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2023-03-31-accounts

BAXENDALE CARE HOME

REPORT OF THE TRUSTEES

AND

FINANCIAL STATEMENTS For the year ended 31 March 2023

Registered Charity No. 1186304

BAXENDALE CARE HOME Page 1

REPORT OF THE TRUSTEES For the year ended 31 March 2023

The Trustees have pleasure in presenting their report and the audited financial statements for the year ended 31 March 2023.

REFERENCE AND ADMINISTRATIVE INFORMATION

The Trustees/Members who served during the period and the committees on which they serve are:

Mrs J E Cronin (Chairman of House Committee and member of Finance & General Purposes Committee) Mr C Liversidge (Chair of Finance & General Purposes Committee) Mr A Henderson (Member Finance & General Purposes Committee) Mr B R Maunder-Taylor (Member of Finance & General Purposes Committee) Mr B Charles (Chair of trustees and member of Finance & General Purposes Committee to 22.02.23) Mrs C Bannister (Member of House Committee) Mr A Jacobson (to 31.10.22) Mr P Smith (Member Finance & General Purposes Committee) Mr R Ellis Mrs M Testar Mr P Burd (Member of House Committee) Ms F Halstead (Chair from 22.02.23)

The address of the Home is Baxendale, London N20 0EH, and all correspondence should be sent to this address.

The Treasurer and Secretary to the Trustees (not a Trustee himself) is Mr B M Hosier MBE, Chartered Accountant, to whom all enquiries should be made.

AGENTS AND ADVISORS

Auditors NA Associates LLP , Chartered Certified Accountants, Woodgate Studios 2-8 Games Road, Cockfosters, Barnet, Herts EN4 9HN

Bankers Barclays Bank PLC Investment Manager CCLA, Senator House, 85 Queen Victoria Street, London EC4V 4ET Solicitors Anthony Collins, 134 Edmund Street, Birmingham B3 2ES

STRUCTURE, GOVERNANCE AND MANAGEMENT

The charity was originally founded in 1861 and the present site of the Home became the property of the Charity by a Deed of Gift dated 31 October 1892. The Charity was governed by a Scheme under the Seal of the Charity Commissioners dated 5 December 1960 as an unincorporated charity, regulated by the Charity Commission of England and Wales. In 2019, the charity applied to the Charity Commission to register as a CIO, operating under the same name. The Charity Commission approved the CIO’s constitution with its revised Objects and the CIO was registered on 12 November 2019 (Charity Registered Number 1186304). In March 2021 the Trustees agreed to transfer the assets and liabilities of the former unincorporated charity to the new CIO on 1 April 2021. The CIO took on responsibility for all the assets and liabilities of the unincorporated charity on 1 April 2021. The former unincorporated charity has now been dissolved.

The Home is registered by the Care Quality Commission certificate number 1-328067446 as a Residential Care Home (CRH). It can accommodate men and women but under an Order from the Charity Commission with a preference to women.

The Home can accommodate 45 permanent residents and the aim of the Trustees is to provide comfortable and as far as possible, independent, residential care for all residents. Each resident has their own room and is able to bring their own furniture and possessions into that room. There is a communal dining room and a large lounge with several smaller areas for quieter activities or for family gatherings. All rooms in the main home are now ensuite. There is a programme of activities for residents to join if they so wish.

There is no geographical limitation for the residents who can be accepted, but the Home is not registered for nursing care and, therefore, an assessment has to be made to ascertain, as far as possible, that the Home is suitable for the person concerned. Residents are accepted who are both financially independent and those who either now or in the future may need to rely on some financial assistance from a local authority. In these cases the prior approval of the local authority has to be obtained before the residency is taken up. In addition to full time residency the Home does cater for respite care.

BAXENDALE CARE HOME Page 2

REPORT OF THE TRUSTEES (Continued) For the year ended 31 March 2023

ORGANISATION STRUCTURE

The Constitution directs that there should be at least 6 Trustees/Members responsible for the administration of the Charity and of its land, buildings, investments, cash and other assets. There is no upper limit. The quorum for a valid meeting is 3 or one third of the trustees whichever is the greater.

Trustees serve for a period of five years and may then be re-elected by the remaining Trustees. Any appointment is approved by a majority vote of the continuing Trustees. New Trustees have induction training with the secretary.

