The Foundation of Lady Katherine Leveson Financial Statements Year Ended 30 June 2024 Charity registration number: 1146710 Company registration number: 07890553
The Foundation of Lady Katherine Leveson Year ended 30 June 2024 Contents Page Governors, report Independent Auditorfs report Statement of Financial Activities (incorporating the Inco and Expenditure Account) Balance sheet 7-10 11 12 Statement of cash flows 13 Notes to the financial statements 14-28
The Foundation of Lady Katherine Leveson Governors. Report Year ended 30 June 2024 Governors of the Charlty The governors and OffirS who have served during the year and since the year end were as follows: Elected governors J Evans OBE (appointed as Chaimian on 22 November 2023) The Rt Hon the Earl of Aylesford (tired on 22 November 20231 The Rt Hon Viscount Daventy Sir William Dugdale Bt M C Fetherston-Dilke Mrs N Hammett Mrs C Hopkinson R Macpherson Mrs C Matthews Governors nominated by Solihull MBC D Bell Councillor A Burrow Officers of the Charity Master The Revd D Collins (appointed 18 July 2023) Bailiff Mrs S Woodman ACA Care manager Mr S Blancaflor Patron govemor The Rt Hon the Earl of Aylesford (appointed 31 January 2024) The Rt Revd Michael Volland, Bishop of Birmingham (appointed 10 November 2024)
The Foundation of Lady Katherine Leveson Govemors. Report Year ended 30 June 2024 Charity registratlon number 1146710 Company registration number 07890553 Reglstered office Temple House Temple Balsall Knowle Solihull B93 OAN Auditor Daffems LLP Chartered Accountants and Statutory Auditor One Eashvood Harry Weston Road Binley Business Park Coventry CV3 2UB Bankers HSBC Bank plc 130 New Street Birmingham B2 4JU Solicitors Wright Hassall LLP Olympus Avenue Leamington Spa Warwickshire CV34 6BF Investment managers Sarasin & Partners LLP Juxon House 100 St. Paul's Churchyard London EC4M 8BU Propety Income Trust for Charities Mayfair Capital Investment Management Limited 55 Wells Street London W1T3PT Charities Propety Fund Savills Investrnent Management 33 Margaret Street London W1G OJD CCLA Investment Management Limited Senator House 85 Queen Victoria Street London EC4V 4ET
The Foundation of Lady Katherine Leveson Governors. Report Year ended 30 June 2024 INTRODUCTION The governors present their report and the audited financial statements of the charity for the year ended 30 June 2024. The governors have adopted the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities. {FRS 102) in preparing the annual report and financial statements of the charity published in October 2020. The Foundation of Lady Katherine Leveson is a charitable company limited by guarantee (charity number 1148710 and company number 07890553). The affairs of the historic charity and the company were brought together under a linking order dated 22 June 2012 under which order these accounts are prepared. The company is governed by ts Articles and Memrandum of Association dated 15 Dember 2011. The Foundation is managed through the Board of governors which meets as necessary, generally bi-monthly. Day-to-day management of the Foundation is vested in a sentor management team comprising the Master (a statutory appointment under the tern of the Articles), the Bailiff (appointed as Company Secretary) and the Care Manager. It is a condition of the Articles that the Master be an ordained priest of the Church of England., the Bailiff has appropriate accountancy qualifj¢ations. The Foundation seeks to recruit govemors with appropriate technical expertise or knowledge and provides full induction into the day-to-day activities of the Foundation as part of the appointment process. Emphasis is also given to recwiting govemors who live locally who can therefore support the Foundation more readily on a day-to4ay basis. Govemors are appointed at ordinary meetings by way of a majority resolution.. Solihull Metropolitan Borough Council is entitled to appoint two governors to the Foundation. OBJECTS OF THE FOUNDATION Lady Katherine Leveson, who died in 1674, pro4Kled endowments in her will for almshouses. the church and the school at Temple Balsall. The present4ay objects of the Foundation are to: relieve elderly people and those in poor health who are in need by providing accommodation, Servi or facilities calculated to relieve the needs of such persons. advan the education of the pupils through the Educational Foundation. advan the education of the public in the subject of ageing, spirituality and social policy. advan the Christian religion for the benefit of the public. PRINCIPAL ACTIVITIES The Foundation tcNJay provides supported housing accommodation and residential care for the elderly in a Christian environment, together with support for St Mary's church and the Lady Katherine Leveson Church of England Primary school. The Foundation offers accommodation for up to 51 residents" the Court had 29 apartments providing sidential care, with 16 independent living flats housing up to a fvrther 22 people living more independently. The management have previously registered 4 of the independent living flats to accommodate residential care if required and continue to review the remaining independent living flats to ensure the best and most flexible use to meet the needs of both residential and independent living residents.
