OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator. This document is also available as Markdown.

← Abbeyfield Silverdale Society

2024-03-31-accounts

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 2024

==> picture [239 x 60] intentionally omitted <==

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 - 9
Independent Auditors' Report on the Financial Statements 10 - 13
Statement of Financial Activities 14
Balance Sheet 15 - 16
Statement of Cash Flows 17
Notes to the Financial Statements 18 - 37

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 2024

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 (resigned 28 September 2023)
Dr N Martin (resigned 30 June 2024)
Mr G Walker, Chair
Dr A R Gaw (appointed 18 March 2024)
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
James Watson House
Montgomery Way
Rosehill
Carlisle
Cumbria
CA1 2UU
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 2024

The Chairman presents his statement for the year.

The financial year 2023/24 was a highly significant and busy year for Abbeyfield Silverdale Society. Although there were many external developments, as ever, our principal focus remains on our core offer as a high-quality provider of care for our residents. All our decisions and discussions as Trustees focus on this. Given the many challenges and pressures for care settings in the UK, the positive financial outcome, reported on below in the Trustees’ report, whilst operating for much of the year in a high inflation environment reflects well on the Society and its management. Throughout the year we were extremely fortunate to enjoy a high level of stability at all levels of staffing which transfers to the running of the home, allowing staff and residents to build up particularly good relationships. Low turnover of staff also ensures an effective training programme, and it was noticeable during the year that many staff, including Team Leaders, completed multiple health and care related training and qualifications. Trustees pass on their thanks to all staff for their huge commitment and efforts. Family and resident feedback remains positive.

Within Abbeyfield England, there has been a recent trend of closer working relationships between societies, including mergers. As the recruitment of Trustees becomes more difficult with the attendant increasing regulatory pressures, this trend is likely to continue. In last year’s report I discussed our planned merger with the Barrow in Furness Society (Millennium House). We are frustrated that this has not been completed yet, due to delays with the Regulator of Social Housing but all other work has been completed and we expect confirmation of Registered Provider status very soon. Full merger is anticipated in this year (2024) and our model of joint trustee working has continued.

We have also been approached by the Trustees of the Lytham St Anne’s Society and the Leigh Society to consider a full merger with the Silverdale Society. Both societies operate supported housing similar to Millennium House and our Trustees are very supportive of the proposals. The Lytham and Leigh societies are excellent houses with a tradition of knowledgeable and committed trustees working within the ethos of Abbeyfield. We have already built close working relationships with trustees and staff at the societies and the process of due diligence has started.

This is an exciting, but challenging, time for our Society. Our bed numbers will increase significantly, we will be operating in a different sector and over a wider geographical region. This will necessitate major changes for us and we will need to look at our strategic, operating and governance arrangements moving forward. We are fortunate to have highly skilled senior staff who are able to facilitate this process.

The Silverdale Society continues to play a major role within the Abbeyfield organisation. I sit on the Abbeyfield England Board chairing the Operations Group and on the Abbeyfield World Council. Our Chief Executive Officer is a member of the Strategy Group and a major contributor to the North Hub of societies and works closely with other Abbeyfield member societies.

I wish to place on record the close support I have had from all the Silverdale Society Trustees, our Chief Executive Officer and Registered Care Manager in what has been a very busy and transitional year. As is often the case some very long serving trustees have resigned from the Board of Trustees but we are fortunate in being able to appoint new board members with appropriate skills. Many thanks for your time, collegiality and advice.

................................................ 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 2024

The Trustees of Abbeyfield Silverdale Society (“the Society”) are pleased to present their annual Trustees’ report and financial statements for the year ending 31 March 2024. 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:

The Society operates a residential care home for 23 elderly people 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. Abbeyfield Silverdale Society (the Society) is a member of the Abbeyfield movement, whose purposes have been regarded as being for the public benefit for over 60 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 2024

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 2023-2024 financial year marked a period of significant focus on the Society’s strategy, with a number of milestones reached. The Trustees remain focussed on the financial stability of Abbeyfield Silverdale Society and hence, its future viability.

