## **JAMES HIRONS**
**(A company limited by Guarantee)**
**REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021**
Charity number: 1161904 Company number: 08966275
## **CONTENTS**
||**Page**|
|---|---|
|**Report of the Trustees**|**1**|
|**Independent Auditor’s Report**|**9**|
|**Consolidated Statement of Financial Activities**|**12**|
|**Consolidated Balance Sheet**|**13**|
|**Parent Charitable Company Balance Sheet**|**14**|
|**Consolidated Cash Flow Statement**|**15**|
|**Notes to the Consolidated Financial Statements**|**16**|
**JAMES HIRONS (A company limited by guarantee)**
## **REPORT OF THE TRUSTEES for the year ended 31 March 2021**
The Trustees of James Hirons are pleased to present their annual report and audited accounts for the year ended 31 March 2021 and confirm they comply with the requirements of the Companies Act 2006, the Charities Act 2011, the trust deed and the Charities SORP (FRS 102).
## **Reference and Administrative Information**
Charity Name James Hirons Charity registration number 1161904 Company registration number 08966275 Registered address 53 Lillington Road Leamington Spa Warwickshire CV32 6LD
**Trustees**
## **Chairman**
Mrs R Ruddick (Chairman from 1 June 2021) (appointed 14 July 2020) Mr D Owen (Chairman until 1 June 2021) Mrs J Perks (resigned 14 May 2020) Mr D Loudon Mr P Dillon Mrs M Stark Mr P Davies Mr A Givens Mr D Eccleston (appointed 12 May 2020)
**Clerk to the Trustees** Mrs E M Mallender
**Office Manager**
## **Home Managers**
Mr A Fairweather (Manager)
Mrs P Riley (Deputy Manager)
## **PROFESSIONAL ADVISERS**
Auditors Investment Manager
Cooper Parry Group Limited Park View One Central Boulevard Blythe Valley Business Park Solihull B90 8BG
Smith & Williamson 9 Colmore Row Birmingham B3 2BJ
1
**JAMES HIRONS (A company limited by guarantee)**
**REPORT OF THE TRUSTEES for the year ended 31 March 2021**
## **Reference and Administrative Information (continued)**
Bankers Handelsbanken 40 Holly Walk Leamington Spa CV32 4HY
2
**JAMES HIRONS (A company limited by guarantee)**
## **REPORT OF THE TRUSTEES for the year ended 31 March 2021**
The Trustees submit their annual report and the audited financial statements for the year ended 31 March 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the Charity.
The James Hirons Care Home is a voluntary organisation having charitable status, administered by a Board of Trustees to provide residential and convalescent accommodation mainly for the elderly. It was established with the endowment of the late James Hirons in 1953.
An elegant and spacious Edwardian building, the James Hirons Home today provides a warm and welcoming home for persons requiring long term or respite care. The Home is registered for twenty-three residents. The James Hirons Home is rated by the Quality Care Commission (CQC) as ‘GOOD’ both Overall and in all 5 Key Question Areas.
## **AIMS AND OBJECTIVES**
The Charity exists to provide accommodation, together with residential care, primarily for the elderly in Leamington Spa and the surrounding districts. Prospective residents are encouraged to enter the Home for a trial period before taking up residence, to ensure that it is suited to their needs. Respite care is also offered.
The Charity’s overall aims and objectives are:
- To provide a high level of care for mainly elderly people in a warm and friendly environment; to treat them with respect, and ensure their individual needs are catered for.
- To observe current requirements of health and safety and other regulations for residents and staff.
- To constantly upgrade the fabric of the Home and surrounding gardens.
The Trustees’ objective of providing a high level of care has been borne out by regular inspections of the Home by the CQC. When a 2019 Inspection highlighted a need for improvement, despite obstacles from the pandemic, the Trustees and Management undertook a series of rigorous approaches to ensure that the Home met all requirements. The Trustees commissioned an Independent Evaluation of the Home in 2021 to check on progress, with pleasing feedback. A full CQC Inspection was also undertaken in August 2021 and declared that James Hirons was ‘Good’. One quote from the CQCs latest Report: ‘People were treated equally and had their human rights and diversity respected. People enjoyed the company of staff and spent time getting to know them. Staff treated people kindly and promoted independence while respecting their right to privacy’.
The Trustees are responsible for monthly Provider Visits to the Home and now complete a Form that ensures feedback on all CQC Key Lines of Enquiry. The Trustees have also determined that a full Independent Evaluation of the Home will also be completed annually. Additional approaches to obtaining feedback from residents, their families and staff are also underway.
The Trustees confirm that, to the best of their knowledge and belief, they have complied with Section 4 of the Charities Act 2006 in respect to having due regard to Public Benefit Guidance published by the Charity Commission.
In addition to the James Hirons Home itself, for several years support has been provided for the distribution of supplies to local food banks run by the Trussell Trust. Financial support to the recent appointment of an Admiral Dementia Care Community Nurse has also been agreed.
