV’s investment in capital items, principally buildings, with the remainder being the permanent endowment fund of £0.15m (2021: £0.16m).

Restricted fund

The restricted fund stood at £0.32m (2021: £0.44m) at the year end and represents smaller funds with restrictions placed on them.

Investments

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

Following the successful transfer of the existing managed portfolio into the SUTL Cazenove Charity Multi-Asset Fund (CMAF) in 2020, 2021 saw positive returns from the fund. In 2022 CfV following an investment review moved one third of the CMAF into the SUTL Cazenove Responsible Multi-Asset Fund

Both CMAF and the RMAF aim 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. It is intended however that the RMAF has a positive impact on people and the planet by avoiding harm through ESG integration and exclusions.

At 31 December 2022 the Charity's investments were valued at £4.23m (2021: £4.49m), as set out in Note 9. This amount includes £0.30m (2021: £0.29m) held in short term deposits. CMAF and RMAF remain liquid should cash be required.

The CMAF produced a total return of -6.4% over the last 12 months. The RMAF produced a return of -1.2% for the period of investment in April 2022 to 31 December 2022. The board of Trustees were content with the performance of the investments over the period.

Investment Policy

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

10

Group Trustees Report and Strategic Report TRUSTEES REPORT

Review of Activities 2022

Portfolio Impact Measurement of the CMAF and RMAF

Planet CMAF RMAF Carbon footprint 234 tonnes of CO2 55 tonnes of CO2 vs benchmark 290 tonnes of CO2 166 tonnes of CO2 People Social dividend 0.0% p.a 2.8% p.a vs benchmark -5.2% p.a -5.2% p.a

To provide further insight into the portfolio, Schroders includes 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 the 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 CfV 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 available, 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.

• Impact benchmark: 20FTSEAllShare – 80MSCIACWorld ex UK.

Trading Subsidiary

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

11

Group Trustees Report and Strategic Report TRUSTEES REPORT

Review of Activities 2022

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 surplus of £328,000 existed at 31 December 2022 (2021: £67,000 surplus). This amount has not been recognised as a surplus in these accounts as it does not meet the recognition criteria.

On 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 and this scheme was discontinued on 30 April 2014. Since 1 May 2014, CfV has provided a workplace defined-contribution pension scheme 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, a level which is consistent with the highest levels of care and suitable accommodation and the Trustees’ 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 oversees and approves 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 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 2018-2023 strategy is in its final year of currency and a new strategy 2023-2028 will be developed during 2023.

Future Prospects

The Board of Trustees acknowledges the work that has gone into increasing the occupancy at CfV. However, to ensure longevity they support the Senior Management Team continuing to scope opportunities such as accommodation for those suffering from dementia or the visually impaired. This new healthcare commissioner’s strategy identifies that for some patients returning home, whether alone or with family, is impractical. This is particularly true among those suffering from dementia. The NHS reports that approximately 675,000 people have dementia in England, approximately one in every fourteen people aged over 65. Until now, CfV has not accepted those with dementia and relocated those who develop it whilst in the care of the home. In 2022 CfV investigated the potential for the conversion of one wing to cater for this increasing number of sufferers. Whilst it was agreed not to progress this the scoping study remains on file and available to action at any future stage.

Whilst the Trustees support the CEO’s task of reducing the operational deficit, they have agreed that the policy of CfV maintaining the highest level of affordable nursing and rehabilitation services. The continuing operational deficit is planned to be met by fundraising, The adjustments to the staff to resident ratios will also see a narrowing of the gap between the cost of care and funding.

Following the invasion of Ukraine in February and the covid outbreaks in China resulting in reduced production the global economic burden is becoming clearer. Higher energy and food prices have created a cost-of-living crisis in many countries around the world and this will continue into 2023. Following an earlier slump in the value of the reserves portfolio there has been a recovery later in 2022. Our investment managers are looking to increase the “quality” bias within portfolios.

12

Group Trustees Report and Strategic Report

TRUSTEES REPORT 2023 Objectives

The main objectives for 2023 are:

• Introduce a new electronic medical records system.

• Maximising resident occupancy in the 60 single rooms

• Investigating the potential for accommodation for the blind or visually impaired veterans

• Replacing all boilers that are old and energy inefficient as part of the green project.

• Re-open a scoping into the use of day services at CfV.

How the objectives for 2023 will affect the charity:

• The new electronic medical record system will give all staff a hand-held device to record medical records on the go, freeing up administrative time.

• Increased resident numbers will increase funding and support the home during the cot-of-living crisis.

• Having plans to diversify into other elements of care will offer options if point two is unsuccessful.

• 95% of the cost of a new boiler is the case that can go through it. A boiler that produces the same output using 10-20% less gas will significantly reduce utilities that continue to increase in cost.

• Day services will ensure the fullest use of the site’s facilities and could offer future residents, supporters, volunteers and donors.

