**Registered number: 10845391 Charity number: 1174376**
## **ABBEYFIELD SILVERDALE SOCIETY**
**(A company limited by guarantee) TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the company, its Trustees and Directors and**|1 - 2|
|**advisers**||
|**Chairman's statement**|3|
|**Trustees' report**|4 - 10|
|**Independent auditors' report on the financial statements**|11 - 14|
|**Statement of financial activities**|15|
|**Balance sheet**|16 - 17|
|**Statement of cash flows**|18|
|**Notes to the financial statements**|19 - 39|
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND DIRECTORS AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021**
|**Trustees and Directors**|Canon P K Warren, President|
|---|---|
||Dr A Wells|
||Mr J W Robson, Chair|
||Mrs S Caddy|
||Mr M Casson|
||Mr A G Davies|
||Dr J Greenwell|
||Mrs J Jones|
||Dr N Martin|
||Mr M J Moon (resigned 6 April 2020)|
||Mr K E Porcher (resigned 20 October 2020)|
||Mr M Rhodes|
||Mr R Richardson (resigned 24 September 2020)|
||Mr J F Whalley (appointed 23 February 2021)|
|**Company registered**
**number**
10845391
**Charity registered**
**number**
1174376
**Registered office**
Cove House
Cove Road
Silverdale
Carnforth
Lancashire
LA5 0SG
**Company Secretary**
Catherine Humphreys ACMA
**Chief Executive Officer**
Catherine Humphreys ACMA
**Independent auditors**
Armstrong Watson Audit Limited
Chartered Accountants and Statutory Auditors
Fairview House
Victoria Place
Carlisle
Cumbria
CA1 1HP
**Bankers**
NatWest Business Centre
1st Floor
1 St Pauls Place
121 Norfolk Street
Sheffield
S1 2JF
CAF Bank
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ||
Page 1
## **ABBEYFIELD SILVERDALE SOCIETY**
**(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND DIRECTORS AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021**
**Solicitors**
Progression Solicitors 11 Queen Street Ulverston Lancashire LA12 7AF
Page 2
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2021**
## The chairman presents his statement for the year.
For us as, for other care homes up and down the country, 2020-2021 has been the year of the pandemic. As I write this report the third wave of infections continues to grow but we are remaining vigilant and are confident that we can meet the demands of the situation. I wish to pay tribute to our staff whose behaviour has been magnificent and particularly to the leadership of our CEO and RCM. We have lost three residents to the pandemic but have done well by national standards. The impact of the pandemic on life at Cove House has been substantial but the sheltered environment and our spacious gardens and grounds have helped with the fundamental tasks of caring for our elderly and vulnerable residents and alleviating loneliness. Visits have, of necessity, been severely restricted but the deployment of our visiting pod has been popular and the facility is now well used. I would like to thank Dr Jerry Martin for suggesting and organising the purchase.
Board meetings throughout the year were held virtually which worked better than we originally envisaged. Regular hub calls with our sister houses around Morecambe Bay have been important for keeping us in touch with each other and with developments in the Abbeyfield family more widely. Regular local communications have made us feel less isolated and the sharing of ideas and experience have promoted greater resilience. The MOU group has continued discussions throughout the year.
Occupancy figures for the year as a whole are slightly below 90%. These figures are consistent with the national picture. The elderly residential care sector has been hit hard by the pandemic and by sometimes sensationalist reporting in the national media. Enquiries fell over the course of the year but are now picking up. It remains to be seen whether the government will address the issues facing the management and funding of social care.
We have continued to play an active part in the development of the national Abbeyfield strategy. We were shocked and saddened by the sudden death of David McCullough, The Abbeyfield Society CEO, but are determined to contribute to the realisation of his vision for the organisation. In closing I want to thank everyone, our residents, their families, our staff, our trustees, our volunteers and our supporters in the wider community for helping us to negotiate a difficult year successfully.
Dr Andrew Wells stepped down as Chair following the year end and John Robson was elected to the position of Chair of the Board of Trustees.
................................................ Mr J W Robson Chair
Date:
Page 3
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021**
The Trustees present their annual report together with the audited financial statements of the company for the year 1 April 2020 to 31 March 2021. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
## **Objectives and activities**
## **a. Policies and objectives**
The principal purpose of the Society is:
_The relief and care of elderly persons suffering from the disabilities of old age or otherwise being in need, including by the provision and management of housing and/or residential care homes and/or hostels._
In the furtherance of these objects, but not otherwise, the Society may:
- (a) provide and maintain or assist in providing and maintaining housing and/or residential care homes and/or hostels for such elderly persons; and
- (b) provide or assist in providing care, support, amenities or services for the benefit of such elderly persons.
The Society operates a residential care home for 23 elderly people, one supported living unit and a retirement living complex, Cove Orchard, on its site in Silverdale, north Lancashire. This forms the basis of the Society’s primary activities, which are to provide care and support to older people. The Abbeyfield Silverdale Society is a member of the Abbeyfield movement, whose purposes have been regarded as being for the public benefit for over 50 years. By providing accommodation and services the Society meets the needs of older people for accommodation and other services suited to their needs. These services are open to all older people in need regardless of their mental or physical frailty. These include, but are not limited to, people suffering from dementia, Parkinson’s as well as those being supported at the end of their life.
Through the provision of its services, the Society aims also to combat the loneliness and social isolation that is often associated with old age and improve the physical, mental and social wellbeing of residents through the provision of appropriate and inclusive activities, often carried out by volunteers.
The Society serves the local community but does not apply any form of restriction, geographical or otherwise to members of the public who would seek to make use of its services. The Society’s residential care operations are regulated by the Care Quality Commission, which has rated its services as ‘Good’ for several years.
