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2020-03-31-accounts

Charity Registration No. 1118555

Company Registration No. 05957410 (England and Wales)

STAPELY JEWISH CARE HOME LIMITED

T/A STAPELY JEWISH CARE HOME ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr P Ettinger
Mr R Ettinger
Charity number 1118555
Company number 05957410
Principal address 27 Allerton Drive
Liverpool
L18 6HH
Registered office North Mossley Hill Road
Liverpool
L18 8BR
Auditor Bennett Verby Limited
7 St Petersgate
Stockport
SK1 1EB
Bankers Barclays Bank plc
164 Allerton Road
Mossley Hill
Liverpool
Merseyside
L18 2DH
Solicitors Aaron & Partners
5 - 7 Grosvenor Court
Foregate Street
Chester
CH1 1HG

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME CONTENTS

Page
Trustees' report 1 - 4
Statement of Trustees' responsibilities 5
Independent auditor's report 6 - 7
Statement of financial activities 8
Balance sheet 9 - 10
Statement of cash flows 11
Notes to the financial statements 12 - 22

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2020

The Trustees present their report and accounts for the year ended 31 March 2020.

Principal activities

Stapely Jewish Care Home Limited provides nursing and residential care in South Liverpool. The care home is located at North Mossley Hill Road, Liverpool, Merseyside, L18 8BR and provides care for a maximum of 97 services users.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts 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 2015)”

Objectives and activities

The charity' s objects are to provide nursing and residential care for older Jewish people within the local community. The policies adopted in furtherance of these objects are the provision of high quality care on a one to one basis and there has been no change in these during the year.

The charity seeks to generate additional income from a range of sources to contribute towards the operating costs compared to core net income from the home.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake with regards to providing a public benefit.

Strategic report

The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the Trustees to present a strategic report.

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2020

Achievements and performance

We have continued to make very good progress on our very clearly defined objectives that have been established for the future services supplied by Stapely Jewish Care Home to the local Jewish and wider communities. Our clear vision for the way forward is now well established. Our main objective is to offer exceptional care in an exceptional environment.

The Charity has continued to recover from the inspection by the Care Quality Commission in April 2018 which saw the charity placed under special measures. We have worked tirelessly to improve the standards of care provided in light of this review and we are pleased to report that the latest inspection in December 2019 saw significant improvement. The charity is now classed as requiring improvement in only one areas and we continue to work to achieve the high standards we aim to provide.

The completion of the Fernlea Wing in the prior year continues to make a significant contribution to the services offered and to deliver on the accommodation demand required in the area.

We have also continued our roll out programme of creating large state of the art premium quality suites with self-contained kitchen, en-suite and living areas. These are of significant strategic importance as we are now offering the opportunity to allow couples to remain together where one or the other requires medical or nursing support.

We are proud of the level of care our wonderful staff offer to all of our residents, patients and their families, and now we are proceeding to match the environment with the level of care supplied. The future objective is to create a retirement village complex on the site, offering a full service-led environment to enable residents to move from self-sufficiency to full nursing care where necessary, without having to move from their home. This is now in progress and with the successful establishment of our new Coffee Lounge adjacent to the main front reception area, which is proving to be very popular with our residents and patients and their families, and our new restaurant to be coming on stream in our Fernlea wing, following the building of our new joining link between our Residential and Fernlea wings, our facilities will be second to none, all presented within an exceptionally beautiful environment which is currently being significantly improved and enhanced by the provision of additional car parking facilities and landscaped gardens.

Financial review

The results for the year are set out on page 8.

The principal funding comes from residents in the nursing and residential home with additional voluntary income received from a wide range of sources including donations, appeals and legacies.

Total incoming resources for the year ended 31 March 2020 were £2,836,763 (2019: £2,727,563) reporting a significant increase following the receipt of two legacies during the year.

The total reserves at the year end stood at £1,521,386 (2019: £1,284,027). This includes a restricted fixed asset fund of £ 84,612 (2019 - £88,815) relating to assets of the charity which are not available for general purposes.

A financial review takes place monthly with strategic matters and day to day functions discussed. A close liaison with our financial and legal advisors to receive and deal with management information is a consistent modus operandi for the trustees and the efficient and proactive functioning of the business of the charity.

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 considers 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.

