Registered Charity No: Company Number: 1122183 06461263 LILIAN rAITIIFULL CARE LILIAN FAITHFULL CARE TRUSTEES REPORT AND ACCOUNTS FOR THE PERIOD ENDED 31 MARCH 2024 Note - the charity changed financial year from January - December to April - March, to align it with the accounting periods of commissioners and government.
LILIAN FAITHFULL CARE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 hlARCH 2024 CONTENTS PAGE Reference and Administrative Details Objectlves and Actlvities Achlevement and Performance How our Activities Achieve ourAim and Public Benefit Summary of Future Plans Feedback on the Care We Provide Financial Review 10-12 Risk Management 13 Structure, Governance and Management 13-15 Statement of Trustees, Responsibilities 16 Independent Audltors, Report 17-19 Statement of Flnanclal Activities 20-21 Balance Sheet 22 Cash Flow Statement 23 Notes to the Flnancial Statements 24-37
LILIAN FAITHFULL CARE REFERENCE AND ADMINISTRATIVE INFORMATION FOR THE PERIOD ENDED 31 MARCH 2024 Name of Charity Charlty Number Company Reglstratlon Number Reglstered Office Lilian Faithfull Care 1122183 06461263 Ground Floor West Festival House Jessop Avenue Cheltenham Gloucestershire GL50 3SH Principal Office Ground Floor West Festival House Jessop Avenue Cheltenham GIoUsterShIre GL50 3SH Trustees Fiona spenr. Chair (Appointed 15 June 2022) Alan Bishop Fiona Court Sandra Harding (Appointed 4 January 2023) Gareth Parry Phillip Pratt Martyn Smith Emma Morgan {Appointed 18 May 2023) Leaine Thompson (Appointed 18 May 2023 and resigned 18 March 2024) Eve Russell (Appointed 30 May 2023) Adam Watts (Appointed 12 June 2023) Dame Janet Trotter Company Secretary Martin Wood Chief Executive Kevin Snowball (Started 17 April 2023) Suzanne Booker Interim Chief Executive (21 November 2022 to 16 April 2023) Auditors Hazlewoods LLP Windsor House Bayshill Road Cheltenham Gloucestershire GL50 3AT
LILIAN FAITHFULL CARE REFERENCE AND ADMINISTRATIVE INFORMATION FOR THE PERIOD ENDED 31 MARCH 2024 Bankers Barclays Bank PLC 128 High Street Cheltenham Gloucestershire GL50 1EL Sollcltors BPE St James House St James Square Cheltenham Gloucestershire GL50 3PR Investment Managers atomos One Temple Quay 1 Temple Back East Bristol BS16DZ
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2024 The Trustees of Lilian Farf(hfull Care present their Annual Report for the 15-month period ended 31 March 2024 ('FP2024°) In accordan with FRS 102, the Charitles SORP (FRS 102), the Companies Act 2006, the Charities Act 2011 and the Care Quality Commission. The Trustees are also approving the Strategic Report in their capacity as company directors. OBJECTIVES AND ACTIVITIES Our Aim and Public Benefit The Trustees of Lilian Faithfull Care have the ultimate responsibility for the wellbeing of the Charity. they also set the tone for the way the Charity presents and conducts itself. Our Charity's aim, as set out in the objects contained in the Charity's Memorandum and Articles of Association, is 'to relieve elderly persons in necessitous circumstances upon terms appropriate to their means. and to provide for aged persons in need thereof, accommodation and any associated amenities specifically designed or adapted to meet the disabillties and requirements of such persons.. Our public benefit can therefore be sumrnarised as to provide a safe, friendly and supportive environment for older people at our day ntreS and residential and nursing homes, across the County of Gloucestershire. Under company law the Directors of the Company acting as Trustees should ensure that the Charity offers an appropriate range and quality of care for older people in accordance with the Company's Memorandum & Artides of Association. The Trustees must also ensure that resourc8s ar8 Utilised in accordance with any legal obligations laid down by statute, HMRC, other Govemment agencies, Companies House and the Charity Commission. Everyone who works for the Charity has a responsibility to be mindful of the great legacy Lilian Faithfull entrusted to us to steward for our successors. Ensuring Our Work Delivers Our Aim W8 review our aim. objeclives and activities regularty looking at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help. The review also helps us ensure our aim, objectives and activities remained focused on our stated purposes. We have referred to the guidance contained in the Charity Commission's gen8ral guidance on public benefit when reviewing our aim and objectives and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aim and objectives they have set. Strategic Objectlves Our 2022 - 2026 strategic pillars are as follows: Providing high quality care services to residents and guests Attracting, retaining and developing competent and compassionate staff. Working collaboratively with families. health professionals and community I business partners.
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2024 Ensuring we manage and develop the estate to meet the changing needs of our beneficiaries. Managing our finances and operations effectively and prudently. Achieving the highest standards of corporate govemance and communication. Building on research and evidence to support innovation and change. A full strategy review is planned for later in 2024 to reassess the medium- and longer- term direction for the Charity. ACHIEVEMENTS AND PERFORMANCE For FP2024 the strategic pillars translated to the following key objectives with their outcomes and actions: Providing high quality care services to residents and guests Ensure all our homes contlnue to be CQC compliant Our homes were inspected under the Care Quality Commission's Infection Protection Team and all five homes received positive feedback. Our target is for all six homes to be rated "Good. by our CQC regulator. We achieved the target for five of our homes. however, in March 2023, the CQC downgraded Astell House to Requires Improvement". We have submitted to the CQC a report on the actions we have taken and are waiting for a re-inspection date. We have had a subsequent inspection from Gloucestershire County Council which gave good feedback. Lilian Faithfull appoints an external CQC Inspector to conduct appropriate mock CQC inspections in all of our homes to ensure we monitor and maintain stsndards. Managlng our finances and operations effectively and prudently. To achleve occupancy levels of at least 88f•/o Overall occupancy for the year was 82 %. This below our target with18vels impacted in Novemb8r and December by Covid and influenza. We liaised extensively with our partners in the NHS and local authority to help the wider health and car6 System wherever we could. Syst8m1 has benefited our staff and residents in supporting their healthcare needs. This is a clinical comput@r system which communicates between health and social car8 organisations updating resident health records. It provides a shared record across all health care settings and facilitstes rapid response of medical requirements when needed. Generating a reasonable surplus to enable re-investment in the Charity and its staff Significant cost increases in the year combined with lower than forecasted income from reduced occupancy meant that we did not generate a surplus in this period. The national minimum wage increase of almost 100/0, food inflation of 20 % and other cost increases were not matched by Local Authority rate increases. We were successful in attracting, retaining and developing competent and compassionate staff.
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2024 Peo le Develo ment and Trainln In FP2024 we continued to expand our programme with the University of Gloucestershire offering placements to degree students on healthcare courses. For the first time we welcomed paramedic students on placement in addition to nurses and physiotherapy students. Students work alongside our staff who are trained as mentors and the partnership continues to enrich the life of the homes and develop the next generation of health and care professionals. Through continuous investment in training, we now have many colleagues with NVQ qualifications and a cohort of qualified Nursing Associates. We have a clearly defined progression matrix communicated to all staff; we promote succession planning and look at restructuring wher6 needed as the Charity grows. We were particularly proud to appoint a Home Manager in October who had developed her career at Lilian Faithfull after starting as a nurse. The wellbeing of our staff is achieved through effectively communicating a wide range of benefits in our staff forums and rnonthly HR and Training clinics held in each home. We continue to benchmark wages and benefits to compete with market trends. Recruitment within the sector Continues to be a challenge with competition from NHS and retail and hospitality exacerbated by the high cost of living. We have successfully sponsored 15 overseas colleagues via the Heallh and Social Care w.sa scheme and are benefitting from their expertise. In September we were pleased to host the Chief Nurse for Social Care, who visited Faithfull House after the Gloucestershire Care ProvidersAssociation (GCPA) Conference. She had a tour of the home, chatted with staff on duty and was impressed with our length of service across the home and training and development of our staff. Increasin rof ile: our Through events and promoting our charitable worf( we continue to build awareness of our Charity in the County. We are well represented on external bodies such as the Gloucestershire Care Providers Association (GCPA) and the National Care Forum (NCF) and have been invited to pilot a number of initiatives and projects within the integrated care system. We are well respected by local commissioning teams and in June we were contacted by the brokerage team at Gloucestershire County Council to assist with the sudden Glosure of Malvern View care home at Cleeve Hill in Cheltenham. We put together a small implementation team and successfully transferred residents into three of our hom8s and subsequently appointed Malvern View staff into LFC roles. We were delighted to win two awards atthe Gloucestershire Care Providers Association (GCPA) awards event in September. Our Physioth8rapist Team won the Innovation in Social Care Award for creating a care homo gym in the Rggoncy building of Faithfull House in Suffolk Square Cheltenham, The equipment gives multiple health benefits to residents. including rehabilitation from
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2024 surgery and falls, increasing mobility, improving strength and building confidence and overall physical well-being. Volunteer of the Year award went to our partially sighted volunteer at Royal Court who regularly supports our residents by providing companionship and getting involved in organising activitl8S. collaborativel Workln with commun" I business artners: Our families of guests who attend the Secret Garden Day Centre have found this facility a safe space where they can share their stories and develop techniques in caring for their loved ones on their dementia joumey. In collaboration with Engaged Now we have established a safe, warm spac8, open one afternoon a week, where people within the Stroud community can come and meet others to assist with combatting loneliness. Growth and Develo ment - Ex ac uisitlon of suitable facilities: lore the o ortunit to row the Charit throu We completed the acquisition of Bay Tree Court, a 59 bed purpose built care home in Prestbury on the 1 February 2023 and have been integrating it into the group over the past year. Bay Tree Court offers a range of services from Independent Living apartments to respite, dementia care and residential care. It is an important part of the community in Prestbury and provides scope to develop a broader range of care and support services in the future. Pro erties and services - ensurin the are alwa s fit for ur ose: We continued to invest in upgrades to our properties and completed a number of notable projects in the course of the year. At St Faith's we rebuilt the top floor dining room and refurbished the lifts, which required th8 temporary closure of the top floor. At Royal Court we developed two new dementia wings, to create community living for groups of 6 residents with access to their own communal and dementia-friendly outdoor spaces. At newly acquired Bay Tree Court we conducted a major update to empty rooms and created a new secure dementia-friendly garden. Lilian Faithfull Care offers a range of expert dementia care services and at The Secret Garden Day Centre in the grounds of Faithfull House we offer a peaceful location for people living with dementia to spend the day enjoying activities from quizzes, gardening, crafts, dancing and listening to live music and visiting local coffee shops. In response to local requests, we have created a new group aimed specifically at younger people living with early onset dementia, typically aged 40 to 65-years so that they can meet with people their own age. During FP2024 we reviewed all of our service operations and made the difficult decisions to close our Uplands Day Centre and The Vintage and Treasure Charity shop in Tewkesbury.