The services offered by the Trustees of the Society are deemed to be beneficial by their nature and are available to a large section of the public. In common with many charitable care homes, the Society charges for its services in order to provide sustainable, high-quality care for older people. The charges are in a broad range and considered affordable in the market. Beneficiaries need to be able to afford their accommodation and service costs either from their own means or from funders such as local authorities. The number of local authority funded residents varies from time to time and no limit is placed on the number accepted by the Society. Different styles of accommodation are offered at different rates in order to promote maximum inclusivity and access to the Society’s services. In addition, some services provided by the Society are subsidised to ensure that they are widely affordable, for example when meals are provided to the residents of Cove Orchard this is done so at cost price and assistance equipment supplied free of charge.
Page 4
**ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021**
## **Objectives and activities (continued)**
## **b. Main activities undertaken to further the company's purposes for the public benefit**
The Trustees have considered the guidance issued by the Charity Commission in respect of public benefit and confirm through their activities and objectives that they adhere to this guidance.
The views and opinions of our residents and their families are regularly sought about the activities that the Society undertakes. A record of these consultations are available for inspection.
## **Achievements and performance**
## **a. Review of activities**
The financial year ending in March 2021 has been entirely dominated by the COVID-19 worldwide pandemic. Whilst the Society was less adversely affected than other adult social care providers, it has undoubtedly been the most challenging year in the history of the Society. There have been significant impacts on both operational and governance arrangements resulting from government regulation required to combat the effects of COVID-19.
Cove House experienced an outbreak of COVID-19 in April 2020 and sadly lost two residents to the virus, with a third recorded as unconfirmed. A large proportion of the Society’s staff were also infected, which resulted in significant operational disruption for a short period of time but no fatalities. CQC have completed their own review of deaths in care homes throughout England and Wales and the published results can be seen on their website.
The overall occupancy level for the year was just under 90%, which, in the circumstances of the pandemic, the trustees are satisfied with and feel that its duties have been discharged in meeting the needs of older people in the area and maintaining a safe environment for residents and staff at Cove House during the pandemic. However, some services had to be suspended, including day care and respite care.
Prior to the onset of the pandemic, the Society had begun a review of its strategy focussing on two key goals, namely the provision of the highest quality service and financial stability through the growth and diversification of services. Progress on rolling out the strategy was suspended completely during the financial year in question and work on implementation of the strategy has only tentatively begun in the post year end period. The board of trustees remains ambitious to achieve an outstanding rating from CQC as well as develop its site in Silverdale to facilitate diversification of services to older people. The working group that had been formed to consider the Cove House Improvement Plan has been able to meet remotely and to make some progress in this area.
Clearly the pandemic has had an unprecedented impact on the residents of both Cove House and Cove Orchard. Residents were unable to have visitors in person and day to day activities for the Cove House residents have been severely impacted. The pandemic meant that the regular programme of activities involving external entertainers as well as outings to local places of interest was suspended. Staff have carried out many in house activities which have ensured that residents have been able to retain some sense of normality and social interaction within the Cove House bubble. The Society has always placed great emphasis on residents maintaining contact with family and friends and to that end facilitated video calls in addition to residents using their own telephone. In December 2020, the Society purchased a visiting pod to further enhance safe visiting arrangements and this has continued to be used extensively.
The residents of Cove Orchard have been supported as far as possible within the pandemic regulations. This year has seen three properties change hands and, whilst the Society does not provide direct personal care, the aging nature of the residents has meant that the Society’s staff continue to become more involved in the lives of the Cove Orchard residents. The Society is proud to be one of the few organisations in this region to have developed housing specially designed for older people to enable them to successfully live independently into older age, with many of the Cove Orchard residents now in their nineties.
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**ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021**
## **Achievements and performance (continued)**
The pandemic has brought together the local Abbeyfield societies to provide mutual support and direct assistance to each other where necessary. The chairs of each society have met regularly on a virtual platform to discuss the effect of the pandemic facing each society and to develop a common approach to the key issues. During the year 2020-2021, the Society has continued with its close working relationship with the sister Abbeyfield society, the Lakeland (Extra Care) Society, although the paid secondment of the Chief Executive Officer finished at the end of December 2020. In addition, the board agreed to enter into a Memorandum of Understanding with three other local societies; the group, including Abbeyfield Silverdale Society, is made up of the Abbeyfield Barrow in Furness Society, the Furness Extra Care Society and the Abbeyfield Lakeland Extra Care Society and has chosen to call itself the Morecambe Bay Group.
## **b. Fundraising activities and income generation**
The Charities Act 2011 requires charities to make a statement regarding fundraising activities. The COVID-19 pandemic has meant that all fundraising activities have been suspended until Government regulations are lifted. Where fundraising is carried out, any amounts raised are presented in the accounts as voluntary income and includes legacies and grants. No fundraising was carried out during the financial year due entirely to the COVID19 pandemic restrictions.
## **c. Investment policy and performance**
The Society does not currently hold an investment portfolio in stocks, shares or other investment vehicle.
## **Financial review**
## **a. Going concern**
The purpose of the Society’s reserves is to provide sufficient protection for the Society against changing financial circumstances and to support future business development initiatives to enable the Society to continue to fulfil its principal purpose. The level of general reserves as reflected in Note 16 to the financial statements is represented by tangible assets and net current assets and is considered sufficient for the Society to meet its short to medium term expenditure obligations. The Society’s cash reserves significantly outweigh its short term and long term liabilities.
