# Countess Mountbatten of Burma Romsey Memorial Trust
Charity Registration No. 1155615
Trustees' report and unaudited accounts
For the year ended 31 May 2022
## Countess Mountbatten of Burma Romsey Memorial Trust
## Legal and administrative information
|Trustees|Alan Hyde|
|---|---|
||Soraya Taylor (appointed 27 January 2022)|
||Richard Gutsell|
||Richard Jordan-Baker|
||Dr Frank MacDonald Akerman|
||The Rt Hon The Countess Mountbatten of Burma|
|Charity number|1155615|
|Principal address|Wilsons Solicitors LLP|
||Alexandra House|
||St. John's Street|
||Salisbury|
||SP1 2SB|
|Accountants|Evelyn Partners LLP|
||Accountants|
||Old Library Chambers|
||21 Chipper Lane|
||Salisbury|
||Wiltshire|
||SP1 1BG|
|Independent examiner|Simon Ellingham FCA|
||Fawcetts LLP|
||Windover House|
||St Ann Street|
||Salisbury|
||Wiltshire|
||SP1 2DR|
|Solicitors|Wilsons Solicitors LLP|
||Alexandra House|
||St. John's Street|
||Salisbury|
||SP1 2SB|
## Countess Mountbatten of Burma Romsey Memorial Trust
## Contents
||Page|
|---|---|
|Trustees' report|1 - 4|
|Independent examiner's report|5|
|Statement of fnancial activities|6|
|Balance sheet|7|
|Cash fow statement|8|
|Notes to the accounts|9 - 13|
## Countess Mountbatten of Burma Romsey Memorial Trust
## Trustees' report for the year ended 31 May 2022
The trustees present their report with the accounts of the charity for the year ended 31 May 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## Objectives and Activities
## Objectives and aims
The Trust was set up as a memorial to the late Edwina, 1st Countess Mountbatten of Burma on 22 March 1962. The land was donated by her husband, the 1st Earl Mountbatten of Burma. The funds for the buildings were grants and subscriptions from the public to "The Countess Mountbatten of Burma Romsey Memorial Fund" and the home to be known as "Edwina Mountbatten House".
Formally, the object was stated as: "for the public benefit to relieve elderly people who are in need, in particular but without limitation by providing housing, services or facilities calculated to relieve the needs of such persons at properties maintained by the CIO".
This object was achieved by operating a residential care home for older people from the local community and surrounding area. For reasons described later in this report, in the financial year June 2021 to May 2022, it became impossible to continue to meet the Trust’s object in this way. Whilst at the beginning of the year the aim was to provide first class care by the operation of a care home, the aim of the trust going forward is currently under consideration.
## Significant activities
At the beginning of the financial year the Trust managed a single property in Romsey, Edwina Mountbatten House, comprising: 23 single occupancy rooms for the financial year supported with full time carers; 4 independent living flats; and rents out 3 spaces in 2 garages.
The operation of the home had been and continued to be, seriously affected by the pandemic and the subsequent national financial environment. The significant increases in running costs combined with the difficulties in recruiting staff, caused the trustees to undertake a major review of the continued financial viability of the care home. On 12th May 2022 the trustees accepted that the operation of the home was no longer financially viable and therefore with great regret it should close, the building sold and that the charity would continue to operate utilising the proceeds of the sale.
The necessary consultation programme was undertaken and the home closed on 15th July 2022.
The trustees have complied with their duty to have due regard to the commission's public benefit guidance when exercising powers or duties to which the guidance is relevant.
## Financial review
## Financial position
The Trust’s financial position deteriorated during the year leading to a reduction of reserves to £554,363 (2021: £573,619). Income of £932,754 (2021: £774,336) was below expenditure of £952,010 (2021: £654,998), a net deficit of £19,256 (2021: surplus of £119,338). The Trust budgeted for a breakeven on 15 of 17 care rooms against a long-term maintenance outlook but this was not achieved, in spite of the position being mitigated by a generous donation, Covid grant supplements and the Government’s bounce back loan facility.
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## Countess Mountbatten of Burma Romsey Memorial Trust
## Trustees' report for the year ended 31 May 2022
## Principal risks and uncertainties
In the previous report for the year 20/21, the principal risk was identified as the ability to achieve optimum occupancy of the care rooms and in this financial year this risk proved to be a reality resulting in the closure of the home.
Looking forward to the future operation of the charity, as a result of the sale of the building, whilst it has yet to be decided how our funds will be dispersed, the charity is now in a stable financial position.
## Principal funding sources
The principal funding source in the year was residential fees received for use of the Trust's rooms and flats. Funding comprised a mix of resident self-funding, HCC part funded residents, and top up support from the Trust. A supplementary income was received by way of fundraising donations and bequests of £1,643 together with a grant of £50,000 in support of the redevelopment. The Trust has no investments, except interest income from banked cash reserves.
