100 Y E A R S O F **VETERAN CARE**
annual report & Accounts F O R T H E Y E A R E N D I N G 31 M A R C H 2 0 21
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## contents
## 5 FOREWORD
## 6 ABOUT US
_Our Vision ..............................................................6 Our Values .............................................................6 Public Benefit ........................................................6_
## 8 GOVERNANCE & MANAGEMENT _The Trustee Body....................................................8 New Members of the Team .....................................9_
## 12 ACHIEVEMENTS & PERFORMANCE
- _Objectives .............................................................12 Charitable Activities_
_– The Care Home .................................................14_
- _The Support Hub ...............................................19 – Veteran Care Village Project .............................20 Fundraising Activities ..........................................24 Our Supporters ....................................................27_
## 28 FINANCIAL REVIEW
_Income ..................................................................28 Expenditure ..........................................................28 Reserves Policy .....................................................29 Investment Powers & Policy ................................29 Creating a Sustainable Financial Future for the Charity ......................................................29 Risk Management .................................................31 Statement Of Trustees Responsibilities .................31_
## 32 GOVERNING BODY
- 38 AUDITOR'S REPORT & FULL ACCOUNTS
Broughton House, Park Lane, Salford. M7 4JD 0161 740 2737 www.broughtonhouse.com @broughtonhouse
The Charity is registered with the Charity Commission under charity number 1155225. All assets and land were transferred from the former Unincorporated Charity (number 227864) to the new Incorporated Charity (number 1155225) on 1 April 2014.
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## FOREWORD
2020/2021 has been a year of significant developments, unprecedented times and events for Broughton House. A year we will never forget, which has brought the care home industry and all it delivers back into the public eye, hearts and minds.
130,000 COVID deaths (35.6%) occurred in care homes, many others suffered from worsening physical, mental and emotional health as a result of lock-downs and visiting restrictions. We know that Broughton House is not alone in suffering tragic loss due to the COVID-19 pandemic. Our thoughts and prayers remain with the families and loved ones of our Residents who we sadly lost.
It has been a traumatic and testing time for all in the care sector. Our loyal and hard-working staff continue to work tirelessly and their dedication throughout the pandemic has been nothing but outstanding. We are immensely proud of them all.
As the only care home in the North West delivering dedicated veteran care; the need to expand and diversify our level of care is paramount to meet the growing and changing needs of veterans both now and in the future.
We said a fond farewell to the old Broughton House as Residents and Staff moved across to the new Broughton House in September 2020. The construction of Phase 1B of the build, which will provide a further 32 en-suite rooms and 6 apartments, is now well underway.
There continues to be a widening divergence between the actual cost of care and the care home fees set by the local authorities. Broughton House relies heavily on donations to finance the care we provide. We remain ever grateful for the tremendous support from a wide range of individuals and organisations. This funding is critical and allows us to continue our work in caring for and supporting our veteran community.
We trust the content of this report will give you a good insight into the year, the ongoing work of the Charity and our future plans.
## P Waterhouse
## COMMODORE P WATERHOUSE
CHAIRMAN
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about us
## _We care for and support veterans and their families_
Broughton House was originally founded under the name East Lancashire Home for Sailors and Soldiers in 1916 to care for sailors and soldiers who had been injured during the First World War.
## MISSION STATEMENT
We care for and support veterans and their families.
The Charity is registered with the Charity Commission under charity number 1155225. All assets and land were transferred from the former Unincorporated Charity (number 227864) to the new Incorporated Charity (number 1155225) on 1 April 2014.
Today, the Charity cares for and supports ex-Service Men and Women, and their spouse or civil partner, who are in need of care and support. We believe in providing the highest quality of care and support for all our residents. The following key objectives of the Charity are set out in the Constitution which governs the Charity:
- To provide accommodation, care and support for military veterans who have served in the British Armed Forces, Merchant Navy and their spouse or civil partner. This includes members of the Reserve Forces and those conscripted for National Service.
- If there are vacancies within Broughton House the Charity Trustees can admit other persons who are in need of care and support.
In an effort to raise revenue, applications for funding are made to benevolent associations, grant making trusts and funds from voluntary sources are raised by appeals and running events to supplement fee income.
## OUR VISION
Our vision is that Broughton House – Veteran Care Village will become recognised nationally as an outstanding provider of residential, nursing care and support to veterans and their families.
## OUR VALUES
The Broughton House Team conducts its duties with PRIDE: –
## **P** ASSION
**R** ESPONSIVENESS
**I** NNOVATION
**D** EDICATION
**E** MPATHY
## PUBLIC BENEFIT
The main activities, aims and objectives of the Charity are reviewed annually.
The Trustees, having had regard to guidance on public benefit issued by the Charity Commission, confirm that the charitable purposes fall within the definitions set out in the Charities Act and, therefore, are for public benefit.
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## governance & management
## T H E T R U S T E E B O D Y
The Constitution of the Charity provides that the Trustee Body shall consist of not less than seven and no more than fifteen Trustees. Each Trustee shall normally serve a term of three years. Any retiring Trustee shall be available for re-election unless indicating their wish not to be considered for re-election. A Trustee who has served for three consecutive terms may not be reappointed for a fourth consecutive term but may be reappointed after an interval of at least one year.
for the effective administration of the Charitable Incorporated Organisation (CIO). Ideally the Board of Trustees should have a diverse range of skills, backgrounds and experience, including service in the Armed Forces, Merchant Fleet, Medical and Nursing, Finance, Administration, Buildings and Estate Management. Newly appointed Trustees receive induction training relating to the work of the CIO.
The Chief Executive is responsible for the dayto-day management of the Charity, Home and Armed Forces Support Hub and for implementing the policies agreed by the Trustees. Responsibility for care delivery is delegated to the Registered Manager by the Chief Executive.
The Constitution of the Charity governs the appointment of Trustees. The Board of Trustees is authorised to appoint new Trustees to fill vacancies through retirement, resignation or death of an existing Trustee. Every Trustee must be appointed for a term of three years passed at a properly convened meeting of the Trustees. The Board of Trustees usually meet on a monthly basis.
Sub Committees appointed by the Trustee Board comprise:
- Finance Committee
In selecting individuals for appointment as Trustees, the Board of Trustees must have regard to the skills, knowledge and experience needed
- Nominations and Recruitment Committee
## N E W M E M B E R S O F T H E T E A M
## T R U S T E E B O A R D
## E X E C U T I V E T E A M
## SHARON STEWART, TRUSTEE
A highly motivated, experienced and successful Nurse Leader who demonstrates a wide range of clinical expertise, Sharon is employed as Regional Director of Clinical Services for BMI Healthcare part of Circle Health Group.
Sharon is a recipient of the Associate Royal Red Cross – the highest honour bestowed on a nurse and also a recipient of a Laing & Buisson award for outstanding contribution to independent health care.
As a reservist in the British Army for 30 years Sharon has served in Iraq, Afghanistan and Sierra Leone where she was the clinical lead for health, working alongside DfID in the recovery plan for the country following the Ebola crisis. In her ‘spare’ time Sharon is a Sunday School Leader and mother to Lucy, Angus and Connie.
## KAREN MILLER, CHIEF EXECUTIVE OFFICER
Karen served as an officer in the Intelligence Corps for 10 years before commencing a second career in the independent healthcare sector managing hospitals and diagnostic treatment centres in both the UK and the Middle East. Prior to joining Broughton House in October 2020 Karen headed a multinational healthcare investment company.
As CEO she oversees the day to day management of the Charity, Care Home and Armed Forces Support Hub.
Karen is currently focused on the commissioning of Broughton House’s new Veteran Care Village ensuring that it is completed on time and in budget. Karen brings a wealth of commercial and healthcare knowledge and experience to the Charity.
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10 ANNUAL REPORT & ACCOUNTS 202
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## achievements & performance
O B J E C T I V E S
ENDURING STRATEGIC OBJECTIVE: TO PROVIDE **highest quality, safe and harm free care and support.**
OUR CURRENT STRATEGIC OBJECTIVES ARE AS FOLLOWS:
> TO COMPLE TE **the Veteran Care Village build programme.** TO ACHIEVE **and maintain financial sustainability. and retain the people required that ensures we deliver our** TO AT TRACT **strategic direction more effectively and efficiently. that we have a range of effective systems and processes in place** TO ENSURE **to achieve the highest standards of governance.**
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achievements & performance
## C H A R I T A B L E A C T I V I T I E S – T H E C A R E H O M E
Over the past twelve months Broughton House has faced an extremely challenging time.
The original delivery date for Phase 1A of the new Broughton House Care Home was November 2019, but had been delayed due to additional fire requirements, as a result of the Grenfell Fire and COVID-19. We finally moved across to Phase 1A of the new build in September 2020. The Residents and Staff have settled in well and are enjoying the new facility.
We are grateful to our dedicated Care staff, who have excelled during this difficult period, and Support staff for the outstanding service they continue to deliver.
Tragically, after surviving the first wave of the pandemic unscathed, we sustained a COVID outbreak just before Christmas 2020. Sadly, we suffered five COVID related deaths of residents at Broughton House and a further five COVID-19 related deaths of our residents in NHS hospitals.
