OpenCharities

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

2022-10-31-accounts

T the Registered Charity No 1123540 Company No 6533385 A Limited Company Registered in England and Wales

The Hospital of God at Greatham

Trustees’ Annual Report and Accounts for the year ended 31 October 2022

1 | P a g e

Contents

Introduction Introduction Page
o Message from the chair 3
o Message from the director 5
o Organisational details 7
Trustees’ Annual Report (including the Strategic Report)
o About the charity
−
Our charitable objectives		 8
−
Our vision, mission, and values		 8
−
What we do		 8
o Our impact
−
What we delivered and achieved during the year		 9
−
Making a difference		 11
−
Our services		 12
−
Our plans for the future		 29
o Financial review of the year
−
Summary		 31
−
Results from charitable activities		 31
−
Results from investment activities		 32
−
Financial position		 33
o Structure, governance and management
−
Formation, legal structure and objectives		 35
−
Governing body and governance		 36
−
Statement of public benefit		 37
−
Risk management and principal risks		 38
−
Statement of trustees’ responsibilities		 41
−
Statement of disclosure to auditors		 41
Independent Auditor’s Report 42
Financial Statements
o Statement of financial activities 46
o Statement of financial position 47
o Statement of cash flows 48
o Notes to the financial statements 50

2 | P a g e

Introduction

Message from the Chair - Lois Neal

Welcome to our report for the year November 2021 to October 2022.

This year began for our charity with the difficult decision to close Gretton Court Dementia Nursing care home. Over recent years the challenges of delivering quality dementia nursing care had increased beyond that which we felt we were able to accommodate going forward. While we worked closely with and were supported by the local authority and health partners throughout the pandemic we began to question whether or not we could continue to provide nursing care at Gretton Court. The key issues we faced were difficulties in recruiting registered nursing staff, a reliance on agency staff, the ongoing challenge of meeting increasing needs of residents and maintaining patient centred care in a building designed for the late 20[th] Century. The COVID-19 pandemic brought all of these issues into sharp focus.

Closure was difficult news for the residents and their families, but between January and March 2022 there was successful careful transfer of residents to alternative accommodation, redirection of those staff who wished to remain employees and formal closure of the home. Throughout this period the commitment of our staff in the home towards residents and their families was exemplary and clearly demonstrated the importance our charity places on its care and attention to staff welfare within its employment policies and practices.

Through the early months of 2022, our charity, along with the rest of the country gradually emerged from the pandemic. We were keen to reflect on the experience and evaluate what we had learned from it. Two lessons have coloured our development from this point.

The first is the value of being financially nimble. At this time dealing with increased inflation, higher costs of living and energy prices were still beyond the horizon, largely falling within the following year. However, we are exploring being able to make the best use of internal management information supported by our IT infrastructure together with our financial assets quickly, to be built into our forward financial strategy.

The second is the value of tried, tested and documented processes and procedures throughout the organisation from our overall governance arrangements, matters of operational responsibility and delegation and assessment of risk. This also encompassed a review and redefinition of our shortterm forward strategy. This activity ensured that our strategic direction included a more focussed understanding and use of our charity’s land and property assets as well as properties used for the delivery of our services and direct achievement of our charitable objects.

The 2021-22 year was a period of reflection, re-alignment and strategic decision-making. These activities took place through a period of recovery from the pandemic and its longer lasting legacies of staff stress, continued staff recruitment problems and the need to review and rebuild processes

3 | P a g e

to enhance efficiency. By the end of the year it was recognised that all of this was necessary and worthwhile in order for our charity to move forward and continue to develop its offerings for those in need according to its objects.

Lois Neal Chair of Trustees from April 2022 18 July 2023

4 | P a g e

Message from the director - Lawrence McAnelly

At the beginning of November 2021, we were continuing to live with the impacts of Covid-19, on the charity and the people we are here for; e.g. operating “bubbles” in our day centres; visiting to Stichell House, our residential home, interrupted during localised outbreaks and gradually seeking to re-build networks etc. We recognised the pressure on our services and were fortunate to be able to utilise our reserves to maintain and continue our services, whilst taking stock and planning for the future.

As we took stock, we reocgnised that there were several areas that we needed to develop. We focused on a year of recovery, building organisational and financial resilience and sustainability.

This year due to the falling investment values and the transfer of unapplied total return to maintain the real value of the trust for investment, the charity is showing a negative unapplied total return of £523,871. There is no obligation for the charity to make up this amount and as investment values will fluctuate, it is expected that the negative unapplied total return will be recovered over time.

We also faced difficult decisions. During this period the charity took the very difficult decision to close Gretton Court Nursing Home in Hartlepool by the end of March 2022.

The charity concluded that it could no longer operate as a dementia nursing care provider at Gretton Court against a background of significant challenges facing the charity and the wider care sector. Including a nursing recruitment crisis leading to staff shortages and reliance on agency staff to temporarily cover rotas, funding pressures and the uncertainty surrounding social care reforms and its future provision. The building itself was 28 years old and requiring significant ongoing investment to continue to deliver its high standard of residential nursing care, considered unfeasible in an uncertain climate.

Recognising that this was difficult news for residents, families and staff. The charity committed to an extended three-month transition period to enable all residents and their families time to plan and arrange for a suitable new nursing home place and to work closely with the staff affected by the decision who now redundancy and helping them with alternative employment, including redeployment across the charity’s wider service portfolio. I am forever grateful to the staff who worked at Gretton Court for their dedication and professionalism during this difficult period.

During this period, we were entering a new chapter. The environment was a challenging one: the pressure on social care and how best to meet the needs of people; continuing funding pressures and the slow pace of reform. It is testimony to the whole staff team at the charity that they remained focused on providing the best possible person-centred care and support throughout our services and home.

5 | P a g e

At Stichell House residential home, we continued to focus on recruiting people to the team who not only have the skills and ability but who share our values and passion. We had also increasingly been able to properly welcome visitors back and bring people together once more.

What we saw in our community services and especially our day centres were a gradual, month by month, increase in the numbers of people accessing the service as we emerged from the Covid-19 pandemic. Sadly, it was also noted that people often were now coming to the service later in their lived experience of dementia. One of the impacts of Covid-19 is that fewer people with memory and cognitive issues have been diagnosed with dementia which may be another factor in there being a gradual increase in people accessing some of our services.

Our strategy challenges? How can we best support people living with and impacted by dementia? How can we enable older people to live independently and well? How can we shape the charity to continue to meet need? How can we make the best use of our resources to continue making a difference now and in the future?

Lawrence McAnelly Director 18 July 2023

6 | P a g e

Organisational details

The Hospital of God at Greatham is a registered charity (registration number 1123540) and a company limited by guarantee (registration number 6533385, England and Wales).

The registered office is The Estate Office, Greatham Hall, Greatham, Hartlepool, TS25 2HS. The trustees of The Hospital of God at Greatham are directors for the purposes of company law and trustees for the purposes of charity law (hereinafter referred to as “the trustees”).

The trustees who served during the year and up to the date this report was approved (18 July 2023) are:

Co-opted:

Ex-officio:

The charity director (chief executive and company secretary) is Lawrence McAnelly.

The names and addresses of the principal professional advisers are:

7 | P a g e

Trustees’ Annual Report (including the strategic report)

About the charity

Our charitable objectives

  1. the provision of housing accommodation and extra-care accommodation for beneficiaries.

  2. the provision of grants not exceeding £5000 in any one year for such parochial and charitable purposes within the parish of Greatham as the trustees think fit.

  3. the relief of persons who are in conditions of need, hardship, or distress, including but not limited to sufferers of Alzheimer's disease and related disorders. the charity may relieve persons in need by:

(i) making grants of money to them or for their benefit.

(ii) providing or paying for goods, services or facilities for them; or

(iii) making grants of money to other persons or bodies who provide goods, services or facilities to those in need.

  1. the appropriation of bungalows, alms houses and other property belonging to the charity for the use of residents and brethren of the charity.

  2. the maintenance of the chapel which is devoted to the performance of divine service for the benefit of the brethren and residents of the charity.

Our vision, mission and values

Our Vision is that older people live independently, live well and enjoy life, that people living with a dementia, their families, and carers live life to the full and that our communities are strong, full of hope and resilient.

Our Mission is to deliver excellent quality care and support, placing people at the heart. To support and empower communities where we work and across the northeast. To be forward thinking, caring, dynamic, a place to belong and a place to be.

Our Values are to be kind, caring and compassionate. We aim to listen, learn and strive for excellence and put people at the heart of everything we do, aiming to ensure that everybody matters all of the time.

What we do

We work to develop and provide excellent care, support and housing services for people, particularly older people and those living with a dementia.

We also support the voluntary and community sector and those not-for-profit organisations which make a difference to the lives of people in our communities through a grants programme.

8 | P a g e

The main charitable activities of the charity are:

Our impact

What we achieved and delivered in the year

As we emerged from the impact of Covid-19, a period which was so very demanding, challenging and tested our resilience to the hilt, we were able to adapt and look ahead and worked to achieve the following:

Refined our business objectives and developed our governance

Developing our strategy

Throughout the year as part of our developing strategy trustees and staff worked together to develop our strategy. We focused on several key areas

As we continued to develop our strategy these key areas led to the development of our six business objectives. Providing our strategic and development framework for the forthcoming years.

Developing our Governance

Trustees and staff worked to develop our governance, including; reviewing and developing key roles, frequency of meetings and enabling space for discussion, thinking and planning, reviewing

9 | P a g e

committee terms of reference, including being clear about the delegated powers of each committee, developing a scheme of delegation to provide clarity and distinction between the roles of Trustees and the Director and senior leadership team and considered approaches to recruit new trustees to the board.

Building on our Assets

Staff and their expertise

Trustees committed to building an inclusive and positive culture where staff are empowered, valued, have space and opportunity to develop – To be the employer of choice.

We focused on recruitment and retention, particularly in our care home. We developed our recruitment approach, materials and methods to reach the marketplace. We involved and empowered people in the recruitment process, refining Job descriptions and person specifications and developing an improved induction process to enable us to build our teams.