IMPLICATIONS OF COVID-19

Whilst the impact of Covid-19 has almost disappeared as a concern in the general population the restrictions in the social care sector persist. Restrictions on visiting, trips out, room access and the wearing of PPE including masks when dealing with someone with symptoms or in areas of high risk.

Despite this, generally there has been a relaxation and routine testing has stopped, mask wearing has ceased except in certain situations and vaccinations are no longer compulsory and are not recorded.

Admissions are now allowed again and the single rooms have removed any restrictions regarding new residents. However, the caveat of only two cases, staff or residents, places the home back into lockdown further tightening restrictions.

13

Group Trustees Report and Strategic Report TRUSTEES REPORT

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: [phone])

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 oversees the appointment of new trustees. The Chairman will nominate an individual when a vacancy exists and, subject to the approval of the Board, they will be co-opted onto the board and appointed at the next AGM. Following appointment to the Board a new trustee will;

• undergo a number of briefing sessions with the senior management team and the Chairman.

• undertake a number of visits to CfV to understand the workings of the organisation and to meet staff members and residents.

• be invited to undertake one of the quarterly visiting Trustee visits to the home on behalf of the Chairman.

• be invited to join the Board, for a period of four years and then may be re-elected for one further period of four ‐

• years. They are not normally eligible for a further re appointment.

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

Organisation

• Every quarter, two appointed trustees will undertake trustees’ rounds and make inspections of all departments, to the extent permitted under any Covid-19 related lockdown restrictions in place.

• The Board manages the business and affairs of CfV and reviews the performance of CfV at quarterly Board meetings.

• Extraordinary meetings can be called at the request of three or more trustees.

• There are four subcommittees – the Finance Committee, the Fundraising and Marketing Committee, the Clinical Governance Committee and the Remuneration Committee.

• The board has established levels of authority to ensure proper accountability and transparency.

The Board appoints the Chief Executive, who reports to the Chairman and is accountable to the Board. The Chief Executive 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 CfV’s registration body, the Care Quality Commission (CQC), and is the point of contact in all matters emanating from it. 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 CfV.

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

A formal Governance review of the Trustee board was undertaken in late 2022 by an external company. The recommendations from the review will be implemented in 2023.

14

Group Trustees Report and Strategic Report TRUSTEES REPORT

Structure, Governance and Management

Related Parties

The Charity’s wholly owned subsidiary Care for Veterans 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 the executives are set out below along with the SubCommittees of Care for Veterans.

Trustee

Role

Sub-committees

Cdre James Fanshawe CBE Chairman 1,3 Retires 17[th] May 2023 Mr David Williams Deputy Chair, Chair Finance 1,3 Col John Saville FIMechE 2,4 Mr Michael Jones 2 Mr John McKee Chair Fundraising and Marketing 2 Dr Timothy Fooks Chair Clinical Governance 4 Ms Georgina Crowhurst 1 Mr Richard Andrew 1 Mrs Dawn Hart 4 Mrs Anna Harrison 4

Sub-committees

1. Finance Committee

2. Fundraising and Marketing Committee

3. Remuneration Committee

4. Clinical Governance Committee

Executives

AD Neaves, MSc BSc (Hons)

Chief Executive

Legal and administrative information

Auditors

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

Pension Trustees

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

Pension Administrators

Cartwright Mill Pool House Mill Lane Godalming Surrey GU7 1EY

Bankers

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

Principle office of Charity and

Registered Office

Gifford House Boundary Road Worthing West Sussex BN11 4LJ

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

15

Group Trustees Report and Strategic Report

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:

• Select suitable accounting procedures and then apply them consistently.

• Make judgements and estimates that are reasonable and prudent.

• State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.

• Prepare the financial statements on the going concern basis unless it is appropriate to presume that the charitable company will not continue in business.

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:

• There is no relevant audit information of which the company's auditors are unaware; and

• The Trustees have taken steps to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

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 2022. With their continued support, we look forward to enhancing the delivery of CfV’s charitable services.

This report was approved by the Trustees

'l �[�fand signed on their behalf by:]

J Fanshawe CBE

Chairman

16

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 2022 which comprise the consolidated statement of financial activities and income and expenditure account, the consolidated and charity balance sheets, the consolidated cashflow statement and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice.

In our opinion, the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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.

Conclusion 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 trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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:

• the information given in the trustees' report, which includes the directors' report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors' report and strategic report included within the trustees' report has been prepared in accordance with applicable legal requirements.

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 directors' report and strategic report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit, or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

17

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF CARE FOR VETERANS

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the 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.

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:

• Obtaining an understanding of the legal and regulatory framework that the charitable company operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations, including a review of CQC reports;

• Obtaining an understanding of the charitable company’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud

• Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the charitable company and our sector-specific experience.

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: employment law; and, compliance with the UK Companies Act and UK Charities Act.