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2024 Uplands service usage did not fully recover after Covid and we did not have the numbers to run the service sustainably. The charlty shop was popular with customers, but when the rent review resulted in significant additional costs it was not posslble to operate profitsbly and we did not renew the lease when it expired in October. In technolo -enabled care: Investln Care providers were set a target of implementing Digital Social Care Records by March 2024 and during FP2024 we took the big step of transitioning from paper based to a digital social care record system. We selected P@rson Centred Software to be our system provider and rolled out the system home-by-home using a "train the trainerf prOsS and adapting our approach to benefit from the learnings from each implementation. The programme has been very SLtccessful in reducing papenvork and bureaucracy, saving time on non-added value activity and freeing up more time for carers to spend with residents. Lilian Faithfull Care has been recognised as leaders in this area and has been invited to join the Regional Digital Champions Network and partner with the Digital Transformation Team in Gloucestershir8. HOW OUR ACTIVITIES ACHIEVE OURAIM AND PUBUC BENEFIT The Charity is one of the largest providers of social care for older people in Gloucestershire. The local authority and the regulator deem us a 'difficult to replace, care provider- this means that our services are vital to the community and the County. Our aim is to provid8 care and support for our residents and families irrespective of financial means. The Charity has navigated the challenge that many charities have not managed, in that balancing providing excellent care, increasing wages and increasing our supported residents whilst ensuring we remain a very stable place to live and work. We have always supported residents with limited resources where possible, During the period this cost us up to £3.1 million. increased from £1.5million in 2022. The Charity stands by its comrnitrnent of 'A Home for Lrfe, as we ensure that all our residents stay with us irrespective of their financial status. Those with little or no financial resources can apply to Social Services to pay the bulk of their fees. However, the amount that Social Services will pay is less than the actual cost of providing the required Gare. In the absence of help from family or other sources of support, such residents will have a shortfall in fees made up from the Charity's own resources. We do not ask any resident to leav& due to a financial circumslance. Considering the guidance from the Charity Commission. we demonstrate our publi benefit by providing care, catering and staffing levels higher than industry standards and a Home for Life alongside:
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2024 Our number of supported residents has increased by 167Yo since 2014. (43 vs. 115 residents). We provide emotional support and guidan through our MAST groups and Day Care. We continue to work closely with our colleagues in the NHS and Gloucestershire County Council to ease demand In the hospitals and help with short-term support. SUMMARY OF FUTURE PLANS We are ambitious for LFC. Our quality of care and our quality of colleagues and our reputation in the health and care sector are strengths to build on. W8 want to bè able to support rnore people. provide secure careers for colleagues and champion the cause for not-for-profit care provision. Lilian Faithfull aspires to create the best care home experience in Gloucestershire through our dedicated people, our home from home Yeel, and our constant drive to personalise our service to meet the particular needs of every resident. Our 'home for lif8, pledge connects us to our charitable purpose and our principle of being in care for the right reasons. not for profit. We support older people to live their lives the way they wish. We understand the importance of personal preferen. encourage Independen and aim to always respond to our residents in a manner which makes each feel valued and respected as individuals. Residents ar8 joining us later in life with more complex needs and length of stays are reducing in part due to an increase in respite and convalescent visits. Looking to the future, research from the local authority tells us to expect the number of older people aged 65 and over in GIoUsterShIre to continue to rise at a faster pace than nationally, rising from 126.800 in 2015 to 206,300 by 2039. An estimated 25,400 older people have a long-term illness or disability that limi*s their day-to-day activities. The number is predicted to rise to 39,000 by 2030. An estimated 12,700 peop18 aged 65+ in Gloucestershire feel lonely always or often. The number of people living alone is estimated to increase by about a fifth. This means that more people are likely to need support: research shows that when people are isolated and lonely their wellbeing is affected and they are more likely to need health and social care services in the future. Our active liaison with local community groups and with Social Services has helped significantly in reducing those concems and has created better local understanding of our work. We are very grateful for the community support the Charity receives from local businesses, schools and organisations which enhances our residents, lives on a daily basis and will continue to develop these important relationships. The Board is developing a strategy for how the Charity can meet the changing needs of providing care.
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2024 FEEDBACK ON THE CARE WE PROVIDE We actively seek feedback on the services that we provide as an opportunity for learning The Charity estimates that ourwork touches the lives of approximately1,000 people every day in our County. be that residents, families. staff. doctors as well as many others. Feedback tells us how important our Charty is in the County and some of the most recent feedback from familias is heart-warming for our teams who work so hard to care for our residents and guests. Review of St Faith's from a daughter of a resident." The care is exceptional. Mum is treated with kindness. respect and patience. All staff: nurses, car8rs, cleaners - are experienced experts in their field. and every interaction is caring and courteous. We could not have wished for a better environment for Mum. Her room is fabulous, and wee been able to make it feel like home. They welcome us as a family, whether it's a flying visit or we stay with Mum for a few nights. Oh, and Mum loves the food! Thank you, St Faith's, for being awesome. Review of Falthfull House fmm a granddaughter of a resident.. My Nan has had a turbulent 12 months and in Faithfull House she has found a home. The building is large, with a number of communal areas in which to socialise or to read. Nan's room is spacious and she is allowed to bring whatever she would like into the room to make it hers. The busy carers take their time whenever they are with Nan and when my family and I visit we are always offered refreshments. We really do enjoy visiting and find relief in seeing Nan so well looked after by all the staff. I wouldn't hesitate to recommend the home and its caring staff. Review of Astell House from a daughter of a resident.. My Mother has now been in Astell House for six years. l am very happy to have found Astell House as it has provided a very good home for her since her dementia became bad enough for her not to be able to live at home. The carers {and other staff - admin, kitchen, domestic, grounds 8tc.) continue to be hugely caring and pleasant and do their best to make her time there enjoyable and safe. Many have also helped me deal with the different changes in my mother's condition as they happen. The current activities staff make a great deal of effort to involve residents in activities that they enjoy and provide a good range - Mum still enjoys anything that involves a good sing. Review of Royal Court from a partner of a resident.. My partner suffers from Huntingdon's Disease and we use Royal Court for respit8 services several times a year. The care they provide is second to none. They look after my partner in a caring and respectful way. listen carefully to her needs and requirements and have made it a place she is now happy to go when I need a break which is an absolute godsend. Royal Court provides interesting activities and exceptional food which is so important for people in care to keep them as healthy as they can be, I highly recommend them.
