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← Donnington House Care Home Limited

2024-05-31-accounts

Charity registration number 1098508

Company registration number 04693798 (England and Wales)

DONNINGTON HOUSE CARE HOME LIMITED

(A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024

DONNINGTON HOUSE CARE HOME LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr J H S Shippam
Mrs J N Evershed-Martin
Dr G Tamlyn
Mrs A Hutchings
Mr J C Evershed-Martin
Mrs A E Bareham
Mrs L Colville (Appointed 10 February 2024)
Mrs L J Williams (Appointed 25 July 2024)
Secretary Mrs L Colville
Senior management Sophie Lafferty Registered manager
Dana Buza Deputy manager
Samantha Saunders Lane Business manager
Charity number 1098508
Company number 04693798
Auditor Moore (South) LLP
City Gates
2 - 4 Southgate
Chichester
West Sussex
PO19 8DJ
Bankers NatWest Bank Plc
5 East Street
Chichester
West Sussex
PO19 1HH
Solicitors Irwin Mitchell LLP
Thomas Eggar House
Friary Lane
Chichester
West Sussex
PO19 1UF

DONNINGTON HOUSE CARE HOME LIMITED

CONTENTS

Page
Report of the Trustees and Strategic Report 1 - 4
Independent auditor's report 5 - 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 22

DONNINGTON HOUSE CARE HOME LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MAY 2024

The trustees present their annual report and financial statements for the year ended 31 May 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The trustees' have taken advantage of the small companies exemption provided by section 415A of the Companies Act.

Objectives and activities

The object of the Charity is to provide residential accommodation and associated amenities for persons in need of nursing or other care and with a connection to Chichester or the surrounding area whether by way of birth, family or other association.

The organisation is a charitable company limited by guarantee, incorporated on 11 March 2003 and registered as a charity on 11 July 2003. The company was established under a Memorandum of Association which established the objects and powers of the company and is governed under its Articles of Association.

The company is registered in England and Wales with the registered number 04693798.

The Charity is registered with the Charity Commission with the registered number 1098508.

Strategies for achieving aims and objectives

The Charity’s area of benefit places a geographical restriction which limits the acceptance of residents to those who live or have strong family ties to the area of Chichester and District.

The home was established in 1952 with the ethos of giving help to the less well-off elderly and continues to make its accommodation available to such individuals, subject to demand. Welfare changes mean that today, the less well-off will be funded by the relevant statutory bodies, provided they meet their financial criteria, and will be assessed by them prior to placement in the care environment. Owing to the capping of Social Services rates paid to care homes, none of the rates charged for our rooms now fall within the funding rates paid by West Sussex County Council – the relevant local authority. However the Trustees will continue to exercise their discretion in respect of admissions, where the local authority will be funding the care, to ensure that the home continues to observe its charitable aims and, provided their care needs can be met, no person is refused care because of any inability to meet our charges in full.

The home is restricted by the statutory regulatory body (the Care Quality Commission) with regard to the minimum age of its residents and certain care needs cannot be met under the terms of our registration. In all other respects the Charity does not discriminate on the grounds of gender, sexual orientation or ethnic origin.

Public benefit

We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular the Trustees consider how planned activities will contribute to the aims and objectives they have set.

Activities

Management attend a Managers Forum quarterly that provides valuable information regarding legislation and it shares best practice among all local Home managers.

The management team are very aware of monitoring staff costs and keeping within budget, using our own staff as much as possible in preference to agency which have had to be used to a limited extent during this year to cover staff vacancies. Our Clinical Lead will be responsible for proactively applying for any, and all, benefits we are entitled to.

DONNINGTON HOUSE CARE HOME LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024

Achievements and performance

Significant activities and achievements against objectives

Occupancy levels overall for the year have been 77% (2023 – 74%). The fee income was £1,702,436 compared with £1,700,462 for last year. Our costs have been well controlled with no increase to room rates for two years. Our overall result is a surplus of £65,750 compared with a deficit £42,466 for last year. This excellent result has been boosted by donations. The trustees are particularly grateful to Chris Bartlett’s very generous donation of £50,000 for benefit of the residents and staff. This has made a huge difference all involved.

