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

Charity registration number 1146488 (England and Wales) Company registration number 07125607

HILLBROOK GRANGE RESIDENTIAL CARE HOME ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

HILLBROOK GRANGE RESIDENTIAL CARE HOME

	Page
Legal and administrative information	1
Trustees' report	2 - 5
Statement of trustees' responsibilities	6
Independent auditor's report	7 - 9
Statement of financial activities	10
Balance sheet	11
Statement of cash flows	12
Notes to the financial statements	13 - 24

HILLBROOK GRANGE RESIDENTIAL CARE HOME

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	Mr B Bissell
	Mrs P A Leck
	Miss J W Westbrook
	Mr J McGahan
	Mrs S Preece
	Mrs V Egan
	Mrs E Wooding (Resigned 28 March
	2025)
	Mr R Arnison	(Appointed 13 June 2024)
Senior Management Team	Mrs Rosaleen Charles, Registered Manager
	Ms Kate Nicholson, Business Manager
	Ms Selina Taylor, Deputy Manager
	Ms Heather Unwin, Operations Manager
	Mr Conor Nellis, Kitchen Manager
	Mrs Pamela Jones, Receptionist
Charity number (England and Wales)	1146488
Company number	07125607
Registered office	Hillbrook Grange
	Ack Lane East
	Bramhall
	Stockport
	Cheshire
	SK7 2BY
Auditor	Xeinadin Audit Limited
	Riverside House Kings Reach Business Park
	Yew Street
	Stockport
	SK4 2HD
Bankers	Co-operative Bank
	St Pauls House
	10 Warwick Lane
	London
	Greater London
	EC4M 7BP
Investment advisors	Rathbones
	3 Wellington Place
	Leeds
	LS1 4AP

HILLBROOK GRANGE RESIDENTIAL CARE HOME

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

The trustees, who are also the directors, present their report and the financial statements of the charity for the year ended 31 March 2025.

REFERENCE AND ADMINISTRATIVE DETAILS

Reference and administrative details are shown in the schedule of members of the board and their professional advisers on page 1 of the financial statements.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The Constitution defines the objects of the Charity as:

a) to promote and assist the general good of elderly people principally, but not exclusively, in the district of Bramhall and Woodford who are in need, by providing specially designed or adapted accommodation or housing and services or facilities calculated to meet the needs of such persons;

b) to assist statutory authorities and other voluntary organisations engaged in providing facilities for physical improvement and furthering health; or in pursuing any objects which now are of subsequently may be deemed by law to be charitable;

c) to provide and manage the residential care home known as "Hillbrook Grange" in Ack Lane, Bramhall or together with any other facilities for the elderly as may be deemed by the directors to be necessary to attain the objects of the charity;

d) to promote and advance all such purposes as are recognised from time to time by the laws of England and Wales to be charitable. The Board considers that the objects are met by the principal activity, which is the provision of residential accommodation for the elderly.

Public benefit

In planning our activities for the year, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance on public benefit and fee charging. The Trust relies on the income from fees and charges to cover its operating costs. In setting the level of fees, the trustees give due consideration to the need to ensure that the residential accommodation of Hillbrook Grange is accessible to elderly people principally though not exclusively in the district of Bramhall and Woodford.

HILLBROOK GRANGE RESIDENTIAL CARE HOME

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Achievements and performance

Significant activities and achievements against objectives

Hillbrook has had another satisfactory operating year with high levels of occupation including good use of refurbished rooms in the Old House for respite care. These rooms are now being decommissioned ahead of the commencement of the building work referred to below. The management team has been stable with the exception of the change of deputy manager, an internal candidate being appointed. Work on team building and improving leadership skills of the management team using a behavioural consultant has been very successful. This work will now be extended to include other staff.

The financial position has been further stabilised with a slightly better than breakeven being achieved for the operating account. This is very much in line with our policy of managing cost carefully to enable us to offer care to the elderly at the lowest possible cost. Prices were increased of necessity to cover the increase in the living wage by some 10% which is a significant increase to our cost base. Unfortunately we have had to make a further substantial increase in April 25 to cover the large increase in costs due the budget outturn which further increased the living wage and NI contribution. The surprise lowering of the NI limit to £5000 affects all our staff and alone adds £100,000 to our cost base. We feel this contradicts the governments pronouncements on the importance of social care. We continue to work on compliance but remain frustrated that the long overdue inspection by the CQC has still not occurred. However we have been inspected by the local authority and achieved a high rating on all counts including an overall rating for the service of good. The level of activities for residents has increased markedly thanks to the new activities coordinator and assistants. In addition to in house activities including personal time spent with each resident, there has been a marked increase of visits for residents to a wide range of venues and different experiences. The dining experience has been further modified to meet the wishes of the residents. Our restaurant manager recently won a competition in a national trade food magazine.

Following the approval by the planning authority of the project to demolish the old house and replace it with a wing containing ensuite bedrooms and amenity areas we have undertaken detailed design and pricing. It became apparent that, due to inflation, our original plan exceeded our budget so considerable redesign has been undertaken which has resulted in a design containing 14 ensuite rooms and lounge areas. As construction work has to be carefully integrated with the operation of the home, a turn key project was impossible to scope due to the need for constant modifications to the working plans to avoid impact on residents. We have therefore agreed as a board to have an open book process with the preferred contractor, all their costs being approved by an independent quantity surveyor who we have appointed. The site is fully prepared and the main construction work about to start. The management team are excited by the prospects the new facilities will provide and are focused to ensuring our residents have top quality care and an enjoyable living experience while construction work proceeds.

Financial review

Going concern

As detailed in the report above 2024/25 has been a year when the operation has been further stabilised. The income has increased by £151,874 during the year. The surplus from operating activities of £169,742 before investment movements is an improvement compared to the operating surplus of £145,242 before investment movements in 2023/24.

The total funds held by the Charity at 31st March 2025 were £6,915,387 of which £3,345,792 was designated in order to redevelop the 'Old House' at Hillbrook Grange Residential Care Home.

HILLBROOK GRANGE RESIDENTIAL CARE HOME

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Reserves policy

Following the sale of the land the Board consider that the present level of funding remains adequate to support the continuation of the Charity's activities now in operation for the medium term, and its financial position remains satisfactory.

The Home has operated at occupancy levels of 90% with vacancies usually being filled within weeks.

The Board are of the opinion that a reasonable level of free reserves would be a sum sufficient to fund six months' expenses estimated to be in the order of £500,000. The Trustees are satisfied that the Home is a going concern.

At 31st March 2025, the net book value of fixed assets amounted to £3,104,158. Movements in fixed assets are shown in note 13 to the financial statements.