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

The reserves policy for the charity is to strive to build up the reserves from donations and legacies. There is a clear objective to achieve this to enable the future development of Stapely Jewish Care Home and its infrastructure to enable us to offer the best possible care, in the best possible environment for our residents, patients, their families and friends and our wonderful and dedicated staff.

Risk management

The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The risk management strategy includes :

This work has identified that financial sustainability is the major risk for the charity. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due, regular liaison with the bank and active management of trade debtor and creditor balances to ensure sufficient working capital by the company.

Attention has also been focused on non-financial risks arising from fire, health and safety and food hygiene. These risks are managed by ensuring accreditation is up to date, having policies and procedures in place, and regular awareness training for staff working in these operational areas.

The trustees have a duty to identify and review the risks to which the care home is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

In light of the emerging situation in relation to the Coronavirus (Covid-19) pandemic, it has become critical to ensure that all possible measures are adopted to protect residents and staff. Therefore it is likely that some disruption to the activities in the homes I likely throughout 2020/21. The Trustees and management are closely monitoring the ongoing situation within the homes and more widely across the locality and also in related services such as the NHS.

The Trustees are seeking to enhance the financial and organisational resilience of the company, primarily by budgeting for ongoing operating surpluses each year and keeping under review the company’s long term financing requirements, as well as by actively monitoring the likely regulatory and operational developments, in order to be able to respond appropriately and to continue to provide broadly its current range of services and activities over the medium / long term.

Structure, governance and management

The charity is controlled by its governing document, the memorandum and articles of association dated 5 October 2006. The charity constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

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 P Ettinger Mr R Ettinger

STAPELY JEWISH CARE HOME LIMITED TIA STAPELY JEWISH CARE HOME TRUSTEES. REPORT (INCLUDING DIRECTORS REPORT AND STrATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AIARCH 2020 K•y m•n•g•m•nt p•rnonn•l Th& key Managert￿l ol lh& • mhJw•d tt) and the Pl•n• forlulur• p•rlod• rwrves and diive offiaèndes throl￿￿￿t the ctharfty. In Ilght ol the 8m6rgir4J sItuati￿Tr kn relakn to CLYLwkn (C(h￿l9) it has bocxn• to •n$uro that all poswt48 rMasur85 ar¥ to ￿￿e¢l r•s#l8nts and *off. it 16 likoly that some do8ely rnonltortng tho (rfwirvj silu#ll￿ thllhwi •nd locallty and al•0 In 8•pAe•8 ￿ as th¢ NHS. finanryng requirgmonls. as well as by actvety the likety rwJulaW arKJ OFwall￿￿ devokwents. and actsvitss over lh• M￿l￿M I term. Mrp ttlng•r Trustee

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2020

The Trustees, who are also the directors of Stapely Jewish 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.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the Charity Commission and charity's website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF STAPELY JEWISH CARE HOME LIMITED

Opinion

We have audited the financial statements of Stapely Jewish Care Home Limited (the ‘charity’) for the year ended 31 March 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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 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.

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF STAPELY JEWISH CARE HOME LIMITED

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the s tatement of Trustees' r esponsibilities, 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

We have been appointed as auditor under section 144 of the Charities Act 2011 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Bernard Verby (Senior S tatutory Auditor) for and on behalf of Bennett Verby Limited

Chartered Certified Accountant Statutory Auditor

7 St Petersgate Stockport SK1 1EB

Bennett Verby Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006")

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2020

Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income and endowments from:
Donations and legacies
3
496,339
-
Charitable activities
4
2,340,424
-
Total income
2,836,763
-
Expenditure on:
Raising funds
5
749
-
Charitable activities
6
2,586,228
4,203
Expenditure on raising
funds
10
8,223
-
Total resources
expended
2,595,200
4,203
Net income/(expenditure)
for the year/
Net movement in funds
241,563
(4,203)
Fund balances at 1
April 2019
1,195,211
88,815
Fund balances at 31
March 2020
1,436,774
84,612		 TotalUnrestricted
funds
2020
2019
£
£
496,339
494,793
2,340,424
2,232,770
2,836,763
2,727,563
749
3,779
2,590,431
2,435,762
8,223
8,770
2,599,403
2,448,311
237,360
279,252
1,284,026
915,960
1,521,386
1,195,212		 Restricted
funds
2019
£
-
-
-
-
4,203
-
4,203
(4,203)
93,018
88,815		 Total
2019
£
494,793
2,232,770
Donations and legacies
3
Charitable activities
4
Total income
Expenditure on:
Raising funds
5
Charitable activities
6
Expenditure on raising
funds
10
Total resources
expended
Net income/(expenditure)
for the year/
Net movement in funds
Fund balances at 1
April 2019
Fund balances at 31
March 2020
2,727,563
3,779
2,439,965
8,770
2,452,514
275,049
1,008,978
1,284,027