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2024 Revlew of Bay Tree Court from a daughter of a resident.. Mum spent her final six months of life at Bay Tree Court Residential Care Home. They were months filled with laughter and care. The care staff, cleaning staff and management all made this a good time for her and for me. Mum was made welcome right from the start, making the settling-in process an easy one. Mum's room was always clean and neat and the maintenance staff put up hooks for pictures etc. to make it just right for her arrival. When Mum was in her final days of life. the home could not have been more caring. They also looked after me as much as Mum while I spent that time by her bedside. Review of Resthaven fmm a daughter of a resident.. My mum was cared for here during the last period of her life. She was diagnosed with a life endlng cancer and I sought help from Resthaven for palliative care. From the moment we spoke to Resthaven all the team, from management through to all the care and support team, demonstrated kindness and compassion. Transfer was swiftly arranged from an OLJt of county hospital and, within days, she was transferred to her own room overlooking the orchard. She was happier than we had seen her in months. She died peacefully within the month. Often, when visiting, we would arrive and find one of the care team sitting with her, assuring her that she was not alone. With all her care needs met, we were able to maximise the time we had left with her. Thank you all for the care, respect and professionalism you showed to my mum. You are doing a wonderful job. Revlew of Secret Garden from a guest.. Being able to attend S&cret Garden Day Care is the highlight of my week. The staff are knowledgeable, helpful and only too pleased to assist in our well-being. The programme is varied to cater for all needs. The manager and the team of dedicated carers see that our needs are met. Secret Garden Day Care gives you a feeling of safety and belonging. My second home is an important part of my well-being and recovery. FINANCIAL REVIEW The market in the Care sector has been very tough since the end of Covid. There ar& many new entrants to the market and Care Homes being built, at pace and to a template to ensure running efficiency. The Charity's financial priority in FP2024 was to maintain our occupancy rates to allow for investment in the estate to facilitate improvements in the care we provide to our residents. Total income for the period was £19.65million (2022: £13.7million) wlth £18.9m (2022., £12.4m) of this relating to residentfees. This increased income in part due to the r8POrting period being a 15 month period and also due to the necessty to put our care fee rates up with spiralling food inftation and significant pressure on wages. Average occupancy for the year was 82.1°A (2022: 90.4/0) with market pressures and pensioner finances resulting in decisions to come into care often being delayed more than in the past. Closing occupancy in March 2024 was 81.30/0 (2022: 85.5 /0). Fees did increase in the period, although we managed to keep any increases below the underlying rate of inflation and well below the rate of increase in the National Minimum Wage. To underpin the Charity's core objectives, part of the strategy is to obtain income from other sources, in part to maintsin a competitive advantage but also to offset rising costs. 10
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2024 In FP2024 our day centres brought in £0.4m (2022: £0.4m), investment property and flats (inclusive of the Independent Living flats at Bay Tree Court) £0.6m {2022: £0,1 m). Direct charitable activities expenditure was £21.Omillion (2021: £11.gm). The majority of this increase, when adjusted for differing length periods. can be attributed to additlonal employment costs which stood at £14.5m {2022: £8.8m) for the period. This was driven by the National Minimum Wage increase in April and consequent increases to all staff already above that rate. Additionally, a reduction in the pool of employees in the market resulted in continuing use of agency staff, with costs of £1.9m (2022.. £1,7m) in the period, The Charity believes that its staff are its biggest asset and ensuring that the teams in the care homes are fully inducted, fully trained and are encouraged to develop and build a career in Lilian Faithfull is really important. Our staff retention rates have improved throughout FP2024 which has meant that our recruitment spend has been kept well under control. This means that we can maintain consistency in our dedicated teams of nurses, carers and other care home staff. Support costs reduced at the same level of the previous year at 9.1 % (2022: 9.50/0) of income as we continue to ensure the Charity is operated in the most efficient way possible. Overheads and support costs are regularly reviewed to ensure best value for money is obtained for the Charity. Where appropriate we will put suppllers out to tender if we believe that their costs have increased by too much or we believe that the service we are receiving is not of the required stsndard. Capital expenditure increased to £5.993k (2022: £862k). This was primarily due to the acquisition of Bay Tree Court to add to our estate. Bay Tree Court is a 59 bed care home located in the Prestbury area of Cheltenham. It has full residential facilities alongside assisted living accommodation and will ultimately allow Lilian Faithfull to offer our full rang8 of services to the local community. Financial assistanc8 to those residents funded by local authorities grew as the increase in local authority rates have not kept in line with the significant inflalionary cost increases as well other pressures in the market. Across the year financial assistance r8ached a maximum of £3.1 m (2022: £1.5m). This is the annualised average difference between the break-even cost of caring for a resident and the rate the local authority pays. The Charity's closlng cash balance was £O.Om (2022: £0.7m), a reduction of £0.7m, this was the result of the very difficult trading conditions throughout much of the period being reported. As a result of the difficult trading conditions. we failed to achieve our bank Govenants when they were tested at 31 December 2023 and 30 June 2024. Despite this, the bank has continued to be very supportive and is giving us the time and support we need to recover. As a result of the failure to meet the loan covenants, our bank loans are now presented as falling due within one year. The Charity's surplus before depreciation and bank interest wa5 £0.3million (2022: £1.3million) with the net deficit being £1.37m for the year (2022: surplus £461 k). Princlpal Fundlng Sources The Charity's principal source of funding is from residents, fees. That includes residents who are self-funding, residents paying a proportion of their care Costs as deemed by the local authority, residents fully funded by the local authority and residents funded by the 11
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2024 Cllnical Commissioning Group. The Charity also received donations from local businesses, famllies and charitable events. The Charity has received donations and other contributions to costs from various organlsations such as the RAF Benevolent Fund, Civil Service Benevolent Fund, the Royal Agricultural Benevolent Fund, and the StAndrews Society. The support from these organisatlons Is hugely appreciated by the Board of Trustees. Investment Pollcy During the year, the Charity maintained its financial investments under a portfolio managed externally. Within the yearthe fund management company changed name from Sanlam Wealth to atomos following an acquisition. In line with the investment policy, the primary objective is to preserve capital and generate prudent capital growth over the long term. During th8 y8ar the Finance Committee, with independent financial advice, conducted a review of the performance of the Charit5ls investment portfolio. The r&sult was a modest increase to the risk level of the portfolio which is being implemented during 2023. Towards the end of the perlod the investments were realised. and the cash used in the charity. As at the period-end, Ihese investments were valued at £259k (2022.. £598k), a drop of £339k, which was represented by an increase in value of £61 k and a withdrawal of £400k. Since the period-end we have sold the remainder of the investments and used th8 funds in the charity. Reserves Policy The Trustees have previously examined the Charity's requirements for reserves in light of the main risks to the organisation. Providing care and effective support when it is needed is core to our mission at Lilian Faithfull Care, and therefore the reserves policy we have set is intended to ensure we are able to deliver on our aim and objectives. The policy is intended to ensure our work is protected from the risk of disruption at short notice due to a lack of funds, whilst at the same time ensuring we do not ietain income for longer than required. The policy is that the unrestricted fvnds not assigned to tangible fixed assets and investment properties (assuming that loans part-fund those assets) held by the Charity should be sufficient to cover the essential operating costs of the Charity for a three-month period. The Trustees aim to set aside those reserves in order to protect the future operations of the Charity from the effects of any unforeseen variations in its income streams as part of a policy of good financial management pradice. During this financial period our level of reserves has fallen short of our policy objective. Total Charity Funds at 31 March 2024 were £9.4m (2022: £10.7m). Of those, Restricted Funds were £0.5m (2022: £0.5m) and Designated Funds were £O,Om (2022: £1.3m) leaving General Unrestricted funds at £8.9m (2022: £8.9m). Fixed assets and Investment properties amounted to £19.3m in total (2022: £14.Om). of which £9,9m is deemed to be funded by loans (2022: £3.9m), leaving negative reserves of £0.5m (2022: negative £1.2m) The reserves policy will be reviewed by the Finance Committee in the light of the Charity's new strategy and subsequently considered by the Board by the end of FY2025. 12
