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← The Foundation Of Lady Katherine Leveson

2025-06-30-accounts

The Foundation of Lady Katherine Leveson Financial Statements Year Ended 30 June 2025

Charity registration number: 1146710 Company registration number: 07890553

The Foundation of Lady Katherine Leveson

Year ended 30 June 2025

Contents

Page
Governors’ report 1-7
Independent Auditor's report 8-11
Statement offinancial activities (incorporating the Income and expenditure account) 12
Balance sheet 13
Statement of cash flows 14
Notestothefinancialstatements 15-29

The Foundation of Lady Katherine Leveson

Governors’ report

Year ended 30 June 2025

The governors and officers who have served during the year and since the year end were as follows:

Governors of the Charity

Elected governors Jonathan Evans OBE Chairman
Rt Hon Viscount Daventry
Sir William Dugdale Bt
Michael Fetherston-Dilke
Nicola Hammett
Clare Hopkinson
Robert Macpherson
Carol Matthews
Governors nominated Alderman David Bell
by Solihull MBC Councillor Andrew Burrow
Officers ofthe Charity
Master Revd Debbie Collins
Bailiff Sue Woodman ACA
Care manager Jonathan Blancaflor
PropertyandEstateManager PaulaEdwards(appointed18November2024)

Patron governors Rt Hon the Earl of Aylesford Rt Revd Michael Volland, Bishop of Birmingham (appointed 10 November 2024)

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The Foundation of Lady Katherine Leveson

Governors’ report

Year ended 30 June 2025

Charity registration number 1146710
Company registration number 07890553
Registered office Temple House
Temple Balsall
Knowle
Solihull B93 OAN
Auditor Dafferns Audit Limited
Chartered Accountants and Statutory Auditor
One Eastwood
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
Property Income Trust for Charities
Mayfair Capital Investment Management Limited
55 Wells Street
London W1T 3PT
Charities Property Fund
Savills Investment Management
33 Margaret Street
London W1G 0JD
CCLA Investment Management Limited
Senator House
85 Queen Victoria Street
London EC4V 4ET
EFG Private Bank— Harris Allday Division
5" Floor 103 Colmore Row
BirminghamB33AG

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The Foundation of Lady Katherine Leveson Governors’ report

Year ended 30 June 2025

The Foundation’s values— compassion, inclusivity, respect, integrity and stewardship

OVERVIEW OF THE YEAR

2024 was the 350" anniversary of the death of Lady Katherine Leveson whose generous bequests created the Foundation at Temple Balsall, with its main aims of helping people in need of care and support, and of promoting children’s education. 350 years on, those aims still shape the ethos of the Foundation — in our care home with its staff team dedicated to giving loving care and support around the clock; in our highlyregarded school where children are encouraged ‘to learn, love and live withjoy’, and in our faithful church community which seeks ‘to be a welcoming and caring church where all people are included’.

During the year, the Foundation continued to producea financial surplus on its day-to-day operations (details below). However this was insufficient to cover substantial capital costs incurred mainly on the renewal of the care home’s heating system — a project which in total will cost over £750k. The project has been a major undertaking causing considerable disruption to residents and staff alike. The Governors are grateful to them for their understanding and forbearance while the work is being carried out.

While there are always improvements that can be made, the care home continues to run at a high standard. The CQC rating is ‘Good’ and the Satisfaction score on the carehome.co.uk site is 9.7 out of 10. The Governors congratulate the care manager and all of his team on another year of dedicated commitment to ensuring that our residents have the highest standard of care we can give them.

As foreshadowed in last year’s report, the Temple Balsall Amalgamated Charities — a local charity which has provided financial support to our residents in need of help — has been transferred with all of its assets totalling £462k to the Foundation, which will continue to be used for the benefit of the care home and its residents.

Under the inspiring and creative leadership of our Master in her role as Vicar of St Mary’s, the church continues to be the beating heart of the Foundation. A specially commissioned and imaginative art project for the 350°" anniversary — ‘Our Beating Heart’ - was completed during the year. New methods of achieving church growth are being explored and — so appropriate for our setting — there is a strong emphasis on the beauty of creation and the preservation of the natural world. While the running of the church is the responsibility of the Parochial Church Council, the Foundation provides financial support for administration and specific projects.