Notwithstanding, we are pleased to report that the care home was inspected by the Care Quality Commission in January 2021, while we were still COVID RED status, and received a rating of Good in all five key areas.
Broughton House continue to provide an excellent nursing, residential and respite facility to exService Men and Women from across Greater Manchester and further afield. Broughton House welcomes residents from all backgrounds. Before admitting a prospective resident, we ensure that our home will be able to provide the appropriate care and accommodation.
We will then work with the resident to develop a care plan which will enable them to achieve their full potential.
Good communication, effective operating procedures and well understood legislation are critical components in the Health and Social Care environment. The continuing focus for Broughton House staff is the need to ensure effective and targeted care that promotes dignity, respect and independence for all residents.
The year has been unprecedented in its challenges for Care Homes with the COVID-19 restrictions and as such: –
- We have worked closely with the Salford Care Team: – City Council, Care Clinical Group, Care Home Practice and Royal Foundation Trust, in ensuring Broughton House follows the Government’s guidance on testing and visiting.
- We have worked with our Residents, Staff, the Armed Forces Support Hub, friends and families with regarding the mental wellbeing of our residents and staff.
- We quickly put into place additional technology and staff to ensure residents could continue to keep regular contact with their families and friends.
- We maintain strong links with the Armed Forces, which our residents highly value and appreciate.
- We have enhanced the ratio of Welfare and Care Staff in order to provide a variety of in-house activities and dedicated one-to-one time for the residents in our care in the absence of daily family support.
- We have continued to provide in-house physiotherapy and podiatry services to residents.
- In December 2020, with the help of 202 Field Squadron Royal Engineers, we introduced our Broughton House Bubble which allowed residents to meet safely, face-to-face, with their families.
- In May 2021, in line with Government guidance, we were able to introduce meaningful visits.
The COVID vaccine roll-out has given us grounds for optimism. Our residents received their second round of vaccinations via the Armed Services Medical Team on the 23rd March 2021. This visit was a tremendous boost to our Residents and Staff and helped lift their spirits at a time most needed.
It continues to be a difficult time but we have worked together with our staff, families, friends and supporters to ensure communication with the world outside Broughton House is safe and the best it can be, in the present circumstances, for our Residents.
Over the past year the home has provided care to 34 permanent and 3 respite placements. Of the permanent placements 65% of residents received
residential care and 35% received nursing care. We are pleased to report that we are steadily rebuilding our occupancy rates.
The new Veteran Care Village concept is transformational for the Charity and designed to meet the care and support needs of the Veteran community from the moment they leave the Armed Forces until their final days. As the only care village in the North-West delivering dedicated Veteran care, we continue to address, expand and diversify our Services to meet the growing and changing needs of Veterans today and in the future.
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JOAN'S STORY
## JOAN JONES
## **Born; 6th June 1925 Brought up;**
Newlyn, Cornwall, then moved to Plymouth in 1940 where her Father worked for the Royal Navy. Joan met her future husband Albert, who was serving in the Royal Marines, at a dance in Plymouth before she was called up for war service.
## **Enlisted;**
1943 in the Women’s Auxiliary Air Force aged 18, after Conscription was introduced for Women in 1941. Her Father wanted her to join the Wrens but Joan did not like the uniform.
## **Training;**
No 4. Recruit Training Centre, RAF Wilmslow, then as a Teleprinter Operator.
## **War Service in RAF Signals Command;**
RAF Cranwell, Lincolnshire. During WW2 the RAF College was closed and it became a Flying Training School to meet the need for vast numbers of wartime Aircrew.
RAF Harrowbeer, near Yelverton in Devon. A Fighter Command airfield, built in 1940 to defend Plymouth from air attack. Later, in 1944, fighter bomber squadrons flying North American Mustangs, Hawker Typhoons and Westland Whirlwinds were based there in the build up to D-Day. After the successful invasion of France, the Station was little used and flying operations ceased altogether after VE Day.
Joan never flew in an aeroplane, neither RAF or Civil.
1st February 1945, Joan married (Henry) Albert Jones whilst still serving in the WAAF.
The GPO provided all the teleprinters used by Joan. They were very noisy and made her deaf in the left ear. Before D-Day she was employed sending messages to secret agents in France. Joan clearly remembers being billeted in cold and draughty Nissen Huts.
**Joan has been a Broughton House Resident since 11th May 2018**
RAF Portreath, on the North Coast of Cornwall. A wartime airfield used in 1944/45 as a staging post for aircraft flying to North Africa and the Mediterranean war zones and also as a base for Maritime Patrol aircraft. Flying ops. ceased shortly after the war in Europe ended. Joan always remembered her uncomfortable journey to the airfield along narrow lanes and over barren moorland. She was badly injured whilst stationed there when a bus, in which she was a passenger, collided with a tree.
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C H A R I T A B L E A C T I V I T I E S – T H E S U P P O R T H U B
The Broughton House Armed Forces Support Hub, (the Hub), was established in January 2018. It is a Greater Manchester non-residential service aimed at supporting veterans and their families in the community.
Leading the way in Veteran Care, and working alongside leading strategic organisations / agencies, the Hub works collaboratively to give front line support to the entire armed forces community including serving personnel, reservists, early service leavers, veterans and their families.
The Hub delivers a service that supports the five pillars of wellbeing: –
- Homelessness
Broughton House Hub Objectives:
- Empower veterans to take control of their own lives.
- Provide a pro-active approach and early intervention.
- Create greater access to services by providing NAAFI Break Drop-In’s within the communities.
- Integrate veterans into the community.
- Promote independent living.
- Promote health and wellbeing.
- Eradicate loneliness and isolation.
- Improve access to services and opportunities.
- Raise awareness and educate.
- Help veterans to gain sustained employment.
- Welfare (Including debts and benefits)
- Health and wellbeing (Including isolation, mental health, substance misuse and social inclusion)
- Training and education
- Employment
The Hub enables collaborative working between service providers and provides a single point of contact for client journey / case management. Improving access to services for clients in a friendly, unique, fast and comprehensive way, providing full needs assessments and direct, bespoke referral pathways.
Staffing for the Hub consists of the Hub Manager/ Lead Counsellor, a Counsellor and a Welfare Officer; all working part-time.
The Hub have adapted to the challenges of the pandemic by adopting technology to enable effective remote support, thereby providing a welfare and wellbeing counselling services at a time of most need. This has been a vital service, especially during the pandemic, with increased numbers of Veterans experiencing isolation which has frequently led to substance dependency or mental health issues. The Hub has worked at full capacity throughout the pandemic to ensure the maximum number of veterans have been assisted.
The Hub arm of the Charity received funding for the past three years. However, since 1[st] April 2021 this funding has been withdrawn due to the financial implications of the pandemic. Broughton House has taken the funding at risk as we deem the Hub to be an essential veteran service.
A prominent, bespoke design for the Hub is planned as part of the Phase 1b development of the new Veteran Care Village.
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C H A R I T A B L E A C T I V I T I E S – V E T E R A N C A R E V I L L A G E P R O J E C T
In 2015 the Board of Trustees embarked on a project to create the UK’s first Veteran Care Village; replacing our existing building with a state-of-the-art Care Village delivering a trinity of services: –
Phase 1b is currently under construction with an estimated completion date of December 2021. Within this phase our dedicated team will provide both Residential Care and Residential Dementia Care and a bespoke space for our Armed Forces Support Hub.
- 64 bed registered nursing & dementia home – Designed to offer the most supportive and dignified environment, the registered care and dementia facility will be divided into smaller ‘households’ so each veteran continues to feel at home.
- Phase 1B – Construction of 2 x 16-bedded care home households, 6 x independent living apartments, Armed Forces Support Hub offices.
In preparation for decanting from the Victorian building to the new Care Home we had to reduce our numbers temporarily from 50 to 32 residents with a corresponding reduction in income. There have been a number of delays in the build programme, including the severe impact of the COVID-19 pandemic, which have put additional strain on the Charity's finances. In December 2020 the Board of Trustees made the difficult decision to sell land intended for Phase Two, which in the original plan would house a further 24 independent living apartments for veterans.
- Independent living apartments – For veterans and/or their families. The independent living apartment concept combines the freedom of independent living with the reassurance that a caring community is close by for help, support and friendship.
- Charity and Armed Forces Support Hub – Offering case managed dedicated support to ex-servicemen & women.
Phase 1a enablement work started in September 2018 to provide a Registered 32 bed Nursing and Residential facility that will also provide respite and rehabilitation.
Notwithstanding, we are focused on our goal to provide the UK’s first Veteran Care Village and to deliver a trinity of services to Veterans. This would not have been possible without the support of the Stoller Trust, led by Sir Norman Stoller, Service Charities, grant-making trusts, the Greater Manchester Combined Authority and individual supporters; we are indebted to them for their support and encouragement for our work in wholeheartedly backing the development the UK’s first Veteran Care Village, which will provide both care and support for the veteran community.
- Phase 1A – Construction of 2 x 16-bed care home households and care home facilities including kitchen, laundry, stores, gym, activity rooms, treatment rooms, gardens and grounds. Museum, café and Charity offices.
This phase was completed on the 14th September 2020 and we are pleased to report is now a stateof-the-art Care Home for our Residents.
