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2023-12-31-accounts

REGISTERED COMPANY NUMBER: 08917492 (England and Wales) REGISTERED CHARITY NUMBER: 1156022

Report of the Trustees and

Audited Financial Statements for the Year Ended 31 December 2023

for

New Forest Care Homes Ltd

Town & Forest Chartered Accountants & Statutory Auditors First Floor, New Barnes Mill Cottonmill Lane St Albans AL1 2HA

New Forest Care Homes Ltd

Contents of the Financial Statements for the Year Ended 31 December 2023

Page
Report of the Trustees 1 to 6
Report of the Independent Auditors 7 to 9
Statement of Financial Activities 10
Statement of Financial Position 11
Statement of Cash Flows 12
Notes to the Statement of Cash Flows 13
Notes to the Financial Statements 14 to 20
Detailed Statement of Financial Activities 21 to 22

New Forest Care Homes Ltd

Report of the Trustees for the Year Ended 31 December 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2023. 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 objects of the Charity are, for the public benefit, to provide housing, accommodation and assistance, and associated facilities and amenities to help house elderly people and to relieve their suffering.

The trustees continue to have regard to the guidance issued by the Charity Commission on public benefit. The Charity owns and operates a 40-bed residential care home in New Milton. The Charity meets its public benefit obligations by having a policy that we accommodate residents whose places are funded sometimes by the local authority, which pays less than the rate set by the trustees, as well as those who pay the full fee privately.

Residents' independence and participation is actively promoted. We have a comprehensive and varied programme of regular activities for our residents provided by our staff and we also welcome external activity providers and entertainers to the home. We also provide external trips out and visits to local attractions including, for example, outings to the New Forest, garden centres, the nearby seaside and shopping trips. Similarly, we hold open days and other events which include invitations to the wider community. We also welcome supervised visits from our volunteers, who regularly come in to socialise with the residents and to help support activities.

We continued to hold regular meetings with residents (with families and Trustees also invited) which are attended by the CEO, Registered Manager and other senior staff. These meetings give residents an opportunity to express their views on how the Home is run and to raise any issues that may be of concern. Similarly, we always encourage visits from friends and family, who can be provided with accommodation and meals if required. Again, we welcome all their views as valuable feedback in our quest to continually improve services even further.

Page 1

New Forest Care Homes Ltd

Report of the Trustees

for the Year Ended 31 December 2023

ACHIEVEMENT AND PERFORMANCE

This year has again been one of steady and positive progress which ended with recognition of the leadership of our past Chair of our Board of Trustees, Margaret Richens, who joined our Board 10 years ago but who took a very well-deserved retirement from her position of Chair in November 2023. Her time and dedication towards the governance of Quaker House was considerable and much appreciated by all Trustees.

The Trustees implemented several changes in our management team and how it was structured during 2023 to further improve the quality of care for our residents. As a result, we passionately believe that such encouraging and positive developments have made Quaker House an even happier, settled and well managed place to live and that the difficulties we faced during the Covid-19 lock downs are now well and truly behind us.

During 2023 we promoted our Operations Manager to become our Chief Executive Officer. This post is responsible for implementing the continuous improvements agreed by the Trustees, and he is strongly supported in this by our Registered Manager and our Deputy Manager, and other heads of departments in a newly restructured management team. The Trustees have entrusted this management team with greater responsibility in the daily operation of our service yet balanced against greater accountability and performance reporting in achieving agreed outcomes.

The Trustees were very pleased that confirmation of the above progress was also independently confirmed by our Care Homes Regulator, the Care Quality Commission (CQC).

The CQC inspectors visited us last summer and concluded that Quaker House deserved to be rated Good in all aspects of the services they reviewed, and that the Home was particularly well led and good at keeping our residents safe and well cared for. The CQC inspection report gave unambiguous evidence and feedback that highlighted some examples of exceptional practice. In their report they noted "There was a friendly atmosphere in the home and staff supported people in a kind and caring way that took account of their individual needs and preferences. People and their families were supported to express their views and be involved in making decisions about their care and support". The Trustees very much thank all our excellent staff for achieving such good standards of care.