The trustees continue to appreciate and are so grateful for the hard work of the entire staff and the high standard of care that they give to our residents

We remain grateful to the Bassil Shippam & Alsford Trust and the F G Woodger Trust for their continued support of the Charity.

Financial review

The directors report a surplus of £65,750 (2023 - deficit £42,466). The balance sheet value of the Charity's net assets at 31 May 2024 was £1,547,957 (2023 - £1,482,207).

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Fixed assets

Tangible fixed assets are all held for use by the Charity. The buildings were last valued in September 2019 by Marshall Clark, Chartered Surveyors, for insurance reinstatement purposes, at £4,520,000.

Investment policy

The trustees have the power to invest in such assets as they see fit.

The Charity sometimes needs to react very quickly to particular emergencies and has a policy of keeping enough working capital in short-term deposits which can be accessed readily. Any further funds are invested by the Charity’s investment managers to whom day to day management of investments has been delegated by the directors.

The Trustees continue to keep under review the investment strategy.

Major risks

The trustees examine the major risks that the charity faces each year when preparing and updating the strategic plan, or more frequently as circumstances arise. The charity has developed systems to monitor and control these risks to mitigate any impact that they may have on the home in the future.

A comprehensive risk register measures the extent of each risk and its likely impact on the charity's business. In relation to finance, the charity recognises that as 99% of its income, excluding grants and donations, is derived from residents’ contributions, any significant reduction in residents represents a significant financial risk. The charity seeks to mitigate this by prudent budgeting and by ensuring that it retains sufficient reserves to meet unexpected annual deficits.

The charity also recognises the risks of a negative report from the Care Quality Commission and/or Health & Safety. The charity seeks to mitigate this by robust quality management procedures and regular staff training.

DONNINGTON HOUSE CARE HOME LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024

Plans for future periods

The Charity remains in a sound financial state as a result of setting a realistic budget target for the Home’s operations. However concerns still remain that statutory funding caps and cutbacks will have a detrimental impact on our ability to maintain and build upon our reserves and the Trustees continue to look at other possible sources of funding from benefactors and other trusts, with a view to mitigating the long term effects. The charity has chosen to use the current building and facilities to their full potential rather than develop them further.

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 11 March 2003 and registered as a charity on 11 July 2003. The company was established under a Memorandum of Association which established the objects and powers of the company and is governed under its Articles of Association.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr J H S Shippam Mrs J N Evershed-Martin Dr G Tamlyn Mrs A Hutchings Mr J C Evershed-Martin Mrs A E Bareham Rev E Graeme (Resigned 28 March 2024) Mrs L Colville (Appointed 10 February 2024) Mrs L J Williams (Appointed 25 July 2024)

Recruitment and appointment of trustees

Directors are appointed by the members in general meeting, except where an appointment is made to fill a casual vacancy, in which case the directors can appoint a new director to hold office until the next Annual General Meeting.

The present Trustees have a wealth of experience and are fortunate in that they have access to professional advice, which keeps them abreast of developments which may affect the Charity. Board representation includes members with previous business experience as well as experienced legal, and architectural professionals. A local GP acts as an advisor to the Home and attends board meetings whenever possible.

Organisational structure

The Charity is controlled by the Board of Directors, who are also the trustees.

The day-to-day management of the care home is delegated to the its senior management staff, as disclosed on the legal and administrative page to these accounts.

Remuneration policy

All of the Trustees give their time voluntarily and received no benefits from the Charity. No expenses were reimbursed to them during the year.

DONNINGTON HOUSE CARE HOME LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024

Statement of Trustees' responsibilities

The trustees, who are also the directors of Donnington House Care Home Limited for the purpose 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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

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

Auditor

In accordance with the company's articles, a resolution proposing that Moore (South) LLP be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees' report was approved by the Board of Trustees.