BROUGHTON HOUSE - VETERAN CARE VILLAGE PHASE 1B UNDER CONSTRUCTION
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THE BROUGHTON HOUSE VETERAN CARE VILLAGE
PHASE 1B UNDER CONSTRUCTION
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June 2021
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Achievements & performance
## F U N D R A I S I N G A C T I V I T I E S
The Charity is registered with the Fundraising Regulator and works within the Fundraising Code of Practice. The Charity is committed to employing the highest standards in its approach to fundraising.
Over the last year the current environment for fundraising activity has been particularly challenging; the COVID-19 pandemic has significantly affected our fundraising efforts.
We are particularly grateful, in the financial year 2020/2021, for the specific COVID-19 Support grants we received from The Armed Forces Covenant Fund, Salford City Council and Royal Navy Royal Marines Charity.
The Charity depends on voluntary income to supplement fee income in order to meet the full cost of the care provided to residents.
We remain indebted to our supporters, not least the Service Charities: - ABF ‘The Soldiers Charity’, The Royal Air Force Benevolent Fund and Royal Navy Royal Marines Charity who all made significant grants to our annual operating costs. Furthermore, we remain immensely grateful to The Armed Forces Covenant Fund, The Veterans Foundation, Queen Mary's Roehampton Trust, the Zochonis Charitable Trust and Booth Charities for their very generous grants towards our work. Without this support and other kind donations, the Charity would struggle to continue.
Support to the Capital Fund was led by the Stoller Trust; we remain indebted to the Trust for their continued affiliation and support for our work. In the financial year 2020/2021 grants towards the capital project were also received from The Michael Bishop Foundation.
Fundraising events during the year were minimal and sadly, alongside other planned events, we had to cancel the Victory in Europe 75th Anniversary Gala Dinner planned for May 2020. However, two sponsored Skydive events were successfully completed in July and September 2020 and the Army in the North West promoted Broughton House during their work in testing and delivering vaccinations to the public.
Fundraising for both the General and Capital Funds is ongoing. This income is critical and enables Broughton House to continue to meet the changing needs of the ex-Service community.
The Trustees are most grateful to all our loyal supporters, volunteers and friends for their continued dedication and support that we receive.
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BROUGHTON HOUSE IN-HOUSE REMEMBRANCE SERVICE
NOVEMBER 2020
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## achievements & performance
~~MARCH 2021~~
O U R S U P P O R T E R S
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financial review
## INCOME
Income for the year 2020/2021 totalled £2,596,197 broken down as follows:
- General Fund £1,277,893 (available to meet operating costs)
- Restricted Fund £1,303,528 and
- Designated Fund £14,776.
There continues to be a widening divergence between the actual cost of care and the care homes fees set by the local authorities.
Income from contributions, accounted for 67% of unrestricted fund income; fee income has reduced due to the recent sad loss of residents following the COVID-19 outbreak in the Care Home and, over the past three years, due to planned lower occupancy in preparation for the new build. The average occupancy in the year 2020/2021 was 27.
The current environment for fundraising is particularly challenging. The COVID-19 pandemic has significantly affected our fundraising efforts. We are most grateful for the COVID-19 Relief Grants we received during the financial year.
## **Restricted Fund**
The Restricted Fund income totaling £1,303,528 is inclusive of £952,983 towards the new build project.
## **Designated Fund**
The Designated Fund at year-end totals £6,907,523 and includes the freehold property £4,962,886, assets under construction £1,620,742, investment funds £273,520 and heritage assets held in the Charity’s museum £50,375.
A combination of spend to deliver safe practices, particularly during our COVID RED period of three months, and loss of income consequently led to the financial implication of an unrestricted annual fund deficit. This required higher additional financial support than originally forecast in the year from the Charities Reserves.
## EXPENDITURE
Expenditure on the Veteran Care Village is closely monitored and overseen by the Board of Trustees.
All other areas of financial expenditure are closely scrutinised and balanced against operational safety in the delivery of care.
## POST BALANCE SHEET EVENTS
## **GMCA Loan Facility**
To ameliorate our financial shortfall Broughton House has been proactively working closely with The Greater Manchester Combined Authority who have agreed to extend the current loan facility to provide: –
- A Capital Loan of £1.2M to complete the New Build Project
- Working Capital Facility of £500K
- Capital payments to be made monthly once Broughton House has accumulated £500,000 of cash reserves on the balance sheet.
## **Sale of Phase 2 Land**
The Agreement for Lease of the Phase 2 Land was exchanged in June 2021.
## TRUSTEES’ CONFIRMATION
The Trustees confirm that the accounts have been prepared in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the
Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) effective January 2015.
## RESERVES POLICY
It is the policy of the Trustees to maintain a Reserve Fund at a level that equates to at least three months of unrestricted expenditure. This provides sufficient funds to cover costs in the unlikely event of normal sources of income drying up.
A combination of spend to deliver safe practices, particularly during our COVID RED period of three months, and loss of income from reduced occupancy consequently led to the financial implication of an annual deficit. This required higher additional financial support than originally forecast in the year from the Charities Reserves. Ultimately, the Reserves Fund was deployed for its designated purpose.
At year-end the Reserve Fund totalled £273,520 (2019/2020 year-end total £594,297).
In addition to the recent COVID-19 crisis, monies from the Reserve Fund have been utilised to cover the capital project start-up costs. The Fund has therefore reduced significantly over the past few years.
Once the Veteran Care Village is complete and fully operational the Trustees endeavour to build the Reserve Fund back up to at least three months of unrestricted expenditure.
## INVESTMENT POWERS & POLICY
To increase the efficiency of the investment process the Charity’s Broker has been given discretionary authority to invest on the Charity’s behalf. Changes in the investment portfolio continue to be monitored by the Trustee Board on a regular basis and the Investment Fund Manager is invited to brief the Board every six months.
## CREATING A SUSTAINABLE
## FINANCIAL FUTURE FOR THE CHARITY
Broughton House has fixed assets with property, assets under construction and plant, which are fundamental to the business, valued at £9,908,122. Investments which are held in the Charity’s Reserve (Designated) Fund are valued at £273,520.
It is the policy of the Trustees to maintain a Reserve (Designated) Fund at a level that equates to at least three months of unrestricted expenditure and to place all windfall income, such as legacies, directly into the Charity’s Reserve (Designated) Fund. As noted under Reserves Policy, the Reserves held currently fall below this level.
Monies placed into the Reserve Fund are held in an investment portfolio with percentage yield / return based on investment strategy and financial markets. This fund is used to meet any General Fund deficit and assists with emergency funding in the unlikely event of normal sources of income drying up and ensures business continuity in the event of a major or unexpected event at the Home.
The Charity currently depends on voluntary income to supplement fee income and meet the full cost of the care provided to a high percentage of its Residents. A significant proportion of this income is received from the Service Charities, Trusts, Legacies and individuals who have direct experience of the Second World War and subsequent conflicts in which Forces served. The Charity must keep in mind that the level of legacy and voluntary income may fall significantly in future years as the Armed Forces reduce in number and consequently those in contact with them falls.
When setting care fees, the Charity seeks to achieve a balance between affordability and a level that is consistent with providing first class care and
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accommodation for Residents, in order to ensure the long-term financial viability of the Charity. This means that we welcome Residents whose care is funded from a variety of sources.
The Charity seeks not to exclude any potential beneficiary on the grounds of financial hardship.
## FUNDING SOURCES
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6%
18%
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76%
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LOCAL AUTHORITY CCG PRIVATE – 28 – 2 – 7
## GOING CONCERN STATEMENT
Following consideration of the capital cost of phase one of the Veteran Care Village, the ability of the Charity to meet its future running costs and the consequences of the COVID-19 pandemic the Board of Trustees had to take major action to ensure the future of the Charity: –
## **1) GMCA Loan Facility**
To ameliorate our financial shortfall Broughton House has been proactively working closely with The Greater Manchester Combined Authority
who have agreed to extend the current loan facility to provide: –
- A Capital Loan of £1.2M to complete the New Build Project
- Working Capital Facility of £500K
- Capital payments to be made monthly once Broughton House has accumulated £500,000 of cash reserves on the balance sheet.
The Greater Manchester Combined Authority have agreed in principle to provide additional financial support should this be required.
## **2) Sale of Phase 2 Land**
To lease the land which was earmarked for Phase 2 of the build project. The Agreement for Lease of the Phase 2 Land was exchanged in June 2021.
The Charity is guided by regularly updated strategic, business and financial plans looking ten years ahead.
With the extended loan and sale of land agreed, the Trustees confirm that Broughton House – Veteran Care Village is considered to be a ‘going concern’ for the forthcoming year and foreseeable future.
## KEY MANAGEMENT & PERSONNEL REMUNERATION
Key management personnel of the Charity are considered to be the Board of Trustees, together with the Chief Executive and Registered Manager who are in charge of directing and controlling the Charity and the running and operating of the Charity on a day to day basis.
All Trustees give of their time freely and no trustee remuneration was paid in the year.
The pay of the Charity’s Chief Executive and Registered Manager is reviewed annually and normally increased in accordance with average earnings.
The remuneration is also bench-marked with grant-making charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.
