**CHARITY REGISTRATION NUMBER: 1168707** ## **The Henry Lonsdale Trust Financial Statements 31 March 2022** ## **SAINT & CO** Chartered Accountants & statutory auditor Sterling House Wavell Drive, Rosehill Carlisle, Cumbria CA1 2SA ## **The Henry Lonsdale Trust** ## **Financial Statements** ## **Year ended 31 March 2022** ||**Page**| |---|---| |Trustees' annual report|**1**| |Independent auditor's report to the members|**16**| |Statement of financial activities|**20**| |Statement of financial position|**21**| |Statement of cash flows|**22**| |Notes to the financial statements|**23**| |**The following pages do not form part of the financial statements**|| |Management Information|**38**| ## **The Henry Lonsdale Trust** ## **Trustees' Annual Report** ## **Year ended 31 March 2022** The trustees present their report and the financial statements of the charity for the year ended 31 March 2022. ## **Reference and administrative details** |**Registered charity name**|The Henry Lonsdale Trust| |---|---| |**Charity registration number**|1168707| |**Principal office**|Rosehill Residential Home| ||Aglionby| ||Carlisle| ||CA4 8AA| |**The trustees**|| ||C Bowditch| ||J Riddle (Vice-Chairman)| ||J Mallinson (Chairman)| ||J Leith| ||J Bell| ||C Stothard| ||A McKerrell| |**Auditor**|Saint & Co| ||Chartered Accountants & statutory auditor| ||Sterling House| ||Wavell Drive, Rosehill| ||Carlisle, Cumbria| ||CA1 2SA| |**Bankers**|HSBC Plc| ||English Street| ||Carlisle| ||Cumbria| ||CA3 8JX| **- 1 -** ## **The Henry Lonsdale Trust** **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 March 2022** ## **Solicitors** Burnetts Solicitors Victoria House Wavell Drive Rosehill Carlisle CA1 2ST ## **PREAMBLE** The Trustees' Annual Report covers the activities of the CIO over the period of 12 months to the 31 March in each year marking the financial year end. The CIO has since 1991 operated two residential homes for the elderly; Rosehill and Barn Close. Towards the end of the period covered by this Annual Report, Barn Close was formally closed on 23 March 2022, and formally de-registered with effect from 24 March 2022. As from that date, the CIO has operated a single home for the elderly, Rosehill. In view of the fact that for virtually the whole of the period covered by this Annual Report, the CIO operated two residential homes for the elderly, the Report will refer to "homes" in the plural. The Report should however be read in the context that since the 24 March 2022 the situation has changed, Barn Close has closed, and the CIO now operates a single Home, Rosehill, as from the 24 March 2022. ## **Structure, governance and management** ## **1.1 Trustees** The Trustees who served during the year, all of whom are volunteers, were as follows: Mr J Mallinson (Chairman) Mrs J Riddle (Vice Chairman) Mr J Bell Mrs C Bowditch Ms J Leith Mrs A V McKerrell Mr C Stothard ## **1.2 The Governing Document and the Constitution of the CIO** The CIO is a charitable incorporated organisation and is governed by a constitution dated 10th August 2016. It was set up to take over from The Henry Lonsdale Charitable Trust (charity number 508840). The transfer of the assets from the predecessor charity to the CIO took place on 31st October 2018. The charitable purposes of the CIO are identical to those of the unincorporated charity. The Henry Lonsdale Charitable Trust was formally merged with the CIO on the 5 October 2020 and the predecessor Trust ceased to exist from that date. The information in this Trustees' Report relates to the period from 1 April 2021 to the 31 March 2022, the third full year of operation of the CIO. ## **1.3 Appointment of Trustees** There should be not less and not more than three appointed Trustees; and not less and not more than four Nominated Trustees. Cumbria County Council or any successor body which has responsibility for adult social care ("the appointing body") is entitled to appoint four Nominated Trustees, each appointment being for a term of three years. Apart from the first Charity Trustees, every appointed Trustee must be appointed for a term of three years by **- 2 -** ## **The Henry Lonsdale Trust** ## **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 March 2022** a resolution passed at a properly convened meeting of the Charity Trustees. In selecting individuals for appointment as appointed Charity Trustees, the Charity Trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO. All newly appointed Trustees undertake induction and training as appropriate to their needs. This includes guided visits to the Homes operated by the CIO and to its administrative headquarters to view the properties, meet the residents and staff and become familiar with the aims of the CIO and its ethos. Additionally, new Trustees are provided with a copy of the most recent Annual Report of the CIO and are sent copies of its policies and procedures relating both to residents and staff. When a a Trustee's term of appointment expires, assuming he/she is willing to continue to act and remains eligible to do so, the Trustee is asked to confirm that there has been no change in his/her circumstances which would affect his/her ability to act as well as confirming that he/she is able to take up re-appointment from the relevant date. A compliance file in respect of each Trustee is held at each Home. Enhanced Disclosure and Barring Service checks are obtained in respect of each Trustee. On 9 March 2022, Cumbria County Council re-appointed the four existing Nominated Trustees for a further term of three years on expiry of their current terms in 2022. These appointments were confirmed by the Trustees of the CIO at their meeting on 7 June 2022. At the same meeting, the Trustees re-appointed two existing Appointed Trustees for further terms of three years on expiry of their current terms in 2022. The net effect is that the six re-appointed Trustees will hold office until dates in 2025. Under the current constitution of the CIO, this will be their final terms of office. The Trustees of the CIO are actively considering succession planning to provide for a measured and planned transition to the Trustees who will follow. ## **1.4 Organisational and Decision-Making Structure** The CIO's two residential homes were each managed by a Registered Manager to whom operational decisions are devolved. Ultimate responsibility rests with the Trustees, who take all decisions, related to the policy and strategy of the CIO. All matters requiring Trustee consideration and/or decision are brought to meetings of the Trustees. Trustees meet as and when required, but typically there is a quarterly meeting schedule. ## **1.5 Risk Management** The major risks to which the CIO is exposed, as identified by the Trustees, have been subjected to detailed consideration. Systems and procedures have been established to mitigate those risks. **- 3 -** ## **The Henry Lonsdale Trust** ## **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 March 2022** ## **Objectives and activities** ## **2.1 The Object of the CIO** The object of the CIO is the relief of needy elderly people in one or more of the following ways - by the provision and maintenance of a Home or Homes for elderly persons of limited means; - by the provision of day and respite care centres for elderly persons of limited means; - by the provision of financial assistance and other services for elderly persons of limited means who require - those services or assistance by reason of their age and limitation of means. ## **2.2 The Aims of the CIO** The principal aim of the CIO until recently has been to provide high quality, professional residential care at two Homes for elderly persons of limited means at Rosehill and Barn Close, Carlisle. When it became actively operational (on 31 October, 2018) the CIO became responsible for the ongoing management of the Homes and the Care Quality Commission ("CQC") license transferred to the CIO. Access to the CIO's Homes has been available to all elderly persons in respect of whom, following formal assessment, the CIO is satisfied that it can provide the appropriate level and type of care that the Home in question is registered to provide. Decisions as to admission to residence are made regardless of such matters such as personal background, faith or personal circumstances. Access to the facilities provided within the Homes is similarly 'open to all'. Through those activities, the CIO seeks to care for such elderly persons and enhance the quality of the later stages of their lives. The care provided by the CIO is thus related to the particular needs of its beneficiaries and to the CIO's aims. The CIO's aims are, therefore, capable of being charitable in that they fall within the descriptions of purposes in the Charities Act 2006: relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantage. The Trustees have had regard to the Charity Commission's guidance on public benefit and are satisfied that the principles of public benefit set out by the Charity Commission are met: ## Principle 1: an identifiable benefit or benefits The benefits are the provision of accommodation and care to elderly persons. The operation of a care home is a legitimate means of relieving the needs of the aged and/or infirm. Those benefits are related to the CIO's aims in that they arise as a direct result of the CIO pursuing its charitable aims. The care provided by the CIO is related to the particular needs of its beneficiaries and to the CIO's aim and all beneficiaries are assessed for care need before entering one or other of the CIO's two Homes. There is no evidence of any (let alone significant) detrimental or harmful effects arising from the CIO carrying out its aims. ## Principle 2: benefit must be to the public or a section of the public The CIO's primary beneficiaries are the residents in its Homes. They are "needy" and "elderly". The beneficial class is, therefore, clearly appropriate to the charitable aims of the CIO as there is an obvious connection between the aim and the residents who are in need of care. Barn Close closed on the 23 March 2022. There had ordinarily been 76 residential placements available across the two homes; 40 EMI beds at Rosehill and 36 physically frail at Barn Close. Anyone who, by reference to the registration requirements of the respective Homes, was eligible to become a resident will be considered for residence. The CIO also provides support to beneficiaries who are not resident in the Homes by way of grant funding, to support the activities of Age UK Carlisle and Eden (see 2.6 below). **- 4 -** ## **The Henry Lonsdale Trust** ## **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 March 2022** The opportunity to benefit is not unreasonably restricted. Indeed, the only restriction derives from the object of the CIO, which is directed at people who are "needy" and "elderly". Geographical restriction: There is no express geographical restriction