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

• Making enquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud;

• Reviewing minutes of meetings of the board and senior management;

• Reading correspondence with regulators;

• Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to depreciation; and

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

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 non-compliance 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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and 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)

for and on behalf of Carpenter Box

Carpenter Box is a trading name of Carpenter Box Limited

18

Consolidated Statement of Financial Activities and Income and Expenditure Account

For the year ended 31 December 2022

Note INCOME AND ENDOWMENTS FROM 2 2 2 3a 3b 4 4 NET (LOSSES)/GAINS ON INVESTMENTS 9 6 Actuarial gains/(losses) on defined benefit pension scheme Net income/(expenditure) before investments EXPENDITURE ON Donations and legacies Other trading activities Investments Charitable activities Other income TOTAL INCOME Raising funds Charitable activities TOTAL EXPENDITURE FUNDS BALANCE CARRIED FORWARD NET INCOME/ (EXPENDITURE) Transfers between funds Net movement in funds Funds balance brought forward

Unrestricted Endowment 2022 Unrestricted Endowment 2021 Funds & Restricted Total Funds & Restricted Total £ £ £ £ £ £ 844,935 361,010 1,205,945 609,346 435,628 1,044,974 574,850 - 574,850 468,642 - 468,642 172,045 - 172,045 153,590 - 153,590 1,591,830 361,010 1,952,840 1,231,578 435,628 1,667,206 2,845,291 - 2,845,291 2,507,156 - 2,507,156 - 50,400 50,400 3,099 86,482 89,581 4,437,121 411,410 4,848,531 3,741,833 522,110 4,263,943 295,835 - 295,835 284,299 1,000 285,299 3,876,523 1,004,792 4,881,315 3,724,357 972,705 4,697,062 4,172,358 1,004,792 5,177,150 4,008,656 973,705 4,982,361 (410,922) (14,915) (425,837) 248,795 8,556 257,351 (146,159) (608,297) (754,456) (18,028) (443,039) (461,067) (8,959) 8,959 - (20,684) 20,684 - (193,000) - (193,000) 232,000 - 232,000 (348,118) (599,338) (947,456) 193,288 (422,355) (229,067) 4,516,965 4,245,612 8,762,577 4,323,677 4,667,967 8,991,644 4,168,847 3,646,274 7,815,121 4,516,965 4,245,612 8,762,577 (718,418) 264,763 (593,382) (328,619) (266,823) (451,595)

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 2022

Note 8 9 Current assets 10 11 12a 12b Net assets before pension scheme liability NET ASSETS AFTER PENSION LIABILITY 14 Capital fund 14 14 Unrestricted: Pension reserve fund 6 General fund 13 Total unrestricted Tangible assets Investments TOTAL FIXED ASSETS NET CURRENT ASSETS Creditors - amounts falling due within one year Stocks Debtors Cash at bank and in hand Endowment fund Creditors - amounts falling after more than one year Defined benefit pension scheme asset/(liability) (including revaluation reserve (£144,096) [2021: £350,113] for Group and Charity) Restricted funds Designated funds Revenue funds TOTAL CHARITY FUNDS Fixed assets	2022 2021 Total Total £ £ 3,195,199 3,665,916 4,238,397 4,498,035 7,433,596 8,163,951 15,872 11,458 440,558 343,549 212,300 468,235 668,730 823,242 (287,205) (286,564) 381,525 536,678 - (5,052) 7,815,121 8,695,577 - 67,000 7,815,121 8,762,577 149,149 164,064 3,174,199 3,644,916 322,935 436,641 - 67,000 4,168,838 4,449,956 4,168,838 4,516,956 7,815,121 8,762,577 Group	2022 2021 Total Total £ £ 3,358,469 3,829,186 4,238,398 4,498,036 7,596,867 8,327,222 15,872 11,458 438,177 349,788 211,681 459,147 665,730 820,393 (284,205) (283,715) 381,525 536,678 - (5,052) 7,978,392 8,858,848 - 67,000 7,978,392 8,925,848 149,149 164,064 3,337,469 3,808,186 322,935 436,641 - 67,000 4,168,839 4,449,957 4,168,839 4,516,957 7,978,392 8,925,848 Charity

TOTAL CHARITY FUNDS 7,815,121 J Fanshawe CBE D Williams

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 2022

Note a 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 Cashflows from financing activities Payment of finance lease obligations (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 Net increase / (decrease) in cash and cash equivalents 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	2022 2021 £ £ (225,257) 176,076 172,045 153,590 (32,443) (97,705) (1,452,274) (499,857) 1,294,119 - (18,553) (443,972) (12,125) (12,125) 212,300 468,235 212,300 2022 2021 £ £ (328,619) (718,418) (172,045) (153,590) 503,160 510,559 (8,044) 351,436 (4,414) 1,317 (97,009) 318,788 (118,286) (134,016) (225,257) 176,076 Group Group (255,935) (280,021) 468,235 748,256	2022 2021 £ £ (216,788) 179,056 172,045 153,590 (32,443) (97,705) (1,452,274) (499,857) 1,294,119 - (18,553) (443,972) (12,125) (12,125) 211,681 459,147 211,681 2022 2021 £ £ (328,619) (718,418) (172,045) (153,590) 503,160 510,559 (8,044) 351,436 (4,414) 1,317 (88,389) 321,977 (118,437) (134,225) (216,788) 179,056 Charity Charity (247,466) (277,041) 459,147 736,188

See note 23 for net fund analysis note.