3
**JAMES HIRONS (A company limited by guarantee)**
## **REPORT OF THE TRUSTEES for the year ended 31 March 2021**
## **COVID-19**
Trustees are very aware that the continuing pandemic throughout this reporting period has presented significant ongoing concerns, hardships, and risks for residents and for its staff. The Trustees and managing staff continue to comply stringently with all related Government directives. No residents caught COVID during this period and all permanent and agency staff have been fully vaccinated, and this is now a compulsory requirement of any newly appointed employees. Assisted by funding from Warwickshire County Council and the Government’s Infection Control Fund, a new and delightful Garden Room has been built in the grounds of the Home to assist with safe family visits, and this will also become a valuable addition for wider activities.
## **GOING CONCERN**
The Home has continued to function despite the challenges of the Coronavirus pandemic and whilst in the new financial year there has been a fall in income from occupancy, the Home is fortunate to have a substantial investment portfolio which generates significant income to supplement income from occupancy.
The pandemic clearly impacted on the Charity’s ability to admit new residents during the reporting year and the move towards ‘opening-up’ which began in Summer 2021 has been necessarily cautious. Sadly, a few residents have passed-away during the last eighteen months and overall resident numbers, therefore, did become unusually low, down to 14 at one point. However, three new residents have joined JH during late Summer 2021 and, despite the priority to achieve full occupancy as soon as possible, Trustees will continue to weigh this objective alongside the continuing need for caution and the protection of our current residents and staff, particularly as newer potential residents are increasingly assessed as requiring more significant mobility and cognitive support than might have been the case a few years ago. For this reason, and despite the potential, albeit hopefully temporary impact this may have on income from resident fees, the Trustees have and will continue to support the Home Manager’s judgement when balancing healthy occupancy levels targets with professional and clinical judgement about resident referrals, particularly in the context of the continuing pandemic.
The Trustees are confident that there are sufficient assets to finance day to day operations for the foreseeable future, being a period of twelve months after the date on which this Report and the Financial Statements are signed and, therefore, continue to adopt the going concern basis.
## **GOVERNANCE**
A Board of Trustees comprising of eight members during the year meets at least once every two months to administer the Charity. The Board is supported by a Clerk to the Board, a paid position.
A Home Manager (RN Dip H Ed. RMA), Deputy Home Manager and Office Manager are appointed by the Trustees to manage the day-to-day operations of the Charity, supervise the staff and ensure that all operational regulatory requirements are met. They liaise closely with the Trustees, and report to the full Committee of Trustees and sub-committees for advice, support and overall decisions.
Trustees (who are also the Directors of the company for the purposes of Company Law) are appointed for a term of three years. Consideration is given when recruiting new Trustees to preserving the balance of skills on the Board that are required for the running of the organisation. Prospective Trustees are drawn from the local community, and all are individuals who hold or held positions of responsibility and have relevant skills and knowledge.
Initial contact with prospective Trustees leads to an informal meeting with existing Trustees where they are given key basic information. On appointment, a full pack of information on the Charity is provided.
4
**JAMES HIRONS (A company limited by guarantee)**
## **REPORT OF THE TRUSTEES for the year ended 31 March 2021**
All new and established Trustees are encouraged to take advantage of training and development opportunities, mostly available through solicitor and accountancy / investment partners on Zoom.
A half day full Trustee Board Governance Training Event is scheduled to take place during the next few months and during the reporting year James Hirons augmented its training and learning opportunities for Trustees significantly through joining the National Care Forum (NCF). The NCF is a company limited by guarantee with no share capital and a not-for-profit ethos. It both represents its member care sector members and provides extensive up-to-date information on policy and guidance, training, net-working and support. All JH trustees receive weekly national updates and briefings and variously link with dedicated Forum Groups, including Finance and Governance, HR, Practice and Quality.
Day-to-day purchases and decisions are delegated to Management and up to £500 of extraordinary expenditure may be made without reference back to the Trustees.
In addition to meetings of the full Board, there are six active sub-committees: -
Development - Property Finance - Finance including investments Personnel - HR Risk Management - Internal controls, risk management and compliance systems of the Charity Service Improvement - Practice and Quality IT - Information Technology
A combination of Trustees and Management sit on these committees which all report to the main Board.
## **Arrangements for setting pay and remuneration, and staff retention**
Led by the Personnel Sub-Committee, Trustees review salaries and other benefits of key management personnel and other staff annually, taking account of relevant market data.
Staff retention at James Hirons is high but, as across the sector, the satisfactory recruitment of suitable new carers and senior carers continues to be a challenge. There is also a wish to become less reliant on agency staff. During the reporting year, therefore, the Personnel and Finance sub-Committees have reviewed Staff pay and Terms and Conditions of Employment and introduced the following for all permanent staff: a significant pay award of 5% (Low Pay Commission recommendation of 2.2%); ‘Death in Service’ Benefit; direct access to a BUPA Counselling Support Service; introduction of a discretionary Staff Welfare Fund. Rules governing sick pay are also currently under review. All these actions are aimed at recognising the dedication and hard work of our skilled staff, encouraging their retention, and offering an attractive new recruiting package.
## **RISK MANAGEMENT**
The Trustees have in place a specific Risk Management Committee to review the internal controls, risk management and compliance systems of the Charity and to implement risk management strategies. This involves identifying the types of risks the Charity faces, prioritising them in terms of potential impact and likelihood of occurrence and providing means of mitigating the risks. A review of the remit of this sub-committee will take place during this coming year.
