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2022-03-31-accounts

Charity registration number 1167524

W J YAPP BEQUEST - DERBYSHIRE HOUSE

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

W J YAPP BEQUEST - DERBYSHIRE HOUSE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs G Raffle (Vice Chair)
Mr J Hooley
Dr T Kelly (Chair and Registered Provider)
Mrs L Hallam
Executive Staff Mrs S Smith (Registered Manager)
Miss A Remzi (Administrator)
Charity number 1167524
Principal address Derbyshire House
Station Road
East Leake
Loughborough
Leicester
LE12 6LQ
Auditor Rogers Spencer
Newstead House
Pelham Road
Nottingham
NG5 1AP
Bankers Lloyds Bank plc
12-16 Lower Parliament Street
Nottingham
NG1 3DA
Investment advisors Brewin Dolphin
1st Floor
Waterfront House
Waterfront Plaza
35 Station Street
Nottingham
NG23DQ

W J YAPP BEQUEST - DERBYSHIRE HOUSE

CONTENTS

Page
Trustees' report 1 - 5
Statement of Trustees' responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10 - 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 24

W J YAPP BEQUEST - DERBYSHIRE HOUSE

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their annual report and financial statements for the year ended 31 March 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The object of the Charity is to provide residential accommodation for anyone over the age of 65 in need of physical, and/or emotional care and support. We are also able to support some people with mental health frailty providing this is not assessed as a primary need.

This object is achieved by the provision of residential care in Derbyshire House at East Leake, Loughborough, Leicestershire. The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the aims and objectives of the Charity and in planning future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

Activities undertaken by the charity to further its charitable purposes for the public benefit can include social events, often inviting members of the local community; provision of trips, exercise activities, Christmas gifts etc at no extra charge to residents. Staff have undertaken extra training to facilitate provision of ear irrigation and some phlebotomy services within the home.

Our aim is to encourage a life that is normal and individual where freedom to make choices and decisions about daily living is afforded and independence is encouraged. This is achieved by providing a residence without unnecessary rules and regulations and a regard for people’s needs so that each person can feel valued as individual human beings. We believe the home should be a place where companionship and positive social interactions flourish.

W J YAPP BEQUEST - DERBYSHIRE HOUSE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance

W J Yapp Bequest is a non-profit making Charitable Incorporated Organisation, operating Derbyshire House, a purpose-built residential care home. Derbyshire House is registered to provide single occupancy accommodation for up to 31 older people requiring physical, emotional and some mental health support and care to meet individuals’ whole needs.

Details about the home and the facilities that it provides are available on the web-site www.derbyshirehouse.org.uk or, in current times, more recent up to date information from the registered manager registeredmanager@derbyshirehouse.org

Each year the home receives Quality Audits from the Local Authority, CQC and Infection Control. As well as inspections from the Environmental Health, Fire Officer and Health and Safety Executive.

We also pride ourselves on additional awards achieved through High Standards which include GSF (Gold Standards Framework), Cinnamon Trust, Investors in people and the DQM (Dementia Quality Mark).

Our up to date Quality Audits and Inspections are:

In addition to this the home has received the following awards:

Dementia Quality Mark (DQM) – for our approach to feelings-based care, interaction and support to people who have a dementia – we received a score of 25/25 outcomes 2022 - 2024.

GSF (Gold Standards Framework) – for our approach to end of life care and support and helping people to live well until they die – we were awarded the Platinum status in August 2022 and a nominee for care home of the year 2022.

Investors in People – In March 2022 we received a Gold Award against the new and higher standards of Investors in people which recognises standards in people management and defines what it takes to lead, support and manage people as well as measuring how we champion the business within the local community and the benefits of working for the home using benchmarking and feedback

Cinnamon Trust – the home holds 5 stars for its approach and care of pets and animals and how we use animals as therapy for people. This is reviewed yearly and we have been shortlisted twice for best home.