The Foundation of Lady Katherine Leveson Governors, Report Year ended 30 June 2024 ACHIEVEMENTS AND PERFORMANCE The financial results of the Foundation for the year ended 30 June 2024 are set out in detail on page 11. These show the performance of the Foundation's housing operations residential care and independent living housing and of its investments. The govemors regard these as separate but related activities and the notes to these accounts provide analysis of the financial perf0rrnan of each in notes 4 to 14. The Foundation generated an operating surplus of £43k (2023 - £149k); in addition, there were unrealised net investment gains on the quoted investment portfolios of £487k {2023 - losses of £48kl generating an overall gain of £530k (2023- gain of £101k). The Foundation's core operations (as represented by the movement in unrestricted funds) generated a surplus beft)re investment gains for the year of £31k. However, as the analysis in note 14 shows, the cost of operating the care home, including the £250k notional rent of the buildings in which it operates, generates a oss as in earlier years. The changes to the National Insuran rates and National Living wages levels announced by the Government in the November budget will have an impact on the finances of the core operations, which is being assessed. The propety improvements designated reserve had a balan as at 30 June 2024 of £950k (2023 - £950k). There is also a major repair fund with a balan at 30 June 2024 of £233k (2023 - £212k) held with Sarasin & Partners LLP. All propety repairs during the year were funded directly from unrestricted funds. Following the completion of the project to replace the main boilers in the care home during the financial year at a cost of £441 k, there are currentty more propety improvement WO in progress to repla the radiators and pipework within the care home - to be completed in hvo stages during the summer of 2024 and 2025. During the year, a new care home website was created - ladykcare.co.uk - with new branding and fresh colours. Work is now progressing on a new Foundation website. The governors welcomed the Rev Debbie Collins as the Master of the Foundation during the year. she was installed on 18th July 2023 as Vicar of St Mary's and has successfully completed her first year. The governors wish to record their appwation and thanks to Lord Aylesford who retired as 2 governor and as chairman of the board of govemors in November 2023 after serving for 33 years and as chairman for over 14 years. In January 2024 the governors agreed to appoint Lord Aylesford to the honorary role of Patron Governor in recognition of his great contribution to the Foundation. The govemors were also delighted that the new Bishop of Birmingham, the Rt Revd Dr Michael Volland also accepted the role of Patron Govemor, thereby maintaining the strong historic link between the Foundation and the Bishopric of Birmingham. The govemors are enomus grateful to the care home management and staff and for their tireless dedication to the loving care of our residents. The govemors continue their commitment to having well-trained staff,. the majority of care staff have NVQ qualificab'ons and staff retenb'on is encouraged by investment in personal development and staff wellbeing. Providing an excellent standard of care will always be a top priority for the Foundation. LADY KATHERINE LEVESON CHURCH OF ENGLAND PRIMARY SCHOOL One of the aims of the Foundation is to support the advanrnent of the education of the pupils of the school through the Educational Foundation. Since September 2020, the school has been part of the Bimiingharn Diocesan Multi-Academy Trust ('BDMAT') who have day-to-day responsibility for the management and development of the school. As part of the transfer to the Trust, BDMAT took on a long lease with the Foundation for the schwl buildings, on a peppercorn rent, assuming sPonsIbl11ty for repairs and any new buildings.
The Foundation of Lady Katherine Leveson Governors, Report Year ended 30 June 2024 FUTURE PLANS During the year the governors stepped up their exploration of strategic options for the future by evaluating how the potential of the site, including the redundant bams. might best be developed to further the Foundation's objects. The SeNiS of Isabel Merrifield of ISME Consulting were engaged to support the governors and the management team in this work, which is continuing. Plans have been developed to improve and extend the communal living spaces in the main care home; planning permission originally sought in 2022-23 has not yet been granted - making architectural changes to a listed building on an historical site is proving not to be straightforward. FUNDS Transfers tolfrom reserves are considered on an annual basis depending on futu expectat#)ns of needs and events. Amounts are transferred to designated funds to enable futu amounts to be expended on maintaining and improving the propety portfolio. INVESTMENT POLICY The Foundation's investment objective is to maximise the total investment retum over the longer term without taking undue risk, principally achieved by investing in a well-drversified portfolio of equities and fixed interest investments through the use of Fooled funds, with the principal fijnd manager being Sarasin & Partners. The governors invest separately in propety pch)led funds managed by Mayfair Capital Investment Management Limited and the Charities Property Fund which provide attractive income yields from portfolios of diversffied commercial propety. The total return on the endowment investments was £481k., £135k relates to investment income which has been used to fund the aims of the charity on a day-to-day basis during the financial year. £150k has been added to the capital value of the underlying endowment investment portfolio at June 2024 to maintain its value and to ensure that the value of the investment does not get diminished by infiation over the longer term. The remaining £196k of the return has been added to the unapplied total return fund for future use by the Foundation. PUBLIC BENEFIT The governors confim that they have paKI due regard to the guidan given by the Charity Commission and confirm their belief that the Foundation's purpose is for public benefit. RISK The governors have established a comprehensive range of procedures in order to minimise risk to the Foundation's activities, including clear tems of reference for all committees, a govemance structure with clear organisational lines of reporting and regular operational review of disaster planning and crisis management Strategy. RESERVES POLICY The governors continue to ensure that sufficient reserves are maintsined to finance the day-to-day running of the Foundation's activities. FIXED ASSETS Movements in tangible fixed assets and fixed asset investnEnts are disclosed within the notes to the accounts.