The Trustees have a reasonable expectation that the Society has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
## **b. Reserves policy**
The Society’s reserves are made up of both cash reserves and physical assets and the Trustees have structured the reserves into designated funds in order to meet the needs of both its strategic plans and its operational activities. The main physical asset of the Society is Cove House for which the Maintenance Fund is designated to cover ongoing repairs and renovations to the house to ensure it meets the needs of the residents. The remaining funds are structured to support the Society’s strategic objectives and its obligations under the Cove Orchard lease.
The Society's free reserves are made up of the nominal balance sheet value of its main physical assets, including Cove House plus the value of three months operating costs. The operating costs are based on the cost per day of providing residential care services.
Page 6
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021**
## **c. Financial review**
The financial year 2020-21 has proved financially challenging and the year end surplus is largely the result of government grants provided to support additional costs incurred by front line services during the pandemic.
The main income source for the Society comes from its residential fees and the Trustees are always mindful of the cost of residential care and the impact of fee increases. In 2020-21, the fees remained in line with other providers in the area.
During the year, government grant income totalled £52,183. There was a requirement to provide regular returns to Lancashire County Council to confirm that the Society expended the grant money in line with the terms on which it had been given. The Infection Control Fund grant provided additional financial resource to support the cost of the visiting pod, additional infection control materials and equipment as well as ensuring that staff are able to isolate on full pay. Although the Society achieved an overall surplus of £34,015, after excluding the value of the grant income of £52,183, the Society went into a deficit of £18,168. The reduction in income and the increase in costs is due entirely to the circumstances of the pandemic. New admissions were severely curtailed as families were anxious about the circumstances facing residential care homes and many chose to ‘hang on’ until the situation improved. Day care and respite services have been suspended for the entirety of the financial year and unlikely to begin again until late 2021. The Society has also faced significant additional staffing costs as a result of COVID-19, with the staff sickness rate rising to 5% from a year on year average of just 2%. However the Society remains committed to paying its staff the real living wage and being recognised as a Living Wage Foundation employer.
The Society however was able to continue investing in the fabric of its buildings and grounds and to address legacy maintenance issues. The Society carried out a complete renovation of the residents’ lounge at a capital cost of £96,000 and carried out work in Orchard House to create additional office space at a cost of £22,000. Otherwise only essential maintenance was carried out to Cove House during the year.
The Society’s financial resources consist mainly of cash reserves and bank deposits, which are sufficient to meet its day to day requirements. The Statement of Cashflows on page 18 of the financial statements details the movement in cash during the financial year. Towards the end of the financial year, the Trustees agreed to engage Cascade Cash Management to manage the transfer of £1.02 million of the Society’s cash reserves into deposit holdings of £85,000 in order to ensure the funds are protected under the Financial Services Compensation Scheme. In terms of risk evaluation, the Trustees felt that the financial protection of the Society’s reserves was a higher priority than financial return through higher interest rates.
## **d. COVID-19 pandemic**
Throughout the 2020-21 financial year the Society has had to manage the impact of COVID-19. This is reflected in the financial impact on the Society of lost income as a result of a significant drop in demand for residential care as well as the increased staff costs and the cost of additional infection prevention measures. Day care was suspended and is unlikely to resume until late 2021. Staff recruitment has not been significantly impacted with vacancies filled in relatively short time and whilst there has been a need to use agency staff, this has been limited.
There has been a significant impact on governance arrangements during the financial year 2020-21. All Trustee meetings, including the Society’s AGM moved to a virtual platform and were conducted in accordance with the Charity Commission guidance on holding trustee meetings during the COVID-19 pandemic.
In all other matters, the Trustees are confident that the Society is able to continue its operations during the current phase of the COVID-19 pandemic.
Page 7
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021**
## **Structure, governance and management**
## **a. Constitution**
The company is registered as a members’ limited liability company number 10845391 and was set up by Memorandum of Association on 30 June 2017.
The Society is also registered with and regulated by the Charity Commission for England and Wales, registration number 1174376.
## **b. Methods of appointment or election of Trustees**
The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. The composition of the Board, the method of appointment of Trustees and the retirement or removal of Trustees is covered in detail in clauses 19 and 20 of the Articles of Association of the Society.
## **c. Organisational structure and decision making policies**
All operational decision making is delegated by the Board of Trustees to the Chief Executive Officer as head of staff. Financial delegation is documented in the Society’s Financial Standing Orders.
The Board of Trustees currently meets ten times per annum and receives detailed financial and operational reports from the Chief Executive Officer and the Registered Care Manager, which enables the Trustees to discharge their statutory and governance duties.
## **d. Policies adopted for the induction and training of Trustees**
All Trustees receive documents published by the Charity Commission relating to the role of a Trustee. In addition, Trustees are able to attend The Abbeyfield Society induction course for new Trustees. New Trustees spend time with the Chief Executive Officer and the Registered Care Manager in order to get a detailed understanding of the financial position and other operational issues affecting the Society. However throughout the COVID-19 pandemic this has not been possible and the new Trustee appointment was provided with Charity Commission documentation to support the initial induction phase.
## **e. Pay policy for key management personnel**
The Remuneration committee, a sub-committee of the Board of Trustees, meets on an annual basis to consider the salaries of the Chief Executive Officer and the Registered Care Manager. The Remuneration committee makes a recommendation to the Board of Trustees for approval. The Remuneration committee is chaired by a Trustee other than the Chair of the Society.
## **f. Financial risk management**
The Chief Executive Officer presents the Society’s corporate risk register to the Trustees for consideration and review. The corporate risk register evaluates the major risks to which the Society is exposed, in particular those relating to finance, governance and operations and the Trustees are satisfied that there are systems and procedures in place to mitigate the Society’s exposure to the most significant risks.