21

Notes to the Consolidated Accounts for the year ended 31 December 2022

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 Accounting 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) effective 1 January 2019, the Charities Act 2011, the Companies Act 2006.

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 2022 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 on a receivable basis 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.

22

Notes to the Consolidated Accounts for the year ended 31 December 2022

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.

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 charity and group operations, as detailed on page 13, 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 grants from West Sussex County Council, from a Central Government grant, 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'. 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.

1.18 Leases

Rentals payable under operating leases are charged on a straight line basis over the term of the relevant lease except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

23

Notes to the Consolidated Accounts for the year ended 31 December 2022

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:	2022 2021 Unrestricted Restricted Total Unrestricted Restricted Total £ £ £ £ 142,458 361,010 503,468 195,379 435,628 631,007 702,477 - 702,477 413,967 - 413,967 844,935 361,010 1,205,945 609,346 435,628 1,044,974 91,051 - 91,051 78,969 - 78,969 471,308 - 471,308 367,382 - 367,382 12,491 - 12,491 22,291 - 22,291 574,850 - 574,850 468,642 - 468,642 172,045 - 172,045 153,590 - 153,590

3a. Analysis of income from charitable activities

Fee Income Contributions from residents Veterans Agency capitation grant 3b. Other income Other income Grants received Coronavirus Job Retention Scheme TOTAL INCOME

2022 2021 Unrestricted Restricted Total Unrestricted Restricted Total £ £ £ £ £ £ 2,781,467 - 2,781,467 2,439,835 - 2,439,835 63,824 - 63,824 67,321 - 67,321 2,845,291 - 2,845,291 2,507,156 - 2,507,156 2022 2021 Unrestricted Restricted Total Unrestricted Restricted Total £ £ £ £ £ £ - 50,400 50,400 - 86,482 86,482 - - - 3,099 - 3,099 - 50,400 50,400 3,099 86,482 89,581 4,437,121 411,410 4,848,531 3,741,833 522,110 4,263,943

24

Notes to the Consolidated Accounts for the year ended 31 December 2022

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	2022 2021 Unrestricted Restricted Total Unrestricted Restricted Total £ £ £ £ £ £ 218,875 - 218,875 226,254 - 226,254 71,740 - 71,740 52,620 1,000 53,620 5,220 - 5,220 5,425 - 5,425 295,835 - 295,835 284,299 1,000 285,299

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	2022 Unrestricted Restricted Total Unrestricted Restricted £ £ £ £ £ 2,874,201 465,156 3,339,357 2,846,426 373,130 1,002,322 539,636 1,541,958 877,931 599,575 3,876,523 1,004,792 4,881,315 3,724,357 972,705 4,172,358 1,004,792 5,177,150 4,008,656 973,705 2022 Staff costs Depreciation Other Total £ £ £ £ 3,339,357 490,940 1,051,018 4,881,315 210,748 - 85,087 295,835 3,550,105 490,940 1,136,105 5,177,150	2021 Total £ 3,219,556 1,477,506 4,697,062 4,982,361 2021 Total £ 4,697,062 285,299 4,982,361

Analysis of total resources expended for 2021 include provision of residental care staff costs amounting to £3,219,556, depreciation of £499,586 and other costs of £977,920. Other expenditure included staff costs of £216,896 and other costs of £68,403.

25

Notes to the Consolidated Accounts for the year ended 31 December 2022

5. Trustees and employees

5. Trustees and employees
	2022		2021
	Total		Total
	£		£
Staff costs during the year were as follows:
Wages and salaries	3,173,308		3,084,838
Social security costs	280,758		255,731
Pension costs:
Defined benefit scheme *		-		-
Defined contribution scheme		-		-
Work place pension scheme	96,039		95,883
	3,550,105		3,436,452
* See cost detail at note 6. Staff costs above include agency staff. The total average monthly number of employees during the reporting period (full and part-time staff) was:

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 See cost detail at note 6. Staff costs above include agency staff. The total average monthly number of employees during the reporting period (full and part-time staff) was:	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 See cost detail at note 6. Staff costs above include agency staff. The total average monthly number of employees during the reporting period (full and part-time staff) was:	2022 2021 Total Total £ £ 3,173,308 3,084,838 280,758 255,731 - - - - 96,039 95,883
		3,550,105 3,436,452
	See cost detail at note 6. aff costs above include agency staff. e total average monthly number of employees during the reporting period (full and part-time staff) was:
	Nursing and clinical staff Care assistants Kitchen Domestic Facilities and maintenance Occupational Therapy Physiotherapy Speech Therapy Social and Recreation Support Fundraisers Chaplain Administration	2022 2021 Total Total 19 20 53 55 7 8 12 13 4 3 2 2 3 3 1 1 2 2 5 4 6 6 1 1 6 5
		121 123

Reimbursements of travel expenses, totalling £147.60 were made to one Trustee of Care for Veterans for the year ended 31 December 2022 (2021: £147.60). During the year there were no donations from Trustees made to CfV (2021: None).

