## **HUGH SEXEY’S HOSPITAL** ## **REPORT OF THE VISITORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020** Company Registration Number 6906918 Charity Registration Number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **INDEX TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020** ||Page| |---|---| |Report of the Visitors|2 - 8| |Independent Auditor's Report|9 - 10| |Statement of financial activities|11| |Balance sheet|12| |Cashflow Statement|13| |Accounting policies|14 - 15| |Notes to the financial statements|16 - 23| Page 1 Company registration number 6906918 Charity registration number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **REPORT OF THE VISITORS FOR THE YEAR ENDED 31 OCTOBER 2020** The trustees, who are known as the Visitors, are pleased to present their annual report together with the financial statements of the charity for the year ending 31 October 2020 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102). ## **REFERENCE AND ADMINISTRATIVE DETAILS** ## **Visitors (all are Trustees, and Directors of the charitable company** ): J A F Buxton (Chairman) E.Bond M.Bowman Dr S Davidson P Hadow (Retired 31 March 2021) General Sir Alex Harley I Hepburn R Hill (Resigned 17 June 2020) E Hobhouse The Hon. A T P Jolliffe Mrs A Lee Mrs E Showering (Appointed 10 January 2020) M Stanley Smith Mrs L Sunnucks Mrs E F Winkley (Retired 31 March 2021) ## **Officers and Advisors** |The Master|Col. Simon Bate OBE| |---|---| |Registered Office|Hugh Sexey's Hospital, Bruton, Somerset, BA10 0AS| |Finance Manager|Andrew Mullett FCA| |Land Agents|Fowler Fortescue, The Old Dairy, Fonthill Bishop, Salisbury| |Investment Advisers|Sarasin & Partners LLP, Juxon House, 100 St Paul's Churchyard, London| |Bankers|CAFBank Ltd, Kings Hill, West Malling, Kent| |Auditors|MHA Monahans, Fortescue Ho, Court St, Trowbridge, Wilts| |Solicitors|Loxleys, Langford Mill, Wotton-Under-Edge, Glos.| ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** **Governing document -** Hugh Sexey’s Hospital is a charitable company limited by guarantee, incorporated and registered as a charity in 2009. The guarantors are the members to the extent of £1 each. **Appointment of Trustees / Visitors -** the Trustees of the charity, who are known as the Visitors, are also all directors of the charitable company. Up to fifteen Visitors may be appointed in accordance with the provisions of the charitable company's Articles. All Visitors give their time voluntarily and receive no benefits from the charitable company. **Visitor induction and training -** as part of the induction process, new Visitors are briefed on the background and history of the Hospital. This briefing takes the form of meetings with the Chairman, other Visitors, the Master and the Finance Manager, and the provision of a file of relevant documents. Thereafter, Visitors are circularised with the publications of the Almshouse Association and encouraged to attend their Seminars. Page 2 Company registration number 6906918 Charity registration number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **REPORT OF THE VISITORS FOR THE YEAR ENDED 31 OCTOBER 2020** ## **STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)** **Organisation** - the Visitors, who are all unremunerated, meet four times a year; there are sub-committees covering House, Buildings, Finance, Investment Properties and Giving. The Visitors receive regular reports from the Master, Finance Manager, Land Agents, and Investment Advisers, and make all policy decisions. **Staffing** - a Master, Warden, Assistant Warden, Housekeeper and Gardener are employed in the Hospital; their remuneration is reviewed annually by the Visitors, taking into account changes in their roles and responsibilities and comparison to remuneration levels for similar roles in other organisations. **Risk management** - the Visitors have an on-going detailed risk assessment process to identify the major risks to which the Hospital is exposed, review the relative significance of the risks that were identified through an assessment of their risk and probability, and then satisfy themselves as to the adequacy of the systems established to manage and mitigate these risks. This assessment is regularly reviewed and updated by the Visitors, most recently in October 2020. The most significant risks are assessed as being in relation to the: - Safety, security and wellbeing of the Hospital residents; - Rates of occupancy within the Hospital; - Maintenance of the Hospital fabric; - Management and control of the investment portfolio; - Need to fund future investments in the Blackford Estate; - Ability of the Hospital to manage capital projects, in particular the Blackford Room. ## **OBJECTIVES AND ACTIVITIES** The main objects of the charitable company are: - The provision of housing accommodation in the almshouses known as Hugh Sexey's Hospital, Bruton, for elderly people (the 'residents') who are in need, hardship, or distress - Such charitable purposes for the benefit of the residents as the Visitors decide - Such other charitable purposes as the Visitors decide The Visitors fulfil these objectives by administering the Almshouses, which provide subsidised accommodation in twenty-five flats within the Hospital buildings, fostering the schools established by the founder of the Hospital, and making donations for charitable purposes, mainly for the benefit and well-being of the young and the elderly or to other charities with similar objectives. The Hospital has a permanent endowment comprising the Blackford Estate (an agricultural estate on the Somerset Levels), residential properties at Blackford and Bruton, and an investment portfolio. The income from the endowment is used to subsidise the running costs of the Hospital, provide for its continuing upkeep, and fund the other charitable activities. ## **Public Benefit** The Visitors have reviewed the Charity Commission's guidance on the requirement to report on public benefit. They are satisfied that the work of the Hospital, as described below, accords with its stated objects and provides tangible public benefit to an appropriate section of those who reside within the charitable company’s area of benefit; they believe that the criteria used to assess those who may benefit are not unreasonably restrictive. Page 3 Company registration number 6906918 Charity registration number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **REPORT OF THE VISITORS FOR THE YEAR ENDED 31 OCTOBER 2020** ## **OBJECTIVES AND ACTIVITIES (continued)** ## **Public Benefit (continued)** The Visitors have also taken notice of the Charity Commission guidance on the charging of fees. They are currently updating an existing exercise to assess the levels of residents' contributions, which previously showed that on average residents pay only two thirds of a comparable open market rentals, Residents who face financial difficulties are encouraged to apply for Housing and Council Tax Benefits – if any still faced hardship, the Visitors would consider waiving some or all contributions due. ## **ACHIEVEMENTS AND PERFORMANCE** This has been a difficult year with COVID restrictions being put in place from mid-March. The Hospital was closed, and we followed Government guidelines with regard to social distancing and socialising. This placed challenges on both staff and Residents, particularly as it meant that most contact, unless by exception, was undertaken by telephone or impromptu conversations. Fortunately, warm