in the stated objects of the CIO that is applied to the opportunity to benefit. In practice, for obvious reasons, most of the residents are people from Carlisle. The CIO does, however, accept into its Homes residents from elsewhere in the Country. This typically arises where members of the resident's family are themselves resident in or around Carlisle. Residents' needs: As mentioned above, residents are only admitted to one or other of the two Homes following an assessment of their needs so as to ensure that the particular Home can provide adequate care. The need for care of each beneficiary is assessed at the time of admission. The CIO does not provide access to residence for those in need of full medical or nursing care as it is not registered to provide such care. Charges: While the CIO does charge fees, seeking contributions to fees for residential care is expressly provided for in its founding charitable Scheme. For many years the CIO adopted, as the fee that it would seek from all residents, the fee set from time to time by Cumbria County Council as the fee that it, as Social Services Authority, paid to the CIO in respect of those residents who were funded by that Council. In the year ending 2016, the Trustees decided with some reluctance and following consultations with residents and their families, that as a result of continuing and increasing financial pressures on the sector, the weekly fee charged to privately-funded residents would be increased by a supplement over the fee paid by the County Council in respect of Social Services funded residents. The Trustees resolved at their meeting on the 5 February 2020 to increase the supplement top up fee payable by privately-funded residents to £100. On 1 March 2022, the Trustees resolved to increase the supplement top up fee payable by privately funded residents to £150 per week with effect from 1 April 2022. Local authority funding can be available to meet the full fees of prospective residents who are unable to pay from their own resources. There are therefore opportunities for which those who are unable to afford the charges sought by the CIO can benefit from the CIO's provision. As such, there is no restriction based on ability to pay. Thus, taking into account what is reasonable and appropriate in the circumstances, the Trustees are satisfied that the CIO does provide sufficient opportunity to benefit in a material way for those who cannot afford the financial contributions that it seeks from its residents towards the provision of care and facilities as provided in its founding Charitable Scheme. Taking together the above considerations, the Trustees are satisfied that the restrictions on people who have the opportunity to benefit are rational and justifiable and that the opportunity to benefit is not unreasonably restricted by geographical or other factors. The CIO does not provide private benefits to people other than its beneficiaries. ## **2.3 The Objectives of the CIO** In setting the objectives for the CIO and planning its strategies and activities referred to in this Report, the Trustees have given careful consideration to the Charity Commission's general guidance on public benefit. The principal objectives of the CIO can be summarised as follows: - provision of high quality, professional residential care; - enhanced training for all staff; - open and accessible management and dialogue with staff; **- 5 -** ## **The Henry Lonsdale Trust** ## **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 March 2022** - introduction of appropriate staff policies and training; - improvement, refurbishment and maintenance (planned and reactive) of its two Homes. ## **2.4 The Strategies of the CIO** During normal years, the CIO's strategies for achieving the above objectives during normal years include, for example, providing staff with such training as is necessary and appropriate both 'in-house' and through relevant external providers. The CIO's policy aim is to try to exceed the requirement of the Care Standards Act 2000 and the expectations of the Care Quality Commission ("CQC") by encouraging all care staff to achieve at least the Health Social Care Diploma Level 2. The CIO similarly aims normally to ensure that suitable training is provided for its administrative staff who are encouraged to pursue relevant courses of training. It is through a combination of the material environment and the training of staff that quality residential care is provided to the residents. The situation since March 2020 has been far from normal due to the COVOD 19 epidemic. The effects of COVID 19 have, by common consent, been amongst the most acute on those operating within the residential care sector. The primary goal has had to be the health and safety of the residents and staff which, for obvious reasons, has impacted on the hitherto normal training opportunities. The CIO did appoint an in-house trainer on the 6 April 2021 but due to the COVID 19 emergency she had to focus on front line care work. She has since left. The CIO will continue to aim to provide the best training which the situation and the environment permits. As the situation with COVID 19 continues to ease this will allow greater opportunity to focus on training again. ## **2.5 Significant Activities** The nature of the CIO is not such that it undertakes, in particular years, specific programmes or projects to achieve its objects and further its aims. Rather, the role and activities of the CIO are more ongoing in nature, reflecting the respective needs of the elderly persons for whom it provides care. The significance of the activities of the CIO, therefore, is that it continues to provide high quality care rather than that it undertakes any 'one- off' programmes or projects of particular importance during any particular year. The Trustees do aim to continue to enhance the service on an ongoing basis. During the Year in question the ability to do so was severely affected by the COVID 19 virus. The inability to recruit and retain staff led to the decision to close Barn Close. The easing of COVID 19 pressures is now evident and, though it is right to be cautious, the position with regard to Rosehill remains manageable and optimistic. ## **2.6 Grant-making Policy** The original object of the CIO was directed at the provision of a residential care home. That object was amended in 1992 to include the relief of needy elderly people by the provision of financial assistance. In accordance with this amendment the Trustees agreed, in 2016, to make a grant to Age UK Carlisle and Eden to fund a Carlisle-based Information and Advice Officer, employed by that Charity, for a period of three years expiring on the 30 June 2019. The Trustees then agreed to make a further grant to Age UK Carlisle and Eden in the order of £86,740 to continue the service for a further period of three years commencing on the 1 July 2019. This was renewed to the 30 June 2022, and has now been renewed again in similar terms to the 30 June 2025. As that is the only grant made by the CIO, it does not have a formal grant-making policy. Instead, the Trustees maintain close scrutiny of the service provided by receiving regular reports of its activities. **- 6 -** ## **The Henry Lonsdale Trust** ## **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 March 2022** ## **Achievements and performance** ## **3.1 Charitable Activities: Performance against Objectives** ## (i) Formal assessment As mentioned above, the key objective of the CIO is to provide high quality, professional residential care. The best measure of whether the performance of the CIO achieved that objective can be drawn from the reports of formal inspections undertaken from time to time at the Homes by CQC, and from less formal ongoing liaison with the CQC. The Registered Managers have maintained good links with the CQC and Cumbria County Council (the Social Services Authority) and enjoyed positive feedback in the process. The Trustees normally have a system of monthly rota visits to the Homes resulting in each of the Trustees undertaking two visits at each of the Homes during the year. This arrangement had, for obvious reasons, to be suspended during the Year in question because of COVID 19 but is now cautiously being restored. The Chair and Vice Chair of the Trustees remained in close contact with the Registered Managers during the Year offering their close support. ## (ii) Informal assessment Less formal measures of the extent to which the CIO's performance achieves its objectives can be drawn, first, from the fact that places within the Homes have been much sought after either by potential residents themselves or their families and professional carers and, secondly, from the many letters of appreciation that are received. Slightly more formally, the Managers would from time-to-time issue Quality Assurance Questionnaires to residents, relatives, visitors and representatives of relevant professional agencies. A good return of the questionnaires is normally achieved with the vast majority of responses being very positive and complimentary. Negative comments have rarely been made but any that are received are swiftly looked into and resolved. During the Year in question, visiting had to take second place to the need to prioritise the health and safety of residents with the result that the opportunity for visitor feed-back was significantly limited. The opportunity for feedback should improve as restrictions continue to ease. Nevertheless, the efforts of all staff in very difficult circumstances were very much appreciated by residents and their families alike, as well as by the Trustees. ## (iii) Other achievements Additionally, the Trustees consider that the following achievements are worthy of particular mention. These apply in normal years and were followed as much during the Year in question only in as much as the COVID 19 situation allowed. In some cases, because of the need to protect the well- being of residents and staff, the opportunities during the Year in question were very limited. ## Residential Care (a) Central to the activities of the CIO was the wish to continue provision of two high quality Homes for elderly people to the North (Barn Close) and East (Rosehill) of Carlisle. Unfortunately, it did not prove possible to continue to operate Barn Close which closed in March 2022 as another high profile casualty of COVID 19 in the residential care sector. High quality care is of increasing importance given the increasing frailty of residents coming into residential care. This remains the standard aim for the provision of care at Rosehill going forward. (b) The CIO continues to embrace the standards for care homes laid down by the Health and Social Care Acts **- 7 -** ## **The Henry Lonsdale Trust** ## **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 March 2022** 2008 and 2012 to the benefit of its residents, and complies with a standard