In March 2022, due to the pandemic and the devasting effects it had on the home, we had 4 rooms unoccupied. To date we have 1 room unoccupied, which is on hold for potential permanent occupant. The home has a healthy waiting list and also vast interest for day care when we are able to open up the service again. We are hopeful that we will be able to resume this in Spring/Summer 2023, when we plan to have a full staff rota again.

There has been and still is a national care staff shortage, and we have been working hard trying to build back up the rota but also ensuring that the staff employed are right and have the attitude and skills required to deliver the high standards expected. To date our rotas reflect 4 vacancies, and we are currently working towards filling these.

W J YAPP BEQUEST - DERBYSHIRE HOUSE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Financial review

Derbyshire House maintained a good level of occupancy, generating fee income of £1,175,011 (2021: £1,216,285). Taking into account grants and donations received, operations income amounted to £1,181,250 (2021: £1,229,467). Operating expenditure was £1,194,029 (2021: £1,173,668) giving an operating deficit of £12,779 (2021 - £42,617). Total overall income of £1,220,515 (2021: £1,293,406) includes investment and rental income. Total expenditure of £1,199,186 (2021: £1,178,324) includes investment management costs. When gains on investments of £31,633 (2021: £70,726) are taken into account, the overall net surplus for the year is £52,962 (2021: £3,383,591).

The balance sheet shows a satisfactory position with total funds of over £3.4m (2021: £3.3m) of which £2.09m (2021: £2.1m) relates to the freehold building of Derbyshire House.

Fees are set to cover operating and maintenance costs and take account of investment income. A reserve is maintained in order to cover against the risk of not meeting the Trustees’ target occupancy rate. The residents are expected to meet the fees from their own funds or, if eligible for funding by the local authority, with a third party top up if required. Where circumstances are such that a prospective resident may not be able to fund their stay to a required rate the Trustees are able, in accordance with our charitable status, to help a limited number of residents each year. For the year under review, there was reduced occupancy. The percentage of residents during the year that were part funded by the local authority was 13.63%.

The Trustees are given unlimited investment powers under the governing Document. The investments held by the charity are held by Brewin Dolphin on a discretionary management basis. The Trustees’ policy on investments is to equate capital growth with the need for income. Allowing for the movement of funds realised the value of the investments under management has shown a small increase over the year. The Trustees monitor the investment portfolio regularly.

The value of the investment property at Old Hall Gardens stands at £120,000 (2021: £100,000).

In the opinion of the Trustees the market value of the freehold property at 31st March 2022, exceeds the value at which it is stated in these accounts. The Trustees do not believe themselves adequately qualified to quantify this surplus nor do they consider the costs of a professional valuation are justified.

Reserves Policy

The Trustees have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets (‘the free reserves’) held by the charity should be between 3 and 6 months expenditure, which equates to £300,000 to £600,000 in general funds. At this level, the Trustees feel that they would be able to continue the current activities of the charity in the event of a significant drop in income. The free reserves amount to £1,190,867 (unrestricted reserves less tangible fixed assets) and therefore meet the required level of reserves.

Risk management

The Trustees undertake ongoing review of the major risks to which the charity is exposed and systems have been established to mitigate those risks. Significant external risks to income are continually reviewed to ensure that occupancy levels are maintained and that local authority requirements are met. Internal risks are minimised by the implementation of procedures for authorisation of all transactions to ensure consistent quality of delivery for all operational aspects of the charity. These procedures are periodically reviewed to ensure that they still meet the needs of the charity. Since the start of the Covid19 pandemic, risk assessments have been amended as necessary according to prevailing current guidelines.

W J YAPP BEQUEST - DERBYSHIRE HOUSE

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Plans for future periods

The intention of the Trustees is to regain full occupancy of the home by February 2023, a healthy waiting list, general interest levels in the home and all the current high inspection ratings.

At present we have staff to fulfil the needs of the residents as per our dependency calculator and we are working on employing more staff to build back up our staff team.

Derbyshire House has always prided itself on providing residents with facilities and activities that benefit both the emotional and social needs of people as well as physical ability. Over the past year we have been able to build upon all the plans we had due to the global pandemic. The funds that were originally set aside for the home improvements last year have been saved to use this financial year.

