OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-03-31-accounts

Company registration number: 03913377 Charity registration number: 1079718

Cedars Castle Hill

(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2024

Lanham & Francis Registered Auditors Church House Church Street Yeovil Somerset BA20 1HB

Cedars Castle Hill

Contents

Trustees' Report (including Directors' Report) 1 to 6
Statement of Trustees' Responsibilities 7
Independent Auditors' Report 8 to 10
Statement of Financial Activities 11 to 12
Balance Sheet 13
Statement of Cash Flows 14
Notes to the Financial Statements 15 to 27
Statement of Financial Activities 28

Cedars Castle Hill

Trustees' Report (including Directors' Report)

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 March 2024.

OBJECTIVES AND ACTIVITIES

Objects and aims

The main object of the charity is to provide sheltered residential accommodation and care for the benefit of aged persons who are in need in Shaftesbury and the surrounding area.

Until the sale of The Cedars in April 2024, Cedars Castle Hill (CCH) provided residential and nursing care for the elderly, disabled and those in need of dementia care by operating care homes. Up to this point the key criteria against which performance was measured were the delivery of high standards of care through committed, well-qualified and friendly staff at sustainable fee levels, together with the maintenance of a prudent level of reserves.

Since the sale, the Board has been reviewing alternative ways to deliver its charitable object that take account of the changes that have taken place in the care sector and the area of benefit of the charity.

In furthering these objectives, the trustees have complied with the duty under s.17(5) of the Charities Act 2011 to have due regard to the Charity Commission's published guidance covering the operation of the Public Benefit under that Act.

ACHIEVEMENTS AND PERFORMANCE

Review of charitable activities undertaken

Looking back over the last four years, the pandemic triggered some welcome additional funding from Local Authorities and Central Government, which enabled us to operate on a financially sustainable basis. It also prompted a renewed commitment from Government to reform the funding of adult social care by capping personal care costs and enabling local authorities to pay a “fair price” for care services in future. Regrettably, the sums allocated to deliver these reforms fell well short of what is needed to cover an exceptional increase in operating costs, to improve the pay and conditions of those working in the care sector and to deliver the ambitious market reshaping that was then planned. Since then the timescale for implementing these reforms has been extended indefinitely.

These unhelpful developments prompted the Board to review CCH's financial and operational performance and develop a plan to ensure the continued delivery of its charitable objective. The first stage of this plan involved the decision in November 2022 to close Castle Hill House, our 15-bed residential care home in Bimport, and to combine residential and nursing activities under one roof at The Cedars, our 31-bed home in Angel Lane. Following the successful transfer of residents and staff, Castle Hill House was put up for sale in early 2023.

In the course of the last year it became increasingly clear that these measures would not be sufficient to deal with the twin challenges facing small, not-for-profit providers like CCH - rising costs and cut backs in local authority funding. This led the Board to decide that given the difficulties we were facing in meeting our main charitable objective, i.e. the provision of care to those in need, the best solution would be to sell The Cedars to a larger provider. This would offer the best chance of maintaining nursing and residential beds in Shaftesbury and protecting local jobs.

Page 1

Cedars Castle Hill

Trustees' Report (including Directors' Report)

Four months after putting this plan into action, agreement was reached in mid March to sell The Cedars, together with its plant and fixtures to Park Healthcare Ltd, owners of The Mellowes care home in Gillingham, Hays House Nursing Home outside Shaftesbury and the Colbury House nursing home near Southampton. Following CQC approval, ownership was finally transferred on the 16th April, bringing to a close, after 38 years, CCH's historic role as a key, Shaftesbury-based, care home provider.

Since The Cedars sale agreement was signed at the very end of the accounts year, it has been recorded in these accounts, with the proceeds, less costs, being included as a debtor.

Over this period we are particularly grateful for the support we received from Carol Mayers and her Senior team, particularly Rebecca Ashcroft and Julie Lloyd, in both carrying out the day-to-day running of the Cedars and for assisting with the strategic review and sale process. We are also grateful for the hard work put in by our staff including their readiness to embrace change and take on extra responsibilities over a challenging period.