contract with Cumbria County Council, which regulates residential care services provided by the CIO. (c) The fabric of the Homes is maintained in keeping with the high standards of care provided for the residents by the CIO and its employees. The Trustees keep this under regular review and approve funding for refurbishment across both Homes as and when a potential and/or actual need is identified. The opportunities during the Year in question were more limited for obvious reasons. (d) Improved and innovative activity programmes and measures to provide enjoyment and stimulation for residents and their carers at both Homes have always received a high priority. Unfortunately, due to COVID 19, the ability to do so was severely affected during the Year in question but innovative and compensatory events were arranged. (e) The CIO has continued its policy (unlike many other residential care homes) of not charging residents for basic toiletries. (f) Residents at both Homes have continued to present as being increasingly frail thus needing extra support from staff. Unsurprisingly, this has led to an increased call on the time and expertise of staff to ensure that the requisite standards were maintained and this has been carefully and appropriately managed. ## Staffing (a) One of the major problems facing the residential care sector as a result of COVID 19 has been that of recruitment and retention of staff. The reasons for this will no doubt be the subject of formal and detailed enquiry in due course, but there is no doubt that having to work for over two years under high pressure conditions due to COVID 19 has taken its toll of staff. It has been well reported in the press generally that staff have been leaving the residential care profession for less stressful occupations. This has led to a crisis in the residential care sector with many homes closing. (b) The usual mechanisms for supplementing labour shortages is no longer there. The pool of those interested in working in the profession has severely contracted. Agencies have not been able to provide sufficient personnel of the right calibre and even where this is a possibility the cost is high. Access to a foreign workers has not been remotely as easy as it was in the past due to Brexit. (c) During the Year in question, both Rosehill and Barn Close experienced significant pressures on staff numbers and morale. It proved possible to manage the situation at Rosehill with thanks in no small measure to the commitment of existing staff. The closure of Barn Close allowed for some staff to transfer to Rosehill. The crisis in residential care staffing generally is bottoming out and so, for the reduced number of care homes which remain, the problem of recruitment seems to be less acute than it it was. (d) The Trustees approached the staffing crisis at Barn Close responsibly and with the degree of urgency which the situation demanded. The first step was to try to explore all options which would enable Barn Close to continue in operation. This included close liaison with CQC and Cumbria County Council. It included consultation with staff, residents and their families. It included consideration of a potential third party interested in taking on the undertaking. It included considering alternative models of operation such as a reduced sized operation operating with less residents and staff. It was only after all possible options had been explored and all consultations had been concluded that a formal decision was made that Barn Close should close. Once the decision was taken, all requisite notices were issued and the governing principle was to manage the transfer of remaining residents to alternative accommodation in as sensitive and understanding a way as possible. The same applied to securing the commitment of staff to continue to work at Barn Close for as long as there was a need to facilitate this process. (e) During the Year in question, the opportunities for staff training and education (both externally and internally) were severely impacted by reason of the COVID 19 emergency. The priority remained to protect the health and wellbeing of residents and staff. The aim remains to maintain a standard of excellence of service by **- 8 -** ## **The Henry Lonsdale Trust** ## **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 March 2022** good training and education for staff as the COVID 19 situation permits (f) The CIO had, until March 2022, two Registered Managers; one for each Care Home but who acted jointly in relation to day-to-day management issues affecting the CIO as a whole. They were each answerable in relation to the budgets for their respective Homes and had power to spend up to £5,000 on a single item or a combination of related items; albeit with spending monitored by the Chair. (g) The maintenance of an effective administration system falls within the remit of the Senior Administrator previously under the supervision of the two Registered Managers but, going forward, under the sole Registered Manager (h) The CIO considers training of staff to be an important priority. The CIO has previously set a target that all care staff (as opposed to the 50% referred to in the National Minimum Care Standards) should be trained to the Health and Social Care Diploma Level 2 (which replaced NVQ Level 2 in January 2011). The priorities of dealing with the COVID 19 emergency have inevitably meant a deflection from the priority of training but it remains a renewed goal going forward as pressures ease and flexibility increases. (i) Additionally, one Domestic Assistant has achieved the Level 1 qualification, and all Care Officers have achieved at least the former NVQ Level 3 award. Due to recruitment difficulties, the Trust has relaxed its requirement that all newly appointed night care staff should already hold the Level 2 qualification, and in contrast to previously, neither Deputy Manager currently holds an NVQ level 4 or Residential Manager's Award. All employed staff who do not have an NVQ2/Diploma level 2 are required to to undertake the Care certificate, and are given the opportunity to gain an NVQ/Diploma in Health and Social Care. A policy of continuous staff improvement remains a high priority. (j) More generally, ongoing mandatory and other training has been provided to staff in respect of, for example, first-aid, fire prevention and fire warden, challenging behaviour, dementia awareness, bereavement awareness, a CHESS (Care Home Effective Support Service) education programme, control of infection, nutrition and malnutrition, safeguarding vulnerable adults, safe handling and administration of medication, food hygiene, handling and lifting, end of life care, palliative care and equality and diversity. Additionally, the few staff who do not hold Health and Social Care Diploma complete the Care Certificate qualification. All in all, there is no member of the CIO's staff who has not participated in some form of training during the year. The practice of 'Train the Trainer' (whereby key staff attend external training and then roll out or 'cascade' what they have learned to other staff) has been particularly beneficial in that when staff who have been trained then provide training to other staff, money that would have been spent on an external training provider is saved and, importantly, the training is better suited to the staff as it is focused upon their working environment. (k) The CIO has traditionally been considered to be a good employer, and its wage and salary structure has normally found it operating at above average for the industry. During the year in question, and in response to the recruitment and retention-of-staff crisis, in November 2021 the Trustees increased the hourly rate of pay by £1.20 as a temporary measure until the end of March 2022. In March 2022, the Trustees confirmed that the increase would remain permanent to dovetail with the increases in the National Living and National Minimum Wages coming into force on the 1 April 2022. The Trustees paid staff a Christmas Bonus, and offered a loyalty incentive to Barn Close staff to stay for as long as there was a need for their services prior to closure to ensure adequate care for residents transitioning to other establishments. Staff remuneration was not the reasons for the problems of staff retention and recruitment at Barn Close. (l) The position during the Year in question meant that working conditions for staff due to COVID 19 continued to be extremely challenging and difficult, from having to wear uncomfortable PPE to having to work within a constrained and isolated environment. Overall, staff responded magnificently but the situation only exacerbated the problems of recruitment and retention of staff. (m) The reduction in private sector providers willing to service local authority clients has also meant that there **- 9 -** ## **The Henry Lonsdale Trust** ## **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 March 2022** is increasing competition between those providers that remain for the best staff, and the CIO has not been immune to approaches made to its staff by others in the sector. The overall effect of these trends has made the CIO less of a preferred choice than has previously been the case. (n) There was some dissatisfaction expressed by certain staff with the management at Barn Close, but this did not echo the esteem with which the Home was regarded by CQC, Cumbria County Council, the residents and their families. Indeed, there was strong pressure from some residents and their families during the consultation process to keep the Home open because of the excellence of the service it provided. It would be fair to say that Barn Close was regarded as one of the best Homes in the region, and the news that it was joining several other homes in closing indicated just how serious and industry-wide the problem of recruitment and retention has been. (o) The CIO has participated in the Care Apprentice Scheme to the mutual benefit of the CIO and the individuals concerned. (p) The CIO had been looking to expand its in-house maintenance provision, but the closure of Barn Close and the halving of the overall operation of the Trust has resulted in the Trustees undertaking a comprehensive review of needs going forward. This is ongoing. (q) During the year in question, the CIO continued to be serviced and advised by its professional advisors in their respective fields of expertise. At its meeting in June 2021, and after considering the options, the Trustees decided to award a three year contract to a new external provider for an HR and Health and Safety Service. The new provider proved unable to respond with sufficient urgency to the needs of the CIO as 2022 progressed and the arrangement was brought to an end. By agreement, the previous provider agreed to resume providing a service for a period of one year until October 2022 when the position will be reviewed. ## Finance and