There are, in addition, two principal sub committees namely:-

  1. Finance and General Purposes Committee which consists of six members all of whom are Trustees. The Committee advises the Trustees on financial matters, the maintenance and improvement of buildings, fees to residents and major staffing matters. The Committee usually meets four times a year.

  2. A House Committee which must have at least one Trustees as a member and is under the Chairmanship of a Trustee. It usually meets twelve times a year and gives oversight of the staffing and day to day administration of the Home, and the health and well being of residents whilst giving general support to the manager.

The day to day running of the Home is under the supervision of Ms Jacqui Gordon the manager.

Risk Management

The Trustees have considered the major risks which face the Charity and consider these to be:-

  1. A failure to attract new residents

  2. Difficulty in recruiting suitable staff

  3. The obsolescence of buildings and plant

  4. Complying with ever increasing regulations and legislation

The Trustees endeavour to mitigate these risks as follows:-

  1. To maintain a high level of client satisfaction which produces referrals and favourable reports from monitoring organisations. The profile of the home is enhanced by regular advertising, a good website and social media.

  2. The Trustees have a policy of paying the London Living Wage (rather than just the minimum wage) as a minimum to all staff and to retain the differential for more senior staff. A very favourable pension scheme has been introduced for all staff and regular appraisals and training give opportunities for progression in the organisation.

  3. A Designated Fund has been set up to deal with major repairs to both buildings and plant. The fund has grown substantially over the years so is thought to be adequate for all likely repairs. Capital improvements would have to come from other funds but the home is well endowed and should be able to meet these challenges.

  4. The Trustees have agreed to keep a strong management team to give more support to the manager in anticipation of keeping up to date with changes on a timely basis. Policies and Procedures are reviewed on a regular basis.

The task of monitoring the Charity’s financial control systems is delegated to the Finance and General Purposes Committee. We continue to keep under review the adequacy of the controls which we consider to be appropriate for the size and nature of this charity.

Statement of Trustees’ Responsibilities for the Annual Accounts

The Trustees 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).

The Law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, and the provisions of the trust deed. They are also responsible for safeguarding the assets of

the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BAXENDALE CARE HOME Page 3

REPORT OF THE TRUSTEES (Continued) For the year ended 31 March 2023

Financial Review

The accounts for the year are set out on pages 7 to 16. There was a net reduction in Unrestricted Funds amounting to £333,423 leaving balances on our Unrestricted Funds at the period end of £2,090,669. This was after a transfer of £285,067 from our Unapplied Total Return Fund. Of the total, £731,994 is held in a Designated Fund being £634,734 in a Repairs Reserve to contribute towards future repairs and £97,260 in the Mary Westby Fund. The Permanent Endowment Fund has fallen in value by £956,139 due to unrealised investment losses mainly on a freehold investment property where values had to be adjusted to reflect substantial increases in interest rates. Overall the funds now total £12,014,712 most of which is held in the Permanent Endowment Fund.

Investment Powers, policy and performance

There are no specific investment powers in the Constitution and, therefore, the provisions of the Trustee Act 2000 apply.

The Trustees continue to hold longer term funds in CCLA for them to manage in their Charities Ethical Investment Fund. The Trustees’ investment policy is to aim for safe long term growth connected with planned spending needs from time to time and are satisfied with the performance in this investment. During the year £850,000 was withdrawn to help finance the improvements. Funds have performed ahead of benchmark.

Reserves

The Trustees have reviewed the need for reserves in line with the guidance issued by the Charity Commission. In past years it was considered desirable to invest surplus funds in property and quoted investments in order to secure a regular income. Part of these investments came from the balance of Permanent Endowment and the balance from Unrestricted Funds and are treated as Fixed Assets on the Balance Sheet. Values, particularly of the investment properties, have increased substantially over the years but are unrealised gains. Improvements have in the main been provided from Unrestricted Funds.

The current balance on non designated Unrestricted Funds is £1,358,675 which has fallen during the year due to the reduction in rooms available during the refurbishment. The first two stages of these works was completed soon after the year end and the next stage is due to start in September 2023.

Our principal objective is to provide a home for the aged who are in need of assistance. The Trustees believe many elderly people are in need of more than financial assistance but recognise that financial need does play a part. They meet this need by keeping fees for all below market rates and by working with the local authority to accept residents at lower fees where resources are such that the local authority pay part of the fee. With the severe pressures on local authority finances there is increasing pressure not to refer clients to residential care even those who need such care. The Trustees consider that some direct funding may be needed in the future and need to keep a strong financial position in order that they can continue to meet this need.