The premium for the trustees' indemnity insurance is now included within the combined liability insurance as in 2021.

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

£60,001 - £70,000 £70,001 - £80,000 £80,001 - £90,000	2022 2021 Total Total 1 - - - 1 1

During the year pension contributions of £8,745 (2021: £4,019) 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 8 staff were recognised as key management personnel the total paid to these indiviuals amounted to £428,176 (2021: £406,184). Included within this amount was £14,644 (2021: £13,541) for contributions to the Work Place Pension scheme operated by the charity.

26

Notes to the Consolidated Accounts for the year ended 31 December 2022

6. Retirement Benefits

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

The assets and liabilities of the plan have been calculated for the purposes of FRS102 based on the results of the actuarial valuation as at 31 March 2022, adjusted for the different assumptions required under FRS102 and taking into consideration changes in the membership since that date.

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

Discount rate Retail Prices Inflation ("RPI") Consumer Prices Inflation ("CPI") Pension increases: RPI, max 5%, min 0%	2022 2021 % % 4.80 1.90 3.20 3.40 2.70 2.90 3.10 3.30

The underlying mortality assumption is based upon the standard table known as S3PxA on a year of birth usage with CMI_2021 future improvement factors and a long-term rate of future improvement of 1.25% p.a. (2021: S3PxA, CMI_2020, 1.25% p.a). This results in the following life expectancies:

• Male age 65 now has a life expectancy of 86.9 years (2021: 86.9 years)

• Female age 65 now has a life expectancy of 89.3 years (2021: 89.3 years)

• Male age 45 now, retiring at 65, has a life expectancy from 65 of 88.2 years (2021: 88.2 years)

• Female age 45 now, retiring at 65, has a life expectancy from 65 of 90.7 years (2021: 90.7 years)

No allowance has been made at retirement for non-retired members to commute part of their pension for a lump sum in these calculations.

Employee Benefit obligations

The amounts recognised in the balance sheet as at 31 December 2022 (with comparative figures as at 31 December 2021) are as follows:

Market value of plan assets Present value of plan liabilities Net defined benefit asset/(liability)	2022 2021 £ £ (3,398,000) (5,095,000) 3,398,000 5,162,000
	- 67,000

The amounts to be recognised in the consolidated statement of financial activities for the year ending 31 December 2022 (with comparative figures for the years ending 31 December 2021) 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	2022 2021 £ £ - - (2,000) 3,000 - - - - - -
	(2,000) 3,000

27

Notes to the Consolidated Accounts for the year ended 31 December 2022

6. Retirement Benefits

Changes in the present value of the plan liabilities for the year ended 31 December 2022 (with comparative figures for the year ending 31 December 2021) are as follows:

Present value of plan liabilities at beginning of period Current service cost Employee contributions Benefits paid Interest on plan liabilities Actuarial (gains)/losses (Gain)/loss on plan changes Present value of plan liabilities at end of period	2022 2021 £ £ 5,095,000 5,156,000 - - - - (124,000) (95,000) 96,000 66,000 (1,669,000) (32,000) - -
	3,398,000 5,095,000

Changes in the fair value of the plan assets for the year ending 31 December 2022 (with comparative figures for the year ending 31 December 2021) are as follows:

Market value of plan assets at beginning of period Contributions paid by the company Employee contributions Benefits paid Administrative expenses Interest on plan assets Return on assets, less interest included in Profit & Loss Market value of Scheme assets at end of period Actual return on plan assets	2022 2021 £ £ 5,162,000 4,870,000 124,000 124,000 - - (124,000) (95,000) - - 98,000 63,000 (1,862,000) 200,000
	3,398,000 5,162,000 (1,764,000) 263,000

The major categories of plan assets as a percentage of total plan assets for the year ending 31 December 2022 (with comparative figures for the year ending 31 December 2021) are as follows:

Equities and Property Bonds Diversified Growth Liability Driven Investment ("LDI) Total	2022 2021 % % 20 14 1 17 48 44 21 18 10 7
	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 2022 (with comparative figures for the year ending 31 December 2021) 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 Changes in assumptions underlying the present value of plan liabilities Remeasurement of net defined benefit liability recognised in OCI	2022 2021 £ £ (1,862,000) 200,000 - - - - 1,669,000 32,000
	(193,000) 232,000

28

Notes to the Consolidated Accounts for the year ended 31 December 2022

6. Retirement Benefits

Movement in net benefit asset/(liability) during the year ending 31 December 2022 (with comparative figures for the year ending 31 December 2021) 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	2022 2021 £ £ 67,000 (286,000) 2,000 (3,000) 124,000 124,000 (193,000) 232,000
	- 67,000

The criteria for the recognition of the surplus as an asset as described in note 1.8 was not met. The actuarial gains on the plan liabilities have therefore been restricted by £328,000 so as not to recognise the surplus.