weather over the summer months made it easier for people to meet at a distance outside, normally in groups of no more than two or three people. Support bubbles were also created and family members, again limited in number, could visit. During the year occupancy in the Almshouses remained very high and we had no voids. A list of interested potential residents was maintained and regular contact was maintained between them and the Master. The big success this year has been the completion of the Blackford community room project. The Blackford Room is a 170 sq. m community room built by CG Fry and Sons Ltd, a local builder, and designed by Stephen Marshall Architects. Project scoping, planning, and funding took the Visitors close to four years, the project finally starting in August 2019, to commemorate the 400th anniversary of the death of our founder, Hugh Sexey. The building took 15 months to complete, hampered by an enforced closure caused by the COVID - 19 pandemic and was finally completed in October 2020. The room will be a real game changer for the future social outlook and well-being of our Residents. It has a purpose-built kitchen, and it provides access for all, with a lift designed to assist Residents from moving from one floor to another. The overall cost of the project was £1,265,292, being building costs of £1,011,700, professional fees of £204,102, and other costs including fixtures and furnishings of £49,490. £154,969 was raised from a fundraising campaign organised by Complete Fundraising Ltd, overseen by the charity and supported by an influential group of vice -patrons from within Somerset, together with a private donation of £50,000. In addition, in 2019 the charity sold some of its land assets raising £842,540, the remainder of the cost of £217,783 being funded from the Hospital’s accumulated reserves in this and previous years. The garden continued to thrive but whereas in previous years, surplus produce was sold through donations at our main gate, this year because of COVID this was not possible so we donated surplus produce to the Balsam Centre in Wincanton, who used it as they prepared and distributed meals for those in need locally. Quinquennial repairs and refurbishment have continued through the year, where possible concentrating on external works. We have also completed Phase 1 of the new boiler project, building a new smaller boiler room in the cellar that supports the properties in the main courtyard, as well as the Garden and Music Flats. A Giving Committee agrees the Hospital's policy for external donations, in compliance with the third of the Hospital’s objects, and distributes funds accordingly. However, in view of the high level of expenditure in the previous and current year, no further amounts have been allocated for giving. Page 4 Company registration number 6906918 Charity registration number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **REPORT OF THE VISITORS FOR THE YEAR ENDED 31 OCTOBER 2020** ## **FINANCIAL REVIEW** ## **Financial results** Investment income amounts to £381,602, an increase of £16,261 (4.5%), arising from increased investment property rental income and dividends. Residents’ contributions were increased by 2.5% from September 2020 and amounted to £166,537. After receipt of donations amounting to £221,575, including £216,720 (2019 £53,808) received towards the Blackford Room, total income increased by £176,573 to £769,714. Expenditure on raising funds comprises costs of managing and maintaining the investment properties, managing the investment portfolio, and fundraising towards the Blackford Room, and amounted to £133,474, an increase of £27,503 which was all attributable to increased fundraising costs (charged as a percentage of amounts raised). Hospital operating costs have fallen by £68,860 to £301,007. Day-to-day running costs have increased slightly by £3,219 but Hospital repair costs have fallen by £70,667 to £62,369 – these by their nature fluctuate significantly from year to year, as various repair projects are carried out, which was further impacted by Covid-19 which meant that scheduled works were deferred. Administration and governance costs have fallen by £5,724 as a result of fees incurred in the previous year respect of advice on VAT matters. External grants to local schools amounted to £932 (last year £932). Exceptional costs of £1,162,125 were incurred in the year (2019 £348,501). The majority of these were the costs of completing the Blackford Room, which amounted to £926,775; in addition £173,223 was spent on upgrading the Hospital heating system and boilers, there were costs of £52,082 incurred in connection with ongoing development schemes for various investment properties, and professional fees of £10,045 for future Estate planning matters. After inclusion of all expenditure, which amounted to £1,624,137 including exceptional costs, there was an overall deficit for the year, before inclusion of gains on investments, of £854,423 (2019 £263,453 deficit). The Estate properties were revalued by the Hospital’s Agents, Fowler Fortescue, at 31 October 2019 which gave rise to a surplus of £891,950, including realised gains on property sales; there have been no changes in valuation this year. There was a further increase of £79,308 in the value of the investment portfolio (2019 £272,656 increase in value). After including all expenditure on the Blackford Room and investment gains, overall funds have fallen by £775,115 (2019 £901,153 increase, including property revaluations) and amounted to £16,915,955 at the year-end. The Endowment Fund fell in value by £837,532 to amount to £16,329,518 while there was an unrestricted surplus of £62,417 arising in the year so Unrestricted Funds increased to £586,437. ## **Information on Fundraising Agreements with Third Parties** (as required by the Charities Act 2016) Hugh Sexey’s Hospital engaged Complete Fundraising Ltd to assist with fundraising towards the cost of the Blackford Room. In the year to 31 October 2020 they raised a total of £156,720, at a cost to the Hospital of £45,272 (inclusive of VAT). Since the year-end fundraising activities have continued, a further £9,000 (gross) having been raised so far this year. The activities of the fundraisers were regularly reviewed by the Visitors and the Master during the year; they adhere to the Institute of Fundraising guidelines for dealing with vulnerable people, and no complaints were received in respect of the fundraising activities carried out on behalf of the Hospital. Page 5 Company registration number 6906918 Charity registration number 1130351 ## HUGH SEXEY'S HOSPITAL (A charitable company limited by guarantee) ## **REPORT OF THE VISITORS FOR THE YEAR ENDED 31 OCTOBER 2020** ## **FINANCIAL REVIEW (continued** ) ## **Heritage Assets - Hospital properties** In 2004 a desktop valuation of the Hospital was carried out, based on existing use values, which attributed a value of £1,100,000 to the Hospital. In view of the historic nature of the buildings and their central place within the activities of the Hospital, the Visitors do not believe that the cost of further revaluations can be justified. In order to ensure that the Hospital properties are kept fully maintained, the Visitors have a policy of undertaking quinquennial reviews of the state of the buildings – this review was carried out during 2018 by the Hospital’s architects and a costed programme of works drawn up to cover all matters identified. In