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← The Gloucestershire Care Partnership

2025-03-28-accounts

THE GLOUCESTERSHIRE CARE PARTNERSHIP

Annual Report and Financial Statements

Year Ended 31 March 2025

Charity No: 1108381

Company No: 04667322

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

Contents

Section Page
Report of the Trustees (incorporating the Strategic Report) 3
Report of the Independent Auditor to the Members 10
Statement of Financial Activities (incorporating an Income and Expenditure Account) 15
Balance Sheet 16
Statement of Cash Flows 17
Notes Forming Part of the Financial Statements 18 –25

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

Report of the Trustees for the year ended 31 March 2025

The Trustees, who are also directors of the charity for the purposes of the Companies Act, submit their annual report and the audited financial statements for the year ended 31 March 2025.

Reference and Administrative Details

Director/Trustees

Daniel Hayes (The Orders of St John Care Trust) Mark Lee (The Orders of St John Care Trust) Hilary Morris (The Orders of St John Care Trust) Tracey Wardle (The Orders of St John Care Trust) Paul Cook (bpha) Richard Hill (bpha) Catherine Kelly (bpha) (appointed 1 April 2025) Julian Pearce (bpha) Philippa Spratley (bpha) (resigned 31[st] March 2025) Secretary Joanna Downing Registered Office Eyre Court Whisby Way Lincoln LN6 3LQ Auditors BDO LLP Chartered Accountants Two Snowhill Birmingham B4 6GA Bankers Barclays Bank Plc 1 Churchill Place London E14 5HP

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

Report of the Trustees for the year ended 31 March 2025 (continued)

Strategic Report

Structure, Governance and Management

The Gloucestershire Care Partnership (the charity) is a charitable company limited by guarantee (registered company number 04667322, registered charity number 1108381) and was incorporated on 17 February 2003. It is governed by articles of association which were last amended on 4 November 2004 and adopted on 20 December 2004.

Organisation

A Board of Trustees, which meets periodically, administers the charity. The Orders of St John Care Trust manage the day-to-day operations of the charity under a management contract dated 29 April 2005. Each member has the power to appoint up to four Trustees to the Board and the Board is able to appoint up to two independent Trustees. During the year to 31 March 2025 both The Orders of St John Care Trust and bpha had four Trustees each and there were no independent Trustees. Trustee induction and training includes ensuring all Trustees have a working knowledge of the Charity and its charitable purpose, any current issues the Charity is facing and an overview of the financial position.

Investment Powers

Under the memorandum and articles of association, the charity has the power to make any investments which the Trustees see fit.

Objectives and Public Benefit

The Charity’s objectives are to carry out in the County of Gloucestershire the following activities:

The Trustees have taken account of the Charity Commission guidance on Public Benefit and Feecharging and consider that the Trust objectives are for the public benefit. The principal reasons are:-

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

Report of the Trustees for the year ended 31 March 2025 (continued)

Related Parties

The Gloucestershire Care Partnership (GCP) is a charitable care trust established in 2004 by The Orders of St John Care Trust (OSJCT), a leading national provider of care services for older people and bpha, a major regional registered social landlord. It was set up to operate care homes for older people transferred to GCP from Gloucestershire County Council (GCC) under an initial block contract to 2035. The transfer of the initial 21 care homes was completed in May 2005.

GCP wholly subcontracts the care of residents in the care homes to OSJCT. OSJCT is the registered care provider of the homes and employs the employees working in the homes and at a support level in the regional office. Similarly, GCP subcontracts the development and capital funding of new care homes to bpha. The original care homes transferred to GCP were leased from GCC until 30 April 2025. The contract was extended to the end of January 2026 to enable GCC to conduct a retendering process for the management of these older homes. The four homes that have been developed under the terms of the re-provisioning contract run until 2035.

