**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 2022**
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the company, its Trustees and advisers**|1|
|**Chairman's statement**|2|
|**Trustees' report**|3 - 8|
|**Independent auditors' report on the financial statements**|9 - 12|
|**Statement of financial activities**|13|
|**Balance sheet**|14 - 15|
|**Statement of cash flows**|16|
|**Notes to the financial statements**|17 - 36|
## **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 2022**
|**Trustees and Directors**|Canon P K Warren, President|
|---|---|
||Dr A Wells|
||Mr J W Robson|
||Mrs S Caddy|
||Mr M Casson|
||Mr A G Davies|
||Dr J Greenwell|
||Mrs J Jones|
||Dr N Martin|
||Mr G Walker, Chair (appointed 27 January 2022)|
||Mr M Rhodes (resigned 31 March 2022)|
||Mr J F Whalley (resigned 31 March 2022)|
|**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
**Solicitors**
Progression Solicitors
11 Queen Street
Ulverston
Lancashire
LA12 7AF||
Page 1
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2022**
The chairman presents his statement for the year.
At the beginning of the financial year the Chair of our Society, Dr Andrew Wells, stepped down as Chair due to ongoing health issues. We were extremely grateful to John Robson for taking over on a temporary basis until I became permanent Chair in January 2022. I would like to extend my huge thanks to all the work that Andy undertook in his role and, similarly thank John for acting as Chair during this period. I am very fortunate that both Andy and John continue to play an active role in the Society and have been there to offer me advice and help during a rather turbulent time. All Trustees at Cove House have been extremely welcoming and supportive.
Although the impact of COVID-19 was not as significant during the 2021-2022 financial year, we still had to manage significant episodic spikes over the winter period which resulted in further restrictions. In addition, there were a significant number of staff who contracted COVID. Once again, the management and staff were magnificent in their response, and the House and residents were supported through this difficult time. By the end of this financial year, we were able to return to a degree of ‘normality’ with full visitor access and Trustees being able to meet in person.
As a result of nearly two years operating within the pandemic, the occupancy rate remained at about 85% which is consistent with other local Care Settings and the National picture. Rates of occupation are now looking more positive with a robust waiting list and a rise in enquiries.
The Morecambe Bay group of houses continued to meet as we explored potential merger options. However, during the year Abbeyfield Extra Care Society (Hartland House) withdrew from the group and Abbeyfield Furness Society (Staveley House) made a decision to review their commitment. There was one notable outcome resulting from the Merger Group, with the Trustees of Abbeyfield Barrow in Furness (Millennium House) voting in principle to merge into the Silverdale Society. Trustees at ASS voted unanimously to support this proposal and due diligence is now taking place with the merger likely to be completed in the 2022-23 financial year. This will represent a very important event for our house as we integrate a Supported Living House into our existing portfolio.
................................................ Geoff Walker Chair of the Board of Trustees
Date:
Page 2
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022**
The Trustees of Abbeyfield Silverdale Society (“the Society”) are pleased to present their annual directors’ report and financial statements for the year ending 31 March 2022. The financial statements are prepared in accordance with the current Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102 effective 1 January 2019). In addition, the financial statements are prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.
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 3
**ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **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 is available for inspection.
## **Achievements and performance**
## **a. Review of activities**
The financial year ending in March 2022 has again 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 a further outbreak of COVID-19 in January 2022 but, as a result largely of 100% voluntary uptake of the vaccine, the outbreak only presented mild symptoms for staff and residents. CQC completed a 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 the lowest in the Society’s recent history and entirely the result of the pandemic regulations which required extensive periods of self isolation for new residents. The board of trustees are satisfied with this level of occupancy in the circumstances 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, day care and respite care could not be provided during the financial year.
The review of the Society’s strategy, which started in 2019-20, has remained static during the pandemic but, as restrictions began to ease in March 2022, the trustees began to consider its strategic goals again. The focus of the strategy remains financial stability and the provision of the highest quality service through the growth and diversification of services. 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 housing and services to older people. To that end, the working group that had been formed to consider the Cove House Improvement Plan has been working with Harrison Pitt Architects during 2021-22 to evaluate the entire site and draw up plans to complete the improvements to operational areas and incorporate a new build extension. The plans were approved by the trustees in February 2022 to go forward for costing and pre planning evaluation. In addition, the Society is a Real Living Wage employer and accredited with The Living Wage Foundation.