Since September 2020, the Lady Katherine Leveson primary school has been part of the Birmingham Diocesan Multi-Academy Trust which has day-to-day responsibility for the management and development of the school. The school reported excellent SATS results in the year — the best in Solihull Borough - and has a ‘Good’ Ofsted rating. Despite these successes and mainly due to its remote location with few families living nearby, the school faces a challenge in filling all its places. The Governors take a keen interest in the wellbeing of the school and, during the year, approved some financial support for the maintenance of teacher to pupil ratios in the face of financial pressure from falling rolls.

Mr Neil Kitching resigned as Head teacher in July 2025 and Mrs Laura Anderson was appointed in his stead. The trustees wish to thank Mr Kitching for his strong and effective leadership of the school during his tenure as Head teacher, and wish him well for his future career.

As we move further into the 21* century, the Foundation faces challenges. The economics of running the care home are increasingly volatile, relying on high occupation levels and a ready supply of qualified professional staff living within easy reach — not easily achieved given the relative remoteness of the Temple Balsall hamlet with its tiny population. The school has financial pressures as it operates with spare capacity, needing to attract children from further afield to fill its roll; and while the church has an active and lively congregation, there are few actual Temple Balsall parishioners to fill the pews.

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The Foundation of Lady Katherine Leveson Governors’ report

Year ended 30 June 2025

Lady Katherine's endowment provides some financial buffer to support operations, but it is inadequate fully to develop the Temple Balsall estate — the care home's historic buildings are in constant need of expensive maintenance, while other properties on the site await restoration and development. The governors have wrestled with this for some time and continue to seek the best solution for the future use of the various unused buildings. A current potential opportunity comes from the Government's housing strategy: an expansion of the Temple Balsall hamlet with homes built on Foundation land could be transformational, leading to more children for the school, more on-site staff for the care home, more parishioners for the church, and more economic activity to underpin the Foundation’s aims.

The year ahead could be one of the most momentous in the Foundation’s 350-year history.

In conclusion, the Governors wish to express their great thanks to the Master and her team, the care home team, the Head Teacher and her staff, the churchwardens and all involved in the church, for the tremendous contribution they all make to ensuring that the Foundation continues to live out the intentions of Lady Katherine Leveson 350 years ago.

GOVERNANCE

The Foundation of Lady Katherine Leveson is a charitable company limited by guarantee (charity number 1146710 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. In addition, during the year the charity also received a donation transfer of the Temple Balsall Amalgamated Charities (charity number 215506). A further linking order dated 21 May 2025 brings together the affairs of this gifted charity with the Foundation and under which order these accounts are also prepared.

The company is govemed by its Articles and Memorandum of Association dated 15 December 2011.

OBJECTS OF THE FOUNDATION

Lady Katherine Leveson, who died in 1674, provided endowments in her will for almshouses, the church and the school at Temple Baisall.

The present-day objects of the Foundation are to:

CONNECTED CHARITIES

The board of governors consider the Foundation of Lady Katherine Leveson to be connected to the charities listed below, since they have right to appoint governors to the boards:

MANAGEMENT

The strategic direction of the Foundation and oversight of its activities are the responsibility of the Board of governors which meets as necessary, generally bi-monthly. The Board aims to recruit governors who live 4

The Foundation of Lady Katherine Leveson

Governors’ report

Year ended 30 June 2025

locally with a range of appropriate technical skills and experience and provides a full induction into the day-today activities of the Foundation as part of the appointment process. Solihull Metropolitan Borough Council is entitled to appoint two governors: the current appointees both live nearby and bring valuable local knowledge and support.

Day-to-day management of the Foundation is vested in the senior management team comprising the Master (who is also Vicar of St Mary’s church), the Bailiff (a qualified accountant who is also Company Secretary), the Care Manager, and the Property and Estate Manager.

PRINCIPAL ACTIVITIES

The Foundation today 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 has 29 apartments providing residential care, with 16 independent living flats housing up to a further 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 their best and most flexible use to meet the needs of both residential and independent living residents.

FINANCIAL RESULTS

The governors present their report and the audited financial statements of the charity for the year ended 30 June 2025. 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 2019.