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2024 RISK MANAGEMENT Risk management should form an integral part of the Charity's decision-making and be incorporated within strategic and operational planning. The Risk Committee is to review the Risk Management Strategy and present to the Board for approval. The Risk Committee is to determine that there is a robust process in place for identifying, managing, and monitoring critical risks. oversee execution of that process; and ensure it is contlnuously improved as the business environment changes. The Risk Committee has prepared a comprehensive Risk Register which has been approved by the Board. The Risk Register is regularly reviewed by the Risk Committee and the Board. The Charity Trustees have given consideration to the major risks to which the charity is exposed and satisfied themselves that systems or procedures are established in order to manage those risks. STRUCTURE, GOVERNANCE AND MANAGEMENT Lilian Faithful Care was incorporated as a private company limited by guarantee under the Companies Act 1985 on 31 December 2007. The Company was also registered as a charity on 31 December 2007. The Company is govemed by its Memorandum and Articles of Association. In the event of the Company being wound up members are required to contribute an amount not exceeding £1. Following a change to the Memorandum and Articles of Association which were approved by the Charity Commission in January 2024, the members of the Charity are also the Trustees. Subsidiaries The Charity has a wholly-owned subsidiary, Lilian Faithfull Trading Limited, which is planning to contract with local authorities in respect of local authority-funded residents. Lilian Faithfull Homes Limited is a second wholly-owned subsidiary, which did not trade during the current or pr8c8ding financial year and is a domiant company. Governance The organisation follows the principles of the Charity Governance Code for larger charities, The organisation has a Govemance Manual setting out its governance arrangements. The Governance Manual was approved by the Board in January 2023 and is reviewed annually to ensure that it follows best practice and is up to date. The Manual is currently being reviewed by the G0Veman Committee to be presented to the Board in November 2024 for approval. The Governance Manual contains a Scheme of Delegated Authority (SODA) which sets out the matters reserved to the Board and those delegated to the Board Committees and the Executive Team. The SODA is reviewed annually as part of the Governan Manual. 13
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2024 Trustees and Chlef Executlve The Board of Trustees comprises up to twelve Trustees. At the beginning of 2023 there were eight Trustees. Following a recruitment process there We 12 Trustees appointed by June 2023. There was one resignation in March 2024 and a recruitment exercise is underway to appoint a replaMent. The Governance Committee agrees an intervlew panel for the appointrnent of Trustees which recommends appointments to the Board ensuring that the recruitment process is formal. fair, rigorous and transparent. All eliglbility checks are undertaken and an induction pack is provided to new Trustees. Trustees are not entitled to receive any payment for the time spent on Trustee duties. The Board has agr8ed an expenses policy for Trustees to reimburse reasonable out-of-pocket expenses properly incurred in the perfomiance of Trustee duties. The Board of Trustees appoints the Chief Executive upon the recommendation of the People Committee. The People Committee agrees an interview panel for the appointment of Chief Executive and recommends appointments to the Board ensuring that the recruitment process is formal, fair, rigorous and transparent. Martin Hughes, resigned and left the Charity in November 2022. Suzanne Booker was appointed Interim Chlef Executive with Kevin Snowball starting in April 2023. The People Committee consider a remuneration and beneffts framework (including pension arrangements) for the Chief Executive. The Board Chair and Vice Chair set the Chief Execulive's objectives and undertake the appraisal, the outcome of which is presented to the Board. Committees The Chair, with the People and Governan Committee. has undertaken a review of the Committee structure and terms of reference which have been approved by the Board of Trustees. The Board has established the following Committees, which act within their agreed terms of ref8renc8, are:_ Finance Commlttee is to oversee financial aspects of the Charity. In addition, this Committe8 undertook a risk function until a suitable Trustee had been recruit8d to b8 Chair of a separate Risk Committee and at that time the risk functions will be undertaken by the Risk Committee. Risk Committee is to oversee risk aspects of the organisation. Care Committee is to focus on care and the HR aspects of our homes. The Care Committee is responsible for safeguarding and reiVeS a comprehensive safeguarding report presented by the Director of Care with a root analysis and comm&nts. This provides the Committee with an opportunity to look in detail at this report and to challenge and interrogate. The minutes of the Care Committee together with Safeguarding R8POrt are presented to the Board to keep all Trustees infomied. Any concerns raised by the Committee are reported to the Board. 14
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2024 People and Governance Committee is to monitor g0Veman matters. This Commlttee is to have a broader consideration of HR I People aspects of the organisation which is not currently being looked at by other Committees. In February 2024 the Boad approved a proposal to split the People and Governance Committee into two separate Committees. This was due to the People Plan being developed and the ongoing need to monitor progress on this, the broad range of people topics and the level of their importance for the Charity together wlth the need to continue to improve the governance practices and documentation that had already begun, it is a better focus and more efficient to separate the two and create two Committees. Estates Committee is to oversee estates aspects of the organisation. Decisions The Board has ultimately responsibility for decisions taken by the organisation. Committees give detailed consideration on matters within their respective terms of reference and report to the Board of Trustees after each meeting. The Scheme of Delegated Authority sets out the matters delegated to each Committee. Fundraislng disclosures The Charity had no fundraising activities requiring disclosure under S1624 of the Charities Act2011. 15
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2024 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees (who are also directots of Lilian Faithfull Care for Ihe purposes of company lawl are responslble for praparing the Trustee's report and the financial statements in accordance wlth applicable law and United Kingdom Generally Accepted Accounting Prac11 (Uniled Kingdom Accounting Standards). Company law requlres the Trustees to prepare financial statements for each financlal year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and falr view of Ihe slat6 of affalrs of th8 Charitable Company and of the incoming resour$ and application of resources, Sncludlng the income and expenditure, of Ihe Charilable Company for that period. In preparing these financlal statements, the Trustees are required to: Select suitabl8 accountlng policies and then aPY them consistently. Observe the methods and principles in Ihe Charilies SORP. Mak8 judgm8nls and accounting estimates that are reasonable and pnjdenl,. Stale whether applicable UK Accounting Standards have been followed, subJ8ct to any materlal departures disclosed and explained in the financial statements- Prepare the financial stslemenls on the going concern basis unless it is inappropriate to presume that the Charitable Company will ntinue in operation. The Trustees are responsible for keeping adequate accounling records that are sufficient to show and explain th8 Charllab18 Company's transactions and disdose with reasonable accuracy al any time the financial posillon of the Charitable Company, enables them to ensure that Ihe financial statements comply wllh th6 Comp8nles Act 2006. They ar6 also responsibl6 for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irgUIantie$. DISCLOSURE OF INFORMATION TO AUDITORS Insofar as each of the Trustees of the Charrty at the date of approval of this report is aware there is no relevant audit information (information needed by Ihe Charily's auditor in connection with preparing th6 Audit report) of whlch th8 Charity's auditor is unaware. Each Trust8e has taken all of the steps Ihat h8lshe should have taken as a Trustee in order to make himselflherself aware of any relevant audit information and to establish that the Charity's aLKJitor is awarè of that informallon, The Truste8s' report comprrsing the Strategic Report and other information was approved by the Trustees on and signed on their behalf by.. By order of tho Board F Spencer Chair of Trustees Date 27 November 2024 16