## **g. Trustees and Directors' indemnities**
Trustees are indemnified by a Trustee indemnity insurance policy provided by The Abbeyfield Society as part of the membership agreement.
Page 8
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021**
## **Plans for future periods**
The COVID-19 pandemic has acted as a catalyst to bring together the four independent Abbeyfield societies in the Morecambe Bay area into a formal cooperative agreement to support governance and business operations. The impact of the pandemic on charitable organisations has been significant and there is a realisation amongst the Trustees of each of the parties in the Memorandum of Understanding (MOU) that closer working is necessary to build organisational and business resilience. The Morecambe Bay Group has been created with representation from each of the societies included in the MOU through the Chairs and one other nominated trustee. The Morecambe Bay Group is also supported by the CEO of Abbeyfield Silverdale Society. The Group is actively considering plans for future collaboration, which may include a formal merger in due course.
The Society’s two principal strategic goals of a) to provide the highest quality of care, and b) to deliver financial stability remain in place.
## **Statement of Trustees' responsibilities**
The Trustees (who are also the directors of the company for the purposes of company law) 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).
Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of its incoming resources and application of resources, including its income and expenditure, 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 of the Charities SORP (FRS 102);
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) 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 company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditors**
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Page 9
**ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021**
## **Disclosure of information to auditors (continued)**
## **Auditors**
The auditors, Armstrong Watson Audit Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
................................................ **Mrs C M Humphreys ACMA** Secretary
................................................ **Mr J W Robson** Chair
Date:
Page 10
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF ABBEYFIELD SILVERDALE SOCIETY**
## **Opinion**
We have audited the financial statements of Abbeyfield Silverdale Society (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of financial activities, the Balance sheet, the 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 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; and
- 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 11
**ABBEYFIELD SILVERDALE SOCIETY**
**(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF ABBEYFIELD SILVERDALE SOCIETY (CONTINUED)**
## **Other information**
The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and 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**
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 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
- sufficient 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 (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Page 12
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF ABBEYFIELD SILVERDALE SOCIETY (CONTINUED)**
## **Auditors' responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our 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 charity through discussions with Trustees and other management, and from our commercial knowledge and experience of the residential care home sector;
• 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 charity’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; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
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 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;
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**ABBEYFIELD SILVERDALE SOCIETY**
**(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF ABBEYFIELD SILVERDALE SOCIETY (CONTINUED)**
• reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
• reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, 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 Auditors' report.
## **Use of our report**
This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its Trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
Armstrong Watson Audit Limited
Chartered Accountants and Statutory Auditors Carlisle
Date:
Armstrong Watson Audit Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 14
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021**
|**Note**
**Income from:**
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
**Total income**
**Expenditure on:**
Charitable activities
8
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2021**
**£**
**53,299**
**924,872**
**-**
**760**
**978,931**
**944,916**
**944,916**
**34,015**
**2,011,527**
**34,015**
**2,045,542**|**Total**
**funds**
**2021**
**£**
**53,299**
**924,872**
**-**
**760**
**978,931**
**944,916**
**944,916**
**34,015**
**2,011,527**
**34,015**
**2,045,542**|_Total_
_funds_
_2020_
_£_
_675,917_
_977,366_
_651_
_1,451_|
|---|---|---|---|
||||_1,655,385_|
||||_931,961_|
||||_931,961_|
||||_723,424_|
||||_1,288,103_
_723,424_|
||||_2,011,527_|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 19 to 39 form part of these financial statements.
Page 15
## **ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee) REGISTERED NUMBER: 10845391**
## **BALANCE SHEET AS AT 31 MARCH 2021**
|**Note**
**Fixed assets**
Tangible assets
13
**Current assets**
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
**Net current assets**
**Total assets less current liabilities**
**Total net assets**|**26,696**
**1,419,077**
**1,445,773**
**(84,805)**|**2021**
**£**
**684,574**
**684,574**
**1,360,968**
**2,045,542**
**2,045,542**|_116,300_
_1,445,946_
_1,562,246_
_(139,594)_|_2020_
_£_
_588,875_|
|---|---|---|---|---|
|||||_588,875_
_1,422,652_|
|||||_2,011,527_|
||||||
|||||_2,011,527_|
Page 16
## **ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee) REGISTERED NUMBER: 10845391**
## **BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021**
|**Note**
**Charity funds**
Restricted funds
16
Unrestricted funds
16
**Total funds**|**2021**
**£**
**-**
**2,045,542**
**2,045,542**|_2020_
_£_
_-_
_2,011,527_|
|---|---|---|
||||
|||_2,011,527_|
The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
However, an audit is required in accordance with section 144 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................ ................................................ **Mr J W Robson Dr A Wells** Chair Trustee
Date:
The notes on pages 19 to 39 form part of these financial statements.
Page 17
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Dividends, interests and rents from investments
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Cash flows from financing activities**
**Net cash provided by financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 19 to 39 form part of these financial statements|**2021**
**£**
**116,134**
**760**
**(143,763)**
**(143,003)**
**-**
**(26,869)**
**1,445,946**
**1,419,077**|_2020_
_£_
_757,999_
_1,451_
_(23,326)_
**(21,875)**
**-**
**736,124**
_709,822_
_1,445,946_|
|---|---|---|
Page 18
**ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **1. General information**
Abbeyfield Silverdale Society is a charitable company without share capital, incorporated in England and Wales. The registered office is Cove House, Cove Road, Silverdale, Carnforth, Lancashire, LA5 0SG and the company number is 10845391.
The Charity's principal business activity is the provision of residential care to the elderly.
