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2023-03-31-accounts

Sherburn House Charity Trustees' Annual Report

Board of Trustees' Report and Operating and Financial Review for the year ended 31 March 2023

Registered Charity Number: 1177535 Homes England Registration Number: A3494 Companies House Registration number: 11196374

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Sherburn House Charity

Contents

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SECTION 1 Reference and Administrative Details page 1
SECTION 2 Board of Trustees' Report and Operating and Financial Review pages 2 - 5
SECTION 3 Statement of Board of Trustees on internal financial control page 6
SECTION 4 Statement of Board of Trustees' responsibilities page 7
SECTION 5 Independent auditor's report to the Board of Trustees of Sherburn House Charity page 8 - 10
SECTION 6 Statement of Financial Activities for the period ended 31 March 2023 page 11
SECTION 7 Balance sheet as at 31 March 2023 page 12
SECTION 8 Statement of Cash Flows for the period ended 31 March 2023 page 13
SECTION 9 Notes to the financial statements for the period ended 31 March 2023 page 14 -28
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Contents

Sherburn House Charity Section 1 Reference and Administrative Details

Principal Office

Ramsey House Sherburn Hospital Durham DH1 2SE

Registered Office

Sandgate House 102 Quayside Newcastle upon Tyne NE1 3DX

Legal Status

Registered with the Charities Commission Reg. No. 1177535

BOARD OF TRUSTEES

Mr Joseph Wilkinson (Chair from 01.09.20) Mr Jeffery Paul Breen - Appointed 03.09.19 Mrs Hayley Quinn - Appointed 01.09.20 Mrs Gillian Elizabeth Marshall - Appointed 08.12.20 Mr George Adair - Appointed 11.05.21 Mrs Laura Devaney - Appointed 07.02.23

Registered with Companies House Reg. No. 11196374

Registered as a Social Landlord with Homes England Reg. No. A3494

Nominated by

Co-opted Co-opted Co-opted Co-opted Co-opted Co-opted

KEY MANAGEMENT PERSONNEL Chief Executive

Ms Pauline Bishop Accountant Mr Peter Pybus Registered Manager Mrs Tanya Porthouse Housing & Maintenance Officer Ms Josephine Marsden

ADVISORS

Auditor - External

Azets Audit Services Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS

Solicitor

Ward Hadaway Sandgate House 102 Quayside Newcastle upon Tyne NE1 3DX

Investment Manager

RBC Brewin Dolphin Ltd. Time Central Gallowgate Newcastle upon Tyne NE1 4SR

Investment Manager / Banker

UBS Wealth Management 2 St James' Gate Newcastle upon Tyne NE4 7JH

Bankers

Lloyds Bank 19 Market Place Durham DH1 3NL

Page 1

Sherburn House Charity Section 2 Board of Trustees' report and operating and financial review

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 March 2023.

Structure, governance and management

Nature of governing document

The Charity is a registered Charity under the Charities Act 2011 and is regulated by its Articles of Association. The Charity is also registered with Homes England as a Social Landlord under Section 1(2) of the Housing and Regeneration Act 2008. This status is further clarified in note 1 to the financial statements.

At the quarterly Board meetings, the Trustees agree the broad strategy and areas of activity for the company, including sheltered housing and residential care for older people, estate and property matters, personnel policies, grant making, finance, investment, reserves, risk management policies and health and safety.

Recruitment and appointment of trustees

Prior to any recruitment, the Chairman undertakes a skills gap analysis in order to find individuals with the skills and knowledge required to support the charity in its current work.

Applications to become a Trustee are welcomed from any individual who meets the recruitment criteria and can empathise with the objectives of Sherburn House Charity.

Applicants are given details of the history of the charity and the work we currently undertake, and they are supported to understand the governance requirements and what is expected of them in their role as a Trustee. Candidates meet with the Chief Executive initially to discuss the work of the charity and to discuss the requirements of the vacancy, if they decide to proceed to apply, they are interviewed by the Chair, who then makes a recommendation for the appointment to the board. Potential Trustees are invited to observe the next board meeting and are appointed at the end of the meeting if they still wish to proceed, and the trustees are happy with the proposal to appoint them. Trustees are appointed for a period of three years, with an option to extend by up to three more years. After a 6-year continuous term, a compulsory one-year break may be followed by a final three years.

Induction and training of trustees

Potential Trustees undertake a full induction and references, and DBS checks are taken up prior to their appointment. New Trustees receive a copy of the “Essential Trustee” and all Governance policies and procedures. All Trustees operate in a voluntary capacity and receive no benefits from the Charity. All expenses re-claimed from the charity are set out in the financial statements.

Remuneration Policy

Sherburn House Charity is committed to ensuring a proper balance between paying our staff fairly so that we attract and retain the best people for the job and careful management of our charity funds. In so doing we will ensure the greatest effectiveness in delivering our charitable objectives and meeting the needs of our beneficiaries.

Sherburn House Charity will seek advice on remuneration from various sources, for comparable examples of posts within the care sector.

Sherburn House Charity commits to maintaining an open and honest policy on remuneration to assure its stakeholders and service users of the financial priorities of the charity.

A report on the actual remuneration and expenses received by the Chief Executive and Senior Management Team are prepared annually as part of the statutory accounts. Information is contained in Note 7 Employee Information.

In accordance with the Charity Commission’s Statement on Recommended Practice 2019 (SORP) and guidance contained within the National Council for Voluntary Organisations’ ‘Report of the Inquiry into Charity Senior Executive Pay’, Sherburn House Charity will include or disclose the following in its Annual Report and Accounts:

Board of Trustees' Meetings

The Board of Trustees meet quarterly and at the meeting scheduled for 12 September 2023 the Trustees will be invited to:

Page 2

Sherburn House Charity Section 2 Board of Trustees' report and operating and financial review (continued)

Control

The Board of Trustees retains responsibility for a defined range of areas covering strategic, operational and financial elements.

The Board of Trustees has put in place an organisational structure which clearly defines lines of responsibility and delegations of authority. These are found in the Charity's financial regulations, standing orders, treasury management and risk management arrangements.

Information Reporting Systems

Financial reporting systems include regular reviews of an overall financial business plan, preparation of detailed annual budgets and the production of detailed monthly management accounts. These are prepared by the Executive Team and are considered and approved by the Board of Trustees.

Monitoring

A process of regular management monitoring on control issues provides assurance to senior managers and to the Board of Trustees. This includes a rigorous process for ensuring that corrective action is taken in relation to any significant control issues.

Risk Management

The Charity has a comprehensive risk management strategy which identifies risk management responsibilities. Risk management arrangements identify risks facing the Charity, the actions in place to mitigate these risks, the officers responsible for each risk and the monitoring arrangements.