## RISK MANAGEMENT
Major risks to the Charity as identified by the Trustees and listed in the Risk Register have been reviewed and appropriate action has been taken and systems have been put in place to mitigate the risks. Records exist to show that statutory and local procedures are being implemented. Statutory requirements and procedures are constantly under review.
The principal risks facing the Charity are set out as follows: – COVID-19, Financial, Health and Safety, Safeguarding, Training, Human Resources, Quality Assurance and Compliance and Charity Governance.
Currently the long-term financial sustainability of the Charity is compromised: Reduced income from fees and an increase in running costs has had an impact on our Reserves as we deployed funds from our investments in order to fund our operations. In addition to this, the Reserve Fund has been utilised for the project start-up costs. Mitigation include actions to improve our profile and fundraising performance over the next few years and plans to replace the existing care home facility with the Veteran Care Village model as outlined in our objectives.
## STATEMENT OF TRUSTEES RESPONSIBILITIES
The financial statements of the Charity, which is a public benefit entity under FRS 102, have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the
Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102)), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006 and the Charities Act 2011.
The Trustees to prepare financial statements for each financial year, which give a true and fair view of the Charity’s financial activities during the year and of its financial position at the end of the year. In preparing those financial statements the Trustees are required to:
_Select suitable accounting policies and apply them consistently._
_Make judgements and estimates that are reasonable and prudent._
_State whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements._
_Prepare the financial statements on an ongoing basis unless it is inappropriate to presume that the Charity will continue in operation._
The Trustees are responsible for keeping accounting records, which disclose, with reasonable accuracy, at any time the financial position of the Charity, and enable them to ensure that the financial statements comply with applicable regulations. They are also responsible for safeguarding the assets of the Charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## APPROVAL
This Report was approved by the Board of Trustees on 18[th] January 2022 and was signed on its behalf by:
## P Waterhouse
Commodore P Waterhouse ADC RN, Chairman
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GOVERNING BODY
GOVERNING BODY
## CHAIRMAN
## **Commodore Phil Waterhouse ADC RN**
Commodore Phil Waterhouse is the Naval Regional Commander for Northern England and the Isle of Man; as such he is the First Sea Lord’s ambassador for the region with the specific task of ensuring that the Naval Service is understood, respected and valued by the community which it serves. To deliver this output he engages personally at the national and regional strategic level whilst his small team delivers tactical engagement at major events and in various locations around the North; that team also facilitates port visits by RN and NATO platforms and contributes to the regional resilience effort. He has been in post since early 2017 and flies his Broad Pennant from his HQ in Liverpool.
## TRUSTEES:
Commodore P Waterhouse ADC RN – Chairman Mr K Bishop – (resigned September 2020) Mrs E Conn OBE JP DL Mr P Curtis – (appointed June 2021) Lieutenant Colonel SM Dixon MBE TD DL – Vice Chairman Mr W Enevoldson Professor Alan Finnegan – (resigned April 2020) Colonel P Loynes LLB RM Mrs H Meredith – (resigned April 2020) Colonel R Miller OBE
Lieutenant Colonel S Stewart – (appointed August 2020) Brigadier TN O’Brien CBE TD VR DL Mrs Z Watters
## VICE-PRESIDENT:
The Rt Worshipful the Ceremonial Mayor of the City of Salford
## LIFE VICE-PRESIDENT:
## PRESIDENT
## **The Lord-Lieutenant of Greater Manchester Sir Warren J Smith KCVO KStJ JP**
The Lord-Lieutenant is a retired businessman and was appointed the Lord-Lieutenant of Greater Manchester in 2007. His passion for the armed forces led him to become President of Broughton House in 2008.
The Lord-Lieutenant is an active supporter of the charity and regularly visits as well as supporting the team at events across the region.
Surgeon Commander JRN Curt OBE RD* DL FRCS RNR
## CHIEF EXECUTIVE OFFICER:
Ms K Miller
## REGISTERED MANAGER:
Mrs A Wiseman
## AUDITORS:
Mitten Clarke Audit Limited, St George’s House, 56 Peter Street, Manchester
## BANKERS:
National Westminster Bank plc, 463 Bury New Road, Prestwich, Manchester
## INVESTMENT MANAGERS:
Investec, 2nd Floor, 3 Hardman Street, Spinningfields, Manchester
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'1 Iir,I
34 ANNUAL REPORT & ACCOUNTS 202
IIGHTONH
## `Become a Regular Giver`
**----- Start of picture text -----**
100
Y E A R S O F
VETERAN
CARE
O V E R
**----- End of picture text -----**
Please become a Regular Giver, any amount you can spare is a great way to help the ex-service men and women we care for.
It's easy to set up, you specify the amount you'd like to donate and then we do the rest. You can amend or cancel the donation at any time, get in touch if anything changes.
Registered Charity Number: 1155225
**----- Start of picture text -----**
Gift Aid Declaration
Your Details Title: First Name: Surname: Address: Postcode: Mobile Phone: Email Address: Gift Aid Declaration Please treat all donations I make or have made to Broughton House Veteran Care Village for the past four years as Gift Aid donations until I notify you otherwise. I am a UK Taxpayer and understand that if I pay less income Tax and/or Capital Gains Tax than the amount Gift Aid claimed on all my donations in that tax year it is my responsibility to pay any difference. I understand that Broughton House Veteran Care Village will reclaim 25p of tax on every £1 I give. Signature: Date: Staying In Touch Join our e-mail list and keep up to date with events, activities and news:
You can also make a donation online at: www.justgiving.com/broughtonhousehome OR by scanning this QR Code
4
2
3 0
3 2
7 7
Bank of Natwest 1 0
Veteran Care Village
9 1
Please pay to Broughton House
Instructions to your Bank/Building Society 4 0 £
Account Number: Sort Code: I would like to donate: per month/quarter/year* *please delete as appropriate to Broughton House Veteran Care Village until further notice. Signature: Date:
Broughton House
Regular Giving
I'd like to make the following gift on a regular basis to support those who served us. To Manager (Bank Name and Address): Postcode: Name(s) of Account Holder(s): Bank/Building Society Account Number: Branch Sort Code: Address & Postcode:
Thank you for supporting Broughton House Veteran Care Village. Your donation will help us continue to provide care for those who served us. Please post your completed forms to: Veteran Care Village, Park Lane, Salford, M7 4JD
**----- End of picture text -----**
AUDITOR'S REPORT & FULL ACCOUNTS
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number** 1155225
## **Principal address**
Park Lane Kersal Salford Manchester Greater Manchester M7 4JD
## **Opinion**
We have audited the financial statements of Broughton House - Veteran Care Village (the ’charity’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Trustees**
## **Basis for opinion**
## **Auditors**
Mitten Clarke Audit Limited Statutory Auditors St George’s House 56 Peter Street Manchester M2 3NQ
## **EVENTS SINCE THE END OF THE YEAR**
Information relating to events since the end of the year is given in the notes to the financial statements.
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 Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The financial statements of the Charity, which is a public benefit entity under FRS 102, have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006 and the Charities Act 2011.
The Trustees to prepare financial statements for each financial year, which give a true and fair view of the Charity’s financial activities during the year and of its financial position at the end of the year. In preparing those financial statements the Trustees are required to:
Select suitable accounting policies and apply them consistently.
Make judgements and estimates that are reasonable and prudent.
State whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements.
Prepare the financial statements on an ongoing basis unless it is inappropriate to presume that the Charity will continue in operation.
The Trustees are responsible for keeping accounting records, which disclose, with reasonable accuracy, at any time the financial position of the Charity, and enable them to ensure that the financial statements comply with applicable regulations. They are also responsible for, safeguarding the assets of the Charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the board of trustees on ............................................. 18[th] January 2022 and signed on its behalf by:
....................................................... P Waterhouse Commodore P Waterhouse - Trustee
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
-
- the financial statements are not in agreement with the accounting records and returns; or
-
- we have not received all the information and explanations we require for our audit.
-
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AUDITOR'S REPORT & FULL ACCOUNTS
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees’ Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Our responsibilities for the audit of the financial statements**
We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Mitten Clarke Audit Limited Statutory Auditors St George’s House 56 Peter Street Manchester M2 3NQ
Date: .............................................26 January 2022
In preparation for our audit we identified areas of laws and regulations which we considered could have a material effect on the financial statements. This information was obtained via discussions with management and from our general commercial and sector experience. The trustees also provide us with written representation of all the key and fundamental industry specific laws and regulations with they are required to adhere to. These were then communicated to the whole of the audit team at our audit planning meeting.
As a care home for ex-servicemen and women non-compliance with the Care Quality Commission regulations, the Health & Social Care Act and charity law, tax and other financial regulations were assessed to be most relevant. Our audit procedures to identify non-compliance with laws and regulations in these areas consisted of:
## - Enquiries with management;
- Inspection of regulatory records, inspection reports, submissions, and other correspondence;
- Challenges to management assumptions and judgements in relation to accounting estimates.
- Review of journals entered throughout the year.
Despite appropriate planning and performing our work in accordance with International Auditing Standards, there are always inherent limitations that non-compliance is not detected. Non-compliance with laws and regulations is often further removed from the events and transactions reflected in the financial statements and material misstatements due to fraud can be deliberately concealed from auditors, for example through misrepresentation, forgery or collusion.