FINANCIAL REVIEW

The 23/24 results reflect the cumulative effect of rising costs, falling occupancy rates and funding cut-backs faced by the charity. These factors, together with the ongoing cost of maintaining Castle Hill House, led to the Board’s decision to sell The Cedars and explore alternative ways to deliver its charitable object with the net proceeds.

The results for the year show a deficit of £252,801 (2023 : £442,842). Closing reserves of £1,311,258 (2023 : £1,564,059) include restricted funds amounting to £56,732 (2023 : £117,597).

Within the above figures the charity held free reserves amounting to £584,853 (2023 : £377,614).

Policy on reserves

The term 'free reserves' applies to those unrestricted funds, which are neither committed nor invested in tangible fixed assets (net of long term loans). Prior to the sale of The Cedars, we aimed to maintain reserve levels that were broadly equivalent to three months’ running costs.

Following the sale and repayment of loans secured against The Cedars, the charity has comfortably exceeded this target. These reserves need to be prudently managed to offset our running costs, especially while Castle Hill House remains unsold, and to repay any loans secured against the charity's assets - particularly the loan from the Hewer White Trust which is due to be repaid in 2045, or earlier if certain circumstances arise.

Principal funding sources

Historically, the principal source of the charity's income has been the fees it charged for care services, the beneficiaries being individuals in need of residential, respite, rehabilitation or nursing care. Following the closure of Castle Hill House and the sale of The Cedars, the principal source of income is from the charity’s investments.

As in previous years, we would like to express our thanks to the Hewer-White (previously the Marshall-Grant) Trust and the William Williams Charity for their continued financial support. Following the sale of The Cedars the loan from the William Williams Charity and half that from the Hewer-White Trust have been repaid.

Investment policy and objectives

Under the Memorandum and Articles of the charity, the trustees have wide ranging powers to promote its main object including to support, administer or set up other charities, to make grants or loans of money and to deposit or invest funds in any manner.

Page 2

Cedars Castle Hill

Trustees' Report (including Directors' Report)

PLANS FOR FUTURE PERIODS

Aims and key objectives for future periods

Looking forward, the Board’s immediate plans are to use the net proceeds from the sale of The Cedars to cover its operating costs, to renew its efforts to sell Castle Hill House and pay off its remaining loan from the proceeds and to recover any monies owed to it.

The Board will also continue to review alternative and effective ways in which it might deliver its charitable object in future given the changes that have taken place in the care sector and the area of benefit of the Charity.

Activities planned to achieve aims

The Trustees are currently taking professional advice on the range of options to achieve the charity's aim.

Page 3

Cedars Castle Hill

Trustees' Report (including Directors' Report)

Reference and Administrative Details

Chairman Mr M Thomas MSc
Trustees: Mrs E Westall BSc (Hons) Dip SW
Mr M G Golberg MA (Oxon) CQSW (resigned 31 July 2023)
Mrs P A Hobbs SRN
Mr M J Hall BA (Hons)
Mrs R M Blacklock MA Cantab
Registered Office: The Cedars Nursing Home
PO BOX 178
Shaftesbury
Dorset
SP7 8BU
The charity is incorporated in England and Wales.
Company Registration Number: 03913377
Charity Registration Number: 1079718
Solicitors: Anthony Collins
134 Edmund Street
Birmingham
B3 2ES
Bankers: NatWest Bank plc
Shaftesbury
The Commons
Bell Street
Shaftesbury
Dorset
SP7 8JY
Auditor: Lanham & Francis
Registered Auditors
Church House
Church Street
Yeovil
Somerset
BA20 1HB

Page 4

Cedars Castle Hill

Trustees' Report (including Directors' Report)

NATURE OF GOVERNING DOCUMENT

Cedars Castle Hill was incorporated on 25 January 2000 under the Companies Act and the liability of its members is limited to £1. The registered charity was founded on 7 March 2000. The charity registration number is 1079718.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Recruitment and appointment of trustees

The management of the company is the responsibility of the trustees, who are elected or co-opted under the terms of the Memorandum and Articles of Association of the charity. Trustees are elected at the Annual General Meeting for a three year term. The Board carries out an annual skills audit to ensure that there is appropriate expertise among its members. If there is a gap in skills, a specific recruitment drive will take place. Applicants are interviewed and recommendations are put to the Board for approval. The trustees have the power to co-opt any person duly qualified to be appointed as an additional trustee, but a co-opted trustee holds office only until the next Annual General Meeting.

