Charity registration numbèr 1168947 IEngland and Wales) Company reglstration number 09327637 WATERMOOR HOUSE R C H ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 WATERMOOR HOUSE R C H LEGAL AND ADMINISTRATIVE INFORMATION Trustees Dr K B8dcock Earl A C B Bathurst Mrs J Carter DrSROwen MrJ WLamus Charfty number (England and Wales) 1168947 Company number 09327637 Reglstered offi¢e Watermoor House Watemioor Road Cirencester Gloucestershire United Kingdom GL7 1JR Auditor BK Plus Audit Limited 6 Manor Park Business Centre MacKenzie Way Swindon Village Cheltenham Gloucestershire United Kingdom GL519TX WATERMOOR HOUSE R C H CONTENTS Paga Chaimian's ststement Trustees. report Independent audilorfs report 8-10 statement of financial a&iwb'es 11 ststement of financial position 12 statement of cash flows 13 Notes t¢ the financial statements 14-24 WATERMOOR HOUSE R C H CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 AUGusf2025 After a challenging year in 2024, Watermoor House set its targets for this ye8r as one of change under the leadership of our new Home Manager, who we welcomed to Watermoor House at the start of this finanaal year. She was strongly sUPPOrted by our Business & Operations Manager, who joined Walemioor House in thè prèviou3 quarter. Our high-level organi3alional goals werè to reverse the previous year's low occupancy ratès and reboot our company culture to drive both operational improvements and finanaal recovery. We knew these were ambrtious goals that would require strong leadership. persistence, and refom across all aspects of our opÈrations. Throughout all this, we were determined lo maintain a caring, homely. happy atmosphere for Watemioor House residents and we are proud to have achieved this. Administrative improvements achieved induded more nuanced assessment of residents, care need3 prior lo admission, tightening of financial controls, changing stsff training practices to indude more engaging and hands-on training methods and upskilling in areas such a5 dementia management and assessment of mental capaaty, improved staff induction and updating, then embedding in many of our poliaes. Our new Kitchen Manager led a resel of staff worf(ing pra¢tice5 for our catering and improved per50nalisalion of menus to ensure they better meet the individual and varied needs and preferences of our residents. We introduced more visible trustee involvement and built doser relats'onships wth local heaych professionals such as Gloucestershire County Council departments dealing care and support for older people and local GP5 and introduced regular Saturday friends & farnity coffee momings for residents, their friends and family members, trustees and other volunteers and management to mix in an informal setting. As anticipated, some staff had difficuttie$ adjusting to these changes but through trustees and management working t¢gelher wich staff, we have begun to effect real changes in the way Vvatermoor House works. The use Of agency stsff for resident care has reduced to near-zero levels. occupancy rates gradually increased in the year as did our financial outtum, significantly reducing the previous year's deficits. We recognise that we still have a way to go to achieve the balan￿ of residents required to consistenuy generate ongoing surpluses so that we ¢an build reserves and invest in renovations of our beautiful Grade 11 listèd premises and gTounds. We have made a start on these this year as well. Redecoration of our dining room was completed in February with minimal disruption to residents. routines. who now enjoy thè lighter, brighter ambience for meals. An arèa in which Watemioor House has exeelled for many years is end of lif& carÉ. W& moved to elevate this by seeking Gold Standard recognition. Led by our new Home Manager who brought expertise in this area, more fomal training across management and stsff was carried out with extensive dowmentation of the outstanding end of life care d¢livered. We now offer a comfortable, welcorning family room for use by rtlatsves to enable them to remain ose lo residents during their final days. We await our assessment and achievement of the Gold Standard next year. Through all this change, making daily living enjoyable, stimulating and safe for residents continued as usual. Our de programme of in-house activities led by our in-house actiwties coordinators plus entertainers and volunteer5 from the comrnunity, specialist exercise & fitness professionals for physitsl stimulation in a fun setting, celebrations of seasonal festivals and residents, birthdays, local OLrtings and parbcipation in community events is described more fvlly in the Achievement and Performan¢e Section below. Finally, we wish thank residents and their loved ones for all the support they have given us this past year, and we look forward with optimism forthe coming year wth them. DR S R Owen-chair If a02 