LILIAN FAITHFULL CARE (Company Number: 06461263) FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2024 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS (contlnuod) Oplnlon We h8ve audlted the financial statements of Lilian Failhfull Care for Ihe period ended 31 March 2024 which comprise the statement of Financial Acllvitios, Balance Sheel. Cashflow Statement and the related notes. Th8 flnanclal roportlng framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, includlng Financial Reporting Standard 102 The Financial Reporting Standard applicabie in the UK and Republle of Ir8land (United Kingdom Generally Accepted Accounting Practice). Oplnlon on flnanclal statements In our oplnion the financial statements: glv6 a true and fair vtew of the state of the charily's affairs as at 31 March 2024 and of ils incoming resources and application of resources for the period then ended. have b88n prop&ty prepared in accordan wilh United Kingdom Generally Acc8Pt8d Accounting PractlC6', and have been prepared Sn accordan with the requirements of the Charities Act 2011. Basls for oplnlon We conduct8d our audit in accordance with Intemational Slandards on Auditing (UK) {ISAs (UKI) and applicable law. Our responsibilllles under those standard5 are further described in the Auditorfs responsibilities for the audit of the fSnancial slat8mentS $8Ction of our report. We are independent of the charity in accordance with the ethical requirements that are relevant lo our audlt of the financial statements in Ihe UK, includirtg the FRC'S Ethical Standard, and we have fulfllled our other ethical responsibililles In accordance with these requirements. We believe that the audit evldencg we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslong relating to going con¢èm We have nothlng to report in respect of th8 f(Alowing matters in relation to which the ISAS (UK) requiré us to r@port to you where.. the Irustees, ug8 of th& going concern basis of aCcting in the preparalton of the financial statements is not appropriale., or the Iruslees havè not dlsclosed in the financia ststements any Identifi material uncertainties that may cast significant doubt about Ihe charity's ability to continue to adopl Ihe going concern basis of accounting for a period of at least twelve rnonths from the date when the financial ststements ar8 gulhorised for Issue. other Information The other information comprises the information induded in the annual report. other than th6 financlal statement and our 8udilor's report thereon. The Iruslees are responsible for Ihe other intormation. The other information comprises th6 informatlon included in the annual report, other Ihan the financial statements and our auditor's report Iher8on. Our opinion on the financial statements does not cover the other information and. except to the extent otherwise explicitly staled in our repDrt, 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 inform8tion and, In doing so, consider whether the other information is materially inconsistent with Ihe financial statements or our knowledge obtained in the audit or otheNise appears to be materially misststed. If we identify such material inconsistencies or apparent mat8rial misstatements, we are required to detemiine whether there is a material misslat8menl in the financial slat8ments or a materi81 misstatement of the other infom)alion. If. based on the work w8 have performed, we conclude that there is a material misst8tement of Ihis other infonnation. we are required to report that fact. W8 have nothing to report in this regard. 17
LILIAN FAITHFULL CARE (Company Number: 06461263) FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2024 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS {¢ontlnu•d) Malters on whlch wa are r8qulred fo report by exception We have nothing to report In respect of the following matters where the Charities Act 2011 requires us to report to you if, in our oplnlon: the information given in the ffnancial statements is inconsistent in any materlal respect wllh th8 trustees. report., or sufficient accounling records have not been kept; or Ihe financial statements are not in agreement with the accounting records. or we have not recèived all the infomiation and explanalions we require for our audlt. Responsibilltles of trustees As explained more fully in the trustees, responsibilities statement. the trustees are responsible for th8 preparatlon of the ftnanclal stat8m8nls and for being satisfied that they give a Irue and fairview, and for such Internal control as the trustees determine is necessary lo enable the preparation of financial statements that are free from material misstat6m6nt, whether du810 fraud or error. Auditor's responslbilltles for tho audlt of the finan¢lal statements Our objectives are lo obtain reasonable assurance about whether the financlal statements as a whole are free from malerial misstatement, whether due to fraud or eor, and to issue an auditorfs report that includ8s our oplnlon. Raasonable assurance is a high level of assurance. bul is not a guarantee Ihat an audit conducted In accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or 6rror and are consld8r8d mat8rlal If, Individually or in the aggregate. they could reasonably be expected to Influence the economic decisions of users tak6n on thé basis of these financial statements. As part of an audit in accordance with ISAS (UK). we exercise professional judgment and maintain prof8ssion81 sceplicism Ihroughoul the audit. We also= Identify and assess the risks of mat&rial misstatement of the financial statements, whether due to fraud or érror, dgsign and perform audit procedures responsive to those risks, and obtaln audit evidence that 15 sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a mat&rial misstalem8nt resulting from fraud is higherthan forone resulting from 8rror, as fraud m8y involve collusion, forgery, intentional omissions. misrepresentalions, or Ihe override of internal control. Obtain an understanding of intemal control relevant to the audil in order to design audit procedur6S that are appropriate in the circumstances. but not for the purpose of expressing an opinion on the effectiveness of the charity's internal control. Evaluate the appropriateness of accounting policies used and the reasonablpnpss of accounting 6slimates and related disclosures made by the trustees Conclude on the appropriateness of the Imstees. use of the going concern basis of accounting and, based on the audlt evidence obtalned. whether a material uncertainty exists related to events or conditions that may cast slgnificanl doubt on the charily's ability lo conlinue as a going conc6rn. If w6 conclud8 that a material uncertainty exisls. we are required to draw attention in our auditor's report to the related dlsclosures In the financial statements OT. if such disclosures are inadequate, lo modify our opinion. Our conclusions are based on Ihe audit evldence obtained up lo the date of our auditor's report. How8V8r, future events or condilions may Cause Ihe charity to cease to continue as a going concern. Evaluate the overall presentation. struclure and content of Ihe financial slalemanls, Including th8 di8closures, and whether the financial statements represent the underlying transactions and events in a manner that achleves fair presentation. Obtain sufficient appropriate audit eviden regarding the fjnancial information of the entities or buslness activities within the chartty lo express an opinion on the financial slalements. W8 are responsible for the direction, supervision and performance of Ihe charity's audit. We remain solely responsible for our audit opinion. We communicate with those charged wilh govemance regarding. among other matteTS, the planned scope and liming of thè audlt and signlficant audil h'ndings. including any significant deficiencies in internal control that w8 Id8nlify during our audit. 18
LILIAN FAITHFULL CARE (Company Number: 06461263) FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2024 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS (conllnued) Extent to whlch the audit was consldered Capable of detecting iThegularlt10s, Includlng fraud Owlng lo Ihe inherent limit81ions of an audit. Ihere is an unavoidable risk that malerial misstatem6nts In the financial statements may not be detected. even Ihough the audit is properly planned and performed In accordance with the ISA'S IUKI. In identifying and assesslng risks of material mis-stalement in respect of fraud. irtluding irregularltSes and non-¢ornpli8nce wllh laws and regulations, our procedures induded the following= W8 oblalned an underslanding of the legal and regulatory frameworks appllcable to the comp8ny financial statements or that had a fundamental effect on the company's operalions. We delermlned that the most significant laws and regulations induded UK GAAP, UK Companies Act 2006 and taxation laws. We understood how the company is complying wilh those legal and regulatory frameworks by maklng Inquirles of management, those responsible for legal and compliance procedures. We 8SS8ssed the susceptibility of the company's financial statements to material misstatement, includlng how fraud might occur. Audit procedures perfomied by the engagement team included: Idenlifylng and assessiThJ the design effectiveness of controls managemenl has in place to prevent and detect fraud., Understandlng how those charged with govemance considered and addressed the potent181 for overrlde of controls or other inappropriate Influen over Ihe financial reporting process. Detailed analysls ofjournals posted through the accounting system during the period to 31 March 2024 has been undertaken., Understandlng the controls in place to prevent and detect fraud. Rellance was not placed on controls for tho entlr8ty of the audit, instead taking a substsntive testing approach. however controls w8r8 In place to prevent fraud, and they appeared to be working effectively. Challenging assumptions and judgements made by management In its slgnificant accounting estlmatos. Use of our report This raport is made solely to the charivs trustees, as a body, in accordance with the Charit18s Act 2011. Our audit work has been undertaken so that we might state to the trustees those malters we are required to slate to them in an audllors, report and for no other purpose. To the fullest extenl permitted by law. do not accept or assume responsibility to anyone other than th8 charity and the chariVs trustees as a body, for our audil work, for this report, or for the oplnlons we have formed. Martin Howar IS8nior Slatulory Auditor) For and on behalf of Hazl8woods LLP. Ststtjtory Auditor Windsor House Bayshill Road Cheltenham GL50 3AT 2 December 2024 D8te'. 19