## **PRINCIPAL RISKS AND UNCERTAINTIES**
The Charity takes an active approach to managing risk. Key risks are identified, rated and mitigation strategies devised using the Charity’s risk register. The Trustees review the risk register on an annual basis. Financial risks are stress tested to understand what level of financial management is required, what impact the risk will have and how severe the situation would have to become before the risk could no longer be managed.
5
**JAMES HIRONS**
**(A company limited by guarantee)**
## **REPORT OF THE TRUSTEES for the year ended 31 March 2021**
On the risk register the likelihood of all risks is then assessed, where likelihood and impact are each assessed on a scale of 1 (low) to 5 (high). For each risk the likelihood and impact scores are multiplied by each other to give a risk rating score between 1 and 25 where 5 is a risk of low priority and 25 is a fundamental risk. All risks scoring 15 or more are reported below.
In the 2020/21 financial year, the primary risks to the charity continue to be:
- a. Residential occupation. The pandemic. A reduction in overall demand for places. Any event causing damage to reputation.
- b. Retaining staff and market-difficulties in recruiting appropriate permanent staff.
- c. Income. Volatility of global stock markets and the potential adverse impact on capital values and investment
## **RESULTS**
## **The charity continues to be recognised as providing ‘good’ services to its residents by the recent CQC Inspection and an Independent professional Evaluation Report, and by Feedback received from residents and families.**
The Charity budgeted for a residential/respite occupancy rate of 90%, achieving 70.29%.
## **Key financials:**
|**Key financials:**|||
|---|---|---|
||**2021**|**2020**|
||**No.**|**No.**|
|Average number Permanent residents|17|22|
|Number of Respite stays|-|323|
The Government’s continued policy of care in the community has meant more people are staying in their own homes longer and the requirement for residential care is delayed or no longer appropriate. However, relaxation of the criteria laid down by CQC as regards to keeping a resident when they become more dependent continues to have a positive impact on occupancy.
It remains challenging to recruit staff of the right calibre to maintain the high standards that have been set in the Home.
||**2021**
|**2020**|
|---|---|---|
||**£**|**£**|
|Income from Charitable Activities|698,743|866,771|
|Investment Income|107,968|124,030|
|Total Income|806,711|990,801|
|Total Expenditure|989,611|902,353|
6
**JAMES HIRONS (A company limited by guarantee)**
## **REPORT OF THE TRUSTEES for the year ended 31 March 2021**
## **INVESTMENT POLICY**
The Charity continues to employ Smith & Williamson as investment manager to manage the charity’s investment portfolio on a discretionary basis. The charity has set out the following objectives for Smith & Williamson in its Statement of Investment Principles.
- The creation of a sufficient financial return to enable the Charity to carry out its purposes effectively and without interruption
- The maintenance and enhancement of the investment funds over the long term
- To obtain a reasonable balance between capital growth and income so that the Charity can meet future as well as current needs
- To maintain a low to medium risk profile
The Trustees’ policy is to invest in an appropriate mix of real assets i.e. equities, fixed interest securities, alternative assets and monetary assets. The Trustees recognise that the returns on equities, while expected to be greater over the longer term than those of fixed interest and monetary assets, are likely to be more volatile. Investment in a mix of asset classes should nevertheless provide to mitigate volatility for the Charity to achieve its objectives. The Trustees have asked Smith & Williamson to monitor market performance very closely and report frequently to the Charity to ensure that this volatility does not translate into capital erosion.
Valuations and reports are produced by Smith & Williamson on a quarterly basis to coincide with the Charity’s financial year end. Investment meetings are convened on a half yearly basis involving both the Finance committee and the Full Board of Trustees.
The Trustees have the power to invest in such investments as they see fit. Smith & Williamson, investment manager, continues to advise the Charity on its investments. The Board’s policy is to maximise income whilst preserving the real value of endowments.
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Portfolio value|4,917,819|4,012,155|
|Investment Income|107,968|124,030
|
|Geographical asset allocation:|%|%|
|U K Equities
|29|27|
|Overseas Equities|36|37|
|Alternative and Multi-Asset|16|17|
|Fixed interest|15|14|
|Cash
|4
|5|
7
**JAMES HIRONS (A company limited by guarantee)**
## **REPORT OF THE TRUSTEES for the year ended 31 March 2021**
## **INVESTMENT POLICY (continued)**
The investment portfolio is overseen by the Finance sub-committee, which meets the Charity’s advisor on a bi-annual basis. Investments are measured against the market as a whole. Included within the Statement of Financial Activities is a gain on revaluation of £923,695 compared to a loss of £376,449 in 2020.
The Charity has a policy of maintaining a level of surplus liquid funds in short-term deposits to meet liabilities as they arise and planned expenditure. The aim is to use investment income to meet larger repair bills and capital items as they arise and to support residents, whose funds may become depleted, rendering them unable to afford the full cost of their care. Whilst working towards its target of achieving break-even on its operations, the Home also uses its investment income to make good any shortfall.
## **RESERVES POLICY**
The Trustees have reviewed the reserves of the Charity and intend to maintain reserves in excess of six months expenditure. In the last 12 months expenditure totalled £989,611 and trustees confirm that reserves are at an adequate level to provide a buffer for interruptions to services, including periods where income generating activities may be suspended temporarily.