WATERMOOR HOUSE R C H TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 AUGUST 2025 The trustees who are also directors of the charity for the purposes of tre Companies Act 2006, present their report th the financial statement5 of the Charty for the year ended 31 August 2025 The finanryal statements have been prepared in accordance wth the aceounling policie5 set out in note 1 to the financial statements and cornply with the Charity's governing document, the Companies Act 2006, FRS 102 'The Finanaal Repo￿ng Stsndard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charib"es'. Statement of Recommended Practice applicable to charyiies preparing their accounts in a¢¢ordance Imth the FinancAal Reporting Standard appIl￿ble in the UK and Republic of Ireland IFRS 102)" Objectives and a¢tivitie5 The Company's eharitable objectives are lo provide care for older people in GIou￿St￿r$hl￿', as stsled in our goveming do(xJrnent, 'the relief of the needs of elderfy people by the provision of such housing, care and amenities as appropriate for their conditions of life.. It ¢urrenUy operates a residential home providing a mix of permanent accommodation and respite care for up to 39 elderfy residents in appealing and safe surroundings wth constant care and attention. Our short-term aim is to provide most the requirements to maximisè thè quality ¢f life for our residents at an affordable cost. Our longer-lerm goal is to enable us to ￿ntInue ¢Joing so for Others like them in the fvture. Our strategy to achieve this is to operate eff aenuy at a viable level ¢f att￿panCY wth well trained staff who perforrn their duty'es in a professional yet friendly manner. Our guiding principle is that our Home is our residents, home. W8tèrmoor House currendy prowdes accommodation, meals and domesti¢ services, personal ¢are, ¢ommunal facilrf£ies, a wide range of activities and other serwces to assist residents. daily living in a caring and personal atmosphere. INe arrange visits to and frorn healthcare providers and, unlike many care provideTS, we make no additional charge frjr lran5porb.ng and accompanying residents to hospital and doctovs visits. We provide daily a¢knvities, outing5 for residents and arrangements for hairdressing and chiropody in the Home for residents. In addition to ensuring the smooth running of the Home, the Trustees remain aware of the longer-term changes in the ¢are industry and the need to take appropriate action to remain effiaent and continue to provide care at an affordable cost. Residents tend to come into care later in life. in rn0￿ frail condition requiTrng more intense support. The effects of the pandemie continue to affect our finanrial perfornian￿. To date, no Watermoor House resident has been seriously ill, ￿qUI￿d hospitalisation or passed away from Covid. The Company is a registered tharity. Govemance and strategic lèadérship are provided by the Board of Directors, all of whom are trustees and provide their services as unpaid volunteers. Public benefit In planning the ¢haritsble companl3 activities. the trustees keep in mind the Charity Commission's guidance on public benefiL Ac￿sS to the Home is available to all whether it be as one of our permanent residents or respite dients, or as a visitor on an activity or opèn day. Thè foeus of thé Charity's aetiwb.es during the year Is set tsui below under'achievements and perfomanee., which explains the delivery by the Charity of public benefit. WATERMOOR HOUSE R C H TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Achievèments and perfomiance Significant activities and achievements against objectives W8termoor House RCH subsidises the fees for a significant proporbon of residents who are funded by Social Serwces., well over 40% of residents throughout this year. Additionally, with no discrimination between fvll fe paying dients and others, additional special needs such as a55iSted activities, accompanied transport to medical appointments, spacial diets and assisted feeding are provided at no charge regardle55 of fee status. We hav¢ continued to provide a varied and busy activitès schedule to meet the needs and interests of all our residents well beyond the levels required for adequate care at no charge regardless of fee status. Our dedicated, qualified activities teorn, together with other members of staff, identify activitle5 to meet the different interests of our residents. Thruughout this year they havè worked wth our extemal activities partners and volunteers from the communty lo provide enrichment, stimulation, social interaction and mu¢h joy and laughter amongst residents. Our regular actiwts'es ranged from our adapted yet lively in4)ouse phy8i¢al games and amichair exerasès to suit all ability levels to weekly topical discussion groups and aftemoon filrn 5creenings', from the weekly board games. card games and word garnes sessions to Zoolab visits bringing