Funding Sources and Expenditure

The principal funding source is fees received from Gloucestershire County Council for its Local Authority funded residential, dementia and nursing residents. Fees from self-funders residing at the homes pass directly to OSJCT as care provider. Expenditure primarily consists of care fees related to providing the care which is paid to OSJCT and rent payable in the main to bpha.

The accounting treatment adopted since the Charity was first established reflects the intention of the partners, OSJCT and bpha, and of the other stakeholders principally including GCC, that all activity in relation to provision of services in the homes operated by the Charity should be reflected in the Charity’s financial statements. Self-fund income is treated as agency income so is not included in the accounts. Beds which are not purchased by GCC and beds that fall outside of the contract with GCC are made available to private self-funding residents in a direct contract with OSJCT. In previous years the Charity’s strategic report made some reference to the key performance metrics of the homes. The Trustees recognise that it is not possible by reference to the GCP financial statements for external stakeholders to understand the underlying performance of the homes since most of the operating costs and all of the self-funder income are borne by OSJCT and are only recognised in OSJCT’s financial statements. The Trustees have agreed on the accounting treatment and this is consistent with the prior year, they will however keep this under review for appropriateness.

The Trustees recognise that more than 15 years have elapsed since the Charity commenced operations. During that period the operating environment, including the needs and expectations of elderly people has changed. The original intentions of the partners have in some cases been superseded with some homes continuing to operate beyond their originally anticipated lifespan. The partners continue to review all operational matters including the issues relating to an ageing estate.

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

Report of the Trustees for the year ended 31 March 2025 (continued)

Compliance with Charity Governance Code

The Board notes its support of the code of governance for charities, including the requirements for larger, more complex charities. Both members have adopted codes of governance relevant to their sectors: bpha applies the principles of good governance outlined in the National Housing Federation Code of Governance 2020 and OSJCT applies the Charity Governance Code 2020. A review was undertaken during 2020 to assess GCP’s compliance with the updated code and this was reported on in the 2019/20 annual report. It was found that although the key outcomes in respect of each of the principles are met, full compliance with all recommended practices within the code was not achievable. Certain parts of these practices are not applicable, for instance in relation to staffing as GCP itself does not employ any staff. Practice diverges in other areas, sometimes as a direct consequence of the charity’s joint venture structure which mainly affects the Board Effectiveness and Equality, Diversity & Inclusion principles. There has been no change in compliance since last year.

Statement of adherence to the Fundraising Regulator Code

The Charity seeks to comply fully with all regulation and relevant codes of practice. Fundraising is not a material income stream for the Charity and therefore is not required to report under section 162A of the Charities Act 2011.

Activities and Performance

The Charity currently operates nine care homes across Gloucestershire with a total of 537 beds. The average occupancy during the year (GCC and self-funders) was 93.2% (2024: 89.3%).

The contract between the parties assumed a level of re-provision of all older services into new fit for purpose homes planned and agreed through an Estates Committee. The estates strategy was paused in recent years by GCC, which impacted the trading and performance of some of the older homes. The Estates Committee of GCC and GCP was re-established during 2017/18 for the specific objective of reviewing and agreeing the future of the estate. GCC completed its care home strategy for the future during 2021/22 which recognised insufficient supply in some areas and oversupply in others. There is also a move away from residential services as individuals wish to stay at home and more of a focus on specialist services such as dementia and continued provision of nursing services. In recent years, OSJCT, as care provider, has worked with GCC to provide short stay units to help individuals move from hospital to home via a short period in a setting such as a care home or reablement service or indeed a time of support in such a setting ensuring avoidance of having to go into a hospital. Whilst most of these units have been decommissioned in the last 12 months, OSJCT has continued to work with GCC on the design of more complex nursing services. The aim is to implement these services in suitably configured GCP homes.

The care contract for the older homes ended in March 2025. GCP, in conjunction with OSJCT and bpha, has decided not to continue to provide care services in these homes beyond this date. GCC’s Cabinet has agreed to tender the care services to the wider market. Given the timescales to run a competitive procurement process and transition services safely, GCP with OSJCT, as care provider, has agreed to continue to provide services until the end of January 2026. GCP will ensure continuity of care and high standards of care delivery are maintained for all residents in the homes prior to any transfer to a new provider. GCP, with OSJCT as care provider will not be participating in the tender for the older homes, which was issued to the market in April 2025.