The Charity remains low geared with an annual income of £806,711 and a total balance sheet of £6,363,976. The Charity also maintains sufficient liquidity to make adjustment if required having £352,630 on cash deposit and £4,917,819 in equities or easily liquidated short-dated bonds.
Fixed asset investments are held at a substantial level to allow for reaction to any major changes in care for the elderly and to allow the flexibility to respond to any significant changes in the marketplace.
## **FUTURE PLANS**
The Trustees are continually examining ways of improving the quality of service and scope of care JH offers. Priorities for the next year include settling-in performance management approaches relating to monthly Trustee Provider Visits and Home Manager performance reporting and appraisal; enhanced marketing to recruit staff and residents; and a review of office and administration arrangements and related IT infrastructure.
In addition, a new initiative ‘Making Every Day a Day Worth Living’ is planned. Alongside current surveys and feedback questionnaires, Trustees and staff will be consulting with residents, families and staff about what could usefully be added to JH’s current ‘offer’ – from ‘extra mile’ to bigger ideas. The Trustees will then prioritise and action as many of these as possible over the coming year.
The Trustees have committed to supporting Dementia U.K. to help fund an Admiral nurse in Warwickshire. The appointment commenced in August 2021 and Trustees have agreed to contribute £20,000 per annum over the next two financial years.
8
**JAMES HIRONS (A company limited by guarantee)**
**REPORT OF THE TRUSTEES for the year ended 31 March 2021**
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The Trustees (who are also the Directors of James Hirons for the purposes of company law) are responsible for preparing the Annual 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 the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period.
In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles in the Charities SORP 2019 (FRS102);
- Make judgements and estimates that are reasonable and prudent;
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation; and
- State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS**
The Trustees who were in office on the date of approval of these financial statements have confirmed that, as far as they are aware:
- there is no relevant audit information of which the parent charitable company’s auditors are unaware; and
- the Trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Approved by the Trustees on 23 November 2021 and signed on their behalf by:
**R Ruddick – Trustee**
**D Loudon - Trustee**
9
**JAMES HIRONS**
**(A company limited by guarantee)**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF JAMES HIRONS**
## **Opinion**
We have audited the financial statements of James Hirons (“the parent charitable company”) and its subsidiary (together “the group”) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Consolidated Cash Flow Statement and the related notes. 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), including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31 March 2021, and of the group’s incoming resources and application of resources, including its income and expenditure, 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 Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and the parent 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 parent 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 Trustees’ Annual Report, other than the financial statements and our Auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial
10
**JAMES HIRONS (A company limited by guarantee)**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF JAMES HIRONS**
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Trustees’ Annual Report has been prepared in accordance with legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the Trustees’ Annual Report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the statement of trustees’ responsibilities, the directors 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 directors 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 group’s and the parent 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 directors either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
11
**JAMES HIRONS**
**(A company limited by guarantee)**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF JAMES HIRONS**
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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:
Our assessment focussed on key laws and regulations the parent charitable company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Charities Act 2011, Charities (Protection and Social Investment) Act 2016, taxation legislation, data protection, anti-bribery and employment legislation.
We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:
- obtaining an understanding of the legal and regulatory framework applicable to the parent charitable company and how the parent charitable company is complying with that framework, including agreement of financial statement disclosures to underlying documentation and other evidence;
- obtaining an understanding of the parent charitable company’s control environment and how the parent charitable company has applied relevant control procedures, through discussions with Trustees and other management and by performing walkthrough testing over key areas;
- obtaining an understanding of the parent charitable company’s risk assessment process, including the risk of fraud;
- reviewing meeting minutes of those charged with governance throughout the year;
- performing audit testing to address the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and
- obtaining sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
12
**JAMES HIRONS (A company limited by guarantee)**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF JAMES HIRONS**
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 Auditors' report.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
## **Use of our report**
This report is made solely to the parent charitable company’s members, as a body, in accordance with Chapter 3 Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Glen Bott FCA
Senior Statutory Auditor for and on behalf of:
## **Cooper Parry Group Limited**
Chartered Accountants and Statutory Auditor One Central Boulevard Blythe Valley Park Solihull West Midlands B90 8BG
Date:
13
**JAMES HIRONS (A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES incorporating Income and Expenditure**
## **For the year ended 31 March 2021**
|**Notes**
**Income and endowments**
**from:**
Charitable activities
3
Investments
4
**Total income and**
**endowments**
**Expenditure on:**
Raising funds
5
Charitable activities
6
**Total expenditure**
Net gain/(loss) on investments
9
Transfer between funds
**Net movement in funds for**
**the year**
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
13|**Unrestricted**
**Funds**
**£**
698,743
107,968
806,711
8,438
969,085
977,523
353,539
(37,307)
145,420
3,337,217
3,482,637|**Endowment**
**Funds**
**£**
-
-
-
12,088
-
12,088
570,156
37,307
595,375
2,285,964
2,881,339|**Total**
**2021**
**£**
698,743
107,968
806,711
20,526
969,085
989,611
923,695
-
740,795
5,623,181
6,363,976|**Total**
**2020**
**£**
866,771
124,030|
|---|---|---|---|---|
|||||990,801|
|||||19,658
882,695|
|||||902,353|
|||||(376,449)
-|
|||||(288,001)
5,911,182|
|||||5,623,181|
All income and expenditure derive from continuing activities.