The Board of Trustees has examined the major strategic and operational risks which the Charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.

Objectives and activities

Our Strategic goals are split into our 3 main activities:

----- Start of picture text -----
Grants 1. Provide small grants to people in financial need •We will maximise grant impact by sourcing match funding
from grant managers
•Review Bi-annual reports to monitor impact & regional
spread of funds
Care 2. Provide high quality, responsive & innovative care services to •We will improve operational efficiencies within the care
older people home by ensuring we have the right people with the skills
required to maximise health & wellbeing outcomes for
residents.
•New models of care will be explored through partnerships
and increased use of technology
Housing & Estates 3. Provide high quality housing options for beneficiaries. •We will ensure all planned and unplanned repairs are
timely and are of a high standard
•Customer Satisfaction Survey /& quarterly residents
meetings
•We will identify opportunities for new housing solutions for
people aged 55+.
----- End of picture text -----

Principal Activities

The principal activities of the Charity are:

(a) Provision of sheltered accommodation and residential care for older people; and

(b) Making of grants under the head of relief in need, within the beneficial area of the Charity.

Charitable Objectives

Our Mission is: To provide relief in need to people living in the beneficial area through the provision of care, housing and grant funding. Our Vision is: To improve the quality of life for all vulnerable people.

Our Core Values of: Integrity, quality, care, dignity and respect, will influence the work we do and our attitudes to each other.

Public Benefit

The Charity provides residential care and sheltered housing for older people with care needs, without discrimination. Those unable to pay the fees in full are part-funded by local authorities following a process of assessment determined by government regulations.

The Charity awards grants under the heading of Relief In Need:

The Charity entered into an arrangement with County Durham Community Foundation for them to administer Grants on it's behalf to Organisations and to Individuals, running for one year from 1 April 2022.

Page 3

Sherburn House Charity Section 2 Board of Trustees' report and operating and financial review (continued)

Achievements and Performance

Chair's Report

The accounting period is our first operating under the new charitable Company status. Thankfully, despite the complexities of the transfer to the new company it has remained business as usual at an operational level. I am ever grateful for the support and loyalty of my fellow Trustees, now also known as Directors of the Charity, who give up their own time to provide strategic guidance and support to the charity as it continues its journey of continuous improvement and modernisation. This year we welcome new trustee, Laura Devaney, the board. Laura’s skills and experience compliment those of our current board members and we all look forward to working with her in the future. Our 2019-23 Five Year Plan has come to a successful conclusion this year. The timescale covers a major governance restructure and significant refurbishment and improvements to current properties and our goals and aspirations have been incorporated into our plan for next five year period. Thanks to everyone who plays a part in this great organisation.

Chief Executive's Report March 2023

There was a good all round performance for the charity during the final year of the five year plan. The significant investment in improving the housing and residential service has paid off as both have operated at full capacity during the reporting period.

During the year April 2022 - March 2023, over 600 individuals benefitted from Sherburn House Charity Relief in Need grants, currently managed for us by County Durham Community Foundation, . 20% of the grants supported people with mental health issues, and just under 10% supported victims of crime or abuse. Health issues (including serious illness), domestic violence and poverty were the main issues affecting applicants. 40% of the primary beneficiaries of such grants were children and young people.

As always, the staff team worked extremely hard to make this a successful year, not only in financial terms, but also in regards to the improvements to our systems and processes, all of which were well tested by the different regulators and external auditors. A “Good” CQC inspection report was well received, the team have done terrifically well across the board.

Plans for the Future

The new Five Year Plan has been adopted by the Trustees for the 2023-28 period.

We have consolidated the strategic aims into three main strands and the objectives for the year ahead are incorporated into the table below.

----- Start of picture text -----
Grants 1. Provide small grants to people in •We will maximise grant impact by sourcing match funding from grant
financial need managers
•Review Bi-annual reports to monitor impact & regional spread of funds
Care 2. Provide high quality, responsive & •We will improve operational efficiencies within the care home by
innovative care services to older ensuring we have the right people with the skills required to maximise
people health & wellbeing outcomes for residents.
•New models of care will be explored through partnerships and
increased use of technology
Housing & Estates 3. Provide high quality housing options •We will ensure all planned and unplanned repairs are timely and are of
for beneficiaries. a high standard
•Customer Satisfaction Survey /& quarterly residents meetings
•We will identify opportunities for new housing solutions for people aged
55+.
----- End of picture text -----

In addition to the operational objectives, the trustees will review the governing document to ensure the charitable aims remain relevant for our beneficiaries. The trustees and I are excited to explore opportunities for further growth and development to ensure the charity works to its full potential.

Page 4

Sherburn House Charity Section 2 Board of Trustees' report and operating and financial review (continued)

Operating Review

Performance in the Period

A summary of the main results is shown in the Table below.

Notes
Turnover
3
Operating costs
3
Operating surplus
Profit / (Loss) on sale of investments:
Accumulated income fund investments
3 / 13
Capital fund investments (Brewin Dolphin)
3 / 13
Capital fund investments (UBS)
3 / 13
Surplus for the period
Donation from linked charity
1.2
Unrealised gain on investment property values
12
Unrealised (loss) on investment portfolio values (Brewin Dolphin)
13
Unrealised (loss) on investment portfolio values (UBS)
13
Net movement in funds for the period		 Housing
activities
Non Housing
Total
Prior Period
Total
£
£
£
£
2,564,737
1,126,148
3,690,885
1,512,183
(2,175,589)
(903,558)
(3,079,147)
(1,496,024)
389,148
222,590
611,738
16,159
(7,264)
(7,264)
-
(130,311)
(130,311)
5
(21,334)
(21,334)
174,446
389,148
63,681
452,829
190,610
-
34,534,948
335,000
(26,000)
(1,222,895)
(462,722)
(476,040)
(149,796)
(911,106)
34,087,040

The overall surplus for the period of £452,829, contained a deficit on the housing (sheltered accommodation) of -£3,933 (2022: deficit -£32,687).

Financial Review

The principal accounting policies are set out on pages 14 to 19 of the financial statements. These have been approved by the Board of Trustees.

Unrestricted funds Policy

The Unrestricted funds are to be used for the Charity's general charitable purposes. A reserve of £500,000 has been agreed as being an appropriate level, which equates to approximately three months of expenditure. The level of these funds will be reviewed each year as part of the budgeting process.

Unrestricted funds at 31 March 2023 totalled £1,129,047, which included designated funds of £1,382,570 relating to Homes England Grants. The Charity aims to build back it's General undesignated funds to a value of £500,000, with any funds in excess of this utilised to support the operating and development activities of the Charity. Unrestricted funds increased in the year by £103,070

A transfer of £350,000 from the Charity's Unrestricted funds to it's Extraordinary repair fund has been made, largely reflecting the positive contribution made by the Care Home in the year, following the major refurbishment of Beddell House.