Induction and training of trustees

The Board is currently updating its induction process for new trustees. Training requirements are regularly reviewed and trustees are offered training when considered necessary.

Arrangements for setting key management personnel remuneration

Following The Cedars sale, the charity no longer employs any staff. Previously the performance of key management staff was reviewed on an annual basis through a formal annual performance review system. The review of the Director of Homes was carried out by the Chairman and two other trustees. Remuneration levels reflected a number of factors including performance ratings, market rates and the financial position of the charity.

Organisational structure

The directors of the charitable company are its trustees for the purposes of charity law and throughout this report are collectively referred to as the trustees. As set out in the Articles of Association, the Chairman of the trustees is nominated by the trustees, who are elected annually by the members of the charity attending the Annual General Meeting. Trustees serve for renewable three year terms.

When operating care homes the trustees had a duty to put the day to day running of the homes in the hands of one or more suitably qualified registered managers. Carol Mayers was appointed Director of Homes in October 2021 and continued in that role until the sale of The Cedars to Park Healthcare, when the management structure was re-organised.

Following the sale, the trustees continue to meet on a quarterly basis to administer the charity. Overall responsibility for running the charity lies with the Chairman with specific tasks being delegated to individual trustees. The principal purpose of the quarterly board meetings is to oversee the financial and administrative performance of the charity and to commission and review reports from its professional advisers, particularly on matters relating to asset sales and legal, governance and accounting issues. In addition, the Board continues to review options for the future delivery of its charitable object.

Page 5

Cedars Castle Hill

Trustees' Report (including Directors' Report)

Principal risks and uncertainties

Prior to the sale the principal risks and uncertainties faced by the charity included the readiness of Government to fund the care sector adequately, managing the long term consequences of Brexit and the pandemic (particularly their contribution to labour shortages) and handling significant increases in food, wage and energy costs.

Following the sale, the principal challenges facing the Board include selling its remaining asset, Castle Hill House, in an uncertain market. Also, although the reserves have been considerably strengthened by the sale of the Cedars, the charity continues to face significant ongoing costs until all its assets have been disposed of. This could in time present a sufficient cashflow challenge to restrict or prevent it delivering its charitable objectives in future.

The Trustees manage these risks by ensuring that Castle Hill House is maintained in the manner recommended by its agents to achieve a sale, and that liquid assets are invested to secure a reasonable return, given the need to keep sufficient funds available to meet ongoing costs.

PUBLIC BENEFIT

We have referred to the guidance contained on the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. Further details regarding how the trustees have met this guidance are provided in the relevant sections of this report.

GOING CONCERN

The financial statements have been prepared on the going concern basis. The trustees believe that following the improvement in the charity’s reserves, there are no material uncertainties about its ability to continue.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITOR

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

AUDITOR

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Lanham & Francis as auditors of the charity is to be proposed at the forthcoming Annual General Meeting.

The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... Mr M Thomas MSc Chairman

Page 6

Cedars Castle Hill

Statement of Trustees' Responsibilities

The trustees (who are also the directors of Cedars Castle Hill 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), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that can 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 safeguarding the assets of the charitable company 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 governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... Mr M Thomas MSc Chairman

Page 7

Cedars Castle Hill

Independent Auditor's Report to the Members of Cedars Castle Hill

Opinion

We have audited the financial statements of Cedars Castle Hill (the 'charity') for the year ended 31 March 2024, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

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 responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Page 8

Cedars Castle Hill

Independent Auditor's Report to the Members of Cedars Castle Hill

Opinion on other matter prescribed by the Companies Act 2006

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report (including Directors' Report).