Mr J H S Shippam

17 December 2024

DONNINGTON HOUSE CARE HOME LIMITED

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF DONNINGTON HOUSE CARE HOME LIMITED

Opinion

We have audited the financial statements of Donnington House Care Home Limited (the ‘charity’) for the year ended 31 May 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

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 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

DONNINGTON HOUSE CARE HOME LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF DONNINGTON HOUSE CARE HOME LIMITED

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' 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:

Responsibilities of trustees

As explained more fully in the statement of Trustees' responsibilities, the trustees, who are also the directors of the charity 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 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 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.

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.

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to hose assessed risks; and to response appropriately to instances of fraud or suspect fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charges with governance of the charitable company.

DONNINGTON HOUSE CARE HOME LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF DONNINGTON HOUSE CARE HOME LIMITED

Our approach was as follows:

To address the risk of fraud through management override we:

In response to the risk of irregularities with regards to the completeness of income we:-

There are inherent limitations in our audit procedures described above. The more removed the laws and regulations are from the financial statements, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect that those that arise from error as they may involve deliberate concealment of collusion.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

DONNINGTON HOUSE CARE HOME LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF DONNINGTON HOUSE CARE HOME LIMITED

Matthew Bather (Senior Statutory Auditor) for and on behalf of Moore (South) LLP

21 December 2024

Chartered Accountants Statutory Auditor

City Gates 2 - 4 Southgate Chichester West Sussex PO19 8DJ

DONNINGTON HOUSE CARE HOME LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MAY 2024

Unrestricted
Restricted
funds
funds
2024
2024
Notes
£
£
Income from:
Donations and legacies
3
28,013
50,000
Contributions for
residents' fees
1,702,436
-
Investments
4
7,184
-
Total income
1,737,633
50,000
Expenditure on:
Raising funds
5
3,548
-
Charitable activities
6
1,740,000
18,685
Total resources expended
1,743,548
18,685
Net gains/(losses) on
investments
11
40,350
-
Net income/(expenditure)
34,435
31,315
Transfers between
funds
41,715
(41,715)
Net movement in
funds
8
76,150
(10,400)
Reconciliation of funds:
Fund balances at 1 June 2023
1,155,707
326,500
Fund balances at 31 May
2024
1,231,857
316,100		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
78,013
63,021
-
1,702,436
1,700,462
-
7,184
2,227
-
1,787,633
1,765,710
-
3,548
3,118
-
1,758,685
1,808,471
10,400
1,762,233
1,811,589
10,400
40,350
13,813
-
65,750
(32,066)
(10,400)
-
-
-
65,750
(32,066)
(10,400)
1,482,207
1,187,773
336,900
1,547,957
1,155,707
326,500		 Total
2023
£
63,021
1,700,462
2,227
1,765,710
3,118
1,818,871
1,821,989
13,813
(42,466)
-
(42,466)
1,524,673
1,482,207

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

DONNINGTON HOUSE CARE HOME LIMITED

BALANCE SHEET

AS AT 31 MAY 2024

Notes
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Investments
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
The funds of the charity
Restricted income funds
18
Unrestricted funds
19		 2024
£
£
745,363
58,394
377,918
518,926
955,238
(152,644)
802,594
1,547,957
316,100
1,231,857
1,547,957		 2023
£
£
741,554
223,773
341,100
325,818
890,691
(150,038)
740,653
1,482,207
326,500
1,155,707
1,482,207		 2023
£
£
741,554
223,773
341,100
325,818
890,691
(150,038)
740,653
1,482,207
326,500
1,155,707
1,482,207
1,482,207
326,500
1,155,707
1,482,207

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the trustees on 17 December 2024

Mr J H S Shippam

Company registration number 04693798 (England and Wales)

DONNINGTON HOUSE CARE HOME LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MAY 2024

