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2021-03-31-accounts

Charity Registration No. 1190162

Company Registration No. 12571844 (England and Wales)

CHESHIRE RESIDENTIAL HOMES TRUST

AND LINKED CHARITIES

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2021

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES LEGAL AND ADMINISTRATIVE INFORMATION

Cheshire Residential Homes Trust - A company limited by guarantee.

Trustees Mrs A Brough (Appointed 24 April 2020)
Mrs S M Cook (Appointed 24 April 2020)
Mrs V Godfrey (Appointed 24 April 2020)
Mrs A J Marsh (Appointed 24 April 2020)
Mrs C L Reeves (Appointed 24 April 2020)
Mrs G Rushworth (Appointed 24 April 2020)
Mrs S Stallard (Appointed 24 April 2020)
Mrs J Tetlow (Appointed 24 April 2020)
Charity number 1190162
Company number 12571844
Principal address Sandiway Manor
Norley Road
Sandiway
Northwich
Cheshire
CW8 2JW
Registered office Sandiway Manor
Norley Road
Sandiway
Northwich
Cheshire
CW8 2JW
Auditor McLintocks (NW) Limited
2 Hilliards Court
Chester Business Park
Chester
Cheshire
CH4 9PX
Bankers Natwest Bank plc
1 Hardman Boulevard
Manchester
M3 3AQ
Solicitors Brabners LLP
Horton House
Exchange Flags
Liverpool
Merseyside
L2 3YL

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES LEGAL AND ADMINISTRATIVE INFORMATION

Cullimore Dutton 20 White Friars Chester Cheshire CH1 1XS

Investment advisors Castlefield Investments Limited 1 Portland Street Manchester M1 3LA

Linked Charities - The Cheshire Residential Homes Trust and The Jardine Trust

Trustee Cheshire Residential Homes Trust (Appointed 3 August 2020)

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES CONTENTS

Page
Trustees' report 1 - 9
Independent auditor's report 10 - 12
Statement of financial activities 13 - 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 - 32

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE PERIOD ENDED 31 MARCH 2021

The Trustees present their report and financial statements for the period ended 31 March 2021.

Structure, governance and management

Cheshire Residential Homes Trust (the company) is a company limited by guarantee ; it was incorporated on 24 April 2020. The trustees received formal approval from the Charity Commission on 29 June 2020 for a scheme whereby th is new Charity replace d the individual trustees as the sole T rustee of The Cheshire Residential Homes Trust. The incorporated charity will be referred to as Cheshire Residential Homes Trust , with legal and financial responsibilities continuing to lie with the or i ginal unincorporated charity , The Cheshire Residential Homes Trust (the charity).

The Trustees of Cheshire Residential Homes Trust, who are also the directors for the purpose of company law, and who served during the period and up to the date of signature of the financial statements were:

Mrs A Brough (Appointed 24 April 2020)
Mrs S M Cook - (Chairman) (Appointed 24 April 2020)
Mr C Davies (Appointed 24 April 2020 and resigned 20 July 2021)
Ms M J Flint (Appointed 24 April 2020 and resigned 20 August 2021)
Mrs V Godfrey (Appointed 24 April 2020)
Mrs A J Marsh (Appointed 24 April 2020)
Mrs C L Reeves (Appointed 24 April 2020)
Mrs G Rushworth (Appointed 24 April 2020)
Mrs P Speechly (Appointed 24 April 2020 and resigned 28 July 2021)
Mrs S Stallard (Appointed 24 April 2020)
Mrs J Tetlow (Appointed 24 April 2020)
M Offer (Appointed 24 April 2020 and resigned 24 April 2020)

The Cheshire Residential Homes Trust is a registered charity, number 1190162-1. Its governing instruments are the original Trust Deed dated 1 April 1947 and the Charity Commission Scheme dated 5 April 1957, as amended.

Prior to 7 September 2020 the registered number of the Charity was 218084; however, with effect from that date, the Charity Commission has linked the Charity with the incorporated charity Cheshire Residential Homes Trust, charity registration number 1190162. The Linking Direction is for reporting purposes only; it does not change the separate legal status of the charities, or the nature of restricted funds or endowment, and it does not constitute a merger.

The company, which has not traded during the period from 24 April 2020 (date of incorporation) to 31 March 2021, has no assets or liabilities. Accordingly the remainder of this report and the financial statements relates solely to the activities of the original unincorporated charity, The Cheshire Residential Homes Trust for its accounting period from 1 April 2020 to 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing documents, the Companies Act 2006 and "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 (FRS 102) (effective 1 January 2019)".