The provision of the highest quality service to the Society’s residents and stakeholders remains central to the objectives of the Trustees, alongside the growth and diversification of services. The Trustees and staff are ambitious to achieve an outstanding rating from CQC and remain focussed on continued improvement in standards of care. To that end, the annual telephone survey of residents’ family and friends carried out by a volunteer has once again provided positive feedback and a high level of satisfaction. Feedback from residents is received through their regular meetings and covers a wide range of subjects from menu planning to activities; satisfaction levels remain high.

During the year, the Trustee Board adopted the Good Governance code and reviewed the skill set of the trustees to ensure that there is relevant experience to support the Society’s future plans. The trustees have reviewed and updated the strategic plan for the next five years to 2028, with a focus on diversification to mitigate the risks around the primary income source being from one service provision.

A key aspect of the Society’s strategy is registration with the Regulator for Social Housing to become a registered provider. The Society’s application moved to the detailed stage in December 2023, however, the Society is still awaiting determination on the outcome of this application. The completion of the transfer of Abbeyfield Barrow in Furness to the Silverdale Society will be completed once the Registered Provider status is confirmed.

Also in December 2023, the Society submitted a planning application to Lancaster City Council for a new development at its site in Silverdale near Lancaster. The new development will be integrated uniquely into the existing building (Cove house) and will be based on providing 10 new supported living units for older people. The intention is that the units will be only available for rent under social housing regulations, subject to the Society being confirmed as a registered social housing provider.

The Society’s staff continue to support residents of Cove Orchard independent living as and when requested but is limited to pastoral, non-regulated support only, such as the provision of meals and equipment. 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; many of the Cove Orchard residents are now in their nineties.

Support for staff and staff wellbeing is an integral part of the ethos and culture of Abbeyfield Silverdale Society. All staff are encouraged and supported to increase the depth and breadth of their skills whether vocational or non-vocational, including in life coaching and resilience. The trustees remain committed to The Living Wage Foundation principles in their approach to pay awards for staff.

Page 4

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

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.

c. Investment policy and performance

The Society does not currently hold an investment portfolio in stocks, shares or other investment vehicles. Its liquid reserves are held in FSCS fully protected deposit accounts and managed by a cash management company to maximise interest.

Financial review

a. 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.

b. Financial review

The Society had a successful financial year for 2023-24 resulting in a surplus of £65,999. The total annual occupancy level for residential care was 93%, with an average of 95% during the financial year.

The primary source of income for the Society is from its residential care service and Trustees are always mindful of the cost of residential care and the impact of fee increases. The Trustees remain committed to ensuring fees reflect value for money as well as to discipline in cost management.

Expenditure on charitable activities increased by 7.2%, which was slightly above average inflation for the financial year. Although food and utility costs remained stable compared to the previous year, insurance costs increased by 21.5% in line with market trends and staff costs increased by more than inflation. The Society is an accredited Living Wage Foundation employer and implements the recommended increase in hourly rates of pay across all job functions; the Trustees are absolutely committed to recognising the value of staff through its commitment to the Living Wage Foundation rate. However, staff costs remain the single largest area of expenditure and represents 62% of the total income of the Society.

Income from residential care fees increased during the year, largely due to improved occupancy levels as the Society continued to recover from the impact of the Covid-19 pandemic. In addition, the Society has seen a significant improvement in receipts from interest on cash deposits as interest rates remained high during the financial year.

Capital investment in the Society’s buildings, in particular Cove House continued during the financial year. The cost of the new fire alarm system was recognised in this financial year together with further fire mitigation improvement measures at a cost of £80K. Residential care rooms are regularly updated for decoration and carpeting but more significant renovation work is only carried out following a full evaluation. Capital improvements were carried out across the Society’s site and to a number of residential care rooms at a total cost

Page 5

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

of £146.8K for the year and a further £47.6K was spent on fees relating to the Society’s planning application for additional supported living accommodation. Return on capital employed was 61% and return on assets was 30%.