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

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

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 2022

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

8. Tangible fixed assets
GROUP Cost At 1 January 2022 Additions Disposals At 31 December 2022 Depreciation At 1 January 2022 Provided in period On disposals At 31 December 2022 Net book value at 31 December 2022 Net book value at 31 December 2021 CHARITY Cost At 1 January 2022 Additions Disposals At 31 December 2022 Depreciation At 1 January 2022 Provided in period On disposals At 31 December 2022 Net book value at 31 December 2022 Net book value at 31 December 2021	£ £ £ £ 8,874,999 1,335,217 114,042 10,324,258 15,146 17,297 - 32,443 (27,855) - - (27,855) 8,862,290 1,352,514 114,042 10,328,846 5,671,637 904,810 81,895 6,658,342 373,903 109,000 8,037 490,940 (15,635) - - (15,635) 6,029,905 1,013,810 89,932 7,133,647 2,832,385 338,704 24,110 3,195,199 Freehold property Plant and equipment Vehicles Total
	3,203,362 430,407 32,147 3,665,916
	£ £ £ £ 9,038,269 1,335,217 114,042 10,487,528 15,146 17,297 - 32,443 (27,855) - - (27,855) 9,025,560 1,352,514 114,042 10,492,116 5,671,637 904,810 81,895 6,658,342 373,903 109,000 8,037 490,940 (15,635) - - (15,635) 6,029,905 1,013,810 89,932 7,133,647 2,995,655 338,704 24,110 3,358,469 Freehold property Plant and equipment Vehicles Total
	3,366,632 430,407 32,147 3,829,186

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

	2022	2022	2021
	£		£
		5,052	17,177
		5,052	17,177

30

Notes to the Consolidated Accounts for the year ended 31 December 2022

9. Fixed asset investments

Quoted investments Market value at 1 January 2022 Additions Disposals Analysed as: Responsible Multi-Asset Fund Charity Multi-Asset Fund Net realised/unrealised gains Market value at 31 December 2022 Short term deposits Investments (Group) Investments (Charity) (Historical cost £4,382,492 [2021: £4,147,922]) Investments in group undertakings at 1 January 2022 and at 31 December 2022 (Historical cost £4,382,492 [2021: £4,147,992])

2022 2021 Total Total £ £ 4,207,065 3,449,857 1,452,274 499,857 (1,294,119) - (425,837) 257,351 3,939,383 4,207,065 299,014 290,970 4,238,397 4,498,035 1 1 4,238,398 4,498,036 2022 2021 Total Total £ £ 2,824,506 4,207,065 1,413,891 -

4,238,397 4,207,065

The Charity wholly owns the following subsidiary:

Country of Incorporation Class of share capital held Principal activity Provision of nursing care and Care for Veterans Services Limited (formerly England Ordinary - 100% of ownership other trading activities QAHH Services Limited)

31

Notes to the Consolidated Accounts for the year ended 31 December 2022

10. Stocks

Capitation fees receivable Legacies receivable Income tax recoverable Prepayments and other debtors Gift aid donations from trading subsidiary Total debtors Amounts due from group undertakings Consumable stores Total consumable stores 11. Debtors Resident contributions receivable	Group Charity £ £ 15,872 15,872 15,872 15,872 Group Charity £ £ 235,159 167,427 5,421 5,421 149,203 149,203 1,954 1,954 48,821 48,821 - 7,177 - 58,174 440,558 438,177 2022 2022	Group Charity £ £ 11,458 11,458 2021
		11,458 11,458 Group Charity £ £ 194,475 160,034 5,421 5,421 86,630 86,630 4,998 4,998 52,025 52,025 - 7,871 - 32,809 2021
		343,549 349,788
12a. Creditors: amounts falling due within one year
Pension Trade creditors Staff remuneration Social security and other taxes Hire purchase creditor Other creditors and accruals Total creditors (falling due within one year)	Group Charity £ £ 81,955 81,955 50,689 50,689 19,114 19,114 61,271 61,271 5,052 5,052 69,124 66,124 287,205 284,205 2022	Group Charity £ £ 75,880 75,880 52,593 52,593 17,896 17,896 56,383 56,383 12,125 12,125 71,687 68,838 2021
		286,564 283,715

12a. Creditors: amounts falling due within one year
	2022		2021
	Group	Charity	Group	Charity
	£	£	£	£
Trade creditors	81,955	81,955	75,880	75,880
Staff remuneration	50,689	50,689	52,593	52,593
Pension	19,114	19,114	17,896	17,896
Social security and other taxes	61,271	61,271	56,383	56,383
Hire purchase creditor	5,052	5,052	12,125	12,125
Other creditors and accruals	69,124	66,124	71,687	68,838
Total creditors (falling due within one year)	287,205	284,205	286,564	283,715

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

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

Total creditors (falling due after more than one year) Hire purchase creditor	Group Charity £ £ - - - - 2022	Group Charity £ £ 5,052 5,052 2021
		5,052 5,052