Administration (a) The previously improved arrangements with regard to setting an annual budget and then carefully monitoring expenditure against that budget have been continued. (b) Financial contributions from residents towards their care have been maintained in line with the policies of Cumbria County Council, although (as described above) the weekly supplement charged to privately-funded residents in excess of the amount paid by Cumbria County Council for Social Services residents was reviewed and further amended effective from 1 April 2022. In this regard, consideration is given at all times to the charitable status of the CIO and its objects. (c) The Trust's Financial Statements have continued to be professionally audited with nothing untoward being noted in respect of either income or expenditure. The Trust made a deficit of £646,789 for the year ending 31 March 2022. (d) The Trustees have continued to attend to various matters pursuant to SORP 2015: for example, Risk Assessment, Investment Policy and Policy on Reserves. (e) The Trustees continue to review the investment strategy with guidance and information from their Investment Adviser. (See further details below). (f) In October 2017, the Trustees undertook a financial review of Trust priorities as a result of the growing discrepancy between the real costs of providing residential care and the fees charged. This differential resulted from a number of external factors; not the least of which was the more restricted contributions which the local authority felt constrained to make in relation to its nominated residents. This resulted in policy changes to the fee structure and the payment of a supplement by private fee paying residents. (g) The rate paid by local authorities for residents placed by them with third party residential care providers has become increasingly problematical, and increasingly divorced from the real cost of providing care for such **- 10 -** ## **The Henry Lonsdale Trust** ## **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 March 2022** residents. This has resulted in no small measures to investors leaving the residential care sector and homes closing. This creates an increasingly scarce resource set against an increased demand for that resource. This, in turn, leads to increased costs as providers compete for the dwindling number of staff in the market. (h) The CIO is a charity and is not required to make a profit. Its duty is to fulfil the aims of the Trust making decisions which are designed to best achieve the aims of the Trust and meet the needs of the beneficiaries. The provision of residential care for the elderly in need is only one of the permitted purposes under the Trust. Going forward, the Trustees will keep under close review the question of how best to achieve the aims of the Trust to the maximum the benefit to the beneficiaries. (i) The Trustees keep under review the rates of pay payable to staff, and the terms and conditions employment, with the aim of being a good and fair employer within the sector. ## Property & Premises (a) The Trustees have continued their stewardship of the CIO's buildings and estate through an ongoing programme of refurbishment and building maintenance. (b) The Trustees have continued to address a number of other property-related issues away from the main estate comprising, until March 2022, the two Homes but now only the Rosehill Home. (c) The property, Barn Close, had been leased to the Trust by Cumbria County Council in 1991. Following the decision to close Barn Close, and in accordance with the terms of the lease, the County Council accepted a surrender of the lease from the CIO. The property and keys have accordingly been returned to the County Council. (d) The Trustees entered into an Option Agreement in 2015 with a local housing developer to sell part of the CIO's investment land and took advice from specialised Chartered Surveyors to ensure the Trust's interests were maximised. This progressed more slowly than expected with the planning process still incomplete by the expiry of that option, and the developer renewed the option. 2021 saw a change in market conditions which allowed the developer to proceed with its plans and seek to agree a purchase of the land. The Trustees took professional advice for the purpose of the negotiations and at a specially convened meeting of the Trustees on 20 April 2021, the Trustees approved the terms for the sale of the land to the developer. The current target, subject to planning permissions etc, is to complete the sale by the end of the first quarter of 2022. The sale has not yet been completed. The purchaser is currently addressing newly introduced statutory considerations with the local planning authority which look like delaying the revised completion date of September 2022. The Trustees receive regular reports on progress and completion is not expected for a number of months yet. ## 3.2 Investments: Performance against Objectives by the Trustees ## (i) Objectives The Trustees long standing objective for its investments has been to try to protect the value of the Trust's capital whilst aiming for some capital growth and a competitive income. The Trust had previously invested principally in two funds: CCLA and Premier Asset Management. The investments were largely a mix of different asset classes including shares which, understandably, resulted in occasional volatility from time to time. The need for astute financial management has become even more acute, firstly, because of the recent history of low interest rates, and secondly (and more up to date), because of the likely impact of COVID 19 and the impact on investments. The need for good advice is even more acute given the forecast that recession is imminent and expected to last until the end of 2023. **- 11 -** ## **The Henry Lonsdale Trust** ## **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 March 2022** Trustees have taken regular guidance from their investment adviser as and when cash is needed and/or when investments reach their maturity date. In 2018/2019, the advisor advised a change in the investment portfolio. He recommended investments in three funds, a Defensive Income Securities Fund, a Social Freehold Fund and a Commercial Freehold Fund, and the Trustees considered and accepted his advice in that respect. In the course of 2019/2020, the adviser invested the funds with Time Investments in accordance with his recommendations and the Trustees approval. He provides regular reports on their performance to the Trustees at their quarterly meetings for their consideration and review. ## 3.3 External Factors There are a number of factors outside the CIO's control, which are relevant to the achievement of its objectives. These include relationships with employees, residents, their families, other carers and professionals, Cumbria County Council (as social services authority), social workers and other employees of that Council and the CIO's position in the wider community. It is pleasing to note that the relationships with all these individuals and organisations are good. The CIO maintains close contact with the Care Quality Commission (CQC) from whom it receives very good and positive feedback, and which is always available for advice and support. As mentioned above, a particular influence of the County Council is that it fixes the fees that it will pay towards the care and accommodation provided by the CIO to residents supported by that Council. The CIO is not in a position to influence the level of fee that is set by the County Council. This fee also impacts upon the contribution that is sought from all other privately funded residents towards the costs of their residence as it provides the base level to which is added the supplement payable by privately funded residents. The concern remains that as the aged population increases, and the likely number of those needing residential care in the future also significantly increases, the gap between what the County Council is willing and/or able to pay, and the actual cost of providing care is likely to grow wider. This will require the Trustees to keep under careful review whether maintaining a residential care home remains the best and/or most cost effective way of meeting the aims of the Trust. ## **Financial review** ## **4.1 Reserves Policy** A detailed breakdown of the CIO's funds is contained in the Financial Statements with a narrative at notes 26 and 27. Total funds of £3,157,732 were held at the year-end of which £1,487,330 can only be realised by disposing of tangible fixed assets or investment property. As Note 26 explains, within the unrestricted funds, the Trust had designated funds of £112,423 as at 31 March 2022. This was to make provision for and enable any future unforeseen emergency repairs. After accounting for the above, this leaves unallocated reserves which are available for use by the CIO totalling £1,557,979. Unallocated reserves are available for use by the CIO totalling £1,557,979. The policy of the CIO is to attempt to maintain sufficient unallocated reserves representing approximately one year's total operating costs (which this year amounted to £2,594,286 (excluding depreciation and exceptional costs)) on the basis of the time that might be necessary to reconstruct the residential Homes following a major incident and the costs relating thereto, particularly in connection with the temporary accommodation of residents. The level of reserves is monitored and reviewed by the Trustees as necessary and at least once each year. **- 12 -** ## **The Henry Lonsdale Trust** ## **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 March 2022** ## **4.2 Principal Funding Sources** The CIO's principal source of funding was the contributions that were received from residents (or from local authorities on behalf of residents) towards the fees of providing them with accommodation and care. The whole of the CIO's expenditure in the year has supported the objectives of the CIO principally the key objective of providing high quality residential care. The greater part of the expenditure is directly related to the provision of such care (primarily staff wages and salaries) with lesser amounts (such as in relation to staff training, maintenance of the fabric of the Homes and management and administration of the CIO) being indirectly related to that objective. As already described above the CIO does make a grant award to Age UK Carlisle and Eden to support for non-residential beneficiaries. During the current and prior year the CIO did not carry out any significant fundraising activities. ## **4.3 Investment Powers** The Scheme authorises the Trustees to make and hold investments using the general funds of the CIO. At 31 March 2022, investments of £5,153 at cost were held with COIF charities investment fund, and £500,000in other investments (i.e. portfolio and long-term savings). Under the