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities (set out on page 7), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Page 9

Cedars Castle Hill

Independent Auditor's Report to the Members of Cedars Castle Hill

Procedures to identify risks:

The procedures to respond to risks identified included:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Use of our report

This report is made solely to the charitable company's trustees, 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 charity's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... Ian Dodds (Senior Statutory Auditor) For and on behalf of Lanham & Francis, Statutory Auditor

Church House Church Street Yeovil Somerset BA20 1HB

Date:.............................

Page 10

Cedars Castle Hill

Statement of Financial Activities for the Year Ended 31 March 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Investment income
5
Other income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net expenditure
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
23		 Unrestricted
funds
£
708
1,526,727
3,702
693
1,531,830
(6,750)
(1,776,302)
(1,783,052)
(251,222)
59,286
(191,936)
1,446,462
1,254,526		 Restricted
funds
£
-
-
-
-
-
-
(1,579)
(1,579)
(1,579)
(59,286)
(60,865)
117,597
56,732		 Total
2024
£
708
1,526,727
3,702
693
1,531,830
(6,750)
(1,777,881)
(1,784,631)
(252,801)
-
(252,801)
1,564,059
1,311,258

The notes on pages 15 to 27 form an integral part of these financial statements. Page 11

Cedars Castle Hill

Statement of Financial Activities for the Year Ended 31 March 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Investment income
5
Other income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
23		 Unrestricted
funds
£
874
1,917,138
2,301
9,584
1,929,897
(6,750)
(2,361,730)
(2,368,480)
(438,583)
(438,583)
1,885,045
1,446,462		 Restricted
funds
£
-
-
-
-
-
-
(4,259)
(4,259)
(4,259)
(4,259)
121,856
117,597		 Total
2023
£
874
1,917,138
2,301
9,584
1,929,897
(6,750)
(2,365,989)
(2,372,739)
(442,842)
(442,842)
2,006,901
1,564,059

All of the charity's activities derive from continuing operations during the above two periods.

The notes on pages 15 to 27 form an integral part of these financial statements. Page 12

Cedars Castle Hill

(Registration number: 03913377) Balance Sheet as at 31 March 2024

Note
Fixed assets
Tangible assets
15
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
18
Creditors: Amounts falling due within one year
19
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
20
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
23
Unrestricted income funds
Unrestricted funds
Total funds
23		 2024
£
846,405
4,112
1,184,521
96,596
1,285,229
(720,376)
564,853
1,411,258
(100,000)
1,311,258
56,732
1,254,526
1,311,258		 2023
£
1,811,445
4,675
102,819
497,206
604,700
(227,086)
377,614
2,189,059
(625,000)
1,564,059
117,597
1,446,462
1,564,059

The financial statements on pages 11 to 28 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:

......................................... Mr M Thomas MSc Chairman

The notes on pages 15 to 27 form an integral part of these financial statements. Page 13

Cedars Castle Hill

Statement of Cash Flows for the Year Ended 31 March 2024

Note
Cash flows from operating activities
Net cash expenditure
Adjustments to cash flows from non-cash items
Depreciation
Investment income
Interest payable
Loss on disposal of tangible fixed assets
Impairment of fixed assets
Working capital adjustments
Decrease in stocks
16
(Increase)/decrease in debtors
17
Decrease in creditors
19
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
5
Purchase of tangible fixed assets
15
Sale of tangible fixed assets
Net cash flows from investing activities
Cash flows from financing activities
Interest payable and similar charges
7
Net decrease in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March		 2024
£
(252,801)
28,497
(3,702)
6,750
162,204
-
(59,052)
563
(1,081,702)
(31,710)
(1,171,901)
3,702
(4,289)
778,628
778,041
(6,750)
(400,610)
497,206
96,596		 2023
£
(442,842)
81,404
(2,301)
6,750
31,943
99,061
(225,985)
1,241
34,126
(71,989)
(262,607)
2,301
(8,549)
-
(6,248)
(6,750)
(275,605)
772,811
497,206