The financial results of the Foundation for the year ended 30 June 2025 are set out in detail on page 12. These show the performance of the Foundation’s housing operations - residential care and independent living housing - and of its investments. The governors regard these as separate but related activities and the notes to these accounts provide analysis of the financial performance of each in notes 4 to 14.

The Foundation generated an operating surplus of £207k (2024 - £43k); in addition, there were unrealised net investment gains on the quoted investment portfolios of £75k (2024 — £487k) generating an overall gain of £282k (2024 — £530k). With the transfer of the TBAC funds during the year of £462k, the net movement in funds in the year was £744k.

The Foundation’s core operations (as represented by the movement in unrestricted funds) generated a surplus before investment gains for the year of £193k (2024 - £31k). However, as the analysis in note 14 shows, the cost of operating the care home, when including the £267k notional rent of the buildings in which it operates, generates a loss as in previous years.

The property improvements designated reserve had a balance as at 30 June 2025 of £600k (2024 - £950k), part of this fund being utilised to support the heating works during the year. There is also a major repair fund with a balance at 30 June 2025 of £235k (2024 - £233k) held with Sarasin & Partners LLP. All property repairs during the year were funded directly from unrestricted funds. The completion of the project to replace the main boilers in the care home during the previous financial year at a cost of £448k was followed by further property improvement work — still in progress - to replace the radiators and pipework within the care home, incurring additional expenditure last year of £29k and this year of £298k, taking the total spent to date on heating replacement works to £775k.

The Foundation’s total funds are £23.2 million (2024: £22.5 million) of which £18.9 million (2024: £18.8 million are restricted.

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The Foundation of Lady Katherine Leveson

Governors’ report

Year ended 30 June 2025

FUNDS

Transfers to/from reserves are considered on an annual basis depending on future expectations of needs and events. Amounts are transferred to designated funds to enable future amounts to be expended on maintaining and improving the property portfolio.

INVESTMENT POLICY

The Foundation’s investment objective is to maximise the total investment return over the longer term without taking undue risk, principally achieved by investing in a well-diversified portfolio of equities and fixed interest investments through the use of pooled funds, with the principal fund manager being Sarasin & Partners.

The governors invest separately in property pooled funds managed by Mayfair Capital Investment Management Limited and the Charities Property Fund which provide attractive income yields from portfolios of diversified commercial property.

The total return on the endowment investments was £170k; £127k 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. With only a small increase in market value on the endowment investment portfolio during the year, the decision has been made to add the total £43k increase to the unapplied total return fund for future use by the Foundation.

FUNDRAISING

The Foundation does not contract with a third party to undertake any fundraising activities on its behalf.

PUBLIC BENEFIT

The governors confirm that they have paid due regard to the guidance 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 terms of reference for all committees, a governance structure with clear organisational lines of reporting and regular operational review of disaster planning and crisis management strategy. Major risks have been reviewed and systems and procedures have been established to manage these risks.

RESERVES POLICY

The governors continue to ensure that sufficient reserves are maintained to finance the day-to-day running of the Foundation's activities.

FIXED ASSETS

Movements in tangible fixed assets and fixed asset investments are disclosed within the notes to the accounts.

PAY POLICY FOR SENIOR STAFF

The remuneration for the management team is reviewed by the governors who use benchmarking against comparable organisations along with an assessment of market rates and consideration of performance.

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The Foundation of Lady Katherine Leveson

Governors’ report

Year ended 30 June 2025

STATEMENT OF GOVERNORS’ RESPONSIBILITIES

The governors (who are also directors for purposes of company law) are required by company law to prepare financial statements for each financial year that give a true and fair view ofthe state of affairs of the Foundation at the end of the year and the incoming and outgoing resources for the year then ended.

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

disclosed and explained in the financial statements;

The governors are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the Foundation 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 Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The governors 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 governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions,

AUDITORS

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (October 2019) and in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

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Jonathan Evans OBE

ON BEHALF OF THE GOVERNORS

Dated 26 November 2025

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The Foundation of Lady Katherine Leveson

Independent Auditor’s Report

Year ended 30 June 2025

Opinion

We have audited the financial statements of The Foundation of Lady Katherine Leveson (the ‘charitable company’) for the year ended 30 June 2025 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 Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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The Foundation of Lady Katherine Leveson

Independent Auditor’s Report

Year ended 30 June 2025

Other information

The governors are responsible for the other information. The other information comprises the information included in the governors’ 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 otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the governors’ 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:

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The Foundation of Lady Katherine Leveson Independent Auditor’s Report

Year ended 30 June 2025

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 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 governors are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the 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 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.