Investment Policy

In accordance with the regulatory scheme, the Board of Trustees has the power to invest in such stocks, shares, investments and property, as they see fit. The Board of Trustees has engaged Brewin RBS Dolphin Limited and UBS Wealth Management as Investment Managers to manage the investment portfolios on a discretionary basis within certain parameters for asset classes.

The Board of Trustees reviewed the Charity's investment principles in February 2009, and this was also reviewed again in 2019-20.

Similarly, the Board of Trustees engaged GSC Gray's, Chartered Surveyors, to manage the investment properties and the investment properties were subject to their independent property valuation as at March 2023.

Fixed Assets

Tangible Fixed Assets owned by the Charity were subject to an independent property valuation as at 31 March 1996.

Page 5

Sherburn House Charity Section 3

Statement of Board of Trustees on internal financial controls

Statement of Board of Trustees on internal financial controls

The Board of Trustees acknowledges its overall responsibility for establishing and maintaining the whole system of internal control and reviewing its effectiveness.

The system of internal control is designed to manage, rather than eliminate, the risk of failure to achieve business objectives, and to provide reasonable assurance against material misstatement or loss.

The process for identifying, evaluating and managing the significant risks by the Charity is ongoing and has been in place throughout the period commencing 1 April 2022 up to the date of approval of the report and financial statements.

Key elements of the control framework and sources of assurance include:

There were no attempted or actual frauds during the year that required reporting to the Homes England.

The Board of Trustees cannot delegate ultimate responsibility for the system of internal control, but it can, and has, delegated authority to the Executive Team to regularly report on the effectiveness of the system of internal control.

Key policies and procedures have been established and are designed to provide effective internal control.

These key areas cover control, information reporting systems, monitoring and risk management.

Fundraising disclosures

The charity is required to report how it deals with fundraising from the public. The charity does not use a professional fundraiser or commercial participator to raise funds. Any monies raised direct from the public follows all guidelines set out by the Charity Commission and UK law in every respect. We respect the privacy and contact preferences of all public donors.

Use of Volunteers

The charity has not used volunteers during the period

Page 6

Sherburn House Charity Section 4 Statement of Board of Trustees' responsibilities

The Board of Trustees is responsible for preparing the report and financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Current legislation requires the Board of Trustees to arrange for the preparation of financial statements for each financial year which give a true and fair view of the state of affairs of the Charity as at the end of the financial year and surplus or deficit for the year.

In preparing those financial statements, the Board of Trustees is required to:

The Board of Trustees is responsible for making the appropriate arrangements for keeping accounting records which disclose, with reasonable accuracy, at any time, the financial position of the Charity and to enable it to ensure that the financial statements comply with the Charities Act 2011, adapted to include disclosures required by the Housing and Regeneration Act 2008, FRS 102 and the Statement of Recommended Practice (SORP): accounting by registered social housing providers 2018, and accounting direction for private registered providers of social housing-2019.

The Board of Trustees is responsible for taking such steps as are reasonably open to it to safeguard the assets of the Charity and to prevent and detect fraud and breaches of the law and regulations.

The Board of Trustees is responsible for ensuring that the report of the Board of Trustees is prepared in accordance with FRS 102 and adapted to include disclosures required by the Statement of Recommended Practice (SORP): accounting by registered social housing providers 2018, and accounting direction for private registered providers of social housing - 2019.

The Board of Trustees is also responsible for the maintenance and integrity of the corporate and financial information on the Charity's website.

Provision of information to Auditors

So far as each Trustee is aware, there is no relevant audit information of which the Charity's auditors are unaware; and each Trustee has taken all steps that he / she ought to have taken, as a Trustee, in order to make himself / herself aware of any relevant audit information and to establish that the Charity's auditors are aware of that information.

Auditor

Azets Audit Services have indicated their willingness to stand for reappointment at the forthcoming Annual General Meeting.

Approved by the Board of Trustees on 12 September 2023 and signed on its behalf.

Mr Joseph Wilkinson: Trustee

Mr Jeffery Paul Breen: Trustee

Page 7

Sherburn House Charity Section 5

Independent auditors' report to the Board of Trustees of Sherburn House Charity

(a registered Social Landlord Under the Housing and Regeneration Act 2008)

Opinion

We have audited the financial statements of Sherburn House Charity (the "charity’) for the period ended 31 March 202 3 which comprise the Statement of Financial Activies, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice), adapted to include additional disclosures required by the Housing SORP 2018 and the Accounting Direction for Private Registered Providers of Social Housing 2019.

In our opinion the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the period then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statemets were 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.

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 auditor’s report thereon. The board is responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

[continued …]

Page 8

Sherburn House Charity Section 5

Independent auditors' report to the Board of Trustees of Sherburn House Charity

(a registered Social Landlord Under the Housing and Regeneration Act 2008)

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Trustees’ Report for the financial period for which the financial statements are prepared is consistent with the financial statements: and

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept by the charitable company, or returns adequate for our audit have not been received from branches not visited by us; or

Responsibilities of trustees

As explained more fully in the Statement of Board of Trustees’ Responsibilities (set out on page 7), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the board either intends to liquidate the association or to cease operations, or has no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

[continued …]

Page 9

Sherburn House Charity Section 5

Independent auditors' report to the Board of Trustees of Sherburn House Charity

(a registered Social Landlord Under the Housing and Regeneration Act 2008)

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• Enquiries with management, about any known or suspected instances of non-compliance with laws and regulations and fraud;

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias

Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and Safety; employment laws; compliance with Care Quality Commission; and compliance with the UK Companies Act and Charities Act.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of Our Report

This report is made solely to the charitable companies trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

…...................................................

Simon Brown BA ACA DChA (Senior Statutory Auditor) For and behalf of Azets Audit Services Chartered Accountants Statutory Auditor Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS

Date:….......................................