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 15 to 27 form an integral part of these financial statements. Page 14

Cedars Castle Hill

Notes to the Financial Statements for the Year Ended 31 March 2024

1 Charity status

The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The address of its registered office is: The Cedars Nursing Home PO BOX 178 Shaftesbury Dorset SP7 8BU

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

Cedars Castle Hill meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The financial statements are presented in Sterling, which is the functional currency of the charity. Monetary amounts in the financial statements are rounded to the nearest £1.

Going concern

The financial statements have been prepared on the going concern basis. The trustees believe that given the current level of reserves following the sale of the Cedars and the repayment of most of the long term loans, there are no material uncertainties about its ability to continue.

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Page 15

Cedars Castle Hill

Notes to the Financial Statements for the Year Ended 31 March 2024

Investment income

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’ meetings and reimbursed expenses.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £250.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate Freehold land and buildings 2% per annum, straight line basis Fixtures and fittings 25% per annum, reducing balance basis

Page 16

Cedars Castle Hill

Notes to the Financial Statements for the Year Ended 31 March 2024

Impairment of fixed assets

FRS102 conveys the principle that fixed assets should be carried in the balance sheet at no more than their recoverable amount. Fixed assets are subject to an annual impairment review and other assets are reviewed if there are indicators of impairment. Impairment arises if the carrying amount is found to be greater than the higher of the net realisable value and the value-in-use. If impairment is identified an impairment adjustment is carried out.

Impairment is recognised in the Statement of Financial Activities as expenditure. An impairment loss recognised for all assets is reversed in a subsequent period if, and only if, the reasons for the impairment loss have ceased to apply. The reversal is limited to the difference between the revised recoverable amount and the carrying value. The reversal of impairment is included in the Statement of Financial Activities as a separate line within expenditure and is not netted off expenditure.

Stock

Stock is valued at cost. Cost is determined using the first-in, first-out (FIFO) method.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Concessionary loans

Concessionary loans are valued at the amount received. Where loans are made with no repayment commitment, they are treated as being due after more than five years, unless it becomes likely that an event that will trigger early repayment occurs. Otherwise loan repayments are analysed in accordance with the loan terms.

Provisions

Provisions are recognised if the charity has a present obligation (legal or constructive) as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 17

Cedars Castle Hill

Notes to the Financial Statements for the Year Ended 31 March 2024

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.

Recognition and measurement

Except for concessionary loans, the charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

3 Income from donations and legacies

Donations and legacies;
Donations from individuals
Total for 2024
Total for 2023
4
Income from charitable activities
Residential care
Total for 2024
Total for 2023
5
Investment income
Interest receivable and similar income;
Interest receivable on bank deposits
Total for 2024
Total for 2023		 Unrestricted
funds
General
£
708
708
874
Unrestricted
funds
General
£
1,526,727
1,526,727
1,917,138
Unrestricted
funds
General
£
3,702
3,702
2,301		 Total
funds
£
708
708
874
Total
funds
£
1,526,727
1,526,727
1,917,138
Total
funds
£
3,702
3,702
2,301

Page 18

Cedars Castle Hill

Notes to the Financial Statements for the Year Ended 31 March 2024

6 Other income

Rental income
Total for 2024
Total for 2023
7
Expenditure on raising funds
Investment management costs
Interest payable;
Interest payable on other loans
Total for 2024
Total for 2023
8
Expenditure on charitable activities
Residential care
Legal and financial
Depreciation, amortisation and other similar costs
Staff costs
Governance costs
Total for 2024
Total for 2023		 Unrestricted
funds
General
£
427,485
84,787
(135,286)
1,382,341
16,975
1,776,302
2,361,730		 Unrestricted
funds
General
£
693
693
9,584
Unrestricted
funds
General
£
6,750
6,750
6,750
Restricted
funds
£
-
-
1,579
-
-
1,579
4,259		 Total
funds
£
693
693
9,584
Total
funds
£
6,750
6,750
6,750
Total
funds
£
427,485
84,787
(133,707)
1,382,341
16,975
1,777,881
2,365,989