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 18 to 30 form part of these financial statements.
14
**JAMES HIRONS (A company limited by guarantee)**
## **CONSOLIDATED BALANCE SHEET**
## **Company Number 08966275**
## **As at 31 March 2021**
|**Note**
**£**
**Fixed assets**
Tangible assets
8
1,192,471
Investments
9
4,917,819
_____________
**Current assets**
Debtors
10
36,381
Cash at bank and in hand
352,630
_____________
389,011
**Creditors:**Amounts falling due within
one year
11
(135,325)
_____________
**Net current assets**
**Total assets less current liabilities**
**The funds of the charity:**
**Endowed funds**
13
**Unrestricted funds**
General funds
13|**2021**
**£**
6,110,290
253,686
6,363,976|||**£**
1,196,855
4,012,155
42,344
511,956
554,300
(140,129)
|**2020**
**£**
5,209,010
414,171
5,623,181
2,285,964
3,337,217
5,623,181|
|---|---|---|---|---|---|
|||||||
|||||||
||2,881,339
3,482,637
6,363,976|||||
The financial statements on pages 14 to 30 were approved by the Trustees and authorised for issue on 23 November 2021 and signed on their behalf by:
## **R Ruddick – Trustee D Loudon - Trustee**
The notes on pages 18 to 30 form part of these financial statements.
15
**JAMES HIRONS (A company limited by guarantee)**
## **PARENT COMPANY BALANCE SHEET**
## **Company Number 08966275**
## **As at 31 March 2021**
|**Note**
**£**
**Fixed assets**
Tangible assets
8
1,192,471
Investments
9
2,033,764
_____________
**Current assets**
Debtors
10
36,381
Cash at bank and in hand
352,630
_____________
389,011
**Creditors:**Amounts falling due within
one year
11
(132,709)
_____________
**Net current assets**
**Total assets less current liabilities**
**The funds of the charity:**
**Unrestricted funds**
General funds
13|**2021**
**£**
3,226,235
256,302
3,482,537
3,482,537
3,482,537|||**2020**
**£**
**£**
1,196,855
1,725,014
2,921,869
42,344
511,956
554,300
(138,952)
415,348
3,337,217
3,337,217
3,337,217|
|---|---|---|---|---|
||||||
||||||
The financial statements on pages 14 to 30 were approved by the Trustees and authorised for issue on 23 November 2021 and signed on their behalf by:
## **R Ruddick – Trustee**
## **D Loudon - Trustee**
The notes on pages 18 to 30 form part of these financial statements.
16
**JAMES HIRONS (A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF CASH FLOWS**
## **For the year ended 31 March 2021**
|**Cash flow from operating activities**
Net movement in funds
Interest Received
Decrease in debtors
(Decrease)/increase in creditors
Depreciation
Loss/(gain) on investments
**Net cash flow from operating activities**
**Cash flow from investing activities**
Interest Received
Proceeds from sale of investments
Purchase of investments
Purchase of fixed assets
**Net cash flow from investing activities**
**Net decrease in cash and cash equivalents**
**Cash and cash equivalents at 1 April 2020**
**Cash and cash equivalents at 31 March 2021**
Cash at bank
Cash held by Investment Managers
**Cash and cash equivalents at 31 March 2021**|**2021**
**£**
740,795
(107,968)
5,963
(4,804)
22,044
(923,695)
(267,665)
107,968
901,240
(878,535)
(17,660)
113,013
(154,652)
703,901
549,249
352,630
196,619
549,249|**2020**
**£**
(288,001)
(124,030)
388
16,218
23,938
376,449|
|---|---|---|
|||4,962|
|||124,030
656,766
(775,735)
(48,305)|
|||(43,244)|
|||(38,282)
742,183
703,901
511,956
191,945|
|||703,901|
17
**JAMES HIRONS**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **For the year ended 31 March 2021**
## **1 Summary of significant accounting policies**
## **(a) General information and basis of preparation**
James Hirons is a company limited by guarantee incorporated in the United Kingdom. In the event of the charitable group being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the group’s operations is the provision of accommodation and residential care.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.
The financial statements are prepared on a going concern basis under the historical cost convention as modified for the revaluation of fixed asset investments at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **(b) Basis of consolidation**
The group financial statements are the result of the consolidation of the financial statements of the company and its subsidiary The James Hirons Care Home. The financial statements of all entities are made up to 31 March 2021.
No separate SOFA has been presented for the charitable company alone following exemptions afforded by the Companies Act 2006.
## **(c) Funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Endowment funds represent those assets which must be held permanently by the charity, principally investments. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund.
## **(d) Income recognition**
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance
18
**JAMES HIRONS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **For the year ended 31 March 2021**
before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.
## **(e) Expenditure recognition**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- Costs of raising funds includes investment management fees;
- Expenditure on charitable activities includes cost related to residential care;
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
On occasions it may be necessary to make termination payments to an employee. In these circumstances the Charity treats such payments as an expense which is recognised within expenditure.
## **(f) Support costs allocation**
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity.
The analysis of these costs is included in note 6.