Activities and visiting resumed during the year, although some restrictions on visiting arrangements remained in place for much of the time and lifted significantly in April 2022. Residents were delighted that a level of normality returned and they were able to make meaningful contact with family and friends again.
The residents of Cove Orchard have continued to be supported as far as possible within the pandemic regulations and, whilst the 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.
The local Abbeyfield societies continue to provide mutual support and direct assistance to each other where necessary and continued to meet during the year to discuss closer formal collaboration.
Page 4
**ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Achievements and performance (continued)**
## **b. Fundraising**
The Charities Act 2011 requires charities to make a statement regarding fundraising activities. Where fundraising is carried out the amounts raised are presented in the accounts as voluntary income and include legacies and grants. No fundraising was carried out during the financial year as a result of the COVID-19 pandemic restrictions imposed on the adult social care sector by the Government.
## **c. Investment policy and performance**
The Society does not currently hold an investment portfolio in stocks, shares or other investment vehicle.
## **Financial review**
## **a. Financial review**
The financial year 2021-22 has proved financially challenging and the year end surplus is entirely 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 2021-22, the fees remained in line with other providers in the area.
During the year government grant income totalled £40,250 to support the Society with staff costs and infection control measures. As in the previous year, the Society was required 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 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 £6,113, after excluding the value of the grant income of £40,250, the Society went into deficit by £34,137. The reduction in income and the increase in costs is due entirely to the circumstances of the pandemic and the low occupancy level resulting from the Government restrictions. 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. The Society has also faced significant additional staffing costs as a result of COVID-19, with the staff sickness remaining close to 5% from a prepandemic year on year average of just 2%.
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 Cove House attic area for fire safety and insulation purposes. The rolling programme of maintenance to residents’ rooms continued alongside replacement of windows and the external guttering. In total the Society spent £200,000 on capital improvements to Cove House during the 2021-22 financial 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 cash flows on page 17 of the financial statements details the movement in cash during the financial year. Cascade Cash Management continue to manage the Society’s cash reserves of £1.02 million, which are fully 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.
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.
Page 5
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **b. COVID-19 pandemic**
Throughout the 2021-22 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 later in the 2022-23 financial year. Staff recruitment has been significantly impacted with vacancies remaining open for prolonged periods which has meant increased expenditure on agency staff.
The pandemic continued to have an impact on governance arrangements during the financial year 2021-22. Whilst some trustee meetings were able to be held in person as restrictions eased, some meetings were held virtually in order to reduce risks to the health of the Trustees and staff. Where meetings were held virtually, they 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.
## **c. 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 17 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.
## **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.
Page 6
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Structure, governance and management (continued)**
## **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, although this has been paused during the COVID-19 pandemic. 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. Risk management**
The Chief Executive Officer presents the Society’s corporate risk register to the Trustees for consideration and review from time to time. 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.
Trustees are indemnified by a trustee indemnity insurance policy provided by The Abbeyfield Society as part of the membership agreement.
## **Plans for future periods**
## **Future Developments**
During 2020-21 the four independent Abbeyfield societies in the Morecambe Bay area began working together under a formal cooperative agreement to support governance and business operations. The impact of the pandemic, particularly on charitable organisations, brought about a realisation amongst the Trustees of each of the parties to the Memorandum of Understanding (MOU) that closer working was necessary in order to build organisational and business resilience. At the end of March 2022, the Abbeyfield Barrow in Furness Society requested a formal merger with Abbeyfield Silverdale Society, which was formally accepted by the Trustees of Abbeyfield Silverdale in the post year end period. The expectation is that the merger will be completed by 31st March 2023 subject to Abbeyfield Silverdale Society becoming registered with the Regulator for Social Housing.
The development plans for the Society’s site in Silverdale will continue throughout the 2022-23 financial year.