October 2020 the Blackford Room was completed, at a total cost of £1.25m; the Visitors consider that this cost fails to meet the test for capitalisation of expenditure as there is no subsequent economic benefit arising from this expenditure, and no new charitable outputs, so it has been fully written off against Endowment Funds – there was a residual cost of £97,683 which was written off against the Income Fund. ## **Investments** Hugh Sexey’s Hospital is a permanent endowment, with assets held in perpetuity. The investments comprise agricultural and residential properties, which comprise 78% of the value of the investments, and an investment portfolio. The Visitors regularly review the constituent parts of the Hospital's endowment, to monitor the balance between the values of the investment properties and the Stock Exchange investments but realise that with fluctuations in values, the ratio will change over time. ## **Investment Properties** The Visitors employ agents, Fowler Fortescue, to manage their investment properties, known as the Blackford Estate, and a long-term management strategy is being implemented. It is not possible to adopt a Total Asset Return basis for the investment properties as their illiquid nature means it is impossible to withdraw any unrealised gains without disposing of properties. Fowler Fortescue carried out a desktop revaluation of the Estate on an Open Market Value basis at 31 October 2019, valuing the properties at £12,131,410, an increase in value of £816,410 which was credited to the Permanent Endowment Fund. No subsequent revaluation has taken place in the current year – after taking advice, the Visitors do not believe there have been any subsequent changes in values during the year. A review of the agents was carried out in 2021 and after a competitive tender exercise, Fowler Fortescue have been reappointed. ## **Quoted Investment Portfolio** The Visitors adopted in 2011 a Total Return approach to investment management. All investment returns, whether income or realised and unrealised gains and losses, are brought into the Permanent Endowment Fund and the Visitors then agree an annual transfer from the accumulated unapplied total return to the Income Fund, to subsidise the running costs of the Hospital. The Visitors believe this gives a fair balance between the interests of current and future beneficiaries. In 2011 the Permanent Endowment investments were valued at £2,271,405 and a further £357,276 has been subsequently invested, a total of £2,628,681 after cash of £1,140,343 was withdrawn to fund the Blackford Room construction After discussions with the investment managers the annual transfer to the Income Fund was set at 3% of the opening value of the portfolio (excluding cash balances), or £101,200. Total investment returns in the year amounted to £153,932 (2018-19 £337,935) - actual income received of £108,515 was slightly in excess of the target so this amount has been credited to the Income Fund, leaving £45,417 credited to Unapplied Total Return, so the cumulative balance since the policy was adopted now amounts to £761,972. When added to the Capital balance, the closing portfolio has a value of £3,390,653 (2019 £4,485,579). Page 6 Company registration number 6906918 Charity registration number 1130351 HUGH SEXEY'S HOSPITAL (A charitable company limited by guarantee) ## **REPORT OF THE VISITORS FOR THE YEAR ENDED 31 OCTOBER 2020** ## **RESERVES POLICY** At the start of the year, total unrestricted funds were in surplus by £524,020. During the year, unrestricted funds have increased by £62,417 to amount to £586,437 at the year-end. Under the terms of the Hospital's governing documents, the Visitors are obliged to maintain the Hospital, which is a Grade I listed building and inalienable, and they believe it prudent to maintain reserves in a designated Building Fund to allow them to cover anticipated repair costs for both the Hospital and the investment properties. The Visitors considered the amount that should be held, in light of the works revealed in the quinquennial survey of the Hospital carried out in 2018 which were costed at £230,000, and decided that a fund balance of approximately £240,000 is appropriate. This year a transfer of £130,000 has been made into the Building Fund. As a result of restrictions imposed as a result of Covid-19 the repairs programme was curtailed, so expenditure amounted to only £73,903, giving rise to a surplus of £56,097, so the closing Fund balance amounts to £276,511. The deferred works will be undertaken during 2021 and 2022, so the Visitors are of the opinion that the closing balance held within the Building Fund is sufficient to fund foreseeable repair costs. The Hospital has a Residents Bequest Fund, comprising amounts left to the Hospital in previous years which have been designated to provide benefits for residents; this has been invested and is managed by the investment managers. During the year, due to the cancellation of residents’ events, there was a surplus of £1,359; after including an increase of £1,678 in the value of investments, the fund increased by £3,037 to amount to £92,992 at the year-end. The unrestricted Income Fund, being amounts that have not been designated by the Visitors, as described above, has increased by £3,283 during the year to stand at £216,934 at the year-end. This represents approximately six months of Hospital operating and administration costs, which the Visitors consider to be a prudent level of reserves. ## **PLANS FOR FUTURE YEARS** The Visitors recognise the need to be flexible, and to change with the times, particularly having regard to social and demographic trends. Their overall plans are to keep the Almshouse accommodation fully occupied by eligible residents, to maintain a good community spirit within the Hospital by, inter alia, continuing to employ suitable staff, to keep the fabric of the Hospital in good order, to ensure that the Almshouses are suitable for the changing needs of an older population, and to maintain the value of the Hospital's endowment, with a view to passing the Hospital on to future generations. The Visitors have continued with plans to develop a part-derelict farmyard site at Blackford, to preserve some historic buildings and provide ten new homes; planning permission has been obtained and a sales price of £815,000 has been agreed with a developer, completion of the sale is anticipated by the end of the current financial year (October 2021). The Visitors will during 2022 purchase three of the units to add to the Investment Property portfolio, at a cost of £588,000. The Visitors have potential liabilities for the replacement of landlords’ buildings and fittings in respect of a number of their tenanted farms. They are working with their agents to resolve the various issues that could arise, which has identified a development opportunity through the sale of three derelict barns for residential development, which it is hoped will produce sufficient cash to eliminate the most pressing issues. There are also a number of other development projects currently being assessed. Page 7 Company registration number 6906918 Charity registration number 1130351 ## HUGH SEXEY'S HOSPITAL (A charitable company limited by guarantee) ## **REPORT OF THE VISITORS FOR THE YEAR ENDED 31 OCTOBER 2020** ## **VISITORS' RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS** The Visitors (who are also directors of Hugh Sexey's Hospital for the purposes of company law) are