terms of the Statement of Recommended Practice, Accounting by Charities, the investments were revalued and as at 31 March 2022 stood at a total market value of £608,133. This comprised listed investments at nil and other investments at £608,133. ## **4.4 Indemnity Insurance** The CIO purchased trustee indemnity insurance as part of their main insurance policy, and therefore the trustees have been unable to determine the associated cost this year. ## **4.5 Policy Considerations** The Trustees are always mindful of their obligations as trustees to act in the best interests of the CIO and to meet the CIO's objectives. Trustees have been very alert to the increasing financial pressures in the sector and have stressed the importance of careful scrutiny of expenditure. In July 2017, the Trustees reiterated those aims by formally adopting the principle of looking at best value from the Trust's service providers, and that policy has continued to be implemented to date. It was mindful of these policy considerations which led the CIO to review the operation of Barn Close and the impact of this on the current and future operation of the Trust. The chronic situation with regard to retention and recruitment of staff, and the continuing day to day pressures on staff arising from the need to protect against the effects of COVID 19, instigated a comprehensive consultation process. The outcome was the decision that Barn Close should close and this was effected in March 2022. ## **Plans for future periods** In looking to the future, it is necessary to put the future in the context of the recent past. The history of the CIO shows that it acquired its second residential Care Home (Barn Close) in 1991 and that it increased the provision of residential care at its first Care Home (Rosehill). In the time that followed, the CIO continued a phase of consolidation and stability. Its fundamental aim was to pursue, on an ongoing basis, its principal activity of providing high-quality residential care. In due course, the CIO added to its activities the making of a grant to Age UK Carlisle and Eden to provide a counselling and advice service to the elderly. COVID 19 first appeared and caught the tail end of the reporting year 2019/2020 such that its impact on that reporting year was negligible. That position changed in year 2020/2021 when COVID 19 had a severe impact on the residential care sector. The two Homes were expertly managed by their managers and dedicated staff such that it was a long time into 2020 before the first cases of COVID 19 affected some of the staff. Isolated incidents notwithstanding, good and effective management of the two Homes against the virus remained the order of the day. **- 13 -** ## **The Henry Lonsdale Trust** ## **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 March 2022** Having said that, the confidence of the general public in the care home sector and its ability to protect against COVID 19, was undoubtedly dented. Despite the good record of both Homes on the COVID19 front, the general public loss of confidence led to some decrease in enquiries and applications for physically frail places at the Barn Close home. This led to the need to make some redundancies at that Home in 2020/2021. The position with regard to the Rosehill Home was that there continued to be a full waiting list for EMI places at that Home. The overall situation improved with the introduction of the successful vaccination programme first announced in November 2020, followed by the implementation of a booster jab in the latter part of 2021. Much as these improvements were welcomed, they did not mask the fact that staff had to continue to work under very difficult conditions. The Annual Report for 2020/2021 ended by stating that the considerable strain under which staff had had to continue to operate should not be underestimated, nor should the impact of this on recruitment and retention. Those words of caution proved very accurate. 2021/2022 saw an escalation in the problem of staffing in the residential care generally, and resulted in the closure of residential care homes across the country, including Cumbria. The two Homes operated by the CIO were not immune to these problems but, generally speaking, it proved possible, through the dedication of staff at the two Homes and all concerned in the operation of the CIO, to manage the situation for a time. By the Autumn of 2021, however, the staffing problems at Barn Close were beginning to look so acute as to lead the CIO to question for the first time whether there was a viable future for the Home. This began a period of consultation and consideration where the goal was to look at all options which might secure the continued operation of the Home. Unfortunately, the outcome of that process was in the negative and the conclusion was reached by the CIO that all appropriate and necessary steps be taken to allow Barn Close to be closed The CIO has reverted to operating a single residential care home, Rosehill. In addition to this activity, the CIO continues to fund the work of Age UK Carlisle and Eden with a commitment to making grants for a further three year period to 2025. At the time of this Report, the recent experience of the Rosehill home has been that recruitment and retention of staff has improved The future for the residential care sector remains uncertain. It remains to be seen whether there will be any further more virulent strains of COVID 19 appearing or whether the situation will continue to be effectively managed by a vaccination programme. There is also concern regarding future funding of local authority placed residents at Rosehill. The disparity between the actual cost and the price which local authorities are prepared to pay has long been a matter of concern, and this has resulted in in many private sector homes withdrawing from the sector and leaving the industry. The CIO is a charity and is not governed by the same profit motive. That having been said, the Charity has a constant duty to act in a way which best meets the needs of the Trust and its beneficiaries. The aim of the CIO is to continue to operate the Rosehill home as it has done since the inception of the Trust. The provision of residential care for the needy elderly is however only one of the permitted activities of the Trust. If the disconnect between local authority funding and the real cost of of provision continues to grow, the CIO will need to review whether it's purpose can be better and more cost effectively be met through any of the other permitted activities. The Annual Report for 2020/2021 mentioned that there had been concern with the quality of the GP service allocated by the CCG to the Rosehill Home. The Home and the Trustees have been liaising with the Clinical Commissioning Group (CCG) in relation to this. The CCG put in hand measures to improve the performance of the relevant service and, initially, these had led to certain improvements though there was concern that, at the time of that Report, there may have been signs of some regression. The CIO is is not oblivious to the severe impact on NHS services caused by COVID 19. The Home and the Trustees will continue to liaise with the CCG and take whatever steps are open to it to ensure that the best possible service is available to the Home. **- 14 -** ## **The Henry Lonsdale Trust** **Trustees' Annual Report** _**(continued)**_ ## **Year ended 31 March 2022** ## **Conclusion** 2021/2022 was the most difficult year in the history of the Trust leading to the closure of Barn Close, one of its two residential care homes. This represents a significant reduction in the operation of the Trust. As best as one can forecast at the present time, the future of the Rosehill home looks to be secure. The CIO is conducting a review of all areas of its staffing and operational costs to ensure that these match the reduced scale of operation of the Trust as a whole and provide a cost-efficient service. The CIO will, in addition, keep under review its operational activities to ensure that these optimise meeting the goals of the Trust. ## **Trustees' responsibilities statement** 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 charity trustees to prepare financial statements for each 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 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 applicable Charities SORP; - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, 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. The trustees' annual report was approved on 20 September 2022 and signed on behalf of the board of trustees by: J Riddle (Vice-Chairman) J Mallinson (Chairman) Trustee Trustee **- 15 -** ## **The Henry Lonsdale Trust** ## **Independent Auditor's Report to the Members of The Henry Lonsdale Trust** ## **Year ended 31 March 2022** ## **Opinion** We have audited the financial statements of The Henry Lonsdale Trust (the 'charity') for the year ended 31 March 2022 which comprise the statement of financial activities, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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: - give a true and fair view of the state of the charity's affairs as at 31 March 2022 and of its 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; - have been prepared in accordance with the requirements of the Charities Act 2011. ## **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. **- 16 -** ## **The Henry Lonsdale Trust** ## **Independent Auditor's Report to the Members of The Henry Lonsdale Trust** _**(continued)**_ ## **Year ended 31 March 2022** ## **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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report. We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion: - the information given in the trustees' report is inconsistent in any material respect with the financial statements; or - adequate accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the trustees' responsibilities statement, 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so. **- 17 -** ## **The Henry Lonsdale Trust** ## **Independent Auditor's Report to the Members of The Henry Lonsdale Trust** _**(continued)**_ ## **Year ended 31 March 2022** ## **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 the audit was considered capable of detecting irregularities including fraud** Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; - To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; **- 18 -** **The Henry Lonsdale Trust** ## **Independent Auditor's Report to the Members of The Henry Lonsdale Trust** _**(continued)**_ ## **Year ended 31 March 2022** - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, the Charity Commission and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. ## **Use of our report** This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity'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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed. Stuart