To maintain high standards, progress is being made towards improving achievements, which involves training, support and dedication. The Trustees feel this will maintain and hopefully improve the high standards we have so far achieved and enable us to continue to provide a quality standard of living for the people in our care.

Structure, governance and management

The undertaking and assets of The WJ Yapp Bequest, an unincorporated charity number 232860, was transferred to this charity (Charitable Incorporated Organisation registered number 1167524) on 1 April 2017.

The W J Yapp Bequest is a registered Charity, No.1167524, being a Charitable Incorporated Organisation, registered as a Foundation on 7 June 2016. The Trust's Trustees, and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Trust on a day to day basis. All Trustees give their time freely and no Trustee received remuneration in the year. There were no Trustees expenses and/or related party transactions as stated in note 7 of the accounts.

At present there are 4 Trustees, on appointment new Trustees will become familiar with the practical work of the charity after reading the Annual Report and will have received a copy of the governing document and the latest financial reports. They will also meet with the Registered Manager, Administrator and existing Trustees as well as being offered opportunities to talk to the staff.

The Trustees who served during the year and up to the date of signature of the financial statements were: Mrs G Raffle (Vice Chair)

Mr J Hooley

Dr T Kelly (Chair and Registered Provider) Mrs L Hallam Mrs S Elliott (Resigned 1 March 2022)

Additionally, they are invited to attend induction training which covers the following areas:

All Trustees are signposted to any other relevant training throughout the year.

The pay of the senior staff is reviewed annually and increased accordingly. In view of the nature of the charity, the Trustees may benchmark against pay levels in other Charitable, comparable residential homes of a similar size.

W J YAPP BEQUEST - DERBYSHIRE HOUSE

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

The Trustees' report was approved by the Board of Trustees.

..............................

Dr T Kelly (Chair and Registered Provider) Trustees

Date: .............................................

W J YAPP BEQUEST - DERBYSHIRE HOUSE

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2022

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales 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 charity and of the incoming resources and application of resources of the charity for that year.

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

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

W J YAPP BEQUEST - DERBYSHIRE HOUSE

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF W J YAPP BEQUEST - DERBYSHIRE HOUSE

Opinion

We have audited the financial statements of W J Yapp Bequest - Derbyshire House (the ‘charity’) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

W J YAPP BEQUEST - DERBYSHIRE HOUSE

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF W J YAPP BEQUEST - DERBYSHIRE HOUSE

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

W J YAPP BEQUEST - DERBYSHIRE HOUSE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF W J YAPP BEQUEST - DERBYSHIRE HOUSE

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Melvin Bailey (Senior Statutory Auditor) for and on behalf of Rogers Spencer ......................... Chartered Accountants Statutory Auditor Newstead House Pelham Road Nottingham NG5 1AP

Rogers Spencer is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

W J YAPP BEQUEST - DERBYSHIRE HOUSE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022

Current financial year Current financial year Current financial year
Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£		 Total Total
funds funds
2022 2022 2022 2021
£ £ £ £
Income and endowments from:
Donations and legacies
3		 2,452 3,787 6,239 13,182
Charitable activities
4		 1,175,011 - 1,175,011 1,216,285
Rental income 5,695 - 5,695 5,705
Investments
5		 13,970 - 13,970 14,101
Other income
6		 19,600 - 19,600 44,133
Total income 1,216,728 3,787 1,220,515 1,293,406
Expenditure on:
Raising funds: investment management fees
5,157 - 5,157 4,656
Charitable activities
7		 1,189,186 4,843 1,194,029 1,173,668
Total expenditure 1,194,343 4,843 1,199,186 1,178,324
Net gains/(losses) on investments
11		 31,633 - 31,633 70,726
Net income/(expenditure) for the year/ 54,018
Net movement in funds (1,056) 52,962 185,808
Fund balances at 1 April 2021 3,355,266 28,325 3,383,591 3,197,783
Fund balances at 31 March 2022 3,409,284 27,269 3,436,553 3,383,591