The presentational and functional currency of the financial statements is Pound Sterling.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) and the Companies Act 2006.
Abbeyfield Silverdale Society meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## **2.2 Company status**
The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
## **2.3 Going concern**
The Trustees have indicated that they believe that the charity is a going concern. When making this assessment, the Trustees have considered the financial impact the COVID-19 pandemic will have on the charity for a period beyond 12 months from the date of signing the financial statements. Net assets at the balance sheet date were £2,046k and cash reserves were £1,419k, and the charity entered the pandemic in surplus.
The Trustees believe the level of liquid reserves held by the charity are sufficient to allow the charity to meet its liabilities as they fall due and so consider the charity a going concern.
Page 19
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **2. Accounting policies (continued)**
## **2.4 Income**
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the company, can be reliably measured.
Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
Page 20
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **2. Accounting policies (continued)**
## **2.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Support costs are those costs incurred directly in support of expenditure on the objects of the company.
Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
All expenditure is inclusive of irrecoverable VAT.
## **2.6 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.7 Taxation**
The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Page 21
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **2. Accounting policies (continued)**
## **2.8 Tangible fixed assets and depreciation**
Tangible fixed assets costing £2,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives,
Depreciation is provided on the following bases:
|Freehold property|- 1-2% straight line|
|---|---|
|Care equipment|- 10-33% straight line|
|Fixtures and fittings|- 10-33% straight line|
|Office equipment|- 10-33% straight line|
## **2.9 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.10 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.11 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
## **2.12 Financial instruments**
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.13 Operating leases**
Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.
Page 22
**ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **2. Accounting policies (continued)**
## **2.14 Pensions**
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
## **2.15 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
## **3. Critical accounting estimates and areas of judgement**
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Critical areas of judgement:
## a) Establishing useful economic lives
Establishing useful economic lives for depreciation purposes of property, plant and equipment comprise a significant portion of the total fixed assets. The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimates of residual values. The directors regularly review these assets useful economic lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation charges for the period. Details of the depreciation policies based on estimated useful economic lives are included in accounting policies note 2.8.
## b) Providing for doubtful debts
The company makes an estimate of the recoverable value of trade and other debtors. The company uses estimates based on historical experience in determining the level of debts, which the company believes, will not be collected. These estimates include such factors as the credit rating of the debtor, the ageing profile of debtors and historical experience. Any significant change in the level of customers that default on payments or other significant improvements that resulted in a change in the level of bad debt provision would have an impact on the operating results. The level of provision required is reviewed on an on-going basis.
Page 23
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **4. Income from donations and legacies**
|**Unrestricted**
**funds**
**2021**
**£**
Legacies
1,116
Grants
52,183
**Total 2021**
53,299|**Total**
**funds**
**2021**
**£**
**1,116**
**52,183**|
|---|---|
||**53,299**|
Sums recovered through the Coronavirus Job Retention Scheme are included within grants.
||_Unrestricted_|_Total_|
|---|---|---|
||_funds_|_funds_|
||_2020_|_2020_|
||_£_|_£_|
|Legacies|_675,917_|_675,917_|
## **5. Income from charitable activities**
|**Unrestricted**
**funds**
**2021**
**£**
Provision of residential care at Cove House
886,042
Independent living at Cove Orchard
38,830
**Total 2021**
924,872
_Unrestricted_
_funds_
_2020_
_£_
Provision of residential care at Cove House
_929,871_
Independent living at Cove Orchard
_47,495_
_Total 2020_
_977,366_|**Total**
**funds**
**2021**
**£**
**886,042**
**38,830**|
|---|---|
||**924,872**|
||_Total_
_funds_
_2020_
_£_
_929,871_
_47,495_|
||_977,366_|
Page 24
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
**6. Income from other trading activities**
## **Income from fundraising events**
|_Unrestricted_
_funds_
_2020_
_£_
Fundraising
_651_
**7.**
**Investment income**
**Unrestricted**
**funds**
**2021**
**£**
Investment income
760
_Unrestricted_
_funds_
_2020_
_£_
Investment income
_1,451_|**Total**
**funds**
**2021**
**£**
_Total_
_funds_
_2020_
_£_
_651_|
|---|---|
||**Total**
**funds**
**2021**
**£**
**760**|
||_Total_
_funds_
_2020_
_£_
_1,451_|
Page 25
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **8. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|**Unrestricted**
**funds**
**2021**
**£**
Provision of residential care at Cove House
893,376
Independent living at Cove Orchard
51,540