Because of the inherent limitations of an audit, 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 compliance with 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 noncompliance. The risk is also greater regarding irregularities occurring du e to fraud rather than error, 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.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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

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The Foundation of Lady Katherine Leveson

Independent Auditor's Report

Year ended 30 June 2025

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.

Lucy Hatton FCCA

for and on behalf of Dafferns Audit Limited Chartered Accountants and Statutory Auditor One Eastwood Harry Weston Road Binley Business Park Coventry CV3 2UB

Date: 16 December 2025

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The Foundation of Lady Katherine Leveson

Statement of financial activities (incorporating the income and expenditure account)

Year ended 30 June 2025
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Total Total
Unrestricted Restricted Endowment funds funds
funds funds funds 2025 2024
Note £°000 £’000 £000 £7000 £'000
Income from:
Donation from TBAC 4 373 - 89 462 -
Donations and legacies 4 3 20 - 23 24
Charitable activities 5 1,782 . - 1,782 1,534
Other trading activities 6 2 - - 2 2
Investments 7 236 - 127 363 387
Other income 8 - - - - 4
Allocated to income from
unapplied total return 9 127 - (127) . -
Total income 2.523 20 89 2,632 1,948
Expenditure on:
Property management 10 (312) (2) - (314) (255)
Charitable activities 11 (1,645) (4) - (1,649) (1,650)
Total expenditure
Net income before		 (1,957) (6) - (1,963) (1,905)_
investment gains and 566 14 89 669 43
losses
Net unrealised gains/ 19,
(losses) on investments 20 32 - 43 75 487
7
Net income after gains/
(losses) on investments 598 14 43 744 530
Transfers between funds 25 24 (24) - - .
Netmovement in funds 25 622 (10) 132 74400 530
Reconciliation offunds:
Total funds brought forward 25 3,652 46 18,788 22,486 21,956
Totalfunds carried
forward		 25 4,274 36 18,920 23,230 22,486
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All income and expenditure derive from continuing activities.

For the purpose of reporting under the Companies Act 2006, net income after gains and losses on investments, excluding the £43k gain on endowment investments (2024 £346k gain) is £701k (2024 £184k),

The notes on pages 15 to 29 form part of the financial statements.

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The Foundation of Lady Katherine Leveson

Balance sheet

Year ended 30 June 2025

2025 2024
Note £°000 £°000 £7000 £'000
Fixed assets
Tangible assets 18 5,103 4,731
Investments 19 16,673 16,191
21,776 20,922
Current assets
Investments 20 835 4,083
Stocks Z1 2 2
Debtors 22 144 187
Cash at bank and in hand 924 716
4,905 1,988
Creditors: amounts falling due
within one year 23 (451) (424)
Net current assets 1,454 1,564
Net assets 23,230 22,486
Charity funds
Permanent endowment 25 18,920 18,788
Restricted funds 25 36 46
Unrestricted funds:
- Income and expenditure fund 25 2,892 1,927
- Designated funds 25 1,382 1,725
4,274 3,652
26 23,230 22,486

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 26 November 2025.

Signed on behaif of the Board of governors

Jonathan Evans OBE, Chairman

Michael Fetherston-Dilke, Governor

The notes on pages 15 to 29 form part of these financial statements.

Company registration number: 07890553

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The Foundation of Lady Katherine Leveson

Statement of Cash Flows

Year ended 30 June 2025

2025 2024
Note £'000 £’000
Cash flowfrom operating activities 27 9 (300)
Net cashflowfrom operating activities 9 (300)
Cash flowfrom investing activities
Tangible fixed assets acquired (468) (578)
Transfer offunds from a higher rate savings account 250 :
Interest received 48 61
Dividends received 175 179
Rents received from investment properties 140 147
Netcashflowfrom investing activities 145 (191)
Net increase in cash and cash equivalents 154 (491)
Cash and cash equivalents at 1 July 2024 716 1,207
TBAC cash received during the year 54 :
Cash and cash equivalents at 30 June 2025 924 716
Cash and cash equivalents consist of:
Cash at bank and in hand 924 716
Cashandcashequivalentsat30June2025 924 716

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The Foundation of Lady Katherine Leveson

Notes to the Financial Statements

Year ended 30 June 2025

1 General information

The Foundation of Lady Katherine Leveson is a charitable company limited by guarantee, incorporated and domiciled in England (Company 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 nature of the charity’s operations and principal activities are described on page 3.