On this basis it is still considered the current level of reserves is appropriate, and will continue to fall whilst the improvements and repairs are in progress, but this will continue to be kept under review when the annual budget is prepared.

Achievement and performance

It has been a difficult year with occupancy levels continuing to fall during the year.

We are aware of the pressure on local authority funding and have fewer residents being part supported by the boroughs. This has contributed to an increase in vacancies but with our investment income we are well placed to withstand short term deficits for a period. We have though resolved to upgrade rooms and the entrance and common parts but this has required rooms to be vacant. Works on the new bedrooms were completed after the year end and work on the entrance and some major repairs is due to start in September 2023.

The financial results were also hit by market conditions with substantial losses on investments including one property. In the main these are book losses and we are looking for some improvement in the coming year. There is still uncertainty regarding the future of the care sector and funding for those who cannot afford full fees. We look forward to some resolution of these difficulties.

Public Benefit

The Trustees are aware of the need to demonstrate public benefit and in planning our activities during the year we have kept in mind at our meetings the Charity Commission guidance and in particular we have given careful consideration to the guidance given to fee charging charities.

Residency in the home is available to all elderly people in need no matter what background, faith, gender or personal circumstances although our Charitable Trust does require us to give preference to women. There is a trial period of residency to make sure the needs of the applicant can be met followed by a welcome meeting.

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BAXENDALE CARE HOME

REPORT OF THE TRUSTEES (Continued) For the year ended 31 March 2023

Fees are usually set to balance annual outgoings, including regular maintenance, but after crediting all charitable income and on a 95% occupancy rate. This policy has been revised during the current emergency and whilst the building alterations are in progress. No allowance is made for rent as the Trust owns the freehold of the building within its Permanent Endowment Fund. We do not seek to raise funds externally and legacy income is used to offset revenue costs unless there was a restriction placed on the gift. In this way the Trustees aim to protect the Permanent Endowment Fund for future generations. Allowance has to be made for a reduced rate payable by local authorities and the resulting rate is the fee charged to residents who are financially independent.

During the accounting year up to 10 rooms were out of commission, either being converted or used for other activities. Of the rooms remaining up to 15 are set aside for use by local authorities who will give financial assistance to those who have less than a minimum of capital, currently £23,250. The authority has to be convinced the applicant needs residential care and will then approach us and we will negotiate a fee with them which is on average £220 per week below our rate for those who are financially independent. Admissions are assessed by reference to the Charity’s aim on a case by case basis and on individual needs. Where someone qualifies for local authority assistance, the Trustees admit that person on the basis of their need for care. Where a third party contribution is possible this will be addressed during the trial period but where this is not possible the Trustees will accept the individual based on local authority funding only. Currently the Boroughs have only taken up 7 of the rooms available.

With the Mary Westby Fund it is anticipated that we should be able to accommodate all who apply, and are suitable, even if they cannot obtain full funding from a local authority.

No resident has ever been asked to leave the home on the grounds that they cannot pay the fees.

Arrangements for setting pay

All staff pay is reviewed on at least an annual basis. The Trustees have decided the minimum hourly rate will correspond to the last announced London Living Wage hourly rate and that the differential with more senior staff will be retained. Exceptional performance is reviewed on an ad hoc basis.

Aims and Plans for the future

At present we are looking at how best we can use the resources available to us. As mentioned above major improvements and repairs, for which we have planning consent, are under consideration and we hope to include work on our West Wing which accommodates those living with dementia.

Financial statements

The accounts comply with current statutory requirements, the requirements of the Charity’s governing document and the requirements of the Statement of Recommended Practice “Accounting and Reporting by Charities” (FRS102).

ON BEHALF OF THE TRUSTEES

Ms. Fiona Halstead Chairperson Dated:

Independent Auditor’s Report to the Trustees of Baxendale Care Home Page 5

Opinion

We have audited the financial statements of Baxendale Care Home (the ‘Charity’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements numbered 1-16, 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 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 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.

Other information

The other information comprises the information included in the trustees' annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and 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 in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

 we have not received all the information and explanations we require for our audit.

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Responsibilities of Trustees

As explained more fully in the Trustees’ Responsibilities statement, the Trustees are responsible for the preparation of financial statements which 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 Trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s 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 regulations made under section 154 of that Act.