Objectives and activities

The purpose of the Charity is to provide residential care for elderly people living in Cheshire and Wirral and for the relatives of people who have lived in those areas for a number of years, and, for various reasons, find it impossible to stay in their own homes.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

The Board’s main objectives are:

In setting their objectives and planning activities the Trustees have given careful consideration to the Charity Commissions’ general guidance on public benefit and, in particular, to its supplementary guidance on feecharging; the Trustees have also had regard to their commitment to:

The Charity owns three residential homes at:

Sandiway Manor - 1 Norley Road, Sandiway, Northwich, Cheshire

Trepassey - Hillside Road, Heswall, Wirral, Merseyside Upton Grange - 214 Prestbury Road, Macclesfield, Cheshire

The Charity furthers its charitable purposes by providing comfortable surroundings for residents, irrespective of their financial means, where they can benefit from a safe and friendly environment and where their individual needs are met in full.

Each Home is set in its own grounds. Residents have separate rooms, with their own furniture if they wish, where they can entertain relatives and friends. In addition, each Home has a lounge and dining room and there are rooms for short-stay visitors and for any prospective resident who wishes to stay for a trial period.

Residents enjoy the privacy of their own rooms, where they can spend as much or as little time as they choose – apart from main meals which are usually taken with the other residents. Residents may go out at any time provided the Manager or her Deputy is informed. Residents may also participate in the full and varied activities offered by each Home.

Residents pay fees towards the cost of running the Homes, such fees being assessed on the basis of their financial means; the balance of running costs is met from donations and legacies and from top-up fee payments by Local Authorities. During the year an average of 18.5% (2020 - 16%) of permanent residents were funded by Local Authorities.

In addition, we aim to provide fee subsidies for some of our residents; during 2020-21 subsidies totalled £179,402 (2019-20 £86,822) representing approximately 6% (2019-20 3%) of gross fees.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Achievements and performance

Early in the pandemic effective and robust measures were put in place in each of our three Homes to reduce the possibility of infection and, thanks to the efforts and diligence of all of our staff and agency workers, we are able to report that there has been only one Covid-19 related death within our Homes.

The Charity is registered with the Care Quality Commission (CQC) for the provision of care for older people. CQC has a programme of unannounced visits for the purpose of inspection, the last inspections having been:

May 2018 Trepassey overall outcome “Good” November 2018 Sandiway Manor overall outcome “Good” January 2020 Upton Grange overall outcome “Requires Improvement”

We have received confirmation, during 2021, that CQC (after consulting with Local Authorities and other agencies) do not believe that further inspections are necessary at Sandiway Manor or Trepassey at this time.

Of the five areas inspected by CQC, Upton Grange required improvement in two of those areas, namely “Is the service safe?” and “Is the service well led?”. Improvements were required in auditing and in paperwork. The full report is available on the CQC website. Action plans to rectify these areas were immediately prepared and implemented and will be reviewed at the next CQC inspection. A new Registered Manager was appointed towards the end of 2020 and some key staff changes have taken place.

A new role of General Manager has been created through internal promotion, who will work closely with the Nominated Individual and CEO to ensure common standards and audit procedures are applied across the three Homes.

The Trustees remain confident that, at all three Homes, the needs of our residents are fully met by the high standard of care provided by our staff, and that staff are being well supported by management, as indicated in the results of residents’ and staff surveys.

Financial review

The operating results for the year were pleasing with the Charity achieving an operating surplus for the year on unrestricted funds of £252,952 compared to £184,598 in 2020.

The surplus reflects the hard work that the new Senior Management team and all the employees at CRH Trust has put into ensuring the Homes could continue to operate successfully and safely during Covid-19 and all involved are very pleased with the high surplus for the year when faced with one of the toughest outbreaks of virus in many years that could have severely affected our staff and residents.

Trepassey made a vast improvement in its financial position during 2020-21 after the previous years loss of £68,910, The Home managed to improve its occupancy through the year and also received a block booking upto the 30 September 2020 from the Local Authority for placement of residents temporarily. The surplus for the year at Trepassey totalled £173,097.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Sandiway maintained a healthy surplus of £75,813 for the year (2020 - £115,515) and Upton Grange made a smaller surplus than previous years of £26,124 (2020 - £144,070) due to lower numbers of residents for the year and a slower uptake than normal of new residents joining us at Upton Grange due to Covid-19.