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 Report of the Independent Auditors.
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## AUDITOR'S REPORT & FULL ACCOUNTS
STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31 MARCH 2021
|Unrestricted
fund
Notes
£
**INCOME FROM**
Donations and legacies
3
410,596
**Charitable activities**
6
Veteran Care village
867,297
Bar income
4
-
Investment income
5
-
**Total**
1,277,893
**EXPENDITURE ON**
Raising funds
7
121,531
**Charitable activities**
8
Veteran Care village
1,630,034
Support hub
-
Bar expenditure
-
**Total**
1,751,565
Net gains/(losses) on
investments
-
**NET**
**INCOME/(EXPENDITURE)**
(473,672)
**Transfers between funds**
23
779,235
**Net movement in funds**
305,563
**RECONCILIATION OF**
**FUNDS**
**Total funds brought**
**forward**
33,983
**TOTAL FUNDS CARRIED**
**FORWARD**
339,546|Designated
funds
£
-
-
-
14,776
14,776
7,786
315,162
-
-
322,948
142,233
(165,939)
(895,925)
(1,061,864)
7,969,387
6,907,523|Restricted
funds
£
1,303,528
-
-
-
1,303,528
1
390,265
45,152
-
435,418
-
868,110
116,690
984,800
(416,745)
568,055|2021
Total
funds
£
1,714,124
867,297
-
14,776
2,596,197
129,318
2,335,461
45,152
-
2,509,931
142,233
228,499
-
228,499
7,586,625
7,815,124|2020
Total
funds
£
2,960,574
912,069
1,426
21,002
3,895,071
114,263
2,172,380
72,489
1,222
2,360,354
(71,289)
1,463,428
-
1,463,428
6,123,197
7,586,625|
|---|---|---|---|---|
## B A L A N C E S H E E T A T 31 M A R C H 2 0 21
||||||||2021|2020|
|---|---|---|---|---|---|---|---|---|
|||Unrestricted||Designated|Restricted||Total|Total|
|||fund||funds|funds||funds|funds|
||Notes|£||£|£||£|£|
|**FIXED ASSETS**|||||||||
|Tangible assets|14|309,017||9,599,105||-|9,908,122|7,372,204|
|Heritage assets|15||-|50,375||-|50,375|56,375|
|Investments|16||-|265,774||-|265,774|589,768|
|||309,017||9,915,254||-|10,224,271|8,018,347|
|**CURRENT ASSETS**|||||||||
|Debtors|17|73,738||-|415,169||488,907|26,481|
|Cash in hand||111,072||7,746|1,011,098||1,129,916|187,998|
|||184,810||7,746|1,426,267||1,618,823|214,479|
|**CREDITORS**|||||||||
|Amounts falling due within|||||||||
|one year|18|(154,281)||-|(858,212)||(1,012,493)|(546,201)|
|**NET CURRENT ASSETS**||30,529||7,746|568,055||606,330|(331,722)|
|**TOTAL ASSETS LESS**|||||||||
|**CURRENT LIABILITIES**||339,546||9,923,000|568,055||10,830,601|7,686,625|
|**CREDITORS**|||||||||
|Amounts falling due after|||||||||
|more than one year|19||-|(3,015,477)||-|(3,015,477)|-|
|**PROVISIONS FOR**|||||||||
|**LIABILITIES**|22||-|-||-|-|(100,000)|
|**NET ASSETS**||339,546||6,907,523|568,055||7,815,124|7,586,625|
|**FUNDS**|23||||||||
|Unrestricted funds|||||||7,247,069|8,003,370|
|Restricted funds|||||||568,055|(416,745)|
|**TOTAL FUNDS**|||||||7,815,124|7,586,625|
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 18[th] January 2022
## P Waterhouse
............................................. Commodore P Waterhouse - Trustee
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|AUDITOR'S REPORT & FULL ACCOUNTS|||
|---|---|---|
|C A S H F L O W S T A T E M E N T F O R T H E Y E A R E N D E D 31 M A R C H
2021
Notes
£
**Cash flows from operating activities**
Cash generated from operations
1
383,230
Net cash provided by operating activities
383,230
**Cash flows from investing activities**
Construction of veteran care village
(2,577,775)
Purchase of tangible fixed assets
(348,240)
Purchase of fixed asset investments
-
Sale of heritage assets
3,700
Sale of fixed asset investments
466,227
Dividends received
14,776
Net cash used in investing activities
(2,441,312)
**Cash flows from financing activities**
New loans in year
3,000,000
Net cash provided by financing activities
3,000,000
**Change in cash and cash**
**equivalents in the reporting period**
941,918
**Cash and cash equivalents at the**
**beginning of the reporting period**
187,998
**Cash and cash equivalents at the**
**end of the reporting period**
1,129,916|2 0 21
2020
£
2,222,342
2,222,342
(3,586,458)
-
(53,640)
-
(71,289)
21,002
(3,690,385)
-
-
(1,468,043)
1,656,041
187,998|N O T E S T O T H E C A S H F L O W S T A T E M E N T F O R T H E Y E A R E N D E D 31
M A R C H 2 0 21
**1.**
**RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
2021
2020
£
£
**Net income for the reporting period (as per the Statement**
**of Financial Activities)**
228,499
1,463,428
**Adjustments for:**
Depreciation charges
129,069
9,818
(Gain)/losses on investments
(142,233)
71,289
Loss on disposal of fixed assets
40,068
-
Dividends received
(14,776)
(21,002)
Impairment of tangible fixed assets
238,737
477,473
Decrease in provisions
(100,000)
100,000
(Increase)/decrease in debtors
(462,426)
5,401
Increase in creditors
466,292
115,935
**Net cash provided by operations**
383,230
2,222,342
2.
**ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)**
At 1.4.20
Cash flow
At 31.3.21
£
£
£
**Net cash**
Cash at bank and in hand
187,998
941,918
1,129,916
187,998
941,918
1,129,916
**Debt**
Debts falling due after 1 year
-
(3,015,477)
(3,015,477)
-
(3,015,477)
(3,015,477)
**Total**
187,998
(2,073,559)
(1,885,561)|
|A N N U A L R E P O R T & A C C O U N T S 2 0 21||W W W . B R O U G H T O N H O U S E . C|
## AUDITOR'S REPORT & FULL ACCOUNTS
C A S H F L O W S T A T E M E N T F O R T H E Y E A R E N D E D 31 M A R C H 2 0 21
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N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 31 M A R C H 2 0 21
## **2. ACCOUNTING POLICIES - continued**
## **Expenditure**
## **1. GOING CONCERN**
Following consideration of the capital cost of phase one of the Veteran Care Village, the ability of the charity to meet its future running costs and the consequences of the COVID-19 pandemic, amongst other challenges, the trustees are satisfied that the charity is a going concern.
In making this assessment the trustees have considered that the charity has sufficient funds to meet expenditure for at least 12 months following the date of approval of the financial statements. Further details are included in the trustees annual report.
## **2. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011.
The financial statements have been prepared under the historical cost convention unless otherwise stated in the relevant accounting policy note(s) with the exception of investments which are included at market value.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Cost of Charitable Activities**
These include all direct salaries and other costs in delivering the Charity’s charitable activity as a care home.
## **Governance Costs**
These are costs directly associated with the Governance of the charity, including legal and regulatory compliance and strategic planning.
## **Raising funds**
The charity operates a money purchase pension scheme. Contributions payable for the year are charged to the Statement of Financial Activities.
## **Tangible fixed assets**
All significant assets purchased or otherwise acquired for ongoing use in the business are capitalised when they are put into use.
## **Fundamental accounting concept**
The accounts have been drawn up on a going concern basis. In common with many charities, the adoption of the going concern basis is dependent on the charity receiving adequate fundraising from voluntary income such as donations, legacies and grants. While the trustees recognise the uncertainties inherent in predicting the timing and level of future funding from income that is not yet assured, they believe that adequate funding will be secured from donations, legacies and grants. We continue to receive the full support of the bank. The accounts do not include any adjustments that would result if the going concern basis was not appropriate.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Donations in kind, other than items donated for sale, are recognised at their fair value to the charity when they are received. No amounts are included for services donated by volunteers. Incoming resources compromise:
An annual impairment review has been undertaken for freehold land and building, market value is considered far in excess of carrying value.
Depreciation is provided at rates to write off the costs of fixed assets, less the estimated residual value, over their expected useful lives on the following basis:
|Freehold property|2% on cost|
|---|---|
|Motor vehicles|25% reducing balance|
|Plant & equipment|10% reducing balance|
|Fixtures & fittings|20% reducing balance|
|Computer equipment|50% on cost|
Assets under construction relate to the construction of the new care village which was in progress at the year end. Upon completion of the work the cost will be transferred to freehold property and depreciated over its useful economic life.