The Foundation of Lady Katherine Leveson Governors, Report Year ended 30 June 2024 PAY POLICY FOR SENIOR STAFF The remuneration for the management team is reviewed by the govemors who use benchmarking against comparable organisations along with an assessment of market rates and consideration of performance. STATEMENT OF GOVERNORS, RESPONSIBILITIES The governors (who are also directors for the purposes of company law) a required by company law to prepare financial statements for each financial year that grve a true and fair view of the state of affairs of the Foundation at the end of the year and the incoming and outgoing reSoUrS for the year then ended. In preparing these financial statements, the govemors a required to.. select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charrties SORP. make judgements and estimates that are reasonable and prudent., stste whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial ststements. prepare the financial statements on the going conrn basis unless it is inappropriate to presume that the Foundats'on will continue in operation. The governors are responsible for keeping accounb.ng records that disclose with reasonable accuracy at any time the financial position of the Foundakn'on and enable them to ensure that the financial statements comply with the Companies Act 20C6. They are also responsible for safeguarding the assets of the Foundation and hen for taking reasonable steps for the prevention and detection of fraud and other irregularities. The govemors are responsible for the maintenance and integrity of the Foundation and any financial information included on the Foundation's website. Legislation in the United Kingdom goveming the preparation and dissemination of financial statements may differ from legislation in other jurisdicts"ons. In accordance with company law, as the company's directors. the governors rtify that: there is no relevant audit information of which the company's auditors are unaware and that, as directors of the company, they have tsken all the steps that they ought to have taken in order to make them*lves aware of any relevant audit information and to establish that the Foundats"on's audÉtors are aware of this information. CONCLUSION The governors are extremely grateful to all the management and staff for the enthusiasm and commitment with which they have carried out their duties and responsibilities in the ever challenging and changing care profession. AUDrroRS Daffems LLP have expSsed their willingness to continue in offi as auditors and a resolukn'on to re-appoint them will be proposed at the forthcoming Annual General Meeting. This report has been prepared in accordance with the Statement of Recommended Practi.. Accounting and Reporting by Charits'es (October 2019) and in accordan wrth the special provisions for small companies under Part 15 of the Companies Act 20CE. f,Jto L ON BEHALF OF THE GOVERNORS.... Date 27 November 2024
The Foundation of Lady Katherine Leveson Independent Auditor's Report Year ended 30 June 2024 Oplnlon We have audited the financial statements of The Foundation of Lady Katherine Leveson (the 'charitable company,) for the year ended 30 June 2024 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and R8public of Ireland (United Kingdom Generally Accepted Accounting Practice). sn our opinion the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 30 June 2024 and of its incoming resour$ and application of resources, including its income and expenditure, for the year then ended. have been properly prepared in accordance with United 'ngdorn Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. the governors were not entitled to prepare the financial statements in accordance with the small companies, fegime and take advantage of the small companies, exemptions in preparing the governors, report and from the requirement to prepare a strategic report Basis for opinion We conducted our audit in accordance WFth Intemats'onal Standards on Auditing (UK) {ISAs {UK)) and applicable law. Our responsibilities under those standards are fiJrther described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that aE 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 obtsined is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern We have nothing to pOrt in respect of the following matters in relation to which the ISAS (UK) require us to report to you where.. the govemors, use of the going concem basis of accounting in the preparation of the financial statements is not appropriate., or the govemors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going conrn basis of accounting for a period of at least e1ve months from the date when the financial statements are authorised for issue.
The Foundation of Lady Katherine Leveson Independent Auditor's Report Year ended 30 June 2024 Other infomiation The governors are responsible for the other information. The other information comprises the information included in the govemors, annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otheiSe explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is matenally inconsistent with the financial statements or our knowledge obtsined in the audit or otherwise appears to be materially misstated. If we identrfy such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misststement of this other infomation, we are required to report that fact. We have nothing to report in this regard. Oplnlons on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the govemors, rep)rt for the financial year for which the financial statements are prepared is consistent with the financial statements,. and the governors, report has been prepared in accordan with applicable legal requirements. Matters on whlch we are required to rnport by •xc•ption In the light of our knowledge and understanding of the charitsble company and its environment obtained in the course of the audit, we have not identified material misstatements in the governors, report. We have nothing to port 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 kep( 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 acwunting records and retums.. or certain disclosures of directors. remuneration specified by law are not made; or we have not recetved all the infomiation and explanations we require for our audit; or the governors were not entitled to prepare the financial statements in accordance with the small companies, regime and to take advantage of the small companies, exemptions in preparing the governors, report and from the requirement to prepare a strategic report.