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
23
Investing activities
Purchase of tangible fixed assets
Purchase of investments
Proceeds from disposal of investments
Investment income received
Net cash used in investing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2024
£
(44,379)
-
3,532
7,184		 2023
£
£
226,771
(5,898)
(254,754)
257,252
2,227
(33,663)
193,108
325,818
518,926		 £
(74,729)
(1,173)
(75,902)
401,720
325,818

DONNINGTON HOUSE CARE HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024

1 Accounting policies

Charity information

Donnington House Care Home Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 12 Birdham Road, Donnington, Chichester, West Sussex, PO19 8TE.

Every member of the company undertakes to contribute such amount as may be required (not exceeding £1) to the company's assets if it should be wound up while they are a member, or within one year after he ceases to be a member.

The nature of the charity and the principal activities of the company are noted in the Trustees Report.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have been prepared under the historical cost convention unless otherwise stated in the relevant accounting policy or note. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

General unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the Charity.

Designated funds are funds which have been set aside at the discretion of the trustees for particular projects.

Restricted funds are funds to be used in accordance with specific restrictions imposed by the donors or which have been raised by the Charity for particular purposes.

1.4 Income

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

There were no material gifts in kind during the year and no amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).

DONNINGTON HOUSE CARE HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024

1 Accounting policies

(Continued)

1.5 Expenditure

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.

All expenditure is accounted for on an accruals basis and is recognised when a liability in incurred.

The cost headings comprise expenditure, including staff costs, directly attributable to each activity.

Costs of generating funds, if any, are those costs related to administering voluntary donations, investments and fundraising activities. Governance costs relate to the governance of the Charity and its assets and are primarily associated with constitutional and statutory requirements.

Central overheads may be allocated on the basis of their use.

Resources expended include attributable VAT which cannot be recovered.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 2% straight line on buildings Fixtures and fittings straight line over 2 to 10 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Financial instruments

Financial instruments are recognised in the statements of financial activities when the Charity becomes a part to the contractual provisions of the instrument. Financial instruments are classified as either 'basic' or 'other' in accordance with Chapter 11 of FRS102.

At the end of each reporting period, basic financial instruments are measured at amortised cost using the effective rate method. All financial instruments not classified as basic are measured at fair value at the end of the reporting period with the resulting changes recognised in income or expenditure.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Investments are recognised initially at cost, which is transaction price less transactions costs. Subsequently, the investments are included at closing mid-market value at the balance sheet date. Any gain or loss on revaluation is taken to the Statement of Financial Activities.

DONNINGTON HOUSE CARE HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.9 Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. As such, the charity is exempt from Corporation Tax on its charitable activities and accordingly no corporation tax has been provided in these accounts.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

The Charity has arranged a defined contribution pension scheme for all eligible employees. The assets of the scheme are held separately from those of the Charity. Pension costs charged in the SoFA represent the contributions payable by the Charity in the year.

2 Critical accounting estimates and judgements

In preparing the accounts, the trustees make estimates and assumptions which affect reported results, financial position and disclosure of contingencies. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to reasonable under the circumstances. Actual results in the future could differ from such estimates.

Depreciation – the Charity accounts for depreciation in accordance with FRS 102. The depreciation expense is the recognition of the decline in the value of the asset and allocation of the cost of the asset over the periods in which the asset will be used. Judgements are made on the estimated useful life of the assets which are regularly reviewed.