Page 19

Cedars Castle Hill

Notes to the Financial Statements for the Year Ended 31 March 2024

9 Analysis of governance and support costs

Governance costs

Audit fees
Audit of the financial statements
Other fees paid to auditors
Management fees
Total for 2024
Total for 2023
10 Net incoming/outgoing resources
Net outgoing resources for the year include:
Audit fees
Other non-audit services
(Profit)/loss on disposal of tangible fixed assets
Impairment of fixed assets
Depreciation of fixed assets
Finance charges payable		 Unrestricted
funds
General
£
7,500
3,700
5,775
16,975
19,438
2024
£
7,500
3,700
(162,204)
-
28,497
6,750		 Total
funds
£
7,500
3,700
5,775
16,975
19,438
2023
£
8,700
4,088
31,943
99,061
81,404
6,750

11 Trustees remuneration and expenses

During the year the charity made the following transactions with trustees:

Mr M Thomas MSc

£664 (2023: £584) of expenses were reimbursed to Mr M Thomas MSc during the year.

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any other benefits from the charity during the year.

Page 20

Cedars Castle Hill

Notes to the Financial Statements for the Year Ended 31 March 2024

12 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2024
£
1,301,293
65,406
15,642
1,382,341		 2023
£
1,519,653
104,325
23,364
1,647,342

The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:

during the year expressed as full time equivalents was as follows:
Charitable activities
Administration
Trustees		 2024
No
41
5
6
52		 2023
No
56
6
8
70

37 (2023 - 45) of the above employees participated in the Defined Contribution Pension Schemes.

All of the pension costs have been allocated to residential care.

Contributions to the employee pension schemes for the year totalled £15,642 (2023 - £23,364).

The number of employees whose emoluments fell within the following bands was:

£60,001 - £70,000 2024
No
1		 2023
No
1

During the year the charity made the following transactions with key management personnel:

Director of Homes The Director of Homes received remuneration of £74,865 (2023: £69,470)

Page 21

Cedars Castle Hill

Notes to the Financial Statements for the Year Ended 31 March 2024

13 Auditors' remuneration

Audit of the financial statements
Other fees to auditors
All other non-audit services		 2024
£
7,500
3,700		 2023
£
8,700
4,088

14 Taxation

The charity is a registered charity and is therefore exempt from taxation.

15 Tangible fixed assets

Cost
At 1 April 2023
Additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
Eliminated on disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023
16 Stock
Stocks
17 Debtors
Trade debtors
Prepayments
Other debtors		 Land and
buildings
£
2,921,594
-
(1,366,734)
1,554,860
1,159,140
28,497
(479,182)
708,455
846,405
1,762,454		 Land and
buildings
£
2,921,594
-
(1,366,734)
1,554,860
1,159,140
28,497
(479,182)
708,455
846,405
1,762,454		 Furniture and
equipment
£
233,802
4,289
(238,091)
-
184,811
-
(184,811)
-
-
48,991
2024
£
4,112
2024
£
56,011
25,201
1,103,309
1,184,521		 Furniture and
equipment
£
233,802
4,289
(238,091)
-
184,811
-
(184,811)
-
-
48,991
2024
£
4,112
2024
£
56,011
25,201
1,103,309
1,184,521		 Total
£
3,155,396
4,289
(1,604,825)
1,554,860
1,343,951
28,497
(663,993)
708,455
846,405
1,811,445
2023
£
4,675
708,455 -
846,405 -
1,762,454 48,991
2024
£
4,112
2024
£
56,011
25,201
1,103,309
1,184,521
2023
£
62,208
36,900
3,711
102,819