Page 7
**ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **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.
## **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
Date:
Page 8
**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 2022 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 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 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 9
**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 10
**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;
Page 11
**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 12
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022**
|**Note**
**Income from:**
Donations and legacies
4
Charitable activities
5
Investments
6
**Total income**
**Expenditure on:**
Charitable activities
7
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2022**
**£**
**46,404**
**912,112**
**3,602**
**962,118**
**956,005**
**956,005**
**6,113**
**2,045,542**
**6,113**
**2,051,655**|**Total**
**funds**
**2022**
**£**
**46,404**
**912,112**
**3,602**
**962,118**
**956,005**
**956,005**
**6,113**
**2,045,542**
**6,113**
**2,051,655**|_Total_
_funds_
_2021_
_£_
_53,299_
_924,872_
_760_|
|---|---|---|---|
||||_978,931_|
||||_944,916_|
||||_944,916_|
||||_34,015_|
||||_2,011,527_
_34,015_|
||||_2,045,542_|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 17 to 36 form part of these financial statements.
Page 13
## **ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee) REGISTERED NUMBER: 10845391**
## **BALANCE SHEET AS AT 31 MARCH 2022**
|**Note**
**Fixed assets**
Tangible assets
12
Property under construction
13
**Current assets**
Debtors
14
Cash at bank and in hand
20
Creditors: amounts falling due within one
year
15
**Net current assets**
**Total assets less current liabilities**
**Total net assets**|**66,733**
**1,243,724**
**1,310,457**
**(97,445)**|**2022**
**£**
**828,720**
**9,923**
**838,643**
**1,213,012**
**2,051,655**
**2,051,655**|_26,696_
_1,419,077_
_1,445,773_
_(84,805)_|_2021_
_£_
_684,574_
_-_|
|---|---|---|---|---|
|||||_684,574_
_1,360,968_|
|||||_2,045,542_|
||||||
|||||_2,045,542_|
Page 14
## **ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee) REGISTERED NUMBER: 10845391**
## **BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022**
|**Note**
**Charity funds**
Restricted funds
16
Unrestricted funds
16
**Total funds**|**2022**
**£**
**-**
**2,051,655**
**2,051,655**|_2021_
_£_
_-_
_2,045,542_|
|---|---|---|
||||
|||_2,045,542_|
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:
................................................
## **Geoff Walker**
Chair of the Board of Trustees
Date:
The notes on pages 17 to 36 form part of these financial statements.
Page 15
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022**
|**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
Purchase of fixed asset additions not capitalised
**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 17 to 36 form part of these financial statements|**2022**
**£**
**29,902**
**3,602**
**(198,934)**
**(9,923)**
**(205,255)**
**-**
**(175,353)**
**1,419,077**
**1,243,724**|_2021_
_£_
_116,134_
_760_
_(143,763)_
_-_
**(143,003)**
**-**
**(26,869)**
_1,445,946_
_1,419,077_|
|---|---|---|
Page 16
**ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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 £2,052k and cash reserves were £1,244k, 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 17
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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 18
**ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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 19
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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 20
**ABBEYFIELD SILVERDALE SOCIETY (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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.
Page 21
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **4. Income from donations and legacies**
|**Unrestricted**
**funds**
**2022**
**£**
Legacies
3,571
Grants
42,833
**Total 2022**
46,404|**Total**
**funds**
**2022**
**£**
**3,571**
**42,833**|
|---|---|
||**46,404**|
Sums recovered through the Coronavirus Job Retention Scheme are included within grants.
|Legacies
Grants
_Total 2021_|_Unrestricted_
_funds_
_2021_
_£_
_1,116_
_52,183_
_53,299_|_Total_
_funds_
_2021_
_£_
_1,116_
_52,183_|
|---|---|---|
|||_53,299_|
## **5. Income from charitable activities**
|**Unrestricted**
**funds**
**2022**
**£**
Provision of residential care at Cove House
868,906
Independent living at Cove Orchard
43,206
**Total 2022**
912,112
_Unrestricted_
_funds_
_2021_
_£_
Provision of residential care at Cove House
_886,042_
Independent living at Cove Orchard
_38,830_
_Total 2021_
_924,872_|**Total**
**funds**
**2022**
**£**
**868,906**
**43,206**|
|---|---|
||**912,112**|
||_Total_
_funds_
_2021_
_£_
_886,042_
_38,830_|
||_924,872_|
Page 22
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