Azets Audit Services is a trading name of Azets Audit Services Limited

Page 10

Sherburn House Charity Section 6 Statement of financial activities for the year ended 31 March 2023

----- Start of picture text -----
Unrestricted Restricted Endowment Prior Period
Notes Funds Funds Funds Total Funds Total Funds
£ £ £ £ £
Income from:
Donation from linked Charity 1.1/1.2 - - - - 34,534,948
Charitable Activities 3/4 2,325,787 122,282 116,668 2,564,737 1,100,568
Investments 4/8 1,086,148 40,000 1,126,148 411,615
Total 3,411,935 122,282 156,668 3,690,885 36,047,131
Expenditure on:
Charitable activities 3/5 (2,053,307) (122,282) - (2,175,589) (1,045,580)
Other 3 (903,558) - (903,558) (450,444)
Total (2,956,865) (122,282) - (3,079,147) (1,496,024)
Surplus before losses on
investments 455,070 - 156,668 611,738 34,551,107
Net (losses) on investments 12/13 - - (1,522,844) (1,522,844) (464,067)
Net income/(expenditure) 455,070 - (1,366,176) (911,106) 34,087,040
Transfers between funds 17 (352,000) - 352,000 - -
Other recognised gains/(losses):
- - - - -
Other gains/(losses)
Net Movement in funds: 103,070 - (1,014,176) (911,106) 34,087,040
Reconciliation of funds:
Total funds brought forward 1,025,977 - 33,061,063 34,087,040 -
Total funds carried forward 1,129,047 - 32,046,887 33,175,934 34,087,040
----- End of picture text -----

Continuing Operations

The results for the period relate wholly to continuing operations. None of the Charity's activities were either acquired or discontinued during the financial years.

The notes on pages 14 to 28 form an integral part of these financial statements.

The financial statements were approved by the Board of Trustees and authorised for issue on 12 September 2023 and signed on its behalf by:

Mr Joseph Wilkinson: Trustee

Mr Jeffery Paul Breen: Trustee

Page 11

Sherburn House Charity Section 7 Balance Sheet as at 31 March 2023

Notes March 2023 March 2022
Fixed assets: £
Tangible assets 11 3,453,944
3,508,504
Investment properties 12 8,300,000
7,965,000
Investment portfolios 13(i), (ii) 27,223,519
29,126,539
Total fixed assets 38,977,463
40,600,043
Current assets:
Stocks 14(i) 6,199
-
Debtors 14(ii) 181,832
166,282
Cash at bank and in hand 865,492
571,163
Total current assets 1,053,523
737,445
Liabilities:
Creditors: amounts falling due within one year
UBS Call Loan 15 /13(iii) (6,374,455)
(6,810,980)
Other Creditors & Accruals 15 (480,597)
(439,468)
(6,855,052)
(7,250,448)
Net current liabilities (5,801,529)
(6,513,003)
Total Assets less current liabilities 33,175,934
34,087,040
Total net assets 33,175,934
34,087,040
The funds of the Charity:
Endowment funds 17 20,685,988
19,690,211
Investment revaluation reserve 17 11,360,899
13,370,852
Restricted funds Total endowment funds 16a / 17 32,046,887
33,061,063
-
-
Unrestricted funds 16a / 17 1,129,047
1,025,977
Total unrestricted funds 1,129,047
1,025,977
Total charity funds 33,175,934
34,087,040

The notes on pages 14 to 28 form an integral part of these financial statements.

The financial statements were approved by the Board of Trustees and authorised for issue on 12 September 2023 and signed on its behalf by:

Mr Joseph Wilkinson: Trustee

Mr Jeffery Paul Breen: Trustee

Companies House Reg. No. 11196374

Page 12

Sherburn House Charity Section 8 Statement of Cash Flows for the year ended 31 March 2023

Cashflow from operating activities
Net cash generated from operating activities
Cashflow from investing activities
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Purchase of tangible fixed assets (Donation)
Proceeds from the sale of tangible fixed assets
Cash transferred to investment portfolios
Purchase of investments
Purchase of investments (Donation)
Purchase of investments land (Donation)
Proceeds from sale of investments
Net cash generated from investing activities
Cashflow from financing activities
Loans drawn from / (repaid to) UBS loan
Loans drawn from UBS loan (Donation)
Interest charges on UBS loan
Dividends received applied to UBS loan
Net cash generated from financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at the end of the year		 Notes
March 2023
March 2022
£
£
21
(356,624)
34,381,831
1,357,795
510,277
11
(90,495)
-
-
(3,576,318)
-
-
13
-
-
13
(4,445,028)
(1,833,454)
- (29,622,581)
-
(7,991,000)
4,265,205
1,891,427
1,087,477 (40,621,649)
(225,000)
-
-
6,935,271
213,454
45,357
(424,978)
(169,648)
(436,524)
6,810,980
294,329
571,163
571,163
-
865,492
571,163

The notes on pages 14 to 28 form an integral part of these financial statements.

Page 13

Sherburn House Charity Section 9 Notes to the financial statements for the year ended 31 March 2023

1.1 Status of Charity

Sherburn House Charity is a company limited by guarantee which was incorporated on 08.02.18, company number 11196374, and is registered with the Charity Commission, number 1177535. On 01.10.21 all the activities and commitments of the unincorporated charity (Sherburn House Charity 217652) were transferred to the incorporated Charity, along with it's assets and liabilities at their balance sheet values. The incorporated Charity is the reporting charity for the Unincorporated charity (217652) to which it is linked.

1.2 Donation from Unincorporated Charity (217652)

The total net assets transferred on 01.10.21 from the unincorporated Charity (217652) amounted to £34,534,948, which was comprised of £33,288,948 Endowment funds, and £1,246,000 Unrestricted funds.

2 Accounting Policies

2.1 Statement of Compliance

The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011 and are adapted to include disclosures required by the accounting by registered social housing providers 2018, and accounting direction for provate registered providers of social housing - 2019.

2.2 Basis of Preparation

The Charity remains registered with Homes England as a social landlord under the Housing and Regeneration Act 2008, as a small part of its activities are housing activities as defined in that Act. As most of the activities of the Charity are not housing activities, the Charity has applied the Charities SORP (FRS102) in preparing it's accounts, with some amendments to include additional requirements for Homes England. The application of the Charities SORP (FRS102) is also required by the Charity Commission direction dated 08.12.21.

The financial statements are prepared under the historical cost convention as modified by the revaluation of certain Tangible Fixed Assets, Investment Properties and the Investment Portfolio. The financial statements are prepared in accordance with applicable accounting standards.

The financial statements include the income and expenditure and assets and liabilities of its associated charity, The Sherburn House Educational Foundation (Registered No. 527325).

The Charity is a Public Benefit Entity ('PBE') as defined in FRS 102.

These financial statements are prepared in sterling which is the functional currency of the entity.

The trustees have prepared budgets and forecasts which give them adequate comfort that the charity is a going concern. Therefore the trustees are of the view that the charity has sufficient resources for at least the next 12 months from the date of approving the financial statements. As a result, the charity’s financial statements have been prepared on a going concern basis.

2.3 Finance

The financial statements have been prepared on the basis that any capital expenditure incurred on housing activities referred to in note 2.4 will be either grant aided, funded by loans, or where appropriate, financed from the Charity's non-housing resources.