responsible for preparing the Report of the Visitors and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Visitors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the Visitors are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The Visitors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Visitors are aware: - there is no relevant audit information of which the charitable company's auditor is unaware; and - they have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. ## **SMALL COMPANY PROVISIONS** This report has been prepared in accordance with the special provisions for small companies under Section 415a of the Companies Act 2006. Approved by the Visitors on 30 July 2021 and signed on their behalf by: - __________________________________________ > Mr J Buxton – Chairman of Visitors Page 8 Company registration number 6906918 Charity registration number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HUGH SEXEY'S HOSPITAL FOR THE YEAR ENDED 31 OCTOBER 2020** ## **Opinion** We have audited the financial statements of Hugh Sexey’s Hospital (the ‘charitable company’) for the year ended 31 October 2020 which comprise Statement of Financial Activities, Balance Sheet, Cashflow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the charitable company’s affairs as at 31 October 2020, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - • have been prepared in accordance with the requirements of the Companies Act 2006. ## **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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 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: - the Visitors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - • the Visitors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt 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 Visitors are responsible for the other information. The other information comprises the information included in the Report of the Visitors, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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: - the information given in the Report of the Visitors (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors’ report has been prepared in accordance with applicable legal requirements. Page 9 Company registration number 6906918 Charity registration number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HUGH SEXEY'S HOSPITAL FOR THE YEAR ENDED 31 OCTOBER 2020 (continued)** ## **Matters on which we are required to report by exception** In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ 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: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the Visitors were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report. ## **Responsibilities of Visitors** As explained more fully in the Visitors’ responsibilities statement set out on page 8, the Visitors (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Visitors 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 Visitors are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Visitors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Use of our report** This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. James Gare (Senior Statutory Auditor) for and on behalf of MHA Monahans Statutory Auditor Chartered Accountants Fortescue House, Court Street Trowbridge, Wiltshire BA14 8FA Page 10 Company registration number 6906918 Charity registration number 1130351 ## HUGH SEXEY'S HOSPITAL (A charitable company limited by guarantee) ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 OCTOBER 2020** |Note
**Income from:**
Donations
1a
Charitable activities
1b
Investment activities
1c
**Total income**
**Expenditure on:**
**Raising Funds**
2
**Charitable activities:**
Hospital operating costs
3a
Administration costs
3b
External grants
3c
Exceptional costs
3d
Governance costs
3e
**Total expenditure**
4
**Net expenditure before gains**
**Net gains on investments:**
Investment properties
7a
Investment portfolio
7b
**Net income / (expenditure) before transfers**
**Transfers between funds**
12 & 13
**Net movement in funds**
**Fund balances brought forward**
**Fund balances carried forward**|Endowment
Restricted Unrestricted
**Total**
Total
Funds
Funds
Funds
**2020**
2019
£
£
£
**£**
£
216,720
-
4,855
221,575
58,880
-
-
166,537
166,537
168,920
108,515
-
273,087
381,602
365,341
325,235
-
444,479
769,714
593,141
77,485
-
55,989
**133,474**
105,971
-
13,775
287,232
**301,007**
369,867
-
-
20,749
**20,749**
26,473
-
-
932
**932**
932
1,054,397
-
107,728
**1,162,125**
348,501
-
-
5,850
**5,850**
4,850| |---|---| ||1,054,397
13,775
422,491
**1,490,663**
750,623
1,131,882
13,775
478,480
**1,624,137**
856,594| ||**(806,647)**
**(13,775)**
**(34,001)**
**(854,423)**

(263,453)
-
-
-
**-**
891,950
77,630
-
1,678
**79,308**
272,656
(729,017)
(13,775)
(32,323)
**(775,115)**
901,153
(108,515)
13,775
94,740
**-**
-| ||**(837,532)**
**-**
**62,417**
**(775,115)**
901,153
17,167,050
-
524,020
**17,691,070**
16,789,917

**16,329,518**
**-**
**586,437**
**16,915,955**
17,691,070| The above results relate wholly to continuing activities; there were no recognised gains or losses other than those included above. The Statement of Financial Activities also complies with the requirement to prepare an income and expenditure account contained in the Companies Act 2006. The accompanying accounting policies and notes form an integral part of these financial statements Page 11 Company registration number 6906918 Charity registration number 1130351 ## HUGH SEXEY'S HOSPITAL (A charitable company limited by guarantee) ## **BALANCE SHEET AT 31 OCTOBER 2020** |Note
**Fixed assets**
Heritage assets: The Hospital
6
Investments:
Freehold properties
7a
Investment portfolio
7b
**Current assets**
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due
within one year
10
**Net current assets / (liabilities)**
**Total assets less current liabilities**
**Capital funds**
Permanent Endowment Fund
11
**Income funds**
Restricted
12
Unrestricted
13|Endowment
Restricted Unrestricted
**Total**
Total
Funds
Funds
Funds
**2020**
2019
£
£
£
**£**
£
1,100,000
-
-
**1,100,000**
1,100,000
12,131,410
-
-
**12,131,410**
12,131,410
2,895,038
-
579,251
**3,474,289**
4,567,537| |---|---| ||16,126,448
-
579,251
**16,705,699**
17,798,947| ||-
-
22,587
**22,587**
13,354
350,000
-
48,811
**398,811**
68,463| ||350,000
-
71,398
**421,398**
81,817
(146,930)
-
(64,212)
**(211,142)**
(189,694)| ||203,070
-
7,186
**210,256**
(107,877)| ||| ||**16,329,518**
**-**
**586,437**
**16,915,955**
17,691,070| ||16,329,518
-
-
**16,329,518**
17,167,050
-
-
-
**-**
-
-
-
586,437
**586,437**
524,020| ||**16,329,518**
**-**
**586,437**
**16,915,955**
17,691,070| The Visitors have prepared accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company. The financial statements were approved by the Visitors at their meeting on 30 July 2021 and were signed on their behalf by: ## **________________________** ## **__________________________** Mr J Buxton – Chairman and Director E Hobhouse Esq - Director The accompanying accounting policies and notes form an integral part of these financial statements. Page 12 Company registration number 6906918 Charity registration number 1130351 ## HUGH SEXEY'S HOSPITAL (A charitable company limited by guarantee) ## **CASHFLOW STATEMENT FOR THE YEAR ENDED 31 0CTOBER 2020** |**Cash flows from operating activities**
Net outgoing resources, per Statement of Financial Activities
Adjustments for:
Dividends and bank interest