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME BALANCE SHEET

AS AT 31 MARCH 2020

Notes
Fixed assets
Tangible assets
11
Current assets
Stocks
12
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
16
Net assets
Income funds
Restricted funds
18
Unrestricted funds		 2020
£
£
463,269
10,340
1,477,820
7,262
1,495,422
(363,877)
1,131,545
1,594,814
(73,428)
1,521,386
84,612
1,436,774
1,521,386		 2019
£
£
489,780
9,576
1,352,766
7,121
1,369,463
(551,540)
817,923
1,307,703
(23,676)
1,284,027
88,815
1,195,212
1,284,027

STAPELY JEWISH CARE HOME LIMITED TIA STAPELY JEWISH CARE HOME BALANCE SHEEf (CONTINUED) ASAT31 MARCH 2020 CoM￿Y wlth section 386 of th• Aet and for rnpwlry IlnKial sts1w￿l• 9t￿ a #nd fair viw of the $tst• of of the c(¥nwy as 81 Ihe of the finart?al yeyr #nd of it¥ IrthmirvJ rewrces and applution of rWOuT￿. induding tts Inc(The and •XE￿KIltsW$. fty th8 finan¢ial yow In acc(1d￿ with the wwuirements of The fin•nd•l slatemwts *Yn Tfu•l•es on .li..l&1.24..... Mr P Ethng Tru•t•• Compuy R•gl%tr•tlon No. QS•S7410 10-

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2020

2020 2019
Notes £ £ £ £
Cash flows from operating activities
Cash generated from/(absorbed by) 24
operations 251,107 (155,737)
Investing activities
Purchase of tangible fixed assets (52,500) (105,408)
Net cash used in investing activities (52,500) (105,408)
Financing activities
Repayment of borrowings (283,654) (20,028)
Proceeds of new bank loans 100,000 (253,605)
Net cash used in financing activities (183,654) (273,633)
Net increase/(decrease) in cash and cash
equivalents 14,953 (534,778)
Cash and cash equivalents at beginning of year (36,742) (9,174)
Cash and cash equivalents at end of year (21,790) (36,742)
Relating to:
Cash at bank and in hand 7,262 7,121
Bank overdrafts included in creditors
payable within one year (29,052) (43,863)

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

1 Accounting policies

Charity information

Stapely Jewish Care Home Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is North Mossley Hill Road, Liverpool, L18 8BR.

1.1 Accounting convention

The accounts have been prepared in accordance 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)” (as amended for accounting periods commencing from 1 January 2016). 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 a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

These accounts are prepared on the going concern basis. The Trustees have a reasonable expectation that the charity will continue in operational existence for the foreseeable future.

The charity manages its day to day working capital requirements through its cash reserves and banking facilities. In addition, the company retains the support of its bankers who have not called in the facilit ies in spite of a breach in the loan covenants and remain committed to continuing this support in the foreseeable future.

The trustees believe that the going concern basis is still applicable, having reviewed projections and cash flow forecasts, as they believe that the company will have sufficient finances to meet its future obligations as and when they fall due.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity .

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

1 Accounting policies

(Continued)

1.5 Expenditure

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

Expenses include VAT where applicable as the company cannot reclaim it.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, 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:

Plant and machinery 20% straight line Fixtures, fittings & equipment 15% reducing balance Motor vehicles 10% straight line

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 net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials . Items held for distribution at no or nominal consideration are measured at cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 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.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

1 Accounting policies

(Continued)

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.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans 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 p aymen ts 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.

1.11 Taxation

The charity is exempt from taxation on its charitable activities.

1.12 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.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

There have been no critical accounting estimates or judgements used in the preparation of these financial statements.