2.4 Social Housing Grants (SHG)

SHG's are made by Homes England and are utilised to reduce the amount of mortgage loans approved for SHG to a level that can be financed from the equivalent fair rental income available. The grants are made direct to the lending authority and are reflected in the Charity's accounts only when payment has been made and the relevant mortgage loan reduced.

Under the Charities SORP (FRS102), grants are taken to income.

Page 14

Sherburn House Charity Section 9 Notes to the financial statements for the year ended 31 March 2023 (continued)

2.5 Estimation uncertainty and judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances.

There are considered to be no significant judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies which effect the amounts recognised in the financial statements.

2.6 Income

Charitable Activities

The rents of the housing stock and Care home fees are recognised at the point of being invoiced.

Donations

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Investment Income

Variable Royalties and Wayleaves are recognised when the Charity is informed of their values in June and December by Breedon Northern Limited.

Investment income from the portfolios is recognised when receivable.

2.7 Expenditure

Charitable Activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support Costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance Costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees' meetings and reimbursed expenses.

2.8 Taxation

The charity 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 charity 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.

2.9 Fixed Assets: Land and Buildings

Land and buildings at Sherburn House Charity related to the housing activities are reflected in the financial statements at their 'deemed cost' (based on a valuation prior to the transition to FRS102) as the original costs are not available.

Improvements to the properties are stated at cost or valuation.

The Charity provides accommodation for older people with care needs, in the form of sheltered housing accommodation and a residential care home. These properties have been held by the Charity for many years and have attracted SHG assistance in the past.

Page 15

Sherburn House Charity Section 9 Notes to the financial statements for the year ended 31 March 2023 (continued)

2.10 Depreciation

Tangible fixed assets are written off over their estimated useful life, net of estimated disposal proceeds (that may be nothing).

Land:

Land is not depreciated, except for car park land which is depreciated at 10% on cost.

Buildings:

Furniture, Fittings, Equipment and Vehicles: Equipment 10% - 20% of cost Computer equipment 25% of cost Vehicles 20% of cost Furniture and fittings 10% of cost

Property, Plant & Equipment : Housing activities

Up to 31.03.18 the total value of certain buildings utilised within the housing function of the Charity were depreciated at 2% per annum. In line with FRS 102 and the Statement of Recommended Practice (SORP): accounting by registered social housing providers 2018 (8.16), an analysis of these buildings was undertaken in the year ended 31.03.19. The following components were established, and associated annual depreciation rates have been applied since:

Structure 1% of cost Roof 3.3% of cost Kitchen / Bathroom / Mechanical Systems / Electrics 5% of cost

SHG Assisted Schemes

The development cost of improvements to the housing property would include the following, as appropriate:

These costs are termed ''qualifying costs'' by Homes England for approved Housing Association grant schemes and are considered for mortgage loans by the relevant lending authorities and are not resourced from the Charity's reserves.

All invoices and architects' certificates relating to capital expenditure incurred in the year at gross value before retention are included in the accounts for the period, provided that the date of issue or valuation is prior to the period end. Related mortgage advances receivable from the lending authorities are also included.

If certain SHG scheme expenditure does not qualify for Social Housing Grant, it is, nevertheless, capitalised and an equivalent amount is transferred from accumulated surplus to a property equity account.

Interest on the mortgage loan financing a development is capitalised up to the relevant date of interim HAG application. Interest on the residual mortgage loan after this date is charged to a separate revenue account. Relevant interim dates for each scheme are determined by the Department of the Environment in in accordance with guidelines set down from time to time.

Housing land and buildings currently comprise 30 units located at Thornley House, Ferens House and the the various units at Sherburn Hospital.

2.11 Fixed Assets: Equipment and Vehicles

Equipment and vehicles are capitalised in the Balance Sheet at cost.

Page 16

Sherburn House Charity Section 9 Notes to the financial statements for the year ended 31 March 2023

(continued)

2.12 Investment Portfolio

The investment portfolio, comprising listed investments and cash deposits, is stated at mid-market value. Profit / loss on the sale of investments is calculated on the basis of sale proceeds less book value at the point of disposal.

2.13 Investment Properties

The Board of Trustees has separately identified those properties that are held for their investment potential rather than for direct use within the Charity.

In accordance with FRS102 17.16, investment properties are revalued as at the 31 March each year and the aggregate surplus or deficit is transferred to an Investment Revaluation Reserve.

No depreciation is provided in respect of investment properties.

2.14 Pension Costs

The Charity operates a money purchase defined contribution pension scheme. Contributions payable to this scheme are charged to the Income and Expenditure Account in the period to which they relate. These contributions are invested separately from the Charity's assets.

2.16 Grants: Relief in Need

The Charity entered into an arrangement with County Durham Community Foundation for them to administer Grants on its behalf to Organisations and to Individuals, running for one year from 1 April 2022. The full cost of this commitment has been included in the results for the year ended March 2023.

Page 17

Sherburn House Charity Section 9 Notes to the financial statements for the year ended 31 March 2023 (continued)

2.16 Trade Debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

2.17 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

2.18 Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

2.19 Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

2.20 Financial instruments

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

2.21 Stocks

Stock is held at the lower of cost and net realisable value.

Page 18

Sherburn House Charity Section 9 Notes to the financial statements for the year ended 31 March 2023 (continued)

2.21 Funds of the Charity

The Charity's funds are designated as either Endowment funds , Restricted funds , or Unrestricted funds , and sub analysed as follows:

Endowment funds
Endowment funds:
General (Funds held to support the charity's objectives)
Extraordinary repair (Renovation costs incurred for Beddell House less transfers from other funds)
Educational foundation (Fund to provide financial assistance to pupils in County Durham for charity 527325)
Revaluation reserves:
Investment properties (Difference between valuation of owned properties used for investments and cost)
Investment portfolio (Brewin Dolphin) (Difference between valuation of shares and securities and cost)
Investment portfolio (UBS) (Difference between valuation of shares and securities and cost)
Restricted funds
Covid support from Council (Grants received from Durham County Council to fund additional costs
incurred in the Residential Care Home due to Covid)
Unrestricted funds
Homes England Grants (Designated) (Received to assist in the renovations of Beddell House, Ferens House & Thornley House)
General (Unrestricted funds held by the charity)
These largely mirror the Reserves of the unincorporated Charity (217652).
Movements in the funds for the period are analysed in note 17.

The Fund values were established by the £34,534,948 Donation from the unincorporated Charity (217652) on the 01.10.21.

The Endowment fund, and Unrestricted funds have been aligned to their respective asset values by an adjustment between Unrestricted funds and Extraordinary repair fund in the period.