The Foundation of Lady Katherine Leveson Independent Auditor's Report Year ended 30 June 2024 Responsibilities of governors As explained more fully in the governors, responsibilities statement, set out on page 6, the governors (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view and for such internal control as the governors deterniine 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 governors are responsible for assessing the charitable company's ability to continue as a going cOnrn, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the governors 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 audlt 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. 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 ifregularities, including fraud. The specffic procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below: Enquiry of management and those charged 1th govemance around actual and potential litigation and claims,. Reviewng minutes of meetings of those charged with governan., Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. Performing audit work over the risk of management overrrde of controls, including testing of joumal entries and other adjustments for appropriateness, evaluating the business rationale of signifjcant transactions outside the normal course of business and reviewing accounting estimates for bias. Because of the inherent limitations of an audrt, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that Complian wrth a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregulartlies occurring due lo fraud rather than eOr, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.org.ukJauditorsresponsibilities. This description forms part of our auditor's report. We communicate with those charged with governan regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
The Foundation of Lady Katherine Leveson Independent Auditor's Report Year ended 30 June 2024 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 pemiitted 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. Lucy Hatton FCCA for and on behalf of Daffems LLP Chartered Accountants and Statutory Auditor One Eastwood Harry Weston Road Binley Business Park Coventry CV3 2UB Date: 27 November 2024 10
The Foundation of Lady Katherine Leveson Statement of financial activities (incorporating the income and expenditure account) Year ended 30 June 2024 Totsl funds 2024 £'ooo Total funds 2023 £'ooo Unrestrlcted Restricted Endowment funds funds funds £'ooo £'ooo £'ooo Incomo from: Donations and legacies Charitable activities Other trading activities Investments Other income Allocated to income from unapplied total return 19 24 1,534 32 1,492 1.534 252 135 387 357 12 135 {135) Total income 1,929 19 1,948 1,895 Expenditure on: Propety management Charitable activities 10 11 (253) (1.645) (2) (5) (255) (1,650) (217) (1,529) Totsl expenditure Net income before invèstment gains and losses (1,898) (7) (1,9051 (1,746 31 12 43 149 Net unrealised gainsl {losses) on investments 19, 20 141 346 487 (481 Net income after gainsl (108se8) on investments 172 12 530 101 Transfers between fvnds 25 (5) Net movement in funds 25 177 346 530 101 Reconciliation of funds: Total funds brought forward 25 3,475 39 18.442 21,956 21,855 Total funds carried forward 25 3,652 18,788 22,486 21,956 All income and expenditure derive from continuing activitr'es. For the purpose of reporting under the Companies Act 2006, net income after gains and losses on investments, excluding the £346k gain on endowment investments (2023.. £59k loss) is £184k (2023.. £160k). The notes on pages 14 to 28 fomi part of the financial statements. 11
The Foundation of Lady Katherine Leveson Balance sheet Year ended 30 June 2024 2024 £'ooo 2023 £'ooo £'ooo £'ooo Fixed assets Tangible assets Investments 18 19 4,731 16,191 4,224 15,725 20,922 19,949 Current assets Investments Stocks Debtors Cash at bank and in hand 20 21 22 1,083 1,062 187 716 116 1,207 1,988 2,387 Creditors: amounts falling due within one year 23 (424) (380) Net current assets 1,564 2,007 Net assets 22,486 21,956 Charity funds Permanent endowment Restricted funds Unrestricted funds- - Income and expenditure fvnd Designated funds 25 25 18,788 18,442 39 25 25 1,927 1,725 1,918 1,557 3,652 3,475 26 22,486 21,956 These financial statements have been prepared in accordance with the special provisions applicable to small companies subject to the small companies, regime. The financial statements were approved by the governors and authorised for issue on 27 November 2024. Signed on behalf of the Board of govemors Tdv,- GuLtL4 (,Ik4 r IIL J Evans OBE, Chairman M C Fetherston-Dilke, Governor The notes on pages 14 to 28 form part of these financial statements. Company registration number: 07890553 12
The Foundation of Lady Katherine Leveson Statement of Cash Flows Year ended 30 June 2024 2024 £'ooo 2023 £'ooo Cash flow from operating activities 27 (300) (1691 Net cash flow from operating actlvities (300) (1691 Cash flow from Investing activities Tangible fixed assets acquired Transfer of funds to higher rate savings Interest received Dividends received Rents received from investment properties (578) (1341 (2001 33 164 160 61 179 147 Net cash flow from Investing activtties (191) 23 Net decrease in cash and cash equivalents 1491) (146) Cash and cash equivalents at 1 July 2023 1,207 1,353 Cash and cash equivalents at 30 June 2024 716 1,207 Cash and cash equivalents consist of: Cash at bank and in hand 716 1,207 Cash and cash equlvalents at 30 June 2024 716 1,207 13