We gave staff a 1.5% pay award in November 2021 and £100 payment in their December 2021 pay as a thank you for their hard work (there was also bonuses throughout the year for some care staff from funding designated by the local authority). There was also an uplift for staff impacted by increases to the National Living Wage.

We introduced an employee of the month award to recognise and reward the exceptional hard work of our staff. In this reporting period, 37 employees were recognised as being employee of the month, all receiving a certificate of recognition and a total award value of £3.7k.

Land and Property

The charity has several properties which are part of our permanent endowment and are managed to provide income to support our charitable aims. This includes 78 estate or investment properties, which provide accommodation for people in the village of Greatham; 11 commercial properties, including 4 let farms, 4 shops or office premises, 1 community centre and 2 public houses.

During the year, we started to review our property portfolio, to consider how it best enabled us to meet our charitable objectives, how we managed our property in line with our vision, mission and values, how we are compliant with current and future legislation.

We identified overarching aims to inform the development of our property strategy :

10 | P a g e

Enabling good property management is important to assist us in meeting our Charitable aims and objectives.

We provided 4001 weeks of accommodation for people living in the village of Greatham and achieved the following occupancy rates across our commercial and investment properties (estate properties)

Financial investments and income

Our aim is to achieve an acceptable and good return from our financial investments to enable and support the delivery of the charity’s objectives and maintain the value in perpetuity for future beneficiaries. Through this year Trustees have worked to support the Director and Senior Leadership team to achieve appropriate embedded financial management arrangements that meet the charity’s needs, including receiving and approving the annual accounts, continuing to monitor the performance of investments and consider reviewing our investment managers.

Making a difference

Making a difference is at the centre of what we aim to achieve directly through the delivery of our services, homes and grants. This is central to our ongoing recovery with the continued focus on delivering outstanding services. Key achievements through this period:

11 | P a g e

Our services - people at the centre of everything we do

“The Bridge” – Dementia Advisory Service (Hartlepool)

The Bridge Dementia Advisory Service offer advice and support to those living with a dementia and their families. As well as providing that much needed emotional support, the Advisors signpost to other services and provide training and resources to help carers learn more about dementia. The Bridge have a mailing list which goes out every 6 weeks to ensure all clients are kept informed of any events or activities hosted by The Bridge or other services.

“The leaflets regarding upcoming activities were very useful”

12 | P a g e

This last year has been extremely busy at The Bridge, we have now settled into our new home at Greenbank’s in central Hartlepool. The Bridge has seen an increase in referrals mostly from the Community Mental Health Team in Hartlepool as we are now receiving referrals straight from the consultants following a diagnosis.

With great voluntary sector relationships which The Bridge have developed this keeps the service at the forefront in the community and working alongside other organisations such as CLIP and Dementia Friendly Hartlepool to ensure Hartlepool is an accessible and friendly place for people living with a dementia.

In November 2021. The Bridge was actively supporting 176 carers and 64 people living with dementia and by October 2022 this has increased to 234 carers and 70 people living with dementia.

Over the last year, The Bridge have received on average 15 new referrals each month into the service for support. The Bridge have signposted 762 times throughout the year to other services in Hartlepool which range from voluntary sector organisations such a Hartlepool Carers, and the charity’s services including Hartlepool Day Centre, Community Pastimes and primary care networks such as GP surgeries and Social Services.

Within this period, The Bridge have continued to provide telephone support and walk in advice. The advisors at The Bridge made 3,753 calls and had 223 walk ins for advice and support which is in addition to the attendance to group sessions.

The Bridge lead on the development of a new Peer Support project. This has seen an increase in peer support groups for those living with a dementia and just as importantly their carers. The project empowered carers enabling them to facilitate and run their own groups such as craft sessions, where they can provide that much needed peer support to people in the same position as themselves. The bereavement group and the ex-carers group for those carers whose loved ones have gone into long term care has continued and are still well attended.

These five-week courses are also supported by the Hospital of God’s Chaplain Andrew, which has shown the great partnership working throughout the charity. These groups have developed, and now once a year there is a memorial service held in the chapel where clients old and new who have been supported over the years can visit and take part in the memorial service.

“It was lovely talking and sharing our thoughts with lots of lovely people”

“It was good to share stories and help each other, highly recommend”

“The group we have a coffee and chat about our experiences, how things are going what we can get help for. Sharing is caring. Gaining knowledge and understanding to help you give the care to your loved one. I feel we have relaxed and shared our situations, this has made me feel I’m not alone!”

Currently The Bridge are actively supporting 304 people . Of the 304 people, 234 are carers/loved ones of those living with dementia and 70 are people living with dementia. This shows the huge demand for this service.

“I cannot fault the staff at all they go above and beyond their job”

“I enjoyed the phone calls very helpful”

“The Bridge is a great link to other agencies and services”

“Staff have supported me with regular calls and service updates as well as sign posting to other services such as social care. This is essential as a carer, for me being able to simply talk about difficulties and struggles caring for both my parents with dementia. All staff have been enormously helpful, professional and compassionate. I couldn’t have managed without their help and support”

“By keeping me buoyant I have been able to continue with supporting my parents daily. Knowing a person or service is there when needed matters greatly. Continue with your sterling work.” - Family Carer

“The Bridge, a place where people living with dementia can visit and feel supported and valued in a safe place. The advisors are friendly and very knowledgeable and come highly recommended by the service users I come into contact with. The referral process is very straight forward and the advisors are always happy to accept. Not only do the service users value the service, us at the memory service also value their support and expertise. We work collaboratively and often liaise with each other regarding problems that arise during our working day. Also, as we run the Cognitive Stimulation Therapy sessions at the Bridge, the people who attend that are living with dementia and their families and carers are introduced to the service and the advisors early on in their journey” - Kathryn Carling – Community Mental Health Team

Hannah Robertson, Senior Dementia Advisor

14 | P a g e

Hartlepool and Minerva House Day Centres - for people living with a dementia and family member carers

Our Hartlepool day centre at Heather Grove in Hartlepool and Minerva House Day Centre in Hordern, East Durham provide therapeutic care and support for people living with dementia. The team works to deliver a range of activities and sessions which support people living with dementia, that are stimulating, interesting and fun. They are creative using a range of techniques and laughter can often be the sound that resonates through our centres.

Through our whole family approach, we also support family carers through our Family Support Workers, who provide face to face and telephone support, access to information and guidance and practical support, e.g., with attending appointments, financial and benefit information and someone who can offer a listening ear.

The services are delivered 6 days per week.

Across the two services between January 2022 and October 2022 they delivered 3,459 sessions with people living with dementia equating to over 20,754 care hours.

Hartlepool Day Centre - The Heathers

Following the easing of restrictions introduced as a result of the Covid-19 Pandemic, the service reopened its doors to enable people to access the centre, in a safe, reduced format. During the restrictions to reduce the risk of infection, group sizes had been reduced to small “bubbles”, ongoing testing and the use of PPE to enable group sessions to be delivered as safely as possible.

Gradually we increased the service from half days to full days, this was a major development following the restrictions that needed to be in place due to the impact of Covid-19. Our observation was that many people during the restrictions had found life more difficult, isolation, increased anxiety and the impact of their dementia had worsened. More than ever the support for families was really important as we emerged from the Covid-19 Pandemic.

Positively we found that the numbers of people accessing the service, guests and families gradually increased.

15 | P a g e

To reflect the changes and the gradual increase in demand for the service we started to collate data differently and in the period Jan 2022 to Oct 2022, the day centre provided 1940 sessions , that equates to 11,640 hours of care .

The pattern showed the gradual increase in the number of sessions delivered for people living with dementia as the year progressed and demand increased. In January 2022 there were 125 sessions by Oct 2022 this had increased to 282 sessions.

16 | P a g e

Our whole family approach recognises that dementia impacts many people and that caring for a person living with dementia is demanding of family members. This is accurately summed up in the kind words of a family below.

“To all, we just wanted to say a huge thank you for all your kind love, help & support over the last few years.

“The service you provide is amazing, not only giving these service users support, guidance, care and attention, but also giving us who care the chance for rest and recuperation, ensuring we can carry out our role well. My Dad can see how valuable this service is, so can we, to see him smile when he went warmed our hearts. Thank you will never be enough”

Minerva House – East Durham Day Centre

"Thank you for giving mam enjoyment on her visits to Minerva House we are so grateful to you all...”-Family member

Again, following the easing of Covid-19 restrictions the service had re-opened its doors to enable people to access the centre, in a safe, reduced format, group sizes small “bubbles”, ongoing testing and the use of PPE to enable group sessions to be delivered as safely as possible.

Gradually we increased the service from half days to full days. Similarly, as in Hartlepool, we observed that many people during the restrictions had found life more difficult, isolation, increased

17 | P a g e

anxiety and the impact of their dementia had worsened. Equally, the support for families was really important as we emerged from the Covid-19 Pandemic.

The experience at Minerva House was different to that of Hartlepool Day Centre with the numbers of people accessing the service, guests and families gradually increased as the year progressed, although the increase was less pronounced than in Hartlepool. There were 157 sessions delivered in January 2022 to 190 delivered in October 2022. This is perhaps due to the size and make-up of County Durham, the rural nature and the prevalence of previous coal mining communities.

From the period 1 January 2022 to the 31 October 2022, the service delivered 1,519 sessions with 9,114 care hours .

18 | P a g e

“Hello just to say a big thank you to all the lovely staff at Minerva House for taking good care of my mam …. she might not have shown that she enjoyed visiting you every Tuesday but I know she did as she talked about it all week, and told me how nice everyone was to her, thanks for making her happy”Family member

“To all at Minerva House, thank you so much for all your care towards …. he loved coming to see you all”- Family member

Joanne Blackwood, Community Services Manager

Community Pastimes

One to one community support for people living with a dementia

“My wife is mainly supported by Linda and they have formed a brilliant relationship. I myself get on very well with her and it gives me peace of mind and I couldn’t ask for more, she goes the extra mile for both of us” -Husband of client

The Community Pastimes service during this period, provided bespoke one to one community-based support for people living with dementia as well as a private service where people who were lonely and isolated could access the companionship service.

Covid-19 continued to have some impact however much improved, and services were fully resumed with measures in place to maintain safety of clients, families, and staff.