Investment policy

The charity will not knowingly invest in securities that do not accord with its principles. If investments that are considered inappropriate are received as legacies, they are sold as soon as practicable and the proceeds are reinvested.

Plans for future periods Redevelopment of Old House

Using the proceeds of the land sale amounting to £3.5 million we are planning the demolition of the” Old House” – a Victorian property which is not fit for purpose - and the construction in its place of fourteen ensuite rooms, as well as allowing for the transfer of a sum to augment the Charity’s reserves. The sale of the land to McCarthy & Stone which was completed at the end of June 2021 places Hillbrook in a strong financial position.

Full planning approval for the demolition of the "Old House" was obtained in May 2024 with construction work approved by the Board in May 2025.

Structure, governance and management

Governing document

The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association dated 14th October 2011. The charity is run by its Board, which consists of four Principal Officers and no more than 14 other members, with power to co-opt as necessary no more than two extra members and to fill vacancies at any time prior to election at the next Annual General Meeting.

The period of membership of those filling such vacancies shall be the outstanding period of the member replaced. The four Principal Officers are Chairman, Vice Chairman, Secretary and Treasurer.

Mr B Bissell Mrs P A Leck Miss J W Westbrook Mr J McGahan Mrs S Preece Mrs V Egan Mrs E Wooding (Resigned 28 March 2025) Mr R Arnison (Appointed 13 June 2024)

Recruitment and appointment of trustees

The Board shall be elected for three years, and one-third of the Board shall retire each year in rotation. Retiring members shall be eligible for re-election by the remaining Board members at the AGM each year. Following election at the AGM, the full Board shall appoint from their number the four Principal Officers who shall hold office for one year but on retirement, shall be eligible for re-election for a maximum of four years. The Board may also appoint such other officers as they deem appropriate.

HILLBROOK GRANGE RESIDENTIAL CARE HOME

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Organisational structure

The Board is responsible for the overall running of Hillbrook Grange Residential Care Home. The Board is required to meet at least six times per annum, including the Annual General Meeting.

Day to day operational control is vested with the Home's Registered Manager who is supervised by the Chairman and the Vice Chairman.

Induction and training

The charity does not possess a formal policy for the training and induction of trustees.

Auditor

Xeinadin Audit Limited have been re-appointed as auditor for the ensuing year.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

Small company provisions

The report has been prepared in accordance with the small companies' regime under the Companies Act 2006.

The trustees' report was approved by the Board of Trustees.

.............................. .............................. Mr B Bissell Mrs P A Leck Trustee Trustee Date: .............................................

HILLBROOK GRANGE RESIDENTIAL CARE HOME

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2025

The trustees, who are also the directors of Hillbrook Grange Residential Care Home for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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

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; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HILLBROOK GRANGE RESIDENTIAL CARE HOME

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF HILLBROOK GRANGE RESIDENTIAL CARE HOME

Opinion

We have audited the financial statements of Hillbrook Grange Residential Care Home (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 March 2025 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 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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
7 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HILLBROOK GRANGE RESIDENTIAL CARE HOME

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 directors' report included within 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:

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 trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the trustees 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 trustees' report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the charity through discussions with directors and other management, and from our commercial knowledge and experience of the care home sector
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Companies Act 2006, Charities Act 2011, taxation legislation and data protection, anti-bribery, employment, environmental, health and safety legislation and requirements of the Care Quality Commission;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
8 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HILLBROOK GRANGE RESIDENTIAL CARE HOME

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators including CQC, and the charity’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Simon Leitch-Devlin, Senior Statutory Auditor

For and on behalf of Xeinadin Audit Limited, Statutory Auditor Chartered Accountants Riverside House Kings Reach Business Park Yew Street Stockport SK4 2HD Date: .........................

HILLBROOK GRANGE RESIDENTIAL CARE HOME

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2025

Unrestricted Unrestricted funds funds general designated 2025 2025 Notes £ £ Income and endowments from: Donations and legacies 2 700 - Charitable activities 3 1,918,393 - Investments 4 168,070 - Other income 5 2,719 - Total income 2,089,882 - Expenditure on: Raising funds 6 3,432 - Charitable activities 7 1,916,708 - Total expenditure 1,920,140 - Net gains/(losses) on investments 14,628 - Net income 184,370 - Transfers between funds 154,208 (154,208) Net movement in funds 8 338,578 (154,208) Reconciliation of funds: 19 Fund balances at 1 April 2024 3,231,017 3,500,000 Fund balances at 31 March 2025 3,569,595 3,345,792	Total Unrestricted Unrestricted funds funds general designated 2025 2024 2024 £ £ £ 700 1,825 - 1,918,393 1,780,147 - 168,070 155,915 - 2,719 121 - 2,089,882 1,938,008 - 3,432 3,770 - 1,916,708 1,788,996 - 1,920,140 1,792,766 - 14,628 17,213 - 184,370 162,455 - - - - 184,370 162,455 - 6,731,017 3,068,562 3,500,000 6,915,387 3,231,017 3,500,000	Total 2024 £ 1,825 1,780,147 155,915 121
		1,938,008
		3,770 1,788,996
		1,792,766
		17,213
		162,455 -
		162,455 6,568,562
		6,731,017

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

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

10 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

BALANCE SHEET

AS AT 31 MARCH 2025

2025 Notes £ £ Fixed assets Tangible assets 13 3,104,158 Investments 14 3,753,524 6,857,682 Current assets Stocks 15 150 Debtors 16 175,643 Cash at bank and in hand 97,526 273,319 Creditors: amounts falling due within one year 17 (215,614) Net current assets 57,705 Total assets less current liabilities 6,915,387 The funds of the charity Unrestricted funds - general 20 19 3,569,595 Unrestricted funds - designated 20 19 3,345,792 6,915,387 The financial statements were approved by the trustees on ......................... .............................. .............................. Mr B Bissell Mrs P A Leck Trustee Trustee	2024 £ £ 3,007,504 3,632,264 6,639,768 150 143,930 103,856 247,936 (156,687) 91,249 6,731,017 3,231,017 3,500,000 6,731,017	2024 £ £ 3,007,504 3,632,264 6,639,768 150 143,930 103,856 247,936 (156,687) 91,249 6,731,017 3,231,017 3,500,000 6,731,017
		6,639,768 91,249
		6,731,017
		3,231,017 3,500,000
		6,731,017

Company registration number 07125607 (England and Wales)

11 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025

Notes
Cash flows from operating activities
Cash generated from operations
24
Investing activities
Purchase of tangible fixed assets
Purchase of investments
Proceeds from disposal of investments
Investment income received
Net cash used in investing activities
Net cash generated from financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

2025
2024
£
£
£
£
103,795
1,417,815
(171,563)
(114,733)
(212,306)
(1,456,189)
105,674
83,699
168,070
155,915
(110,125)
(1,331,308)
-
-
(6,330)
86,507
103,856
17,349
97,526
103,856

The notes on pages 13 to 24 form part of these financial statements.