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

Report of the Trustees for the year ended 31 March 2025 (continued) Activities and Performance (continued)

The demand for elderly care remains strong. Demand for GCC replacement has been strong, with some homes exceeding the 60% capacity allocated to the block contract. On a like for like basis, this has led to a greater use of beds by GCC across the GCP homes during the year, with average occupancy at 98.2%.

Financial Review

inancial Review
2025 2024
Financial KPIs (£’000) (£’000)
Income 17,853 17,087)
Net (Expenditure)/Income (12)
 25
Cash inflow 340 50
Operational KPIs
Occupancy as % of total block places 98.2% 97.8%
Average GCC block beds 353 346

Income from charitable activities has increased by 4.5% to £17.8m (2023/24: £17.1m). This was due to local authority fee rate increases of 5.6% (2024: 6.72%). An average of 29 (2023/24: 48) block contract beds were utilised as “D2A” beds located across 4 sites . The contract for two of these sites “D2A” beds ended in 23/24 with the number of beds being reduced to zero across the year in these homes. The number of “D2A” beds available across the 2 remaining sites was 29 by March 2024. GCC was the principal payor for these beds, funded via the NHS, contributing £1.7m (2023/24: £2.6m) of income to GCP.

Going Concern

The Charity shows a deficit on reserves; this is because of the structure of the original contract. GCP Trustees had intended to complete work on the sustainability of GCP during 2023/24 which involves reviewing the structure of the care contract between GCP and OSJCT and the loan agreements with both joint venture partners. Trustees took the decision not to address this until the future of the older homes was agreed. The older homes contract has been extended to the end of January 2026 to support GCC whilst they conduct a re-tendering process for the management of the older homes. GCP, with OSJCT as care provider, has decided it will not participate in the re-tender process. Further consideration will be given to contract structure of GCP during the next financial year with consideration given to the reduction in size of the GCP contract with GCC. Financial support will be provided by the two joint venture partners (OSJCT and bpha) for a period of at least 12 months from the date of signing the financial statements. This support is not legally binding, and could be withdrawn, and thus does create a material uncertainty.

Trustees have considered a number of scenarios with relation to occupancy and the impact on GCP. The contractual structure of GCP is such that the void mechanism ensures GCP can continue to cover all contractual payments. Operating risk sits with the care provider, OSJCT, and therefore Trustees are assured there is limited risk to GCP.

Given the support of the members, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future from the date

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

Report of the Trustees for the year ended 31 March 2025 (continued) Activities and Performance (continued)

of signing of these report and financial statements and therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements. The support of Trustees is not legally binding and thus a material uncertainty does exist, however no adjustments have been made to the financial statements regarding the material uncertainty.

Reserves policy and risk management

The Trustees need to ensure the Charity is sustainable in the future hence the on-going discussions with GCC around care provision and the delivery of a more beneficial model which will assist in reducing the reserves deficit and the ongoing performance of the Charity. At the year-end there was a total deficit of £812,000.

The Trustees have identified and implemented risk management strategies for risks to which the charity could be exposed and established controls and action plans to mitigate these.

The principal risks to which the Charity may be subject:

Whilst these risks are the broad areas within which Trustees manage risk, the specific risk of local authority contracting is a principal risk for the Charity when assessed for impact and probability. The Charity currently has a significant contract in place with GCC which makes it a key care provider in the Gloucestershire region. GCC’s estate’s strategy indicates a reduced requirement for bed-based services in the future. The Charity will continue to engage fully with GCC, ensuring flexibility and responsiveness to future commissioning needs and reprovisioning.