On March 31st 2024 the Society had net assets of £2.17 million comprising tangible fixed assets and assets under construction of £966.8K and current assets of £1.303 million. During the year there was a net reduction in cash primarily due to the capital investment in tangible assets.

The Society’s financial resources consist mainly of cash reserves on deposit which are sufficient to meet its day to day requirements. The statement of cash flows on page 13 of the financial statements details the movement in cash during the financial year. Cascade Cash Management continue to manage the Society’s cash reserves, which are fully protected under the Financial Services Compensation Scheme. The trustees remain of the view that the financial protection of the Society’s reserves is its highest priority and as such may forego higher interest rate opportunities in order to maintain full FSCS protection. The Society’s development plans will require use of its liquid reserves within three to five years, which is the basis of the Society’s current policy on reserves.

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.

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 2024

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. New trustees are encouraged to inform themselves about the role and responsibility of a trustee through the extensive information available online and in printed format from The Charity Commission and other well established not for profit representative organisations. 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.

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. Additional professional indemnity insurance is in place to provide extended cover to trustees and senior staff.

Page 7

ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Plans for future periods

The Trustees reviewed the Society’s strategy in October 2023 and considered the strategic direction for the Society for the period up to 2028. The Trustees confirmed the principles underpinning the strategy as:

The Society’s Trustees recognise the importance of diversifying the Society’s income in order to mitigate potential future financial risks and to prevent the Society becoming over reliant on income from residential care services. The strategic aim is to move the balance of income from 95% residential care to an income stream split between housing and residential care services of approximately 50:50.

The application to become a Registered Provider of social housing and the merger of other Abbeyfield member societies’ operations into Abbeyfield Silverdale Society are a key part of achieving the strategic objectives.

The planning application for the development of supported housing at the Silverdale site is scheduled to be considered by Lancaster City Council planning committee in September 2024 and, if successful, will be a significant step forward towards achieving the Society’s strategic objectives.

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:

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:

Page 8

ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

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 9

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 2024 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:

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 10

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF ABBEYFIELD SILVERDALE SOCIETY (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

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 11

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:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

Page 12

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF ABBEYFIELD SILVERDALE SOCIETY (CONTINUED)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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 13

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024

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
2024
£
55
1,187,922
30,148
1,218,125
1,152,126
1,152,126
65,999
2,104,509
65,999
2,170,508		 Total
funds
2024
£
55
1,187,922
30,148
1,218,125
1,152,126
1,152,126
65,999
2,104,509
65,999
2,170,508		 Total
funds
2023
£
52,126
1,062,797
12,449
1,127,372
1,074,518
1,074,518
52,854
2,051,655
52,854
2,104,509

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 18 to 37 form part of these financial statements.

Page 14

ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) REGISTERED NUMBER: 10845391

BALANCE SHEET AS AT 31 MARCH 2024

Note
Fixed assets
Tangible assets
12
Property under construction
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		 74,564
1,234,292
1,308,856
(99,775)		 2024
£
892,466
68,961
961,427
1,209,081
2,170,508
2,170,508		 40,103
1,347,076
1,387,179
(121,595)		 2023
£
812,258
26,667
838,925
1,265,584
2,104,509
2,104,509

Page 15

ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) REGISTERED NUMBER: 10845391

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2024

Note
Charity funds
Restricted funds
16
Unrestricted funds
16
Total funds		 2024
£
-
2,170,508
2,170,508		 2023
£
-
2,104,509
2,104,509

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 18 to 37 form part of these financial statements.

Page 16

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024

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 property under construction additions
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 18 to 37 form part of these financial statements		 2024
£
46,218
30,148
(146,856)
(42,294)
(159,002)
-
(112,784)
1,347,076
1,234,292		 2023
£
153,038
12,449
(45,391)
(16,744)
(49,686)
-
103,352
1,243,724
1,347,076

Page 17

ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 requirements of the charity for a period beyond 12 months from the date of signing the financial statements. Net assets at the balance sheet date were £2,171k and cash reserves were £1,234k.

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 18

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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.

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.

Page 19

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

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.