12 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

Charity information

Hillbrook Grange Residential Care Home is a private company limited by guarantee incorporated in England and Wales. Each of trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.The registered office is Hillbrook Grange, Ack Lane East, Bramhall, Stockport, Cheshire, SK7 2BY, UK.

1.1 Accounting convention

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

Hillbrook Grange Residential Care Home meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

1.2 Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by charity. The Board consider that the present level of funding remains adequate to support the continuation of the Charity's activities now in operation for the medium term, and its financial position remains satisfactory.

1.3 Charitable funds

1.4 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Legacy gifts are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.

Investment income

Investment income is accounted for in the period in which the charity is entitled to receipt.

13 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

1.6 Tangible fixed assets

Individual fixed assets costing £100.00 or more are initially recorded at cost.

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Furniture and equipment 10 - 33% reducing balance Property - Structure 1 - 3 % straight line Property - Fixed Equipment 5 - 10 % straight line

Assets in the course of construction are not depreciated.

1.7 Fixed asset investments

Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

14 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.8 Stocks

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

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

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

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

15 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

1.14 Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

2 Income from donations and legacies

	Unrestricted	Unrestricted
	funds	funds
	2025	2024
	£	£
Legacies	700	1,825
Income from charitable activities
	Unrestricted	Unrestricted
	funds	funds
	2025	2024
	£	£
Residential care
Residential care	1,918,393	1,780,147

3 Income from charitable activities

16 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

4 Income from investments

		Unrestricted	Unrestricted
		funds	funds
		2025	2024
		£	£
	Other income from fixed asset investments	168,070	155,915
5	Other income
		Unrestricted	Unrestricted
		funds	funds
		2025	2024
		£	£
	Other income	2,719	121
6	Expenditure on raising funds
		Unrestricted	Unrestricted
		funds	funds
		2025	2024
		£	£
	Investment management	3,432	3,770

17 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

7 Expenditure on charitable activities

		Charitable	Charitable
		Expenditure	Expenditure
		2025	2024
		£	£
	Direct costs
	Staff costs	1,419,000	1,310,039
	Depreciation and impairment	74,909	76,832
	Purchases	83,022	80,342
	Staff training	18,800	9,546
	Rent and rates	41,207	19,383
	Electricity	25,212	31,347
	Gas	21,530	41,692
	Repairs and maintenance	94,552	86,178
	Advertising	19,065	4,454
	Bank charges	1,799	1,949
	Sundry expenses	-	705
	Travel expenses	2,642	414
	Bad debts written off	80	498
		1,801,818	1,663,379
	Share of support and governance costs (see note 9)
	Support	85,644	96,676
	Governance	29,246	28,941
		1,916,708	1,788,996
	Analysis by fund
	Unrestricted funds - general	1,916,708	1,788,996
8	Net movement in funds	2025	2024
		£	£
	The net movement in funds is stated after charging/(crediting):
	Fees payable for the audit of the charity's financial statements	8,100	8,100
	Depreciation of owned tangible fixed assets	74,909	76,832

18 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

9 Support costs

Staff costs Establishment costs Office expenses Printing, postage and stationery Subscriptions Cleaning Legal and professional costs Audit fees Analysed between Charitable activities	Support costs Governance costs £ £ - 5,306 20,567 - 2,357 - 1,538 - 8,761 - 22,338 - 30,083 15,840 - 8,100 85,644 29,246 85,644 29,246	2025 £ 5,306 20,567 2,357 1,538 8,761 22,338 45,923 8,100 114,890 114,890	Support costs Governance costs £ £ - 5,001 18,793 - 2,553 - 7,456 - 8,758 - 23,970 - 35,146 15,840 - 8,100 96,676 28,941 96,676 28,941	2024 £ 5,001 18,793 2,553 7,456 8,758 23,970 50,986 8,100
				125,617
				125,617

10 Trustees

During the year the charity made the following transactions with trustees:

Mrs Valerie Egan £6,000 (2024 : £6,000) in respect of nominated individual services and not for the work undertaken in her role as a trustee.

11 Employees

The average monthly number of employees during the year was:

Employment costs Wages and salaries Social security costs Other pension costs Other staff costs	2025 Number 67 2025 £ 1,309,545 88,206 26,555 42 1,424,348	2024 Number 67
		2024 £ 1,216,828 74,915 23,297 42
		1,315,082

19 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

11 Employees

(Continued)

Wages and salaries above includes agency costs of £175,785 (2024 : £159,613)

The total employee benefits of the key management personnel of the charity were £240,794 (2024 : £208,734).

There were no employees whose annual remuneration was more than £60,000.

12 Taxation

The charity is a registered charity and is therefore exempt from taxation.

13 Tangible fixed assets

Freehold land and buildings Assets under construction Furniture and equipment £ £ £ Cost At 1 April 2024 3,350,998 56,991 505,413 Additions - 154,208 17,355 At 31 March 2025 3,350,998 211,199 522,768 Depreciation and impairment At 1 April 2024 564,237 - 341,661 Depreciation charged in the year 42,568 - 32,341 At 31 March 2025 606,805 - 374,002 Carrying amount At 31 March 2025 2,744,193 211,199 148,766 At 31 March 2024 2,786,761 56,991 163,752	Total £ 3,913,402 171,563
	4,084,965
	905,898 74,909
	980,807
	3,104,158
	3,007,504

20 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

14 Fixed asset investments

Cost or valuation
At 1 April 2024
Additions
Valuation changes
Disposals
At 31 March 2025
Carrying amount
At 31 March 2025
At 31 March 2024
Investments at fair value comprise:
Equities
Money market instruments
Cash held within the investment portfolio
15
Stocks
Finished goods and goods for resale
16
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income

Listed
investments
£
3,632,264
212,306
(20,193)
(70,853)
3,753,524
3,753,524
3,632,264
2025
2024
£
£
422,694
446,279
3,307,564
3,175,000
23,266
10,985
3,753,524
3,632,264
2025
2024
£
£
150
150
2025
2024
£
£
53,120
74,142
4
301
122,519
69,487
175,643
143,930