The Foundation of Lady Katherine Leveson Notes to the Financial Statements Year ended 30 June 2024 General infonnatlon The Foundation of Lady Katherine Leveson is a charitable company limited by guarantee, incorporated and domiciled in England (Cornpany number 07890553, Charity number 1146710). In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the charity information on page 2 of these financial statements. The natu of the charity's operations and principal activities are described on page 3. Princlpal accounting policies (a) Basis of preparation The financial statements have been prepared under the Charities Act 2011 on a going concern basis and under the historical cost C£Jnvention, modified to indude rtain items at fair value. The financial statements have been prepared in accordan with Accounting and Reporting by Charities Statement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006 and UK Generally Apted Practs"ce. The Foundation of Lady Katherine Leveson meets the definition of a public benefit entity undef FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value, unless otherwise stated in the relevant accounting policy notes. The financial statements are prepared in sterfing which is the functional currency of the charity and rounded to the nearest £1. The preparation of financk41 statements in Complian with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the charity's accounting policies (see note 3). The financial ststements have been prepared on a going conrn basis. The govemors consider that there is a reasonable expectation that the company has sufficient resour5 to continue in operational existence for the foreseeable future and for this reason they have adopted the going concern basis in preparing the fjnancial statements. (b) Funds General funds are unrestricted funds which are available for use at the discretion of the governors in furtherance of the general objectives of the Foundation and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the govemors for particular purposes. The aims and use of each designated fund are set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Foundation for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aims and use of each restricted fund are set out in the notes to the financial ststements. Pemanent endowment funds represent those assets which must be held permanently by the Foundation, principally investments. Income arising on the endowment funds can be used in accordance with the objects of the Foundation and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the permanent endowment fund. 14
The Foundation of Lady Katherine Leveson Notes to the Financial Statements Year ended 30 June 2024 Principal accounting policies (continued) (c) Income resources AIS incoming resources are included in the statement of financial activities when the Foundation is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies. entitlement is the earlier of the Foundation being notified of an impending distribution or the legacy being received. Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated ft)r resale are included as income when they are sold. Donated facilities are included at the value to the Foundation where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers. (dl Resources expended All expenditure is accounted for on an accruals basis when a liability is incurred and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have bn allocated to acts"vities on a basis consistent with use of the reSoUrs. Costs of generated fijnds are those costs attributable to generating incoming resources for the Foundation. Charitsble activrties comprise all costs incurred in the pursuit of the charitable objects of the Foundation. Governan costs include those incurred in the governan of the Fi)undation and are primarily aSlated wryth consts"tutional and statutory requirements. (e) Tangible red assets Tangible fixed assets. except the care home and related buildings, are stated at cost less accumulated depreciation. Depreciation is charged on a straight-line basis over the expected economic useful lives of the assets at the following annual rates.. Fixtures and fittings Motor vehicles Refurbishment fixtures and fittings Major boiler and heating rep1arnent 25.fi straight line 250A straight line 10°k straight line 4% straight line {fj Care home and related bulldings The care home and related buildings are included at valuation based on the depreciated replament cost basis. They are maintained in a state of repair such that their estimated residual value is not less than their cost or valuation. The annual charge for depreciation is £Nil. (g) Flxed asset investments Properties held as fixed asset investments are maintained in a state of repair such that their estimated residual value is not less than their cost or valuats'on. No records exist for the original cost in respect of the majority of the proFety. Fixed asset investment properties are held at current valuation. Fixed.asset investments in listed securities are held at market value. Realised gains and losses on disposal and unrealised gains and losses arising on revaluation of investments are both recognised in the statement of financial activrties. 15