The schedule of works started in 2020-21 to address ongoing maintenance issues and improve all threee buildings held by the Trust will continue over the next few financial years. The buildings were revalued in 2019 and will be revalued again in 5 years once the schedule of works is complete.

Reserves Policy

The Trustees have established a policy whereby unrestricted reserves not committed or invested in fixed assets or investments held by the Charity should be in the region of four months’ expenditure, which equates to approximately £1,041,000. At this level the Trustees feel that they would be able to continue the current activities of the Charity if there were to be a significant fall in income as a result of the coronavirus pandemic or for any other reason. At 31 March 2021 the free reserves of the Charity were in the region of £1,006,952 significantly closing the gap to £34,048 (2020 – £287,000) between the funds held and those required.

It is expected during 2021-2022 the remaining funds required for the reserves will be met within the first 6 months and any remaining surplus can be focused back into investing in the Charity.

Investment Policy and Performance

The Trustees’ investment powers are governed by the Trustees Act 2000.

The Trustees’ long-term policy for the general portfolios is to maximise income while preserving the value of the investments. The Charity’s general investments have continued to be managed in accordance with that policy. The day-to-day management of the general investment portfolios has been delegated to Castlefield Investments Limited who provide a discretionary investment management service.

The investment portfolios derive their income from the underlying investments held, typically company dividends, interest payments on bonds and rents from commercial properties. During 2019-20 we saw a significant fall in the investment portfolios due to the impending impact of Covid starting during the early part of 2020. Although we expected to continue to see continued falls in the investment profiles the investment field recovered well and overall the gains during 2020-21 were pleasing.

The Charity saw a realised investment gain of £2,385 (2020 £ -6807) and an unrealised gain of £123,171 (2020 £ -118,080).

Risk Management

A significant risk currently facing the Charity and the care sector in general is the impact of Covid-19. The high death rate sustained globally over the pandemic demonstrates the stark impact that Covid-19 has had both on care home residents and staff.

The legal requirement for all Residential Care Home staff to be double vaccinated by 11 th November 2021 has created a potential crisis within the industry , worsening an already critical shortage of staff, but we are pleased to confirm that, in addition to 100% of our residents being double vaccinated , approximately 98% of our workforce has also been double vaccinated , thanks to the team spirit and supportive management style adopted in all of our Homes.

The wellbeing and mental health of our staff remains a high priority for us as responsible and caring employers. We have invested in the training of a senior employee as a Mental Health First Aider to provide support across our three Homes and review the needs and concerns of our colleagues at all levels, through anonymous staff surveys, the results of which are shared and discussed with the Trustees at their meetings.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Throughout the pandemic steps have also been taken to ensure that our staff are adequately protected both through the provision of personal protective equipment (PPE) and by arrangements to reduce infection when travelling to and from work. Some members of staff did contract Covid-19 from outside the workplace and in each case they were required to self-isolate in accordance with Government guidelines.

Apart from Covid-19, another major risk faced by the Charity is the operational risk arising from ineffective management of the individual Homes, which could result in a significant failure to meet the service standards required by CQC for residential care homes. We have restructured our senior management team in order to ensure that there is a united , informed and effectively audited and reviewed approach to managing our business. In common with the rest of the Care Sector we face risks from shortage of staff, dependency on agency staff, gaps in Local Authority funding and competition from developing models of care.

Plans for the Future

We are continuing with our Brand Development Strategy, standardising as many aspects of our business as possible across the three Homes, without detracting from the unique character of each building.

We shall be putting a prioritised repairs and maintenance programme in place, utilising any trading surplus from the current financial year to upgrade the interior and exterior of our premises in order to make them more attractive and in keeping with the changing needs of our target market. The list of proposed works will be compiled by our Estates Manager and will be reviewed quarterly by our Senior Management Team, before being approved by our Trustees at quarterly Trustees meetings.

Common standards and disciplines have become established across all three Homes, with common job titles, pay bands and key competencies. Each category of staff has its own specific uniform so that they are readily identifiable from a distance and can also be identified from their photographs in the reception area at each Home.

We have adopted a policy of “Recruit, Train, Retain”, which includes panel interviewing to a single standard with standardised, key competencies based interviews for each role. All staff will have a personal development plan, performance reviews and personal training programmes.

Whenever possible, we shall seek to promote internally to provide career progression and to develop people, in order to meet their career expectations and the changing needs of the business, within an industry that continues to be undervalued and under resourced. We are also seeking to take part in the Kickstart scheme, with the intention of placing two apprentices in each of our Homes.