The Trustees regard our staff as being the key to a successful service and we recognise that it is vitally important that we recruit, train and retain the best staff that we can in what is a competitive employment market. Despite nationally reported staff shortages in the care sector generally, Quaker House has mostly avoided such problems and we have retained a settled, caring staff group with limited reliance on outside agency staff.

As in previous years, the Trustees have sought to balance our rising costs with a fair and transparent resident fee increase policy. Many of our staff have enjoyed almost a 10% wage increase due to statutory increases in the National Living Wage and these costs (which comprise almost 75% of our total costs) have had to be met together with additional inflation of our other key costs such as gas, electricity and fresh food. Despite this, the Trustees have managed to sustain a consistent and competitive fee increase which has maintained progress with our overall occupancy. Trustees are also keen to ensure that as a Registered Charity, unlike most privately owned care homes, any financial surplus we generate is re-invested back into further service improvements.

Finally, we have introduced further, innovative and more efficient ways to maintain our services and improve our building at the same quality but with reduced overheads to further trim unnecessary costs. These changes left us in a strong position financially as we ended 2023, putting us at an annual operating surplus of £69,167.

Page 2

New Forest Care Homes Ltd

Report of the Trustees

for the Year Ended 31 December 2023

FINANCIAL REVIEW

The last year produced a trading profit of £69,167. Whilst this is less than achieved in 2022 (a reduction of 56% from last year's surplus of £158,042) this was not entirely unexpected given the impact of higher than usual inflation in our key costs of labour, utilities and food, coupled with an occupancy level which fell slightly below our projected budget. The previous year had also benefited from over £20,000 of Government support grants during the Covid 19 difficulties which no longer applied in 2023. The Trustee's also agreed to invest more in a strengthened management structure which it believes has helped deliver the improved Achievements and Performance and CQC reports described in the paragraphs above. Whilst never being complacent, we believe these improvements provide a solid foundation for improving our occupancy in the future. Like most of the care home sector we too have witnessed occupancy levels which remained below those enjoyed before the Covid 19 pandemic, the shadow of which appeared to continue to impact on our level of enquiries. Given this, the Trustees plan to focus more on the marketing and 'branding' of our care home in the coming budget for the year ahead.

Looking back in more detail, the preparation of our budget for 2023 proved once again to be challenging not because of any direct pandemic concerns, but more about a cost of living crisis with the news that we were on course for higher levels of inflation resulting in increased costs for the main aspects of our business such as wages (including a 10% increase in the National Living Wage) food, heating and electricity not helped by an escalation of the conflict with the war in Ukraine. Despite these concerns, the board agreed to restrict our level of fee increase well below the inflation forecast as we were confident that Quaker House was in a much stronger position, under a new management structure, to build on our success. Despite these pressures a positive performance in 2023 was achieved, primarily based on our ability to maintain Quaker House as being the ideal 'home from home' style of professional care without any need to tap into our reserves.

Our income increased by 6.5% (2022 increased by 19.3% following recovery from Covid 19 lockdowns) as we again agreed to a consistent (8%) resident fee increase, albeit our total income was reduced by a lower than forecast occupancy. Our expenditure increased by 14 % (2022 increased by 1.1%), which was mostly caused by staffing costs increasing by 21% in part due to the upgrading of our management structure and increased costs of agency staff (an additional 10%). Food supplies provided the biggest surprise as they increased to levels not allocated in the original budget by 54%.

Once again, because we are a charity and as part of our constitution, we make a charitable contribution by allowing for up to five local authority residents from Hampshire County Council at a reduced rate. Typically, an average of £200pw is set against our full fee rate depending on the category of care required. Our policy is to net such charitable contributions against the room fee income in our accounts. Average room occupancy during 2023 was 74.7% compared with 74.1% in 2022. Our short stay convalescence and respite service continues to be popular and achieves a good conversion rate into full time residencies.