19 | P a g e

Community Pastimes found a new home and successfully relocated from The Brother House, Greatham to the Heathers, bringing community-based services under one roof, with a view to continuing to develop the service to increase client capacity due to growing waiting lists.

Through the period 1 November 2021 to the 31 October 2022, the Community Pastimes service delivered 2,329 local authority sessions and 113 private sessions in Hartlepool and 229 private sessions in East Durham supporting people living with dementia or isolated and lonely, providing a total of 8,013 hours of support in Hartlepool and East Durham.

The service delivery remained relatively constant throughout this period, showing an increase in the number of sessions delivered toward the end of the period.

“Just carry on what you are doing”- family carer

client

Emma Foreman, Community Pastimes Service Manager

20 | P a g e

Stichell House residential home and Gretton Court Dementia Nursing Home

During this year, the charity had two homes in the Hartlepool area. Stichell House Residential, home to 35 residents and Gretton Court Nursing Home, home to 37 residents. As reported earlier, the charity took the decision to close Gretton Court nursing home at the end of March 2022.

Stichell House residential home in Greatham, Hartlepool

Stichell House is a purpose-built residential home that was opened in 2006. Set in the landscaped grounds of the beautiful Greatham estate, Stichell House is a modern home in an enviable location. It has 35 bedrooms, all of which have ensuite toilet facilities.

Stichell House aims to provide a warm, welcoming environment where people are at the centre of everything we do. Everyone in Stichell House is part of the community, and the staff are dedicated to the independence and well-being of each resident.

Stichell House achieved an occupancy rate over the 12 months of 92.6%. providing 11,387 days of care.

21 | P a g e

One of the major challenges during this period was recruitment and retention of staff. Nationally it is widely accepted that there is a significant staffing crisis in social care. Currently it is understood that there are around 165,000 vacancies.

The charity’s approach was always to ensure that the staffing rota was full and there were over and above safe levels of staffing. We worked with local agencies who provided care assistants. We aimed to ensure that wherever possible there were people who consistently worked in the home, so that they knew the residents and the systems and processes in the home. We recognised that using agency staff was never what we wanted but equally that it was required.

Between March 2022 and October 2022, we have worked to reduce the number of agency hours used to provide care in the home. This includes raising the profile of the charity, using a number of recruitment boards, committing resources to concentrate on recruitment, refreshing our induction process and information.

22 | P a g e

Each resident has an individual care plan, to enable staff to meet their needs and requirements. We continued to develop our use of Care Planning providing a paperless care planning system. This was a major change for the staff in the home, bringing change and new ways of working but one which they have gradually and positively met.

We have continued with our approach to develop our Governance, Audit and Improvement (GAI) policy and practice, working to maintain a live and ongoing action plan. We have continued identifying and collating near miss data to continually inform our practice. This is significant work which aims to reduce the risk of accidents.

"A heartfelt thanks for all the love and care. You are not just a care home, you are a family home"

"We feel that the family are as involved as the residents are. We all feel very welcomed. I feel that I have known the manager longer than we actually have done. The Manager is great and is very professional, but they are also approachable and friendly."

"The carers are at your beck and call every minute. All the staff are absolutely wonderful. If you need anything doing, they will do it for you straightaway”

Gretton Court nursing home in Hartlepool

Until its closure at the end of March 2022 Gretton Court provided nursing care for 37 people who are living with a dementia and often with complex health needs. The home achieved a 94.2% occupancy rate throughout this period providing 12,729 days of residential nursing care.

23 | P a g e

Both homes were rated by the Care Quality Commission as “Good” and continue to achieve a level 1 standard approved by Hartlepool Borough Council as part of its annual Quality Standards Framework.

In autumn 2021, the charity carefully considered the future of Gretton Court Nursing Home due to the pressures on nursing care, the workforce crisis and the ability to recruit good nurses and staff members, the age of the building and the level of risk to the charity. In October 2021, the Trustees decided to review the options for Gretton Court Nursing Home and in December 2021 took the very difficult decision to close the nursing home part of the building. This decision was shared with residents, their families, staff members, local authority and health partners in January 2022, with a 3 month notice period given and the home was formally closed at the end of March 2022.

Lynsey Thurlow, Stichell House Manager Gail Ridley, Head of Care

Almshouses - supporting older people to live independently

The charity owns and manages 123 Almshouses, providing accommodation, with the support of a Almshouse Lead and Almshouse Support Workers. The properties in Stockton-on-Tees, Norton and Hartlepool all benefit from a call system 24 hours a day providing residents with the responsive help needed. The combination of accommodation, a sense of community and belonging, suitably adapted properties, warden support and 24-hour access to the one call system means that our residents can continue to live independently in the community.

The Almshouses are situated in Stockton Town centre, Hartburn and Norton and in the village of Greatham, Hartlepool. Through the year, our Almshouses provided 6,076 weeks of accommodation for older people with an average occupancy rate of 97.43%

24 | P a g e

Over the period November 2021 to October 2022 we had an average occupancy of 97.43%

Chaplaincy Service

The aim of the Chaplaincy service is to develop the Hospital of God’s spiritual, religious and pastoral care of residents, their families, almshouse residents, and the charity’s staff.

It has been a lovely year of setting in place a programme of regular activities that sees me involved with a broad range of the charity’s services. There are so many opportunities to engage with: clients, residents and staff, and everyone remains very welcoming and supportive of the chaplaincy role within the organisation:

Stichell House: I run a weekly Prayer and Care group in Stichell House which is an ecumenical service of the word for residents from a Christian background, and many who may not have a faith but enjoy

25 | P a g e

attending. We have set prayers for the week, an order of service, and hymns played via our TV in the lounge. It is nice having the formal aspects of prayers and hymns as many residents are familiar with the recitation and singing, but equally important is the time spent chatting informally afterwards with our residents and getting to know them better. Our Activities Coordinator plays a crucial role in arranging the sessions.

Outreach work with local faith communities: To ensure that we can have appropriate connections with local churches and other faith groups I have worked with colleagues from several Christian traditions: Catholic, Anglican and Baptist churches, and have also met with a local Islamic group too. We have our local vicar, and curate, providing a monthly eucharistic service in our care home and a local catholic deacon also lined up to support some activities in the care home too. I have joined Hartlepool Churches Together and have made some useful contacts through their networks too.

Pastoral Visits to Almshouse Residents: I visit our Brother House on a weekly basis and spend time chatting with a real cross section of our residents. Their mutual support for one another and eagerness to spend time together is a joy to see. It has been my pleasure getting to know folk and being there for them if they are undergoing any worrying hospital procedures or are just generally needing someone to talk to. I also carry out monthly pastoral visits to Trinity Gardens and Emma Simpson Court (again our staff team have helped broker introductions and promote what the chaplaincy role can bring to the lives of our residents).

The Bridge: Staff here have really embraced how chaplaincy support can enhance the services that we collectively provide. I now support their regular Carers’ Group (for those with family members who may be living with dementia), we run a 6-week block of group support sessions and also host quarterly events in our Estate Office and Chapel here in Greatham too. I also co-facilitate a Bereavement Group with Bridge staff too, and it has been especially poignant to support clients who are dealing with loss and grief.

Winter Bereavement Service in Greatham: Dealing with loss and bereavement is never easy, but it is often more acute as we head towards major festive family times, such as Christmas. To help ease this burden I have hosted an annual memorial service in our chapel where we share prayers, hymns and offer up an opportunity for participants to sign our book of remembrance too.

Day Centres Visits: I am also able to spend time visiting clients supported through our services at The Heathers, Community Pastimes, and Minerva House. Seeing the breadth of support and reach into communities that this charity has at its fingertips means that it is easy to work alongside our staff and participate in our social activities in an effort to help combat loneliness and bring practical support and happiness into the lives of others.

Dementia Friendly Hartlepool: I was invited to join the network and to act as a “faith rep” as part of the group. Although still quite early days this has enabled me to develop some practical connections (through Churches Together Hartlepool) which can tie into Dementia Awareness Week and other Dementia Friendly Worship events throughout the year.

26 | P a g e

Dementia Awareness Week and Dementia Friendly Worship: As mentioned above it is important for the charity to take the lead on supporting those living with dementia. As part of the action week we hosted a dementia-friendly worship session at our chapel here in Greatham and also run a further service later in the year too. Colleagues from The Bridge have once again signposted folk to this event and continue to encourage this aspect of chaplaincy and faith support within the charity.

Links with Hartlepool Foodbank: Following on from an Anglican Deanery Chapter meeting I invited a colleague, who is the chairperson of the foodbank, to make use of our chapel for their thanksgiving event. It was nice to host them and to support the important work they are doing, but perhaps even more noteworthy was that our brilliant administration staff (led by Veronica) decided that we should organise a charity-wide collection which we could then present to the foodbank when they were in Greatham for their event. This was warmly received, and we are planning a follow-up collection later this summer too.

Grants Committee: After having worked for over 20 years within the charitable and voluntary sector it is especially rewarding to sit, in a purely advisory role, as a lay member of this group. It is great to see the philanthropic ethos and social justice heritage of the charity still at work in a hyper practical way.

Andrew Tinkler, Chaplain for The Hospital of God

Grants – supporting the voluntary and community sector

The charity has a long and proud philanthropic history. Through our small grants programme, we provide funding to voluntary and community organisations and charities who are based within the Hospital of God’s geographical boundary covering Stockton to Northumberland. The aim of our grant funding is to empower local communities to help and support themselves, creating and building on their strengths and assets, with a particular focus on those who are experiencing disadvantage.

The Hospital of God's Grants Committee meets on an annual basis to allocate grant funding. Within this reporting period and through our Spring 2022 funding, we supported 39 voluntary and community sector organisations with grants totalling £100,147.