21 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

17 Creditors: amounts falling due within one year 2025 £ Other taxation and social security 16,070 Trade creditors 115,762 Other creditors 10,946 Accruals and deferred income 72,836 215,614 18 Retirement benefit schemes 2025 Defined contribution schemes £ Charge to profit or loss in respect of defined contribution schemes 26,555 19 Analysis of net assets between funds Unrestricted Unrestricted funds funds general designated 2025 2025 £ £ At 31 March 2025: Tangible assets 3,104,158 - Investments 445,960 3,307,564 Current assets/(liabilities) 19,477 38,228 3,569,595 3,345,792 Unrestricted Unrestricted funds funds general designated 2024 2024 £ £ At 31 March 2024: Tangible assets 3,007,504 - Investments 457,264 3,175,000 Current assets/(liabilities) (233,751) 325,000 3,231,017 3,500,000	2024 £ 17,148 86,595 5,082 47,862
	156,687
	2024 £ 23,297
	Total 2025 £ 3,104,158 3,753,524 57,705
	6,915,387
	Total 2024 £ 3,007,504 3,632,264 91,249
	6,731,017

22 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

20 Unrestricted funds

The income funds of the charity include the following unrestricted funds:

General Designated Previous year: General Designated	At 1 April 2024 Incoming resources Resources expended £ £ £ 3,231,017 2,089,882 (1,920,140) 3,500,000 6,731,017 2,089,882 (1,920,140) At 1 April 2023 Incoming resources Resources expended £ £ £ 3,068,562 1,938,008 (1,792,766) 3,500,000 - - 6,568,562 1,938,008 (1,792,766)	Transfers Gains and losses At 31 March 2025 £ £ £ 154,208 14,628 3,569,595 (154,208) 3,345,792 - 14,628 6,915,387 Transfers Gains and losses At 31 March 2024 £ £ £ 17,213 3,231,017 - 3,500,000 - 17,213 6,731,017	Transfers Gains and losses At 31 March 2025 £ £ £ 154,208 14,628 3,569,595 (154,208) 3,345,792 - 14,628 6,915,387 Transfers Gains and losses At 31 March 2024 £ £ £ 17,213 3,231,017 - 3,500,000 - 17,213 6,731,017
			6,731,017

These funds have been designated in order to redevelop the 'Old House' at Hillbrook Grange Residential Care Home.

Designated funds relate to the income generated from the sale of land owned by Hillbrook Grange Residential Care Home less initial costs incurred in respect of the redevelopment of the 'Old House'.

21 Capital commitments

Amounts contracted for but not provided in the financial statements:

	2025	2024
	£	£
Acquisition of property, plant and equipment	24,000	81,600

22 Events after the reporting date

In May 2025, the Charity agreed to commit £3,150,000 of contracted capital expenditure in respect of the new build project to erect a two story extension in order to provide an additional 14 bedrooms.

23 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

23 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

23 Related party transactions

(Continued)

Rotary Club of Bramhall and Woodford Charities Trust Fund

Susan Preece is a trustee of Rotary Club of Bramhall and Woodford Charities Trust Fund. During the year Hillbrook Grange Residential Care Home received £700 (2024: £1,725) of donations from Rotary Club of Bramhall and Woodford Charities Trust Fund.

24 Cash generated from operations Surplus for the year Adjustments for: Investment income recognised in statement of financial activities Fair value gains and losses on investments Depreciation and impairment of tangible fixed assets Movements in working capital: (Increase)/decrease in debtors Increase in creditors Cash generated from operations	2025 £ 184,370 (168,070) (14,628) 74,909 (31,713) 58,927 103,795	2024 £ 162,455 (155,915) (17,213) 76,832 1,350,006 1,650 1,417,815

24 -

Charity registration number 1146488 (England and Wales) Company registration number 07125607

HILLBROOK GRANGE RESIDENTIAL CARE HOME ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

HILLBROOK GRANGE RESIDENTIAL CARE HOME

	Page
Legal and administrative information	1
Trustees' report	2 - 5
Statement of trustees' responsibilities	6
Independent auditor's report	7 - 9
Statement of financial activities	10
Balance sheet	11
Statement of cash flows	12
Notes to the financial statements	13 - 24

HILLBROOK GRANGE RESIDENTIAL CARE HOME

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	Mr B Bissell
	Mrs P A Leck
	Miss J W Westbrook
	Mr J McGahan
	Mrs S Preece
	Mrs V Egan
	Mrs E Wooding (Resigned 28 March
	2025)
	Mr R Arnison	(Appointed 13 June 2024)
Senior Management Team	Mrs Rosaleen Charles, Registered Manager
	Ms Kate Nicholson, Business Manager
	Ms Selina Taylor, Deputy Manager
	Ms Heather Unwin, Operations Manager
	Mr Conor Nellis, Kitchen Manager
	Mrs Pamela Jones, Receptionist
Charity number (England and Wales)	1146488
Company number	07125607
Registered office	Hillbrook Grange
	Ack Lane East
	Bramhall
	Stockport
	Cheshire
	SK7 2BY
Auditor	Xeinadin Audit Limited
	Riverside House Kings Reach Business Park
	Yew Street
	Stockport
	SK4 2HD
Bankers	Co-operative Bank
	St Pauls House
	10 Warwick Lane
	London
	Greater London
	EC4M 7BP
Investment advisors	Rathbones
	3 Wellington Place
	Leeds
	LS1 4AP

HILLBROOK GRANGE RESIDENTIAL CARE HOME

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

The trustees, who are also the directors, present their report and the financial statements of the charity for the year ended 31 March 2025.

REFERENCE AND ADMINISTRATIVE DETAILS

Reference and administrative details are shown in the schedule of members of the board and their professional advisers on page 1 of the financial statements.

Objectives and activities

The Constitution defines the objects of the Charity as:

Public benefit

HILLBROOK GRANGE RESIDENTIAL CARE HOME

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Achievements and performance

Significant activities and achievements against objectives

Financial review

Going concern

The total funds held by the Charity at 31st March 2025 were £6,915,387 of which £3,345,792 was designated in order to redevelop the 'Old House' at Hillbrook Grange Residential Care Home.

HILLBROOK GRANGE RESIDENTIAL CARE HOME

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Reserves policy

The Home has operated at occupancy levels of 90% with vacancies usually being filled within weeks.

At 31st March 2025, the net book value of fixed assets amounted to £3,104,158. Movements in fixed assets are shown in note 13 to the financial statements.

Investment policy

Plans for future periods Redevelopment of Old House

Full planning approval for the demolition of the "Old House" was obtained in May 2024 with construction work approved by the Board in May 2025.