Our aim will be to motivate, inspire, respect and recognise the achievements of our teams, encouraging creativity and innovation and supporting them through promoting mindfulness and wellbeing.

We have facilitated the training of a Mental Health Champion ,who has an active involvement in all three of our Homes supporting a highly trained, motivated and loyal workforce who share our goal of providing Person Centred care, equality and respect for all, but who also continue to face the stresses and demands of a highly challenging workplace.

In order to establish our desired position within our local communities, we continue to work in association with other organisations and local businesses (such as Astra Zeneca, Barclays Bank, Active Cheshire and Grow Macclesfield) as well as local schools and churches, to provide facilities such as vegetable gardens and nature walks within our grounds for the benefit of our residents and their families, staff , local schoolchildren and the lonely and isolated within our community.

We are also fundraising actively to raise the money required to fund a minibus for the safe transportation of our residents as they return to regular interaction with the outside world. With support of our partners , such as the Hinton Trust, we are also raising funds to provide defibrillators outside each of our homes for the benefit of our residents and the local community.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

The ever growing demand for technology to provide high quality, effective tools in order to ensure that the highest level of care can be provided as well as internet connectivity for staff, residents and their families and other visitors, in addition to providing video consultations with doctors, staff training , remote meetings by Teams, telephone contact with home working /mobile staff and FaceTime contact with residents from all rooms, has been satisfied by investment in a fully hosted telephone system and enhanced internet connection. All office staff have been properly equipped for home / remote working and all mobile staff have now had their contracts amended to make them home based, in keeping with the changing , post pandemic working practices and preferences.

We continue to establish the community in each of our Homes as an active, integral part of the greater local community whilst also displaying a recognisable brand image and we shall achieve this goal through inclusive and consultative leadership. We shall become involved in industry competitions, develop in house awards and seek regular feedback on progress from staff via job satisfaction surveys and from residents’ families, through regular anonymous online surveys We will encourage early engagement by reaching out to the lonely and underprivileged in our community with a view to including them in our activities, familiarising them with our services and facilitating care progression in keeping with their individual needs. We continue to provide consistently excellent care through happy, motivated, appreciated and skilled staff. All the above improvements will ensure high standards of care and improved quality of life for our residents.

Structure, governance and management

Trustees

Under a Charity Commission Scheme dated 3 August 2020 the incorporated charity Cheshire Residential Homes Trust became the sole corporate trustee of The Cheshire Residential Homes Trust. Prior to 3 August 2020 individual Trustees were appointed by the Board of Trustees for a term of three years on the basis of nominations received.

Trustees induction and training

New Trustees appointed to the Board of the incorporated charity are inducted into the workings of the unincorporated charity and the incorporated charity at a meeting with the Chairman. A Trustee Information pack is provided on appointment. The pack contains copies of the Trust Deed, together with other documents including “A Guide to being a Trustee of Cheshire Residential Homes Trust” and the Charity Commission publication “The Essential Trustee – What you need to know”.

Individual Trustees were expected to attend external training courses that were relevant to their needs.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Reference and Administrative Information

President: Sir William Bromley-Davenport (Retired 22 October 2019)

Mrs J Bromley-Davenport

Chief Executive Officer Mr R I MacGregor

Trustees

Under a Charity Commission Scheme dated 3 August 2020 the incorporated charity Cheshire Residential Homes Trust, charity number 1190162, was appointed as the sole Trustee of the Charity The Cheshire Residential Homes Trust. On the 24 April 2020 the serving Trustees, were appointed directors of the corporate trustee and subsequently retired from the charity on 3 August 2020.

The Trustees were served during the financial year and in the period between 1 April 2020 and 3 August 2020 were as follows:

Mrs A Brough Mrs S M Cook (Chairman) Mr C Davies Resigned 20/07/2021 Ms M J Flint Resigned 20/08/2021 Mrs V Godfrey Mrs A J Marsh Mrs C L Reeves Mrs G Rushworth Mrs P Speechly Resigned 28/07/2021 Mrs S Stallard Mrs J Tetlow

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Organisational Management

The Trustees of the unincorporated charity met as a Board at least four times a year and, as trustees of the incorporated charity, they will continue to meet at that same frequency to consider the general policy of the Charity and the management and control issues for which they are legally responsible. The Trustees also approve the annual budgets for each Home in addition to the Annual Report and Financial Statements.

The Trustees are responsible for deciding the strategic aims of the Charity and for its overall administration and they are assisted by the Chief Executive Officer who is responsible for the Charity’s operations and the day-to-day management of the three Homes. The Chief Executive is supported by the Home Managers, the Financial Controller and the Administration Manager, who is also the Nominated Individual for CQC purposes.