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash used in operating activities
**Cash flows from investing activities**
Investment income
Net proceeds from sale of investment properties
Note 7a
Net proceeds from sale of investments
Net cash generated from investing activities
**Change in cash and cash equivalents in the reporting period**
**Cash and cash equivalents at the beginning of the reporting period**
**Cash and cash equivalents at the end of the reporting period**
**Analysis of cash and cash equivalents**
Bank Balances
Cash held as part of investment portfolio
Total cash and cash equivalents|**Total**
Total
**2020**
2019
**£**
£
**(854,423)**
(263,453)
**(117,707)**
(108,701)
**(9,233)**
35,769
**21,448**
119,201| |---|---| ||**(959,915)**
(217,184)| ||**117,707**
108,701
**-**
842,540
**30,254**
41,187| ||**147,961**
992,428| ||| ||**(811,954)**
775,244
**1,263,228**
487,984| ||**451,274**
1,263,228| ||**398,811**
68,463
**52,463**
1,194,765| ||**451,274**
1,263,228| Page 13 Company registration number 6906918 Charity registration number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **PRINCIPAL ACCOUNTING POLICIES FOR THE YEAR ENDED 31 OCTOBER 2020** ## **Legal status of the Charity** The Charity is a company limited by guarantee, incorporated in England and Wales, 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. The address of the registered office is given in the reference and administrative details on page 2 of the financial statements and the nature of the charity’s operations and principle activities are detailed in the Report of the Visitors. ## **Statement of compliance** The charity constitutes a public benefit entity as defined by FRS102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'. These financial statements have been prepared in compliance with FRS 102, 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, the Charities Act 2011 and UK Generally Accepted Accounting Practice. ## **Basis of accounting** The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investments 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. ## **Judgements and key sources of estimation uncertainty** The Hospital makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. ## **Valuation of investment property** An external independent valuer, having appropriate recognised professional qualifications and current experience of the location and type of property being valued, values the charity’s investment property. Fair values are based on market values. Market values are the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing. ## **Taxation** No provision is made for Corporation Tax as the charity is able to claim full statutory exemption subject to the proper application of all its charitable resources. ## **Liabilities** Liabilities are recognised in full in the financial statements as soon as the obligation arises. ## **Financial instruments** Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. These include cash, debtors other than prepayments, and creditors other than taxation and social security costs and deferred income. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Page 14 Company registration number 6906918 Charity registration number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **PRINCIPAL ACCOUNTING POLICIES FOR THE YEAR ENDED 31 OCTOBER 2020** ## **Fund accounting** - **Permanent endowment** : The Hospital has a permanent endowment which it is legally prevented from spending and which must remain intact as part of the Hospital's capital. It has invested the endowment to provide income for its charitable activities. - **Restricted funds** : these are held to be used for specified purposes as laid down by the governing documents or by the donors - **Unrestricted funds** : these are other incoming resources received or generated for expenditure on the general objectives of the Hospital. The Visitors have designated certain of the unrestricted funds; they have decided that setting aside funds in this way is a useful financial discipline which will help the Hospital to make the best use of its resources, even though there is no legal force to the designations. ## **Income and expenditure** All income is recognised in full in the statement of financial activities when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. Expenditure is charged on an accruals basis and is allocated between expenditure incurred on management of the investments, expenditure in fulfilment of the Hospital's objectives (direct charitable expenditure) and expenditure incurred in the governance of the Hospital. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. ## **Heritage Assets** The Hospital is a listed building of historical importance and as its preservation and conservation is one of the Hospital's objectives, it is regarded as a heritage asset and the Visitors take steps to ensure it is properly maintained. As a result of the age of the Hospital there is no record of any original costs. No depreciation is charged on the Hospital buildings; the Visitors consider that this policy is appropriate given the historic nature of the buildings and the nature of the Hospital's activities which ensure that the buildings are maintained in an excellent state of repair. ## **Investments** Investment properties are included in the balance sheet at their estimated market value. Investment properties are formally revalued at least every five years by relevant professional valuers and are reviewed annually to ensure that the most recent formal valuation is still reasonable. No depreciation is provided in respect of investment properties as these are held for investment and the Visitors consider that this policy is necessary to give a true and fair view. Listed investments held for investment purposes are stated at market value at the balance sheet date; gains and losses arising on revaluation are credited or debited to the appropriate fund through the SOFA. Current asset investments are short term highly liquid investments held at fair value. These include cash on deposit and cash equivalents with a maturity of less than one year. Dividends and interest from investments are credited to income on a receivable basis. ## **Retirement benefits** The Hospital operates a defined contribution pension scheme. The pension costs charged against operating income are the contributions payable to the scheme in respect of the accounting year. ## **Grants payable** Grants are recognised in the financial statements when a commitment has been made, and there are no conditions to be met relating to the grant which remain in the control of the charity. Grants with performance conditions are only recognised in the financial statements once the recipient of the grant has provided the specified service or output. Page 15 Company registration number 6906918 Charity registration number 1130351 ## HUGH SEXEY'S HOSPITAL (A charitable company limited by guarantee) ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020** |**1.**
**INCOME**
**1a) Donations**
Towards costs of running the Hospital
Towards Blackford Room development
**1b) Charitable activities**
Contributions from residents
**1c) Investment activities**
Investment property income
Dividends and bank interest
**Total income**
**2. EXPENDITURE ON RAISING FUNDS**
**Investment property costs:**
Costs of Estate management
Day-to-day repairs and maintenance
Brokers management fees
7b
Costs of fundraising for Blackford Room