## **(g) Tangible fixed assets**
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:
|Freehold buildings|Over 150 years|
|---|---|
|Property improvements|Over 5 years|
|Fixtures and fittings|Over 4 years|
|Computer equipment|Over 3 years|
|Motor vehicles|Over 4 years|
All assets costing more than £5,000 are capitalised.
19
**JAMES HIRONS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **For the year ended 31 March 2021**
## **(h) 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 the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
The Charity does not acquire put options, 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 market due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sector.
## **(i) Realised gains and losses**
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year.
Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
Investments are stated at market value as at the balance sheet date. The statement of financial activities includes the net gains and losses arising on the revaluation and disposals throughout the year.
## **(j) Debtors and creditors receivable / payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **(k) Tax**
The charity is a exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
## **(l) Going concern**
The financial statements have been prepared on a going concern basis. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
20
**JAMES HIRONS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **For the year ended 31 March 2021**
## **2 Judgements and key sources of estimation uncertainty**
The charitable company makes estimates and assumptions concerning the future. The Trustees are also required to exercise judgement in the process of applying the charitable company’s accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:
## **Recoverability of trade debtors**
Trade and other receivables are recognised to the extent that they are judged recoverable. Management reviews are performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically against invoices where recoverability is uncertain.
Management makes allowance for doubtful debts based on an assessment of the recoverability of debtors. Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management specifically analyse historical bad debts, current economic trends and changes in payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such difference will impact the carrying value of debtors and the charge in the profit and loss account.
## **3 Income from charitable activities**
|Fees for residential care
Donations and fundraising
Grants|**2021**
**£**
643,208
4,216
51,319
698,743|**2020**
**£**
864,395
2,376
-|
|---|---|---|
|||866,771|
Included within grants is funding received from the local authority of £4,780 in respect of Covid emergency response relief and £46,539 received under the Infection Control Grant Fund.
## **4 Income from investments**
|Dividends receivable
Bank interest receivable|**2021**
**£**
107,025
943
107,968|**2020**
**£**
118,105
5,925|
|---|---|---|
|||124,030|
21
**JAMES HIRONS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **For the year ended 31 March 2021**
## **5 Investment management costs**
|**5**
**Investment management costs**|||
|---|---|---|
|Investment manager fees
**6**
**Charitable activities**
**Residential care**
Employee costs
Property and grounds costs
Catering and household supplies
**Support costs**
Employee costs
Depreciation
Overheads
Bookkeeping and administrative duties
Audit fee
Trustee expenses
Covid costs
**TOTAL**|**2021**
**£**
20,526
**2021**
**£**
669,439
144,345
45,010
858,794
**2021**
**£**
26,252
22,044
24,051
25,880
5,792
279
5,993
110,291
**969,085**|**2020**
**£**
19,658|
|||**2020**
**£**
591,734
127,544
56,672
775,950
**2020**
**£**
17,923
23,938
32,698
24,808
6,792
586
-
106,745|
|||**882,695**|
22
**JAMES HIRONS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **For the year ended 31 March 2021**
|**7 Employee costs**
Wages and salaries
Social security costs
Agency costs
Pension costs|**2021**
**£**
504,363
35,369
127,836
28,123
695,691|**2020**
**£**
429,483
30,097
127,022
23,055|
|---|---|---|
|||609,657|
The average headcount during the year was 25 employees (2020: 27).
|The full-time equivalent number of employees
analysed by function during the year was:
Direct
Support|**2021**
**FTE**
18
2
20
**2020**
**FTE**
17
1
18|
|---|---|
Included within employee costs is an ex-gratia payment of £7,300 paid to an employee.
During the year, no employees (2020: 0) received total employee benefits (excluding employer pension costs) of more than £60,000.
## **Trustees’ and key management personnel remuneration and expenses**
Trustees are not remunerated. They are paid expenses for attending meetings and duties directly related to their duties as Trustees. During the year 5 (2020: 5) Trustees were reimbursed expenses of £524 (2020: £582) for travel and subsistence. 7 Trustees (2020: 7) were paid a contribution towards their printing costs £175 (2020: £175).
The total amount of employee benefits (including employer pension contributions) received by key management personnel for their services to the charity was £142,204 (2020: £122,631).