exotic but tame animals for residents lo hold and interact th, including birds of prey and snakes. Less exotic bL5t still sociable ail d stirriLJlating are card games and themed craft sessions, through lo interactive musical entert3inments, sing-along sessions and even a magic sh¢)w. Our speaal eelebr3tions, activities and meals to mark seasonal holidays have been highlights throughout this year, including our commemoration of Remembrance Day, Easter, Halloween and, of course, Christmas complete w((h an in-house panto. Other regular activities include outings to places of lo¢al interest, joining in church and other community acivities. serapb¢¢k rnaking recalling old memories and recording new ones, crafting individualised fJ¢¢r de¢or¥lions, Chri51rnas decorations for residents, rooms and Christmas table decorations. staff continue to provide 1-tO-1 in-room activty sessions for those who cannot or choose not to join group activrties. Ea¢h residenys birthday is celebrated. We enjoyed several 1 OOth- and more than 100th- birthday parties this year wrth family members and friends from both in outside the Home. The Board monit¢rs performance across all the Home's endeavours. firstly through monthly House and Business reports to set formats. These routinely report and tra¢k ¢ccupancy, enquiries, staff levels, sid(ness and agency US8ge, training, any complaints or reportablè inadenls, quality audits, finanaal perfomiance, business and marketing activity. The Home's management regularfy ask residents to contribute thèir vièws, ttither through resident meetings which are open to sll residents and one-to-one sessions with residents individually. Our financial perfom)anee is highly geared to the level of room occupancy. Increasing overall occupancy whilst improving quality standards has been a key strategic target for Watem)oor Htsuse this ye8r. We monitor this as described above to provide us with an ongoing rneasure of marketing and operational performance which, in a time of natural change in OUT permanent residents, is a measure of the effectiveness of aur eharity's strategy. Our finanaal position this year has improved markedly from increased occupancy levels, Ihgugh not as rapidly as we wislTr.ed. The proportions of privataly fu4dad and local authorty funded residents have rernained stubbomly liY(ed towards a higher proportion of local authority funded residents than that set by our strategic targets. While our overall finan￿81 turnaround this year has been extremely positive, the impact of these two key occupancy measuros slowed il down. However. tre trend is very positive and we expect on our overall finan￿31 recovery to continue in the coming year. WATERMOOR HOUSE R C H TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Flnaneial r8view 202412025 has béen another difficult year, but the New Horne Manager and Business Manager, recruited during the p￿vIouS finanrAal year, have made remarkabl¢ progress in luming around the finanaal situation for the Companyl Charity. Income for the year has been increased by £21 Ok lo £1,745k. This was achieved through improved levels of occupancy, an infjation•based increase in the fees charged to private residents and ensuring that fees for ¢ouncil funded residents faidy.'eflected the care needs of the resident. The management team also made excellent progress in controlling costs whilst achieving the higher oecupancy levels. This was achieved alongsidé over811 expenditure for the year. 1£1,750kl being only £8k10.SQAI higher than total expenditure in tre previous financial year. Vllhilst there is sb'll some way to go before the Charity achièves its tsbjèctive of generating the annual surplus necessary to ensure a sustainablè finanaal fLrture for the Charity, the reduct'on of £205k in the annual deficlt {£209k in 202312024., £4k in 2024120251 15 a remad(able athievement by the whole team at Watemoor House RCH. Tho ne interest loan agreements Mrith the private b8nefa¢tor remain in place. The coming finan￿31 year wll (xjntynue to be challenging as the team strive to cot)troJ ctssts 8n(J to maintaintJntrèa$é occupancy levels whilst also increasing the ratio of privatety funded residents to councAI funded residents. Going concern hilst major progress h85 been made towards ensuring the ftrtUTe financial viability of the charity much work still needs lo be done. Targets for total occupancy levels and the ratio C>f privately funded residents have been set and are being wothed towards. It is anticipatèd the ¢hange to a higher proportion of privately ￿nded residents will initially result in lower levels of oe(yJpancy. Vthen a resident leaves Watenroor House it is relativety straighrforward to find a council funded resident, but private residents take longer to find and often take several weeks to make the necessary arrangements re their current accommodation and finan¢es before they a￿ ready