The company's cash reserves policy is designed to keep sufficient "free cash" in its bank accounts to cover approximately six months' operating cash requirement plus three years' estimated expenditure on planned maintenance and improvements. "Free cash" comprises all cash excluding amounts representing residents' deposits and amounts relating to restricted reserves that are intended to be spent more than twelve months from the balance sheet date. This requirement is equivalent to about £775,332 (2022: £727,000). However, the calculated "free cash" reserve figure is £773,887 (2022: £436,854), which gives a shortfall in cash reserves of only £1,455 (2022: £290,109). At this level, the Board considers that the Charity can continue to function in the next 12 months whilst it rebuilds its occupancy rate and reduces costs where possible whilst maintaining the level of care and safety consistent with five 'Good' scores under the CQC 'Key Lines of Enquiries'. We are of course continually monitoring the situation. We have benchmarked our fees, both current and the new ones for 2023/24, to ensure that we are in line with the market in which we operate. The Trustees are of the opinion that the market value of the freehold property owned by the Charity is greater in value than the net book value as stated in the balance sheet and thus more in line with property price increases that have been experienced during the year locally.

Page 3

New Forest Care Homes Ltd

Report of the Trustees

for the Year Ended 31 December 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The Charity is a company limited by guarantee and does not have share capital. Its governing document is the Articles of Association. The Trustees set the strategic direction and policies of the Charity and delegate the implementation of their decisions and day-to-day management to the CEO and the Registered Manager, the Deputy Manager and other senior members of staff. The voluntary Board of Trustees met every month plus other occasional times to help, for example, prepare the budget.

During 2023 we strengthened our Board with a new appointment to five Trustees with a wide range of professional backgrounds although as reported above, the long-standing Chair announced her planned retirement towards the end of the year. The remaining Trustees agreed to rotate the Chairperson role for an interim period and to each take a specialist 'portfolio' of service to focus on including Finance; Care; Building and Estate, and Resident Wellbeing. There is a formal process for recruiting new Trustees. This includes an informal meeting with the candidate attended by the Chair and another trustee and inviting the candidate to attend a Board meeting as an observer. New trustees are issued with a welcome pack of documentation and meet with the Management Team to further help progress their induction. Trustees are also checked, registered and certified under the Disclosure and Barring Service and normally retire by rotation at every third annual review meeting but may stand to be re-elected. However, they may serve for no more than three contiguous 3-year terms of office, other than in exceptional circumstances.

The risks the Charity faces are reviewed by the Board annually, and systems and procedures have been established to mitigate them. The Home is registered with, and regulated by, the CQC under the Health and Social Care Act 2008.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 08917492 (England and Wales)

Registered Charity number 1156022

Registered office

Quaker House 40 Barton Court Road New Milton Hampshire BH25 6NR

Trustees

M Richens (resigned 1.3.24) N Holmes E Kemp (resigned 1.3.24) J Masters D Barker (appointed 28.2.23) A Bokota (appointed 13.8.24) B Henry (appointed 10.1.24 and resigned on 2.9.24)

Senior Statutory Auditor

Zara Dunster FCA

Auditors

Town & Forest Chartered Accountants & Statutory Auditors First Floor, New Barnes Mill Cottonmill Lane St Albans AL1 2HA

Page 4

New Forest Care Homes Ltd

Report of the Trustees

for the Year Ended 31 December 2023

REFERENCE AND ADMINISTRATIVE DETAILS Solicitors

Bates Wells Braithwaite 10 Queen Street Place London ECRU 1BE

CHANGE OF NAME

The charitable company passed a special resolution on 13 August 2024 changing its name from New Forest Quaker Care Home to New Forest Care Homes Ltd. This was officially changed at Companies House and the Charities Commission on the 2 September 2024.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of New Forest Care Homes Ltd for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