23
**JAMES HIRONS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **For the year ended 31 March 2021**
## **8 Tangible fixed assets**
|**GROUP AND PARENT**
**COMPANY**
COST
At 1 April 2020
Additions|**Freehold**
**Property**
**£**
**Property**
**Improve**
**-ments**
**£**
**Fixtures**
**&**
**fittings**
**£**
**Computer**
**Equipment**
**£**
**Motor**
**Vehicles**
**£**
**Total**
**£**
1,200,000
63,471
201,963
2,061
6,595
1,474,090
-
17,660
-
-
-
17,660|
|---|---|
|At 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for the year
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020|1,200,000
81,131
201,963
2,061
6,595
1,491,750|
||56,000
13,315
199,264
2,061
6,595
277,235
8,000
12,694
1,350
-
-
22,044|
||64,000
26,009
200,614
2,061
6,595
299,279|
||1,136,000
55,122
1,349
-
-
1,192,471|
||1,144,000
50,156
2,699
-
-
1,196,855|
24
**JAMES HIRONS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **For the year ended 31 March 2021**
## **9 Fixed asset investments**
## **GROUP**
|Market value at 1 April
Additions
Disposal proceeds
Net unrealised gain/(loss)
Movement in cash held for
reinvestment
Market value at 31 March
Historical cost at 31 March
UK investments
Overseas investments
Cash awaiting investment
Market value at 31 March|**Unrestricted**
**Funds**
**£**
**Endowment**
**Funds**
**£**
**Total**
**2021**
**£**
1,725,014
2,287,141
4,012,155
305,140
573,395
878,535
(344,180)
(557,060)
(901,240)
353,539
570,156
923,695
(5,749)
10,423
4,674
2,033,764
2,884,055
4,917,819
1,507,830
1,905,841
3,413,671
**Unrestricted**
**Funds**
**£**
**Endowment**
**Funds**
**£**
1,171,696
1,754,855
757,698
1,029,214
104,370
99,986
2,033,764
2,884,055||**Total**
**2020**
**£**
4,216,322
775,734
(656,766)
(376,449)
53,314|
|---|---|---|---|
||||4,012,155|
||||3,452,545|
||||**Total**
**2021**
**£**
2,926,551
1,786,912
204,356
4,917,819|
|||||
25
**JAMES HIRONS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **For the year ended 31 March 2021**
## **9 Fixed asset investments (continued)**
## **COMPANY**
|Market value at 1 April
Additions
Disposal proceeds
Net unrealised gain/(loss)
Movement in cash held for
reinvestment
Market value at 31 March
Historical cost at 31 March
UK investments
Overseas investments
Cash awaiting investment
Market value at 31 March|**Unrestricted**
**Funds**
**£**
1,725,014
305,140
(344,180)
353,439
(5,649)
2,033,764
1,507,830||**Total**
**2021**
**£**
1,725,014
305,140
(344,180)
353,439
(5,649)
2,033,764
1,507,830
**Unrestricted**
**Funds**
**£**
1,171,696
757,698
104,370
2,033,764||**Total**
**2020**
**£**
1,649,653
263,467
(137,990)
(108,986)
58,870|
|---|---|---|---|---|---|
||||||1,725,014|
||||||1,549,107|
||||||**Total**
**2021**
**£**
1,171,696
757,698
104,370|
||||||2,033,764|
|**10 Debtors**
Trade debtors
Other amounts receivable
Prepayments|**Group**
**2021**
**2020**
**£**
**£**
14,949
21,284
10,961
10,723
10,471
10,337
36,381
42,344|**Company**
**2021**
**2020**
**£**
**£**
14,949
21,284
10,961
10,723
10,471
10,337
36,381
42,344|
|---|---|---|
26
**JAMES HIRONS**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **For the year ended 31 March 2021**
**11 Creditors:** amounts falling due within one year
|Trade creditors
Tax and social security
Accruals and deferred income
Other creditors
**eferred income**
Balance at 1 April 2020
Amounts released to income
Amount deferred in the year
Balance at 31 March 2021|**Group**
**2021**
**2020**
**£**
**£**
40,869
32,971
9,680
6,142
74,465
95,858
10,311
5,158
135,325
140,129|**Company**
**2021**
**2020**
**£**
**£**
40,869
32,971
9,680
6,142
71,231
94,681
10,929
5,158
132,709
138,952
**2021**
**£**
54,171
(54,171)
35,821
35,821|**Company**
**2021**
**2020**
**£**
**£**
40,869
32,971
9,680
6,142
71,231
94,681
10,929
5,158
132,709
138,952
**2021**
**£**
54,171
(54,171)
35,821
35,821|**Company**
**2021**
**2020**
**£**
**£**
40,869
32,971
9,680
6,142
71,231
94,681
10,929
5,158
132,709
138,952
**2021**
**£**
54,171
(54,171)
35,821
35,821|
|---|---|---|---|---|
||||||
|||||35,821|
## **12 Deferred income**
Deferred income comprises fees received in advance for future accounting periods.
27
**JAMES HIRONS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **For the year ended 31 March 2021**
## **13 Fund Reconciliation – GROUP – current year**
|Unrestricted
funds
Endowment
funds|**Balance**
**1 April**
**2020**
**£**
3,337,217
2,285,964
5,623,181|**Incoming**
**Resources**
**£**
806,711
-
806,711|**Outgoing**
**Resources**
**£**
(977,523)
(12,088)
(989,611)|**Gains**
**and**
**(Losses)**
**£**
353,539
570,156
923,695|**Transfers**
**£**
(37,307)
37,307
-|**Balance**
**31 March**
**2021**
**£**
3,482,637
2,881,339|
|---|---|---|---|---|---|---|
|||||||6,363,976|
## **Fund Reconciliation – COMPANY – current year**
|Unrestricted
funds|**Balance**
**1 April**
**2020**
**£**
3,337,217
3,337,217|**Incoming**
**Resources**
**£**
806,711
806,711|**Outgoing**
**Resources**
**£**
**Gains**
**and**
**(Losses)**
**£**
**Transfers**
**£**
(977,523)
353,439
(37,307)
(977,523)
353,439
(37,307)|**Balance**
**31 March**
**2021**
**£**
3,482,537|
|---|---|---|---|---|
|||||3,482,537|
28
**JAMES HIRONS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **For the year ended 31 March 2021**
## **13 Fund Reconciliation (continued) – GROUP – prior year**
|Unrestricted
funds
Endowment
funds|**Balance**
**1 April**
**2019**
**£**
3,345,938
2,565,244
5,911,182|**Incoming**
**Resources**
**£**
990,801
-
990,801|**Outgoing**
**Resources**
**£**
(890,536)
(11,817)
(902,353)|**Gains**
**and**
**(Losses)**
**£**
(108,986)
(267,463)
(376,449)|**Transfers**
**£**
-
-
-|**Balance**
**31 March**
**2020**
**£**
3,337,217
2,285,964|
|---|---|---|---|---|---|---|
|||||||5,623,181|
## **Fund Reconciliation – COMPANY – prior year**
|Unrestricted
funds|**Balance**
**1 April**
**2019**
**£**
3,345,938
3,345,938|**Incoming**
**Resources**
**£**
990,801
990,801|**Outgoing**
**Resources**
**£**
**Gains**
**and**
**(Losses)**
**£**
**Transfers**
**£**
(890,536)
(108,986)
-
(890,536)
(108,986)
-|**Balance**
**31 March**
**2020**
**£**
3,337,217|
|---|---|---|---|---|
|||||3,337,217|
Unrestricted Funds comprise those funds which the Trustees are free to use in accordance with the charitable objects.