2 Principal 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 convention, modified to include certain items at fair value. 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) 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 Accepted Practice.

The Foundation 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.

The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £1k.

The preparation of financial statements in compliance 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 statements have been prepared on a going concem basis. The governors consider that there is a reasonable expectation that the company has sufficient resources to continue in operational existence for the foreseeable future and for this reason they have adopted the going concern basis in preparing the financial 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 governors 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 statements.

Permanent 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.

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The Foundation of Lady Katherine Leveson

Notes to the Financial Statements

Year ended 30 June 2025

2 Principal accounting policies (continued)

(c) Income resources

All 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 for 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.

(d) Resources expended

All expenditure is accounted for on an accruals basis whena 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 been allocated to activities on a basis consistent with use of the resources.

Costs of generated funds are those costs attributable to generating incoming resources for the Foundation. Charitable activities comprise all costs incurred in the pursuit of the charitable objects of the Foundation. Governance costs include those incurred in the governance of the Foundation and are primarily associated with constitutional and statutory requirements.

(e) Tangible fixed assets

Tangible fixed assets, except the care home and related buildings, are stated at cost less accumulated depreciation. Depreciation is charged ona straight-line basis over the expected economic useful lives of the assets at the following annual rates:

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(f) Care home and related buildings

The care home and related buildings are included at valuation based on the depreciated replacement 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) Fixed 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 valuation. No records exist for the original cost in respect of the majority of the property. 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 activities.

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The Foundation of Lady Katherine Leveson

Notes to the Financial Statements

Year ended 30 June 2025

2 Principal accounting policies (continued)

(h) Current asset investments

Current asset investments include funds which may be required at short notice.

(i) Stocks

Stocks are stated at the lower of cost and net realisable value.

(j) Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(k) Donations received

Donations are disclosed as income in the statement of financial activities when received. Those donations which are received for specific purposes are carried forward in restricted funds to the extent that they have not been expended in the year.

(I) Pension costs

The Foundation operates a defined contribution pension scheme for employees. The assets of the scheme are held separately 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 services.

(m) Routine maintenance

The governors have established a regular programme of cyclical repairs and maintenance. Costs are charged in the year in which they are incurred.

(n) Major repairs

Costs of major repairs, unless representing improvements to the properties, are charged in the year in which they are incurred.

(o) Value added tax

In these financial statements, where applicable, expenditure is shown inclusive of VAT as the Foundation is not registered for VAT.

(p) Website costs

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 activities over the period in which the cost is incurred.

17

The Foundation of Lady Katherine Leveson

Notes to the Financial Statements

Year ended 30 June 2025

3 Judgements and key sources of estimation uncertainty

Preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts 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:

Tangible fixed asset valuation

The care home and related buildings were valued by Barlow Associates as at 30 June 2016 using a depreciated replacement cost basis to establish a deemed cost at the FRS102 transition date. The depreciated replacement value takes into account the value of the land for its existing use and the gross replacement 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 property 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 permanent 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. When assessing impairment of trade debtors, management consider them individually reviewing the ageing profile of the balance and the historical experience.

4 Income from donations and legacies

2025 2024
£7000 £'000
Donations 13 9g
Legacies 10 15
23 24

Income from donations and legacies was £23k (2024: £24k) of which £20k (2024: £19k) was attributable to restricted and £3k (2024: £5k) to unrestricted funds.

In November 2024, the trustees of Temple Balsall Amalgamated Charities (TBAC) generously donated all its assets to the Foundation totalling £462k in value, £89k attributable to restricted and £373k to unrestricted funds. Since year end, the Charity Commission have approved the Foundation governors’ resolution under s.282 of the Charities Act 2011 to spend the endowment asset of £89k as if it were income.