Structure, governance and management

Governing document

The period of membership of those filling such vacancies shall be the outstanding period of the member replaced. The four Principal Officers are Chairman, Vice Chairman, Secretary and Treasurer.

Mr B Bissell Mrs P A Leck Miss J W Westbrook Mr J McGahan Mrs S Preece Mrs V Egan Mrs E Wooding (Resigned 28 March 2025) Mr R Arnison (Appointed 13 June 2024)

Recruitment and appointment of trustees

HILLBROOK GRANGE RESIDENTIAL CARE HOME

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Organisational structure

The Board is responsible for the overall running of Hillbrook Grange Residential Care Home. The Board is required to meet at least six times per annum, including the Annual General Meeting.

Day to day operational control is vested with the Home's Registered Manager who is supervised by the Chairman and the Vice Chairman.

Induction and training

The charity does not possess a formal policy for the training and induction of trustees.

Auditor

Xeinadin Audit Limited have been re-appointed as auditor for the ensuing year.

Disclosure of information to auditor

Small company provisions

The report has been prepared in accordance with the small companies' regime under the Companies Act 2006.

The trustees' report was approved by the Board of Trustees.

.............................. .............................. Mr B Bissell Mrs P A Leck Trustee Trustee Date: .............................................

HILLBROOK GRANGE RESIDENTIAL CARE HOME

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2025

In preparing these financial statements, the trustees 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; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

HILLBROOK GRANGE RESIDENTIAL CARE HOME

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF HILLBROOK GRANGE RESIDENTIAL CARE HOME

Opinion

In our opinion, the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

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 our audit:

the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
7 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HILLBROOK GRANGE RESIDENTIAL CARE HOME

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the 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 trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the trustees 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 trustees' report and from the requirement to prepare a strategic report.

Responsibilities of trustees

Auditor's responsibilities for the audit of the financial statements

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the charity through discussions with directors and other management, and from our commercial knowledge and experience of the care home sector
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Companies Act 2006, Charities Act 2011, taxation legislation and data protection, anti-bribery, employment, environmental, health and safety legislation and requirements of the Care Quality Commission;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
8 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HILLBROOK GRANGE RESIDENTIAL CARE HOME

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators including CQC, and the charity’s legal advisors.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Use of our report

Simon Leitch-Devlin, Senior Statutory Auditor

For and on behalf of Xeinadin Audit Limited, Statutory Auditor Chartered Accountants Riverside House Kings Reach Business Park Yew Street Stockport SK4 2HD Date: .........................

HILLBROOK GRANGE RESIDENTIAL CARE HOME

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2025

Unrestricted Unrestricted funds funds general designated 2025 2025 Notes £ £ Income and endowments from: Donations and legacies 2 700 - Charitable activities 3 1,918,393 - Investments 4 168,070 - Other income 5 2,719 - Total income 2,089,882 - Expenditure on: Raising funds 6 3,432 - Charitable activities 7 1,916,708 - Total expenditure 1,920,140 - Net gains/(losses) on investments 14,628 - Net income 184,370 - Transfers between funds 154,208 (154,208) Net movement in funds 8 338,578 (154,208) Reconciliation of funds: 19 Fund balances at 1 April 2024 3,231,017 3,500,000 Fund balances at 31 March 2025 3,569,595 3,345,792	Total Unrestricted Unrestricted funds funds general designated 2025 2024 2024 £ £ £ 700 1,825 - 1,918,393 1,780,147 - 168,070 155,915 - 2,719 121 - 2,089,882 1,938,008 - 3,432 3,770 - 1,916,708 1,788,996 - 1,920,140 1,792,766 - 14,628 17,213 - 184,370 162,455 - - - - 184,370 162,455 - 6,731,017 3,068,562 3,500,000 6,915,387 3,231,017 3,500,000	Total 2024 £ 1,825 1,780,147 155,915 121
		1,938,008
		3,770 1,788,996
		1,792,766
		17,213
		162,455 -
		162,455 6,568,562
		6,731,017

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

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

10 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

BALANCE SHEET

AS AT 31 MARCH 2025

2025 Notes £ £ Fixed assets Tangible assets 13 3,104,158 Investments 14 3,753,524 6,857,682 Current assets Stocks 15 150 Debtors 16 175,643 Cash at bank and in hand 97,526 273,319 Creditors: amounts falling due within one year 17 (215,614) Net current assets 57,705 Total assets less current liabilities 6,915,387 The funds of the charity Unrestricted funds - general 20 19 3,569,595 Unrestricted funds - designated 20 19 3,345,792 6,915,387 The financial statements were approved by the trustees on ......................... .............................. .............................. Mr B Bissell Mrs P A Leck Trustee Trustee	2024 £ £ 3,007,504 3,632,264 6,639,768 150 143,930 103,856 247,936 (156,687) 91,249 6,731,017 3,231,017 3,500,000 6,731,017	2024 £ £ 3,007,504 3,632,264 6,639,768 150 143,930 103,856 247,936 (156,687) 91,249 6,731,017 3,231,017 3,500,000 6,731,017
		6,639,768 91,249
		6,731,017
		3,231,017 3,500,000
		6,731,017

Company registration number 07125607 (England and Wales)

11 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025

2025
2024
£
£
£
£
103,795
1,417,815
(171,563)
(114,733)
(212,306)
(1,456,189)
105,674
83,699
168,070
155,915
(110,125)
(1,331,308)
-
-
(6,330)
86,507
103,856
17,349
97,526
103,856

The notes on pages 13 to 24 form part of these financial statements.

12 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

Charity information

1.1 Accounting convention

Summary of significant accounting policies and key accounting estimates

Statement of compliance

Basis of preparation

1.2 Going concern

1.3 Charitable funds

1.4 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Donations and legacies

Investment income

Investment income is accounted for in the period in which the charity is entitled to receipt.

13 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.5 Expenditure

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Support costs

Governance costs

1.6 Tangible fixed assets

Individual fixed assets costing £100.00 or more are initially recorded at cost.

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Furniture and equipment 10 - 33% reducing balance Property - Structure 1 - 3 % straight line Property - Fixed Equipment 5 - 10 % straight line

Assets in the course of construction are not depreciated.