LILIAN FAITHFULL CARE STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31 MARCH 2024 Unrestrlctod funds Restricted funds Total funds 15 months to 31 March 2024 Note INCOME Income from: Donatlons and legacles Charitable activities Investments Othèr incom8 48,120 18.909.479 572.647 93.918 30,174 78,294 18,909,479 572,647 93,918 Total Income 19,624,164 30,174 19,654,338 Expendlture on: R815ing funds.. Investm8nt manag8rfs f88S Charitable 8clivities 9,599 21.048.069 9,599 21,048,069 Total expenditure 21.057.668 21,057,668 Net gainslllossesl on inveslments 61.934 61,934 Transfer between funds 60.000 (60,000) Net movement In funds (1,311,570) 129,8281 11,341,396} Reconciliation in funds Total funds brought forward 10.193,661 533,969 10,727,630 Net movement in funds (q.311,570) (29,826) 11,341,396) Total funds carrled forward 8.882,091 504,143 9,386,234 The notes on pages 24 to 37 fomi part of these financial statemonts. 20
LILIAN FAITHFULL CARE STATEMENT OF FINANCIAL ACTMTIES FOR THE PERIOD ENDED 31 MARCH 2Q24 Unrestricted funds Restrl¢ted funds Total funds Year ended 31 D8cambor 2022 Note INCOME Incom8 from: Donallons and legacies Charitable activilles Investments Olhgr Income 51,412 12.749.979 126,539 23.341 871,515 922,927 12,749,979 126,539 23,341 Total Income 12.951,271 871,515 13,822,786 Expondlture on: Raising funds.. Investmént manager's fees Charitable activities 5.707 12.950.596 5,707 13,288,142 337,546 Total expenditure 12.956.303 337,546 13,293,849 Net Ilossèsllgalns on investments (67.657) 167,657) Net movement In fund5 (72,689) 533,969 461,280 Reconcillatlon In funds Total funds brought forward Nel movemgnl In funds 10,266,350 (72,689) 10,266,350 461,280 533,969 Total funds carrlad forward 10,193,661 533,969 10,727,630 The notes on pages 24 10 37 form parl ofthese financFal statements. 21
LILIAN FAITHFULL CARE BALANCE SHEET (Company Number: 06461263) AS AT 31 MARCH 2024 Note 2024 2022 FIXED ASSETS Tangible assets Snveslments Investment property 11 13 12 17,400,493 259,643 1,932,388 12,402,053 597,987 1,599,271 Total fixed assets 19,592,524 14,599,311 CURRENT ASSETS Debtors Cash at bank and In hand 14 1.614,726 12,767 740,886 633,063 1,627.493 1,373,949 CREDITORS Amounts falling due within one year 15 (11,833,783) {2,125,3331 NET CURRENT (LIABILITIES) IASSErs 10,206,290 1751,3841 TOTAL ASSETS LESS CURRENT LIABIUTIES 9.386,234 13,847,927 CREDITORS Amounts falling du6 after more than one year 16 {3,120,2971 TOTAL NET ASSETS 9,386,234 10,727,630 CHARITY FUNDS Restricted funds Unr6slricted funds 19 18 504,143 8.882,091 533,969 10,193,661 Total funds 9,386,234 10,727,630 Appr y Ihe Board for issue on . Fsp ncer- Trusteè The nolès on pages 24 to 37 forni part of these financial ststemenls. 22
LILIAN FAITHFULL CARE CASH FLOW STATEMENT FOR THE PERIOD ENDED 31 IIIARCH 2024 2024 2022 Note Cash used in operatlng actlvltles Net cash provlded by operating aclivlties 21 (358.836) 1,666,003 Cash flows from Investing activities Dividends, intèrests and rents from inveslments Purchase of tangible fixed assets Proceeds from sale of tangible flxed assets Proceeds from sale of investments Purchas8 of Investments Investment property addltions Wilhdr8wal of Inv8stm8nt 572,647 (5.993.931) 32.504 829,021 (9.409) (1.385,366) 565,819 126,539 (1,880,139) 14,464 412,246 (419,6041 (36) Cash used In Investing activities (5.388.715) {1,746,530> Cash flows from flnanclng activitie5 Advance of bank loan Bank interest paid Repayments of borrowings 6,475.000 (728,421) (474.357) (116,163} (244,028) Net cash provlded by l (used in) In financlng activities 5.272,222 (360,191) Change in cash and cash equivalents in the year 1475.329) (440,7181 Cash and c88h equivalents brought forward 651,405 1,092,123 Total cash and cash equlval&Thts carried forward 22 176.076 651,405 The notes on pages 24 to 37 fomi part of these fjnancial stst6monts. 23
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2024 ACCOUNTING POLICIES The flnanclal statements have been prepared under the historical Cost convention, as modified by the revaluatlon of certaln fixed assets. adopting the following principal accounting policies all of which are in accordance with Accounting and Reporting by Charities: Slatement of Recommended Practice Accountlng and Reportlng by Charities (SORP FRS1021 issued in July 2014 and The Companies Act 2006. The financial statements arè presènted in Pounds Slerling. Company status The Charlty Is Ilmited by guarantee and has no share capltal. The Ilabillty of each member in the event of winding up Is limited to £1. The company is subject to Ihe requirements of the Companies Act 2006 with regards lo the form and content of the financial stslemenls. The Ch8ri1y Is 8 private company. limited by guarantee (company no. 06461263 England and Wales) wilhoul share capital, and registered with the Charlty Commission (registered number 1122183 In England and Wales), The address of Ils reglstered office Is: Ground Floor West Festival House Jessop Avenu8 Cheltenham Gloucestershire GL50 3SH This is also the regislared address of its subsidiaries Lilian Faithfull Trading Limited and Lilian Faithfull Homes Limited. Consolldated flnanclal stat•ments The financial statèments do not include the consolidaled finan¢ial resulls of Ihe Charity and ils subsidiary companies, Lilian Faithfull Trading Limiled and Lilian Faithfull Homes Limited. th6 grounds that th& subsidiary company's r8sults are immaterial to the group. Going concern Th8 Trustees have a rgasonable expectation that the Charity has adequate resources to continue in operatlonal existence for the foreseeable future. For long term finance the charity relies on bank loans, as dlsclosed In notes to the financial slalemenls. In assessing going conrn the Trustees have assumed that these bank loans will not be r8paid for the foreseoable future (in line with the signed bank loan agTeemenll and are not aware of any circumstances that may adversely affect Ihe renewal of Ihese facilities. In preparing the flnanclal slat8menls, tho Trustees have considered the polenlial impact of the ongoing Covid-19 pandemic on the golng concern status of the Charlty and have det8rmined the impact on current and future perforrnance of the Cherity is minimal. The factors considered by the Tnjslees are documenled in more detail wilhin the Trustees report. The Trustees consider that there 8re no material uncertainlies over the Charit$ financial viability and, accordingly, continue to adopl Ihs going concern basis of accounting in preparing the annual financial sta18ments. Fund accounting Funds held by the charity ar8 either.. Unrestricted geneT81 funds, which are available for use at the discretion of the Trust88s In furtherance of the general objectives of the Charity and which have not b88n designated for other purposes" or Unr8slrlctad designated funds. that have been set aside by the Trustees for particular purpos9s. The aim and use of 8a¢h designated fund are sel out in the notes lo the financlal statements: or Reslricled funds. which are donalions or legacies received where the donor has spgcified use solély for particular areas of Ihe Charity's work or for specific projects undertaken. The speclflc restrlction on Oach fund is sel otrt in the financial statements. 24
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS (¢ontlnued) FOR THE PERIOD ENDED 31 MARCH 2024 ACCOUNTING POLICIES (contlnuèd) Incomlng resources Investment Incom61s recognised vthen received, or rf declared and receivable. For legacles, enlltlement is taken as the earlier of the date on whith eilher.. the Charity is awar6 that probate has been granted, the estate has been finalised and notification has been made by the executorls) lo the Trust that a distribution wlll be made, or when a dislribulion is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amounl can be measured rellably, and the Charity has been notlfied of the executovs intention to make a distribulion. Where legacies have been notified to the Charity, or the Charity is aware of the granting of probate. and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. Income from charitable acliv5tles indudes home income recognised as eamed (as the related goods or servlc8s are provided> under contracL Rental income is included in the year in which it is receivable. Rent re1vable from the investment property Is classified as investment income. Resources axpended Expenditure is accounted for as charilable a¢tivilies being the provislon of care. Within provision of care, costs are allocat6d b8tween direcl provision of caro costs and support costs. The Irrecov8rable element of Value Added Tax Is Included with the item of expense to which it relates. Depreciation Is allocated to expenditure headings on the basls of tha use of the assets concerned. Governance costs include cost of constitutional and statutory requiremenls, cost of Trustee meetings and the cost of any18gal advice to the Trustees on governare orconstituiional maiters and are included wlthln support costs. Support costs includ& central funclions and have been allocated to activty cost categories on a basis consistent with the use of resources, for example. allocating property costs by floor areas or per capita, staff cosls by the lime spent and other costs by their usage. Costs of raising funds are costs payable to Ihird pariy investment managers that manage the Charity's Investment portfolio. Government grants Grants from governm8nt bodies are reviewed forspecific proiectslcosts and are reeognlsed In accordance with Ihelr Individual terms and conditions. Income is recognised when the Charity has entitlement to the funds whlch is when any performance conditions atlached are met. it is probable that the income will be received, and th8 amount can b6 reliably measured. Grant income will be deferred if received in advance of meeting performance condilions or if the funder specifically slates Ihat the income must be spent in a future accounting p8rlod. Taxation The Company is an Exempt Charity within the meaning of Schedule 2 ofthe Chari1185 Act 1993 and as such is a charity within the meaning of Section 519 of the Income Tax Act 2007 (formerly Section 506{11 of Ihe Taxes Acl 19881. Accordingly, tha company is potentially exempt from taxalion in respect of incom8 or capital gains received within Categories covered by Section 524 of the Income Tax Act 2007 Ifomiedy Section 505 of th8 Taxes Act 19881 or Section 256 of Ihe Taxation of Chargeable Gains Tax 199210 the extent that such income or gains are applied to exclusively charitable purposes. 25