Trustees’ Responsibilities

The Trustees (who are also the directors of the charity for the purposes of company law) are responsible for preparing the Trustees’ Report (including the Strategic Report), the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

Report of the Trustees for the year ended 31 March 2025 (continued) Reserves policy and risk management (continued)

Accounting Standards and applicable law). 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

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

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and 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.

The Trustees confirm that:

In preparing this Trustees Report advantage has been taken of the small companies exemption. The Trustees Annual Report, incorporating the Strategic Report, was approved by the Board on 4 July 2025.

Daniel Hayes Trustee

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GLOUCESTERSHIRE CARE PARTNERSHIP

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of The Gloucestershire Care Partnership (“the Charitable Company”) for the year ended 31 March 2025 which comprise the Statement of Financial Activities (Incorporating an Income and Expenditure Account), the Balance Sheet, the 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 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).

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Charitable Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Material uncertainty related to going concern

We draw attention to note 1b of the financial statements, which refers to the financial position of the Charitable Company, its reliance on financial support continuing to be provided by the members and that the financial support is not a legal commitment, and could be withdrawn. As stated in note 1b, these events or conditions indicate that a material uncertainty exists that may cast doubt on the Charity’s ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Charitable company was unable to continue as a going concern. Our opinion is not modified in respect of this matter.

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.

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GLOUCESTERSHIRE CARE PARTNERSHIP (CONTINUED) Material uncertainty related to going concern (continued)

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 and Financial Statements, 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. 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.

Other Companies Act 2006 reporting

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

In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or 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:

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GLOUCESTERSHIRE CARE PARTNERSHIP (CONTINUED) Other Companies Act 2006 reporting (continued)

Responsibilities of Trustees

As explained more fully in the Trustees’ Responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

Extent to which the audit was capable of detecting irregularities, including fraud

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:

Non-compliance with laws and regulations

Based on:

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GLOUCESTERSHIRE CARE PARTNERSHIP (CONTINUED) Auditor’s responsibilities for the audit of the financial statements (continued)

we considered the significant laws and regulations to be Companies Act 2006, Charities Act 2011, UK Generally Accepted Accounting Practice, Charities SORP (FRS 102) (second edition October 2019) and UK tax legislation.

The Charitable Company is also subject to laws and regulations where the consequence of noncompliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be health and safety legislation, Care Quality Commission compliance and data protection.

Our procedures in respect of the above included:

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

Based on our risk assessment, we considered the areas most susceptible to fraud to be posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates.

Our procedures in respect of the above 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.

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GLOUCESTERSHIRE CARE PARTNERSHIP (CONTINUED) Auditor’s responsibilities for the audit of the financial statements (continued)

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

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

[Seman by:

Samantha Lifford (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor Birmingham, UK

Date: 04 July 2025

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

Statement of Financial Activities (incorporating an Income and Expenditure Account) for the year ended 31 March 2025

Notes
Income from:
Charitable activities
2
Investments (interest)
Total Income
Expenditure on:
Charitable activities
3
Total Expenditure
Net (Expenditure)/Income for the year
Net movement in funds for the year
Reconciliation of funds:
Total deficit brought forward
Total deficit carried forward at 31 March		 31 March 2025
Unrestricted
Funds
£’000
31 March 2024
Unrestricted
Funds
£’000
17,833
(17,073
20
14
17,853
17,087
17,865
17,062)
17,865
17,062)
(12)
25
(12) 25
(800)
(825)
(812)
(800)

All of the above results are derived from continuing activities.

All gains and losses recognised in the year are included above.

The notes on pages 18 to 25 form part of these financial statements.

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

Balance Sheet as at 31 March 2025

Notes 2025 2024
Unrestricted Unrestricted
Funds Funds
£’000 £’000
Fixed assets
Tangible assets 5 149 158
Current assets
Debtors: due within one year 6 83 38
Cash and cash equivalents 9 728 388
811 426
Current liabilities
Creditors: amounts falling due within 7 (1,522) (1,134)
one year
Net current liabilities (711) (672)
Total assets less current liabilities (562) (550)
Creditors: due after more than one year 8 (250) (250)
Net liabilities (812) (800)
Funds:
Unrestricted Funds (812) (800)
Total deficit 11 (812) (800)

The notes on pages 18 to 25 form part of these financial statements.