1.7 Fixed asset investments

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

14 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.8 Stocks

1.9 Cash and cash equivalents

1.10 Financial instruments

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

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

Basic financial assets

Basic financial liabilities

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Taxation

15 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

1.14 Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

2 Income from donations and legacies

	Unrestricted	Unrestricted
	funds	funds
	2025	2024
	£	£
Legacies	700	1,825
Income from charitable activities
	Unrestricted	Unrestricted
	funds	funds
	2025	2024
	£	£
Residential care
Residential care	1,918,393	1,780,147

3 Income from charitable activities

16 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

4 Income from investments

		Unrestricted	Unrestricted
		funds	funds
		2025	2024
		£	£
	Other income from fixed asset investments	168,070	155,915
5	Other income
		Unrestricted	Unrestricted
		funds	funds
		2025	2024
		£	£
	Other income	2,719	121
6	Expenditure on raising funds
		Unrestricted	Unrestricted
		funds	funds
		2025	2024
		£	£
	Investment management	3,432	3,770

17 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

7 Expenditure on charitable activities

		Charitable	Charitable
		Expenditure	Expenditure
		2025	2024
		£	£
	Direct costs
	Staff costs	1,419,000	1,310,039
	Depreciation and impairment	74,909	76,832
	Purchases	83,022	80,342
	Staff training	18,800	9,546
	Rent and rates	41,207	19,383
	Electricity	25,212	31,347
	Gas	21,530	41,692
	Repairs and maintenance	94,552	86,178
	Advertising	19,065	4,454
	Bank charges	1,799	1,949
	Sundry expenses	-	705
	Travel expenses	2,642	414
	Bad debts written off	80	498
		1,801,818	1,663,379
	Share of support and governance costs (see note 9)
	Support	85,644	96,676
	Governance	29,246	28,941
		1,916,708	1,788,996
	Analysis by fund
	Unrestricted funds - general	1,916,708	1,788,996
8	Net movement in funds	2025	2024
		£	£
	The net movement in funds is stated after charging/(crediting):
	Fees payable for the audit of the charity's financial statements	8,100	8,100
	Depreciation of owned tangible fixed assets	74,909	76,832

18 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

9 Support costs

Staff costs Establishment costs Office expenses Printing, postage and stationery Subscriptions Cleaning Legal and professional costs Audit fees Analysed between Charitable activities	Support costs Governance costs £ £ - 5,306 20,567 - 2,357 - 1,538 - 8,761 - 22,338 - 30,083 15,840 - 8,100 85,644 29,246 85,644 29,246	2025 £ 5,306 20,567 2,357 1,538 8,761 22,338 45,923 8,100 114,890 114,890	Support costs Governance costs £ £ - 5,001 18,793 - 2,553 - 7,456 - 8,758 - 23,970 - 35,146 15,840 - 8,100 96,676 28,941 96,676 28,941	2024 £ 5,001 18,793 2,553 7,456 8,758 23,970 50,986 8,100
				125,617
				125,617

10 Trustees

During the year the charity made the following transactions with trustees:

Mrs Valerie Egan £6,000 (2024 : £6,000) in respect of nominated individual services and not for the work undertaken in her role as a trustee.

11 Employees

The average monthly number of employees during the year was:

Employment costs Wages and salaries Social security costs Other pension costs Other staff costs	2025 Number 67 2025 £ 1,309,545 88,206 26,555 42 1,424,348	2024 Number 67
		2024 £ 1,216,828 74,915 23,297 42
		1,315,082

19 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

11 Employees

(Continued)

Wages and salaries above includes agency costs of £175,785 (2024 : £159,613)

The total employee benefits of the key management personnel of the charity were £240,794 (2024 : £208,734).

There were no employees whose annual remuneration was more than £60,000.

12 Taxation

The charity is a registered charity and is therefore exempt from taxation.

13 Tangible fixed assets

Freehold land and buildings Assets under construction Furniture and equipment £ £ £ Cost At 1 April 2024 3,350,998 56,991 505,413 Additions - 154,208 17,355 At 31 March 2025 3,350,998 211,199 522,768 Depreciation and impairment At 1 April 2024 564,237 - 341,661 Depreciation charged in the year 42,568 - 32,341 At 31 March 2025 606,805 - 374,002 Carrying amount At 31 March 2025 2,744,193 211,199 148,766 At 31 March 2024 2,786,761 56,991 163,752	Total £ 3,913,402 171,563
	4,084,965
	905,898 74,909
	980,807
	3,104,158
	3,007,504

20 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

14 Fixed asset investments

21 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

17 Creditors: amounts falling due within one year 2025 £ Other taxation and social security 16,070 Trade creditors 115,762 Other creditors 10,946 Accruals and deferred income 72,836 215,614 18 Retirement benefit schemes 2025 Defined contribution schemes £ Charge to profit or loss in respect of defined contribution schemes 26,555 19 Analysis of net assets between funds Unrestricted Unrestricted funds funds general designated 2025 2025 £ £ At 31 March 2025: Tangible assets 3,104,158 - Investments 445,960 3,307,564 Current assets/(liabilities) 19,477 38,228 3,569,595 3,345,792 Unrestricted Unrestricted funds funds general designated 2024 2024 £ £ At 31 March 2024: Tangible assets 3,007,504 - Investments 457,264 3,175,000 Current assets/(liabilities) (233,751) 325,000 3,231,017 3,500,000	2024 £ 17,148 86,595 5,082 47,862
	156,687
	2024 £ 23,297
	Total 2025 £ 3,104,158 3,753,524 57,705
	6,915,387
	Total 2024 £ 3,007,504 3,632,264 91,249
	6,731,017

22 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

20 Unrestricted funds

The income funds of the charity include the following unrestricted funds:

General Designated Previous year: General Designated	At 1 April 2024 Incoming resources Resources expended £ £ £ 3,231,017 2,089,882 (1,920,140) 3,500,000 6,731,017 2,089,882 (1,920,140) At 1 April 2023 Incoming resources Resources expended £ £ £ 3,068,562 1,938,008 (1,792,766) 3,500,000 - - 6,568,562 1,938,008 (1,792,766)	Transfers Gains and losses At 31 March 2025 £ £ £ 154,208 14,628 3,569,595 (154,208) 3,345,792 - 14,628 6,915,387 Transfers Gains and losses At 31 March 2024 £ £ £ 17,213 3,231,017 - 3,500,000 - 17,213 6,731,017	Transfers Gains and losses At 31 March 2025 £ £ £ 154,208 14,628 3,569,595 (154,208) 3,345,792 - 14,628 6,915,387 Transfers Gains and losses At 31 March 2024 £ £ £ 17,213 3,231,017 - 3,500,000 - 17,213 6,731,017
			6,731,017

These funds have been designated in order to redevelop the 'Old House' at Hillbrook Grange Residential Care Home.

Designated funds relate to the income generated from the sale of land owned by Hillbrook Grange Residential Care Home less initial costs incurred in respect of the redevelopment of the 'Old House'.