## Reserves policy
The Trust’s net current liabilitites for the period ended at £227,814 (2021: net current assets of £249,673). The significant reduction in this figure from the previous year led to the decision to close the home as reported. At the end of the financial period the three-month running costs were £270,000. A minor restricted fund stands at £3,708 which was maintained for the purpose of enhancing the enjoyment of the residents of the home.
## Plans for the future
At the time of writing the details of how the Trust will revise its object and then meet that object are still under discussion.
## Structure, Governance and Management
The Trust is run by unpaid trustees. The Trust is managed on a day-to-day basis by its officers, reporting to the Board, which approves major decisions. Currently the trustees hold regular meetings, 11 per year, in conjunction with the officers, to discuss the major issues affecting the Trust, as well as assessing the monthly performance. Decisions made at these meetings are enacted by the officers, who are responsible for the day to day running of the Trust.
A monthly budget and reporting process is firmly established. Trustee meetings benefit from a high level of attendance. The trustees were not satisfied the Charity was in a satisfactory position at the yearend because of the impending closure. However on the basis that the sale of the building would yield a significant sum, the on-going viability of the charity is not a concern.
## Governing document
The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) Accounting and Reporting by Charities issued in March 2005, the deed of trust and the Charities Act 1993, as amended by the Charities Act 2006.
The charity was originally controlled by its governing document, a deed of trust, as an unincorporated charity, formerly number 206009. As from the 21st May 2014, the Trust assets, liabilities, employees and operations were transferred to a charitable incorporated organisation (CIO), governed by its Foundation Constitution.
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## Countess Mountbatten of Burma Romsey Memorial Trust
## Trustees' report for the year ended 31 May 2022
## Trustees
The trustees serving the charity during the financial year were:
Alan Hyde Soraya Taylor (appointed 27 January 2022) Richard Gutsell Richard Jordan-Baker Dr Frank MacDonald Akerman The Rt Hon The Countess Mountbatten of Burma Ann Day (resigned 30 September 2022) Paul Edwards (resigned 6 May 2022) Ian Hibberd (resigned 13 December 2022)
Appointment of new trustees is governed by the constitution of the CIO. New trustees are informed of their obligations under Charity Law and including the recent Charity Governance Code; the Charity Commission Trustee welcome pack and trustee's responsibilities (CC3); and clearance through the Disclosure Barring Service.
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## Countess Mountbatten of Burma Romsey Memorial Trust
## Trustees' report for the year ended 31 May 2022
## Trustees' responsibilities
The trustees are responsible for preparing the trustees' report and the accounts in accordance with applicable law and regulations.
The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable regulations). Under that law the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these accounts, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records which are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
On behalf of the board of trustees
A P Hyde ......................................................................A P Hyde (Mar 29, 2023 14:17 GMT+1) Alan Hyde Trustee
Date: 29/03/2023
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## Countess Mountbatten Of Burma Romsey Memorial Trust
## Independent examiner's report to the trustees of Countess Mountbatten Of Burma Romsey Memorial Trust
I report to the trustees on my examination of the accounts of the Countess Mountbatten of Burma Romsey Memorial Trust for the year ended 31 May 2022 which comprise the statement of financial activities, the balance sheet, the cash flow statement and the notes to the accounts, including a summary of significant accounting policies.
## Respective responsibilities of trustees and examiner and basis of report
As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ("the Act").
I report in respect of my examination of the charity's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## Independent examiner's statement
Since your charity's gross income exceeded £250,000, your examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention In connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of my independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## Simon J L Ellingham
Simon J L Ellingham (Mar 29, 2023 14:23 GMT+1)................................................................... Simon Ellingham FCA Fawcetts LLP Chartered Accountants Windover House St Ann Street Salisbury Wiltshire SP1 2DR
> Date: 29/03/2023
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## Countess Mountbatten Of Burma Romsey Memorial Trust
## Statement of financial activities for the year ended 31 May 2022
|Unrestricted
Restricted
funds
funds
Notes
£
£
Income:
Donations and legacies
50,653
990
Charitable activities
Care provision
806,270
-
Electric for fats
614
-
Rental income
41,739
-
Interest
904
-
Covid-19 support
31,584
-
Total
931,764
990
Expenditure
Charitable activities
2
884,795
-
Support costs
3
67,215
Total expenditure
952,010
-
Net movement in funds
(20,246)
990
Reconciliation of funds
Total funds brought forward
570,901
2,718
Total funds carried forward
6
550,655
3,708|2022
Total
£
51,643
806,270
614
41,739
904
31,584
932,754
884,795
67,215
952,010
(19,256)
573,619
554,363|2021
Total
£
69,065
603,561
811
42,893
1,610
56,396|
|---|---|---|
|||774,336
607,906
47,092|
|||654,998|
|||119,338
454,281|
|||573,619|
The notes on pages 9 to 13 form part of the accounts.