Some of the organisations that received funding include:

27 | P a g e

Impact of the Spring 2022 grant funding:

“Grant applications of the size and work commitment of the Hospital of God, are a very important resource to a medium size charity like ours, ensuring we can continue to provide our important work”

“Having funders that acknowledge and will support core costs is invaluable. We also welcome the ability to reapply each year”

“We have been able to support at least 16 people get back to work”

“The grant has given us a wonderful opportunity to engage with our families in a way we haven't before. Our families have so many challenges in their lives that having the opportunity to be together and laugh, have fun and join in activities is invaluable”

“Thanks to the grant from the Hospital of God, we’re now able to upskill our staff and volunteer team. Over the next year, all members of the team will take part in training on key issues and challenges facing the communities we

28 | P a g e

support in Middlesbrough and Newcastle. This investment in training will enable us to better assess, target and respond to those in the greatest need”

Nicola Garrett, Head of Operations

Our plans for the future

Strong Financial Management

Outstanding services

Professional Property Services

Employer of Choice

29 | P a g e

Good governance and leadership

Impactful Grants programme

30 | P a g e

Financial review

Summary

This year the charity has continued to rebuild its services following the impact of the Covid-19 pandemic, with signs that most, particularly residential care and property related services now operating as normal. Although covid-19 is still impacting on the numbers attending community services which are taking a little longer to recover to pre-covid levels, with hindsight, partly attributed by the charity to the drop in the number of people being diagnosed with dementia at an earlier stage, because of the pressures faced by the pandemic.

Total income for the year was £3.888m (2021: £5.029m) and total expenditure on operations was £5.142m (2021: £5.749m), giving an operating deficit of £1.25m which has been funded from unrestricted reserves. The charity invests in its services using its accumulated reserves and the income generated from its investment activities. This year has seen the restructuring of some services, a review of pricing and charging policy, to make them more financially sustainable, and is expected to improve the operating result in future years.

Our investments have experienced significant losses this year due to the decline in stock markets globally. Unrealised losses on investments of £2.2m have contributed to a reduction in total funds of £3.1m, down from £47.3m in 2021 to £44.5m this year.

Results from charitable activities

The principal source of funding for the charity’s activities is the income received from fees, contract payments and grants for its care and community services which this year accounts for 77% (£3m) of total income for the year to October 2022, a reduction of 3% on 2021.

Income from residential care amounted to £1.7m which is a decrease of approximately 40% on the previous year following the closure of Gretton Court Nursing Home in March 2022. Expenditure (including support costs) on residential care services has fallen by approximately 23%. For the year to October 2022 expenditure included one-off redundancy costs, holiday pay and pay in lieu of notice for Gretton Court staff amounting to £232k. Residential care services expenditure (including support costs) exceeded income by over 50% which represents a subsidy by the charity towards the full cost of this service. Use of agency staff in both homes has increased this year due to the shortage of nursing and care staff available for recruitment and the need to safely staff Gretton Court until the home closed.

Income from community services amounted to £0.74m, a reduction of 11% on the previous year which included covid stability payments from the local authority. Community services were

31 | P a g e

significantly curtailed during the pandemic and recovery after covid has been slower than anticipated, with the delayed diagnosis of dementia due to covid-19 considered to be a factor.

Expenditure on day and community services (including support costs) increased by approximately 10% in the year to £1.19m. Costs continued to be incurred while the service was being rebuilt and direct service costs increased as activity resumed after covid.

Income from the provision of supported almshouse accommodation amounted to £591k, an increase of almost 4% from the previous year, reflecting the annual uplift in maintenance fees. The cost of providing this service, including support costs, was £627k, a reduction of £78k on 2021, which included £100,000 investment in the upgrade of the almshouses.

During the year, the charity continued its support for other charities, voluntary organisations and the Newcastle Diocese by awarding grants of £99,192. These grants, and the associated support costs, continue to be entirely funded from the charity’s own resources as part of its charitable activities.

Results from investment activities

The charity holds investments in financial and property assets which generate income and capital gains for use in meeting its charitable objects.

The trustees employ investment fund managers to manage the financial investment portfolio on a discretionary basis within broad investment parameters set by the trustees which take account of trustees’ views on acceptable levels of risk. The fund managers have been instructed that the charity has an ethical investment policy relating to directly held securities which encourages investment in companies which are sensitive to the communities in which they operate, can demonstrate success in business and financial matters and adopt responsible corporate governance, employment and environmental policies. The performance of the fund managers is measured against appropriate industry benchmarks. Trustees and senior management meet regularly with the fund managers to review performance and consider changes to the portfolio in response to changes in market conditions.

The investment objective of the endowment fund’s financial investment portfolio is to achieve sustained growth over the medium to long term whilst accepting a moderate level of risk.

During the year ended 31 October 2022 the charity’s financial investments generated income of £251k but incurred unrealised losses on endowment funds of £2.1m (£2.8m unrealised gains 2021). The charity’s investment objective is to achieve growth over the medium to long term and with the current level of unrestricted reserves, short-term fluctuations in investment values will not impact on activities.

Under a total return order granted by the Charity Commission in 2010 the charity is permitted to draw upon capital growth in the endowment’s financial investment assets in order to support its

32 | P a g e

charitable activities provided always that the real value of the trust for investment is maintained. In this way trustees ensure that due consideration is given to the needs of both present and future beneficiaries of the charity. Details of the total return approach to the investment of the charity’s permanent endowment is given in Note 17 to these accounts which shows that the value of the “trust for investment” at 31 October 2022 was £21.6m (£19.07m 2021) and the value of unapplied total return at that date was (£0.52m) (£4.01m, 2020). Unapplied total return represents that part of the accumulated unrealised gains on the financial investments which is available for trustees to spend in meeting the charity’s objectives or to replenish general reserves. The decline in the global stock markets has resulted in significant unrealized losses on investments this year which has wiped out the unapplied total return that was available for the charity to spend. However, a healthy level of unrestricted reserves remains available to invest in services.

Due to the continued sufficiency of its unrestricted reserves the charity has not drawn down any funds from endowment growth during the year.

The charity’s portfolio of investment properties comprises houses, farms, commercial and other properties located in and around the village of Greatham. The portfolio is managed in-house. The properties are maintained to an appropriate standard and the charity endeavours to be a good landlord. The net income generated from these properties during the year was £264k (£365k 2021), after deducting maintenance and other costs including support costs. Overall, rental income increased by almost 2% during the year. Expenditure on these properties increased by 50%, with an additional £100k this year being spent on replacement doors, windows and boilers and refurbishment of kitchens and bathrooms.

Financial position

The charity’s overall financial position remains strong, with total funds at 31 October 2022 amounting to £44.5m despite there being a decrease of £2.8m (6%) on the previous year of £47.3m as a result of the unrealised losses on the financial investments of £2.2m and the operating deficit.

Of these total funds 92% is represented by the charity’s endowment fund assets, primarily its financial and property investments. Of the remaining funds, approx. 2% represents funds held on trust in a restricted fund for the Charity of Emma Simpson for Almshouses and a further 6% of funds comprise the charity’s unrestricted reserves.

The assets in which the endowment fund is held remain largely unchanged with over 50% of the assets being held in listed investments, a further 28% held in the form of property, 19% in fixed assets and the remainder in inter-fund balances.

The value of the financial investments held in the Endowment Fund at 31 October 2022 includes a negative unapplied total return of (£0.52m) (2021: £4.01m). There is no obligation to maintain the value of permanent endowment investment and investment values will fluctuate over time.

33 | P a g e

The restricted fund represents the assets of the Charity of Emma Simpson for Almshouses which are held and managed by the charity as corporate trustee of the linked charity.

£1.2m (50%) of the charity’s £2.5m unrestricted funds are held in net current assets with the balance being held in listed investments. The charity continues to have a good level of liquidity, although this has reduced during the year, with total assets less current liabilities of £2.3m (2021: £3.3m)

The Statement of Cash Flows on page 48 shows that the cash inflows from the Charity’s investments (£1.08m) have not been sufficient to offset the outflows from its operating activities (£1.98m) this year, giving a decrease in the cash balance of £893k, for the reasons highlighted earlier.

The trustees have established a reserves policy to ensure that in the unlikely event of all sources of income ceasing at once the charity could operate for a period of three months, which equates to approximately £965k. At 31 October 2022 the charity’s unrestricted funds totalled £2.5m (2021: £3.06m). The trustees of the charity have discretion over how all unrestricted funds are used in furtherance of the charitable objectives and retain the ability to redesignate any of the unrestricted funds.

In view of the overall strength of the charity’s financial position, available cash and unrestricted reserves, and its plans for the forthcoming year, the trustees confirm that they consider the reserves to be sufficient to enable the charity to continue with its operations and to fulfil its obligations as they fall due.

The charity has a long-term financial obligation in respect of The Greatham Hospital Pension Scheme, a legacy defined benefit pension scheme for which the charity is the sponsoring employer. This pension scheme is closed to new members but remains open to future accrual for the remaining active members. The most recent comprehensive actuarial valuation of the scheme was carried out as at 31 October 2022, which indicated a reduced actuarial deficit of £91,000 at that date. The charity, as sponsoring employer, has agreed with the trustees of the scheme a deficit recovery plan involving additional contributions which is expected to eliminate the shortfall by November 2023. For the purposes of the financial statements as at 31 October 2022 the valuation calculated in accordance with Financial Reporting Standard 102, shows a pension scheme ‘asset’ of £209k. (2021: £153k net obligation)

34 | P a g e

Structure, governance and management

Formation, legal structure and objectives

The charity was first founded in 1273 by the Bishop of Durham, Robert de Stichell, and was subsequently re-founded in 1610 by King James 1.

The present charity governing document is the scheme of the Charity Commission dated 27 June 2002 as amended by the uniting order of the Charity Commission of 26 March 2009 which appointed the charitable company as the corporate trustee of the charity. The Hospital of God at Greatham charity holds the permanent endowment on behalf of the company.

The present governing document of the charitable company is the memorandum and articles of association dated 13 March 2008 which sets out its charitable objectives:

limited to people living with Alzheimer’s disease and related disorders, by providing grants of money to them or for their benefit; by providing or paying for goods, services or facilities for them; or by

making grants of money to other persons or bodies who provide goods, services or facilities to those in need;

These objects are achieved through the provision of residential and nursing care for older people and people living with dementia; community support services for older people and people living with a dementia, and their carers; the provision of supported housing for older people; and the making of grants to other charities and voluntary organisations.