## **Heritage assets**
|Legacies|Bequest legacies are recognised when the charity becomes entitled to it|
|---|---|
||by way of probate being granted and sufficient information is received to|
||enable an accurate valuation of the Charity’ entitlement.|
|General donations|Donations are recognised when the monies are received.|
|Service charities|Donations received from service charities are recognised when either the|
||money is received, if no prior notice of donation, or when the charity is|
||notified of the donation and the amount can be quantified.|
|Fund raising|Fund raising income is recognised as received.|
|Investment|Investment income is recognised as it is earned and the policy results in|
|income|accrued income.|
|Fee contributions|Fee income is recognised as the service is provided.|
The Charity owes a large collection of military memorabilia including medals which it exhibits in a small museum within the care home for the residents and visitors to view. The collection includes artefacts from WW1, WW2 and various other conflicts. Consisting of: -
- over 400 medals
- 9 uniforms
- 39 WW1 memorial plaques
- framed memorabilia and pictures
- items associated with the founding of Broughton House including a silver matchbox presented by Admiral Viscount Sir John Jellicoe in 1917 and a wheelchair presented to the charity in 1918 by the American Red Cross.
- Bruce Bairnsfather memorabilia including large cartoon drawing
As the items in this collection are held for their contribution to the heritage and history of service men and women they qualify as heritage assets in line with section 34 of FRS102 and are held on the balance sheet at what is understood to be their market value by the charity.
W W W . B R O U G H T O N H O U S E . C O M 4 7
4 6 A N N U A L R E P O R T & A C C O U N T S 2 0 21
## AUDITOR'S REPORT & FULL ACCOUNTS
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 31 M A R C H 2 0 21
## **3. DONATIONS AND LEGACIES - continued**
## **2. ACCOUNTING POLICIES - continued**
## **Heritage assets**
The Trustees have set a policy of recognising individual heritage assets with a value of greater than £1,000 in the financial statements. From time to time the Charity is donated memorabilia to add to the collection. Any donated items received with a value in excess of the accounting policy are recognised as additions in the year that they are received.
The Trustees have no intention of disposing of items in the collection unless there were some exceptional circumstances which the Trustees consider to the in the best interest of the charitable objectives.
The collection is valued for insurance purposes and any deemed change in market value is recognised through the statement of financial activities.
## **Taxation**
The charity is exempt from tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
The trustees have chosen to put aside unrestricted legacy income into a designated fund.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Fixed asset investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using closing quoted market price. The statement of financial activities includes the net gain and losses arising on revaluation and disposals throughout the year.
The charity does not acquire any derivatives or other complex financial instruments.
The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions.
## **Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
|Government grants received, included in the above, are as follows:
Coronavirus Job Retention Scheme
Salford City Council Covid-19 Funding
**4.**
**BAR INCOME**
Bar income
**5.**
**INVESTMENT INCOME**
Dividends received
**6.**
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Fees
Veteran Care village
**7.**
**RAISING FUNDS**
**Raising donations and legacies**
Staff costs
Appeals
**Investment management costs**
Investment advice
Aggregate amounts|||||||||
|---|---|---|---|---|---|---|---|---|
|||2021||||||2020|
|||£||||||£|
||||||||||
|||29,379||||||-|
|||158,658||||||-|
||||||||||
||||||||||
|||188,037||||||-|
||||||||||
|||2021
£
-
2021
£
14,776
2021
£
867,297
2021
£
91,170
30,362
121,532
2021
£
7,786
129,318||||2020
£
1,426
2020
£
21,002
2020
£
912,069
2020
£
81,019
25,136
106,155
2020
£
8,108
114,263|||
**3. DONATIONS AND LEGACIES**
|Service charities
Donations
Legacies
Fundraising income
Support hub grant
Government grants|2021
£
180,473
1,321,699
1,000
777
22,137
188,038
1,714,124|2020
£
137,382
2,423,086
287,088
45,018
68,000
-|
|---|---|---|
|||2,960,574|
W W W . B R O U G H T O N H O U S E . C O M 4 9
4 8 A N N U A L R E P O R T & A C C O U N T S 2 0 21
AUDITOR'S REPORT & FULL ACCOUNTS
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 31 M A R C H 2 0 21
## **8. CHARITABLE ACTIVITIES COSTS**
|**CHARITABLE ACTIVITIES COSTS**||||
|---|---|---|---|
|Veteran Care village
Support hub|Direct
Costs (see
note 9)
£
1,846,326
45,152
1,891,478|Support
costs (see
note 10)
£
489,135
-
489,135|Totals
£
2,335,461
45,152|
||||2,380,613|
## **9. DIRECT COSTS OF CHARITABLE ACTIVITIES**
|||2021|2020|
|---|---|---|---|
|||£|£|
|Staff costs||1,271,910|1,177,693|
|Residential costs||136,885|131,437|
|Miscellaneous costs||130,758|20,465|
|Food costs||54,259|46,952|
|Medical costs||43,970|24,125|
|Maintenance costs||24,729|10,419|
|Support hub costs||4,655|1,399|
|Cleaning costs||46,459|31,520|
|Training costs||8,716|9,878|
|Depreciation||129,069|9,818|
|Loss on sale of assets||40,068|-|
|||1,891,478|1,463,706|
|**SUPPORT COSTS**||||
||Support|Governance||
||costs|costs|Totals|
||£|£|£|
|Veteran Care village|476,847|12,288|489,135|
## **10. SUPPORT COSTS**
Support costs, included in the above, are as follows:
## **Support costs**
|**Support costs**|||
|---|---|---|
||2021|2020|
||Veteran||
||Care|Total|
||village|activities|
||£|£|
|Wages|106,729|124,381|
|IT and computer costs|12,767|13,249|
|Legal and professional fees|118,614|51,003|
|Provision for losses|-|100,000|
|Impairment losses|238,737|477,473|
||476,847|766,106|
|**10.**
**SUPPORT COSTS - continued**
**Governance costs**
2021
2020
Veteran
Care
Total
village
activities
£
£
Auditors’ remuneration
12,288
14,296
Trustees expenses
-
761
12,288
15,057
**11.**
**AUDITORS' REMUNERATION**
The auditor’s remuneration constituted an audit fee of £11,700 (2020:£11,913) and additiona
non-audit services work of £6,550 (2020 :£Nil).
All amounts are exclusive of VAT which is no
recoverable.
**12.**
**TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees’ remuneration or other benefits for the year ended 31 March 2021 nor fo
the year ended 31 March 2020.
**Trustees' expenses**
Trustees expenses paid during the year amounted to £Nil (31 March 2020 : £761).
**13.**
**STAFF COSTS**
2021
2020
Staff costs
£
£
Wages & salaries
1,106064
1,087,234
Social security costs
89,022
85,281
Pension costs
23,187
24,190
1,218,273
1,196,705
The average number of employees, analysed by function was:
2021
2020
Nursing & residential
44
48
Fundraising & publicity
2
2
Management & administration of the charity
6
6
52
56|**10.**
**SUPPORT COSTS - continued**
**Governance costs**
2021
2020
Veteran
Care
Total
village
activities
£
£
Auditors’ remuneration
12,288
14,296
Trustees expenses
-
761
12,288
15,057
**11.**
**AUDITORS' REMUNERATION**
The auditor’s remuneration constituted an audit fee of £11,700 (2020:£11,913) and additiona
non-audit services work of £6,550 (2020 :£Nil).
All amounts are exclusive of VAT which is no
recoverable.
**12.**
**TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees’ remuneration or other benefits for the year ended 31 March 2021 nor fo
the year ended 31 March 2020.
**Trustees' expenses**
Trustees expenses paid during the year amounted to £Nil (31 March 2020 : £761).
**13.**
**STAFF COSTS**
2021
2020
Staff costs
£
£
Wages & salaries
1,106064
1,087,234
Social security costs
89,022
85,281
Pension costs
23,187
24,190
1,218,273
1,196,705
The average number of employees, analysed by function was:
2021
2020
Nursing & residential
44
48
Fundraising & publicity
2
2
Management & administration of the charity
6
6
52
56|**10.**
**SUPPORT COSTS - continued**
**Governance costs**
2021
2020
Veteran
Care
Total
village
activities
£
£
Auditors’ remuneration
12,288
14,296
Trustees expenses
-
761
12,288
15,057
**11.**
**AUDITORS' REMUNERATION**
The auditor’s remuneration constituted an audit fee of £11,700 (2020:£11,913) and additiona
non-audit services work of £6,550 (2020 :£Nil).
All amounts are exclusive of VAT which is no
recoverable.
**12.**
**TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees’ remuneration or other benefits for the year ended 31 March 2021 nor fo
the year ended 31 March 2020.
**Trustees' expenses**
Trustees expenses paid during the year amounted to £Nil (31 March 2020 : £761).
**13.**
**STAFF COSTS**
2021
2020
Staff costs
£
£
Wages & salaries
1,106064
1,087,234
Social security costs
89,022
85,281
Pension costs
23,187
24,190
1,218,273
1,196,705
The average number of employees, analysed by function was:
2021
2020
Nursing & residential
44
48
Fundraising & publicity
2
2
Management & administration of the charity
6
6
52
56|**10.**
**SUPPORT COSTS - continued**
**Governance costs**
2021
2020
Veteran
Care
Total
village
activities
£
£
Auditors’ remuneration
12,288
14,296
Trustees expenses
-
761
12,288
15,057
**11.**
**AUDITORS' REMUNERATION**
The auditor’s remuneration constituted an audit fee of £11,700 (2020:£11,913) and additiona
non-audit services work of £6,550 (2020 :£Nil).