**3. EXPENDITURE ON CHARITABLE ACTIVITIES**
**a) Hospital operating costs**
Employment costs
Note 5
Other Hospital costs
Day-to-day running costs
Almshouse repairs and improvements
Former Residents' Bequest expenditure
**b) Administration costs**
Accountancy and charity administration
Professional Fees: VAT advice
Other administration expenses
**c) External grants**
Grants made to institutions
**d) Exceptional costs**
Hospital: Blackford Room development
Hospital: Heating Project
Estate: costs re future development site
Estate: professional fees re future strategy|Endowment
Restricted Unrestricted
**Total**
Total
Funds
Funds
Funds
**2020**
2019
£
£
£
**£**
£
-
4,855
**4,855**
5,072
216,720
-
-
**216,720**
53,808| |---|---| ||216,720
-
4,855
**221,575**
58,880| ||-
-
166,537
**166,537**
168,920| ||-
-
263,895
**263,895**
256,640
108,515
-
9,192
**117,707**
108,701| ||108,515
-
273,087
**381,602**
365,341| ||| ||325,235
-
444,479
**769,714**
593,141| ||-
-
44,455
**44,455**
42,799
-
-
11,534
**11,534**
10,892| ||-
-
55,989
**55,989**
53,691
32,213
-
-
**32,213**
35,328
45,272
-
-
**45,272**
16,952| ||77,485
-
55,989
**133,474**
105,971| ||-
-
128,658
**128,658**
123,082
-
-
108,328
**108,328**
110,685| ||-
-
236,986
**236,986**
233,767
-
13,775
48,594
**62,369**
133,036
-
-
1,652
**1,652**
3,064| ||-
13,775
287,232
**301,007**
369,867| ||-
-
18,150
**18,150**
17,400
-
-
-
**-**
6,255
-
-
2,599
**2,599**
2,818| ||-
-
20,749
**20,749**
26,473| ||-
-
932
**932**
932| ||829,092
-
97,683
**926,775**
221,752
173,223
-
-
**173,223**
-
52,082
-
-
**52,082**
115,765
-
-
10,045
**10,045**
10,984| ||1,054,397
-
107,728
**1,162,125**
348,501| Page 16 Company registration number 6906918 Charity registration number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020** ||||Endowment|Restricted|Unrestricted|**Total**|Total| |---|---|---|---|---|---|---|---| ||||Funds|Funds|Funds|**2020**|2019| ||||£|£|£|**£**|£| |**3. EXPENDITURE ON CHARITABLE ACTIVITIES**|||||||| |**e) Governance Costs**|||||||| |Audit fees|||-|-|5,850|**5,850**|4,850| ||||-|-|5,850|**5,850**|4,850| |Audit and accountancy fees:||Audit services||||**5,850**|4,850| |(all inclusive of VAT)||Non-audit services - payroll||preparation||**849**|912| |**4. TOTAL EXPENDITURE**|||||||| |||Staff costs|Repair costs|Exceptional|Other costs|**2020**|2019| |||£|£|£|£|**£**|£| |Investment property costs|Note 2|-|11,534|-|44,455|**55,989**|53,691| |Investment man.charges|Note 2|-|-|-|32,213|**32,213**|35,328| |Cost of Fundraisers|Note 2|-|-|-|45,272|**45,272**|16,952| |Hospital operating costs|Note 3a|128,658|62,369|-|109,980|**301,007**|369,867| |Administration costs|Note 3b|-|-|-|20,749|**20,749**|26,473| |External grants|Note 3c|-|-|-|932|**932**|932| |Exceptional costs|Note 3d|-|-|1,162,125||**1,162,125**|348,501| |Governance costs|Note 3e|-|-|-|5,850|**5,850**|4,850| |**Total resources expended**||128,658|73,903|1,162,125|259,451|**1,624,137**|856,594| ## **5. STAFF COSTS AND RENUMERATION OF KEY MANAGEMENT PERSONNEL** |**FF COSTS AND RENUMERATION OF KEY MANAGEMENT PERSONNEL**|| |---|---| |ff costs during the year were:
Wages and salaries
Employers National Insurance contributions (less Employment Allowance)
Pension contributions|**£**
£
**119,444**
114,180
**6,784**
6,863
**2,430**
2,039| ||**128,658**
123,082| Staff costs during the year were: Average number of employees for the year - 5 (2018-19: 5). None earned in excess of £60,000 (2018-19 none). The Trust considers its key management personnel comprise the trustees and the Master. The total employment benefits of the key management personnel, including employer's pension contributions, were £46,061 (2018-19: £44,596). ## **6. HERITAGE ASSETS** At valuation ||**£**|£| |---|---|---| ||**1,100,000**|1,100,000| The Visitors, after receiving professional advice, have determined that the Hospital is a heritage asset. As a result of the age of the Hospital there are no records of the original cost; the Hospital buildings are included at a desktop valuation provided by qualified valuers at 31 October 2004, based on existing use values. Expenditure incurred on the construction of the Blackford Room amounted to £1,265,292, comprising £1,011,699 paid to the contractor, £204,103 of professional fees, and £49,490 of other costs including fixtures and furhsihings. costs. The Visitors consider that there has been no overall increase in the value of the Heritage Asset as a result of this expenditure, and therefore the whole of the construction cost has been written off. As there are no plans to alter the use of the Hospital buildings, the Visitors do not believe that the costs of carrying out any further revaluations of the Hospital buildings can be justified. Page 17 Company registration number 6906918 Charity registration number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 OCTOBER 2020** ## **7. INVESTMENTS** ## **a) Freehold investment properties** |**a) Freehold investment properties**|| |---|---| |At beginning of the year
Movement in year:
Sales proceeds
Profit arising on sales
Note 11
Surplus arising on revaluation
Note 11
At end of the year|**2020**
2019
**£**
£
**12,131,410**
12,082,000
**-**
(842,540)
**-**
75,540
**-**
816,410| ||**12,131,410**
12,131,410| During the year to 31 October 2019, a number of parcels of land were sold at auction. This produced sales proceeds (net of sale fees) of £842,540, giving rise to a surplus over book valuation of £75,540. The Hospital's Land Agents, Fowler Fortescue, revalued the investment properties on an Open Market Value basis at 31 October 2019 . This produced an unrealised gain on revaluation of £816,410 which was included in the financial statements, the gain being credited to the Permanent Endowment Fund. ## **b) Investment portfolio** |**b) Investment portfolio**||| |---|---|---| |**Total**
Total
**2020**
2019
£
£
**£**
£
Investment income received
108,515
3,011
**111,526**
107,799
Management fees charged
(32,213)
-
**(32,213)**
(35,328)
Funds invested / (withdrawn)
(1,140,343)
(3,011)
**(1,143,354)**
781,396
Unapplied total return allocated to income
(108,515)
-
**(108,515)**
(104,702)
Realised and unrealised gains/(losses):
Permanent Endowment
Note 8
77,630
-
**77,630**
267,780
Former Residents Bequests
Note 13
-
1,678
**1,678**
4,876
Net increase in portfolio value
(1,094,926)
1,678
**(1,093,248)**
1,021,821
Opening valuation
4,485,579
81,958
**4,567,537**
3,545,716
**Closing valuation**
**3,390,653**
**83,636**
**3,474,289**
4,567,537
Historical cost of listed investments
3,160,496
78,760
**3,239,256**
4,370,100
The investments are held as follows:
Investment portfolio
**3,421,826**
3,372,772
Cash balances held by brokers
**52,463**
1,194,765
**3,474,289**
4,567,537
At the end of the reporting period the following holdings comprised more than 5% of the value of the portfolio.
Sarasin Endowments Fund Class A - Income
**£3,421,826**
3,372,772
Permanent
Endowment
Fund
Unrestricted:
Former
Residents
Bequest|**Total**
Total
**2020**
2019
£
£
**£**
£
108,515
3,011
**111,526**
107,799
(32,213)
-
**(32,213)**
(35,328)
(1,140,343)
(3,011)
**(1,143,354)**
781,396
(108,515)
-
**(108,515)**
(104,702)
77,630
-
**77,630**
267,780
-
1,678
**1,678**
4,876
Permanent
Endowment
Fund
Unrestricted:
Former
Residents
Bequest|| ||(1,094,926)
1,678
4,485,579
81,958|**(1,093,248)**
1,021,821
**4,567,537**
3,545,716| ||**3,390,653**
**83,636**|**3,474,289**
4,567,537| ||3,160,496
78,760|**3,239,256**
4,370,100| |||**3,421,826**
3,372,772
**52,463**
1,194,765| |||**3,474,289**