The Endowment Fund represents those assets which must be held permanently by the Charity, principally investments. Any capital gains or losses arising on the investments form part of the fund.
29
**JAMES HIRONS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **For the year ended 31 March 2021**
## **14 Analysis of net assets between funds – GROUP - current year**
|**Unrestricted**
**Permanent**
**funds**
**endowment**
**£**
**£**
Tangible assets
1,192,471
-
Investments
2,033,764 2,884,055
Net current assets
256,402 (2,716)
3,482,637
2,881,339
**nalysis of net assets between funds – GROUP - prior year**
**Unrestricted**
**Permanent**
**funds**
**endowment**
**£**
**£**
Tangible assets
1,196,855
-
Investments
1,725,014
2,287,141
Net current assets
415,348
(1,177)
3,337,217
2,285,964|**Total**
**funds**
**£**
1,192,471
4,917,819
253,686
6,363,976
**Total**
**funds**
**£**
1,196,855
4,012,155
414,171
5,623,181|
|---|---|
## **Analysis of net assets between funds – GROUP - prior year**
## **15 Related party transactions**
During the year, the Clerk to the Trustees, Mrs E M Mallender, provided bookkeeping and administrative duties to the Home. Her fees for these services and the amount due to her at the yearend were as follows:
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Book-keeping and administrative duties|25,880|24,808|
|Creditor|1,676|2,903|
These services were provided at arm’s length and were in the normal course of business. There were no transactions with residents who were relatives of Trustees during the year. Transactions with trustees are disclosed at note 7.
## **16 Capital commitments**
|**apital commitments**|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Capital expenditure contracted for but not provided in the|-|3,642|
|financial statements|||
## **17 Residents bank account**
There was £3,333 at 31 March 2021 held on behalf of Residents in a Handelsbanken bank account.
30
**JAMES HIRONS (A company limited by guarantee)**
## **INCOME AND EXPENDITURE ACCOUNT**
## **For the year ended 31 March 2020**
|**Income**
Fees receivable
Sundry income - Day Care
Donations & fundraising
Grants
**Expenditure**
Provisions, household supplies etc.
Rates and insurance
Auditors remuneration
Book-keeping and administrative duties
Fuel, lighting and heating
Repairs and renewals
Salaries and wages
Staff training
Printing, postage and stationery
Bank charges and interest (inc refunds)
Depreciation
Motor and travelling expenses
Telephone
Sundries
Staff recruitment
Garden maintenance
Registration fee
Stockbrokers management fees
Professional fees
Activities
Advertising
HR support
**Operating (deficit)/surplus**
**Investment income**
Dividends received
Bank interest received
**Investment movement**
Net unrealised (loss)/gain on investments
**Net surplus/(deficit) for the year**|
54,944
26,663
6,792
24,808
31,547
71,334
695,691
4,787
1,196
(110)
23,938
1,300
1,831
5,690
7,496
2,192
3,079
19,658
2,760
1,034
1,129
608
107,025
943
923,695|**2021**
643,208
-
4,216
51,319
698,743
989,611
(35,562)
107,968
923,695
740,795|**2020**
864,395
-
2,376
-
866,771
54,944
26,663
6,792
24,808
31,547
71,334
609,657
4,787
1,196
(110)
23,938
1,300
1,831
5,690
7,496
2,192
3,079
19,658
2,760
1,034
1,129
608
902,333
(35,562)
118,105
5,925
124,030
(376,449)
(376,449)
(288,001)|**2020**
864,395
-
2,376
-
866,771
54,944
26,663
6,792
24,808
31,547
71,334
609,657
4,787
1,196
(110)
23,938
1,300
1,831
5,690
7,496
2,192
3,079
19,658
2,760
1,034
1,129
608
902,333
(35,562)
118,105
5,925
124,030
(376,449)
(376,449)
(288,001)|
|---|---|---|---|---|
|||||866,771
902,333|
|||||(35,562)
124,030|
|||||(376,449)|
|||||(288,001)|
_This page does not form part of the statutory financial statements._
31