DONNINGTON HOUSE CARE HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024

3 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Donations and gifts
28,013
50,000
Woodger Trust grant
-
-
28,013
50,000		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
78,013
53,021
-
-
10,000
-
78,013
63,021
-		 Total
2023
£
53,021
10,000
63,021

4 Income from investments

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Other income 16 597
Interest receivable 7,168 1,630
7,184 2,227

5 Expenditure on raising funds

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Investment management 3,548 3,118

DONNINGTON HOUSE CARE HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2024

6 Expenditure on charitable activities

Charitable Charitable
activities activities
2024 2023
£ £
Direct costs
Staff costs 1,244,577 1,325,716
Depreciation and impairment 40,570 25,314
Agency costs 23,870 31,946
Provisions 52,642 62,897
Rates and water 6,413 5,949
Insurance 12,435 11,725
Light and heat 39,807 38,236
Repairs to property 22,789 5,976
Repairs and renewals of equipment 70,577 86,812
Sundry household expenditure 77,690 77,262
1,591,370 1,671,833
Share of support and governance costs (see note 7)
Support 147,515 133,356
Governance 19,800 13,682
1,758,685 1,818,871
Analysis by fund
Unrestricted funds 1,740,000 1,808,471
Restricted funds - general 18,685 10,400
1,758,685 1,818,871
7 Support costs allocated to activities
2024 2023
£ £
Staff costs 104,527 80,028
Staff training and recruitment 17,593 28,296
Legal and professional fees 13,024 9,433
Printing, postage, advertising and telephone 11,056 14,329
Bank charges 1,315 1,270
Governance costs 19,800 13,682
167,315 147,038
Analysed between:
Charitable activities 167,315 147,038

DONNINGTON HOUSE CARE HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024

8 Net movement in funds 2024 2023
£ £
The net movement in funds is stated after charging/(crediting):
Fees payable to the charity's auditor:
- for the audit of the charity's financial statements 13,300 7,450
- for other financial services 6,500 6,232
Depreciation of owned tangible fixed assets 40,570 25,314

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

10 Employees

The average monthly number of employees during the year was:

Household
Qualified nurses
Care staff
Administration and management
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was more than £60,000
is as follows:
£60,000 to £69,999		 2024
Number
14
10
32
3
59
2024
£
1,226,350
99,065
23,689
1,349,104
2024
Number
1		 2023
Number
15
13
32
3
63
2023
£
1,283,328
106,578
15,838
1,405,744
2023
Number
1

DONNINGTON HOUSE CARE HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024

11 Gains and losses on investments

Unrestricted Unrestricted
funds funds
2024 2023
Gains/(losses) arising on: £ £
Revaluation of investments 40,350 4,305
Sale of investments - 9,508
40,350 13,813

12 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

13 Tangible fixed assets

Tangible fixed assets
Freehold land
and buildings
Fixtures and
fittings
£
£
Cost
At 1 June 2023
949,381
259,134
Additions
-
44,379
Disposals
-
(23,035)
At 31 May 2024
949,381
280,478
Depreciation and impairment
At 1 June 2023
261,696
205,265
Depreciation charged in the year
15,719
18,334
Eliminated in respect of disposals
-
(16,518)
At 31 May 2024
277,415
207,081
Carrying amount
At 31 May 2024
671,966
73,397
At 31 May 2023
687,685
53,869		 Total
£
1,208,515
44,379
(23,035)
1,229,859
466,961
34,053
(16,518)
484,496
745,363
741,554

The net book value at 31 May 2024 represented fixed assets used for direct charitable purposes.

In September 2019 the trustees obtained an independent professional reinstatement cost assessment of the Charity’s freehold property for insurance purposes of £4,520,000 by Marshall Clark Chartered Surveyors. Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses. The ‘at cost’ valuation, not the insurance valuation, is recognised within the financial statements.

DONNINGTON HOUSE CARE HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2024

14
Debtors
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
15
Current asset investments
Listed investments		 2024
£
52,179
6,215
58,394
2024
£
377,918		 2023
£
217,648
6,125
223,773
2023
£
341,100

Market value includes portfolio cash of £951 (2023 - £851).

Movements in listed investment in the period relate to disposals of (£3,548); dividends reinvested of £16; and net gain on revaluation £40,350.

16
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Accruals and deferred income
17
Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes		 2024
£
1,242
80,636
70,766
152,644
2024
£
23,689		 2023
£
5,780
65,710
78,548
150,038
2023
£
15,838

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

As at the year end contributions totalling £611 (2023 - £4,557) were due to the scheme.