An Audit and Risk Management Committee is responsible for ensuring there is a framework of accountability in place within the Charity it is also responsible for examining and reviewing systems and methods of control, both financial and otherwise, including risk analysis and management; and for ensuring that the charity is complying with all aspects of law, relevant regulations and good practice. The Audit and Risk Management Committee, which meets at least twice a year, consists of three Trustees, the Chief Executive Officer, the Financial Controller and the Administration Manager.

Organisational Structure and Relationships

The Charity is a member of the National Care Association, which represents care providers in the UK. The Charity also benefits from close support from charities and friends associated with the three Homes. The financial and other support from those organisations and volunteers from within the local communities is greatly appreciated and gladly acknowledged.

Key Management Personnel

The Trustees consider the Board of Trustees and the Chief Executive Officer as being key management personnel responsible for directing and controlling the operations of the Charity. These individuals are supported by the Home Managers, the Financial Controller and the Administration Manager, who is also the Nominated Individual for CQC purposes.

All Trustees give their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and other transactions with Trustees are disclosed in Note 14 to the accounts.

The salaries of the Chief Executive Officer, the Home Managers, the Financial Controller and the Administration Manager are reviewed annually and usually rise in line with increases in average earnings.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

Statement of Trustees' responsibilities

Charity trustees are responsible for preparing the trustees’ annual report and 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 and Wales requires the Charity’s Trustees to prepare financial statements each year which give a true and fair view of the state of affairs of the Charity and the incoming resources and application of resources of the Charity for that period

In preparing the financial statements the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose, with reasonable accuracy, the financial position of the Charity at any time, and to enable them as Trustees to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations and the provisions of the Trust Deed. The Trustees are also responsible for safeguarding the Charity’s assets and taking reasonable steps for the prevention and detection of error, fraud and other irregularities.

The Trustees are also responsible for the maintenance and integrity of the Charity and any financial information on the Charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

Auditor

In accordance with the company's articles, a resolution proposing that McLintocks (NW) Limited be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees' r eport was approved by the Board of Trustees.

Mrs S M Cook

Dated: 26 November 2021

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF CHESHIRE RESIDENTIAL HOMES TRUST

Opinion

We have audited the financial statements of Cheshire Residential Homes Trust (the ‘Charity’) which includes the linked charities for the period ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and , except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CHESHIRE RESIDENTIAL HOMES TRUST

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the Trustees' r eport.

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

Responsibilities of Trustees

As explained more fully in the s tatement of Trustees' r esponsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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.

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 .

Enquiries of management and those charged with governance were held in order to identify any laws and regulations that could be expected to have a material impact on the financial statements. Throughout the audit, the team were updated with the outcomes of these enquiries including consideration as to where and how fraud may occur in the Charity.

The audit procedures undertaken to address any potential risk in relat ion to irregularities (which include fraud and non-compliance with laws and regulations) included: enquiries of management and those charged with governance on how the Charity compl ies with relevant laws, regulations and any cases actual or potential litigation or claims; examination of appropriate legal correspondence; review of board minutes; testing of journal entries for appropriateness; and analytical procedures on account balances to identify variances against expectation which may show indications of fraud.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CHESHIRE RESIDENTIAL HOMES TRUST

No instances of material non-compliance were identified, although the prospect of detecting irregularities, including fraud, is inherently difficult. This is due to; difficulty in detecting irregularities; limits imposed by the effectiveness of the entity’s controls; and the nature, timing and extent of the audit procedures performed. Irregularities as a result of fraud are inherently more difficult to detect than those that resulting from error. Despite this the audit has being planned and performed in accordance with ISAs (UK), there is an unavoidable risk that material misstatements may not be detected.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// 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 company's members, 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 charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Caputo FCA (Senior Statutory Auditor) for and on behalf of McLintocks (NW) Limited