18

The Foundation of Lady Katherine Leveson

Notes to the Financial Statements

Year ended 30 June 2025

5 Income from charitable activities

2025 2024
£'000 £°000
Residential care 1,418 1,227
Independent living accommodation 149 139
Respite care 153 129
Domiciliary care 58 36
Other income 4 3
1,782 1,534

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 £45k (2024: £42k).

All income was attributable to unrestricted funds.

6 Income from trading activities

Income from trading activities was £2k (2024: £2k) of which all was attributable to unrestricted funds.

7 Income from investments

2025 2024
£°000 £°000
Dividend and interest income 223 240
Rental income 140 147
363 387

Income from investments — stated net of management fees - was £363k (2024: £387k) of which £127k (2024: £135k) was attributable to endowment and £236k (2024: £252k) was attributable to unrestricted funds.

8 Other income

The charity received no other income this year (2024: £1k).

19

The Foundation of Lady Katherine Leveson

Notes to the Financial Statements

Year ended 30 June 2025

9 Permanent endowment invested ona total 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 permits 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 £170k (2024: net gain of £481k); the governors transferred £127k (2024: £135k) of investment income received to fund the aims of the charity on a day to day basis. With only a small increase in market value on the endowment investment portfolio during the year, the decision has been taken to add the total £43k increase to the unapplied total return fund for future use by the Foundation (2024: gain of £196k). In 2024, £150k was 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.

Endowment
Unapplied		 Endowment
Unapplied		 Unapplied Permanent
for total endowment
investment return investments
£'000 £'000 £000
At 1 July 2024 2,502 1,900 4,402
Movements
Investment income - 127 127
Gains / (losses) - 43 43
re ra 7o=i(sCFTO
Unapplied total return allocated to income - (127) (127)
Net movement in the reporting period a - 43 43.
-
Total value of permanent endowment investments at
30June2025 2,502 1,943 4,445

10 Property management

Property management comprises the costs of managing and carrying 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.

20

The Foundation of Lady Katherine Leveson

Notes to the Financial Statements

Year ended 30 June 2025

11 Analysis of expenditure on charitable activities

Activities
undertaken Support Total Total
directly costs 2025 2024
£'000 £'000 £'000 £7000
Care home
Provision of care services 1,392 113 1,505 1,472
Routine maintenance 62 - 62 92
Major repairs 30 - 30 7
1,484 113 1,597 1,571
Support for:
St Mary’s Church 43 43 47
Lady Katherine Leveson School 9 9 32
1,536 113 1,649 1,650

Expenditure on charitable activities was £1,649k (2024: £1,650k) of which £4k (2024: £5k) was attributable to restricted funds. £1,645k (2024: £1,645k) of the above costs was attributable to unrestricted funds.

12 Support costs

2025 2024
£°000 £°000
Master's salary (part) 12 11
Management
Administration		 50
10		 56
9
Insurance 22 24
Governance (see note 13) 19 21
113 121
13 Governance costs
2025 2024
£'000 £°000
Audit and accountancy 12 14
Bailiffs salary (part) 7 v4
19 21

21

The Foundation of Lady Katherine Leveson

Notes to the Financial Statements

Year ended 30 June 2025

14 Analysis of net incoming resources

Properties Other
and Care home charitable
investments activities activities Total
£°000 £’000 £'000 £'000
Income:
Donations and legacies 2 14 7 23
Rental and other
investment income 363 - - 363
Charitable activities - 1,782 - 1,782
Other income 2 - - 2
Total income 367 1,796 7 2,170
Expenditure:
Raising funds — property
management (314) - - (314)
Charitable activities - (1,597) (52) (1,649)
Total expenditure (314) (1,597) (52) (1,963)
Net income 53 199 (45) 207
Notional rent payable by
care home 267 (267) - .
Total 303 (51) (45) 207

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 remuneration and expenses

The governors neither received nor waived any remuneration during the year (2024: £Nil).

The total amount of employee benefits received by key management personnel was £188k (2024: £160k) the increase principally reflecting the appointment of a Property & Maintenance Manager during the financial year. The governors consider that the Foundation's key management comprises the Master, Bailiff, Care Manager and Property & Estate Manager.

No governors had expenses reimbursed during the year (2024: £389).