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

W J YAPP BEQUEST - DERBYSHIRE HOUSE

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022

Prior financial year

Prior financial year Prior financial year Prior financial year
Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£		 Total
funds funds
2021 2021 2021
£ £ £
Income and endowments from:
Donations and legacies
3		 3,665 9,517 13,182
Charitable activities
4		 1,216,285 - 1,216,285
Rental income 5,705 - 5,705
Investments
5		 14,101 - 14,101
Other income
6		 44,133 - 44,133
Total income 1,283,889 9,517 1,293,406
Expenditure on:
Raising funds: investment management fees
4,656 - 4,656
Charitable activities
7		 1,167,810 5,858 1,173,668
Total expenditure 1,172,466 5,858 1,178,324
Net gains/(losses) on investments
11		 70,726 - 70,726
Net income/(expenditure) for the year/
Net movement in funds 182,149 3,659 185,808
Fund balances at 1 April 2020 3,173,117 24,666 3,197,783
Fund balances at 31 March 2021 3,355,266 28,325 3,383,591

W J YAPP BEQUEST - DERBYSHIRE HOUSE

BALANCE SHEET

AS AT 31 MARCH 2022

Notes 2022 2022 2021 2021
£ £ £ £
Fixed assets
Tangible assets
12
Investment properties
13
Investments
14
Current assets		 11,603
517,350
528,953
(89,346)		 2,218,417
120,000
658,529
2,996,946
439,607
3,436,553
27,269
3,409,284
3,436,553		 14,686
477,052
491,738
(51,497)		 2,191,298
100,000
652,052
2,943,350
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets 440,241
Total assets less current liabilities
3,383,591
Income funds
Restricted funds
18		 28,325
Unrestricted funds 3,355,266
3,383,591

The financial statements were approved by the Trustees on .........................

.............................. .............................. Mrs G Raffle (Vice Chair) Dr T Kelly (Chair and Registered Provider) Trustee Trustee

W J YAPP BEQUEST - DERBYSHIRE HOUSE

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2022

Notes
Cash flows from operating activities
Cash generated from operations
22
Investing activities
Purchase of tangible fixed assets
Purchase of investments		 2022 2021 £
167,013
£ £
£
(89,155)
(18,393)
23,549		 124,297
(23,907)
(138,859)
143,516
(83,999)
40,298
477,052
517,350
Proceeds on disposal of investments
Net cash used in investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
(19,250)
147,763
329,289
477,052

W J YAPP BEQUEST - DERBYSHIRE HOUSE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

Charity information

W J Yapp Bequest is a Charitable Incorporated Organisation in the United Kingdom. The address of the principal office is Derbyshire House, Station Road, East Leake, Loughborough, Leicester, LE12 6LQ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

W J YAPP BEQUEST - DERBYSHIRE HOUSE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.5 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of the resources.

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 1% and 10% straight line Fixtures and fittings 20% reducing balance Motor vehicles 25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.9 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

W J YAPP BEQUEST - DERBYSHIRE HOUSE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies (Continued)

1.11 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14 Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

W J YAPP BEQUEST - DERBYSHIRE HOUSE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2022 2022 2022 2021 2021 2021
£ £ £ £ £ £
Donations and gifts 2,452 3,787 6,239 3,665 9,517 13,182

4 Charitable activities

Local authority
Fees receivable		 2022 2021
£ £
245,939 225,446
928,509 990,839
1,175,011 1,216,285

5 Investments

Unrestricted
Unrestricted
funds
funds
2022
2021
£
£		 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£		 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
funds funds
2022 2021
£ £
Income from listed investments 13,853 13,974
Interest receivable 117 127
13,970 14,101

W J YAPP BEQUEST - DERBYSHIRE HOUSE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

6 Other income

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Government grants received 19,600 44,133

During the year, £12,568 in grants was received from Nottinghamshire County Council with respect to infection control grants (2021: £20,686). In addition to this, £6,967 was received from HMRC under the Coronavirus Job Retention Scheme (2021: £20,142). In 2021, an additional Coronavirus grant of £815 was received and £2,491 was received under the Coronavirus Statutory Sick Pay Rebate Scheme.