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.

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:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Charity’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 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 Charity and the Charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

……………………………………………….

NA Associates LLP

Chartered Certified Accountants Statutory Auditor

Woodgate Studios 2-8 Games Road Cockfosters Hertfordshire EN4 9HN

Dated:…………………….

NA Associates LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

BAXENDALE CARE HOME Page 7

STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 March 2023




Notes
Income and endowments from:
Income from Charitable activities
Donations and legacies
Charitable activities
Income from Investments
Investment and other income
Other income
Total Income and endowments
Expenditure on:
1
Charitable activities
Other
Total expenditure
Net income / (expenditure) before
Gains / (losses) on investments
Net gains / (losses) on investments
Net income / (expenditure)
Gains / (losses) on
Fixed assets
Transfers between funds
2
Net movement in funds
Reconciliation of funds:
Total funds brought forward
at 1 April 2022
Total funds carried forward
at 31 March 2023
Unrestricted Restricted Permanent
Income
Income Endowment
Funds Fund Fund
£
£
£
58,418
-
-
1,355,725
-
-
-
-
285,067
10,732
-
-
1,424,875
-
285,067
1,974,470
-
-
41,447
-
-
2,015,917
-
-
(591,042)
-
285,067
(27,448
)
-
(956,139
)
(618,490)
-
(671,072)
-
-
-
285,067
-
(285,067
)
(333,423)
-
(956,139)
2,424,092
-
10,880,182
2,090,669
-
9,924,043
Total
2023
£
58,418
1,355,725
285,067
10,732
1,709,942
1,974,470
41,447

2,015,917
(305,975)
(983,587
)
(1,289,562)
-
-

(1,289,562)
13,304,274

12,014,712
Total
2023
£
58,418
1,355,725
285,067
10,732
1,709,942
1,974,470
41,447
Total
2022
£
3,303
1,454,723
263,520
101,881
1,823,427
1,984,356
60,503
2,044,859
(221,432)
646,243
424,811
-
-
424,811
12,879,463
13,304,274

All amounts relate to continuing activities.

The statement of financial activities includes all gains and losses recognised in the year. The 2022 comparative analysis is shown in note 16.

The notes on pages 10 to 16 form part of these financial statements

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BAXENDALE Page 8

BALANCE SHEET 31 March 2023


Notes
FIXED ASSETS
Tangible assets
4
Investments
5
CURRENT ASSETS
Stock
3,608
Debtors and prepayments
7
Investments
6
Cash at bank and in hand

CREDITORS: amounts falling due within one year
8
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: amounts falling due after one year
9
TOTAL ASSETS LESS LIABILITIES
CAPITAL FUND
Permanent Endowment Fund
10/16
INCOME FUND
Restricted Fund
12
Unrestricted Fund
Designated Funds
11
TOTAL FUNDS		 2023
£
4,372,903
6,080,520
10,453,423

2,731
48,760
124,864
1,510,891

1,688,123
126,834
1,561,289
12,014,712

-

12,014,712

9,924,043

-
1,358,675
731,994

12,014,712
 2022
£
3,364,599
7,886,660
11,251,259
324,228
151,312
1,852,420
2,330,691
277,676
2,053,015
13,304,274
-
13,304,274
10,880,182
-
1,714,650
709,442
13,304,274

Approved by the Board of Trustees on and signed on their behalf by

.................................................................................................. Trustee Ms Fiona Halstead - Chair of Trustees

The notes on pages 10 to 16 form part of these accounts.

BAXENDALE CARE HOME Page 9
STATEMENT OF CASH FLOWS
For the year ended 31 March 2023
2023 2022
£ £
Cash flow from operating activities (453,702
)		 615,209
Cash flow from investing activities
Payments to acquire tangible fixed assets (1,021,896) (774,119)
Payments to acquire investments (1,000) (1,000)
Investments realised (acc. Divis paid) - -
Investment income received 285,067 263,520
Proceeds from liquidation of investment 850,000 -
Net cash flow from investing activities 112,171 (51,599
)
Net cash flow from financing activities (341,531
)		 103,610
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 April 2022 1,852,420 1,748,810
Cash and cash equivalents at 31 March 2023 1,510,891
 1,852,420
(341,529
)		 103,610
Cash and cash equivalents consist of:
Cash at bank and in hand 1,510,891) 1,852,420
Long term loan - -
1,510,891 1,852,420
Reconciliation of net income / (expenditure) to net cash flow from operating activities
Net income / (expenditure) for year (1,289,562) 424,811
Investment income received (285,067) (263,520)
Depreciation of fixed assets 13,592 14,983
(Gains) / losses on investments 983,587 (646,243)
(Increase) / decrease in stock
 (878)
(Increase) / decrease in debtors 275,468 (982,879)
(Decrease) / increase in creditors (150,842) 102,148
Net cash flow from operating activities (453,702)
 615,209