Farrer (Senior Statutory Auditor) For and on behalf of Saint & Co Chartered Accountants & statutory auditor Sterling House Wavell Drive, Rosehill Carlisle, Cumbria CA1 2SA 20 September 2022 **- 19 -** ## **The Henry Lonsdale Trust** ## **Statement of Financial Activities** ## **Year ended 31 March 2022** |||**2022**|**2022**|2021| |---|---|---|---|---| |||Unrestricted||| |||funds|**Total funds**|Total funds| ||**Note**|**£**|**£**|£| |**Income and endowments**||||| |Donations and legacies|**4**|196,733|196,733|202,109| |Charitable activities|**5**|2,498,322|2,498,322|2,585,381| |Investment income|**6**|86,211|86,211|103,868| |||--------------------------------------------|--------------------------------------------|--------------------------------------------| |**Total income**||2,781,266|2,781,266|2,891,358| |||============================================|============================================|============================================| |**Expenditure**||||| |Expenditure on charitable activities|**7,8**|(2,953,286)|(2,953,286)|(2,837,354)| |Other expenditure|**11**|(19,894)|(19,894)|–| |||--------------------------------------------|--------------------------------------------|--------------------------------------------| |**Total expenditure**||(2,973,180)|(2,973,180)|(2,837,354)| |||============================================|============================================|============================================| |Net gains on investments|**12**|30,013|30,013|18,547| |||--------------------------------------------|--------------------------------------------|--------------------------------------------| |**Net (expenditure)/income**||(161,901)|(161,901)|72,551| |||============================================|============================================|============================================| |Exceptional costs incurred on closure of Barn Close|**17**|(484,888)|(484,888)|–| |||--------------------------------------------|--------------------------------------------|--------------------------------------------| |**Net movement in funds**||(646,789)|(646,789)|72,551| |**Reconciliation of funds**||||| |Total funds brought forward||3,804,521|3,804,521|3,731,970| |||--------------------------------------------|--------------------------------------------|--------------------------------------------| |**Total funds carried forward**||3,157,732|3,157,732|3,804,521| |||============================================|============================================|============================================| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. **The notes on pages 23 to 36 form part of these financial statements.** **- 20 -** ## **The Henry Lonsdale Trust** ## **Statement of Financial Position** ## **31 March 2022** |||**2022**||2021| |---|---|---|---|---| ||**Note**|**£**|**£**|£| |**Fixed assets**||||| |Tangible fixed assets|**18**||1,487,330|1,734,105| |Investments|**19**||1,858,133|1,828,121| ||||--------------------------------------------|--------------------------------------------| ||||3,345,463|3,562,226| |**Current assets**||||| |Debtors|**20**|30,854||71,457| |Cash at bank and in hand||196,675||565,129| |||----------------------------------||----------------------------------| |||227,529||636,586| |**Creditors: amounts falling due within one year**|**21**|(415,260)||(394,291)| |||----------------------------------||----------------------------------| |**Net current liabilities**|||(187,731)|242,295| ||||--------------------------------------------|--------------------------------------------| |**Total assets less current liabilities**|||3,157,732|3,804,521| ||||--------------------------------------------|--------------------------------------------| |**Net assets**|||3,157,732|3,804,521| ||||============================================|============================================| |**Funds of the charity**||||| |Unrestricted funds|||3,157,732|3,804,521| ||||--------------------------------------------|--------------------------------------------| |**Total charity funds**|**26**||3,157,732|3,804,521| ||||============================================|============================================| These financial statements were approved by the board of trustees and authorised for issue on 20 September 2022, and are signed on behalf of the board by: J Riddle (Vice-Chairman) Trustee J Mallinson (Chairman) Trustee **The notes on pages 23 to 36 form part of these financial statements.** **- 21 -** ## **The Henry Lonsdale Trust** ## **Statement of Cash Flows** ## **Year ended 31 March 2022** ||**2022**|2021| |---|---|---| ||**£**|£| |**Cash flows from operating activities**||| |Net (expenditure)/income|(161,901)|72,551| |_Adjustments for:_||| |Depreciation of tangible fixed assets|94,933|85,665| |Impairment of tangible fixed assets|298,720|–| |Government grant income|(183,022)|(186,429)| |Net gains on investments|(30,013)|(18,547)| |Other interest receivable and similar income|(86,211)|(103,868)| |Interest payable and similar charges|34|194| |Loss on disposal of tangible fixed assets|19,894|–| |Accrued income|(34,079)|(162,332)| |Exceptional costs incurred on closure of Barn Close|(484,888)|–| |_Changes in:_||| |Trade and other debtors|40,603|29,919| |Trade and other creditors|56,901|187,788| ||----------------------------------|----------------------------------| |Cash generated from operations|(469,029)|(95,059)| |Interest paid|(34)|(194)| |Interest received, Rental income and Other property related income|86,211|103,868| ||----------------------------------|----------------------------------| |Net cash (used in)/from operating activities|(382,852)|8,615| ||==================================|==================================| |**Cash flows from investing activities**||| |Purchase of tangible assets|(166,771)|(145,980)| ||----------------------------------|----------------------------------| |Net cash used in investing activities|(166,771)|(145,980)| ||==================================|==================================| |**Cash flows from financing activities**||| |Government grant income|183,022|186,429| |Movements in HP and finance lease liabilities|(1,853)|(4,659)| ||----------------------------------|----------------------------------| |Net cash from financing activities|181,169|181,770| ||==================================|==================================| |**Net (decrease)/increase in cash and cash equivalents**|(368,454)|44,405| |**Cash and cash equivalents at beginning of year**|565,129|520,724| ||----------------------------------|----------------------------------| |**Cash and cash equivalents at end of year**|196,675|565,129| ||==================================|==================================| **The notes on pages 23 to 36 form part of these financial statements.** **- 22 -** ## **The Henry Lonsdale Trust** ## **Notes to the Financial Statements** ## **Year ended 31 March 2022** ## **1. General information** The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is Rosehill Residential Home, Aglionby, Carlisle, Cumbria, CA4 8AA. ## **2. Statement of compliance** The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 April 2015. ## **3. Accounting policies** ## **Basis of preparation** The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. The financial statements are prepared in sterling, which is the functional currency of the entity. The CIO meets the definition of a public benefit entity under FRS102. ## **Going concern** There are no material uncertainties about the charity's ability to continue. ## **Judgements and key sources of estimation uncertainty** The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. ## Significant judgements The trustees believe there were no judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have a significant effect on the amounts recognised in the financial statements. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year as follows: - The trustees have estimated the useful economic lives of the categories of assets. - The trustees have estimated the fair value of investment land and property, further details are included in note 19 to the accounts. **- 23 -** **The Henry Lonsdale Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 March 2022** ## **3. Accounting policies** _**(continued)**_ ## **Fund accounting** The charity's general, unrestricted funds are those available for general 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. Restricted funds, of which there were none, are those resources where the income and related expenditure are not available for general use, but are to be used in accordance with the specific wishes of the donor or which have been raised by the charity for a particular purpose. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The trustees have discretion to allocate funds to particular resources as they so wish. The aim and use of each designated fund is set out in the notes to the financial statements. ## **Incoming resources** All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: - Income from Social Services Department of Cumbria County Council, relating to the residents fees, is accounted for on an accruals basis. - Income from private residents is accounted for on an accruals basis. - Income from grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. - Income from donations is recognised when there is evidence of entitlement to the gift, receipt is - probable and its amount can be measured reliably. Income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. **- 24 -** **The Henry Lonsdale Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 March 2022** ## **3. Accounting policies** _**(continued)**_ ## **Resources expended** Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes irrecoverable VAT, and is classified under headings of the statement of financial activities to which it relates: Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis as deemed by the trustees. ## **Value added tax** The charity is not registered for VAT, and Value Added Tax is not recoverable by the charity. As such, it is included in the relevant costs in the Statement of Financial Activities. ## **Operating leases** Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. ## **Tangible assets** Tangible assets are shown as additions; with cost equal to the net book value recognised at the date of transfer to this CIO. Subsequently they will be stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. ## **Depreciation** Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset. The following depreciation rates for assets transferred to this CIO have been applied to the original cost of the assets rather than the transfer value. |Freehold property|-|Over 50 years| |---|---|---| |Leasehold property|-|Over the period of lease| |Furniture and equipment|-|15% reducing balance| |Equipment (Energy generating)|-|Over 20 years| ## **Investments** Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment. Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure. **- 25 -** **The Henry Lonsdale Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 March 2022** ## **3. Accounting policies** _**(continued)**_ ## **Investment property** Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in income or expenditure. If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis. ## **Impairment of fixed assets** A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. ## **Finance leases and hire purchase contracts** Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability. ## **Government grants** Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received. Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability. **- 26 -** ## **The Henry Lonsdale Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 March 2022** ## **3. Accounting policies** _**(continued)**_ ## **Financial instruments** A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised. ## **Defined contribution plans** The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered scheme. The contributions are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. ## **Termination benefits policy** Termination benefits are recognised as an expense in income or expenditure immediately. Termination benefits are recognised as a liability and expense only when the company is demonstrably committed either to terminate the employment of an employee or group of employees before the normal retirement date or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy. ## **4. Donations and legacies** ||Unrestricted|**Total Funds**|Unrestricted|Total Funds| |---|---|---|---|---| ||Funds|**2022**|Funds|2021| ||£|**£**|£|£| |**Donations**||||| |Miscellaneous donations|–|–|646|646| |Donated PPE|13,711|13,711|15,034|15,034| |**Grants**||||| |Government grant income|183,022|183,022|186,429|186,429| ||----------------------------------|----------------------------------|----------------------------------|----------------------------------| ||196,733|196,733|202,109|202,109| ||==================================|==================================|==================================|==================================| **- 27 -** ## **The Henry Lonsdale Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 March 2022** ## **4. Donations and legacies** _**(continued)**_ Donated PPE relates to PPE provided at no charge from the local authority in response to the Covid-19 pandemic. Government grants consist of £4,645 (2021: £14,747) received via the Coronavirus Job Retention Scheme and £178,377 (2021: £171,682) in relation to Residential and Nursing payments. ## **5. Charitable activities** ||Unrestricted|**Total Funds**|Unrestricted|Total Funds| |---|---|---|---|---| ||Funds|**2022**|Funds|2021| ||£|**£**|£|£| |Residential fees|1,545,657|1,545,657|1,763,650|1,763,650| |Local Authority Contributions|952,665|952,665|821,731|821,731| ||--------------------------------------------|--------------------------------------------|--------------------------------------------|--------------------------------------------| ||2,498,322|2,498,322|2,585,381|2,585,381| ||============================================|============================================|============================================|============================================| ## **6. Investment income** ||Unrestricted|**Total Funds**|Unrestricted|Total Funds| |---|---|---|---|---| ||Funds|**2022**|Funds|2021| ||£|**£**|£|£| |Investment income|18,649|18,649|24,175|24,175| |Rental income|17,419|17,419|25,922|25,922| |Other property related income|50,143|50,143|53,771|53,771| ||-----------------------------|-----------------------------|----------------------------------|----------------------------------| ||86,211|86,211|103,868|103,868| ||=============================|=============================|==================================|==================================| ## **7. Expenditure on charitable activities by fund type** ||Unrestricted|**Total Funds**|Unrestricted|Total Funds| |---|---|---|---|---| ||Funds|**2022**|Funds|2021| ||£|**£**|£|£| |Rosehill Residential Home|1,582,367|1,582,367|1,514,516|1,514,516| |Barn Close Residential Home|1,131,343|1,131,343|1,138,714|1,138,714| |Estates|42,370|42,370|33,690|33,690| |Grants payable|29,131|29,131|28,840|28,840| |Support costs|168,075|168,075|121,594|121,594| ||--------------------------------------------|--------------------------------------------|--------------------------------------------|--------------------------------------------| ||2,953,286|2,953,286|2,837,354|2,837,354| ||============================================|============================================|============================================|============================================| **- 28 -** ## **The Henry Lonsdale Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 March 2022** ## **8. Expenditure on charitable activities by activity type** |||Activities||||| |---|---|---|---|---|---|---| |||undertaken|Grant funding||**Total funds**|Total fund| |||directly|of activities|Support costs|**2022**|2021| |||£|£|£|**£**|£| ||Rosehill Residential Home|1,582,367|–|45,879|1,628,246|1,551,430| ||Barn Close Residential|||||| ||Home|1,131,343|–|45,833|1,177,176|1,172,334| ||Estates|42,370|–|4,649|47,019|37,573| ||Grants payable|–|29,131|–|29,131|28,840| ||Governance costs|–|–|71,714|71,714|47,177| |||--------------------------------------------|-----------------------------|----------------------------------|--------------------------------------------|--------------------------------------------| |||2,756,080|29,131|168,075|2,953,286|2,837,354| |||============================================|=============================|==================================|============================================|============================================| |**9.**|**Analysis of support costs**|||||| |||Rosehill|Barn Close|||| |||Residential|Residential|||| |||Home|Home|Estates|**Total 2022**|Total 2021| |||£|£|£|**£**|£| ||Staff costs|36,509|36,509|–|73,018|50,334| ||General office|9,370|9,324|–|18,694|20,199| ||Governance costs|35,857|35,857|4,649|76,363|51,061| |||-----------------------------|-----------------------------|------------------------|----------------------------------|----------------------------------| |||81,736|81,690|4,649|168,075|121,594| |||=============================|=============================|========================|==================================|==================================| |**10.**|**Analysis of grants**|||||| ||||||**2022**|2021| ||||||**£**|£| ||**Grants to institutions**|||||| ||Age UK Carlisle & Eden - Information and Advice Services||||29,131|28,840| ||||||-----------------------------|-----------------------------| ||Total grants||||29,131|28,840| ||||||=============================|=============================| |**11.**|**Other expenditure**|||||| ||||Unrestricted|**Total Funds**|Unrestricted|Total Funds| ||||Funds|**2022**|Funds|2021| ||||£|**£**|£|£| ||Loss on disposal of tangible fixed assets|||||| ||held for charity's own use||19,894|19,894|–|–| ||||=============================|=============================|===============|===============| |**12.**|**Net gains on investments**|||||| ||||Unrestricted|**Total Funds**|Unrestricted|Total Funds| ||||Funds|**2022**|Funds|2021| ||||£|**£**|£|£| ||Unrealised gains/(losses) on revaluation|||||| ||of investments||30,013|30,013|18,547|18,547| ||||=============================|=============================|=============================|=============================| **- 29 -** ## **The Henry Lonsdale Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 March 2022** ## **13. Net (expenditure)/income** Net (expenditure)/income is stated after charging/(crediting): |Net (expenditure)/income is stated after charging/(crediting):||| |---|---|---| ||**2022**|2021| ||**£**|£| |Depreciation of tangible fixed assets|94,934|85,665| |Impairment of tangible fixed assets recognised in:||| |Expenditure on charitable activities|298,720|–| |Loss on disposal of tangible fixed assets|19,894|–| |Staff pension costs|39,035|37,877| |Operating lease payments|28,363|24,375| ||==================================|=============================| ## **14. Auditors remuneration** ||**2022**|2021| |---|---|---| ||**£**|£| |Fees payable to the charity's auditor and its associates for other services:||| |Audit-related assurance services|5,595|5,300| |Payroll|9,087|8,447| |Accountancy|13,390|8,295| ||-----------------------------|-----------------------------| ||28,072|22,042| ||=============================|=============================| ## **15. Staff costs** The total staff costs and employee benefits for the reporting period are analysed as follows: ||**2022**|2021| |---|---|---| ||**£**|£| |Wages and salaries|2,128,547|1,975,164| |Social security costs|144,262|124,526| |Employer contributions to pension plans|39,035|37,877| |Other employee benefits|10,728|–| ||--------------------------------------------|--------------------------------------------| ||2,322,572|2,137,567| ||============================================|============================================| During the year £109,244 (2021: £nil) was paid as redundancy and £48,378 (2021: £458) was paid as lieu of notice to staff members who were made redundant, this has been included in wages and salaries. The average head count of employees during the year was 118 (2021: 125). The average number of fulltime equivalent employees during the year is analysed as follows: ||**2022**|2021| |---|---|---| ||**No.**|No.| |Number of production staff|114|121| |Number of management staff|4|4| ||---------------|---------------| ||118|125| ||===============|===============| The number of employees whose remuneration for the year fell within the following bands, were: |||**2022**|2021| |---|---|---|---| |||**No.**|No.