to m¢ve in. We are extremely gratefijl that our current benefactor has agreed to continue finanung the charity during thi$ ongoing transition. Trust&es are also aware that addits'onal investment is required if the property is to be adequately maintained and pd8led lo reflect increased expectat'ons, espeaally of privately funded residents. To this end the trustees ¥rtr actively working on identifying works, costs and altemative sources of funding. th the improvements already rnade year on year, plans for the current year, the support of our current benefactor and the research into alternative fvndingfinvestment streams the trustees are confident that Watermoor House can continue as a going concem. Reserves policy The Trustees have examined the requirement for free resetves, which are those unrestricted fvnds not invested in fixed assets or designated for speC￿fIC purpo￿￿. The Trustee5 ￿nSider that, as a minimurn, they should aim for free reserves of £200,000. However, in the finanaal year under rewew, it has despite the very significant irnprovements not been p055ible to elirninate the need for loan support or ￿eate reserve5. However, the increase in the borrowing requirementldeficAt at the year-end has been significandy reduced (Just an additional £4k for the yearl. The next two years wll see Some restructuring lo financing and (i is anticipated that in addition to investing the buildings a start wll be made in ￿eatIng the rArca £200k ffnanryal reserves necessary for the long-term finanaal viability of the Companylcharity. Investment policy Under the Artides of Association, the TrusteeslDirectors have the power to invest in any way they think fit. The Trustees have considered the most appropriate policy for investing funds and have found that a balaneèd portfolio of specialised unit trusts, designed for the charty section, would meet their requirements lo generate both income and capital growth. The Trustees mon(tor market changes but still ¢onsider this type of invèstment portfolio will be the most appropriate strategy for investing the Company's reserves. WATERMOOR HOUSE R C H TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGusf2025 Plans for fvture periods Goals for the ctsming year are to.. Inuo85e occupancy numbers and proportion of privately funded residents to levels that consistently generate significant ¢peralional surpluses Continue our progress to regain the Home'5 GOOD rating by the CQC To chsnnel surpluses into investment in the building. equipment and rebuilding reserves. all of which knrill help secure the future of Walerrnoor House. Structure, governance and management The tharitable company 15 limited by guarantee, having no Share capitsl. It is established under a Memorandum of Assoaation, whiokn sets out the objects and powers of the tharttable company, and is govemed under rfc5 Arb"de5 of Assoaation, as amended by Speaal Resoluti¢ns dated 20 April 2016 and 11 August 201 S, respectively. The Trustees, whts are also the directors for the purptsse of company law, and who served during the year ¥nd up to the dale of signature of the financial stsl¢ments were-. Dr K Badcock Ear£ A C B Bathurst Mrs J Carter DrSROwèn Mr J WLamus Revd P Light (Resigned 22 January 2025} RÈeruitm¥nt and appointment of trustees New Trustees wlh appropriate life and professional skills are appointed by the members to strengthen the Board for the future good Df the Company. Every new Trustee must have an enhanced Disclosure and Barring Service check conducted before tsking up appointment and undergoes an induction pro￿$8. TFiis year fJSt and net realisable value, after making due allowance for c*bsolete and Slow moving items. 1.8 Financial instruments The charity only has finanaal assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their $ettl¢mpnt ￿lUC. Debtor¥ Trade and other debtors are recognised at the settlement amount. Prepayments are valued al the 8rntrunl prepaid. Cash at bank and in hand Cash a+ bank and in hand indudes cash and highly liquid investments with a short maturity of three months Qr less from the date of acquisititsn or opening of the deposit or similar account. Liabilitiès Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event. i( is probable that a transfer of economic benefit will be required in setdement and thè amount of the settlement n be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates il will pay to sèttlè thè debt. 1.9 Taxation The charty benefits from rates relief and is exempt from corporation tax on its chaTitablÈ activities. It is not, however. exempt from VAT and irrecoverable VAT is induded in the ￿$t of those items to which it relates. 1.10 Reti￿MÈnt bènefits The charitable c¢mpany operates a defined contribution pension stheme. Contributions payable to the charitable companys pension stherne are charged to the Statement of Financial A¢tivitie$ in the period to which they relate. 