DONNINGTON HOUSE CARE HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024

18 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Building fund
National Lottery grant
Specific purposes donation
Previous year:
Building fund
National Lottery grant		 At 1 June
2023
Incoming
resources
Resources
expended
£
£
£
320,250
-
(9,150)
6,250
-
(1,250)
-
50,000
(8,285)
326,500
50,000
(18,685)
At 1 June
2022
Incoming
resources
Resources
expended
£
£
£
329,400
-
(9,150)
7,500
-
(1,250)
336,900
-
10,400		 Transfers

£
-
-
(41,715)
(41,715)
Transfers

£
-
-
-		 At 31 May
2024
£
311,100
5,000
-
316,100
At 31 May
2023
£
320,250
6,250
326,500

The restricted building fund relates to donations received and expenditure regarding the extension, redevelopment and refurbishment work undertaken at the care home.

During the year ended 31 May 2024 a donation of £50,000 was received to be utilised for specific purposes. The agreed purposes of the donation were for the enhanced safety and comfort of accommodation and patient handling, advanced interactive AV equipment to facilitate mental stimulation and environment upgrade and enhancement. These funds were all spent during the year. Funds have been transferred to unrestricted funds in relation to amounts of the donation that have been used to acquire items treated as fixed assets, as it is considered that the restriction has been met at the point of purchase.

19 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific projects and events.

Designated
funds
General funds		 At 1 June
2023
Incoming
resources
Resources
expended
£
£
£
7,311
-
-
1,148,396
1,737,633
(1,743,548)
1,155,707
1,737,633
(1,743,548)		 Transfers
Gains and
losses

£
£
-
-
41,715
40,350
41,715
40,350		 At 31 May
2024
£
7,311
1,224,546
1,231,857

DONNINGTON HOUSE CARE HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024

19 Unrestricted funds

Unrestricted funds
Previous year:
Designated
funds
General funds		 At 1 June
2022
Incoming
resources
Resources
expended
£
£
£
7,311
-
-
1,180,462
1,765,710
(1,811,589)
1,187,773
1,765,710
1,811,589		 (Continued)
Transfers
Gains and
losses
At 31 May
2023
£
£
£
-
-
7,311
-
13,813
1,148,396
-
13,813
1,155,707		 (Continued)
Transfers
Gains and
losses
At 31 May
2023
£
£
£
-
-
7,311
-
13,813
1,148,396
-
13,813
1,155,707
1,155,707

20 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
2024
2024
£
£
At 31 May 2024:
Tangible assets
429,263
316,100
Current assets/(liabilities)
802,594
-
1,231,857
316,100
Unrestricted
Restricted
funds
funds
2023
2023
£
£
At 31 May 2023:
Tangible assets
420,054
321,500
Current assets/(liabilities)
735,653
5,000
1,155,707
326,500		 Total
2024
£
745,363
802,594
1,547,957
Total
2023
£
741,554
740,653
1,482,207

21 Operating lease commitments

Lessee

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

Within one year
Between two and five years
In over five years		 2024
£
23,049
19,989
-
43,038		 2023
£
25,598
38,161
460
64,219

DONNINGTON HOUSE CARE HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024

22 Related party transactions

During the year the Charity received donations totalling £21,850 (2023 - £42,000) from the Bassil Shippam and Alsford Trust. J H S Shippam is also a trustee of this trust. During the year the Charity also received donations totalling £nil (2023 - £5,000) from J H S Shippam.

23
Cash generated from operations
Surplus/(deficit) for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of investments
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Cash generated from/(absorbed by) operations		 2024
£
65,750
(7,184)
-
(40,350)
40,570
165,379
2,606
226,771		 2023
£
(42,466)
(2,227)
(9,508)
(4,305)
25,314
(22,689)
(18,848)
(74,729)