22

The Foundation of Lady Katherine Leveson

Notes to the Financial Statements

Year ended 30 June 2025

16 Staff costs and employee benefits

The average monthly number of employees during the year was as follows:

2025 2024
Master, Bailiff, and Care Manager 3 3
Care assistants, kitchen, manual and other administration staff 43 41
46 44

The average number of employees expressed as full-time equivalents was 35 (2024: 35).

Total staff costs and employee benefits were as follows:

2025 2024
£°000 £'000
Wages and salaries 1,173 1,081
Social security costs 90 77
Pension costs 30 29
Redundancy costs - 14
1,293 1,201

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 £30k (2024: £29k).

Two employees received total remuneration including employee benefits (excluding employer pension costs) of more than £60,000, (2024: 1).

17 Taxation

The company is exempt from corporation tax on its charitable activities; input VAT is irrecoverable.

23

The Foundation of Lady Katherine Leveson

Notes to the Financial Statements

Year ended 30 June 2025

18 Tangible fixed assets

Care home Fixtures
and related and Motor
buildings fittings vehicles Total
£°000 £°000 £°000 £7000
Cost or valuation:
At 1 July2024 4,493 744 25 5,262
Additions 309 113 46 468
Disposals - (72) (25) (97)
At20 June 2025 4,802 785 46 5,633
Depreciation:
At 1 July2024 7 499 25 531
Charge forthe year 26 67 - 93
Eliminated on disposals - (69) (25) (94)
At 30 June 2025 33 497 . 530
Net book value:
At 30 June 2025 4,769 288 46 5,103
At30June2024 4,486 245 - 4,731

The care home and related buildings were re-valued on transition to FRS 102 as at 30 June 2016 by Barlow Associates following guidance from ICAEW. The valuation was prepared using a depreciated replacement cost basis. The depreciated replacement value took account of the value of the land for its existing use and the gross replacement cost of the buildings. Appropriate deductions were made to allow for age, condition, economic or functional obsolescence and environmental and other factors. This may result in the existing property being worth less than replacement and, in the event of forced 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 property 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 pipework and radiator replacement project, which will be depreciated over 25 years.

A new minibus was purchased during the year, £34k of the costs of which was funded by generous donations.

24

The Foundation of Lady Katherine Leveson

Notes to the Financial Statements

Year ended 30 June 2025

19 Fixed asset investments

Permanent
endowment
properties
£°000		 Permanent
endowment
investments
£°000		 Unrestricted
fund
investments
£'000		 Total
£'000
Valuation
At 1 July 2024 10,461 4,402 1,328 16,191
Additions in the year - 89 320 409
Change in market value - 43 30 13
ALSO June282 10,461 4,534 1,677 16,673
The addition in the year relates to the generous donation from the trustees ofthe Temple Balsall
Amalgamated Charities and all its assets to the Foundation.
Investments at fair value comprise:
2025 2024
£'000 £°000
Investment properties 10,461 10,461
Property trusts 339 331
Income and growth funds 5,873 5,399
16,673 16,191

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 with the RICS appraisal and valuation manual.

20 Current asset investments

£°000
At 1 July 2024 1,083
Additions
Cash withdrawls		 100
(350)
Change in market value 2
At 30 June 2025 835
Cost 526

Current assets investments include the Sarasin Endowment Fund Class A with a current market value of £235k (2024: £233k), the balance being held in cash, to cover the cost of future major repairs.

25

The Foundation of Lady Katherine Leveson

Notes to the Financial Statements

Year ended 30 June 2025

21 Stocks

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |2025|2024| |£7000|£°000| |Food,|cleaning|and|laundry|2|2| |2|2| |22|Debtors| |2025|2024| |£'000|£°000| |Residents’|contribution|arrears|32|77| |Rent|arrears|17|21| |Prepayments|and|accrued|income|50|41| |Other|debtors|45|48| |144|187| |23|Creditors:|amounts|falling|due|within|one|year| |2025|2024| |£’000|£'000| |Trade|creditors|114|101| |Other tax|and|social|security|19|18| |Accruals|189|155| |Other|creditors|62|67| |Residents’|contributions|in|advance|61|77| |Related|party|creditor|(see|note|31)|6|6| |451|424|