Page 19

Sherburn House Charity Section 9

Notes to the financial statements for the year ended 31 March 2023

(continued)

3 Turnover and Operating Surplus / (Deficit) for the Period

March 2023 March 2023 March 2023 March 2022 March 2022 March 2022
Income and expenditure
Housing accommodation
Residential care		 Turnover Cost of Sales
£
£
295,549
(299,482)
2,152,520
(1,876,107)		 Surplus
£
(3,933)
276,413		 Turnover
£
127,991
972,577		 Cost of Sales
£
(160,678)
(884,902)		 Surplus
£
(32,687)
87,675
Sub-total: Housing activities
Non-housing (shown as Investments)		 2,448,069
231,646		 (2,175,589)
(903,558)		 272,480
(671,912)		 1,100,568
98,662		 (1,045,580)
(450,444)		 54,988
(351,782)
Total
Investment income - dividends
Investment income - (loss) on sales
Other income
Interest receivable		 2,679,715
of investments		 (3,079,147) (399,432)
856,682
(158,909)
37,782
38		 1,199,230 (1,496,024) (296,794)
312,389
174,451
-
563
Surplus for the period
Donation from linked charity
Unrealised gain on investment property values
Unrealised (loss) on investment portfolio values (Brewin Dolphin)
Unrealised (loss) on investment portfolio values (UBS)
Refurb costs (Esh VAT credit for Beddell House)		 336,161
-
335,000
(1,222,896)
(476,040)
116,668		 190,610
34,534,948
(26,000)
(462,722)
(149,796)
4 Net movement in funds for the period
(911,106)
Rent losses from housing accommodation lettings due to voids were £39,360 (2022: £31,410)
Turnover
March 2023		 and bad debts nil (2022: nil). 34,087,040
March 2022
Residential charges (Housing activities)
Farm rents (shown as Investments)
Wayleaves and other estate income (shown as Investments)		 £
2,448,069
140,749
90,898		 £
1,100,568
70,337
28,325
2,679,716 1,199,230
5 Cost of Sales March 2023 March 2023
Housing Residential Non Housing Residential Non
Accom. Care Housing Total Accom. Care Housing Total
£ £ £ £ £ £ £ £
Wages 27,935 1,239,300 312,288 1,579,523 13,220 561,402 161,140 735,762
Agency staff 70,573 70,573 48,887 48,887
Maintenance 34,513 34,513 23,880 23,880
Property management 69,193 69,193 82,631 82,631
Property costs 121,658 121,658 64,577 64,577
Repairs and renewals 71,703 71,703 46,392 46,392
Cleaning 28,525 28,525 19,498 19,498
Fixtures and fittings 11,259 11,259 2,112 2,112
Postage, printing & stationery 1,675 3,848 5,523 1,023 2,790 3,813
CQC registration fee 12,090 12,090 4,396 4,396
Sundries 1,124 23,923 8,440 33,487 1,208 12,255 4,606 18,069
Safety 21,188 21,188 3,390 3,390
Staff training & subsistence 1,560 11,782 1,855 15,197 1,332 47 1,379
Professional fees 228,448 228,448 162,480 162,480
Legal fees 21,603 21,603 14,099 14,099
Motor expenses 2,000 2,000 1,000 1,000
Computer expenditure - 18,520 18,520 - 8,606 8,606
Residents' food 91,182 91,182 28,336 28,336
Light, heat & water 108,778 42,440 151,218 54,884 23,182 78,066
Telephone 300 14,145 14,445 930 8,480 9,410
Council tax 3,669 3,669 867 867
Payments to livings 325 325 325 325
Insurances 29,608 29,608 12,420 12,420
Audit and accountancy fees 13,440 13,440 8,640 8,640
Management re-charges 45,048 86,916 (131,964) - 32,706 52,482 (85,188) -
Depreciation 94,158 27,123 23,774 145,055 45,450 9,416 12,949 67,815
Interest Paid 213,453 213,453 45,357 45,357
Financial and other costs 7,999 7,999 3,517 3,517
Relief in need 63,750 63,750 300 300
Total 299,482 1,876,107 903,558 3,079,147 160,678 884,902 450,444 1,496,024

Page 20

Sherburn House Charity Section 9

Notes to the financial statements for the year ended 31 March 2023

(continued)

Direct Costs Of Running Investments
March 2023
Total
£
Estate Running Costs
220,231
Investment Portfolio Charges
99,846
320,077
Expenditure on Charitable Activities
Direct
Support
Total
£
£
£
Housing
254,434
45,048
299,482
Residential Care
1,789,191
86,916
1,876,107
Grant Making
64,075
64,075
Governance
519,406
519,406
2,107,700
651,370
2,759,070
Total charitable activities expenditure
3,079,147
Analysis of Support and Governance
Finance
Staff
Other
Total
Costs
Costs
Costs
Costs
£
£
£
£
Housing
45,048
45,048
Residential Care
86,916
86,916
Governance
213,453
90,841
215,112
519,406
213,453
90,841
347,076
651,370		 March 2022
Total
£
170,235
62,303
232,538
Direct
Support
Total
£
£
£
127,972
32,706
160,678
832,420
52,482
884,902
625
625
217,281
217,281
961,017
302,469
1,263,486
1,496,024
Finance
Staff
Other
Total
Costs
Costs
Costs
Costs
£
£
£
£
32,706
32,706
52,482
52,482
45,357
56,492
115,432
217,281
45,357
56,492
200,620
302,469

Governance Costs

Audit
Legal
Staff Costs
Overhead allocation		 Total
£
13,440
21,603
90,841
393,522
519,406		 Total
£
8,640
14,099
56,492
138,050
217,281

Page 21

Sherburn House Charity Section 9 Notes to the financial statements for the year ended 31 March 2023

(continued)

6
Income and Expenditure Account: Housing Accommodation
Income
Residents' fees
Accommodation charges
Expenditure
Wages
Property costs
General costs
Financial & other costs
Management charge
Depreciation
Deficit for the year
7
Employee Information
The average weekly number of persons employed
(excluding the Trustees) during the period was
Salaries and wages
Social security costs
Pension costs
Other benefits
The number of employees who earned more than £60,000 during the period
to 31 March 2023
£100,001 to £110,000
£60,001 to £70,000
Key Management Personnel
Total compensation paid to Key Management Personnel during the period:
Gross Pay
Employers Pension Costs		 March 2023
March 2022
£
£
138,400
56,718
157,149
71,274
295,549
127,992
27,935
13,220
121,658
64,577
2,684
1,208
7,999
3,517
45,048
32,706
205,324
115,228
94,158
45,450
299,482
160,678
(3,933)
(32,686)
March 2023
March 2022
No.
No.
45
42
£
£
1,357,532
632,490
116,870
54,531
89,557
40,328
15,564
8,413
1,579,523
735,762
March 2023
March 2022
No.
No.
1
1
2
March 2023
March 2022
£
£
243,594
123,738
19,487
9,821
263,081
133,559

Page 22

Sherburn House Charity Section 9 Notes to the financial statements for the year ended 31 March 2023 (continued)

Payments to Trustees and Officers

No fees, remuneration or expenses were paid to anyone who was on the Board of Trustees apart from travelling expenses which are paid to certain Trustees for attendance at Trustees meetings, this amounted to £nil in the period.