35 | P a g e

Governing body and governance

The trustees, who are also directors of the charity for the purposes of the Companies Act, have overall responsibility for the strategy, management and control of the charity. There is provision for eight co-opted trustees, and they are elected by the existing trustees at a general meeting as vacancies arise and in accordance with the needs of the charity. There is a one-year trial period for new co-opted trustees. Each co-opted trustee may serve for two periods of five years.

There are three ex-officio trustees, namely the Archdeacons of Durham and Northumberland and the Bishop of Durham. The archdeacons take up the role of trustee by virtue of their position and hold office for as long as they remain in post. The Bishop of Durham holds office for as long as he or she remains in post. The Bishop may, and historically has, nominated someone to act on their behalf for a five-year period which can be repeated.

The Trustees are required to elect a chair of their meetings at the first meeting of each calendar year.

As part of their induction new trustees receive the following documents:

The board of Trustees normally meets four times each year. The Charity's Board of Trustees is responsible for establishing structures for the proper governance and management of the charity and the development of the vision and strategy of the charity in accordance with its objects. In this year, reflecting the development of its governance arrangements, Trustees have used online meetings on a regular basis to hold formal and regular discussion meetings.

The trustees have established several committees to consider issues in greater depth and to advise the Board. These committees, which are accountable to and report to the Board, are as follows:

36 | P a g e

In addition, a Trustee has joined the Charity’s Governance, Audit and Improvement group to offer insight and a direct link to the Board of Trustees.

The trustees ensure that the charity has effective strategy, and that effective monitoring and governance arrangements are in place. The day to day running of the charity and the exercise of executive responsibility is delegated to the charity Director and the Senior Leadership team.

The charity is not part of a formal network of other charities. It does, however, have contractual and working relationships with local authorities for the provision of social care services and housing support services and contractual relationships with the local commissioning bodies for the funding of community services and nursing services.

The Hospital of God at Greatham has absorbed or been formally linked with other charities in recent years as follows:

Further information is given in the Notes to the Financial Statements which accompany this report.

Statement of public benefit

The trustees give due consideration to Charity Commission guidance on public benefit under the Charities Act 2011.

The Hospital of God at Greatham provides public benefit by virtue of its objects which are to relieve need, hardship and distress. We work to ensure the independence, health, wellbeing and social integration of the people we work with. Where individuals are not able to pay fees, for example in our residential homes, because they cannot afford them, the charity would encourage them to seek state funding. The charity to a greater or lesser extent supports or subsidises all its services from its own resources and this is considered by trustees to be an appropriate use of the charitable endowment in accordance with the legal objectives of the charity.

Examples of how charitable funds are used to create public benefit are:

37 | P a g e

Risk management and principal risks

The trustees have overall responsibility for the management of risk within the charity and view the management of risk as an essential discipline to support the charity in achieving its goals.

The trustees have conducted a review of the major risks to which the charity is exposed. A risk register has been established and is updated annually. Control systems have been put in place to mitigate such risks. The charity Director reports to trustees on any new risks that might arise during each year.

These major risks have been identified by the Board of Trustees and the measures taken to mitigate them are detailed below. They are included within a full and comprehensive register which is monitored and revised as is necessary.

Identified risk Mitigating action
Strategic Direction: Aim, Objectives and Plans
•
Charity becomes divorced from the objects
defined in the Memoranda		 •
Revisit quinquennially Objects defined in
Memoranda (update if necessary)
•
Review and update Strategy annually
(Strategy Day)
Board Vacancies
•
Reduced range of expertise available
Excessive workloads
Reduced capacity to meet responsibilities		 •
Quarterly report to the Board of terms
of Office
•
Follow Trustee appointment procedure
(agreed at Board April 2022)
•
Complete Trustee induction process
Financial Controls (Board level)
•
Budget does not match key objectives and
priorities
•
Inability to meet commitments or key
objectives
•
Poor credit control, cash flow and treasury
management
•
Non-payment of fees, rent, maintenance
contributions etc. by service users or
families		 •
Quarterly accounts reported
•
Variances explained
•
Report of annual external audit
Cost/Price Policy
•
Costs outstrip price
•
Demise of service quality
•
Reduced reputation		 •
Annual review of cost-price policy
•
Move to a full cost recovery approach

38 | P a g e

Benefit realisation from Property Investments

Property for Delivery of Services

Health, safety and environment

Compliance with legislation and regulations around social care and housing

39 | P a g e

care homes and service commissioners
for other services.
• Purchase of Croner Service-Social Care
• Closure of Gretton Court Nursing Home
March 2022

40 | P a g e

Statement of trustees’ responsibilities

The trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and UK 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 surplus or deficit of the charity for

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

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which 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.

Statements of disclosure to auditors

In so far as the trustees are aware:

Wm Fortune & Son are deemed to be reappointed in accordance with Section 487(2) of the Companies Act 2006.

This Trustees’ Annual Report, which incorporates the Strategic Report and the Directors’ Report required under the Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013, was approved by the Board on 18 July 2021 and signed on its behalf by:

Lois Neal Chair of trustees

Lawrence McAnelly Director Company Secretary

41 | P a g e

Independent Auditor’s Report

Opinion

We have audited the financial statements of The Hospital of God at Greatham (the 'charity') for the year ended 31 October 2022 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, 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 FRS 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:

42 | P a g e

the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

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

43 | P a g e

Responsibilities of the trustees

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

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

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

44 | P a g e

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

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

Thomas Atkinson (Senior Statutory Auditor)

For and on behalf of

Wm Fortune and Son, Chartered Accountants & Statutory Auditors

Collingwood House Church Square Hartlepool, TS24 7EN

18 July 2023

45 | P a g e

The Hospital of God at Greatham

Statement of Financial Activities (including income and expenditure account)

Year ended 31 October 2022

__________

2022 2021
Unrestricted Restricted Endowment
funds funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 5 8,281 – – 8,281 19,053
Charitable activities 6 2,968,399 39,097 – 3,007,496
4,156,710
Investment income 7 621,839 – 250,581 872,420
853,731
----------------------------------------- ----------------------------------------- -------------------------------- ----------------------------------------- -----------------------------------------
Total income 3,598,519 39,097
250,581		 3,888,197
5,029,494
========================================= ======================================= ================================ ========================================= =========================================
Expenditure
Expenditure on raising funds:
Investment management costs 8 (372,575) – (172,720) (545,295)
(388,232)
Expenditure on charitable activities 9,10 (4,542,026) (44,438)
(10,000)		 (4,596,464)
(5,360,746)
----------------------------------------- ----------------------------------------- -------------------------------- ----------------------------------------- -----------------------------------------
Total expenditure (4,914,601) (44,438)
(182,720)		 (5,141,759)
(5,748,978)
========================================= ======================================= ================================ ========================================= =========================================
Total income less total
expenditure (1,316,082) (5,341)
67,861		 (1,253,562) (719,484)
Net unrealised gains/(losses) on
investments 11 (64,472) (1,833) (2,101,455) (2,167,760)
2,942,299
Realised gains/(losses) on disposal of
fixed assets - -
299,102		 299,102
437,860
----------------------------------------- ----------------------------------------- -------------------------------- ----------------------------------------- -----------------------------------------
Net income/(expenditure) (1,380,554) (7,174) (1,734,492) (3,122,220) 2,660,675
Transfers between funds
 23 430,600 – (430,600) – –
Other recognised gains and losses
(Increase)decrease in pension fund deficit21 362,000 – – 362,000
51,000
----------------------------------------- ----------------------------------------- -------------------------------- ----------------------------------------- -----------------------------------------
Net movement in funds (587,954) (7,174) (2,165,092) (2,760,220)
2,711,675
Reconciliation of funds
Total funds brought forward 3,055,430 1,062,927 43,136,141 47,254,498
44,542,823
----------------------------------------- ----------------------------------------- ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Total funds carried forward 23 2,467,476 **1,055,753 ** 40,971,049 44,494,278 47,254,498
========================================= ======================================= ============================================== ============================================== ==============================================

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

46 | P a g e

The Hospital of God at Greatham

Statement of Financial Position

Year ended 31 October 2022

__________

2022 2021
£ £
Fixed assets
Tangible fixed assets 15 8,440,743 8,674,484
Investments 16 33,765,969 35,835,625
---------------------------------------------- ----------------------------------------------
42,206,712 44,510,109
___ __
Current assets
Debtors 18 470,040 324,909
Cash at bank and in hand 2,337,105 3,230,120
----------------------------------------- -----------------------------------------
2,807,145 3,555,029
Creditors: amounts falling due within one year 19 (637,793) (565,634)
----------------------------------------- -----------------------------------------
Net current assets 2,169,352 2,989,395
---------------------------------------------- ----------------------------------------------
Total assets less current liabilities 44,376,064 47,499,504
Creditors: amounts falling due after more than one year 20 (90,786) (92,006)
Pension scheme asset / (provisions for pension liabilities) 21,22 209,000 (153,000)
---------------------------------------------- ----------------------------------------------
Net assets 44,494,278 47,254,498
============================================== ==============================================
Funds of the charity
Endowment funds 40,971,049 43,136,141
Restricted funds 1,055,753 1,062,927
Unrestricted funds 2,467,476 3,055,430
---------------------------------------------- ----------------------------------------------
Total charity funds 23 44,494,278 47,254,498
============================================== ==============================================

These financial statements were approved by the board of trustees and authorised for issue on 18th July 2023, and are signed on behalf of the board by:

Lois Neal Chair of trustees

47 | P a g e

The Hospital of God at Greatham

Statement of Cash Flows

Year ended 31 October 2022

__________

2022
 2021
£ £
Cash flows from operating activities
Net income/(expenditure) (3,122,220) 2,660,675
Adjustments for:
Depreciation of tangible fixed assets 222,873 231,445
Net valuation (gains)/losses on investments 2,167,760 (2,942,299)
Net (gains)/losses on disposal of tangible fixed assets (299,102) (437,860)
Dividends, interest and rents from investments (872,420) (853,731)
Interest payable and similar changes 10,328 10,440
Increase/(decrease) in accrued liabilities 22,335 110,464
Changes in:
Trade and other debtors – (increase)/decrease (145,131) 82,649
Trade and other creditors – increase/(decrease) 49,698 60,165
-------------------------------- --------------------------------
Cash generated from/(used in) operating activities (1,965,879) (1,078,052)
Interest paid (10,328) (10,440)
-------------------------------- --------------------------------
Net cash generated from/(used in) operating activities (1,976,207) (1,088,492)
================================ ================================
Cash flows from investing activities
Dividends, interest and rents from investments 872,420 853,731
Purchase of tangible assets (28,113) (22,536)
Proceeds from sale of tangible assets 338,083 452,667
Purchases of other investments (245,522) (236,096)
Proceeds from sale of other investments 147,418 157,133
-------------------------------- --------------------------------
Net cash from investing activities 1,084,286 1,204,889
================================ ================================
Cash flows from financing activities
Loan repayments (1,094) (983)
------------------------------- -------------------------------
Net cash used in financing activities (1,094) (983)
========================= =======================
Net increase/(decrease) in cash and cash equivalents (893,015) 115,424
Cash and cash equivalents at beginning of year 3,230,120 3,114,696
---------------------------------------- ----------------------------------------
Cash and cash equivalents at end of year 2,337,105 3,230,120
========================================= =========================================

48 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements

Year ended 31 October 2022

__________

1. General information

The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales.