21 Capital commitments

Amounts contracted for but not provided in the financial statements:

	2025	2024
	£	£
Acquisition of property, plant and equipment	24,000	81,600

22 Events after the reporting date

23 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

23 -

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

23 Related party transactions

(Continued)

Rotary Club of Bramhall and Woodford Charities Trust Fund

24 Cash generated from operations Surplus for the year Adjustments for: Investment income recognised in statement of financial activities Fair value gains and losses on investments Depreciation and impairment of tangible fixed assets Movements in working capital: (Increase)/decrease in debtors Increase in creditors Cash generated from operations	2025 £ 184,370 (168,070) (14,628) 74,909 (31,713) 58,927 103,795	2024 £ 162,455 (155,915) (17,213) 76,832 1,350,006 1,650 1,417,815

24 -

24th September 2025

Hillbrook Grange Residential Care Home External Audit Findings Report For the year ended 31[st] March 2025

Simon Leitch-Devlin Simon.devlin@xeinadin.com 0161 476 8276

==> picture [321 x 404] intentionally omitted <==

----- Start of picture text -----
||| |---|---| |Contents| |Status and approach|03| |Audit opinion and comments|05| |Internal controls|06| |Findings|08| |Independence and non-audit services|09| |10| |Added value| |Appendices| |Unadjusted misstatements|1| |Disclosure adjustments|2| |Letter of representation|3|

----- End of picture text -----

This document is prepared solely for Hillbrook Grange Residential Care Home and should be read in its entirety. It must not be disclosed to third parties, quoted or referenced to without our prior written consent. Xeinadin Audit Limited does not owe a duty of care or assume a responsibility to any third party who chooses to rely on any of the information contained in this document. Any third party who relies on this information does so entirely at their own risk.

Status and approach

This report has been prepared for the board of trustees of Hillbrook Grange

Residential Care Home.

This report summarises the principle matters that have arisen from our audit of the accounts for the year ended 31st March 2025.

At the date of this report, subject to no significant post balance sheet events, we anticipate issuing a clean audit opinion.

This report has been prepared for the board of directors of Hillbrook Grange Residential Care Home for discussion at your meeting on 29th September 2025.

It must not be disclosed to third parties, quoted or referred to, without our prior written consent. No responsibility is assumed by us to any other person.

Approach

Our audit procedures were carried out in accordance with International Standards on Auditing (UK and Ireland).

Our audit work was carried out at Hillbrook Grange Residential Care Home and our office in accordance with our audit plan and in response to the perceived audit risks, no reasons or significant issues were identified which required us to change our approach and no additional risks were identified.

We consider the approach adopted will provide the trustees with the required confidence that a thorough and robust financial statement audit has been carried out.

Materiality

The concept of materiality is fundamental to the preparation of the financial statements and to the audit process. We have set our materiality level at £50,000. For audit purposes £2,500 is deemed as merely trivial.

Acknowledgements

We would like to take the opportunity to express our thanks to Kate Nicholson for her assistance during the course of our audit.

Hillbrook Grange Residential Care Home Management Letter for the year ended 31[st] March 2025

Status and approach continued

Independence

In accordance with the requirements of Auditing Standards and to assist you in reviewing the nature and extent of audit and nonaudit services provided by Xeinadin Audit and its associates, we are writing to set out relevant matters.

The firm provides audit services to the charity in accordance with the terms of our engagement letter. Xeinadin North (a network firm) provides assistance with the preparation of the statutory accounts, monthly bookkeeping and monthly payroll. All adjustments to the statutory accounts are discussed with Kate Nicholson for approval.

We wish to confirm to you that in our opinion the provision of such services by Xeinadin North Limited does not affect our independence as:

The additional services provided are of a routine compliance nature and the Board takes any decisions where judgement is required, and;

It is the responsibility of the trustees to prepare the accounts on a going concern basis (unless it is inappropriate to prepare them on this basis), additionally the trustees must ensure that the financial statements present a true and fair view and that management go through an appropriate process to arrive at the necessary estimates and judgements.

Legal and regulatory requirements

Our audit work complies with the following relevant legal and regulatory requirements:

Financial Reporting Standards Applicable in the UK and Republic of Ireland (FRS102)
the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (Charities SORP (FRS102))
the Charities Act 2011

Segregation of duties is ensured by using separate teams for audit and non-audit work.

We confirm that, in our professional judgement, the firm and the audit engagement team are independent of Hillbrook Grange Residential Care Home and have complied with relevant ethical requirements concerning independence.

Audit opinions and comments

Our anticipated audit opinion will be a clean audit opinion.

We have no comments to make concerning the qualitative aspects of the entity's accounting practices and financial reporting. Notwithstanding this, there are some weaknesses in internal controls which are outlined on pages 6 to 7.

We did not encounter any significant difficulties during the audit.

No misstatements were adjusted as a result of the audit process.

Unadjusted misstatements noted in the audit process are included in Appendix 1.

Adjustments affecting disclosure only are detailed in Appendix 2.

A draft of our proposed letter of representation is attached at Appendix 3. We draw your attention to paragraphs 10 and 12 concerning specific representations made to us during the course of our audit. In all other respects the letter is routine

Internal Controls

The purpose of an audit it is to express an opinion on the financial statements

Our audit included consideration of internal control relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control.

The matters being reported here are limited to those deficiencies that we have identified during the course of our audit and we have concluded are of sufficient importance to merit being reported to you in accordance with ISA 265.

It is not meant to be a full and accurate reflection of all weaknesses that may be present in your system.

In making our recommendations, we have considered the size of your company and the number of staff you employ. We shall be glad if you will let us know what steps have been taken in connection with the above.

The following weaknesses were identified, together with their consequences and suggested course of action. They have been categorised as follows

The business is subject to levels of fundamental risk where immediate action should be taken. The risk is so great that it could seriously damage the reputation of the business, increase the risk of fraud or cast doubt on the ability of the business to continue to be a going concern.

A weakness that presents a significant risk to the business, but would not be so serious as to be fundamental. Usually arisen from a key control which would be expected is not in place, or a major control failure. Attention is to be given to resolving the position.

These are relatively minor issues. Where a procedure has not been complied with but the non-compliance has not exposed the business to a significant level of risk or financial loss. Usually housekeeping issues where desirable improvements to be made to improve or implement the internal controls.