The Foundation of Lady Katherine Leveson Notes to the Financial Statements Year ended 30 June 2024 Principal accounting policies (continued) (h) Current asset investments Current asset investments include fvnds which may be required at short nots'. (l) Stocks Stocks are stated at the lower of cost and net realisable value. (l) Debtors and creditors Debtors and creditors with no stated interest rate and re1vable or payable wtthin one year are recorded at transaction price. Any losses ansing from impairment a recognised in expenditure. (k) Donations received Donations are disclosed as income in the statement of financial activities when received. Those donations which are reiVed for specthc purposes are carried fotward in restricted funds to the extent that they have not been expended in the year. 11) Pension ¢osts The Found8kn'on operates a defined contribution pension scheme for employees. The assets of the scheme are held separatety from those of the Foundation. The cost of providing retirement pensions and related benefits is charged to management expenses over the periods benefiting from the employee's Seprfls. Im) Routine maintenance The govemors have established a regular programme of cyclical repairs and maintenan. Costs are charged in the year in which they are incurred. In) Major repairs Costs of major repairs, unless representing improvements to the properties, are charged in the year in which they are incurred. lo) Value added tsx In these financial statements, where applicable, expenditu is shown inclusNe of VAT as the Foundation is not registered for value added tax. (p) Website ¢08ts Costs relating to website design and maintenance are expensed in the year in which they are incurred. (q) Operating leases Rentals applicable to operating leases are charged to the statement of financial activits.es over the period in which the cost Is incurred. 16
The Foundation of Lady Katherine Leveson Notes to the Financial Statements Year ended 30 June 2024 3 Judgements and key sources of estimatlon uncertainty Preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amunts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.. Tanglble fixed asset valuation The care home and related buildings were valued by Barfow Associates as at 30 June 2016 using a depreciated replament cost basis to establish a dMed cost at the FRS102 transition date. The depcIated replament value takes into account the value of the land for its existing use and the gross plament cost of the buildings. The main properties are several hundred years old and there is no intention of selling them. Therefore, the use of open market value which is based on the best price the sale of the propety might reasonably be expected to realise is considered to be inappropriate. The following are the charity's key sources of estimation uncertainty: Fixed assets investments The valuation of the pemanent endowment properties was prepared using an open market valuation basis and in accordance with the RICS appraisal and valuation manual. Impairment of debtors The charity makes an estimate of the recoverable value of trade debtors. INhen assessing impairment of trade debtors, management consider them individually reviewing the ageing profile of the balan and the historical experience. Income from donations and legacies 2024 £'ooo 2023 £'ooo Donations Legacies 26 15 24 32 ncome from donab'ons and legacies was £24k (2023.. £32k) of which £19k (2023.. £24k) was attributable to restricted and £5k (2023: £8k) to unrestricted funds. 17
The Foundation of Lady Katherine Leveson Notes to the Financial Statements Year ended 30 June 2024 Income from charitable actlvltles 2024 £'ooo 2023 £'ooo Residential care Independent living accommodation Respite care Domiciliary care Other income 1,227 139 129 1,170 100 199 19 1,534 1,492 As part of its charitable aims, the Foundation supported a number of residents with contributions towards their fees during the financial year to the value of £42k (2023.. £53k). All income was attributable to unrestricted funds. Income from trading activities Income from trading actNlties was £2k (2023: £2k) of which all was attributable to unrestricted funds. Income from Investments 2024 £'ooo 2023 £'ooo Dividend and interest income Rentsl income 240 147 197 160 387 357 Income from investments - stated net of management fees - was £387k (2023.. £357k) of which £135k (2023.. £124k) was attributable to endowment and £252k (2023: £233k) was attributable to unrestricted funds. Other income The charity received no Government grants this year {2023'. £11 k) for Covid support in care homes, used to help fund infection control costs. vaccination, workforce retention and also to support staff in previous years. The small amount of other income is attributable to unrestricted funds. 18
The Foundation of Lady Katherine Leveson Notes to the Financial Statements Year ended 30 June 2024 Pemianent endowment invested on a totsl return basis The charity has exercised its rights under section 104(A) of the Charities Act 2011 with effect from 30 June 2019. This power permtts the governors permanently to invest endowed funds to maximise total return and therefore to apply an appropriate portion of the unapplied total return to income. The unapplied total return remains invested as part of the permanent endowment until that power is exercised. When exercised, it allows the governors to apply an appropriate portion of the unapplied total return to income each year. During the current year the total return on the endowment investments was £481k (2023: net gain of £65k)', the governors transferred £135k (2023.. £124k) of investment income received to fund the aims of the charity on a day to day basis and £150k (2023.. nil) has been added to the capital value of the underlying endowment investment portfolio to maintain its value and to ensure the value of these investments does not get diminished by inflation in the longer term. The remaining £196k (2023.. Ioss of £59k) of the return has been added to the unapplied total return fund for future use by the Foundation. Endowment Unapplied Permanent for total endowment investment return Investments £'ooo £'ooo £'ooo At 1 July 2023 2,352 1,704 4,056 Movements Investment income Gains l (losses) 135 135 346 481 481 Unapplied total retum allocated to income Unapplied total retum allocated to investment to maintain capital value (135) {135) 150 (150) Net movement in the porting period 150 196 346 Total value of permanent endowment investments at 30 June 2024 2.502 1,900 4,402 10 Property management Propety management comprises the costs of managing and carying out repairs as needed to the charity's investment properties and the buildings at Temple Balsall, other than those used in the care home, which are accounted for as shown in note 11. 19