The financial statements of Gloucestershire Care Partnership (Company Number 04667322) were approved by the Trustees on 4 July 2025 and signed on their behalf by:

Daniel Hayes Trustee

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

Statement of Cash flows for the year ended 31 March 2025

Cashflows from operating activities:
Net
cash
provided
by
operating
activities
Cash inflows from investing activities:
Interest Received
Net cash from investing activities
Cash (outflows) from financing activities:
Interest Paid
Net cash (used in) financing activities
Change in cash and cash equivalents in
the year
Cash and cash equivalents at the
beginning of the year
Cash and cash equivalents at the end of
the year
Net (Expenditure)/Income for the year
Adjustments for:
Depreciation charges
Impairment Reversal
Increase in debtors
Increase in creditors
Increase in contractual provisions
Interest received
Interest paid
Net cash provided by operating activities		 31 March 2025
Unrestricted
Funds
£’000
31 March 2024
Unrestricted
Funds
£’000
337
53
20
14
20
14
(17)
(17)
(17)
(17)
340
50)
388
338)
728
388
(12)
25
9
-
99)9999
(70)
(45)
(4)
388
40
-
50
(20)
(14)
17
17
337
53)

The notes on pages 18 to 25 form part of these financial statements.

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THE GLOUCESTERSHIRE CARE PARTNERSHIP

Notes forming part of the financial statements for the year ended 31 March 2025

The Charitable Company is a private company limited by guarantee and is registered in England and Wales. The company’s registered address is Eyre Court, Whisby Way, Lincoln, LN6 3LQ. The company’s registered number is 04667322.

1. Accounting policies

a. Basis of preparation

The financial statements have been prepared in accordance with Charities SORP (FRS 102) (second edition revised October 2019) Accounting and Reporting 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, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Financial Statements of the charity, which is a public benefit entity under FRS 102, have been prepared on the historical cost basis. The principal accounting policies adopted in the preparation of the accounts are set out below and any changes restated in the previous year. The accounts are presented in £ sterling.

The financial statements have been prepared up to 31 March 2025 which is within 7 days of the accounting reference date of 28 March 2025.

b. Going Concern

The financial statements have been prepared on a going concern basis.

Trustees have considered a number of scenarios with relation to occupancy and the impact on GCP including a full reforecast of the financial position and cashflows for the period to March 2027. This included stress testing the cash position to the extreme of zero occupancy. The contractual structure of GCP is such that the void mechanism ensures GCP can continue to cover all contractual payments. Operating risk sits with the care provider, OSJCT, and therefore Trustees are assured there is limited risk to GCP.

However, the current contractual structure has resulted in a deficit position each year and a cumulative deficit on the balance sheet. The Estates Committee, which was re-established in 2017/18 completed the first phase of the estates strategy in December 2019 which sets out the financial support GCC will provide for the older homes until 2025. The older homes contract has been extended to the end of January 2026 to support GCC whilst they conduct a retendering process for the management of these homes. GCP, with OSJCT as care provider, has decided it will not participate in the re-tender process. Further consideration will be given to the contract structure of GCP during the next financial year with consideration given to the reduction in size of the GCP contract with GCC.

As a result, whilst the charity will have sufficient working capital and cash flows to continue in operational existence, this is dependent on the continuing financial support of the two members of the Charity, (bpha and OSJCT), who have agreed to provide financial support to the Charity for a period of at least 12 months from the date of signing the financial statements. This financial support includes not calling in the working capital loans made by both joint venture parties, nor the associated interest accrued, and providing further financial support to

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Accounting policies (continued)

Going concern (continued)

meet liabilities as they fall due if required. Whilst the Trustees believe this support will be forthcoming, the letters of support are not a legal commitment and could be withdrawn.