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BAXENDALE Page 10

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

ACCOUNTING POLICIES

As set out in the Charities SORP, conversion of the charity from an unincorporated trust to a CIO was accounted for as a merger in the period ended 31 March 2022. The impact of this is that the assets, liabilities and funds are presented as though they had always been part of the CIO.

The principal accounting policies adopted in preparing the financial statements are set out below:-

The Charity constitutes a public benefit entity as defined by FRS 102. 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) issued in October 2019, The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), The Charities Act 2011, and UK Generally Accepted Practice.

The financial statements are prepared under the historical cost convention, modified by the revaluation of investment properties and investments. The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.

The significant areas of judgement and key assumptions affecting the financial statements include the valuation of the investment properties, see note 5. With respect to future periods, the significant area of uncertainty remains the performance of the investments of the Charity. Investment policy considerations are detailed in the Trustees Report.

GOING CONCERN

The financial statements have been prepared on a going concern basis. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the Charity to be able to continue as a going concern.

INCOME

Donations and legacies are accounted for as their amount and receipt are probable. Investment Income comprises mainly dividends, rents and interest on funds invested which are credited to Permanent Endowment in accordance with the Application of the Power of Total Return. Charitable Activities comprises fees charged to residents and Local Authorities for residents on an accruals basis. Income received in advance is included in deferred income in creditors

EXPENDITURE

Expenditure on Charitable Activities comprise those expenses directly related to the principal activity of running a residential home for the elderly. All expenditure is accounted for on an accruals basis and is fully analysed in the notes.

Other expenses represent the costs of the Secretary/Treasurer in dealing with matters relating to governance including providing information to the Trustees, internal audit, legal and external audit fees.

PENSION CONTRIBUTIONS

During the year contributions continued to a defined contribution workplace pension scheme for all employees.

TANGIBLE FIXED ASSETS

The Trustees capitalise all fixed assets that cost more than £1,000 and have a useful life of more than 5 years. All tangible fixed asset categories are stated at cost.

DEPRECIATION

Depreciation is calculated so as to write off the cost or estimated valuation of an asset, less its estimated residual value, over the useful economic life of that asset as follows.

Equipment - 10% straight line basis Furniture, fixtures and fittings - 10% straight line basis Conservatory - 10% straight line basis

No depreciation has been calculated on the freehold property used as a functional asset as it is the Trustees opinion that the residual disposal value is at least equal to the book value and that any depreciation will be immaterial.

STOCK

Stock has been valued at the lower of cost and net realisable value.

INVESTMENTS

Investments in both current and fixed assets are carried forward at fair value and are included at mid-market value

at the balance sheet date.

BAXENDALE Page 11

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NOTES TO THE FINANCIAL STATEMENTS (Continued) For the year ended 31 March 2023

Any changes in value during the year, whether realised or unrealised are reported as other recognised gains and losses in the Statement of Financial Activities. Income is accounted for on a receipts basis for quoted investments and an accrual basis for rents and interest.

INVESTMENT PROPERTIES

Investment properties for which fair value can be measured reliably without undue cost and effort are measured at fair value at each reporting date with changes in fair value recognised in net gains/losses in the SOFA.

DEBTORS AND CREDITORS RECEIVABLE/PAYABLE WITHIN ONE YEAR

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

LOANS AND BORROWINGS

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a financial transaction it is measured at present value.

FUND ACCOUNTING

The Charity has the following funds for which it is responsible and are described more fully on pages 14-15. Restricted – comprises the Comforts Fund where funds are raised for gifts and extra activities for residents. Unrestricted – funds which are expendable at the discretion of the Trustees in furtherance of the objectives. Designated – funds which have been set aside by the Trustees for specific purposes. The aim and use of the Designated Fund is set out in the notes to the financial statements.