The Foundation of Lady Katherine Leveson Notes to the Financial Statements Year ended 30 June 2024 11 Analysis of expenditure on charitsble activltles Activities undertaken directly £'ooo Support costs £'ooo Total 2024 £'ooo Total 2023 £'ooo Care home Provision of care services Routine maintenan Major repairs 1,351 92 121 1,472 92 1,426 63 1,450 121 1,571 Support for. St Mary's Church Lady Katherine Leveson School 1,489 47 32 47 32 33 1,529 121 1,650 1,529 Expenditure on charitable activities was £1,650k {2023= £1,529k) of which £5k (2023.. £4k) was attributable to restricted funds. £1,645k (2023.. £1,525k) of the above costs was attributable to unrestficted funds. 12 Support Costs 2024 £'ooo 2023 £'ooo Masterfs salary (part) Management Administration Insurance Govemance (see note 13) 11 56 85 24 21 24 19 121 142 13 Governance costs 2024 £'ooo 2023 £'ooo Audit and accountancy Bailiffs salary (part) 14 12 21 19 20
The Foundation of Lady Katherine Leveson Notes to the Financial Statements Year ended 30 June 2024 14 Anatysis of net incomlng resources Properties and Investments £'ooo Other charitable activities £'ooo Care home activities £'ooo Total £'ooo Income: Donations and legacies Rental and other investment income Charitable activities Other income Total Income 14 24 387 387 1,534 1,534 392 1,548 1,948 Expendlture: Raising funds- property management Charitable activities Total expendlture (255) (255) 1,650 (1,905) 1.571 {1,571) 79 (79) (255) N•t income 137 (23) (71) 43 Notional rent payable by care home 250 {250) Total 387 {273) (71) 43 The notional rent payable is derived from management estimates based on current rent levels established by the rent officer. 15 Governors, and key management personnel remuneratSon and expenses The governors neither reiVed nor waived any MUneratIon during the year (2023.. £Nil). The total amount of employee benefits received by key management personnel was £160k {2023'. £138k) the increase principally reflecting the appointment of a new Master during the financial year. The governors consider that the Foundation's key management comprises the Master, Bailiff and Care Manager. One governor had expenses reimbursed of £389 during the year for costs associated wrth hosting a lunch for the retiring Chair of governors (2023: £Nil). 21
The Foundation of Lady Katherine Leveson Notes to the Financial Ststements Year ended 30 June 2024 16 Staff costs and employee benefits The average monthly number of employees during the year was as follows: 2024 2023 Master, Bailiff, and care Manager Care assistants, kitchen, manual and other administration staff 41 42 44 44 The average number of employees expressed as full-time equivalents was 35 {2023.' 331. Total staff costs and employee benefrts were as follows: 2024 £'ooo 2023 £'ooo Wages and salaries Social security costs Pension costs Redundancy costs 1,081 77 29 14 1,008 61 20 1,201 1,089 The above figures include payments for sick pay and agency staff. The company has a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £29k (2023.. £20k). One employee received total remuneration including employee benefits {excluding employer pension costs) of more than £60,000. 17 Taxat5on The company is exempt from corporation tax on its charitable actÉvities; input VAT is irrecoverable. 22
The Foundation of Lady Katherine Leveson Notes to the Financial Statements Year ended 30 June 2024 18 Tangible fixed assets Care home and related buildings £'ooo Flxtures and fittings £'ooo Motor vehicles £'ooo Total £'ooo Cost or valuation= At 1 July 2023 Additions Disposals At 30 June 2024 3,973 520 745 58 (59) 744 25 4,743 578 159 5,262 4,493 25 Depreciation.. At 1 July 2023 Charge for the year Eliminated on disposals At 30 June 2024 494 59 (54 499 25 519 66 25 531 Net book value: At 30 June 2024 4,486 245 4,731 At 30 June 2023 3.973 251 4,224 The care home and related buildings were re-valued on transition to FRS 102 as at 30 June 2016 by Bartow Associates following guidance from ICAEW. The valuats.on was prepared using a depreciated replament cost basis. The depreciated rePlement value took account of the value of the land for its existing use and the gross replacement cost of the buildings. Apprcspriate deductions were made to allow for age, condition, economic or functronal obsolesn and environmental and other factors. This may result in the existing propety being worth less than replacement and, in the event of fOrd sale, a lower figure being achieved. The main properties are several hundred years old and there is no intention of selling them. Therefore, the use of open market value which is based on the best price the sale of the propety might reasonably be expected to realise is considered to be inappropriate. Additions on the care home and related buildings during the year relate to the completed costs of the installation of the new care home boilers and the stsrt of the pipework and radiator rep1arnent project, which will be depreciaied over 25 years. 23