Therefore, a material uncertainty exists that may cast significant doubt on the Charity’s ability to continue as a going concern and therefore its ability to realise its assets and discharge its liabilities in the normal course of business.

The financial statements do not include the adjustments that would result if the Charity was unable to continue as a going concern.

c. Company status

The charity is a company limited by guarantee. The members of the company are the Trustees named on page 3 as well as The Orders of St John Care Trust and bpha. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

d. Fund accounting

General funds are unrestricted funds, which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Investment income and gains are allocated to the appropriate fund.

e. Income from charitable activities

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Revenue is accounted for on the basis of invoiced charges to GCC for residential and related care services, raised in accordance with Local Authority block contract and recognised over the period in which provided. Income excludes charges to self-funding residents.

f. Expenditure on charitable activities

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to a particular heading they are allocated to activities on a basis consistent with use of the resources.

Residential care costs are contractual payments to OSJCT as care provider in relation to the provision of care services in the homes. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include rent and planned maintenance.

g. Significant Accounting Estimates and Judgements

In determining the carrying amounts of certain assets and liabilities, the Charity makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The Charity’s estimates and assumptions are based on historical experience and expectation of future events and are periodically reviewed.

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Accounting policies (continued)

Significant Accounting Estimates and Judgements (continued)

Management consider the judgment applied to revenue recognition to be significant, in relation to whether GCP acts as principal or agent in its contractual arrangements. GCP is considered to act as principal in the contractual arrangements with GCC. Accordingly, income received from GCC is recognised in full. GCP is not considered to act as principal in the contractual arrangements with self-funded residents. Accordingly, income received from selffunded residents is not recognised.

Management considered the classification of leases between finance and operating leases and took the judgement that all leases should be classified as operating.

h. Operating leases

Rentals applicable to operating leases are charged to the SOFA over the period in which the cost is incurred.

i. Taxation status

As a charity the GCP is exempt from taxation on its charitable activities.

j. Fixed assets

Expenditure incurred on assets held on a continuing basis for the activity of the company is capitalised where appropriate and included in fixed assets at cost. An annual review is undertaken to determine any impairment in the net book value of property assets. Impairment losses are recognised in the SoFA as expenditure.

Depreciation is provided to write off the cost less residual value on a straight line basis over the useful economic life of the asset concerned. The following rates apply:

Leasehold assets: 30 years or remainder of lease if shorter.

k. Financial Instruments

The Company 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.

l. Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other shortterm highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

2. Income from Charitable activities

The fees for care of £17,833,000 (2024: £17,073,000) are received for block and spot placement contracts with GCC.

[20]

THE GLOUCESTERSHIRE CARE PARTNERSHIP

3. Expenditure on Charitable activities

Care services fees
Operating lease rentals – land & buildings
Management fees
Interest paid
Depreciation
Governance costs (audit fee)
Contractual provision
Exceptional items
Total Charitable expenditure		 2025
£’000
2024
£’000
14,540)
13,830
3,211)
3,171
56)
33

16)
9)
33)
-)
-
17
9
22
50
(70)
17,865)
17,062

The exceptional item realised in the prior year relates to the reversal of the impairment of Jubilee Lodge due to improved performance.

Gloucestershire Care Partnership does not have any employees.

4. Trustees Remuneration

The Trustees neither received nor waived any emoluments during the year.

No out of pocket expenses were reimbursed to Trustees.