Pension Costs

The Charity operates a money purchase defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £89,557.

Pension costs outstanding at 31 March
8
Investment and Other Income
Royalties
Rent from farm rents, investment properties and wayleaves
Dividends and interest received
Other Income
9
Surplus on Ordinary Activities
The surplus on ordinary activities is stated after charging / (crediting):
Depreciation - tangible fixed assets
Auditor's remuneration - in their capacity as auditors
Relief in need - residents
Donation from linked charity		 March 2023
March 2022
£
£
13,989
10,484
March 2023
March 2022
£
£
40,000
20,000
261,646
98,661
786,720
292,397
37,782
558
1,126,148
411,615
March 2023
March 2022
£
£
145,055
67,814
10,000
8,400
-
300
-
(34,534,948)

10 Taxation

Sherburn House Charity is a registered charity and is, therefore, exempt from liability to taxation on its income and capital gains.

Page 23

Sherburn House Charity Section 9 Notes to the financial statements for the year ended 31 March 2023

(continued)

11 Tangible Fixed Assets

SHG Assisted
Buildings		 Land Buildings
Equipment
Vehicles
Total
£ £ £
£
£
£
Cost or valuation
At 1 April 2022 654,570 363,048 4,086,970
233,675
61,862
5,400,125
Additions - - 54,038
36,457
-
90,495
Disposals - - -
-
-
-
At 31 March 2023 654,570 363,048 4,141,008
270,132
61,862
5,490,620
Depreciation
At 1 April 2022 654,570 48,155 908,471
223,205
57,220
1,891,621
Charge for period - 5,179 123,436
14,585
1,855
145,055
Disposals - - -
-
-
-
At 31 March 2023 654,570 53,334 1,031,907
237,790
59,075
2,036,676
Net book value
At 31 March 2023 - 309,714 3,109,101
32,342
2,787
3,453,944
At 1 April 2022 - 314,893 3,178,499
10,470
4,642
3,508,504
Tangible Fixed Assets: Net Book Value analysed by activity Housing
Accom.
Residential
Care
Non
Housing
Total
Land £
£
£
£
75,000
50,000
184,714
309,714
Buildings 2,485,429
345,670
278,002
3,109,101
Equipment 1
28,951
3,390
32,342
Vehicles -
-
2,787
2,787
Total 2,560,430
424,621
468,893
3,453,944

The net book value of:

Land contains £300,000 (2022: £300,000) which represents the value of land that is not depreciated; and Buildings contains £2,485,429 (2022: £2,570,700) attributable to housing activities.

There is no record of the historical cost of the land and buildings held at deemed cost due to the length of ownership.

The freehold land and buildings were valued by Taylors, Chartered Surveyors, in October 1996 on an existing use basis.

The Charity has adopted the transitional rules of Financial Reporting Standard Number 15 and hence, the valuation will not be updated in future years having adopted the value as deemed historic cost.

Capital Commitments

The Board of Trustees had authorised a capital expenditure budget of £167,300 for the year 2023/24, of which £167,300 is un committed as at 06 September 2023.

12
Investment Properties
Valuation as at 1 April
Donated from Linked Charity
Additions
Disposals
Revaluation
Valuation as at 31 March		 March 2023 March 2022
£
£
7,965,000
-
-
7,991,000
-
-
-
335,000
(26,000)
8,300,000
7,965,000

Page 24

Sherburn House Charity Section 9 Notes to the financial statements for the year ended 31 March 2023

(continued)

13
Investment Portfolio: Brewin Dolphin
General capital fund
General accumulated income fund
Educational foundation fund
(i)
Total investment portfolio
Value of investments
Listed
Cash / Unlisted
Total
Historical cost of investments
Revaluation
Total
Investment Portfolio / Call Loan: UBS
(ii)
Investment portfolio
(iii)
Call Loan
Net Facility
Value of investments
Listed
Cash / Unlisted
Total
Historical cost of investments
Revaluation
Total
Total Investments at Market Value		 Market Value
Market Value
Profit /
as at
as at
(Loss)
01 April 22
Additions
Disposals
Transfers
Revaluation
31 March 23
on sale
£
£
£
£
£
£
£
15,211,565
1,220,625
(1,351,882)
-
(1,097,239)
13,983,068
(130,182)
1,629,045
97,983
(101,001)
-
(122,619)
1,503,407
(7,264)
56,590
8,248
(8,280)
-
(3,036)
53,522
(129)
16,897,200
1,326,856
(1,461,164)
-
(1,222,895)
15,539,998
(137,575)
16,517,942
14,807,938
379,258
732,059
16,897,200
15,539,998
12,166,073
12,591,195
4,731,127
2,948,803
16,897,200
15,539,998
Market Value
Market Value
Profit /
as at
as at
(Loss)
01 April 22
Additions
Disposals
Transfers
Revaluation
31 March 23
on sale
£
£
£
£
£
£
£
12,229,339
3,118,172
(2,762,972)
(424,978)
(476,040)
11,683,521
(21,334)
(6,810,980)
(213,454)
225,000
424,978
-
(6,374,456)
5,418,359
2,904,718
(2,537,972)
-
(476,040)
5,309,066
(21,334)
11,001,857
11,032,203
1,227,482
651,319
12,229,339
11,683,521
11,519,091
11,535,902
710,248
147,619
12,229,339
11,683,521
27,223,519

No investment is greater than 5% of the total portfolio value

14 Stocks & Debtors

14
Stocks & Debtors
(i)
Stock(spares held for maintenance)
Trade Debtors
Prepayments and accrued income
Other Debtors
(ii)
Debtors
15
Creditors: amounts falling due within one year
UBS Call Loan
Trade creditors
Other creditors
Rents in advance
Accruals and deferred income
Taxation and social security
Wages creditor
16
Social Housing Grant Assisted Scheme - Housing Buildings
Grant as at 1 April 2022
As at 31 March 2023
SHG is now released to income on receipt as required under the Charities SORP. This
note is just a memo to show amounts received to date.
Page 25		 March 2023
March 2022
£
£
6,199
-
47,350
64,538
54,256
48,006
80,226
81,104
181,832
193,648
March 2023
March 2022
£
£
6,374,455
6,810,980
44,624
87,458
764
14,359
212,737
139,471
178,965
160,788
29,404
26,807
14,103
10,584
6,855,052
7,250,447
March 2023
Housing
Buildings
Homes
England
Total
£
£
£
654,570
728,000
1,382,570
654,570
728,000
1,382,570