In so far as the trustees are aware:

Internal controls over all forms of commitment and expenditure continues to be refined to improve efficiency. Processes are in place to ensure that performance is monitored and appropriate management information is prepared and regularly reviewed by both the executive management and the Trustees. The systems of internal controls are designed to provide reasonable but not absolute assurance against material mis-statement or loss. They include:

AUDITORS

The auditors, Town & Forest, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Page 5

New Forest Care Horne5 Ltd for the Year Ended 31 Dotomber 2023 Tbi8 r¢port has been prepared in accordance with the special provislons Df Part 15 of the Companies Act 2006 relating to small ¢ompani¢s. Approved by order of Ihe board of trustees on........... .....,.. . and sigThed on its behalf by.. J Masters- Trustee Page 6

Report of the Independent Auditors to the Members of New Forest Care Homes Ltd

Opinion

We have audited the financial statements of New Forest Care Homes Ltd (the 'charitable company') for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company'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.

Opinions on other matters prescribed by the Companies Act 2006

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

Page 7

Report of the Independent Auditors to the Members of New Forest Care Homes Ltd

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the 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 charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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:

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

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to the Companies Act 2006, FRS 102 and Charities Act 2011.

We assessed the risks of material misstatement in respect of fraud as follows: we made full enquiries with management and

those charged with governance. As part of our fraud discussions we discussed particular areas we believed to be susceptible to misstatement. Also during our audit we paid particular attention to looking for any related party transactions, however there were no related party transactions in this entity.

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.

Page 8

Report of the Independent Auditors to the Members of New Forest Care Homes Ltd

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Zara Dunster FCA (Senior Statutory Auditor) for and on behalf of Town & Forest Chartered Accountants & Statutory Auditors First Floor, New Barnes Mill Cottonmill Lane St Albans AL1 2HA

18 September 2024 Date: .............................................

Page 9

New Forest Care Homes Ltd

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31 December 2023

Notes
INCOME AND ENDOWMENTS FROM
Charitable activities
4
Grant Income
Other trading activities
2
Investment income
3
Total
EXPENDITURE ON
Charitable activities
5
Charitiable Costs
Governance
Support Costs
Other
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 31.12.23
Unrestricted
funds
£
-
1,550,664
22,408
1,573,072
1,400,157
5,040
82,583
16,125
1,503,905
69,167
2,479,367
2,548,534		 31.12.22
Total
funds
£
20,391
1,443,089
13,841
1,477,321
1,189,456
4,920
114,344
10,559
1,319,279
158,042
2,321,325
2,479,367

The notes form part of these financial statements

Page 10

New Fore AreH me ststejnent of Fin*ntixl P051tlo 31 December 2023 31.12.23 u1￿¢S￿¢ted runds 31.12,29 Total rund5 Notes FIXED ASSETS Tangible asseis 10 l.918.583 1.952,447 CURRENT ASSETS Stock8 Debtors Casli at bank and in hand 3.689 60,918 837 782 3,689 24,451 730 242 902.389 758.382 CREDITORS Amounts falling due within onc year 13 1271,652) (226,581) NET CURREIYT ASSETS 630 737 531.801 TOTAL ASSFTS LESS CURRENT LIABILII'ILS 2,549,320 2,484,248 CREDITORS Amounts fallin8 due gfter more Ihgn one year 14 (7861 14,8811 NET ASSETS 2 548 534 2 479 167 FUNDS Unrestricied funds 15 2 548 534 2 479 367 TOTAL FUNDS 2 548 534 2 479 367 Th¢¥¢ finantsial st41em¥ni¥ hav¥ be¢n prepHred in accoYdan¢e ivith the provisions applicable io ¢haritsbl¢ comp411ie5 subject to the small companies regim¢. Thc fj nci slalcinuils wcrc approvcd by thc Bi)aTd of Tru5te¢5 and Buthorised for rssue on + . and were 8ign¢d on its beh¥lf by.. J Masters TNstee The notes form part of thesE f￿ancial statements Page 11