5. Fixed assets

Cost
At 31 March 2024 and 31 March 2025
Depreciation
At 31 March 2024
Depreciation charge
At 31 March 2025
Net Book Value
At 31 March 2024
At 31 March 2025		 Leasehold
Improvements
£’000
272)
114
9
123
158
149

[21]

THE GLOUCESTERSHIRE CARE PARTNERSHIP

6. Debtors

Other debtors and accrued income
Amounts due from related undertakings
Prepayments
Total
7.
Creditors: amounts falling due within one year
Trade creditors
Accruals
Amounts due to related undertakings
Total
8.
Creditors: amounts due after more than one year
Amounts due to related undertakings
Total		 2025
£’000
2024
£’000
-
59
2
-
24
36
83
38
2025
£’000
2024
£’000
7
31
509
114
1,006
989
1,522
1,134
2025
£’000
2024
£’000
250
250
250
250

There is an agreement that OSJCT will pay £50,000 per annum into a provision held in OSJCT in relation to potential dilapidations arising at the end of the contract. Trustees’ best estimate at the date of signing these financial statements is that no dilapidations will be required to be paid at the conclusion of the contract, at which point the money will be paid back to OSJCT. The position on dilapidations is currently in review for one of the older homes and is not confirmed at this point, but it is Trustees’ best estimate that no dilapidations will be required.

9. Cash and Cash Equivalents

Cash at bank
Total		 2025
£’000
2024
£’000
728
388
728
388

[22]

THE GLOUCESTERSHIRE CARE PARTNERSHIP

10. Operating Lease commitments

At 31 March 2025, the company had total commitments under non-cancellable operating leases as follows:

Due within 1 year
Due within 1-5 years
Due in more than 5 years		 2025
Land and
Buildings
£’000
2024
Land and
Buildings
£’000
2,799
11,048
99,000
3,171
10,972
100,911
112,847
115,054

Due to an error in calculation, the prior year figures have been amended for Operating Lease Commitments, with the effect of increasing the commitment by £1.2m. This has no impact on either the Statement of Financial Activities, the Balance Sheet or the Statement of Cash Flows, and only effects the figures presented here.

11. Analysis of net liabilities between funds

Funds balances are represented by:
Fixed assets
Current assets
Current liabilities
Long term liabilities
Total net liabilities		 2025
Unrestricted
Funds
2024
Unrestricted
Funds
£’000
£’000
149
158
811
426
(1,522)
(1,134)
(250)
(250)
(812)
(800)

[23]

THE GLOUCESTERSHIRE CARE PARTNERSHIP

12. Related Party Transactions

bpha

The income and expenditure account includes the following transactions between the Partnership and bpha, which is one of two equal members in the company:

Expenditure:
Property lease rentals
Interest
The amounts due to bpha at the year-end are:
Payable:
Short-term loan
Interest on loan payable		 2025
£’000
2024
£’000
2,440
2,423
8
8
2,448
2,431
2025
£’000
2024
£’000
250
250
184
176
434
426

The Orders of St John Care Trust

The income and expenditure account includes the following transactions between the Partnership and OSJCT, which is one of the two equal members in the company:

Expenditure:
Contractual payments to OSJCT
Management fees
Interest on loan		 2025
£’000
2024
£’000
14,540
13,831
29
33
9
8
14,578
13,872

[24]

THE GLOUCESTERSHIRE CARE PARTNERSHIP

Related Party Transactions (continued)

The amounts due to or from OSJCT at the year-end are:

Receivable:
Other Debtors (care service charge adjustment)
Payable:
Short-term loan
Interest on loan
Care services fees
Management fees
Dilapidations		 2025
£’000
2024
£’000
59
0
250
250
184
176
109
109
29
28
250
250
822
813

Under the terms of the care services contract, Gloucestershire County Council are contracted to purchase a minimum number of bed spaces in the GCP homes with the balance being available to OSJCT. In the event purchasing falls below these levels the Council either pay a ‘void’ rate or OSJCT has the rights to offer the bed space to the NHS, other Local Authorities or private fee payers. Any such placements by OSJCT are at £nil consideration to GCP.

All income directly received by OSJCT and any associated risk e.g. providing required care at premium rates (agency), being exposed to doubtful debt or rising costs above contractual inflation that may arise, is the direct responsibility of OSJCT as care provider.

OSJCT and bpha each provide a working capital loan to the Charity of £250,000 on an arm’s lengths basis, renewable on a 12-month basis.

[25]