Page 22

Cedars Castle Hill

Notes to the Financial Statements for the Year Ended 31 March 2024

18 Cash and cash equivalents

Cash on hand
Cash at bank
19 Creditors: amounts falling due within one year
Trade creditors
Other loans
Other taxation and social security
Other creditors
Accruals		 2024
£
217
96,379
96,596
2024
£
67,185
530,000
26,824
69,317
27,050
720,376		 2023
£
382
496,824
497,206
2023
£
79,600
5,000
38,044
77,005
27,437
227,086

20 Creditors: amounts falling due after one year

Concessionary loans 2024
£
100,000		 2023
£
625,000

Creditors amounts falling due after more than one year includes the following liabilities, on which security has been given by the charity:

Concessionary loans 2024
£
100,000		 2023
£
625,000

Loans are secured by a fixed charge over the freehold property of the charity. At 31 March 2024 the freehold property had a net book value of £846,405 (2023 : £1,762,454).

Included in the creditors are the following amounts due after more than five years:

After more than five years not by instalments 2024
£
100,000		 2023
£
625,000

Other loans after five years

Concessionary loan

Borrowing of £100,000, interest free. Loan is only repayable should Castle Hill House be sold, transferred to another organisation, or ceased to be used as a residential care home.

Page 23

Cedars Castle Hill

Notes to the Financial Statements for the Year Ended 31 March 2024

21 Obligations under leases and hire purchase contracts

Operating lease commitments

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

Other
Within one year
Between one and five years		 2024
£
598
-
598		 2023
£
4,392
16,104
20,496

The amount of non-cancellable operating lease payments recognised as an expense during the year was £4,392 (2023 : £14,321).

22 Pension and other schemes

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £15,642 (2023 - £23,364).

Contributions totalling £2,858 (2023 : £4,080) were payable to the scheme at the end of the year and are included in creditors.

23 Funds

Unrestricted funds
General
General fund
Restricted funds
Conservatory Fund - Castle Hill
House
Dignity in Care - The Cedars
Dignity in Care - Castle Hill
House
Sun Room - The Cedars
Extension - The Cedars
Sensory Table - The Cedars
Total restricted funds
Total funds		 Balance at 1
April 2023
£
1,446,462
53,547
4,171
4,764
14,800
38,000
2,315
117,597
1,564,059		 Incoming
resources
£
1,531,830
-
-
-
-
-
-
-
1,531,830		 Resources
expended
£
(1,783,052)
(1,450)
-
(129)
-
-
-
(1,579)
(1,784,631)		 Transfers
£
59,286
-
(4,171)
-
(14,800)
(38,000)
(2,315)
(59,286)
-		 Balance at
31 March
2024
£
1,254,526
52,097
-
4,635
-
-
-
56,732
1,311,258

Page 24

Cedars Castle Hill

Notes to the Financial Statements for the Year Ended 31 March 2024

Unrestricted funds
General
General fund
Restricted
Conservatory Fund - Castle Hill
House
Dignity in Care - The Cedars
Dignity in Care - Castle Hill House
Sun Room - The Cedars
Extension - The Cedars
Sensory Table - The Cedars
Total restricted funds
Total funds		 Balance at 1
April 2022
£
1,885,045
54,997
4,293
4,893
15,200
39,000
3,473
121,856
2,006,901		 Incoming
resources
£
1,929,897
-
-
-
-
-
-
-
1,929,897		 Resources
expended
£
(2,368,480)
(1,450)
(122)
(129)
(400)
(1,000)
(1,158)
(4,259)
(2,372,739)		 Balance at 31
March 2023
£
1,446,462
53,547
4,171
4,764
14,800
38,000
2,315
117,597
1,564,059

The specific purposes for which the funds are to be applied are as follows:

Conservatory fund – Castle Hill House

This arose from various donations for the purpose of constructing a conservatory at Castle Hill House. The donations have been fully utilised for this purpose and the fund is now being written off at a rate of 2% per annum in line with the underlying assets.

Dignity in Care – The Cedars and Castle Hill House

These funds arose from capital grants from Dignity in Care for the sole purpose of improving the outside decking and patio areas for residents.The grants were fully utilised within the time restriction placed on them and the funds are now being written off at a rate of 2% per annum in line with the underlying assets.