4,567,537| Page 18 Company registration number 6906918 Charity registration number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 OCTOBER 2020** ## **8. MOVEMENT IN UNAPPLIED TOTAL RETURN** Unapplied total return is calculated from a start date of 11 August 2011. The Hospital's policy is to transfer into unrestricted (Income) funds each year an amount equal to 3% of the opening value of the Permanent Endowment investment portfolio, which is available for charitable uses. For 2018-19 this transfer amounted to £103,800. This is funded from the total investment returns (income and gains, less management charges) on the Hospital investments. The Visitors intend to keep the distribution rate under review and adjust as necessary to take account of prevailing rates of investment return. The amount of Permanent Endowment invested under the Total Return basis comprises: |**2020**
2019
**£**
£
Total fixed assets
**16,705,699**
17,798,947
Exclude:
Heritage assets: The Hospital
Note 6
**(1,100,000)**
(1,100,000)
Investment properties
Note 7a
**(12,131,410)**
(12,131,410)
Residents Bequest Fund investments
**(83,636)**
(81,958)
**3,390,653**
4,485,579
Permanent
Unapplied
**Total**
Total
Endowment
total return
**2020**
2019
£
£
**£**
£
At beginning of period
3,769,024
716,555
**4,485,579**
3,468,634
Investment returns:
Realised and unrealised gains
77,630
**77,630**
267,780
Investment income receivable
108,515
**108,515**
105,483
Investment management costs
(32,213)
**(32,213)**
(35,328)
153,932
**153,932**
337,935
Unapplied total return allocated to income
(108,515)
**(108,515)**
(103,800)
Unapplied total return unallocated at year-end
45,417
**45,417**
234,135
Additional funds invested / (withdrawn)
(1,140,343)
-
**(1,140,343)**
782,810
Net movement in reporting period
(1,140,343)
45,417
**(1,094,926)**
1,016,945
At end of period
2,628,681
761,972
**3,390,653**
4,485,579
**9. DEBTORS**
**2020**
2019
**£**
£
Investment income - rental income held by Agents
**8,591**
-
Investment income - amounts due from tenants
**3,700**
3,758
Prepayments and other debtors
**10,296**
9,596
**22,587**
13,354
**10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
**£**
£
Trade creditors:
Endowment Fund - re Blackford Room
**145,162**
134,551
Unrestricted Funds
**47,566**
36,820
Accruals and other creditors
**7,450**
7,951
Social security and other taxes
**10,964**
3,009
Deposits received from residents
**-**
7,363
**211,142**
189,694|**2020**
2019
**£**
£
Total fixed assets
**16,705,699**
17,798,947
Exclude:
Heritage assets: The Hospital
Note 6
**(1,100,000)**
(1,100,000)
Investment properties
Note 7a
**(12,131,410)**
(12,131,410)
Residents Bequest Fund investments
**(83,636)**
(81,958)
**3,390,653**
4,485,579
Permanent
Unapplied
**Total**
Total
Endowment
total return
**2020**
2019
£
£
**£**
£
At beginning of period
3,769,024
716,555
**4,485,579**
3,468,634
Investment returns:
Realised and unrealised gains
77,630
**77,630**
267,780
Investment income receivable
108,515
**108,515**
105,483
Investment management costs
(32,213)
**(32,213)**
(35,328)
153,932
**153,932**
337,935
Unapplied total return allocated to income
(108,515)
**(108,515)**
(103,800)
Unapplied total return unallocated at year-end
45,417
**45,417**
234,135
Additional funds invested / (withdrawn)
(1,140,343)
-
**(1,140,343)**
782,810
Net movement in reporting period
(1,140,343)
45,417
**(1,094,926)**
1,016,945
At end of period
2,628,681
761,972
**3,390,653**
4,485,579
**9. DEBTORS**
**2020**
2019
**£**
£
Investment income - rental income held by Agents
**8,591**
-
Investment income - amounts due from tenants
**3,700**
3,758
Prepayments and other debtors
**10,296**
9,596
**22,587**
13,354
**10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
**£**
£
Trade creditors:
Endowment Fund - re Blackford Room
**145,162**
134,551
Unrestricted Funds
**47,566**
36,820
Accruals and other creditors
**7,450**
7,951
Social security and other taxes
**10,964**
3,009
Deposits received from residents
**-**
7,363
**211,142**
189,694|Unapplied
total return
£
716,555|**2020**
2019
**£**
£
**16,705,699**
17,798,947
**(1,100,000)**
(1,100,000)
**(12,131,410)**
(12,131,410)
**(83,636)**
(81,958)| |---|---|---|---| ||||**3,390,653**
4,485,579| ||||**Total**
Total
**2020**
2019
**£**
£
**4,485,579**
3,468,634| ||77,630
**77,630**
267,780
108,515
**108,515**
105,483
(32,213)
**(32,213)**
(35,328)
153,932
**153,932**
337,935
(108,515)
**(108,515)**
(103,800)
45,417
**45,417**
234,135
(1,140,343)
-
**(1,140,343)**
782,810|77,630
**77,630**
267,780
108,515
**108,515**
105,483
(32,213)
**(32,213)**
(35,328)|| |||153,932
**153,932**
337,935
(108,515)
**(108,515)**
(103,800)|| ||||**45,417**
234,135
**(1,140,343)**
782,810| ||(1,140,343)
45,417||**(1,094,926)**
1,016,945| ||||| ||2,628,681
761,972||**3,390,653**
4,485,579| ||||**2020**
2019
**£**
£
**8,591**
-
**3,700**
3,758
**10,296**
9,596| ||||**22,587**
13,354| ||||**£**
£
**145,162**
134,551
**47,566**
36,820
**7,450**
7,951
**10,964**
3,009
**-**
7,363| ||||**211,142**
189,694| Page 19 Company registration number 6906918 Charity registration number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 OCTOBER 2020** ## **11. PERMANENT ENDOWMENT FUND** |||||**2020**|2019| |---|---|---|---|---|---| |||||**£**|£| |Income|||||| |Donations towards Blackford Room development|||Note 1a|**216,720**|53,808| |Expenditure charged against Endowment Funds:|||||| |Hospital: Blackford Room fundraising costs|||Note 2|**(45,272)**|(16,952)| |Hospital: Blackford Room development|||Note 3d|**(829,092)**|(221,752)| |Hospital: Heating Project|||Note 3d|**(173,223)**|-| |Estate: costs re future development site|||Note 3d|**(52,082)**|(115,765)| |Net expenditure in the year||||**(882,949)**|(300,661)| |Realised gain arising on sale of Investment Properties|||Note 7|**-**|75,540| |Unrealised gain arising on revaluation of Investment|Properties||Note 7|**-**|816,410| |Unapplied total return unallocated at year-end|||Note 8|**45,417**|234,135| |**Net movement in funds during the year**||||**(837,532)**|825,424| |Fund balances brought forward at start of year||||**17,167,050**|16,341,626| |**Fund balance carried forward at end of year**||||**16,329,518**|17,167,050| |**12. RESTRICTED FUNDS**|||||| |||||**2020**|2019| |**Extraordinary Repairs Fund**||||**£**|£| |Expenditure during the year|||Note 3a|**(13,775)**|(13,775)| |Annual transfer from income account|||Note 13|**13,775**|13,775| |**Net movement in funds during the year**||||**-**|-| |Fund balances brought forward at start of year||||**-**|-| |**Fund balances carried forward at end of year**||||**-**|-| |Under the terms of the governing Orders, the Visitors are required to transfer a minimum of £690 into an Extraordinary|||||| |Repairs Fund, to fund major long-term modernisation and repairs. The Visitors have agreed to provide for these repairs|||||| |using the Almshouse Association suggested contribution rates of £475 per flat, which produces an annual charge of|||||| |£13,775. Costs of remodelling flats during the year exceed this figure - an equal cost has therefore been charged|||||| |against the Fund.|||||| |**13. UNRESTRICTED FUNDS**|||||| |Income|Buildings|Former|Giving|**Total**|Total| |Fund|Fund|Residents|Fund|**2020**|2019| |||Bequest|||| |£|£|£|£|**£**|£| |Surplus/(deficit) for the year
38,543|(73,903)|1,359|-|**(34,001)**|(19,172)| |Allocated to Building Fund
(130,000)|130,000|-|-|**-**|-| |Outgoing resources before transfers