2.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 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 - 1-11% straight line
Care equipment - 10-33% straight line
Fixtures and fittings - 10-33% straight line
Office equipment - 10-33% straight line

Where there is a refurbishment of communal areas or residents rooms which have been capitalised as freehold property additions, depreciation is charged at more appropriate rates and over shorter time periods to reflect the periodic nature of enhancement and replacement of assets to suit the living needs of the residents.

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.

Page 20

ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

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.

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.

Page 21

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 22

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

4. Income from donations and legacies

Unrestricted
funds
2024
£
Donations
55
Unrestricted
funds
2023
£
Donations
50,380
Grants
1,746
Total 2023
52,126
5.
Income from charitable activities
Unrestricted
funds
2024
£
Provision of residential care at Cove House
1,138,507
Independent living at Cove Orchard
27,373
Other income from Abbeyfield Societies
22,042
Total 2024
1,187,922
Unrestricted
funds
2023
£
Provision of residential care at Cove House
1,005,719
Independent living at Cove Orchard
55,854
Other income from Abbeyfield Societies
1,224
Total 2023
1,062,797		 Total
funds
2024
£
55
Total
funds
2023
£
50,380
1,746
52,126
Total
funds
2024
£
1,138,507
27,373
22,042
1,187,922
Total
funds
2023
£
1,005,719
55,854
1,224
1,062,797

Page 23

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

6. Investment income

Unrestricted
funds
2024
£
Investment income
30,148
Unrestricted
funds
2023
£
Investment income
12,449		 Total
funds
2024
£
30,148
Total
funds
2023
£
12,449

7. Analysis of expenditure on charitable activities Summary by fund type

Unrestricted
funds
2024
£
Provision of residential care at Cove House
1,090,840
Independent living at Cove Orchard
61,286
Total 2024
1,152,126
Unrestricted
funds
2023
£
Provision of residential care at Cove House
1,013,700
Independent living at Cove Orchard
60,818
Total 2023
1,074,518		 Total
2024
£
1,090,840
61,286
1,152,126
Total
2023
£
1,013,700
60,818
1,074,518

Page 24

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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
2024
Depreciation
2024
£
£
731,355
62,761
18,480
3,887
749,835
66,648
Staff costs
2023
Depreciation
2023
£
£
642,436
56,246
16,505
5,607
658,941
61,853		 Other costs
2024
£
296,724
38,919
335,643
Other costs
2023
£
315,018
38,706
353,724		 Total
2024
£
1,090,840
61,286
1,152,126
Total
2023
£
1,013,700
60,818
1,074,518

8. Analysis of expenditure by activities

Provision of residential care at Cove House
Independent living at Cove Orchard		 Activities
undertaken
directly
2024
£
1,021,207
58,338
1,079,545		 Support
costs
2024
£
69,633
2,948
72,581		 Total
funds
2024
£
1,090,840
61,286
1,152,126

Page 25

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

8. Analysis of expenditure by activities (continued)

Provision of residential care at Cove House
Independent living at Cove Orchard		 Activities
undertaken
directly
2023
£
871,067
31,340
902,407		 Support
costs
2023
£
142,633
29,478
172,111		 Total
funds
2023
£
1,013,700
60,818
1,074,518

Analysis of direct costs

Staff costs
Depreciation
Hotel, travel and subsistence
Printing and stationery
Telephone and fax
IT software, licenses and support costs
Advertising and promotion
Legal and professional, regulation costs (incl. DBS)
Auditors remuneration
Bank charges
Rates and water
Light and heat
Cleaning
Repair and maintenance
Residents' comforts & welfare
Food costs
Sundry expenses
Total 2024		 Provision of
residential
care at
Cove House
2024
£
672,455
62,761
6,353
2,684
3,210
23,656
5,862
21,454
14,210
1,840
5,461
31,867
7,533
77,407
5,780
61,264
17,410
1,021,207		 Independ't
living at
Cove
Orchard
2024
£
18,480
3,887
-
-
396
-
-
10,300
1,800
-
6,956
2,940
1,320
11,653
-
282
324
58,338		 Total
funds
2024
£
690,935
66,648
6,353
2,684
3,606
23,656
5,862
31,754
16,010
1,840
12,417
34,807
8,853
89,060
5,780
61,546
17,734
1,079,545