| |£60,000|to £69,999|1|–| |||===============|===============| **- 30 -** **The Henry Lonsdale Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 March 2022** ## **15. Staff costs** _**(continued)**_ ## **Key Management Personnel** Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £122,616 (2021:£103,732). ## **16. Trustee remuneration and expenses** None of the trustees were entitled to or received any remuneration during the year. During the year, no trustees were reimbursed for travelling expenses. Trustees indemnity insurance was purchased by the Trust. ## **17. Exceptional costs incurred on closure of barn close** ||**2022**|2021| |---|---|---| ||**£**|£| |Extraordinary charges|(484,888)|–| ||==================================|===============| Barn Close was formally closed on 23 March 2022, exceptional costs incurred in relation to this were as follows: ||2022| |---|---| ||**£**| |Impairment Loss|(298,720)| |Redundancy Cost|(157,622)| |Professional Fees|(28,546)| ||----------------------------------| ||(484,888)| ||==================================| **- 31 -** ## **The Henry Lonsdale Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 March 2022** ## **18. Tangible fixed assets** |||Long||||| |---|---|---|---|---|---|---| ||Freehold|leasehold|Fixtures and||Assets under|| ||property|property|fittings|Equipment|construction|**Total**| ||£|£|£|£|£|**£**| |**Cost**||||||| |At 1 Apr 2021|885,766|277,751|232,948|417,356|119,584|1,933,405| |Additions|–|–|32,007|134,764|–|166,771| |Disposals|–|–|(34,654)|–|–|(34,654)| |Transfers|–|–|5,200|114,384|(119,584)|-| ||----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|--------------------------------------------| |**At 31 Mar 2022**|885,766|277,751|235,501|666,504|–|2,065,522| ||==================================|==================================|==================================|==================================|==================================|============================================| |**Depreciation**||||||| |At 1 Apr 2021|68,175|9,846|59,877|61,402|–|199,300| |Charge for the year|28,211|4,074|29,974|32,675|–|94,934| |Disposals|–|–|(14,760)|–|–|(14,760)| |Impairment losses|–|263,831|34,889|–|–|298,720| ||----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|--------------------------------------------| |**At 31 Mar 2022**|96,386|277,751|109,980|94,077|–|578,194| ||==================================|==================================|==================================|==================================|==================================|============================================| |**Carrying amount**||||||| |**At 31 Mar 2022**|789,380|–|125,521|572,427|–|1,487,328| ||==================================|==================================|==================================|==================================|==================================|============================================| |At 31 Mar 2021|817,591|267,905|173,071|355,954|119,584|1,734,105| ||==================================|==================================|==================================|==================================|==================================|============================================| ## **19. Investments** ||Investment|Other|| |---|---|---|---| ||properties|investments|**Total**| ||£|£|**£**| |**Valuation**|||| |At 1 April 2021|1,250,000|578,121|1,828,121| |Additions|–|–|–| |Other movements|–|30,012|30,012| ||--------------------------------------------|----------------------------------|--------------------------------------------| |**At 31 March 2022**|1,250,000|608,133|1,858,133| ||============================================|==================================|============================================| |**Impairment**|||| |**At 1 April 2021 and 31 March 2022**||–|–| |||==================================|============================================| |**Carrying amount**|||| |**At 31 March 2022**|1,250,000|608,133|1,858,133| ||============================================|==================================|============================================| |At 31 March 2021|1,250,000|578,121|1,828,121| ||============================================|==================================|============================================| All investments shown above are held at valuation. **- 32 -** ## **The Henry Lonsdale Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 March 2022** ## **19. Investments** _**(continued)**_ ## **Investment properties** The trustees have considered the valuation of the land and buildings surrounding, but not occupied by, the Rosehill Residential Home, with advice from their land agents. The trustees have estimated the value of investment land and buildings to be in the region of £1,250,000. This valuation is based on an estimated price per acres for the agricultural land and expected yield basis for the property. ## **Financial assets held at fair value** All investments have been valued at fair value, for the COIF funds this has been provided by the fund at the year end date. ## **20. Debtors** ||**2022**|2021| |---|---|---| ||**£**|£| |Trade debtors|7,736|34,507| |Prepayments and accrued income|23,118|36,950| ||-----------------------------|-----------------------------| ||30,854|71,457| ||=============================|=============================| |**Creditors:** **amounts falling due within one year**||| ||**2022**|2021| ||**£**|£| |Trade creditors|40,132|35,288| |Accruals and deferred income|306,185|323,127| |Social security and other taxes|63,590|23,968| |Obligations under finance leases and hire purchase contracts|–|1,853| |Pension creditor|3,205|7,907| |Other creditors|2,148|2,148| ||----------------------------------|----------------------------------| ||415,260|394,291| ||==================================|==================================| ## **21. Creditors: amounts falling due within one year** ## **22. Finance leases and hire purchase contracts** The total future minimum lease payments under finance leases and hire purchase contracts are as follows: |||**2022**|2021| |---|---|---|---| |||**£**|£| ||Not later than 1 year|–|1,853| |||===============|========================| |**23.**|**Deferred income**||| |||**2022**|2021| |||**£**|£| ||At 1 April 2021|170,467|158,615| ||Amount released to income|(90,467)|(78,615)| ||Amount deferred in year|107,604|90,467| |||----------------------------------|----------------------------------| ||**At 31 March 2022**|187,604|170,467| |||==================================|==================================| **- 33 -** ## **The Henry Lonsdale Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 March 2022** ## **23. Deferred income** _**(continued)**_ Deferred income includes fee and rental income relating to the following year but received in advance and a land option fee for the sale of a parcel of land which is expected to complete in 2022/23. ## **24. Pensions and other post retirement benefits** ## **Defined contribution plans** The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £39,035 (2021: £37,877). ## **25. Government grants** The amounts recognised in the financial statements for government grants are as follows: ||**2022**|2021| |---|---|---| ||**£**|£| |Recognised in income from donations and legacies:||| |Government grants income|183,022|186,429| ||==================================|==================================| ## **26. Analysis of charitable funds** ## **Unrestricted funds** |**Unrestricted funds**|||||| |---|---|---|---|---|---| |||||Gains and|**At**| ||At 1 April 21|Income|Expenditure|losses|**31 March 22**| ||£|£|£|£|£| |General funds|3,703,846|2,781,266|(3,458,068)|18,265|3,045,309| |Designated Funds|100,675|–|–|11,748|112,423| ||--------------------------------------------|--------------------------------------------|--------------------------------------------|-----------------------------|--------------------------------------------| ||3,804,521|2,781,266|(3,458,068)|30,013|3,157,732| ||============================================|============================================|============================================|=============================|============================================| |||||Gains and|At| ||At 1 April 20|Income|Expenditure|losses|31 March 21| ||£|£|£|£|£| |General funds|3,651,015|2,891,358|(2,837,354)|(1,173)|3,703,846| |Designated Funds|80,955|–|–|19,720|100,675| ||--------------------------------------------|--------------------------------------------|--------------------------------------------|-----------------------------|--------------------------------------------| ||3,731,970|2,891,358|(2,837,354)|18,547|3,804,521| ||============================================|============================================|============================================|=============================|============================================| The trust has designated funds to enable future, unforeseen, emergency repairs. These funds have been invested with CCLA. These funds are unrestricted and amounted to £112,423 (2021: £100,675) at the balance sheet date. **- 34 -** ## **The Henry Lonsdale Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **Year ended 31 March 2022** ## **27. Analysis of net assets between funds** ||Unrestricted|**Total Funds**| |---|---|---| ||Funds|**2022**| ||£|**£**| |Tangible fixed assets|1,487,330|1,487,330| |Investments|1,858,133|1,858,133| |Current assets|227,529|227,529| |Creditors less than 1 year|(415,260)|(415,260)| ||--------------------------------------------|--------------------------------------------| |**Net assets**|3,157,732|3,157,732| ||============================================|============================================| ||Unrestricted|Total Funds| ||Funds|2021| ||£|£| |Tangible fixed assets|1,734,105|1,734,105| |Investments|1,828,121|1,828,121| |Current assets|636,586|636,586| |Creditors less than 1 year|(394,291)|(394,291)| |Creditors greater than 1 year|–|–| ||--------------------------------------------|--------------------------------------------| |**Net assets**|3,804,521|3,804,521| ||============================================|============================================| |**Financial instruments**||| |The carrying amount for each category of financial instrument is as follows:||| ||**2022**|2021| ||**£**|£| |**Financial assets measured at fair value through income and expenditure**||| |Investments (Other than Investment Property)|608,133|578,121| ||==================================|==================================| ## **28. Financial instruments** ## **29. Analysis of changes in net debt** ||||**At**| |---|---|---|---| ||At 1 Apr 2021|Cash flows|**31 Mar 2022**| ||£|£|**£**| |Cash at bank and in hand|565,129|(368,454)|196,675| |Debt due within one year|(1,853)|1,853|–| ||----------------------------------|----------------------------------|----------------------------------| ||563,276|(366,601)|196,675| ||==================================|==================================|==================================| ## **30. Operating lease commitments** The total future minimum lease payments under non-cancellable operating leases are as follows: ||**2022**|2021| |---|---|---| ||**£**|£| |Not later than 1 year|17,490|24,887| |Later than 1 year and not later than 5 years|69,961|99,547| |Later than 5 years|51,555|2,205| ||----------------------------------|----------------------------------| ||139,006|126,639| ||==================================|==================================| **- 35 -** ## **The Henry Lonsdale Trust** ## **Notes to the Financial Statements** _**(continued)**_ ## **31 March 2022** The leasehold property at Barn Close is held under a 99 year lease (expiring 2090). A peppercorn rental is payable per annum if demanded by the lessor. The lease was surrendered in May 2022 with the Trust ceasing to use the property in March 2022. ## **31. Related parties** There have been no related party transactions during the year. **- 36 -**