New Forest Care Homes Ltd

Statement of Cash Flows
for the Year Ended 31 December 2023
31.12.23
Notes
£
Cash flows from operating activities
Cash generated from operations
1
144,709
Net cash provided by operating activities
144,709
Cash flows from investing activities
Purchase of tangible fixed assets
(47,052)
Interest received
9,883
Net cash used in investing activities
(37,169)
Cash flows from financing activities
Capital repayments in year
-
Net cash provided by/(used in) financing activities
-
Change in cash and cash equivalents in
the reporting period
107,540
Cash and cash equivalents at the
beginning of the reporting period
730,242
Cash and cash equivalents at the end of
the reporting period
837,782		 31.12.22
£
252,669
252,669
(2,435)
1,841
(594)
(2,548)
(2,548)
249,527
480,715
730,242

The notes form part of these financial statements

Page 12

New Forest Care Homes Ltd

Notes to the Statement of Cash Flows for the Year Ended 31 December 2023

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Loss on disposal of fixed assets
Interest received
(Increase)/decrease in debtors
Increase in creditors
Net cash provided by operations		 31.12.23
£
69,167
80,916
-
(9,883)
(36,467)
40,976
144,709		 31.12.22
£
158,042
83,070
1,134
(1,841)
8,823
3,441
252,669

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£ £ £
Net cash
Cash at bank and in hand 730,242 107,540 837,782
730,242 107,540 837,782
Total 730,242 107,540 837,782

The notes form part of these financial statements

Page 13

New Forest Care Homes Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention and in accordance with the accounting policies set out below.

The financial statements have been prepared in sterling which is the functional currency of the charity.

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: Donations are accounted for as they are received.

Legacies: Pecuniary legacies are accounted for as they are received. Residuary legacies are accounted for at the date of entitlement.

Local Authority Fees are accounted for at the date the invoice is issued in accordance with the terms and conditions prevailing with the local authority.

Investment income is accounted for once the income has been credited to the bank account.

Grant income is accounted for in an appropriate manner that matches with the expenditure towards which it is intended to contribute. Grants for immediate financial support or to cover costs already incurred are recognised immediately in the statement of financial activities. All grant income is recognised when all conditions for receipt have been complied with.

Expenditure

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.

Redundancy and termination payments

Termination payments are payable when employment is terminated before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these payments. The charity recognises termination payments when it is demonstrably committed to either (i) terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or (ii) providing termination benefits as a result of an offer made to encourage voluntary redundancy.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold Property - 2% on cost
Fixtures and Fittings - 10% straight line
Long Life Assets - 5% on cost
Fire Prevention Equipment - 10% on cost
Computer Equipment - 20% on cost

continued...

Page 14

New Forest Care Homes Ltd

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

1. ACCOUNTING POLICIES - continued

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation 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.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Provisions and accruals

Provisions are recognised when there is a present legal or constructive obligation as a result of past events and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Trade debtors

Trade debtors are carried at original net invoice amount less an estimate for doubtful debtors. Bad debts are written off when identified. Specific provisions are made against debts whose recovery is considered doubtful.

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 period to which they relate.

Fixtures and fittings

Items (or projects) costing less than £3,000 are written off against income during the year of expenditure, items with a life of less than three years are also written off against income.

2. OTHER TRADING ACTIVITIES

3.

Room fees
Sundry income
INVESTMENT INCOME
Rent - 38B Barton Court Road
Deposit account interest		 31.12.23
£
1,550,727
(63)
1,550,664
31.12.23
£
12,525
9,883
22,408		 31.12.22
£
1,443,006
83
1,443,089
31.12.22
£
12,000
1,841
13,841

Page 15

continued...