Page 26

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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
Repair and maintenance
Residents' comforts & welfare
Food costs
Sundry expenses
Total 2023
Analysis of support costs
Staff costs
Insurance
Total 2024		 Provision of
residential
care at Cove
House
2023
£
547,246
56,246
4,646
2,313
3,255
1,529
10,715
31,470
8,623
1,555
3,920
39,097
9,747
77,007
4,143
62,305
7,250
871,067
Provision of
residential
care at
Cove House
2024
£
58,900
10,733
69,633		 Independent
living at
Cove
Orchard
2023
£
-
5,607
-
-
-
1,590
-
-
-
-
8,342
3,536
-
11,995
-
-
270
31,340
Independ't
living at
Cove
Orchard
2024
£
-
2,948
2,948		 Total
funds
2023
£
547,246
61,853
4,646
2,313
3,255
3,119
10,715
31,470
8,623
1,555
12,262
42,633
9,747
89,002
4,143
62,305
7,520
902,407
Total
funds
2024
£
58,900
13,681
72,581

Page 27

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

8. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Staff costs
Computer costs
Legal and professional, regulation costs (incl. DBS)
Auditors' remuneration
Insurance
Total 2023		 Provision of
residential
care at Cove
House
2023
£
95,190
23,451
3,600
11,100
9,292
142,633		 Independent
living at
Cove
Orchard
2023
£
16,505
-
9,184
1,800
1,989
29,478		 Total
funds
2023
£
111,695
23,451
12,784
12,900
11,281
172,111

9. Auditors' remuneration

2024 2023
£ £
Fees payable to the company's auditor for the audit of the company's
annual accounts 14,510 11,400
Fees payable to the company's auditor in respect of:
All assurance services not included above 1,500 1,500

10. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2024
£
690,690
46,706
12,440
749,836		 2023
£
605,420
42,845
10,676
658,941

Included within the value of total staff costs are agency costs in respect of the catering function and dedicated care agency personnel.

Page 28

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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		 2024
No.
6
7
14
27		 2023
No.
5
6
15
26

The average headcount expressed as full-time equivalents was 21.

Management and administration
Catering and housekeeping
Care staff		 2024
No.
6
5
10
21		 2023
No.
5
4
10
19

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

In the band £60,001 - £70,000

2024 2023
No. No.
1 -

Key management personnel comprise the senior managers of the Society. Their aggregate remuneration was £126,251 (2023 - £116,874).

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2023 - £NIL).

During the year ended 31 March 2024, expenses totaling £105 were reimbursed or paid directly to one Trustee (2023 - £NIL).

Page 29

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

12. Tangible fixed assets

Cost or valuation
At 1 April 2023
Additions
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Freehold
property
£
1,069,623
104,250
1,173,873
319,997
48,640
368,637
805,236
749,626		 Plant and
machinery
£
112,653
12,072
124,725
84,599
5,364
89,963
34,762
28,054		 Motor
vehicles
£
-
9,326
9,326
-
1,360
1,360
7,966
-		 Fixtures
and
fittings
£
48,088
16,132
64,220
30,645
5,303
35,948
28,272
17,443		 Office
equipment
£
79,506
5,076
84,582
62,371
5,981
68,352
16,230
17,135		 Total
£
1,309,870
146,856
1,456,726
497,612
66,648
564,260
892,466
812,258

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 30

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

13. Property under construction

Property
under
construction
£
Valuation
At 1 April 2023 26,667
Additions 42,294
At 31 March 2024 68,961

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		 2024
£
32,263
16,440
25,861
74,564		 2023
£
9,150
13,781
17,172
40,103

15. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2024
£
17,060
12,134
42,179
28,402
99,775		 2023
£
24,336
18,290
35,470
43,499
121,595