The charity constitutes a public benefit entity as defined by FRS 102.

As corporate trustee the company administers the endowment fund of the Hospital of God at Greatham which is an unincorporated charity. The endowment funds thus do not form part of the corporate assets of the company but are instead held on trust by the charitable company. In accordance with Charity Commission recommendations the endowment fund held on trust is included in the financial statements of the charitable company but is distinguished from the charitable company's other funds. In accordance with the Charity Commission Scheme of 27 June 2002 income generated from investments within the charity's endowment fund becomes available for use by the charitable company in furtherance of its objectives as does capital growth on the financial investments covered by the order for total return dated 15 November 2010 referred to in Note 17 of this report.

Under an Order of the Charity Commission dated 28 July 2017 the charitable company was appointed sole trustee of the Charity of Emma Simpson for Almshouses (charity reg. 222517, now 1123540-2), an unincorporated charity. The charitable company, as corporate trustee, thereby administers the endowment and other funds of the Charity of Emma Simpson for Almshouses, which do not form part of the corporate assets of the company but are instead held on trust by the charitable company in a restricted fund. In accordance with the Order, the Charity of Emma Simpson for Almshouses is treated as forming part of The Hospital of God at Greatham for the purpose of Part 8 (accounting) of the Charities Act 2011.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

49 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

Year ended 31 October 2022

__________

3. Accounting policies (continued)

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustee for particular future projects or commitments.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal and fall into one of two sub-classes: restricted income funds or endowment funds. The charity's restricted funds comprise its permanent endowment, the Stockton Relief in Need endowment fund and restricted funds relating to The Charity of Emma Simpson for Almshouses as referred to in Note 1.

Income recognition

Income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following points are applied to particular categories of income:

Expenditure recognition

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any value added tax which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

50 | P a g e

The Hospital of God at Greatham

Year ended 31 October 2022

Notes to the Financial Statements (continued)

__________

3. Accounting policies (continued)

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Increases and decreases in the carrying amount of assets as a result of revaluation are recognised in the Statement of Financial Activities.

Depreciation

Depreciation is calculated in order to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property - 2.5% reducing balance Equipment - 20% reducing balance

Investments

Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.

Investment property

Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in income or expenditure.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure.

51 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

Year ended 31 October 2022

__________

3. Accounting policies (continued)

Defined contribution pension schemes

Contributions to defined contribution pension schemes are recognised as an expense in the period in which the service is provided.

4. Limited by guarantee

The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up the liability in respect of the guarantee is limited to £1 per member of the charity.

5. Donations and legacies

Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Donations
Donations and legacies -
-		 8,615 8,615
Sponsorship and other
Sponsorship and other income 8,281
8,281		 10,438 10,438
---------------------------- ---------------------------- ---------------------------- ----------------------------
8,281 8,281 19,053 19,053
= = ========================== = =========================== ============================ ============================

6. Income from charitable activities

Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Residential care 1,674,328 - 1,674,328
Community services 740,394 - 740,394
Supported almshouses 551,957 39,097 591,054
Other charitable activities 1,720 - 1,720
----------------------------------------- ----------------------------------------- -----------------------------------------
2,968,399 39,097 3,007,496
========================================= ========================================= =========================================
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Residential care 2,750,111 - 2,750,111
Community services 830,832 - 830,832
Supported almshouses 532,275 36,356 568,631
Other charitable activities 7,136 - 7,136
----------------------------------------- ----------------------------------------- -----------------------------------------
4,120,354 36,356 4,156,710
========================================= ========================================= =========================================

52 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

Year ended 31 October 2022

__________

7. Investment income

nvestment income
Unrestricted Endowment Total Funds
Funds Funds 2022
£ £ £
Income from investment properties 607,053 – 607,053
Interest and dividends 14,786 250,581 265,367
-------------------------------- -------------------------------- --------------------------------
621,839 250,581 872,420
================================ ================================ ================================
Unrestricted Endowment Total funds
Funds Funds 2021
£ £ £
Income from investment properties 596,550 – 596,550
Interest and dividends 15,894 241,287 257,181
-------------------------------- -------------------------------- --------------------------------
612,444 241,287 853,731
================================ ================================ ================================

8. Investment management costs

Unrestricted Endowment Total Funds
Funds Funds 2022
£ £ £
Portfolio management – 172,720 172,720
Property repairs and maintenance charges 279,243 – 279,243
Support costs 93,332 – 93,332
-------------------------------- ---------------------------- --------------------------------
372,575 172,720 545,295
================================ ============================ ================================
Unrestricted Endowment Total Funds
Funds Funds 2021
£ £ £
Portfolio management – 157,133 157,133
Property repairs and maintenance charges 152,125 – 152,125
Support costs 78,974 – 78,974
-------------------------------- ---------------------------- --------------------------------
231,099 157,133 388,232
================================ ============================ ================================

53 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

Year ended 31 October 2022

_________

9. Expenditure on charitable activities by fund type

Unrestricted Restricted Endowment Total Funds
Funds Funds Funds 2022
£ £ £
Residential care 2,264,226 – – 2,264,226
Community services 687,283 – – 687,283
Supported almshouses 398,911 36,672 – 435,583
Grants 89,192 – 10,000 99,192
Fundraising fund costs 4,677 – – 4,677
Other charitable activities 145 - - 145
Support costs 1,097,592 7,766 – 1,105,358
---------------------------------------- ---------------------------------------- -------------- ----------------------------------------
4,542,026 44,438 10,000 4,596,464
================================ ========================================= ============== =========================================
Unrestricted Restricted Endowment Total Funds
Funds Funds Funds 2021
£ £ £ £
Residential care 2,947,803 – – 2,947,803
Community services 748,871 – – 748,871
Supported almshouses 489,285 40,236 – 529,521
Grants 84,620 – 12,000 96,620
Fundraising fund costs 13,529 – – 13,529
Support costs 1,016,426 6,246 – 1,022,672
Other charitable activities 1,730 – – 1,730
---------------------------------------- ---------------------------------------- -------------- ----------------------------------------
5,302,264 46,482 12,000 5,360,746
========================================= ================================= ======================= =========================================

10. Expenditure on charitable activities by activity type

Activities
undertaken Support Total funds Total fund
directly costs 2022 2021
£ £ £ £
Residential care 2,264,226 380,439 2,644,665 3,436,500
Community services 687,283 500,562 1,187,845 1,077,874
Supported almshouses 435,583 191,559 627,142 705,551
Grants 99,192 32,798 131,990 125,562
Fundraising fund costs 4,677 – 4,677 13,529
Other charitable costs 145 – 145 1,730
----------------------------------------- -------------------------------- ----------------------------------------- -----------------------------------------
3,491,106 1,105,358 4,596,464 5,360,746
========================================= ================================ ========================================= =========================================

All grants made were awarded to organisations and no grants were paid to individuals. The highest grant awarded to any organisation during the year was £3,000 and no single organisation received more than £3,000 in grants during the year. All grants awarded are unconditional.

54 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

Year ended 31 October 2022

_________

11. Net unrealised gains on investments

Unrestricted Restricted Endowment Total Funds
Funds Funds Funds 2022
£ £ £ £
Unrealised gains/(losses) on listed
investments (64,472) (1,833) (2,101,455)
(2,167,760)
================================ ============================ ================================ ================================
Unrestricted Restricted Endowment Total Funds
Funds Funds Funds 2021
£ £ £
Unrealised gains/(losses) on listed
investments 207,845 14,652 2,719,802 2,942,299
================================ =============================== ================================ ================================
12. Net income
Net income is stated after charging:
2022 2021
£ £
Auditor’s remuneration 8,840 8,220
Depreciation of tangible fixed assets 222,873 231,445
================================ ================================

13. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

2022 2021
£ £
Wages and salaries 2,331,166 2,792,106
Social security costs 172,475 183,553
Employer contributions to defined contribution pension schemes 47,803 52,070
Employer contributions to defined benefit pension schemes 72,667 72,057
Operating costs of defined benefit pension scheme 46,200 33,573
----------------------------------------- -----------------------------------------
2,670,311 3,133,359
========================================= =========================================

Included in employer contributions to defined benefit schemes is a payment of £48,000 to the Greatham Hospital Pension Scheme under the agreed deficit recovery plan. Further details are given in Note 22 to these accounts.

The average head count of employees during the year was 114 (2021: 164), analysed as follows:

The average head count of employees during the year wa s114(2021: 164), analysed as follow s:
2022 2021
No. No.
Management and administration 13 12
Care services 99 149
Estate 2 3
-------------- --------------
114 164
============== ==============

55 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

Year ended 31 October 2022

__________

The number of employees, whose remuneration for the year fell within the following bands, was:

2022 2021
No. No.
£70,000 to £79,999 1 1
-------------- --------------

Key Management Personnel

Key management personnel include all persons that have authority and responsibility for planning, directing, and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £273,676 (2021: £222,559).

14. Trustee remuneration and expenses

No remuneration was paid to the trustees.