W J YAPP BEQUEST - DERBYSHIRE HOUSE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

7 Charitable activities

2022 2021
£ £
Staff costs 785,510 795,945
Depreciation 62,035 55,093
Residents activities 7,205 6,451
Catering 58,357 53,445
Staff training 6,171 1,957
Motor expenses 4,913 7,149
Resident fees contribution 562 9,156
Administration fees 1,435 1,874
Light and heat 26,189 29,061
Equipment hire and rental 21,470 21,002
Rates and water 6,405 8,947
Insurance 23,060 15,137
Repairs 54,041 32,675
Registration fee 13,750 8,049
Printing, postage and telephone 5,270 5,086
Garden maintenance 1,721 53
Bank charges and interest 648 60
Legal and professional 2,276 2,148
Household expenses and cleaning 32,084 46,457
Sundry expenses 14,308 11,924
1,121,239 1,109,712
Share of governance costs (see note 8) 72,790 63,956
Analysis by fund
1,194,029 1,173,668
Unrestricted funds 1,189,186 1,167,810
Restricted funds 4,843 5,858
1,194,029 1,173,668

W J YAPP BEQUEST - DERBYSHIRE HOUSE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

8 Governance costs

Staff costs
Audit and accountancy
Legal and professional		 2022 2021
£ £
57,294 53,856
7,900 8,240
7,596 1,860
72,790 63,956
Analysed between
Charitable activities 72,790 63,956

Governance costs includes payments to the auditors of £4,820 (2021- £3,500) for audit fees. Accounts fees were included at £2,200 (2021- £2,000).

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

10 Employees

Number of employees

The average monthly number of employees during the year was:

2022 2021
Number Number
Care service 31 38
Management and administration 2 2
33 40
Employment costs 2022 2021
£ £
Wages and salaries 738,443 794,044
Agency staff costs 86,014 43,266
Other pension costs 12,176 12,491
836,633 849,801
Remuneration of key management personnel
The remuneration of key management personnel is as follows:
Aggregate compensation 102,491 96,351

There were no employees whose annual remuneration was £60,000 or more.

W J YAPP BEQUEST - DERBYSHIRE HOUSE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

11 Net gains/(losses) on investments

Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Gain/(loss) on sale of investments
11,633
70,726
Revaluation of investment properties
20,000
-
31,633
70,726
12
Tangible fixed assets		 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Gain/(loss) on sale of investments
11,633
70,726
Revaluation of investment properties
20,000
-
31,633
70,726
12
Tangible fixed assets		 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Gain/(loss) on sale of investments
11,633
70,726
Revaluation of investment properties
20,000
-
31,633
70,726
12
Tangible fixed assets		 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Gain/(loss) on sale of investments
11,633
70,726
Revaluation of investment properties
20,000
-
31,633
70,726
12
Tangible fixed assets		 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Gain/(loss) on sale of investments
11,633
70,726
Revaluation of investment properties
20,000
-
31,633
70,726
12
Tangible fixed assets		 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Gain/(loss) on sale of investments
11,633
70,726
Revaluation of investment properties
20,000
-
31,633
70,726
12
Tangible fixed assets
funds funds
2022 2021
£ £
11,633 70,726
20,000 -
31,633 70,726
12
Tangible fixed assets
Freehold land
and buildings
Fixtures and
fittings
Motor vehicles
£
£
£
Cost
At 1 April 2021
2,336,126
295,226
45,961
Additions
57,997
31,158
-
At 31 March 2022
2,394,123
326,384
45,961
Depreciation and impairment
At 1 April 2021
243,687
200,676
41,653
Depreciation charged in the year
35,803
25,155
1,077
At 31 March 2022
279,490
225,831
42,730
Carrying amount
At 31 March 2022
2,114,633
100,553
3,231
At 31 March 2021
2,092,439
94,551
4,308		 Total
£ £ £ £
2,336,126 295,226 45,961 2,677,313
57,997 31,158 - 89,155
2,394,123 326,384 45,961 2,766,468
243,687 200,676 41,653 486,016
35,803 25,155 1,077 62,035
279,490 225,831 42,730 548,051
2,114,633 100,553 3,231 2,218,417
2,092,439 94,551 4,308 2,191,298
13
Investment property
Fair value
At 1 April 2021
Net gains or losses through fair value adjustments
At 31 March 2022		 2022
£
100,000
20,000
120,000