Sherburn House Charity Section 9 Notes to the financial statements for the year ended 31 March 2023

(continued)

17 Reconciliation of movements in Funds

----- Start of picture text -----
Balance Surplus / ESH Profit / (Loss) Release of Extraordinary Balance
as at (Deficit) VAT Credit on sale of Revaluation Royalties Revaluation / repair as at
01 Apr 22 for year Beddell House investments Reserve Received Addition endowment fund 31 Mar 23
£ £ £ £ £ £ £ £
(a) Endowment funds:
General 24,657,611 (158,909) 646,018 40,000 25,184,720
Extraordinary repair (incl refurb) (5,007,700) 116,668 352,000 (4,539,032)
Educational foundation 40,300 - 40,300
Total Endowment funds 19,690,211 - 116,668 (158,909) 646,018 40,000 - 352,000 20,685,988
(b) Revaluation reserves:
Investment properties 7,929,477 335,000 8,264,477
Investment portfolio (Brewin Dolphin) 4,731,127 (559,430) (1,222,895) 2,948,802
Investment portfolio (UBS) 710,248 (86,588) (476,040) 147,620
Total revaluation reserves 13,370,852 - - - (646,018) - (1,363,935) - 11,360,899
(c) Restricted funds:
Covid support - - -
Total Homes & Communities Agency Grant - - - - - - - - -
(d) Unrestricted funds:
General (356,593) 63,681 158,909 - (40,000) (352,000) (526,003)
Housing accommodation - (3,933) (3,933)
Residential care - 276,412 276,412
Housing activities - 272,479 - - - - - - 272,479
Homes England Grants (Designated) 1,382,570 - 1,382,570
Total Unrestricted funds 1,025,977 336,160 - 158,909 - (40,000) - (352,000) 1,129,047
Balance at 31 March 2023 34,087,040 336,160 116,668 - - - (1,363,935) - 33,175,934
(a) Endowment funds
Extraordinary Educational
General repairs foundation Total
£ £ £ £
Balance at 1 April 2022 24,657,611 (5,007,700) 40,300 19,690,211
Transfers from unrestricted funds:
Royalties received 40,000 40,000
Refurb costs (Esh VAT credit) 116,668 116,668
Profit on sale of investments (158,909) - (158,909)
Release from revaluation reserve 646,018 - 646,018
Extraordinary repairs funding 352,000 352,000
Balance at 31 March 2023 25,184,720 (4,539,032) 40,300 20,685,988
(b) Investment revaluation reserve
Properties Portfolio Total
£ £ £
Balance at 1 April 2022 7,929,477 5,441,375 13,370,852
Unrealised (deficit) / surplus 335,000 (1,698,935) (1,363,935)
Realisation of revaluation reserve - (646,018) (646,018)
Balance at 31 March 2023 8,264,477 3,096,422 11,360,899
(c) Restricted reserves:
Developers Insurance
contribution storm damage Total
£ £
Balance at 1 April 2022 - -
Income 102,000 20,282 122,282
Expenditure (102,000) (20,282) (122,282)
Balance at 31 March 2023 - - -
(d) Unrestricted funds
Unrestricted Housing
funds activities Total
£ £ £
Balance at 1 April 2022 1,025,977 - 1,025,977
Net surplus for the year 63,681 272,479 336,160
Intra revenue reserve transfer 272,479 (272,479) -
Transfers to capital funds:
Royalties received (40,000) (40,000)
Profit on sale of investments 158,909 158,909
Extraordinary repairs funding (352,000) (352,000)
Balance at 31 March 2023 1,129,047 - 1,129,047
----- End of picture text -----

A description of the nature of each fund is contained in note 2.21

Page 26

Sherburn House Charity Section 9 Notes to the financial statements for the year ended 31 March 2023 (continued)

19 Related Parties

There were no related party transactions in the period.

20 Control

The Charity is under the control of its Board of Trustees.

21 Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net income/(expenditure) for the reporting period (as per the
statement of financial activities)
Adjustments for:
Depreciation
Losses / (Gains) on investments (sale of shares)
(Losses) / Gains on investments (property revaluation)
Losses on investments (Brewin dolphin)
Losses on investments (UBS)
Dividends, interest and rents from investments
(Increase) in stocks
(Increase) / Decrease in debtors
(Increase) in debtors (Donation)
Increase / in creditors
Increase in creditors (Donation)
Net cash provided by (used in) operating activities		 March 2023 March 2022
£
£
(911,106)
34,087,040
145,055
67,814
383,909
(174,451)
(335,000)
26,000
1,222,895
462,722
476,040
149,797
(1,357,796)
(510,277)
(6,199)
-
(15,550)
27,407
-
(193,689)
41,129
3,373
-
436,095
(356,624)
34,381,831

22 Net debt

Net debt
Cash and cash equivalents At 1 Apr 2022
Cash flows March 2023
Cash 571,163
294,329
865,492
Borrowings 571,163
294,329
865,492
Short term borrowings (UBS Call Loan) (6,810,980)
436,525
(6,374,455)
Net debt (6,810,980)
436,525
(6,374,455)
(6,239,817)
730,854
(5,508,963)

Short term borrowings shown above are included for statutory disclosure purposes, however the borrowing is linked to the fixed asset investments and the "Net Debt" presented above would be more than offset by the value of the UBS investments (note 13)

Page 27

Sherburn House Charity Section 9

Notes to the financial statements for the year ended 31 March 2023

(continued)

22 Analysis of movements in funds

Balance at 01 April 2022
Surplus for the year
Transfers to Endowment Funds in respect of Royalties received
Refurb costs (Esh VAT credit for Beddell House)
Transfers to Endowment Funds in respect of Loss on sale of investments
Transfer from revaluation reserve Profit on sale of Shares prior year profit
Transfers to Endowment Funds in respect of Extraordinary repairs funding
Unrealised gain on investment property values
Unrealised (loss) on investment portfolio values (Brewin Dolphin)
Unrealised (loss) on investment portfolio values (UBS)
Balance at 31 Mar 2023		 Investment
Unrestricted
Endowment Revaluation Restricted
Notes
Funds
Funds
Reserves
Reserves
Total
1,025,977
19,690,211
13,370,852
- 34,087,040
452,829
452,829
17
(40,000)
40,000
-
17
(116,668)
116,668
-
17
158,909
(158,909)
-
17
-
646,018
(646,018)
-
17
(352,000)
352,000
-
17
335,000
335,000
17
(1,222,895)
(1,222,895)
17
(476,040)
(476,040)
1,129,047
20,685,988
11,360,899
- 33,175,934

Page 28