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

2 Critical accounting estimates and judgements

(Continued)

Key sources of estimation uncertainty

Legacy recognition

Legacy income has been recognised at the date the distribution was confirmed rather than the date of payment. This is in line with the accounting policy.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Donations and gifts 121,339 59,793
Legacies receivable 375,000 435,000
496,339 494,793
Charitable activities
2020 2019
£ £
Residential income 1,780,930 1,796,303
Other income 78,932 23,808
Nursing home income 480,562 412,659
2,340,424 2,232,770
Raising funds
Unrestricted Unrestricted
funds funds
2020 2019
£ £
Fundraising and publicity
Advertising 749 3,779
749 3,779

4 Charitable activities

5 Raising funds

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

6 Charitable activities

Staff costs
Depreciation and impairment
Rates
Insurance
Light & heat
Repairs & maintenance
Postage & carriage
Telephone
Travel
Sundry
Trading costs
Subscriptions
Bank charges
Legal & professional
Analysis by fund
Unrestricted funds
Restricted funds
Support costs
Support
costs
Governance
costs
£
£
Depreciation
74,388
-
Audit fees
-
5,000
Accountancy
-
5,000
Legal and professional
-
79,545
74,388
89,545		 2020
£
74,388
5,000
5,000
79,545
163,933		 2020
£
1,650,592
82,214
25,414
22,818
100,382
158,483
10,213
2,287
4,820
47,872
366,832
16,096
22,863
79,545
2,590,431
2,590,431
2,586,228
4,203
2,590,431
Support
costs
Governance
costs
£
£
74,014
-
-
5,000
-
5,000
-
110,927
74,014
120,927		 2019
£
1,639,468
78,637
34,845
26,016
62,513
108,769
11,201
2,247
2,675
28,415
286,989
16,096
21,167
120,927
2,439,965
2,439,965
2,435,762
4,203
2,439,965
2019
£
74,014
5,000
5,000
120,927
204,941

7 Support costs

Governance costs includes payments to the auditors of £ 5,000 (2019- £ 5,000 ) for audit fees.

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

8 Trustees

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

None of the Trustees incurred or claimed any expenses from the charity during the year.

9 Employees

Number of employees

The average monthly number of employees during the year was:

Care and admin staff
Employment costs
Wages and salaries
Social security costs
Other pension costs
There were no employees whose annual remuneration was £60,000 or more.
10
Expenditure on raising funds
Financing costs		 2020
Number
84
2020
£
1,514,912
109,643
26,037
1,650,592
2020
£
8,223		 2019
Number
86
2019
£
1,521,919
114,723
2,826
1,639,468
2019
£
8,770

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2020

11
Tangible fixed assets
Cost
At 1 April 2019
Additions
At 31 March 2020
Depreciation and impairment
At 1 April 2019
Depreciation charged in the year
At 31 March 2020
Carrying amount
At 31 March 2020
At 31 March 2019
12
Stocks
Raw materials and consumables
13
Debtors
Amounts falling due within one year:
Trade debtors
Amounts owed by fellow group undertakings
Prepayments and accrued income		 Plant and
machinery
£
30,322
-
30,322
28,597
982
29,579
743
1,725		 Fixtures,
fittings &
equipment
Motor vehicles
£
£
652,101
46,230
52,500
-
704,601
46,230
189,391
20,885
73,406
4,623
262,797
25,508
441,804
20,722
462,710
25,345
2020
£
10,340
2020
£
81,369
1,213,680
182,771
1,477,820		 Total
£
728,653
52,500
781,153
238,873
79,011
317,884
463,269
489,780
2019
£
9,576
2019
£
62,381
772,868
517,517
1,352,766

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

14 Loans and overdrafts

Bank overdrafts
Bank loans
Other loans
Payable within one year
Payable after one year		 2020
£
29,052
-
113,654
142,706
69,278
73,428		 2019
£
43,863
253,605
43,703
341,171
317,495
23,676

The long-term loans are secured by fixed charges over the Chattels of the charity.

The charity has agreed to give the lender security for the loan by way of a Mortgage of Chattels in favour of Bathgate Leasing Limited. The parties have entered into two 5 year fixed term loan agreements for the sum of £100,000 each, to be repaid by 60 equal instalments of £2,400 per month.

15 Creditors: amounts falling due within one year

Notes
Bank loans and overdrafts
14
Other borrowings
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2020
£
29,052
40,226
80,146
91,078
17,028
106,347
363,877		 2019
£
297,468
20,027
33,242
117,875
11,276
71,652
551,540

The bank borrowings are secured by a fixed and floating charge and a negative pledge over the property and undertakings of the company in favour of Barclays Bank PLC dated 27 November 2017.