Investment property relates to one property at Walnut Gardens, East Leake. The fair value of the investment property has been arrived at on the basis of the sale price of similar properties on the same road.

W J YAPP BEQUEST - DERBYSHIRE HOUSE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

14 Fixed asset investments

Cost or valuation
At 1 April 2021
Additions
Valuation changes
Disposals
At 31 March 2022
Carrying amount
At 31 March 2022
At 31 March 2021
15
Debtors
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
16
Creditors: amounts falling due within one year		 Listed
investments
£
652,052
18,393
11,633		 Listed
investments
£
652,052
18,393
11,633
(23,549)
658,529
658,529
652,052
2021
£
9,628
5,058
14,686
2021
£
12,135
-
39,362
51,497
2021
£
2022
£
5,064
6,539
11,603
Trade creditors
Other creditors
Accruals and deferred income
17
Deferred income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities		 2022
£
18,545
22,256
48,545
89,346
2022
£
(9,085) (10,192)

W J YAPP BEQUEST - DERBYSHIRE HOUSE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

17
Deferred income
Deferred income at 1 April 2021
Released from previous periods
Resources deferred in the year
Deferred income at 31 March 2022		 (Continued) (Continued)
(10,192) (8,259)
10,192 8,259
(9,085) (10,192)
(9,085) (10,192)

18 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 April 2020
£
Capital grant
24,391
Social grant
275
24,666		 Balance at
1 April 2020
£
Capital grant
24,391
Social grant
275
24,666		 Balance at
1 April 2020
£
Capital grant
24,391
Social grant
275
24,666		 Movement in funds Movement in funds Movement in funds Movement in funds Movement in funds
Incoming
resources		 Resources
expended		 Balance at
1 April 2021		 Incoming
resources		 Resources
expended
31		 Balance at
March 2022
£ £ £ £ £ £ £
9,517 3,787
24,391 (5,858) 28,050 (4,843) 26,994
275 - - 275 - - 275
9,517 3,787
24,666 (5,858) 28,325 (4,843) 27,269
19
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2022
2022
£
£
Fund balances at 31
March 2022 are
represented by:
Tangible assets
2,196,780
21,637
Investment properties
120,000
-
Investments
658,529
-
Current assets/(liabilities)
433,975
5,632
3,409,284
27,269		 Total
Unrestricted
funds		 Restricted
funds		 Total
2022 2022 2022 2021 2021 2021
£ £ £ £ £ £
2,196,780 21,637 2,218,417 2,168,605 22,693 2,191,298
120,000 - 120,000 100,000 - 100,000
658,529 - 658,529 652,052 - 652,052
433,975 5,632 439,607 434,609 5,632 440,241
3,409,284 27,269 3,436,553 3,355,266 28,325 3,383,591

20 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

In 2022, expenses totalling £145 (2021: £nil) were reimbursed to 1 trustee (2021: no trustees) during the year in regard to stationery and Zoom meeting fees.

W J YAPP BEQUEST - DERBYSHIRE HOUSE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

21 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2022 2021
£
39,591
3,103
42,694
2021
£
185,808
-
£
3,103
-
3,103
22
Cash generated from operations		 2022
Surplus for the year
Adjustments for:
Fair value gains and losses on investment properties
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in debtors
Increase/(decrease) in creditors
Cash generated from operations		 £
52,962
(20,000)
(11,632) (70,726)
62,035 55,093
36
3,083
37,849 (3,198)
167,013
124,297