All amounts are exclusive of VAT which is no
recoverable.
**12.**
**TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees’ remuneration or other benefits for the year ended 31 March 2021 nor fo
the year ended 31 March 2020.
**Trustees' expenses**
Trustees expenses paid during the year amounted to £Nil (31 March 2020 : £761).
**13.**
**STAFF COSTS**
2021
2020
Staff costs
£
£
Wages & salaries
1,106064
1,087,234
Social security costs
89,022
85,281
Pension costs
23,187
24,190
1,218,273
1,196,705
The average number of employees, analysed by function was:
2021
2020
Nursing & residential
44
48
Fundraising & publicity
2
2
Management & administration of the charity
6
6
52
56|
|---|---|---|---|
|||2021|2020|
|||£|£|
|||1,106064|1,087,234|
|||89,022|85,281|
|||23,187|24,190|
|||||
|||||
|||1,218,273|1,196,705|
|||||
|||||
|||2021|2020|
|||||
|||44|48|
|||2|2|
|||6|6|
|||||
|||52|56|
|||||
The auditor’s remuneration constituted an audit fee of £11,700 (2020:£11,913) and additional non-audit services work of £6,550 (2020 :£Nil). All amounts are exclusive of VAT which is not recoverable.
There were no trustees’ remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.
Number of employees with employee benefits excluding employer pension contributions:
£70,000 to £80,000 = 0
The key management personnel of the charity are the Chief Executive and the Registered Manager. The total employee benefits of the key management personnel were £123,943 (2020: £128,304).
W W W . B R O U G H T O N H O U S E . C O M 51
5 0 A N N U A L R E P O R T & A C C O U N T S 2 0 21
AUDITOR'S REPORT & FULL ACCOUNTS
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 31 M A R C H 2 0 21
## **14. TANGIBLE FIXED ASSETS**
|**TANGIBLE FIXED ASSETS**||||||
|---|---|---|---|---|---|
|||||Assets||
||||Freehold|under|Plant and|
||||property|construction|machinery|
||||£|£|£|
|**COST**||||||
|At 1 April 2020|||1,999,007|6,439,979|91,161|
|Additions|||-|2,593,251|51,590|
|Disposals|||(1,359,007)|-|(90,531)|
|Transfer|||7,412,488|(7,412,488)|-|
|At 31 March 2021|||8,052,488|1,620,742|52,220|
|**DEPRECIATION**||||||
|At 1 April 2020|||1,120,270|-|60,978|
|Charge for year|||74,125|-|3,431|
|Eliminated on disposal|||(1,359,007)|-|(63,887)|
|Impairment|||238,737|-|-|
|At 31 March 2021|||74,125|-|522|
|**NET BOOK VALUE**||||||
|At 31 March 2021|||7,978,363|1,620,742|51,698|
|At 31 March 2020|||878,737|6,439,979|30,183|
|||||||
||Fixtures|||||
||and||Motor|Computer||
||fittings||vehicles|equipment|Totals|
||£||£|£|£|
|**COST**||||||
|At 1 April 2020|127,551||43,872|39,928|8,741,498|
|Additions|268,707||-|27,943|2,941,491|
|Disposals|(125,985)||-|(14,006)|(1,589,529)|
|Transfer||-|-|-|-|
|At 31 March 2021|270,273||43,872|53,865|10,093,460|
|**DEPRECIATION**||||||
|At 1 April 2020|112,967||36,061|39,018|1,369,294|
|Charge for year|41,546||1,954|8,013|129,069|
|Eliminated on disposal|(114,862)||-|(14,006)|(1,551,762)|
|Impairment||-|-|-|238,737|
|At 31 March 2021|39,651||38,015|33,025|185,338|
|**NET BOOK VALUE**||||||
|At 31 March 2021|230,622||5,857|20,840|9,908,122|
|||||||
|At 31 March 2020|14,584||7,811|910|7,372,204|
## **15. HERITAGE ASSETS**
|Total
£
**MARKET VALUE**
At 1 April 2020
56,375
Disposals
(6,000)
At 31 March 2021
50,375
**NET BOOK VALUE**
At 31 March 2021
50,375
At 31 March 2020
56,375
Information on Heritage assets is given in note 2 of the accounts.
During the last five years there has been no acquisition of heritage assets for which values are
available.
Two assets have been sold.
A five year financial summary of Heritage
Asset
transactions is as follows:
**Disposals**
2021
2020
2019
2018
2017
£
£
£
£
£
Proceeds
3,700
-
-
-
-
Carrying value
(6,000)
-
-
-
-
Profit/(Loss) on
disposal
(2,300)
-
-
-|Total
£
**MARKET VALUE**
At 1 April 2020
56,375
Disposals
(6,000)
At 31 March 2021
50,375
**NET BOOK VALUE**
At 31 March 2021
50,375
At 31 March 2020
56,375
Information on Heritage assets is given in note 2 of the accounts.
During the last five years there has been no acquisition of heritage assets for which values are
available.
Two assets have been sold.
A five year financial summary of Heritage
Asset
transactions is as follows:
**Disposals**
2021
2020
2019
2018
2017
£
£
£
£
£
Proceeds
3,700
-
-
-
-
Carrying value
(6,000)
-
-
-
-
Profit/(Loss) on
disposal
(2,300)
-
-
-|Total
£
**MARKET VALUE**
At 1 April 2020
56,375
Disposals
(6,000)
At 31 March 2021
50,375
**NET BOOK VALUE**
At 31 March 2021
50,375
At 31 March 2020
56,375
Information on Heritage assets is given in note 2 of the accounts.
During the last five years there has been no acquisition of heritage assets for which values are
available.
Two assets have been sold.
A five year financial summary of Heritage
Asset
transactions is as follows:
**Disposals**
2021
2020
2019
2018
2017
£
£
£
£
£
Proceeds
3,700
-
-
-
-
Carrying value
(6,000)
-
-
-
-
Profit/(Loss) on
disposal
(2,300)
-
-
-|Total
£
**MARKET VALUE**
At 1 April 2020
56,375
Disposals
(6,000)
At 31 March 2021
50,375
**NET BOOK VALUE**
At 31 March 2021
50,375
At 31 March 2020
56,375
Information on Heritage assets is given in note 2 of the accounts.
During the last five years there has been no acquisition of heritage assets for which values are
available.
Two assets have been sold.
A five year financial summary of Heritage
Asset
transactions is as follows:
**Disposals**
2021
2020
2019
2018
2017
£
£
£
£
£
Proceeds
3,700
-
-
-
-
Carrying value
(6,000)
-
-
-
-
Profit/(Loss) on
disposal
(2,300)
-
-
-|Total
£
**MARKET VALUE**
At 1 April 2020
56,375
Disposals
(6,000)
At 31 March 2021
50,375
**NET BOOK VALUE**
At 31 March 2021
50,375
At 31 March 2020
56,375
Information on Heritage assets is given in note 2 of the accounts.
During the last five years there has been no acquisition of heritage assets for which values are
available.
Two assets have been sold.
A five year financial summary of Heritage
Asset
transactions is as follows:
**Disposals**
2021
2020
2019
2018
2017
£
£
£
£
£
Proceeds
3,700
-
-
-
-
Carrying value
(6,000)
-
-
-
-
Profit/(Loss) on
disposal
(2,300)
-
-
-|
|---|---|---|---|---|
|**Disposals**|2021
2020||2019|2018|
||£
£||£|£|
||||||
|Proceeds|3,700
-||-|-|
|Carrying value|(6,000)
-||-|-|
||||||
|Profit/(Loss) on
disposal|(2,300)
-||-|-|
||||||
## **16. FIXED ASSET INVESTMENTS**
|**FIXED ASSET INVESTMENTS**|||
|---|---|---|
|**Quoted Investments**|2021
2020||
||£
£||
|Market value at 1 April 2020|589,768
536,128||
|Additions|82,252
387,932||
|Disposals|(551,402)
(262,959)||
|Net realised investment (losses)/gains|145,156|(71,333)|
||||
|Market value of shares at 31 March 2021|265,774|589,768|
|Cash held on deposit|7,746|4,529|
||||
|Total value of investments at 31 March 2021|273,520|594,297|
||||
||||
|Quoted investments at fair value comprised:|2021|2020|
||£|£|
|Fixed interest securities|48,066|126,169|
|Equities|173,296|370,544|
|Property|12,669|20,860|
|Alternative assets|31743|72195|
|
Cash held within the investment portfolio|,
7,746|,
4,529|
||273,520|594,297|
||||
All investments are carried at their fair value. Investments in equities and fixed interest securities are all trade in quoted public markets, primarily the London Stock Exchange.