Sun Room – The Cedars

A donation was received to help towards the creation of the sun room at The Cedars. The donation has been fully utilised and the fund is now being written off at a rate of 2% per annum in line with the underlying assets.

Extension - The Cedars

Two grants were received in respect of the building of the extension at The Cedars. Following completion, the funds are now being written off at the rate of 2% per annum in line with the underlying assets.

Sensory Table - The Cedars

A donation was received allowing for the acquisition of a sensory table. The donation has been fully utilised and the fund is being written off at a rate of 25% per annum in line with the underlying asset.

On disposal of The Cedars, the associated restricted funds were transferred to general funds, as the donations had been fully utilised in line with their original purpose.

Page 25

Cedars Castle Hill

Notes to the Financial Statements for the Year Ended 31 March 2024

24 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets
25 Analysis of net funds
Cash at bank and in hand
Debt due within one year
Debt due after more than one year
Net debt
Cash at bank and in hand
Debt due after more than one year
Net debt		 Unrestricted
funds
General
£
789,673
1,285,229
(720,376)
(100,000)
1,254,526
Unrestricted
funds
General
£
1,693,848
604,700
(227,086)
(625,000)
1,446,462
At 1 April
2023
£
497,206
-
(625,000)
(127,794)
At 1 April
2022
£
772,811
(625,000)
147,811		 Restricted
funds
£
56,732
-
-
-
56,732
Restricted
funds
£
117,597
-
-
-
117,597
Financing cash
flows
£
(400,610)
(525,000)
525,000
(400,610)
Financing cash
flows
£
(275,605)
-
(275,605)		 Total funds at
31 March
2024
£
846,405
1,285,229
(720,376)
(100,000)
1,311,258
Total funds at
31 March
2023
£
1,811,445
604,700
(227,086)
(625,000)
1,564,059
At 31 March
2024
£
96,596
(525,000)
(100,000)
(528,404)
At 31 March
2023
£
497,206
(625,000)
(127,794)

Page 26

Cedars Castle Hill

Notes to the Financial Statements for the Year Ended 31 March 2024

26 Related party transactions

During the year the charity made the following related party transactions:

Mr M Thomas

(Trustee)

Reimbursement of expenses totalling £664. At the balance sheet date the amount due to/from Mr M Thomas was £Nil (2023 - £Nil).

Page 27

Cedars Castle Hill

Detailed Statement of Financial Activities for the Year Ended 31 March 2024

Income and Endowments from:
Donations and legacies
Charitable activities
Investment income
Other income
Total Income
Expenditure on:
Wages and salaries
Social security costs
Pension costs
Interest payable and similar charges
Household and medical costs
Rent
Repairs and maintenance
Staff training and recruitment
Rates, water, light and heat
Telephone and fax
Printing, postage and stationery
Trade subscriptions
Sundry expenses
Travel and subsistence
Advertising
Legal and professional fees
Bad debts written off
Bank charges
Depreciation, amortisation and other similar costs
Auditors' remuneration
Management fees
Total Expenditure
Net expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Total
2024
£
708
1,526,727
3,702
693
1,531,830
1,301,293
65,406
15,642
6,750
116,586
-
81,291
8,577
141,502
7,217
3,590
44,228
14,132
709
9,653
35,445
48,190
1,152
(133,707)
11,200
5,775
1,784,631
(252,801)
(252,801)
1,564,059
1,311,258		 Total
2023
£
874
1,917,138
2,301
9,584
1,929,897
1,519,653
104,325
23,364
6,750
196,467
2,475
84,359
11,517
96,604
6,647
5,456
41,267
13,886
1,127
12,528
12,168
1,139
1,161
212,408
12,788
6,650
2,372,739
(442,842)
(442,842)
2,006,901
1,564,059

All of the charity's activities derive from continuing operations during the above two periods.

The notes on pages 15 to 27 form an integral part of these financial statements. Page 28