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2024 ACCOUNTING POLICIES (contlnued) Tanglble flxed assets and depreclatlon All assets costing more than £1.000 are capilalised. Ongoing projects may have additional costs below this value however they are capitalised as the overall cost of the project is over £1.0. Tanglble flxed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of the flxed assets. less their estimated residual value. over their expected useful lives the following bases.. Freehold land Freehold buildings Leasehold improvements Flxtures and equipment Motor vehicl8S 2- 5°A of cost per annum In line wilh the underlying lease 20% of cost per annum 20 /0 of cost per annum Invostments Fixed asset investments are induded al market value at the Balance Sheet Date. Galns and losses repres8nt the movement in market values during the year and are credll8d of charged to the Statement of Financial Activities. Unlisted investments are shown at cost unless there is a permanent diminution in value. Investment Property Inveslm8nt properties are stated at freehold markel value in the Balance Sheet al Ihe reporting date. An independent professional third-party valuation is carried out at least every five years and prepared on an informal basis in th6 intervening period. Gains or losses are taken tr) Ihe Siatement of Financial Aclivllies. No d8pr8ciation is charged on investment properties. Operating leases Rentals applicable to operating leases where substanlially all of the benefits and risk of ownership remain with the lessor are charged to the Statement of Financial Activities on a straight4ine basls over the lease temi. Cash and cash equlvalents Cash and cash equivalents comprlse cash in hand and deposits with finandal institutlons. Debtors Trad8, olh8r d8btors and acuued income are recognised at the selllement amount due, and prepaym8nts are valued al th8 amount prepaid. Credltors Creditors are r6cognised where the Charity has a present obligation resulting from a past ev6nt that will probably result in the transfer of funds to a third party and the amount due to sell18 th6 obligation can be m8asured or estimated reliably. Trade creditors, taxalion and social security, wages and salaries, Other creditors and accruals are recognised at their settlement amounL Bank loans are recognised at amortised cost using the effectlv6 Inl8rest method. Financial instruments The Chgrily only has financial assets and financial liabilities of a kind that qualify as basic fin8ncial instruments, these being cash at bank. debtors. creditors and loans. All investments held by Ihe Charity also quallfy as baslc flnancial Instruments. Pènsion costs The Charity oper8tes a defined conlribulton pension scheme. and Ihe pension charge represents the amount payable by the Charity to the fund in respect of the year. 26
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2024 ACCOUNTING POLICIES (continued) Redundancy cost$ Redundancy costs arising from peri(*Jic reviews of siaff levels are charged to the Statement of Flnanclal Activities in the year in which the Charity is demonstrably commilled lo employees leaving the Charity. Critical accountlng estlmates and areas of Judgement Preparation of the financial statements requires management to consider making signlflcanl judgements and estimates where necess8ry. The areas in which stgnificant judgements and estimatlDnS hav8 been made comprise of depreciation and the recoverability of debtors. and investment property valuation. Useful economic lives of fangible fixed assets The annual deprecialion charge for tangible fixed assets is sensilive to changes In th8 estimated useful 6conomic lives and residual values of the assets. The useful economic lives and residual values are amended when n8e8ssary to reflect current eslimates and the physical condition of the assets. S68 Note 11 for the carrying amount of the tangible fixed assets and above for the useful lives of each class of asset. Impalment of debtors The Charlty makes an estimate of trade deblors and other debtors. When assessing th8 Impairmenl of trade debtors and other debtors, management considers factors induding the current credit rating of the d8blor, the ageing profile of debtors and hlslorical experience. Investment property valuation The Charity will periodically engage third party experts to provide. and independent valuation of the investment properties held. INCOME FROM DONATIONS AND LEGACIES Unrestricted funds Restricted funds Total Total funds funds 15 months to 12 months to 31 March 31 December 2024 2022 Donatlons General donatlons Governm6nt grants 48,120 30,174 78,294 615,693 307,234 Total 2024 48.120 30,174 78,294 922,927 There has been no income received from government grants in Uie current year, In the prior year, £148,326 of Infection Control Grant and £158.908 related to Ihe workfo Retention and Recruilmont Fund were received. The majority of ganeral donalions in the prior year related to assets received on the m8rg@r of the charity with Calharine Ball Almshouses. This non-recuTring, and amounts received this year are general donallons. A small number of donations were received in the period to 31 March 2024 which are restricted due lo thern bging gifted for specific projectslilems. 27
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2024 PROVISION OF CARE 15 months to 12 months to 31 March 31 December 2024 2022 R6sldenls' fe8S Contrlbullons to runnlng costs Charity shop income 18,865,153 15,616 28,710 12,715,196 11,248 23,535 18,909,479 12,749,979 Provision of care was unrestricted during thts and the prior year. INVESTMENT INCOME 15 months to 12 months to 31 March 31 Decembar 2024 2022 Rental Income Income from listed Investments Inleresl receivable 571,146 1,501 112,186 13,893 460 572.647 126,539 OTHER INCOME The analysis of the Charity's other inciThe for the year is as follows: 15 months to 12 months to 31 March 31 December 2024 2022 Voluntary incom6, Other in(a)m&. glft ald 93,918 23,341 93,918 23,341 ANALYSIS OF EXPENDITURE BY ACTIVITY Activitles undertaken dlrectly 2024 Support 15 months to 12 months to costs 31 March 31 Decembor 2024 2024 2022 Care costs Welfare Premisés Support costs 9,366,798 6,103.662 3,137.802 9.366,798 6.103,662 3,137,802 2,449,406 6,186,919 3,830,858 1,975,967 1,300,105 2.449.406 Total 18,608.262 2,449,406 21.057,668 13,293,849 28
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2024 Analysls of direct costs Care Costs 2024 Welfare 2024 Preml$es 15 months to 12 months to 2024 31 March 31 December 2024 2022 staff costs Depreciatlon Contract catering Establishment cosls Repairs and maintenance Advertlsing Office expenses Subscrlpiions and publicatlons Equipment hire R8sldenls' welfare and acllvilies Cleaning, medlcal costs. unlforms Motor expens8S Olher employment costs Irrecoverable VAT Agency cost5 Managament charge 8.152,138 3,488.237 204.355 865.958 11.844,730 865,958 770,231 1,088,276 979,213 84,600 315,061 7,035,793 630,398 530,893 538,430 664,944 53,726 121,765 770.231 1,088.276 979.213 84,600 315.061 34.549 27.841 34,549 27,841 23,353 20,037 107.499 107,499 62,289 173.318 50,028 391,497 369.251 291,550 173,318 50,028 391,497 369,251 1,506,210 117,419 28.013 241,51Q 55,296 1,869,878 13,118 1.214.660 Total 9,366,798 6,103.662 3,137.802 18.608,262 12,006,862 Analysis of support costs Care ¢osts 15 months to 12 months to 2024 31 MarGh 31 December 2024 2022 Staff costs Printing, postage and stationery Legal and professional costs Bank charges & interesl Gov6rnance costs Depreciation Bad d8bl provisions 1,218,558 35,494 198.962 773.091 15.202 97.029 111.070 1.218,558 35,494 198,962 773,091 15,202 97,029 111,070 918,455 31,865 109,871 129,054 15,360 82,382 2.449.4Q6 2.449,406 1,286,987 Governance costs comprise auditorfs remuneration of £15.030 (2022 - £15.360) and Trustees, expens85 of £172 (2022 - £Nil). TAXATION The company Is a registered charfty and is Iherefore entitled to tsx exemptions on all its Sncome and gains, properly applied for its charitable purposes. 29
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS (contlnued) FOR THE PERIOD ENDED 31 MARCH 2024 AUDITOR'S REMUNERATION 15 months to 12 months to 31 March 31 Decémber 2024 2022 Fees payable to the Company's auditor for Ihe audit of the Company's Annual accounts 15,900 15,600 Fees payable lo the Companys auditor in respect of". All non-audlt seNices not included above 3,300 3,120 19,200 18,720 15 months to 12 months to 31 March 31 December 2024 2022 EMPLOYMENT COSTS Wages and salaries Social security costs Conlributlon to d8fin8d contribution pension schemes 11,932,425 831,781 232,764 7,248,746 560,424 145,078 12,996,970 7,954,248 During the year, O12022- 2) Redundancy and Tenination payments (including salary, notice and accrued holiday payl were made. tolalling £nil (2022 - £15,350}. The average number of rson$ employed by ihe Company during the year as follows: 2024 2022 Head count 430 388 The number of employees wse employee benefits exceeded £60.000 was". 2024 2022 £60,001- £70,000 £70,001- £80,000 £80,001- £90,000 £90,001- £100,000 £100,001- £110,000 Th8 k@y manag8ment personn&l (other Ihan the Trustees who are not remunerated) of Ihe Charity are th8 Chi8f Executive Officer, the Director of Care. Director of Human Resources and the Director of Finance. The remunerallon for 1$ team totals £351.902 {2022- £277.126). This includes gross salary. beneflls and employer's pension contributions. 30