RESOURCES EXPENDED

OURCES EXPENDED
2023 2023 2023 2023 2022
General Comforts Endowment Total Total
Fund Fund Fund
(unrestricted) (restricted)
£ £ £ £ £
Charitable activities
Staff salaries 1,456,052 - - 1,456,052 1,524,277
Catering costs 100,993 - - 100,993 95,010
Cleaning and household 40,607 - - 40,607 41,708
Programme activities 5,652 - - 5,652 2,757
Medical services 6,212 - - 6,212 6,212
Registered fees 6,533 - - 6,533 6,967
Garden 8,785 - - 8,785 5,411
Property repairs & maint. 49,451 - 49,451 49,394
Repairs & renewal equipment 35,029 - - 35,029 27,858
Light and heat 89,892 - - 89,892 71,059
Rates 11,841 - - 11,841 (8,303)
Insurance 19,393 - - 19,393 18,826
Water and sewage 8,161 - - 8,161 7,813
Waste collection 10,833 - - 10,833 8,673
Depreciation 13,592 - - 13,592 14,983
Equipment hire 9,679 - - 9,679 14,013
Telephone 5,844 - - 5,844 4,783
Printing, stationery & postage 8,318 - - 8,318 8,396
Advertising, brochures and
website 30,304 - - 30,304 29,396
Sundry expenses 8,795 - - 8,795 9,902
Gifts to residents 569 - - 569 1,196
I T Support 5,741 - - 5,741 6,371
Staff advertising & training
3,636
Book-keeping and secretarial
28,338
Consultancy
10,220

1,974,470		 -
-
-
-
-
-

-
-		 3,636
28,338
10,220

1,974,470		 5,358
25,099
7,197

1,984,356
BAXENDALE CARE HOME
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2023
Other
Secretarial services
28,337
-
-
Audit
5,160
-
-
Grant from Mary Westby Trust - - -
Legal and professional
7,950
-
-
41,447
-
-
2,015,917
-
-
TOTAL RESOURCES EXPENDED
Staff
Depreciation
Other
Costs
Costs
£
£
£
Charitable activities
1,505,503
13,592
455,375
Other
-
-
-

1,505,503
13,592
455,375
Staff costs:
Wages and salaries
1,298,667
Social security costs
121,556
Agency staff
27,482
Pension contributions
57,798
1,505,503
No employee earned £60,000 p.a. or more from the Charity for the year.
The average number of employees, analysed by function was
Direct charitable expenditure		 2023
£
28,337
5,160
-
7,950
41,447

2,015,917
Total
2023
£
1,974,470
41,447

2,015,917

2023
62		 Page 12
2022
£
25,098
4,730
-
30,675
60,503
2,044,859
Total
2022
£
1,984,356
60,503
2,044,859
1,402,128
120,639
4,133
61,053
1,587,953
2022
63

2. FUND TRANSFERS

The granting of the investment power of total return was given on 1 November 2006. During the year, the Trustees made a transfer of £285,067 unapplied total return to unrestricted funds in respect of the charitable activities of the Charity. This amount was the income receivable during the period from dividends, interest, rents and is comparable to the income that would have been credited without the power. In these circumstances it was thought unnecessary to take further advice.

3. TRANSACTIONS WITH TRUSTEES AND KEY MANAGEMENT PERSONNEL

No remuneration was paid to any Trustee (2022 - none). Total payments to key management personnel amounted to £224,165 for the period (2022 - £191,950).

There were no amounts reimbursed to the Trustees were for costs incurred by the Trustees on behalf of Baxendale (2022 - £nil).

4. TANGIBLE FIXED ASSETS

Functional Freehold Furniture, fixtures
Conservatory land & buildings Equipment & fittings
£
£
£
£
Cost brought forward 1April 2022
37,670
3,293,189
237,705
239,407
Additions
-
1,015,847
-
6,049

Transfer to Investments
-
-
-
-

At 31 March 2023
37,670
4,309,036
237,705
245,456
Depreciation at 1 April 2022
30,991
-
201,846
210,535
Charge for period
2,428
-
7,627
3,537
At 31 March 2023
33,419
-
209,473
214,072		 Total
£
3,807,971
1,021,896
-		 Total
£
3,807,971
1,021,896
-
4,829,867
443,372
13,592

456,964
NET BOOK VALUES
At 31 March 2023
At 31 March 2022		 4,251
6,679		 4,309,036
3,293,189		 28,232

35,859
 31,384
28,872		 4,372,903
3,364,599

The fixed assets are used by the Home for its charitable activities.