|**NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2022**||
|---|---|
|**6.**
**Investment income**
**Unrestricted**
**funds**
**2022**
**£**
Investment income
3,602
_Unrestricted_
_funds_
_2021_
_£_
Investment income
_760_
**7.**
**Analysis of expenditure on charitable activities**
**Summary by fund type**
**Unrestricted**
**funds**
**2022**
**£**
Provision of residential care at Cove House
904,584
Independent living at Cove Orchard
51,421
**Total 2022**
956,005
_Unrestricted_
_funds_
_2021_
_£_
Provision of residential care at Cove House
_893,376_
Independent living at Cove Orchard
_51,540_
_Total 2021_
_944,916_|**Total**
**funds**
**2022**
**£**
**3,602**|
||_Total_
_funds_
_2021_
_£_
_760_|
||**Total**
**funds**
**2022**
**£**
**904,584**
**51,421**|
||**956,005**|
||_Total_
_funds_
_2021_
_£_
_893,376_
_51,540_|
||_944,916_|
Page 23
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **7. Analysis of expenditure on charitable activities (continued)**
## **Summary by expenditure type**
|Provision of residential care at Cove House
Independent living at Cove Orchard
Provision of residential care at Cove House
Independent living at Cove Orchard|**Staff costs**
**2022**
**Depreciation**
**2022**
**£**
**£**
577,786
49,181
12,190
5,607
589,976
54,788
_Staff costs_
_2021_
_Depreciation_
_2021_
_£_
_£_
_593,825_
_43,283_
_18,117_
_4,782_
_611,942_
_48,065_|**Other costs**
**2022**
**£**
277,617
33,624
311,241
_Other costs_
_2021_
_£_
_256,268_
_28,641_
_284,909_|**Total**
**funds**
**2022**
**£**
**904,584**
**51,421**|
|---|---|---|---|
||||**956,005**|
||||_Total_
_funds_
_2021_
_£_
_893,376_
_51,540_|
||||_944,916_|
## **8. Analysis of expenditure by activities**
|Provision of residential care at Cove House
Independent living at Cove Orchard|**Activities**
**undertaken**
**directly**
**2022**
**£**
765,555
35,364
800,919|**Support**
**costs**
**2022**
**£**
139,030
16,057
155,087|**Total**
**funds**
**2022**
**£**
**904,585**
**51,421**|
|---|---|---|---|
||||**956,005**|
Page 24
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **8. Analysis of expenditure by activities (continued)**
|Provision of residential care at Cove House
Independent living at Cove Orchard|_Activities_
_undertaken_
_directly_
_2021_
_£_
_764,859_
_41,426_
_806,285_|_Support_
_costs_
_2021_
_£_
_128,517_
_10,114_
_138,631_|_Total_
_funds_
_2021_
_£_
_893,376_
_51,540_|
|---|---|---|---|
||||_944,916_|
## **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 2022**|**Provision of**
**residential**
**care at**
**Cove House**
**2022**
**£**
485,463
49,181
5,696
1,182
2,976
2,537
11,089
16,013
8,377
1,402
4,687
33,969
7,217
77,419
3,173
50,857
4,317
765,555|**Independ't**
**living at**
**Cove**
**Orchard**
**2022**
**£**
(137)
5,607
-
-
45
360
-
-
-
-
1,721
2,747
-
24,823
-
-
198
35,364|**Total**
**funds**
**2022**
**£**
**485,326**
**54,788**
**5,696**
**1,182**
**3,021**
**2,897**
**11,089**
**16,013**
**8,377**
**1,402**
**6,408**
**36,716**
**7,217**
**102,242**
**3,173**
**50,857**
**4,515**|
|---|---|---|---|
||||**800,919**|
Page 25
**ABBEYFIELD SILVERDALE SOCIETY**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **8. 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
_Total 2021_
**Analysis of support costs**
Staff costs
Computer costs
Legal and professional, regulation costs (incl. DBS)
Auditors' remuneration
Insurance
**Total 2022**|_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_
**Provision of**
**residential**
**care at**
**Cove House**
**2022**
**£**
92,326
15,688
14,501
7,890
8,624
139,029|_Independent_
_living at_
_Cove_
_Orchard_
_2021_
_£_
_10,783_
_4,782_
_-_
_-_
_1,050_
_360_
_-_
_-_
_-_
_-_
_4,306_
_2,010_
_1,278_
_16,857_
_-_
_-_
_-_
_41,426_
**Independ't**
**living at**
**Cove**
**Orchard**
**2022**
**£**
12,327
-
340
1,700
1,690
16,057|_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_|
||||**Total**
**funds**
**2022**
**£**
**104,653**
**15,688**
**14,841**
**9,590**
**10,314**|
||||**155,086**|
Page 26
**ABBEYFIELD SILVERDALE SOCIETY**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **8. Analysis of expenditure by activities (continued)**
## **Analysis of support costs (continued)**
|_Provision of_
_residential_
_care at Cove_
_House_
_2021_
_£_
Wages and salaries
_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_
**9.**
**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
**10.**
**Staff costs**
Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|_Independent_
_living at_
_Cove_
_Orchard_
_2021_
_£_
_7,334_
_-_
_-_
_900_
_1,880_
_-_
_10,114_
**2022**
**£**
**8,000**
**1,500**
**2022**
**£**
**547,224**
**33,799**
**8,953**
**589,976**|_Total_
_funds_
_2021_
_£_
_102,898_
_18,319_
_2,639_
_6,150_
_8,138_
_487_|
|---|---|---|
|||_138,631_|
|||_2021_
_£_
_4,150_
_1,050_|
|||_2021_
_£_
_564,487_
_38,518_
_8,937_|
||||
|||_611,942_|
Included within the value of total staff costs are agency costs in respect of the catering function and dedicated care agency personnel.