**Total 2021**
944,916
_Unrestricted_
_funds_
_2020_
_£_
Provision of residential care at Cove House
_899,852_
Independent living at Cove Orchard
_32,109_
_Total 2020_
_931,961_|**Total**
**funds**
**2021**
**£**
**893,376**
**51,540**|
|---|---|
||**944,916**|
||_Total_
_funds_
_2020_
_£_
_899,852_
_32,109_|
||_931,961_|
## **Summary by expenditure type**
|Provision of residential care at Cove House
Independent living at Cove Orchard|**Staff costs**
**2021**
**Depreciation**
**2021**
**£**
**£**
593,825
43,283
18,117
4,782
611,942
48,065|**Other costs**
**2021**
**£**
256,268
28,641
284,909|**Total**
**funds**
**2021**
**£**
**893,376**
**51,540**|
|---|---|---|---|
||||**944,916**|
Page 26
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **8. Analysis of expenditure on charitable activities (continued)**
## **Summary by expenditure type (continued)**
|Provision of residential care at Cove House
Independent living at Cove Orchard|_Staff costs_
_2020_
_£_
_568,827_
_10,783_
_579,610_|_Depreciation_
_2020_
_£_
_43,311_
_4,782_
_48,093_|_Other costs_
_2020_
_£_
_287,714_
_16,544_
_304,258_|_Total_
_funds_
_2020_
_£_
_899,853_
_32,109_|
|---|---|---|---|---|
|||||_931,961_|
## **9. Analysis of expenditure by activities**
|Provision of residential care at Cove House
Independent living at Cove Orchard
Provision of residential care at Cove House
Independent living at Cove Orchard|**Activities**
**undertaken**
**directly**
**2021**
**£**
764,859
41,426
806,285
_Activities_
_undertaken_
_directly_
_2020_
_£_
_780,922_
_22,093_
_803,015_|**Support**
**costs**
**2021**
**£**
128,517
10,114
138,631
_Support_
_costs_
_2020_
_£_
_118,930_
_10,016_
_128,946_|**Total**
**funds**
**2021**
**£**
**893,376**
**51,540**|
|---|---|---|---|
||||**944,916**|
||||_Total_
_funds_
_2020_
_£_
_899,852_
_32,109_|
||||_931,961_|
Page 27
**ABBEYFIELD SILVERDALE SOCIETY**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **9. Analysis of expenditure by activities (continued)**
## **Analysis of direct costs**
|Staff costs
Depreciation
Staff training
Hotels, travel and subsistence
Printing and stationery
Telephone and fax
Advertising and promotion
Legal and professional, regulation costs (incl. DBS)
Equipment hire
Bank charges
Rates and water
Light and heat
Cleaning
Repairs and maintenance
Residents' comforts & welfare
Food costs
Sundry expenses
**Total 2021**|**Provision of**
**residential**
**care at**
**Cove House**
**2021**
**£**
498,261
43,283
2,905
276
2,435
6,882
5,206
15,620
535
1,012
7,186
33,775
7,911
78,430
1,530
48,325
11,287
764,859|**Independ't**
**living at**
**Cove**
**Orchard**
**2021**
**£**
10,783
4,782
-
-
1,050
360
-
-
-
-
4,306
2,010
1,278
16,857
-
-
-
41,426|**Total**
**funds**
**2021**
**£**
**509,044**
**48,065**
**2,905**
**276**
**3,485**
**7,242**
**5,206**
**15,620**
**535**
**1,012**
**11,492**
**35,785**
**9,189**
**95,287**
**1,530**
**48,325**
**11,287**|
|---|---|---|---|
||||**806,285**|
Page 28
**ABBEYFIELD SILVERDALE SOCIETY**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **9. Analysis of expenditure by activities (continued)**
## **Analysis of direct costs (continued)**
|Staff costs
Depreciation
Staff training
Hotels, travel and subsistence
Printing and stationery
Telephone and fax
Advertising and promotion
Legal and professional, regulation costs (incl. DBS)
Equipment hire
Bank charges
Rates and water
Light and heat
Cleaning
Repairs and maintenance
Residents' comforts & welfare
Food costs
Sundry expenses
Loss on disposal of fixed assets
_Total 2020_|_Provision of_
_residential_
_care at Cove_
_House_
_2020_
_£_
_489,495_
_43,311_
_3,239_
_2,775_
_3,328_
_3,035_
_7,688_
_15,647_
_562_
_1,335_
_9,141_
_28,836_
_8,702_
_99,056_
_4,046_
_51,508_
_3,887_
_5,331_
_780,922_|_Independent_
_living at_
_Cove_
_Orchard_
_2020_
_£_
_3,907_
_4,782_
_-_
_-_
_1,050_
_370_
_-_
_-_
_-_
_-_
_921_
_1,598_
_1,268_
_6,875_
_-_
_-_
_1,322_
_-_
_22,093_|_Total_
_funds_
_2020_
_£_
_493,402_
_48,093_
_3,239_
_2,775_
_4,378_
_3,405_
_7,688_
_15,647_
_562_
_1,335_
_10,062_
_30,434_
_9,970_
_105,931_
_4,046_
_51,508_
_5,209_
_5,331_|
|---|---|---|---|
||||_803,015_|
Page 29
**ABBEYFIELD SILVERDALE SOCIETY**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **9. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|**Provision of**
**residential**
**care at**
**Cove House**
**2021**
**£**
Staff costs
95,564
Computer costs
18,319
Legal and professional, regulation costs (incl. DBS)
2,639
Auditors' remuneration
5,250
Insurance
6,258
Sundry expenses
487
**Total 2021**
128,517
_Provision of_
_residential_
_care at Cove_
_House_
_2020_
_£_
Wages and salaries
_79,332_
Telephone and fax
_360_
Computer costs
_17,718_
Legal and professional, regulation costs (incl. DBS)
_11,008_
Auditors' remuneration
_5,100_
Insurance
_5,212_
Sundry expenses
_200_
_Total 2020_
_118,930_
**10.**
**Auditors' remuneration**
Fees payable to the company's auditor for the audit of the company's
annual accounts
Fees payable to the company's auditor in respect of:
All assurance services not included above|**Independ't**
**living at**
**Cove**
**Orchard**
**2021**
**£**
7,334
-
-
900
1,880
-
10,114
_Independent_
_living at_
_Cove_
_Orchard_
_2020_
_£_
_6,876_
_360_
_-_
_-_
_900_
_1,880_
_-_
_10,016_
**2021**
**£**
**4,150**
**1,050**|**Total**
**funds**
**2021**
**£**
**102,898**
**18,319**
**2,639**
**6,150**
**8,138**
**487**|
|---|---|---|
|||**138,631**|
|||_Total_
_funds_
_2020_
_£_
_86,208_
_720_
_17,718_
_11,008_
_6,000_
_7,092_
_200_|
|||_128,946_|
|||_2020_
_£_
_4,500_
_1,000_|
Page 30
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **11. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2021**
**£**
**564,487**
**38,518**
**8,937**
**611,942**|_2020_
_£_
_538,490_
_32,848_
_8,272_|
|---|---|---|
||||
|||_579,610_|
Included within the value of total staff costs are agency costs in respect of the catering function and dedicated care agency personnel.