15. Tangible fixed assets

Tangible fixed assets
Freehold
property Equipment Total
£ £ £
Cost
At 1 November 2021 12,994,537 204,445 13,198,982
Additions at cost - 28,113 28,113
Transfer from other charity - - -
Revaluation of almshouse properties - - -
-
Disposals (83,016) (300) (83,316)
---------------------------------------------- -------------------------------- ----------------------------------------------
At 31 October 2022 12,911,521 232,258 13,143,779
============================================== ================================ ==============================================
Depreciation
At 1 November 2021 4,360,261 164,237 4,524,498
Charge for the year 214,890 7,983 222,873
Disposals (44,335) - (44,335)
---------------------------------------------- -------------------------------- ----------------------------------------------
At 31 October 2022 4,530,816 172,220 4,703,036
============================================== ================================ ==============================================
Carrying amount
At 31 October 2022 8,380,705 60,038 8,440,743
============================================== ================================ ==============================================
At 31 October 2021 8,634,276 40,208 8,674,484
============================================== ================================ ==============================================

During the year one freehold property was disposed of. The net proceeds from the sales amounted to £337,777 and this sum was added to the Building Fund during the year.

56 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

Year ended 31 October 2022

__________

16. Investments

Investments
Listed Investment
investments properties Total
£ £ £
Cost or valuation
At 1 November 2021 24,417,375 11,418,250 35,835,625
Additions 245,522 – 245,522
Disposals (147,418) – (147,418)
Fair value movements (2,167,760) – (2,167,760)
---------------------------------------------- ---------------------------------------------- ----------------------------------------------
At 31 October 2022 22,347,719 11,418,250 33,765,969
======================================= ======================================== ==========================================
Impairment
At 1 November 2021 and 31 October 2022 – – –
================================== ================================= =========================================
Carrying amount
At 31 October 2022 22,347,719 11,418,250 33,765,969
========================================== ========================================== ===========================================
At 31 October 2021 24,417,375 11,418,250 35,835,625
========================================== ========================================== ===========================================

All investments shown above are held at valuation.

Listed investments

The charity's listed investments are largely held within a portfolio of investments managed by the charity's professional fund managers with some additional direct holdings in common investment funds. The managed portfolio holds investments in the form of equities, fixed income securities, hedge funds and commodities all of which are part of publicly traded markets where trading is based upon quoted prices. The fair value of all holdings is based upon the quoted market prices of the various holdings. The managed portfolio also includes foreign currency contracts which act as a hedge against the effect of currency fluctuations within the portfolio. The fair value of foreign currency forward contracts within the managed portfolio is based on the difference between the exchange rate agreed at the inception of the forward contract and the exchange rate prevailing at the reporting date.

An analysis of listed investments by fund is as follows: 2022 2021
£ £
Permanent endowment fund 21,104,274 23,096,752
Non-permanent endowment funds 134,273 145,145
---------------------------------------------- ----------------------------------------------
Total endowment funds 21,238,547 23,241,897
Restricted funds 66,657 68,489
Unrestricted funds 1,042,515 1,106,989
---------------------------------------------- ----------------------------------------------
22,347,719 24,417,375
================================ ================================

Investment properties

All fixed asset investments are held within the United Kingdom. The investment properties are stated at open market valuation. A full professional valuation was carried out at 31 October 2013 by Thomas Stevenson, Chartered Surveyors. The trustees are of the opinion that this valuation continues to represent the open market value of the portfolio at the balance sheet date. The investment properties are assets of the charity’s permanent endowment fund.

57 | P a g e

The Hospital of God at Greatham

Year ended 31 October 2022

Notes to the Financial Statements (continued)

__________

17. Total return approach to investment of permanent endowment

The charity’s listed investments include the charity's managed endowment fund investment portfolio. This portfolio is accounted for on a total return basis in accordance with an order for total return received on 15 November 2010 from the Charity Commission.

During the year the charity made a transfer from unapplied total return to the trust for endowment in order to maintain the real value of the trust for investment. The amount transferred each year is based on an average of the RPI and CPI indices prevailing during the period since the trust value for endowment was established in 2010. This year the transfer amounted to £2,544,466.

The movements in the trust for investment and the unapplied total return during the year are as follows:

Endowment investments subject to total
return		 Trust for
investment
£		 Unapplied
total return
£		 Total
£
At 31 October 2021
Gift component of the permanent endowment 19,065,559 - 19,065,559
Unapplied total return - 4,011,338 4,011,338
___ ___ ___
Total at 31 October 2021 19,065,559 4,011,338 23,076,897
====================================== ====================================== ======================================
Movements in the reporting period
Investment returns - dividends and interest - 245,522 245,522
Investment returns – realised and unrealised gains
and (losses)		 - (2,088,847) (2,088,847)
Additions to trust for investment - - -
Income repaid to unapplied total return in year - - -
Less: Investment management costs - (147,418) (147,418)
_ __ __
Total movements in the reporting period before
transfers		 - (1,990,743) (1,990,743)
Transfer from unapplied total return to maintain
real value of trust for investment		 2,544,466 (2,544,466) -
__ __ __
Net movements in the reporting period 2,544,466 (4,535,209) (1,990,743)
====================================== ====================================== =======================================
At 31 October 2022
Gift component of the permanent endowment 21,610,025 - 21,610,025
Unapplied total return - (523,871) (523,871)
___ ___ ___
Total at 31 October 2022 21,610,025 (523,871) 21,086,154
====================================== ====================================== ======================================

58 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

Year ended 31 October 2022

__________

18. Debtors
2022 2021
£ £
Trade debtors 200,128 195,107
Prepaid expenses 123,432 83,283
Accrued income and sundry debtors 146,480 46,519
-------------------------------- --------------------------------
470,040 324,909
================================ ================================
19. Creditors: amounts falling due within one year
2022 2021
£ £
Trade creditors 358,311 295,724
Accruals and deferred income 248,120 225,785
Social security and other taxes 30,141 43,030
Mortgage loan 1,221 1,095
-------------------------------- --------------------------------
637,793 565,634
================================ ================================

20. Creditors: amounts falling due after more than one year

Creditors: amounts falling due after more than one year
2022 2021
£ £
Mortgage loan 90,786 92,006
============================ ============================

The mortgage loan was transferred to the charity from the Stockton Almshouses Charity during the year ended 31 October 2010. The mortgage loan is secured by a legal charge over the property at Trinity Gardens, Stockton on Tees.

21. Pension scheme asset / (provision for liabilities)

Pension scheme asset / (provision for liabilities)
Pensions and
similar
obligations
Note 22
£
At 1 November 2021 (liability) (153,000)
Decrease in provision during the year 362,000
--------------------------------
At 31 October 2022 (asset) 209,000
================================

This represents the net valuation, under FRS102, of the assets and liabilities of the Greatham Hospital Pension Scheme, a defined benefit pension scheme of which the charity is the sole sponsoring employer. Further information about this scheme and its valuation is given in Note 22 below.

59 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

Year ended 31 October 2022

__________

22. Pensions and other post-employment benefits

Defined contribution plans

The amount recognised in expenditure as an expense in relation to defined contribution plans was £47,803 (2021: £52,070).

Defined benefit plans

The charity operates and is the sole sponsoring employer of the Greatham Hospital Pension Scheme (“the scheme"), a defined benefit pension scheme which provides benefits based on final salary and length of service on retirement, leaving service or death. The pension scheme was closed to new members on 14 December 2005.

The scheme is managed by a board of trustees appointed in part by the charity and in part from elections by scheme members. The trustees have responsibility for obtaining valuations of the fund, administering benefit payments and investing the scheme’s assets. The trustees delegate some of these functions to their professional advisers where appropriate.

The scheme is subject to the statutory funding objective under the Pensions Act 2004. A valuation of the scheme is carried out at least once every three years to determine whether the statutory funding objective is met. As part of the process the employer must agree with the trustees of the scheme the contributions to be paid to meet the statutory funding objective.

The most recent comprehensive actuarial valuation of the scheme was carried out as at 31 October 2019. This valuation calculated an actuarial deficit of £230,000 as at that date. To eliminate this funding shortfall the trustees and the scheme have jointly agreed a recovery plan whereby the charity makes an additional contribution of £48,000 to the scheme each year, with the first payment in November 2020 and the final payment in November 2024. These contributions are expected to eliminate the shortfall by November 2024.

The next valuation of the scheme is due at 31 October 2022. At the date of signing of this report, this valuation is underway and is due to be completed by 31 January 2024. In the event that this valuation reveals a larger deficit than expected, the charity may be required to increase contributions above those set out in the existing schedule of contributions. Conversely if the position is better than expected, it is possible that contributions may be reduced.

As the scheme remains open to future accrual, the employer pays contributions to the scheme for future service benefits. During the year ended 31 October 2022 the employer paid contributions at the rate of 28% of gross pensionable salary for active members in accordance with the schedule of contributions. Employees who are active members are not required to make any contribution. The charity expects to pay contributions of around £59,400 to the scheme during the year to 31 October 2023, including the agreed £48,000 deficit recovery payment.

The charity administers the scheme and meets all running costs of the scheme. During the year ended 31 October 2022 the total of all such costs amounted to £46,200 (2021: £33,573), excluding the wages and salaries of Hospital of God management and staff who assist with the administration of the scheme.

The following disclosures have been provided by the scheme actuary to meet the requirements of FRS 102 for the purposes of these accounts.

At 31 October 2022 there was a surplus of £209,000. This compares to a deficit of £153,000 at the previous review date. The reduction in the deficit over the period is primarily due to favourable changes to market conditions over the period which has reduced the value placed on the liabilities coupled with the payments made by the charity to the scheme under the recovery plan. This has been partially offset by reductions in the scheme’s assets. The surplus is recognised as an asset in these accounts as it is considered that this surplus will generate a future economic benefit for the charity in the form of reduced future contributions.

There were no plan amendments, curtailments or settlements during the period.