Page 27
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **10. Staff costs (continued)**
The average number of persons employed by the company during the year was as follows:
|Management and administration
Catering and housekeeping
Care staff|**2022**
**No.**
**5**
**4**
**20**
**29**|_2021_
_No._
_5_
_4_
_18_|
|---|---|---|
||||
|||_27_|
The average headcount expressed as full-time equivalents was 19.
|Management and administration
Catering and housekeeping
Care staff|**2022**
**No.**
**4**
**3**
**12**
**19**|_2021_
_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 £112,570 (2021 - £110,771).
Page 28
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **11. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2021 - £NIL)_ .
During the year ended 31 March 2022, expenses totaling _£_ 123 were reimbursed or paid directly to the Trustees _(2021 - £NIL_ ).
## **12. Tangible fixed assets**
|**Cost or valuation**
At 1 April 2021
Additions
At 31 March 2022
**Depreciation**
At 1 April 2021
Charge for the year
At 31 March 2022
**Net book value**
At 31 March 2022
_At 31 March 2021_|**Freehold**
**property**
**£**
**858,087**
**193,014**
**1,051,101**
**237,860**
**37,974**
**275,834**
**775,267**
_620,227_|**Plant and**
**machinery**
**£**
**86,674**
**1,250**
**87,924**
**76,908**
**3,637**
**80,545**
**7,379**
_9,766_|**Fixtures and**
**fittings**
**£**
**43,418**
**4,670**
**48,088**
**23,440**
**2,961**
**26,401**
**21,687**
_19,978_|**Office**
**equipment**
**£**
**77,366**
**-**
**77,366**
**42,763**
**10,216**
**52,979**
**24,387**
_34,603_|**Total**
**£**
**1,065,545**
**198,934**|
|---|---|---|---|---|---|
||||||**1,264,479**|
||||||**380,971**
**54,788**|
||||||**435,759**|
||||||**828,720**|
||||||_684,574_|
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.
The Charity was contractually committed to the purchase of a generator costing £18,524 at the balance sheet date. The balance is expected to be settled within 12 months of the year end.
Page 29
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **13. Property under construction**
||**Property**|
|---|---|
||**under**|
||**construction**|
||**£**|
|**Valuation**||
|Additions|**9,923**|
|At 31 March 2022|**9,923**|
This amount relates to the Cove House refurbishment. As this work was still in progress at the year end, it was not capitalised into fixed assets.
## **14. Debtors**
|**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income|**2022**
**£**
**18,044**
**17,675**
**31,014**
**66,733**|_2021_
_£_
_219_
_12,974_
_13,503_|
|---|---|---|
||||
|||_26,696_|
Due to a variance of the billing dates of residents, a significant variance has arisen within trade debtors. The effect of this timing difference has been to increase trade debtors by £17,825.