The average number of persons employed by the company during the year was as follows:
|Management and administration
Catering and housekeeping
Care staff|**2021**
**No.**
**5**
**4**
**18**
**27**|_2020_
_No._
_5_
_2_
_19_|
|---|---|---|
||||
|||_26_|
The average headcount expressed as full-time equivalents was 20.
|Management and administration
Catering and housekeeping
Care staff|**2021**
**No.**
**5**
**2**
**13**
**20**|_2020_
_No._
_5_
_2_
_13_|
|---|---|---|
||||
|||_20_|
No employee received remuneration amounting to more than £60,000 in either year.
Key management personnel comprise the senior managers of the Society. Their aggregate remuneration was £110,771 (2020 - £101,436).
Page 31
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **12. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2020 - £NIL)_ .
During the year ended 31 March 2021, expenses totaling _£_ NIL were reimbursed or paid directly to the Trustees _(2020 - £96 to one Trustee_ ).
## **13. Tangible fixed assets**
|**Cost or valuation**
At 1 April 2020
Additions
At 31 March 2021
**Depreciation**
At 1 April 2020
Charge for the year
At 31 March 2021
**Net book value**
At 31 March 2021
_At 31 March 2020_|**Freehold**
**property**
**£**
**729,202**
**128,885**
**858,087**
**204,976**
**32,885**
**237,861**
**620,226**
_524,226_|**Plant and**
**machinery**
**£**
**86,674**
**-**
**86,674**
**73,340**
**3,568**
**76,908**
**9,766**
_13,334_|**Fixtures and**
**fittings**
**£**
**29,546**
**13,872**
**43,418**
**19,855**
**3,585**
**23,440**
**19,978**
_9,691_|**Office**
**equipment**
**£**
**76,360**
**1,006**
**77,366**
**34,736**
**8,027**
**42,763**
**34,603**
_41,624_|**Total**
**£**
**921,782**
**143,763**|
|---|---|---|---|---|---|
||||||**1,065,545**|
||||||**332,907**
**48,065**|
||||||**380,972**|
||||||**684,573**|
||||||_588,875_|
The cost of land and buildings is stated net of the Social Enterprise Investment Fund grant received in January 2012. The value of this grant was £149,961 and was spent entirely on improvements to residential accommodation at Cove House.
The Trustees are aware that the value of the freehold property is in excess of the cost included within the financial statements however have decided not to adopt a policy of revaluation of its properties.
Page 32
**ABBEYFIELD SILVERDALE SOCIETY**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **14. Debtors**
|**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income|**2021**
**£**
**219**
**12,974**
**13,503**
**26,696**|_2020_
_£_
_96,722_
_4,355_
_15,223_|
|---|---|---|
||||
|||_116,300_|
Due to a change in the billing method of residents, a significant variance has arisen within trade debtors. The effect of this timing difference has been to decrease trade debtors by £96,503.
## **15. Creditors: Amounts falling due within one year**
|Trade creditors
Other taxation and social security
Pension fund creditor
Other creditors
Accruals and deferred income
Deferred income at 1 April 2020
Resources deferred during the year
Amounts released from previous periods|**2021**
**£**
**12,437**
**10,355**
**3,145**
**11,019**
**47,849**
**84,805**
**2021**
**£**
**65,861**
**6,499**
**(65,861)**
**6,499**|_2020_
_£_
_16,850_
_15,496_
_2,356_
_-_
_104,892_|
|---|---|---|
||||
|||_139,594_|
|||_2020_
_£_
_6,496_
_65,861_
_(6,496)_|
||||
|||_65,861_|
Due to a change in the billing method of residents, a signifcant variance has arisen within deferred income. The effect of this change in billing method has decreased deferred income by £59,362.