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERSOD ENDED 31 MARCH 2024 10 TRUSTEE'S REMUNERATION AND EXPENSES During the year, no Trustees recoived any remuneratton or other benefits (2022- £Nil). Durlng th8 year end8d 31 March 2024, expenses totalling £172 were reimbursed or pald directly (2022 - £Nill. 11 TANGIBLE FIXED ASSETS Freehold Property Leasehold Improvements Motor Vehicles Flxtur8S and Equipment Total Cost or valuatlon At 1 January 2023 Additions Dlsposals 12,312,450 5,432.423 33.301 25.010 205,781 4,641,385 544,008 17,184,626 5,993,930 21,008 At 31 March 2024 17.711,572 4.002 223,281 5,185,393 23,124,247 Depreclation At 1 January 2023 Charge for the year Eliminat8d on dlsposal 1.214.356 326.656 6,791 7,925 10,358 15.014 161.195 20.443 3,399,097 605,530 4,782,573 962,987 Al 31 March 2024 1.534.221 3.269 181.638 4,004,627 5,723,755 Not book value At 31 March 2024 At 310ecember 2022 16,177,351 11,098,094 733 17.085 41,643 44,586 1,180,766 1,242,288 17 400,493 12,402,053 12 INVESTMENT PROPERTY Freehold Investment Property Valuatlon At 1 January 2023 Additions Disposals 1,599,271 1,385,366 11,052,249} At 31 March 2024 1,932,388 The Trustees hav8 r8viewed Ihe value of the investment properties and (x)nsider that costs represent the fair value 8131 March 2024. The inveslment properties are valued by an independent, third party valu6r on a quinqu8nnlal basis. Royal Gard6n Flats Was last valued based on an adjusted net rental inwme capitalisation approach on 11 January 2021 by Philip J Pratt Bsc MRICS of Alder King LLP. As he is a related party, tho Trustees of the Finance Committee have approved the valual¢on on behalf of the Board. Durlng the year, Trgdwells Courl was sokl for £829.021. resulting in a loss on disposal of £223,227. 31
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS (contlnued) FOR THE PERIOD ENDED 31 MARCH 2024 13 FIXED ASSET INVESTMENTS Investments Subsldlary Llstod company Investments Total Cost or valuation At 1 January 2023 Addillons Disposals Revaluations Movgm8nt an cash held for reinveslment 100 597,887 9,409 (400,0001 52,247 597,987 9,409 {400,000) 52,247 At 31 March 2024 100 259,543 259,643 At year end cash held by the Investment managers totslled £163.309 {2022- £17,158). Lilian Fallhfull Tradlng Limited is a wholly owned subsldiary of the Charity and managas the Local Authority care conlracls. Lilian Faithfull Trading Limited made neither profit nor loss and as at 31 March 2024, th8 entity had total net assets of £3,359 (2022 - £1,029). Lilian Faithfull Homes Limited is a second wholly owned subsidiary. Lilian Failhfull Homes Limited did not trade during the current or precgding financial year and is a dorvnant company. Both entities have the same regISted office as Lilian Failhfull Care. 14 DEBTORS 2024 2022 Trade dèbtors Other debtors Pr8payments and accrued income Amounts owed by group undertakings 254,007 25,220 1.213,342 122,157 458,403 2,636 169,483 110,364 1.614,726 740,886 Prepayments and accrued income included £829.021 (2022- £nil) Èn respect of accrued income on th8 sale of Tredw6115 Court. This was received in April 2024. 15 CREDITORS- amounts falllng due wlthln one year 2024 2022 Bank108ns Bank overdraft Trade creditors oth8r taxation and social security other creditors Accruals and deferred income 9.902,991 20.157 686,346 344,504 727,530 152,255 782,051 39LI,820 289,464 554,537 lQ8,461 11.833,783 2,125,333 32
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS (contlnued) FOR THE PERIOD ENDED 31 MARCH 2024 16 CREDITORS- amounts falllng due after more than one year 2024 2022 Bank loans 3,120,297 Included within th6 above are amounts falling due as follows: 2024 2022 Between one and two yèars Bank loans 232,395 Between two and flve years Bank loans 2,887,902 Over flvo years Bank loans As at 31 March 2024, ffte chariiy had not passed financial covenants, and therefore the loans fell due for repayment within one year, as no waiver had been received by the bank pre year end. Th8re are no indlcalions that Ihg bank will look lo recover its MTreS imminenuy however. The first loan is secured ty legal charge over both Royal Court. Fiddlerfs Green, Cheltenham, Gloucestershire and St Faith's Nursing Home, Mafvem Road, Cheltenham. Gloucestershire, and bears a margin rate of 1.580/0 over bas8 rate. The second loan ts secured by means of a legal charge over R&slhaven Nursing Home. Pitchcombe, Stroud, Gloucestershire, and bears a margin rale of 1.95Yo over base ratè. The thlrd loan has no addllional s8curities to those already listed and bears 8 margin Tate of 1.7°fi over base rate. For the two new loans taken out within the 2024 period. these have interest rates of 1.7% over Margin and 6.95 /0 r&sp6clively, and are secured ovor Bay Tree Court. 17 FINANCIAL INSTRUMENTS 2024 2022 Financlal assets Financial ass8tS rn6asured al fair value through income and exp8nditur@ 227,869 597,887 Finan¢Sal assets measured at falr Yalu& through income and expenditure comprtse listed investments. All other finanoi81 ass8ls and Ilabilities are measured at amortised cosl. 33
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS (conllnued) FOR THE PERIOD ENDED 31 MARCH 2024 18 FUNDS At1 January 2023 Incoming resources Outgoing resources Transfers Galns I (losses) At31 March 2024 Deslgnat8d funds Emergency Maintenance Fund Assist8d Places Fund 750,000 (750.(K)O) 500,000 (5(M),000) 1,250,000 (1,250.000) General funds Free Reserves {1,155,315) Tangibl8 fixed 8,499,705 assets Inv8stmenl propety Merger reserve 19.624.164 (21.057,668} 1,979,086 (1,002.203) 61,934 1547,799} 7,497,502 1,599,271 333,117 1,932,388 8,943,661 19.624.164 (21,057.668) 1.310.000 61,934 8,882,091 Total unrestricted funds 10,193,661 19.624.164 {21,057,668) 60,000 61,934 8,882,091 The £60,000 transfer abov8 represents a transfer from restricted funds. as explained further in note 19. 34
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS (contlnued) FOR THE PERIOD ENDED 31 MARCH 2024 19 RESTRICTED FUNDS At 1 January 2023 At 31 March 2024 Incoming resources Outgolng resources Transfer in the yèar Donations 533.969 30,174 (60,000) 504,143 533,969 30,174 (60,000) 504,143 Restrlcted Funds Donatlons Donalions brought forward relate to assets acquired when Lilian Failhfull Care m8rged wlth Catharine Ball Almshouse. A small number of donations were received in the period to 31 March 2024 which are restrlct6d du8 to them being gifted for specific projectslitems. During the year. £60.000 was spent on two of the flats using these r8slrlcled donations. and a transfer with unrestricted fijnds Occurr1. 20 ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestrlcted Funds 2024 Restricted Funds 2024 Total Funds 2024 Total Funds 2022 Tangible fixed assets Fixed 8Sset investments Investment property Current assets Creditors due wlthin one year Creditors due in rnore than on8 year Transfers in the year 16,866.524 259,643 1,932.388 1.597.320 (11.833,784) 533.969 17.400,493 259,643 1.932,388 1,627,494 (11,833,784) 12,402,053 597,987 1,599,271 1,373,949 {2,125,333) 13,120,297) 30.174 60,000 (60.000) Total 8.882,091 504.143 9,386,234 10,727,630 35
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS (contlnued) FOR THE PERIOD ENDED 31 MARCH 2024 21 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2022 Net income for the period (1,341,396) 461,280 Adjustments for: Depreciation charg6S Lossesllgains) on inv6stments Financ8 costs Loss on disposal of tangible fixed assets Dlvldends, interests and rents from iF)vestments Non cash income r8ceived Ilncreaselldecrease in debtors Increas81{decrease) in creditors 962,987 (61,934) 762,828 208,243 (572,6471 712,780 67,657 123,446 536 1126,539) 500,000 (114,858} 41,701 (873,840) 556,923 Net cash (absorbed by) I provided by operatlng activities (358,836) 1,666,003 22 ANALYSIS OF CASH AND CASH EQUIVALENTS 2024 2022 Cash in hand Cash held for r8inv8stm8nt 12,767 163,309 633,Q63 18,342 Total cash and cash equSvalent5 176,076 651,405 23 ANALYSIS OF CHANGES IN NET DEBT At 1 January 2023 Cash flows Non cash movements At 31 March 2024 Cash al bank and in hand D8bt due within 1 year Debt due after 1 year 651.405 (782.051) (3.120,297) (475.329) (5,955,007) {3,165,9331 3.120,297 176,076 19,902,991) (3.250.943) (6.430.336} (45,636) (9,726,915) 24 PENSION COMMITMENTS The Charlly operates a definèd contribution pension scheme. The pension cost charg$ for the period represents Gontribulions payable by the Charily to the scheme and amounted to £232,764 (2022 - £145,078). At th8 ond of the period outstanding contributions amounted to £34.698 {2022 - £NII}. All pen8ion charges are charged lo unreslricled funds, in line with the fund out of which the wages and salaries are paid. 36
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE PERIOD ENDED 31 MARCH 2024 25 OPERATING LEASE COMMrrMENTS At 31 March 2024 the Charity had commilmenls lo make future minimum lease payments under non- cancellable operating lèases as follows: 2024 2022 Land and bulldlngs Within 1 year B8twe8n 1 and 5 years Afl8r more than 5 years 75,210 6,729 68,964 95,775 27,293 108,268 Total 150,903 231,336 Plant and machinery Within 1 year B8tWg&n 1 and 5 years Aft&r more than 5 years 112,542 370,219 145,399 112.542 403.535 252,684 Total 628,160 768,761 26 RELATED PARTY TRANSACTIONS At 31 March 2024 the Charitywas owed £122,157 {2022- £110.363) by Lilian Faithfull Trading Limited, its subsidiary undertaking. The loan is inlerest free aTKI has no fixed repayment temts. 37