Hillbrook Grange Residential Care Home Management Letter for the year ended 31[st] March 2025

Internal Controls

Status	Weakness	Consequence	Recommendations	Ref	Management Response
Merits attention	One Trustee resigned in March 2025, this was not filed with Companies House or the Charities Commission.	Not meeting the requirement to update Companies House and the Charities Commission with changes to the charity	Ensure that all changes in Trustees are filed promptly with Companies House and the Charities Commission	O4	The resignation of the trustee in March, should have been updated with companies’ house and the charities commission within the timeframe that is required. Unfortunately, my knowledge of this resignation was that her mother had passed away, and I believed she was having time away, and may revoke her resignation, as an offer was made from the trustees to have time to think about her decision. I should have followed up on this sooner, and in future, will resign trustees as soon as I have knowledge of their resignation.
Merits attention	In November 2024 one employee’s overtime hours were duplicated from September 2024	The charity has made an overtime payment where no additional work was undertaken.	Ensure that overtime in the monthly payroll submission sheet is checked to timesheet records before submission.	R300	The payroll overtime was a duplicate error from the payroll sheet. The manager checks and approves wages before they are submitted to pay roll, but at times human error is made and it had been missed by more than one person. In response to mitigating this risk in the future, we have a fresh clear document to start with each month, to stop this duplication happening further.

Findings relating to planned risk areas: Significant risks*

Risk and approach

Findings

Management override

Review audit trail and journal entries posted within the period and maintain professional • We have seen no evidence of management override. scepticism.

Fraud in respect of revenue recognition Detailed testing of material income streams

Regularity body compliance (CQC)

Review the most recent CQC inspection

Investment valuation

Verification of share values by reference to publicly available market data

Creditors completeness

Reviewed post year end expense nominals and post year end invoices.

No information has come to light which suggests instances of material fraud have occurred.
• There has been no CQC inspection in the year, the latest being February 2023. • Investment values are materially correct • Identified immaterial difference between market price and price per investment brokers report – Appendix 1
• We identified immaterial post year-end expenditure relating to the year end 31 March 2025 – Appendix 1.

Capital commitments

Review of post year end expenditure, minutes and contracts to identify any commitments in respect of the new build

We identified that a formal contract has been agreed in May 2025 for capital works, this has been disclosed as a post balance sheet event – Appendix 2

Independence and non-audit services

We have considered whether non-audit services might be perceived as a threat to our independence as the charity’s auditor and have ensured that appropriate safeguards are put in place.

We have complied with the FRC’s Ethical Standards and therefore we confirm that we are independent and are able to express an objective opinion on the financial statements

The below non-audit services are consistent with the Board’s policy on the allotment of non-audit work to your auditors.

We confirm that we have implemented policies and procedures to meet the requirements of the FRC’s Ethical Standards.

Ethical standards and ISA UK 260 require us to give you full and fair disclosure of matters relating to our independence. In this context:

We confirm that there are no significant facts or matters that impact on our independence as auditors that we are required or wish to draw to your attention.

For the purposes of our audit we have made enquiries of all Xeinadin Audit teams and teams within the Xeinadin network providing services to The Hillbrook Grange Residential Care Home. The table summarises all non-audit services which were identified.

During the year the fees for non-audit services totalled £13,200 plus VAT.

Non-audit service provided	Service provided by	Threat	Safeguard
Statutory accounts production	Xeinadin North (Network firm)	Yes	Separate team
Monthly payroll	Xeinadin North (Network firm	Yes	Separate team
Monthly bookkeeping	Xeinadin North (Network firm	Yes	Separate team

Supporting You

We know the importance of regular v contact and our client care programme enables us to keep up to date with your challenges and offer an opportunity to share best practice.

Why choose Xeinadin ?

Fixed Fee

All fees will be agreed and fixed v up front. Any extra work will not be undertaken without your approval. We also offer a unique money back guarantee if you’re ever unhappy with our service.

Delivering Results Our aim is to become part of your v team. We’ll get to know your practice inside out; this means we can be a true business partner that easily identifies problems and spots opportunities.

Strategic Hurdles We will guide and support you v through the legal, financial and regulatory responsibilities, which means you can concentrate on the strategic development of your practice.

High Quality

Our clients’ needs have been v placed at the heart of our growth. As part of our commitment to help you, we will always share best practice with you.

2025-03-31-accounts

HILLBROOK GRANGE RESIDENTIAL CARE HOME ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

HILLBROOK GRANGE RESIDENTIAL CARE HOME

CONTENTS

HILLBROOK GRANGE RESIDENTIAL CARE HOME

LEGAL AND ADMINISTRATIVE INFORMATION

HILLBROOK GRANGE RESIDENTIAL CARE HOME

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

REFERENCE AND ADMINISTRATIVE DETAILS

Objectives and activities

Public benefit

HILLBROOK GRANGE RESIDENTIAL CARE HOME

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Achievements and performance

Significant activities and achievements against objectives

Financial review

HILLBROOK GRANGE RESIDENTIAL CARE HOME

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Reserves policy

Investment policy

Plans for future periods Redevelopment of Old House

Structure, governance and management

Governing document

Recruitment and appointment of trustees

HILLBROOK GRANGE RESIDENTIAL CARE HOME

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Organisational structure

Induction and training

Auditor

Disclosure of information to auditor

Small company provisions

HILLBROOK GRANGE RESIDENTIAL CARE HOME

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2025

HILLBROOK GRANGE RESIDENTIAL CARE HOME

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF HILLBROOK GRANGE RESIDENTIAL CARE HOME

Opinion

Basis for opinion

Conclusions relating to going concern

Other information

Opinions on other matters prescribed by the Companies Act 2006

HILLBROOK GRANGE RESIDENTIAL CARE HOME

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HILLBROOK GRANGE RESIDENTIAL CARE HOME

Matters on which we are required to report by exception

Responsibilities of trustees

Auditor's responsibilities for the audit of the financial statements

The extent to which the audit was considered capable of detecting irregularities including fraud

HILLBROOK GRANGE RESIDENTIAL CARE HOME

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HILLBROOK GRANGE RESIDENTIAL CARE HOME

Use of our report

Simon Leitch-Devlin, Senior Statutory Auditor

HILLBROOK GRANGE RESIDENTIAL CARE HOME

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2025

HILLBROOK GRANGE RESIDENTIAL CARE HOME

BALANCE SHEET

AS AT 31 MARCH 2025

HILLBROOK GRANGE RESIDENTIAL CARE HOME

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

Charity information

1.1 Accounting convention

Summary of significant accounting policies and key accounting estimates

Statement of compliance

Basis of preparation

1.2 Going concern

1.3 Charitable funds

1.4 Income

Donations and legacies

Investment income

HILLBROOK GRANGE RESIDENTIAL CARE HOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.5 Expenditure

Raising funds

Charitable activities

Support costs