Page 33
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **16. Statement of funds**
## **Statement of funds - current year**
|**Unrestricted funds**
**Designated funds**
Residents' Funds
Cove Orchard Sinking Fund
Future Projects Fund
Maintenance Fund
**General funds**
General Funds - all funds
**Total Unrestricted funds**|**Balance at 1**
**April 2020**
**£**
**-**
**16,325**
**1,204,390**
**150,000**
**1,370,715**
**640,812**
**2,011,527**|**Income**
**£**
**-**
**5,813**
**-**
**-**
**5,813**
**973,118**
**978,931**|**Expenditure**
**£**
**(543)**
**(3,714)**
**-**
**(131,049)**
**(135,306)**
**(809,610)**
**(944,916)**|**Transfers**
**in/out**
**£**
**543**
**-**
**(184,390)**
**81,049**
**(102,798)**
**102,798**
**-**|**Balance at**
**31 March**
**2021**
**£**
**-**
**18,424**
**1,020,000**
**100,000**|
|---|---|---|---|---|---|
||||||**1,138,424**|
||||||**907,118**|
||||||**2,045,542**|
Page 34
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **16. Statement of funds (continued)**
## **Statement of funds - prior year**
|**Unrestricted funds**
**Designated funds**
Residents' Funds
Cove Orchard Sinking Fund
Future Projects Fund
Maintenance Fund
**General funds**
General Fund
**Total Unrestricted funds**|_Balance at_
_1 April 2019_
_£_
_558_
_9,387_
_500,000_
_126,792_
636,737
_651,366_
1,288,103|_Income_
_£_
_811_
_6,938_
_-_
_-_
7,749
_1,647,636_
1,655,385|_Expenditure_
_£_
_(3,508)_
_-_
_-_
_(112,121)_
(115,629)
_(816,332)_
(931,961)|_Transfers_
_in/out_
_£_
_2,139_
_-_
_704,390_
_135,329_
_841,858_
_(841,858)_
_-_|_Balance at_
_31 March_
_2020_
_£_
_-_
_16,325_
_1,204,390_
_150,000_|
|---|---|---|---|---|---|
||||||_1,370,715_|
||||||_640,812_|
||||||_2,011,527_|
## **17. Summary of funds Summary of funds - current year**
|Designated funds
General funds|**Balance at 1**
**April 2019**
**£**
**1,370,715**
**640,812**
**2,011,527**|**Income**
**£**
**5,813**
**973,118**
**978,931**|**Expenditure**
**£**
**(135,306)**
**(809,610)**
**(944,916)**|**Transfers**
**in/out**
**£**
**(102,798)**
**102,798**
**-**|**Balance at**
**31 March**
**2021**
**£**
**1,138,424**
**907,118**|
|---|---|---|---|---|---|
||||||**2,045,542**|
Page 35
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **17. Summary of funds (continued)**
## **Summary of funds - prior year**
|Designated funds
General funds|_Balance at_
_1 April 2019_
_£_
_636,737_
_651,366_
_1,288,103_|_Income_
_£_
_7,749_
_1,647,636_
_1,655,385_|_Expenditure_
_£_
_(115,629)_
_(816,332)_
_(931,961)_|_Transfers_
_in/out_
_£_
_841,858_
_(841,858)_
_-_|_Balance at_
_31 March_
_2020_
_£_
_1,370,715_
_640,812_|
|---|---|---|---|---|---|
||||||_2,011,527_|
## **Unrestricted funds**
General funds are the 'free reserves' after allowing for all designated funds.
## **Designated funds**
Residents' fund receives income from fundraising events and makes expenditure on activities for the direct benefit of the residents of Cove House.
Cove Orchard sinking fund - The purpose of this fund is to build up a reserve to cover significant expenditure relating to the external fabric of the Cove Orchard properties. Income is collected from every resident on an annual basis through the estate service charge as laid out in the lease agreement.
The Future Projects fund designates reserves identified for the development of services to be provided in the future by the Society, in accordance with its objects and purposes. These funds may be used to support capital or revenue investment in line with the strategic plan developed by the Society’s Trustees and officers.
The Maintenance Fund has been designated by the Society's Trustees to address some of the legacy maintenance issues associated with the upkeep of Cove House residential care home.
Page 36
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **18. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|**Unrestricted**
**funds**
**2021**
**£**
Tangible fixed assets
684,574
Current assets
1,445,773
Creditors due within one year
(84,805)
**Total**
2,045,542|**Total**
**funds**
**2021**
**£**
**684,574**
**1,445,773**
**(84,805)**
**2,045,542**|
|---|---|
## **Analysis of net assets between funds - prior year**
|Tangible fixed assets
Current assets
Creditors due within one year
**Total**|_Unrestricted_
_funds_
_2020_
_£_
588,875
1,562,246
(139,594)
2,011,527|_Total_
_funds_
_2020_
_£_
_588,875_
_1,562,246_
_(139,594)_
_2,011,527_|
|---|---|---|
## **19. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income for the year (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Dividends, interests and rents from investments
Loss on the sale of fixed assets
Decrease/(increase) in debtors
Increase/(decrease) in creditors
**Net cash provided by operating activities**|**2021**
**£**
**34,015**
**48,065**
**(760)**
**-**
**89,603**
**(54,789)**
**116,134**|_2020_
_£_
_723,424_
_48,093_
_(1,451)_
_5,332_
_(71,159)_
_53,760_
_757,999_|
|---|---|---|
Page 37
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **20. Analysis of cash and cash equivalents**
|Cash in hand
**Total cash and cash equivalents**|**2021**
**£**
**1,419,077**
**1,419,077**|_2020_
_£_
_1,445,946_|
|---|---|---|
||||
|||_1,445,946_|
## **21. Analysis of changes in net debt**
|Cash at bank and in hand
Debt due within 1 year|**At 1 April**
**2020**
**£**
**1,445,946**
**(2,356)**
**1,443,590**|**Cash flows**
**£**
**(26,869)**
**(789)**
**(27,658)**|**At 31 March**
**2021**
**£**
**1,419,077**
**(3,145)**|
|---|---|---|---|
||||**1,415,932**|
## **22. Contingent liabilities**
A grant received from The Abbeyfield Society Limited in 2016 amounting to £17,000 may require repayment in part or in full if conditions set out in the grant agreement are not met.
## **23. Pension commitments**
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £8,937 (2020 - £8,272). Contributions totaling £3,145 (2020 - £2,356) were payable to the fund at the balance sheet date and are included in creditors.
## **24. Operating lease commitments**
At 31 March 2021 the company had commitments to make future minimum lease payments under noncancellable operating leases as follows:
||||**2021**|_2020_|
|---|---|---|---|---|
||||**£**|_£_|
|Not later than|1|year|**-**|_2,783_|
## **25. Related party transactions**
Dr June Greenwell and her husband are residents of Cove Orchard and pay the standard service fee to the Society.
Page 38
**ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **26. Controlling party**
The ultimate controlling party for all the financial affairs of the Society, as laid out in the Society's Articles of Association is the Executive Committee of the Board of Trustees.
Page 39