16- WATERMOOR HOUSE R C H NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Critical accounting estimates andjudgèments In the appli￿tion of the Charity's accounting poliues. the Trustees are required to make judgements, eslimales and assumptions about the Izrying arnount of assets and liabilities that are not readily apparent from Other sources. The estimates and associated assumptions are based on historical experience and other factors that are Considered to be relevant. Actual results may dhffer from these estimate5. The estimates and underfying assumptions are remewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects oyly that period, or in the period of the revision and future periods where the revision affects both current and future periad$. Depreciation Write down of the value of tangible fixed assets over their expected useful lives. Income from donations and legacie5 Unrestrithd fvnds Unre5tri¢ted fundJ 2025 2024 Donation5 and gnls 5,777 3,046 Income from charitable activities Unrestricted funds 2025 Unr8Strictsd funds 2024 Charitable activities Received Trom re5ident5 Received from Lo¢al Authority Income from Lodge Other fees 1,080,731 636,771 10,200 11.815 1,038,882 480,896 9,007 1,739,517 1,528,785 Income from investments Ufiresthcted Unr8stricted funds funds 2025 2024 Interest re￿1vable 3,201 17- WATERMOOR HOUSE R C H NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Expgnditure on chaFitsble activitigs Charitsble activities 2025 Charitable activities 2024 Direct ¢osts Staff costs Depreciation and irnpairment Subscriptions and registrab"¢n fees Light and heat Motor vehicle expenses Post, stationery, advertising and sundriès Legal and professional fees Equipment rental and maintenan Other house expenses Food Property maintenance & repairs Other property expenses Accountancy and payroll Lodge costs Agency staff costs 1,308.284 10,392 6,101 53,281 2,958 98,181 1,040 44,794 38,456 91,375 33.301 27,093 2.860 4,764 17.908 1.183,414 11.853 5,893 114,357 4,012 114,350 1,272 42.345 38.795 93,385 39.373 26,008 3,750 1.441 50,929 1,738,788 1,731.177 Share of support and govemance costs (see note 71 Governance 10,S30 11,300 1,749,618 1.742.477 Analysis by fund Unrestricted funds 1,749,618 1,742,477 Support costs alloeatod to a¢tlvlti¢s 2025 2024 Auditors remuneration 10,830 11,300 Analysed between: Charitsble activrftie$ 10,830 11,300 18- WATERMOOR HOUSE R C H NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2025 Net movemènt in fund 2025 2024 The net movement in funds is stated after ¢hargingl1cred￿ng). Fees payable to thè d)arWs auditor. for the audit ¢f the chanty's financial statements - for other finanaal seNces DeprecAalion of owned tangible fixed assets 8,660 2.170 10,392 9,000 2.300 11,853 Trustees None of the Trustees lor any persons connected them) ￿¢¢iVe￿ gny remuneraliDn or beneffts from the Charity during thè year. Trustees. expenses There were no tnjstees, expensés paid f¢r the year ended 31 August 2025 nor for the year ended 31 August 2024. 10 Employee8 The av¢rage monthly number of employees during the year w8S'. 202S Number 2024 Number Administration Support 10 37 38 Total 47 46 Employment costs 2025 2024 Wages and 3alaries Social security costs Other pension costs 1,175,909 106,961 25,414 1.075,495 85,139 22,780 1,308,284 1,183,414 There were no employees vthose annual remuner3tion wa$ more than £60.000. Remuneration of key management personnel Th& key management personnel of the Chartty comprise tre H¢me Manager, Deputy Home Manager, Business Manager, Finance offi￿r, and Office Manager. The total ¢tsst to the Charity of the key management pèrsonnel was £192,40812024.' £167,187). 19- WATERMOOR HOUSE R C H NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2025 11 Gains and lo$$es on investmènts Ur>re51ri¢tsd fvnd5 UnT68tr4ctod *unds 2024 2025 Gainslllossesl arising on.. Sale of investments 11,5401 12 Tangible fixed assets Freehold land Flxtures and and busldings ffttings Minibu5 Total Cost At 1 September 2024 689,416 221,267 24,995 935.678 At 31 August 2025 689,416 221,287 24.995 935,678 Depreciation and impairment At 1 September 2024 Depreaation charged in the year 133,021 8,415 17,087 1,977 1SO.108 10,392 At 31 August 2025 141,436 19,064 160,500 Carying amount At 31 August 2025 689,418 79,831 S,931 77S,178 At 31 August 2024 689,418 88,248 7,909 785,571 13 Stocks 2025 2024 Kil¢hen and h¢usekeeping st¢cks 5.083 3,128 14 Debtors 2025 2024 Amounts falling duo wlthln onè y•ar: Trade debtors p￿paYmentS and ac¢Ned inc¢me 28,225 30,804 19,077 25,627 57,029 44,704 20- WATERMOOR HOUSE R C H NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2025 15 Creditors: amtsunts falling due within one year 2025 2024 Other tsxation and social security Trade creditors Other creditors Accruals and deferred income 47,819 75,560 104.945 19,564 51,950 85,397 73,830 26,200 247,888 237,377 16 Retirèmènt benefit schemes 2025 2024 Defined contribution schemes Charge to profft or loss in re$pe¢t of defined contribution sthemes 25,414 22,780 The Charity operates a defined conlribub.on pension scheme for all qualifying employee$. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the ChaThty to the fund. Contributions payable to the fund at the balan￿ sheet date were £4,57012024." £5,214). 17 Restricted funds The restricted fiJnds of the charity comprise the unexpènded balan￿3 of donations and grants held on trust subject to spérific ¢ondib"ons by donors as lo how trey may be used. At1 Saptembar 2024 Transfers At 31 August 2025 Dining room renovations 4,QS4 14,0641 Prèvious year: At1 September 2023 Trnnsfers At 31 August 2024 Dining room Tenovations 4,064 4,064 Purpos8 of restricted fund- Dining room renovation¥ Grant awarded by Mrs D K WAnstone Trust to provide fiJnding for the ￿n0VatIon ¢f the ￿SIdentS dining room and the patio garden adIa￿nt to the dining room. 21 WATERMOOR HOUSE R C H NOTES TO THE FINANCIAL STATEMENTS {CONTINUED> FOR THE YEAR ENDED 31 AUGUST 2025 17 Restricted funds (Continued) Transf￿￿ between funds Transfer5 are made be￿een restricted and unrestricted lunds at the end of every a¢counting period in cases where.. lil The activity of the restricted fund has come to an end and there is an unspent balance that is not repayabl& to the fvnderlsl, when the surplus is transferred to unrestricted SJnds', lill thè restricted fvnd is in defiat and has either COTne to an end or theTe is no prospect of a surplus in a later period, which the defici( is elirninated by transfer from unrestrided funds,, and liiil to transfer thè value ¢f tsngible fixed assets from restricted lo unrestricted fiJnds when the assèt has been purchased from a restricted fund donation but is held for a general and not a restricted purpose. 18 Unrestricted fund$ The unrestricted fvnds of the charity ty)mpri5e the unexpended balances of d¢nalions and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds whith have been set aside out of unrestricted funds by the trustees for sperific purposes. At1 Strptsmber 2024 In¢oming Resources resources expended Transfers Gains and At 31 August losses 2025 General funds 599,467 1,745,299 {1,749,6181 4,064 599,212 Previous yoar. At1 September 2023 Incoming resourcas Resources oxpènded Transfors Galns and At 31 August losses 2024 General fvnds 808,452 1.535,032 11,742.4771 11,5401 599,467 19 Anatysis of net assets between funds Unrestricted funds 2025 Restrictsd funds Total 2025 2025 At 31 August 2025- Tangible assets Current assetsllliabilitiesl 775,178 1175.9661 775,178 1175,9661 599,212 599,212 -22- WATERMOOR HOUSE R C H NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 19 Analysis of net a￿ts between fiinds (Continued) UThrestri¢tèd R05trÉcted fvnd5 2024 Total funds 2024 2024 At 31 August 2024: Tangible assets Current assatsllliabilities) 785,571 1186,1041 785.571 {182,0401 4,064 599,467 4,064 603,531 20 Contingent liabilities Various funders retain the right to daw bad< grants should the use of fvnds not be in accordan￿ with the tenns of the grant. In the ¢)pinion of the Trustees no SLt¢h liability exists at the year end. 21 Operating lease commitnonts Lèss•• At the reporting end date the Charity had ¢ul$tsnding commitments for fLrture rninimum lease payments under non-cancellable operating leases, which fall due as follows.. 2026 2024 Within one year Btheen and five years 9,557 17,920 9.557 31,783 27,477 41,340 22 Related party transactions Transactions with rglatsd partie3 Induded in other creditor$ is a balance of £98,500 owing to one of the directors and a trustee of the ch8ri1able ¢ompany. Of this balance. £80,000 relates to a longer-tèrm loan. wth the remaining £18,500 relating to short- terni advances. The loans are unsecured, intèrest-free and repayable on dernand. The short-tem advances are provided a$ bridging finance to support workn.ng capital requirement5 towards the end of each month. enabling liabilities to be setued pending re￿ipt of income from residents at the stsrt of the following month. The longer-term loan fomis part of the tharitable ¢ompany's ongoing working capital support. 23- WATERMOOR HOUSE R C H NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGusf2025 23 Cash g$nerated froml{absorbèd by) operatlons 2025 2024 Deficpt for year {4,319) 1208,985) Adjustsnents for.. Investment income recognised in statement of financial activities IGainllloss on disposal of investments DeprèrJ￿.on and impairment of tangible fixed assets 151 {3.2011 1,540 11,853 10,392 Movements in working capital: Ilncreasellde￿a5e in stocks Iln¢xeaselldecrease in debtors Increase in uedilors 11.9551 112,3251 10,512 3,821 20.464 87,705 Cash ggnorated froml(absorbèd by) operations 2.300 188,8031 24 Anafysis of changos in net funds The Charty had n¢ material debt during the year. -24-