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

32

Notes to the Consolidated Accounts for the year ended 31 December 2022

13. General fund

At 31 December 2022 14. Designated and restricted funds GROUP At 1 January 2022 Incoming resources Expenditure Gains/(losses) on investments Transfer between funds Transfers from/(to) revenue funds At 31 December 2022 Revenue funds At 1 January 2022 Retained surplus/(deficit) for the year Transfers from/(to) restricted funds		Group Charity Group Charity £ £ £ £ 4,449,956 4,449,957 4,609,677 4,609,678 (272,159) (272,159) (139,037) (139,037) (8,959) (8,959) (20,684) (20,684) 4,168,838 4,168,839 4,449,956 4,449,957 £ £ £ £ 164,064 3,644,916 436,641 4,245,621 - 411,410 411,410 - (490,940) (513,852) (1,004,792) (14,915) - - (14,915) - 11,264 (11,264) - 8,959 - 8,959 Endowment Funds Designated Capital Funds Restricted Funds Total 2022 2021	Group Charity Group Charity £ £ £ £ 4,449,956 4,449,957 4,609,677 4,609,678 (272,159) (272,159) (139,037) (139,037) (8,959) (8,959) (20,684) (20,684) 4,168,838 4,168,839 4,449,956 4,449,957 £ £ £ £ 164,064 3,644,916 436,641 4,245,621 - 411,410 411,410 - (490,940) (513,852) (1,004,792) (14,915) - - (14,915) - 11,264 (11,264) - 8,959 - 8,959 Endowment Funds Designated Capital Funds Restricted Funds Total 2022 2021	Group Charity £ £ 4,609,677 4,609,678 (139,037) (139,037) (20,684) (20,684) 2021
		(8,959)
		4,168,838		4,449,956 4,449,957
			£ £ £ £ 164,064 3,644,916 436,641 4,245,621 - 411,410 411,410 - (490,940) (513,852) (1,004,792) (14,915) - - (14,915) - 11,264 (11,264) - 8,959 - 8,959 Endowment Funds Designated Capital Funds Restricted Funds Total
			149,149 3,174,199 322,935 3,646,283

The transfers between funds during the year are represented by additional funds when required to show progress; transfers to and from these funds 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 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. The current value of these is £128,149.

CHARITY At 1 January 2022 Incoming resources Expenditure Gains/(losses) on investments Transfer between funds Transfers from/(to) revenue fund At 31 December 2022	£ £ £ £ 164,064 3,808,186 436,641 4,408,891 - - 411,410 411,410 - (490,940) (513,852) (1,004,792) (14,915) - - (14,915) - 11,264 (11,264) - - 8,959 - 8,959 Total Endowment Funds Designated Capital Funds Restricted Funds
	149,149 3,337,469 322,935 3,809,553

33

Notes to the Consolidated Accounts for the year ended 31 December 2022

15. Analysis of movements in restricted funds

15. Analysis of movements in restricted funds
Analysis of movements in restricted funds - previous year Core Service Richmond Wing extension Hospital equipment - general Green Projects - Electric Vehicle Occupational Therapy Equipment Sporting chances for disabled veterans Mixed rehabilitation related costs Green Project - Solar panels & maintenance Lift replacement and maintenance Covid-19 help grants Green Projects - Electric Vehicle Covid-19 help grants Greenhouse and Gardening Chaplaincy costs CFV choir costs Mixed rehabilitation related costs Green Project - Solar panels & maintenance Lift replacement and maintenance Richmond Wing extension Hospital equipment - general Greenhouse and Gardening Chaplaincy costs CFV choir costs Sporting chances for disabled veterans Wifi and IT equipment Room conversions to single rooms	£ £ £ £ £ - 9,946 (731) (9,215) - 27,308 1,750 (25,203) - 3,855 3,000 3,500 (3,207) - 3,293 45 - - - 45 21,049 - (19,000) (2,049) - 342,951 336,518 (389,991) - 289,478 8,537 - (2,829) - 5,708 6,849 - (2,280) - 4,569 6,221 - (6,221) - - 15,851 9,296 (12,660) - 12,487 4,830 - (1,330) - 3,500 - 50,400 (50,400) - - 436,641 411,410 (513,852) (11,264) 322,935 Funds 31 December 2022 Balance at 1 January 2022 Income Expenditure Transfers
	£ £ £ £ £ 19,723 26,500 (46,223) - - - 34,250 (6,942) - 27,308 524 3,000 (524) - 3,000 45 - - - 45 15,257 35,000 (14,250) (14,958) 21,049 336,011 308,081 (301,141) - 342,951 11,366 - (2,829) - 8,537 9,129 - (2,280) - 6,849 - 2,000 (2,000) - - 6,221 - - - 6,221 6,572 23,297 (7,684) (6,334) 15,851 43,678 3,500 (2,165) (40,183) 4,830 1,600 - (1,600) - - - 86,482 (86,482) - - 450,126 522,110 (474,120) (61,475) 436,641 Funds 31 December 2021 Balance at 1 January 2021 Income Expenditure Transfers