New Forest Care Homes Ltd

Notes to the Financial Statements- continued
for the Year Ended 31 December 2023
4.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Grants
Grant Income
Grants received, included in the above, are as follows:
Grants Received
5.
CHARITABLE ACTIVITIES COSTS
Direct
Costs
£
Charitiable Costs
1,400,157
Governance
-
Support Costs
-
1,400,157
6.
SUPPORT COSTS
Other
£
Governance
-
Support Costs
82,583
82,583
7.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Depreciation - owned assets
Depreciation - assets on hire purchase contracts and finance leases
Hire of plant and machinery
Deficit on disposal of fixed assets		 31.12.23
£
-
31.12.23
£
-
Support
costs (see
note 6)
£
-
5,040
82,583
87,623
Governance
costs
£
5,040
-
5,040
31.12.23
£
5,040
80,916
-
16,125
-		 31.12.22
£
20,391
31.12.22
£
20,391
Totals
£
1,400,157
5,040
82,583
1,487,780
Totals
£
5,040
82,583
87,623
31.12.22
£
4,920
81,369
1,701
10,559
1,134

Page 16

continued...

New Forest Care Homes Ltd

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022.

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 31.12.23
£
825,400
65,148
38,413
928,961		 31.12.22
£
669,758
58,866
37,385
766,009

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

31.12.23 31.12.22
Full and Part Time 45 34
No employees received emoluments in excess of £60,000.

10. TANGIBLE FIXED ASSETS

COST
At 1 January 2023
Additions
At 31 December 2023
DEPRECIATION
At 1 January 2023
Charge for year
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022		 Freehold
Property
£
2,352,958
-
2,352,958
597,789
45,620
643,409
1,709,549
1,755,169		 Fixtures
and
Fittings
£
263,903
45,087
308,990
137,536
22,997
160,533
148,457
126,367		 Long Life
Assets
£
159,879
-
159,879
102,559
7,183
109,742
50,137
57,320

continued...

Page 17

New Forest Care Homes Ltd

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

10. TANGIBLE FIXED ASSETS - continued

COST
At 1 January 2023
Additions
At 31 December 2023
DEPRECIATION
At 1 January 2023
Charge for year
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022		 Fire
Prevention
Equipment
£
101,417
-
101,417
98,065
1,412
99,477
1,940
3,352		 Computer
Equipment
£
23,804
1,965
25,769
13,565
3,704
17,269
8,500
10,239		 Totals
£
2,901,961
47,052
2,949,013
949,514
80,916
1,030,430
1,918,583
1,952,447

Included in cost or valuation of land and buildings is freehold land of £193,875 (2022 - £193,875) which is not depreciated.

Freehold Property cost consists of Quaker House £2,024,558 and 38b Barton Road £328,400.

11. STOCKS

11. STOCKS
31.12.23 31.12.22
£ £
Stocks 3,689 3,689
12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£ £
Trade debtors 32,863 14,597
Other debtors 8,533 2,877
Accrued income 3,122 -
Prepayments 16,400 6,977
60,918 24,451

continued...

Page 18

New Forest Care Homes Ltd

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Social security and other taxes
Other creditors
Pension Fund deficit
Deferred income
Accrued expenses
14.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE
Pension Fund deficit
15.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
TOTAL FUNDS		 31.12.23
£
45,792
29,738
75,747
4,875
38,306
77,194
271,652
THAN ONE YEAR
31.12.23
£
786
Net
movement
At 1.1.23
in funds
£
£
2,479,367
69,167
2,479,367
69,167
Incoming
Resources
resources
expended
£
£
1,573,072
(1,503,905)
1,573,072
(1,503,905)
Net
movement
At 1.1.22
in funds
£
£
2,321,325
158,042
2,321,325
158,042		 31.12.22
£
44,789
24,233
71,929
9,549
12,684
63,397
226,581
31.12.22
£
4,881
At
31.12.23
£
2,548,534
2,548,534
Movement
in funds
£
69,167
69,167
At
31.12.22
£
2,479,367
2,479,367

continued...