Page 31

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 Funds - all funds
Total Unrestricted funds		 Balance at 1
April 2023
£
13,442
1,020,000
100,000
1,133,442
971,067
2,104,509		 Income
£
1,500
4,429
-
5,929
1,212,196
1,218,125		 Expenditure
£
-
-
(179,110)
(179,110)
(973,016)
(1,152,126)		 Transfers
in/out
£
(1,765)
-
179,110
177,345
(177,345)
-		 Balance at
31 March
2024
£
13,177
1,024,429
100,000
1,137,606
1,032,902
2,170,508

Page 32

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Cove Orchard Sinking Fund
Future Projects Fund
Maintenance Fund
General funds
General Funds - all funds
Total Unrestricted funds		 Balance at
1 April 2022
£
7,952
1,020,000
99,908
1,127,860
923,795
2,051,655		 Income
£
5,700
-
-
5,700
1,121,672
1,127,372		 Expenditure
£
(210)
-
(142,758)
(142,968)
(931,550)
(1,074,518)		 Transfers
in/out
£
-
-
142,850
142,850
(142,850)
-		 Balance at
31 March
2023
£
13,442
1,020,000
100,000
1,133,442
971,067
2,104,509

17. Summary of funds

Summary of funds - current year

Designated funds
General funds		 Balance at 1
April 2023
£
1,133,442
971,067
2,104,509		 Income
£
5,929
1,212,196
1,218,125		 Expenditure
£
(179,110)
(973,016)
(1,152,126)		 Transfers
in/out
£
177,345
(177,345)
-		 Balance at
31 March
2024
£
1,137,606
1,032,902
2,170,508

Page 33

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

17. Summary of funds (continued)

Summary of funds - prior year

Designated funds
General funds		 Balance at
1 April 2022
£
1,127,860
923,795
2,051,655		 Income
£
5,700
1,121,672
1,127,372		 Expenditure
£
(142,968)
(931,550)
(1,074,518)		 Transfers
in/out
£
142,850
(142,850)
-		 Balance at
31 March
2023
£
1,133,442
971,067
2,104,509

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 2024

18. Analysis of net assets between funds

Analysis of net assets between funds - current period

Unrestricted
funds
2024
£
Tangible fixed assets
892,466
Assets under Construction
68,961
Current assets
1,308,856
Creditors due within one year
(99,775)
Total
2,170,508
Analysis of net assets between funds - prior period
Unrestricted
funds
2023
£
Tangible fixed assets
812,258
Assets under Construction
26,667
Current assets
1,387,179
Creditors due within one year
(121,595)
Total
2,104,509		 Total
funds
2024
£
892,466
68,961
1,308,856
(99,775)
2,170,508
Total
funds
2023
£
812,258
26,667
1,387,179
(121,595)
2,104,509
19.
Reconciliation of net movement in funds to net cash flow from operating activities
2024
£
Net income for the period (as per Statement of Financial Activities)
65,999
Adjustments for:
Depreciation charges
66,648
Dividends, interests and rents from investments
(30,148)
Decrease/(increase) in debtors
(34,461)
Increase/(decrease) in creditors
(21,820)
Net cash provided by operating activities
46,218		 2023
£
52,854
61,853
(12,449)
26,630
24,150
153,038

Page 35

ABBEYFIELD SILVERDALE SOCIETY

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

20. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2024
£
1,234,292
1,234,292		 2023
£
1,347,076
1,347,076

21. Analysis of changes in net debt

Cash at bank and in hand At 1 April
2023
£
1,347,076
1,347,076		 Cash flows
£
(112,784)
(112,784)		 At 31 March
2024
£
1,234,292
1,234,292

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 £12,535 (2023 - £10,676). Contributions totaling £6,421 (2023 - £4,087) were payable to the fund at the balance sheet date and are included in creditors.

23. Operating lease commitments

At 31 March 2024 the company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2024
£
461
132
593		 2023
£
986
-
986

24. Related party transactions

Dr June Greenwell and her husband are residents of Cove Orchard and pay the standard service fee to the Society.

Page 36

ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 37