BAXENDALE CARE HOME Page 13

NOTES TO THE FINANCIAL STATEMENTS (Continued) Year ended 31 March 2023

5.
FIXED ASSET INVESTMENTS
UK investment properties
Opening cost / valuation 1 April 2022
Net unrealised investment gains / (losses)

Closing market value 31 March 2023
Closing historical cost as at 31 March 2023
UK investments listed on a recognised stock exchange
Opening market value 1 April 2022
Net investment gains / (losses)
Realisation of investments

Closing market value 31 March 2023
Closing historic cost as at 31 March 2023
Closing total market value 31 March 2023

Closing total historic cost as at 31 March 2023		 2023
£
3,355,000
(780,000
)

2,575,000
552,629
4,531,660
(176,140)
(850,000
)

3,505,520
2,856,625
6
.080,520
3,409,254		 2022
£
3,075,000
280,000
3,355,000
552,629
4,178,189
353,471
-
4,531,660
3,530,039

7,886,660


4,082,668

All of the listed investments are held in a collective managed fund.

Valuation

The freehold land and buildings held as Fixed Asset Investments were valued on an open market valuation as at 31 March 2023 by Mr Bruce Maunder-Taylor a Chartered Surveyor and a Trustee.

6. CURRENT ASSET INVESTMENTS

7.

Quoted Investments:
Opening market value 1 April 2022
Additions – Extraordinary Repair Fund
Net unrealised investment gains / (losses)

Market value 31 March 2023
Closing historical cost as at 31 March 2023

DEBTORS
Prepayments
Legacy notified but not paid
Other debtors		 2023
£
151,312

1,000
(27,448
)

124,864

113,934

7,369
30,000
11,391
48,760		 2022
£
137,540
1,000
12,772
151,312
112,934
31,827
273,132
19,269
324,228

BAXENDALE CARE HOME Page 14 NOTES TO THE FINANCIAL STATEMENTS (Continued) Year ended 31 March 2023

8.
CREDITORS: Amounts falling due within one year
Trade creditors
Other taxation, social security and pension
Accruals

9. CREDITORS: Amounts falling due after one year
Loan		 2023
£
17,809
31,233
77,792

126,834
-		 2022
£
31,676
39,613
206,387
277,676
-		 2022
£
31,676
39,613
206,387

10. PERMANENT ENDOWMENT

The original Charity was created by Deed of Gift dated 31 October 1892 comprising of freehold land and property at Totteridge Lane, London N20 and investments. These were incorporated into a Scheme under the Seal of the Charity Commissioners dated 30 December 1960.

11. DESIGNATED FUNDS

The income funds of the Home include the following designated funds which have been set aside out of unrestricted funds by the Trustees for specific purposes

Movements in Reserves Net realised
Inv.
Balance Incoming/outgoing transfers Gains/losses Balance
1.4.2022 2023 2023 2023 31.03.23
£ £ £ £ £
Mary Westby 124,436 - - (27,176) 97,260
Repairs Res. 585,006 50,000 - (272) 634,734
709,442 50,000 - (27,448) 731,994
1.4.2021 2022 2022 2022 31.03.22
£ £ £ £ £
Mary Westby 74,819 40,000 - 9,617 124,436
Repairs Res. 531,853 50,000 - 3,153 585,006
606,672 90,000 - 12,770 709,442
Market value of investments held in Repairs Reserve as at 31 March 2023 32,027
Market value of investments held in Mary Westby Fund as at 31 March 2023 92,83
Historic cost of investments at 31 March 2023 113,934

Market value of investments held in Mary Westby Fund as at 31 March 2023 92,837

The Repairs Reserve is designated for the long term maintenance requirements of the Home. The Mary Westby Fund is being held to assist any resident, or potential resident, who may not be able to meet our fees either from their own resources or from Borough funding. Application should be made to the Trustees who will consider each case on merit.

12 . RESTRICTED FUNDS

Comforts Fund 2022/23
Comforts Fund 2021/22		 Balance
1.4.22
Incoming/
Transfer 2023
Outgoing
2023
Balance
31.03.23
£
£
£
£
-
-
-
-
1.4.21
2022
2022
31.03.22
£
£
£
£
-
-
-
-

The Comforts Fund was established many years ago to raise funds to be used for outings and other leisure activities for residents. The Fund is administered by the House Committee. Due to Covid it was not possible to hold the usual fund raising events so the usual costs for flowers have been met from General Funds.