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

23 Creditors: amounts falling due within one year

24 Operating leases

Total future minimum lease payments under non-cancellable operating leases are as follows:

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |2025|2024| |£'000|£°000| |Not|later than|one|year|7|7| |Later than|one|and|not|later than|five|years|21|23| |Later than|five|years|=|i|

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

26

The Foundation of Lady Katherine Leveson

Notes to the Financial Statements

Year ended 30 June 2025

25 Fund reconciliation

Restricted funds

Balance Balance
at 1 July Gains / Balance at
2024 Income Expenditure Transfers (losses) 30 June 2025
£’000 £°000 £°000 £7000 £°000 £°000
Donation reserve 46 20 (6) (24) - 36
46 20 (6) (24) - 36
Donations reserve represents donations received less expenditure incurred in linewith with donors’ wishes. £24k
of restricted donations have been utilised to fund the minibus, with a further£15k from unrestricted.
Unrestricted funds
Balance
Balance Unrealised at 30
at 1 July gains / June
2024 Income Expenditure Additions Transfers (losses) 2025
£°000 £'000 £'000 £000 £'000 £°000 £°000
Income and
expenditure
fund 1,927 2,150 (1,957) 373 374 25 2,892
Designated:
Property
improvements		 950 - - - (350) - 600
Lady Cadbury
bequest		 344 - . - - 3 347
Barbara
Leonard
bequest 198 . - - - 2 200
Major repair
reserve		 233 - - - - 2 235
3,652 2,150 (1,957) 373 24 32 4,274

Property improvements — reserves have been established to augment funds required to maintain and improve the historic Temple Balsall buildings. £350k was withdrawn this year to fund improvements to the heating systems.

Lady Cadbury bequest — these funds have been designated from the original bequest from the late Lady Cadbury in 2010-11 for the benefit and care of the elderly at Temple 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 future expenditure principally arising out of quinquennial inspections on the functional property of the Foundation.

27

The Foundation of Lady Katherine Leveson

Notes to the Financial Statements

Year ended 30 June 2025

25 Fund reconciliation (continued)

Permanent endowment

Allocated to
Balance at income from Balance at
1 July
2024		 Additions unapplied
Income _ total return		 Gains /
(losses)		 30June
2025
£'000 £°000 £'000 £’000 £000 £000
Endowment funds 18,788 89 127 (127) 43 18,920
18,788 89 127 (127) 43 18,920

26 ~=Analysis of net assets between funds

Permanent Restricted Unrestricted
endowment funds funds Total
£'000 £°000 £'000 £°000
Fixed assets 3,925 . 1,178 5,103
Investments 14,995 - 1,678 16,673
Current assets - 36 1,869 1,905
Current liabilities - - (451) (451)
Total 18,920 36 4,274 23,230

27 ~— Reconciliation of net income to net cash flow from operating activities

2025 2024
£'000 £000
Net income foryear 744 530
TBAC asset transfer (462) :
Dividends received (175) (179)
Interest receivable (48) (61)
Rental income (140) (147)
Depreciation and impairment oftangible fixed assets 93 66
(Gains)/losses on investments (75) (487)
Loss on disposal oftangible fixed assets 2 5
(Increase)/decrease in stock é =
(Increase)/decrease in debtors 43 (71)
Increase/(decrease) in creditors Zt 44
Netcashflowfromoperatingactivities 9 (300)

28

The Foundation of Lady Katherine Leveson

Notes to the Financial Statements

Year ended 30 June 2025

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 Accommodation in management

At 30 June 2025, the Foundation had 45 units of accommodation (2024: 45) offering accommodation for up to 51 residents.

30 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 (2024: 10) such members at 30 June 2025.

31 Related parties

The Foundation continues to support the connected charity, the Educational Foundation of Lady Katherine Leveson. At 30 June 2025, £6k (2024: £5k) was owed to the Educational Foundation of Lady Katherine Leveson.

32 Auditor’s remuneration

The auditor's remuneration comprises an audit fee of £10k (2024: £10k) and accountancy fee of £1k (2024: £1k) both excluding VAT.

33 Capital commitments

At 30 June 2025 the charity had capital commitments amounting to £194k (2024 - £471k) excluding VAT, in respect of the remaining contract for improvements to the care home and related buildings.

29