16 Creditors: amounts falling due after more than one year

2020 2019
£ £
Borrowings 73,428 23,676

Included within borrowings is a loan from Bathgate Leasing Limited. This loan is repayable over a five year term, with an interest rate of 8.8%. The loan is secured by a fixed charge over the assets of Stapely Jewish Care Home Limited.

17 Government grants

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

(Continued)

Deferred income relates to income invoiced by the charity which relates to the 2020/21 year end. This has been deferred as the charity has no right to the income at the balance sheet date.

18 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement Movement
in funds in funds
Balance at Outgoing Balance at Outgoing Balance at
1 April 2018 resources 1 April 2019 resources
31		 March 2020
£
£		 £
£		 £
Fixed asset fund 93,018
(4,203)		 88,815
(4,203)		 84,612

Fixed asset restricted fund

This relates to a donation from the late trustee Dr Eric Toke of £109,280 which was to be solely used for fixed asset purchases in the charity.

At the balance sheet date, £42,030 of the restricted donation has been spent on the purchase of a minibus (£39,280) and a van (£2,750). The remaining balance of £67,250 remains unspent and is carried forward (together with the net book value of the vehicles acquired - £ 17,362 ) for future use by the charity.

19 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2020
2020
£
£
Fund balances at 31
March 2020 are
represented by:
Tangible assets
378,657
84,612
Current assets/
(liabilities)
1,131,545
-
Long term liabilities
(73,428)
-
1,436,774
84,612		 TotalUnrestricted
funds
2020
2019
£
£
463,269
489,780
1,131,545
817,923
(73,428)
(23,676)
1,521,386
1,284,027		 Restricted
funds
2019
£
-
-
-
-		 Total
2019
£
489,780
817,923
(23,676)
1,284,027

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2020

20 Financial commitments, guarantees and contingent liabilities

On 20 January 2016 the charity provided a Mortgage Chattels in favour of Bathgate Leasing Limited in the order of £100,000 in respect of liabilities to Bathgate Leasing Limited.

On 28 November 2017 the charity provided a limited guarantee to Barclays Bank plc in relation to liabilities owed by its parent Home For Aged Jews (Liverpool and District) to the value of £1.309 million.

On 21 October 2019 the charity provided a legal mortgage over the fixed assets in favour of Bathgate Leasing Limited in the order of £100,000 in respect of liabilities to Bathgate Leasing Limited.

21 Operating lease commitments

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		 2020
£
470
118
588		 2019
£
715
588
1,303

22 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2020 2019
£ £
Aggregate compensation 245,971 -

Transactions with related parties

The trustees all give their time and expertise without any form of remuneration or other benefit in cash or kind (2019: £nil). There were no expenses paid to the trustees in the year.

During the year there were no transactions with related parties .

STAPELY JEWISH CARE HOME LIMITED T/A STAPELY JEWISH CARE HOME NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2020

23 Ultimate controlling party

The charity is a wholly owned subsidiary of Home For Aged Jews (Liverpool and District) charity number 220797. Home For Aged Jews (Liverpool and District) provides nursing and residential care for older Jewish people within the local community.

The consolidated accounts are available from the principal office of the charity, White Gables, 1 North Mossley Hill Road, Liverpool, L18 8BR.

24 Cash generated from operations 2020 2019
£ £
Surplus for the year 237,360 275,049
Adjustments for:
Depreciation and impairment of tangible fixed assets 79,011 75,637
Movements in working capital:
(Increase) in stocks (764) (4,806)
(Increase) in debtors (125,054) (502,957)
Increase in creditors 60,554 4,569
(Decrease) in deferred income - (3,229)
Cash generated from/(absorbed by) operations 251,107 (155,737)
25 Analysis of changes in net (debt)/funds
At 1 April 2019 Cash flows At 31 March 2020
£ £ £
Cash at bank and in hand 7,121 141 7,262
Bank overdrafts (43,863) 14,811 (29,052)
(36,742) 14,952 (21,790)
Loans falling due within one year (273,632) 233,406 (40,226)
Loans falling due after more than one year (23,676) (49,752) (73,428)
(334,050) 198,606 (135,444)