BAXENDALE CARE HOME Page 15 NOTES TO THE FINANCIAL STATEMENTS (Continued) Year ended 31 March 2023

13. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible Net Current
Fixed Assets Investments Assets / (Liabilities)
£ £ £
UNRESTRICTED FUNDS
General
529,379
-
829,296
Designated
-
124,864
607,130

529,379
124,864
1,436,426
RESTRICTED FUNDS
Comforts Fund
-
-
-

529,379
124,864
1,436,426
ENDOWMENT FUND
3,843,524
6,080,519
-

4,372,903
6,205,383
1,436,426		 Amounts
due > 1 yr
Total
£
£
-
1,358,675
-
731,994
-
2,090,669
-
-
-
2,090,669
-
9,924,043
-
12,014,712

14. RELATED PARTY TRANSACTIONS

During the period 1 April 2022 to 31 March 2023 £0 (Period 1 April 2021 to 31 March 2022 - £33,900) was paid to Mr B M Hosier, Chartered Accountant, for dealing with administration matters on behalf of the Trustees including secretarial, accounting and general advice. Mr Hosier is treasurer but not a Trustee and became an employee on 1 January 2022.

15. FUTURE COMMITMENT

During the previous year a contract was signed for the conversion of a number of bedrooms on the 1[st] and 2[nd] floor long corridors and this contract has been completed and either paid or any balance included in creditors. A further contract was signed in August 2022 for similar work on the short corridors for £1,229,194 and at the accounting date £778,796 was paid and funds made available for the balance of £450,398 not provided for in these accounts.

16. APPLICATION OF THE POWER OF TOTAL RETURN

The Charity Commission permitted the Trust to adopt the use of total return in relation to its permanent endowment investments and this has been applied since 1 January 2006. The power permits the Trustees to invest the portfolio to maximise total return and to apply an appropriate portion of the total return to income each year. Until the power is exercised to transfer a portion of unapplied total return to income (as disclosed in the fund transfers, note 2), the unapplied total return remains invested as part of the Permanent Endowment. The original gift to the Charity was estimated as at 30 December 1960 and agreed with the Charity Commission. The balance of the Permanent Endowment as at 1 January 2006 was then agreed as the unapplied total return.

The investment fund and application of total return
to permanent endowment:
Unapplied total return as at 1 April 2022

Add: Investment return: Dividends, interest, rents
Gains and losses
Less: Unapplied total return applied

Balance to carry forward
Add: Original value of the gift 30 December 1960
Permanent Endowment Fund including unapplied total return		 2023
£
10,601,421
285,067
(956,139)
-

9,930,349
(285,067
)
9.645,282
9,645,282
278,761
9,924,043		 2022
£
9,558,332
263,520
643,089
-
10,864,941
(263,520
)
10,601,421
10,601,421
278,761
10,880,182

BAXENDALE CARE HOME

Page 16

17. STATEMENT OF FINANCIAL ACTIVITIES (2022)

The following is the Statement of Financial Activities for the comparative year ended 31 March 2022:




Income and endowments from:
Income from Charitable activities
Donations and legacies
Charitable activities
Income from Investments
Other income

Total Income and endowments
Expenditure on:
Charitable activities
Other
Total expenditure
Net income / (expenditure) before
Gains / (losses) on investments
Net gains / losses on investments
Net income / (expenditure)
Gains / (losses) on revaluation
Fixed assets
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
at 1 January 2021
Total funds carried forward
at 31 March 2022




Unrestricted Restricted Permanent
Income
Income Endowment
Funds
Fund
£
£
£
3,303
-
-
1,454,723
-
-
-
-
263,520
101,881
-
-
1,559,907
-
263,520
1,984,356
-
-
60,503
-
-

2,044,859
-
-
(484,952)
-
263,520
3,154
-
643,089
(481,798)
-
906,609
-
-
-
263,520
-
(263,520
)
(218,278)
-
643,089
2,642,370
-
10,237,093
2,424,092
-
10,880,182		 Total
31 March
Fund 2022
£
3,303
1,454,723
263,520
101,881
1,823,427
1,984,356
60,503
2,044,859
(221,432)
646,243
424,811
-
-
424,811
12,879,463
13,304,274