Name of restricted fund

Sporting chances for disabled veterans Greenhouse and gardening Mixed rehabilitation related costs Green Project - Solar panels Lift replacement and maintenance Richmond Wing extension Hospital equipment - general Residents costs and entertainment Green Projects - Electric Vehicle Occupational Therapy Equipment Room Conversions Covid-19 help grants CFV choir costs Chaplaincy costs

Description of fund

Sporting activities for disabled veterans (delayed due to Covid-19) 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 Replacement of hospital equipment To purchase small items for residents needs To purchase an electric ambulance IT equipment to aid residents Conversion of double rooms to single rooms To provide funds to help during Covid-19 Small donations towards running costs for CfV choir To provide for chapel services and costs

34

Notes to the Consolidated Accounts for the year ended 31 December 2022

16. Analysis of net assets between funds

GROUP Designated funds Endowment funds Capital fund Revenue funds Restricted fund Unrestricted fund Pension fund asset CHARITY Designated funds Endowment funds Capital fund Revenue funds Restricted fund Unrestricted fund Pension fund asset (including unrealised losses of £14,915) (2021: Gains £8,566)) (including unrealised losses of £14,915) (2021: Gains £8,566)) (including unrealised losses of £479,436 (2021: Gains £248,785)) (including unrealised losses of £479,436 (2021: Gains £248,785))	£ £ £ £ £ 21,000 128,149 - - - 149,149 3,174,199 3,174,199 3,195,199 128,149 - - - 3,323,348 - - 322,935 - - 322,935 - 4,110,248 58,590 - - 4,168,838 - - - - - - - 4,110,248 381,525 - - 4,491,773 3,195,199 4,238,397 381,525 - - 7,815,121 Investments Net Current Assets Creditors due >1year Total Tangible Fixed Assets Debtors due >1year
	£ £ £ £ £ 21,000 128,149 - - - 149,149 3,337,469 - - - - 3,337,469 3,358,469 128,149 - - - 3,486,618 - - 322,935 - - 322,935 - 4,110,249 58,590 - - 4,168,839 - - - - - - - 4,110,249 381,525 - - 4,491,774 3,358,469 4,238,398 381,525 - - 7,978,392 Creditors due >1year Investments Net Current Assets Total Debtors due >1year Tangible Fixed Assets

35

Notes to the Consolidated Accounts for the year ended 31 December 2022

17. Capital commitments

There were no capital commitments at 31 December 2022 (2021: None). No other commitments had been made at 31 December 2022 (2021: 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 (2021: 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 2022 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	2022 2021 £ £ 471,308 367,382 460,714 356,322
	10,594 11,060 3,417 3,189 7,177 7,871 (7,177) (7,871) - - 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 deficit of £265,762 (2021: deficit £726,289) which is dealt with in the financial statements of the charity.

36

Notes to the Consolidated Accounts for the year ended 31 December 2022

21. Grants/ Donations receivable

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

Funder

James Tudor foundation ABF Soldiers' Charity Inman Charity Armed Forces Covenant Fund Trust Armed Forces Covenant Fund Trust Trinity House Ernest Kleinwort Charitable Trust Queen Mary's Roehampton Trust Royal Navy & Royal Marines Charity and Greenwich Hospital RAF Benevolent Fund

----- Start of picture text -----
2022
Project Amount
£
Physiotherapy 11,672
Mixed rehabilitation services 133,827
Mixed rehabilitation services 4,000
Mixed rehabilitation services 9,498
Sporting chances 1,750
Mixed rehabilitation services (two amounts) 11,000
Mixed rehabilitation services Not disclosed
Mixed rehabilitation services Not disclosed
Mixed rehabilitation services 66,500
Operational activities 18,000
----- End of picture text -----

22. Analysis of governance

Salaries, wages and related costs Insurance Audit fees - charity Audit fees - subsidiary company

Total governance

Governance Time apportionment Governance Governance Basis of apportionment	2022 2021 £ £ 24,156 23,260 - - 12,449 11,970 3,000 2,850 39,605 38,080

23. Analysis of changes in net funds

Cash equivalents Bank overdrafts Loans falling due after more than one year Derivatives relating to debt Cash at bank and in hand Obligations under finance leases	At 1 January 2022 Cash flows At 31 December 2022 £ £ £ 748,256 (280,021) 468,235 - - - - - - 748,256 (280,021) 468,235 - - - (29,301) 12,125 (17,176) - - - 718,955 (267,896) 451,059

24. Operating lease commitments

At the reporting date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating lease, which fall due as follows:

Within one year Between two and five years	2022 2021 £ £ 6,431 6,431 23,043 23,043 29,474 29,474

37

Care for Veterans The Queen Alexandra Hospltal Heme slnce 1919

Care for Veterans Gifford House Boundary Road Worthing West Sussex BN11 4LJ Telephone [phone]

Email [e-mail] Web www.careforveterans.org.uk

Registered Charity No. 1072334 A Company limited by guarantee