Page 19

New Forest Care Homes Ltd

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

15. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
1,477,321
1,477,321		 Resources
expended
£
(1,319,279)
(1,319,279)		 Movement
in funds
£
158,042
158,042

16. RELATED PARTY DISCLOSURES

There is an outstanding loan made to the CEO, Andrew Harrison, of £4,500.00 (2022: £nil) at the year end. This is included in the other debtors in note 12. The loan is interest free and recoverable on demand.

17. PENSION FUND DEFICIT

The Charity and its employees used to contribute to The Pensions Trust Growth Plan Series 3, a defined benefit scheme which is in deficit.

To eliminate the deficit The Pensions Trust has implemented a recovery plan which requires the Charity to make deficit contributions. The contributions were initially set at £6,629.40 pa for 10 years starting in April 2013 and increasing at 3% pa. In April 2016, the contributions were revised to £6,921.67 pa increasing at 3% pa and were extended to September 2025.

In April 2022, the contributions were revised to a fixed payment of £2,068.63 pa plus an expense amount of £2,312.22 pa increasing at 3% pa and was reduced to January 2025.

The amount of the deficit fluctuates according to the life expectancy of members and investment returns. It could increase or decrease. Our contributions might therefore change again.

Since September 2009 all contributing employees changed to The Pensions Trust Growth Plan Series 4, a defined contribution scheme, which has no future contingent liabilities on the Home.

If the Charity were to withdraw from the Plan, it would be immediately liable for its share of the deficit (calculated on a buy-out valuation basis) at the date of withdrawal. At 30 September 2022 the cost of withdrawal would have been £28,882.00. The Growth Plan is one scheme (albeit made up of four series) so, as long as the Charity has active members in either Series 3 or 4, the liability will not be triggered. Full provision has not been made for this amount as the Charity has not withdrawn from the Plan.

Page 20

New Forest Care Homes Ltd

INCOME AND ENDOWMENTS
Other trading activities
Room fees
Sundry income
Investment income
Rent - 38B Barton Court Road
Deposit account interest
Charitable activities
Grants
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Social security
Pensions
Agency staff
Food supplies
Light and heat
Insurance
Rates and water
Residents entertainment
Training
Cleaning
Garden expenses
Maintenance
Depreciation of tangible fixed assets
Loss on sale of tangible fixed assets
Other
Rental of equipment
Support costs
Other
Professional fees
Telephone
Postage and stationery
Carried forward		 Detailed Statement of Financial Activities
for the Year Ended 31 December 2023

 31.12.23
£
1,550,727
(63)
1,550,664
12,525
9,883
22,408
-
1,573,072
825,400
65,148
38,413
115,399
104,581
28,100
9,717
19,386
13,502
6,009
18,321
7,070
68,195
80,916
-
1,400,157
16,125
48,455
5,167
4,377
57,999		 31.12.22
£
1,443,006
83
1,443,089
12,000
1,841
13,841
20,391
1,477,321
669,758
58,866
37,385
104,515
67,747
27,394
8,531
17,010
12,262
2,699
17,232
6,918
74,935
83,070
1,134
1,189,456
10,559
81,107
7,037
5,236
93,380

This page does not form part of the statutory financial statements

Page 21

New Forest Care Homes Ltd

Other
Brought forward
Sundries
Registration fees
Bank charges
Advertising
Bad debts
Governance costs
Auditors' remuneration
Total resources expended
Net income		 Detailed Statement of Financial Activities
for the Year Ended 31 December 2023		 31.12.23
£
57,999
8,457
8,512
3,637
3,732
246
82,583
5,040
1,503,905
69,167		 31.12.22
£
93,380
12,704
7,320
3,521
10,534
(13,115)
114,344
4,920
1,319,279
158,042

This page does not form part of the statutory financial statements

Page 22