Page 30
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **15. Creditors: Amounts falling due within one year**
|Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 April 2021
Resources deferred during the year
Amounts released from previous periods|**2022**
**£**
**13,278**
**11,601**
**17,262**
**55,304**
**97,445**
**2022**
**£**
**6,499**
**8,156**
**(6,499)**
**8,156**|_2021_
_£_
_12,437_
_10,355_
_14,164_
_47,849_
_84,805_
_2021_
_£_
_65,861_
_6,499_
_(65,861)_
_6,499_|
|---|---|---|
Page 31
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **16. Statement of funds**
## **Statement of funds - current year**
|**Unrestricted funds**
**Designated funds**
Cove Orchard Sinking Fund
Future Projects Fund
Maintenance Fund
**General funds**
General Fund
**Total Unrestricted funds**|**Balance at 1**
**April 2021**
**£**
**18,424**
**1,020,000**
**100,000**
**1,138,424**
**907,118**
**2,045,542**|**Income**
**£**
**6,938**
**-**
**-**
**6,938**
**955,180**
**962,118**|**Expenditure**
**£**
**(21,124)**
**-**
**(147,998)**
**(169,122)**
**(786,883)**
**(956,005)**|**Transfers**
**in/out**
**£**
**3,714**
**-**
**147,906**
**151,620**
**(151,620)**
**-**|**Balance at**
**31 March**
**2022**
**£**
**7,952**
**1,020,000**
**99,908**|
|---|---|---|---|---|---|
||||||**1,127,860**|
||||||**923,795**|
||||||**2,051,655**|
Page 32
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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 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_|
## **17. Summary of funds Summary of funds - current year**
|Designated funds
General funds|**Balance at 1**
**April 2021**
**£**
**1,138,424**
**907,118**
**2,045,542**|**Income**
**£**
**6,938**
**955,180**
**962,118**|**Expenditure**
**£**
**(169,122)**
**(786,883)**
**(956,005)**|**Transfers**
**in/out**
**£**
**151,620**
**(151,620)**
**-**|**Balance at**
**31 March**
**2022**
**£**
**1,127,860**
**923,795**|
|---|---|---|---|---|---|
||||||**2,051,655**|
Page 33
**ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **17. Summary of funds (continued)**
## **Summary of funds - prior year**
|Designated funds
General funds|_Balance at_
_1 April 2020_
_£_
_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_|
## **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 34
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **18. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|**Unrestricted**
**funds**
**2022**
**£**
Tangible fixed assets
828,721
Assets under Construction
9,923
Current assets
1,296,896
Creditors due within one year
(83,885)
**Total**
2,051,655|**Total**
**funds**
**2022**
**£**
**828,721**
**9,923**
**1,296,896**
**(83,885)**
**2,051,655**|
|---|---|
## **Analysis of net assets between funds - prior year**
|Tangible fixed assets
Current assets
Creditors due within one year
**Total**|_Unrestricted_
_funds_
_2021_
_£_
684,574
1,445,773
(84,805)
2,045,542|_Total_
_funds_
_2021_
_£_
_684,574_
_1,445,773_
_(84,805)_
_2,045,542_|
|---|---|---|
## **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
Decrease/(increase) in debtors
Decrease in creditors
**Net cash provided by operating activities**|**2022**
**£**
**6,113**
**54,788**
**(3,602)**
**(26,477)**
**(920)**
**29,902**|_2021_
_£_
_34,015_
_48,065_
_(760)_
_89,603_
_(54,789)_
_116,134_|
|---|---|---|
Page 35
## **ABBEYFIELD SILVERDALE SOCIETY**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **20. Analysis of cash and cash equivalents**
|Cash in hand
**Total cash and cash equivalents**|**2022**
**£**
**1,243,724**
**1,243,724**|_2021_
_£_
_1,419,077_|
|---|---|---|
||||
|||_1,419,077_|
## **21. Analysis of changes in net debt**
|Cash at bank and in hand|**At 1 April**
**2021**
**£**
**1,419,077**
**1,419,077**|**Cash flows**
**£**
**(175,353)**
**(175,353)**|**At 31 March**
**2022**
**£**
**1,243,724**|
|---|---|---|---|
||||**1,243,724**|
## **22. 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 £8,953 (2021 - £8,937). Contributions totaling £2,268 (2021 - £3,145) were payable to the fund at the balance sheet date and are included in creditors.
## **23. Operating lease commitments**
The company had no commitments under non-cancellable operating leases at 31 March 2022.
## **24. Related party transactions**
Dr June Greenwell and her husband are residents of Cove Orchard and pay the standard service fee to the Society.
Abbeyfield Lakeland Extra Care Society Ltd was provided with support services amounting to £1,639 during the year. G Walker, Trustee is also a Trustee of this charity.
## **25. 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 36