W W W . B R O U G H T O N H O U S E . C O M 5 3
5 2 A N N U A L R E P O R T & A C C O U N T S 2 0 21
## AUDITOR'S REPORT & FULL ACCOUNTS
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 31 M A R C H 2 0 21
|**17.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
2021
£
Prepayments and accrued income
488,907
**18.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
2021
£
Trade creditors
475,570
Other creditors
536,923
1,012,493
**19.**
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
2021
£
Other creditors
3,015,477
**20.**
**LOANS**
An analysis of the maturity of loans is given below:
2021
£
Amounts falling due between two and five years:
Other loans - 2-5 years
3,015,477||2020
£
26,481|
|---|---|---|
|||2020
£
344,337
201,864|
|||546,201|
|||2020
£
-|
|||2020
£
-|
## **21. LEASING AGREEMENTS**
Minimum lease payments under non-cancellable operating leases fall due as follows:
2021 2020 £ £ Within one year 6,799 26,695 Between one and five years 21,624 22,288 28,423 48,983
## **22. PROVISIONS FOR LIABILITIES**
2021 2020 £ £ Provisions - 100,000
## **23. MOVEMENT IN FUNDS**
|Net
movement
At 1.4.20
in funds
£
£
**Unrestricted funds**
General fund
33,983
(473,672)
Designated funds
7,969,387
(165,939)
8,003,370
(639,611)
**Restricted funds**
Restricted funds
21,930
20,734
Care village capital project fund
(438,675)
847,376
(416,745)
868,110
**TOTAL FUNDS**
7,586,625
228,499
Net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
**Unrestricted funds**
General fund
1,277,893
(1,751,565)
Designated funds
14,776
(322,948)
1,292,669
(2,074,513)
**Restricted funds**
Restricted funds
66,887
(46,153)
Care village capital project fund
952,983
(105,607)
Salford City Council Covid-19 funding
158,658
(158,658)
Armed Forces Covenant Fund Trust
125,000
(125,000)
1,303,528
(435,418)
**TOTAL FUNDS**
2,596,197
(2,509,931)
**Comparatives for movement in funds**
Net
movement
At 1.4.19
in funds
£
£
**Unrestricted funds**
General fund
263,727
(234,821)
Designated funds
4,863,161
(535,868)
5,126,888
(770,689)
**Restricted funds**
Restricted funds
38,927
(4,389)
Care village capital project fund
957,382
2,238,506
996,309
2,234,117
**TOTAL FUNDS**
6,123,197
1,463,428|Transfers
between
funds
£
779,235
(895,925)
(116,690)
33,339
83,351
116,690
-
Gains and
losses
£
-
142,233
142,233
-
-
-
-
-
142,233
Transfers
between
funds
£
5,077
3,642,094
3,647,171
(12,608)
(3,634,563)
(3,647,171)
-|At
31.3.21
£
339,546
6,907,523
7,247,069
76,003
492,052
568,055
7,815,124
Movement
in funds
£
(473,672)
(165,939)
(639,611)
20,734
847,376
-
-
868,110
228,499
At
31.3.20
£
33,983
7,969,387
8,003,370
21,930
(438,675)
(416,745)
7,586,625|
|---|---|---|
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AUDITOR'S REPORT & FULL ACCOUNTS
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 31 M A R C H 2 0 21
## **23. MOVEMENT IN FUNDS - continued**
## **24. CAPITAL COMMITMENTS**
2021 2020 £ £ - Contracted but not provided for in the financial statements 3,746,620
Comparative net movement in funds, included in the above are as follows:
## **25. RELATED PARTY DISCLOSURES**
|**Unrestricted funds**
General fund
Designated funds
**Restricted funds**
Restricted funds
Care village capital project fund
**TOTAL FUNDS**|Incoming
resources
£
1,545,323
21,002
1,566,325
80,110
2,248,636
2,328,746
3,895,071|Resources
expended
£
(1,780,144)
(485,581)
(2,265,725)
(84,499)
(10,130)
(94,629)
(2,360,354)|Gains and
losses
£
-
(71,289)
(71,289)
-
-
-
(71,289)|Movement
in funds
£
(234,821)
(535,868)
(770,689)
(4,389)
2,238,506
2,234,117
1,463,428|
|---|---|---|---|---|
## **Designated funds**
The General Fund is the ’free reserves’ after allowing for all designated funds.
During the year a £3m loan was obtained from the Greater Manchester Combined Authority (GMCA). Mr Enevoldson is the chief investment officer at the GMCA and a trustee at Broughton House - Veteran Care Village. The loan is due for repayment on 31 March 2023 and interest is charged at 3.5% above EC Reference Rate.
## **26. POST BALANCE SHEET EVENTS**
After the year end an additional £2m loan facility was secured from the GMCA to cover additional capital costs in respect of Phase 1A and 1B of the Veteran Care Village, to provide additional working capital and to roll-up interest payments until the Veteran Care Village is cash generative.
The additional loan facility matures on 31 March 2024 and interest is charged at 5% above the EU Reference Rate.
After the year end the Charity entered into a conditional contract to sell surplus land for the development of apartments. The sale itself is subject to the receiving of a satisfactory planning consent and the quantum of consideration is dependent on the number of apartments for which any consent is given.
The Trustees have agreed to set aside, wherever practicable, unrestricted legacy income into an unrestricted designated fund. This income is then used to increase the investment base and therefore investment income earned as a result. The long term aim of this is to ensure the Charity has a strong financial base where the investment income will make a significant contribution to ensure it is less reliant on donations.
A freehold property designated fund was established in 2018 in order to separate the cost of the land and buildings from the liquid general funds.
|**Designated fund**|**At 1.4.20**|**Movement**
**Transfers**
**At 31.3.21**|**Movement**
**Transfers**
**At 31.3.21**|**Movement**
**Transfers**
**At 31.3.21**|
|---|---|---|---|---|
|Investment fund|594,297|149,223
(470,000)
273,520|||
|Capital project designated fund|6,439,978|-
(4,819,236)
,1,620,742|||
|Freehold property fund|878,737|(312,862)
4,397,011
4,962,886|||
|Museum collection|56,375|(2,300)
(3,700)
50,375|||
||||||
||7,969,387|(165,939)
(895,925)
6,907,523|||
||||||
## **Restricted funds**
Material restricted fund relates to:
- Amounts received towards the Veteran Care Village capital project. - A grant funding from Salford City Council Adult Social Care Infection Control Fund and Holiday Buyback fund.
- A grant funding from the Armed Forces Covenant Fund Trust Covid-19 Impact Programme.
## **Transfers between funds**
As the restricted purpose has now been satisfied, £2,916,648 has been transferred to both unrestricted and designated funds from restricted funds, reflecting the capital project costs now within tangible fixed assets.
£3,000,000 GMCA loan received into the restricted fund bank account during the year has been transferred to designated funds as it will be settled out of future general funds surpluses.
£470,000 of cash was also transferred out of the designated investment funds to the general bank account.
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## AUDITOR'S REPORT & FULL ACCOUNTS
D E T A I L E D S T A T E M E N T O F F I N A N C I A L A C T I V I T I E S F O R T H E Y E A R E N D E D 31 M A R C H 2 0 21
|**INCOME**
**Donations and legacies**
Service charities
Donations
Legacies
Fundraising income
Support hub grant
Government grants
**Bar income**
Bar income
**Investment income**
Dividends received
**Charitable activities**
Fees
**Total incoming resources**
**EXPENDITURE**
**Raising donations and legacies**
Wages
Appeals
**Investment management costs**
Investment advice
**Charitable activities**
Wages and agency costs
Residential costs
Miscellaneous costs
Food costs
Medical costs
Maintenance costs
Support hub costs
Cleaning costs
Training costs
Depreciation of tangible fixed assets
Loss on sale of tangible fixed assets
Loss on sale of heritage asset
**Bar expenditure**
Expenses
**Support costs**
**Support costs**
Wages
Carried forward|2021
£
180,473
1,321,699
1,000
777
22,137
188,038
1,714,124
-
14,776
867,297
2,596,197
91,170
30,362
121,532
7,786
1,271,910
136,885
130,758
54,259
43,970
24,729
4,655
46,459
8,716
129,069
37,768
2,300
1,891,478
-
106,729
106,729|2020
£
137,382
2,423,086
287,088
45,018
68,000
-|
|---|---|---|
|||2,960,574
1,426
21,002
912,069|
|||3,895,071
81,019
25,136|
|||106,155
8,108
1,177,693
131,437
20,465
46,952
24,125
10,419
1,399
31,520
9,878
9,818
-
-|
|||1,463,706
1,222
124,381
124,381|
|**Support costs**
Brought forward
IT and computer costs
Legal and professional fees
Provision for losses
Impairment losses
**Governance costs**
Auditors’ remuneration
Trustees expenses
Total resources expended
**Net income before gains and losses**
**Realised recognised gains and losses**
Realised gains/(losses) on fixed asset
investments
**Net income**|2021
£
106,729
12,767
118,614
-
238,737
476,847
12,288
-
12,288
2,509,931
86,266
142,233
228,499|2020
£
124,381
13,249
51,003
100,000
477,473
766,106
14,296
761
15,057
2,360,354
1,534,717
(71,289)
1,463,428|
|---|---|---|
W W W . B R O U G H T O N H O U S E . C O M 5 9
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when you go home tell them of us and say–
for your tomorrow, we gave our today
Park Lane, Salford. M7 4JD 0161 740 2737 www.broughtonhouse.com @broughtonhouse
The Charity is registered with the Charity Commission under charity number 1155225. All assets and land were transferred from the former Unincorporated Charity (number 227864) to the new Incorporated Charity (number 1155225) on 1 April 2014.