The Foundation of Lady Katherine Leveson Notes to the Financial Statements Year ended 30 June 2024 19 Flxed asset investments Permanent endowment propertles £'ooo Pemianent endowment Investments £'ooo Unrestricted fund Investments £'ooo Total £'ooo Valuation At 1 July 2023 Change in market value 10,461 4,056 346 1,208 120 15,725 466 At 30 June 2024 10,461 4,402 1,328 16,191 Investments at fair value comprise: 2024 £'ooo 2023 £'ooo Investment properties Property trusts Income and growth funds 10,461 331 5,399 10.461 353 4,911 16,191 15,725 The permanent endowment properties were revalued as at 30 June 2021 by Barlow Associates. The Valuation was prepared using an open market valuation basis and in accordance wrth the RICS appraisal and valuation manual. 20 Current asset investments £'ooo At 1 July 2023 Change in market value 1,062 21 At 30 June 2024 1,083 Cost 776 Cufnt assets investments include the Sardsin Endowment Fund Class A with a current market value of £233k (2023: £212k), the balan being held in cash, to cover the cost of future major repairs. 24
The Foundation of Lady Katherine Leveson Notes to the Financial Statements Year ended 30 June 2024 21 Stocks 2024 £'ooo 2023 £'ooo Food, cleaning and laundry 22 Debtors 2024 £'ooo 2023 £'ooo Residents, contribution arrears Rent arrears Prepayments and accrued income Other debtors 77 21 41 17 20 39 40 187 116 23 Creditors: amounts falling due withln one year 2024 £'ooo 2023 £'ooo Trade creditors Other tax and social securty Accruals Other creditors Residents, contribution in advance Related party creditor (see note 31) 101 18 155 67 77 65 20 162 58 70 424 380 24 Leases Operating leases Total future minimum lease payments under non-cancellable operating leases are as follows: 2024 £'ooo 2023 £'ooo Not later than one year Later than one and not later than fve years Later than five years 23 25 25
The Foundation of Lady Katherine Leveson Notes to the Financial Statements Year ended 30 June 2024 25 Fund reconciliation Restricted funds Balance at 1 July 2023 £'ooo Gains I Balance at (losses) 30 June 2024 £'ooo £'ooo Income Expenditure £'ooo £'ooo Transfers £'ooo Donation reserve 39 19 (7) (5) 19 17) (5) 46 Donations reserve represents donab'ons received less expendrture incurred in line with donors, wishes. Unrestrictèd funds Balance at 1 July 2023 £'ooo Unrealised Balance at Gains I 30 June (losses 2024 £'ooo £'ooo Income £'ooo Expenditure Transfers £'ooo £'ooo Income and expenditure fund Designated: Property improvements Lady Cadbury bequest Barbara Leonard bequest Major repair reseNe 1,818 1,929 (1,898) 73 1,927 950 950 313 31 344 182 212 16 21 198 233 3,475 1.929 (1,898) 141 3,652 Propety improvements - reseNes have been established to augment funds required to maintain and improve the historic Temple 8alsall buildings. Lady Cadbury bequest- these fijnds have been designated from the original bequest from the late Lady Cadbury in 2010-11 for the benefit and Ca of the eklerly at Ternp Balsall. Barbara Leonard bequest - these funds have been designated from the original bequest from the late Barbara Leonard for the benefit of the Temple Balsall community. Major repair reserve - these funds have been designated to provide for estimated fvture expenditure principally arising out of quinquennial inspections on the functional propety of the Foundation. 26
The Foundation of Lady Katherine Leveson Notes to the Financial Statements Year ended 30 June 2024 25 Fund reconciliation (Continued) Permanent endowment Allocated to income from unapplied total return £'ooo Balance at 1 July 2023 £'ooo Balance at 30 June 2024 £'ooo Gains I (losses) £'ooo Income £'ooo Endowment funds 18.442 135 (135) 346 18,788 18,442 135 (135) 346 18,788 26 Analysis of net assets between funds Pernianent endowment £'ooo Restricted funds £'ooo Unrestricted funds £'ooo Total £'ooo Fixed assets Investments Current assets Current liabilities 3,925 14,863 806 1,328 1,942 {424) 4,731 16,191 1,988 (424) Total 18,788 3,652 22,486 27 Reconciliation of net Income to net cash flow from operatlng activities 2024 £'ooo 2023 £'ooo Net incorne for year Dividends received Interest receivable Rental income Depreciation and impairment of tangible fixed assets (Gains)Ilosses on investments Loss on disposal of tangible fixed assets (Increase)Idecrease in stock (Increase)Idecrease in debtors Increasel(decrease) in creditors 530 {179) (61) (147) 101 (164) (33) (1601 55 48 (487) (71) (24) Net cash flow from operating acb'vities (300) (169) 27
The Foundation of Lady Katherine Leveson Notes to the Financial Statements Year ended 30 June 2024 28 Contingent liabilities There were no contingent liabilities at either financial year end other than those relating to tenants, improvements which may be payable on the termination of the farm tenancies. 29 Accommodatlon In management At 30 June 2024, the Foundation had 45 units of accommcxjation {2023.' 45) offering accommodation for up to 51 residents. The liability of the guarantors The Foundation does not have a share capital and is limited by guarantee. In the event of the company being wound up, the maximum amount for which each member is liable to contribute is £10. There were 10 {2023.' 11) such members at 30 June 2024. 31 Related parties The Foundation continues to support the connected charity, the Educational Foundation of Lady Katherine Leveson. At 30 June 2024, £5k (2023.. £5k} VRS owed to the Educational Foundation of Lady Katherine Leveson. 32 Auditorfs remuneration The auditorfs remuneration comprises an audit fee of £1 Ok (2023.. £10k) and accountancy fee of £1 k {2023.. £1 k) both excluding VAT. 33 Capital commltments At 30 June 2024 the charity had capital commf(ments amounting to £471k (2023 - £348k) excluding VAT, in respect of improvements to the care home and related buildings. Contingent assets The Foundation has been approached by Temple Balsall Amalgamated Charities (TBAC) who wish to donate their total assets and liabilities to the Foundation, being a local charity with similar charitable aims. The assets consist of cash balances and an investment portfolio, the value of which is approximately £450k. The agreement will transfer the TBAC charity as a whole across to the Foundation and is likely to complete during the 2024-25 financial year. 28