60 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

Year ended 31 October 2022

__________

Explanation of amounts in the financial statements

The amount recognised in the Statement of Financial Position is as follows:

Amounts recognised in the
Statement of Financial Position		 As at
31 October 2022
£		 As at
31 October 2021
£
Fair value of assets 2,628,000 3,686,000
Present value of funded obligations (2,419,000) (3,839,000)
Net defined benefit asset/(liability) 209,000 (153,000)

The fair value of the scheme’s investment assets at 31 October 2022 analysed by major asset class is as follows:

Asset class 31 October 2022
£
Diversified growth fund 1,719,000
Index linked gilts 594,000
Corporate bonds 308,000
Net current assets 7,000
Total 2,628,000

The actual return on the scheme’s assets during the year was a loss of £1,029,000 (2021: gain of £369,000).

The change in the fair value of the scheme’s assets over the year is as follows:

Change in fair value of scheme assets As at
31 October 2022
£		 As at
31 October 2021
£
Fair value of scheme assets at the
beginning of theyear		 3,686,000 3,361,000
Interest on assets 64,000 57,000
Charity’s contributions paid to scheme in year 73,000 72,000
Contributions by scheme participants 0 0
Benefits paid by scheme in year (102,000) (116,000)
Administration costs 0 0
Change due to settlements 0 0
Return on scheme assets less interest (1,093,000) 312,000
Fair value of scheme assets at the end of
theyear		 2,628,000 3,686,000

61 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

Year ended 31 October 2022

__________

The change in the present value of the scheme’s funded defined benefit obligations over the year is as follows:

Change in present value of defined
benefit obligations		 As at
31 October 2022
£		 As at
31 October 2021
£
Defined benefit obligations of the
scheme at the beginning of theyear		 3,839,000 3,565,000
Current service cost 32,000 27,000
Contributions by scheme participants 0 0
Past service cost 0 0
Interest cost 66,000 60,000
Benefits paid by scheme in year (102,000) (116,000)
Change due to settlements 0 0
Experience (gain)/loss on defined benefit
obligation		 82,000 0
Changes to demographic assumptions 17,000 0
Changes to financial assumptions (1,515,000) 303,000
Defined benefit obligations of the
scheme at the end of the year		 2,419,000 3,839,000

The net amount recognised in the Statement of Financial Activities is as follows:

Net amount recognised in the
Statement of Financial Activities		 Year ended
31 October 2022
£		 Year ended
31 October 2021
£
Total income/(costs) recognised in the year,
asdetailedbelow		 (34,000) (30,000)
Total re-measurement gains/(losses) in the
year, asdetailedbelow		 323,000 9,000
Employer contributions 73,000 72,000
Net amount recognised in the
Statement of Financial Activities		 362,000 51,000

62 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

Year ended 31 October 2022

__________

The income and costs recognised in the year are as follows:

Costs/(income) recognised in the year Year ended
31 October 2022
£		 Year ended
31 October 2021
£
Current service cost 32,000 27,000
Administration costs - -
Interest on liabilities 66,000 60,000
Interest on assets (64,000) (57,000)
Past service cost - -
Settlement cost - -
Total costs/(income) recognised in the
**year **		 34,000 30,000

The re-measurement gains and losses recognised in the year are as follows:

Re-measurement losses/(gains)
recognised in the year		 Year ended
31 October 2022
£		 Year ended
31 October 2021
£
Loss/(gain) on scheme assets in excess of
interest		 1,093,000 (312,000)
Experience losses/(gains) on liabilities 82,000 0
Losses/(gains) from changes to demographic
assumptions		 17,000 0
Losses/(gains) from changes to financial
assumptions		 (1,515,000) 303,000
Total re-measurement losses/(gains)
**recognised inthe year **		 (323,000) (9,000)

63 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

Year ended 31 October 2022

_________

Principal assumptions

The principal assumptions used to calculate scheme liabilities in accordance with FRS102 are as follows:

31 October 2022 31 October 2021
Discountrate 4.65% pa 1.75% pa
Inflation(RPI) 3.20% pa 3.40% pa
Inflation(CPI) 2.80% pa 2.90% pa
Salaryincreases 3.20% pa 3.40% pa
Pension increases- discretionary 1.35% pa 1.40% pa
Pension increases-CPI max5% 2.70% pa 2.80% pa
Pension increases- RPI max 2.5% 2.20% pa 2.30% pa
Post retirement mortality S3NA tables with CMI
2021 projections using a
long-term improvement
rate of 1.50% pa		 S3NA tables with CMI
2018 projections using a
long-term improvement
rate of 1.50% pa
Commutation Members are assumed to
as cash at		 take 20% of their pension
retirement
Life expectancy at age 65 of male aged 45 24.0 24.1
Life expectancy at age 65 of male aged 65 22.4 22.4
Life expectancy at age 65 of female aged
45		 26.6 26.5
Life expectancy at age 65 of female aged
65		 24.9 24.8

64 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

Year ended 31 October 2022

_________

23. Analysis of charitable funds

Unrestricted funds
At Gains and At
1 Nov 2021 Income Expenditure Transfers losses 31 Oct 2022
£ £ £ £ £
General fund (291,775) 3,588,518 (4,611,260)
306,418		 297,528 (710,571)
Fundraising fund 43,036 8,281 (4,677)
-		 - 46,640
Building Fund 922,256 -
-		 337,777 1,260,033
Development fund 590,299 -
-		 (590,299) - -
Extraordinary
repair fund 1,791,614 1,720
(298,664)
376,704		 - 1,871,374
----------------------------------------- ----------------------------------------- ----------------------------------------- -------------------------------- -------------------------------- -----------------------------------------
3,055,430 3,598,519
(4,914,601)		 430,600
297,528
2,467,476
========================================= ========================================= ========================================= ================================ ================================ =========================================
Restricted funds
At Gains and At
1 Nov 2021 Income Expenditure Transfers losses
31 Oct 2022
£ £ £ £ £
The Charity of
Emma Simpson for
Almshouses 1,062,927 39,097 (44,438) - (1,833) 1,055,753
=============================== =============================== -=============================== =============================== =============================== ===============================
Endowment funds
At Gains and At
1 Nov 2021 Income Expenditure Transfers losses
31 Oct 2022
£ £ £ £ £
Permanent
Endowment Fund 42,968,243 246,050 (172,720) (430,600) (1,791,480) 40,819,493
Stockton Relief in
Need Fund 167,898 4,531 (10,000) - (10,873) 151,556
---------------------------------------------- -------------------------------- ---------------------------- ---------------------------- -------------------------------- ----------------------------------------------
43,136,141 250,581 (182,720) (430,600) (1,802,353) 40,971,049
============================================== ================================ ============================ ======================== ================================ ==============================================

During the year the balance in the Development Fund, which is an unrestricted fund, was transferred to the General Fund.

65 | P a g e

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

Year ended 31 October 2022

_______

24. Analysis of net assets between funds

2022
Unrestricted Restricted Endowment
funds funds funds Total funds
£ £ £
Fixed assets
Tangible fixed assets 60,038 832,636 7,548,069 8,440,743
Investments – investment properties - - 11,418,250 11,418,250
Investments – listed investments 1,042,515 66,657 21,238,547 22,347,719
----------------------------------------- ----------------------------------------- ----------------------------------------- -----------------------------------------
1,102,553 899,293 40,204,866 42,206,712
========================================= ======================================= ================================ =========================================
Net current assets
Debtors 470,040 – – 470,040
Cash at bank and in hand 2,337,105 – – 2,337,105
Creditors due within one year (612,491) – (25,302) (637,793)
Inter-fund balances (947,945) 156,460 791,485 –
----------------------------------------- ----------------------------------------- -------------------------------- -----------------------------------------
1,246,709 156,460 766,183 2,169,352
========================================= ======================================= ================================ =========================================
Total assets less current
liabilities 2,349,262 1,055,753 40,971,049 44,376,064
Creditors: amounts falling due after
more than one year (90,786) – – (90,786)
Pension scheme asset 209,000 – – 209,000
--------------------------------------------- --------------------------------------------- --------------------------------------------- ---------------------------------------------
Net assets (total funds) 2,467,476 1,055,753 40,971,049 44,494,278
============================================== ============================================== ============================================== ==============================================
2021
Unrestricted Restricted Endowment
funds funds funds Total funds
£ £ £
Fixed assets
Tangible fixed assets 40,214 853,986 7,780,284 8,674,484
Investments – investment properties - - 11,418,250 11,418,250
Investments – listed investments 1,106,989 68,489 23,241,897 24,417,375
----------------------------------------- ----------------------------------------- ----------------------------------------- -----------------------------------------
1,147,203 922,475 42,440,431 44,510,109
========================================= ======================================= ================================ =========================================
Net current assets
Debtors 324,909 – – 324,909
Cash at bank and in hand 3,230,120 – – 3,230,120
Creditors due within one year (565,634) – – (565,634)
Inter-fund balances (836,162) 140,452 695,710 –
----------------------------------------- ----------------------------------------- -------------------------------- -----------------------------------------
2,153,233 140,452 695,710 2,989,395
========================================= ======================================= ================================ =========================================
Total assets less current
liabilities 3,300,436 1,062,927 43,136,141 47,499,504
Creditors: amounts falling due after
more than one year (92,006) – – (92,006)
Provisions for liabilities (153,000) – – (153,000)
--------------------------------------------- --------------------------------------------- --------------------------------------------- ---------------------------------------------
Net assets (total funds) 3,055,430 1,062,927 43,136,141 47,254,498
============================================== ============================================== ============================================== ==============================================

66 | P a g e

Year ended 31 October 2022

The Hospital of God at Greatham

Notes to the Financial Statements (continued)

_______

25. Trustee related party transactions and interests

Robert Eden, who served as trustee during the year, was during the year an employer-nominated trustee of the Greatham Hospital Pension Scheme, of which the charity is the sponsoring employer.

Trustees are reimbursed for their travel on a mileage basis. During the year three trustees were paid a combined total of £470 in respect of their travelling costs (2021: Nil).

26. Going concern

The trustees consider that the charity is a going concern and that there are no material uncertainties or events which cast doubt upon its ability to continue as a going concern. In assessing the going concern position of the charity for the year ended 31[st] October 2022 the trustees have considered the future outlook and in doing so looked at the future operating results, cash flows and facilities available. Based on these facts the going concern basis has been adopted in the preparation of the financial statements.

END

67 | P a g e