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## Countess Mountbatten of Burma Romsey Memorial Trust
## Balance sheet as at 31 May 2022
|Notes
£
Fixed assets
Tangible fxed assets
7
Current assets
Debtors
8
2,596
Cash at bank and in hand
122,198
124,794
Current liabilities
Creditors
9
(352,608)
(352,608)
Net current (liabilities)/assets
Creditors falling due after one year
10
Total assets less liabilities
The funds of the charity
12
Restricted funds
Unrestricted funds
Total charity funds|2022
£
782,177
(227,814)
-
554,363
3,708
550,655
554,363|£
2,259
308,825
311,084
(61,411)
(61,411)|2021
£
541,864
249,673
(217,918)
573,619
2,718
570,901
573,619|
|---|---|---|---|
The accounts were approved by the board, authorised for issue and signed on their behalf by:
## A P Hyde
..............................A P Hyde (Mar 29, 2023 14:17 GMT+1) Alan Hyde Trustee
Date: 29/03/2023
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## Countess Mountbatten of Burma Romsey Memorial Trust
## Cash flow statement for the year ended 31 May 2022
||||2022|2021|
|---|---|---|---|---|
|||Notes|£|£|
|Cash fows from operating activities|||||
|Net cash fows from operating activities||13|(11,357)|138,150|
|Cash fows from investing activities|||||
|Purchase of tangible fxed assets|||(254,085)|(394,020)|
|Interest received|||904|1,610|
|Net cash used in investing activities|||(253,181)|(392,410)|
|Cash fows from fnancing activities|||||
|New loans in year|||102,000|220,000|
|Loan repayments in year|||(24,089)|(2,082)|
|Net cash provided by fnancing activities|||77,911|217,918|
|Decrease in cash|||(186,627)|(36,342)|
|Cash and cash equivalents at the beginning of the year|||308,825|345,167|
|Cash and cash equivalents at the end of the year|||122,198|308,825|
|Analysis of net funds|||||
||At 1 June 2021||Cash fows|At 31 May 2022|
|Unrestricted fund|306,107||(187,617)|118,490|
|Restricted fund|2,718||990|3,708|
||308,825||(186,627)|122,198|
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Countess Mountbatten of Burma Romsey Memorial Trust
Notes to the accounts for the year ended 31 May 2022
## 1 Accounting policies
## 1.1 General information
The Countess Mountbatten of Burma Romsey Memorial Trust was established by a trust deed dated 22 March 1962. As from the 21 May 2014, the Trust's assets, liabilities, employees and operations were transferred to a charitable incorporated organisation (CIO), governed by its Foundation Constitution. It is registered with the Charity Commission in England & Wales (No. 1155615). The address of the principal office is Wilsons Solicitors LLP, Alexandra House, St John's Street, Salisbury, SP1 2SB.
## 1.2 Basis of preparation
The accounts 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 2019).
The charity is a public benefit entity as defined by FRS 102.
The accounts have been prepared under the historical cost convention. The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value.
The accounts are prepared on a going concern basis; there are no material uncertainties about the charity's ability to continue as a going concern.
The charity's presentational currency is GBP and monetary amounts in these accounts are rounded to the nearest £1.
## 1.3 Income
All incoming resources are included in the statement of financial activities when the charity is legally entitled to the income, receipt is probable and the amount can be quantified with reasonable accuracy.
## 1.4 Expenditure
All expenditure is accounted for on an accruals basis and recognised where there is a legal or constructive obligation committing the trustees to the expenditure. Expenditure is included under expense categories that aggregate all costs. Where costs cannot be directly attributed to particular activities, they have been allocated on a basis consistent with the use of resources.
## 1.5 Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Freehold property - Nil - New development Nil and 20% straight line - Plant and machinery 20% straight line - Computer equipment 33% straight line
- 9 -
Countess Mountbatten of Burma Romsey Memorial Trust
## Notes to the accounts for the year ended 31 May 2022
## 1 Accounting policies
## (Continued)
## 1.6 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.
Further explanations of the nature and purpose of each fund is included in the notes to the accounts.