(91,457)|56,097|1,359|-|**(34,001)**|(19,172)| |Transfers|||||| |Total Asset Return adjust. Note 7
108,515|-|-|-|**108,515**|103,800| |Extraordinary Repairs
Note 12
(13,775)|-|-|-|**(13,775)**|(13,775)| |Outgoing resources after transfers
3,283|56,097|1,359|-|**60,739**|70,853| |Investment gain
Note 7
-|-|1,678|-|**1,678**|4,876| |Net movement in funds during year
**3,283**|**56,097**|**3,037**|**-**|**62,417**|75,729| |Fund balances at start of year
213,651|220,414|89,955|-|**524,020**|448,291| |**Fund balances at end of year**
**216,934**|**276,511**|**92,992**|**-**|**586,437**|524,020| Page 20 Company registration number 6906918 Charity registration number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 OCTOBER 2020** ## **13. UNRESTRICTED FUNDS (continued)** ## **Buildings Fund** Repairs, maintenance and modernisation costs arise erratically over the years; if charged directly to the Income Fund the amount of surplus in any year can vary greatly. The object of the Buildings Fund is to even out the charge against the Income Fund by debiting a regular annual amount against it and crediting the same to the Buildings Fund against which expenditure on repairs, maintenance and modernisation is then charged. The Visitors consider that setting aside funds in this way is a useful financial discipline which will help the Hospital to make the best use of its resources, even though there is no legal force to the designations. ## **Giving Fund** Every year the Visitors decide on the amounts to allocate for external donations to local and regional beneficiaries. In view of the large cash requirement to fund the Blackford Room, no further amount has been allocated for grants. ## **Former Residents Bequests Fund** From time to time Residents have left bequests to the Hospital. These are kept in a separate fund, the income from which is made available for items of expenditure which will be to the benefit of all residents, as recommended by the House Committee and endorsed by the Visitors. ## **14. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES** At 31 October 2020 there were no capital commitments or contingent liabilities. At 31 October 2019 the Hospital had a capital commitment in respect of the construction of the Blackford Room; it had contracted for a contract value of £829,711 plus £165,942 VAT, a total of £995,653, of which £110,300 plus VAT had been invoiced before the year-end. ## **15. TAXATION** The charitable company is exempt from taxation on income and gains falling within categories covered by Part II, Chapter 3 of the Corporation Taxes Act 2010 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives. ## **16. PAYMENTS TO TRUSTEES AND CONNECTED PERSONS AND RELATED PARTY TRANSACTIONS** No remuneration or reimbursement of expenses was paid during the year to any of the Visitors. The charitable company has purchased trustees' liability insurance costing £1,219 (2018-19: £1,219). The Charity Commission has confirmed that the Visitors have the power to take out such an insurance policy. No related party transactions took place during the year or prior year. ## **17. LIABILITIES OF MEMBERS** Under paragraph 7 of the Memorandum of Association all members undertake to contribute to the assets of the charitable company such an amount as may be required, not exceeding £1, in the event of it being wound up during the year of membership and within one year afterwards. Page 21 Company registration number 6906918 Charity registration number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 OCTOBER 2020** ## **18a. PRIOR YEAR COMPARATIVES - STATEMENT OF FINANCIAL ACTIVITIES** |**Income from:**
Donations and legacies
Charitable activities
Investments
**Total income**
**Expenditure on:**
**Raising Funds**
**Charitable activities:**
Hospital operating costs
Administration costs
External grants
Exceptional costs
Governance costs
**Total expenditure**
**Net expenditure before gains**
**Net gains on investments:**
Investment properties
Investment portfolio
**Net income / (expenditure) before transfers**
**Transfers between funds**
**Net movement in funds**
**Fund balances brought forward**
**Fund balances carried forward**|Endowment
Restricted Unrestricted
**Total**
Funds
Funds
Funds
£
£
£
**£**
53,808
-
5,072
58,880
-
-
168,920
168,920
105,483
-
259,858
365,341| |---|---| ||159,291
-
433,850
593,141| ||16,952
-
53,691
**70,643**| ||-
13,775
356,092
**369,867**
-
-
26,473
**26,473**
-
-
932
**932**
337,517
-
10,984
**348,501**
-
-
4,850
**4,850**| ||337,517
13,775
399,331
**750,623**| ||| ||354,469
13,775
453,022
**821,266**| ||**(195,178)**
**(13,775)**
**(19,172)**
**(228,125)**
891,950
-
-
**891,950**
232,452
-
4,876
**237,328**| ||929,224
(13,775)
(14,296)
**901,153**
(103,800)
13,775
90,025
**-**| ||**825,424**
**-**
**75,729**
**901,153**
16,341,626
-
448,291
**16,789,917**| ||**17,167,050**
**-**
**524,020**
**17,691,070**| Page 22 Company registration number 6906918 Charity registration number 1130351 (A charitable company limited by guarantee) ## HUGH SEXEY'S HOSPITAL ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 OCTOBER 2020** ## **18b. PRIOR YEAR COMPARATIVES - BALANCE SHEET AND FUNDS** |**Fixed assets**
Heritage assets: The Hospital
Investments:
Freehold properties
Investment portfolio
**Current assets**
Investment portfolio
Debtors
Cash at bank and in hand
Creditors: amounts falling due
within one year
**Net current assets / (liabilities)**
**Total assets less current liabilities**
**Capital funds**
Permanent Endowment Fund
**Income funds**
Restricted
Unrestricted
**UNRESTRICTED FUNDS COMPRISE:**
Surplus/(deficit) for the year
Allocated to Building Fund
Outgoing resources before transfers
Transfers
Permanent Endowment
Extraordinary Repairs
Outgoing resources after transfers
Investment losses
Net decrease in funds during year
Fund balances at start of year
**Fund balances at end of year**|Endowment
Restricted Unrestricted
**Total**
Funds
Funds
Funds
**2020**
£
£
£
**£**
1,100,000
-
-
**1,100,000**
12,131,410
-
-
**12,131,410**
4,070,191
-
415,388
**4,485,579**
17,301,601
-
415,388
**17,716,989**
-
-
81,958
**81,958**
-
-
13,354
**13,354**
-
-
68,463
**68,463**
-
-
163,775
**163,775**
(134,551)
-
(55,143)
**(189,694)**
(134,551)
-
108,632
**(25,919)**
**17,167,050**
**-**
**524,020**
**17,691,070**
17,167,050
-
-
**17,167,050**
-
-
-
**-**
-
-
524,020
**524,020**
**17,167,050**
**-**
**524,020**
**17,691,070**
Income
Buildings
Former
Giving
**Total**
Fund
Fund
Residents
Fund
Bequest
£
£
£
£
**£**
125,504
(143,928)
(748)
-
**(19,172)**
(130,000)
130,000
-
-
**-**|Endowment
Restricted Unrestricted
**Total**
Funds
Funds
Funds
**2020**
£
£
£
**£**
1,100,000
-
-
**1,100,000**
12,131,410
-
-
**12,131,410**
4,070,191
-
415,388
**4,485,579**| |---|---|---| |||17,301,601
-
415,388
**17,716,989**| |||-
-
81,958
**81,958**
-
-
13,354
**13,354**
-
-
68,463
**68,463**| |||-
-
163,775
**163,775**
(134,551)
-
(55,143)
**(189,694)**| |||(134,551)
-
108,632
**(25,919)**| |||| |||**17,167,050**
**-**
**524,020**
**17,691,070**| |||17,167,050
-
-
**17,167,050**
-
-
-
**-**
-
-
524,020
**524,020**| |||**17,167,050**
**-**
**524,020**
**17,691,070**| ||(4,496)
(13,928)
(748)
-
**(19,172)**
103,800
-
-
-
**103,800**
(13,775)
-
-
-
**(13,775)**|| ||85,529
(13,928)
(748)
-
**70,853**
-
-
4,876
-
**4,876**|| ||**85,529**
**(13,928)**
**4,128**
**-**
**75,729**
128,122
234,342
85,827
-
**448,291**|| ||**213,651**
**220,414**
**89,955**
**-**
**524,020**|| Page 23 Company registration number 6906918 Charity registration number 1130351