## 1.7 Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the year to which they relate.
## 2 Charitable activities costs
|Charitable activities costs|||
|---|---|---|
|Staf costs (note 5)
Rates and water
Insurance
Light and heat
Telephone
Postage and stationery
Sundries
Provisions
Software
Maintenance costs
Cleaning and contract services
Household and medical|2022
£
696,844
6,610
5,860
37,544
1,360
7,647
3,761
43,513
2,903
24,313
13,511
40,929
884,795|2021
£
447,773
7,699
9,451
26,689
1,817
5,577
7,997
29,276
2,501
40,904
9,515
18,707|
|||607,906|
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## Countess Mountbatten of Burma Romsey Memorial Trust
## Notes to the accounts for the year ended 31 May 2022
## 3 Support costs
|Support costs|||
|---|---|---|
|Independent examiner's fee
Accountancy fees
Registration costs
Legal and professional fees
Training costs
Bookkeeping and secretarial
Bank charges and interest
Depreciation of tangible fxed assets|2022
£
1,440
7,770
3,742
6,523
13,701
9,660
10,607
13,772
67,215|2021
£
1,260
720
3,050
14,509
2,810
9,734
1,050
13,959|
|||47,092|
## 4 Trustees' remuneration and benefits
None of the trustees (or any persons connected with them) received any remuneration or were reimbursed for any expenses during the year (2021: none).
## 5 Staff costs
|Staf costs|||
|---|---|---|
|Wages and salaries
Social security costs
Other pension costs|2022
£
651,653
34,755
10,436
696,844|2021
£
416,387
23,746
7,640|
|||447,773|
The average monthly number of employees during the year was 30 (2021: 34).
## 6 Statement of funds
||Balance at|Incoming|Resourses|Balance at|
|---|---|---|---|---|
||1 June|resourses|expended|31 May|
||2021|||2022|
||£|£|£|£|
|Unrestricted funds|570,901|931,764|(952,010)|550,655|
|Restricted funds:|||||
|Comfort Fund|2,718|-|-|2,718|
|Staf Fund|-|990|-|990|
|Total funds|573,619|932,754|(952,010)|554,363|
The Comfort Fund is used for the purpose of enhancing the enjoyment of the residents of the home and the staff fund was created following donations of £990 received in the year following the request of the donor.
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Countess Mountbatten of Burma Romsey Memorial Trust
Notes to the accounts for the year ended 31 May 2022
## 7 Tangible Fixed Assets
|Freehold
property
New
development
Plant and
machinery
Computer
equipment
£
£
£
£
Cost
At 1 June 2021
165,472
355,749
66,409
5,602
Additions
-
250,869
-
3,216
At 31 May 2022
165,472
606,618
66,409
8,818
Depreciation
At 1 June 2021
25,930
-
19,836
5,602
Charge for the year
-
2,156
10,544
1,072
At 31 May 2022
25,930
2,156
30,380
6,674
Net Book Value
At 31 May 2022
139,542
604,462
36,029
2,144
At 31 May 2021
139,542
355,749
46,573
-|Total
£
593,232
254,085|
|---|---|
||847,317|
||51,368
13,772|
||65,140|
||782,177|
||541,864|
The property transferred on 21 May 2014 was at cost. The land and buildings form part of the Charity's main objects. The buildings are, however, covered for insurance purposes at a value of £3,000,000
## 8 Debtors: amount falling due within one year
|Debtors: amount falling due within one year||||
|---|---|---|---|
|Trade debtors
Prepayments and accrued income
Creditors: amounts falling due within one year
Trade creditors
Accrued expenses
Charity bank loan
Barclays bounce back loan||2022
£
796
1,800
2,596
2022
£
38,565
18,214
248,329
47,500
352,608|2021
£
2,259
-|
||||2,259|
||||2021
£
53,670
7,741
-
-|
||||61,411|
## 9 Creditors: amounts falling due within one year
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## Countess Mountbatten of Burma Romsey Memorial Trust
## Notes to the accounts for the year ended 31 May 2022
## 10 Creditors: amounts falling due after more than one year
|Charity Bank Loan
Barclays Bounce Back Loan|2022
£
-
-
-|2021
£
167,918
50,000
217,918|
|---|---|---|
## 11 Related party disclosures
During the year, the Charity paid £9,660 (2021: £9,734) to the wife of the trustee Cllr. I Hibberd for administration services.
The Charity paid £nil (2021: £18,246) to the Hon. Surveyor for survey and project managements services.
## 12 Analysis of net assets between funds
|Net current
Fixed
assets/
assets
(liabilities)
£
£
Restricted funds
-
3,708
Unrestricted funds
782,177
(231,522)
782,177
(227,814)
Net cash fows from operating activities
2022
£
Net movement in funds (as per the statement of fnancial activities)
(19,256)
Depreciation charges
13,772
Interest received
(904)
(Increase)/decrease in debtors
(337)
Decrease in creditors (excluding loans)
(4,632)
Net cash provided by operations
(11,357)|Fund
balance
£
3,708
550,655
554,363
2021
£
119,338
13,959
(1,610)
11,927
(5,464)
138,150|
|---|---|
## 13 Net cash flows from operating activities
## 14 Post balance sheet event
Following the year end, the trustees' made the decision to sell the care home and proceeds of £2,310,505 were received following the year end. The objects of the charity are being updated to reflect this.
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