26 November 2021

Chartered Accountants Statutory Auditor

2 Hilliards Court Chester Business Park Chester Cheshire CH4 9PX

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED 31 MARCH 2021

Current financial year

Unrestricted
funds
2021
Notes
£
Income and endowments from:
Donations and legacies
3
3,766
Charitable activities
4
3,204,370
Investments
5
15,383
Other income
6
189,468
Total income
3,412,987
Expenditure on:
Raising funds
7
3,869
Charitable activities
8
3,156,166
Total resources expended
3,160,035
Operating surplus
252,952
Net gains/(losses) on investments
12
125,556
Net incoming resources
378,508
Other recognised gains and losses
Revaluation of tangible fixed assets
13
-
Net movement in funds
378,508
Fund balances at 1 April 2020
1,652,880
Fund balances at 31 March 2021
2,031,388		 Restricted Endowment
funds
funds
2021
2021
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,932
5,689,000
1,932
5,689,000		 Total
2021
£
3,766
3,204,370
15,383
189,468
3,412,987
3,869
3,156,166
3,160,035
252,952
125,556
378,508
-
378,508
7,343,812
7,722,320		 Total
2020
£
3,465
2,880,135
24,163
-
2,907,763
3,863
2,719,302
2,723,165
184,598
(72,639)
111,959
(6,611,526)
(6,499,567)
13,843,379
7,343,812

The statement of financial activities includes all gains and losses recognised in the period.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED 31 MARCH 2021

Prior financial year

Unrestricted
funds
2020
Notes
£
Income and endowments from:
Donations and legacies
3
3,465
Charitable activities
4
2,880,135
Investments
5
21,435
Total income
2,905,035
Expenditure on:
Raising funds
7
3,863
Charitable activities
8
2,705,426
Total resources expended
2,709,289
Operating surplus
195,746
Net gains/(losses) on investments
12
(72,639)
Gross transfers between funds
104,922
Net incoming resources
228,029
Other recognised gains and losses
Revaluation of tangible fixed assets
13
-
Net movement in funds
228,029
Fund balances at 1 April 2019
1,424,851
Fund balances at 31 March 2020
1,652,880		 Restricted Endowment
funds
funds
2020
2020
£
£
-
-
-
-
2,728
-
2,728
-
-
-
13,876
-
13,876
-
(11,148)
-
-
-
(1,145,769)
1,040,847
(1,156,917)
1,040,847
-
(6,611,526)
(1,156,917) (5,570,679)
1,158,849
11,259,679
1,932
5,689,000		 Total
2020
£
3,465
2,880,135
24,163
2,907,763
3,863
2,719,302
2,723,165
184,598
(72,639)
-
111,959
(6,611,526)
(6,499,567)
13,843,379
7,343,812

The statement of financial activities includes all gains and losses recognised in the period.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
14
Investments
15
Current assets
Debtors
16
Investments
17
Cash at bank and in hand
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Capital funds
Endowment funds-general
General endowment funds
Revaluation reserve
19
Income funds
Restricted funds
20
Unrestricted funds
Designated funds
21
General unrestricted funds		 2021
£
£
6,030,329
660,838
6,691,167
329,151
272,089
927,786
1,529,026
(497,873)
1,031,153
7,722,320
5,689,000
-
5,689,000
1,932
22,641
2,008,747
2,031,388
7,722,320		 2020
£
£
6,037,678
527,046
6,564,724
322,166
322,497
658,382
1,303,045
(523,957)
779,088
7,343,812
12,300,526
(6,611,526)
5,689,000
1,932
22,641
1,630,239
1,652,880
7,343,812

The financial statements were approved by the Trustees on 26 November 2021

Mrs S M Cook

Company Registration No. 12571844

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash generated from operations
26
Investing activities
Purchase of tangible fixed assets
Purchase of investments
Proceeds on disposal of investments
Investment income received
Net cash used in investing activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Relating to:
Cash at bank and in hand
Short term deposits included in current
asset investments		 2021
2020
£
£
£
£
227,755
107,431
(15,906)
(1,181,876)
(156,503)
(69,415)
148,267
75,987
15,383
24,163
(8,759)
(1,151,141)
-
-
218,996
(1,043,710)
980,879
2,024,589
1,199,875
980,879
927,786
658,382
272,089
322,497

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2021

1 Accounting policies

Charity information

Cheshire Residential Homes Trust is a Charity registered with the Charity Commission in England & Wales (1190162). The principle address is Sandiway Manor, Norley road, Sandiway, Northwich, CW8 2JW.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006 and "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)". The Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the Charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted income funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the Charity’s charitable objects. Unrestricted funds include designated funds where the Trustees, at their discretion, have created a specific fund for a specific purpose.

Restricted funds are funds that are to be used in accordance with the specific restrictions imposed by the donor.

E ndowed funds are funds used for a specific purpose or purposes of the Charity. The Trustees have been advised by Brabners LLP, solicitors, that they consider the freehold and buildings to be permanent endowment, being functional land and buildings to be held in perpetuity by the Charity. Accordingly, in these Financial Statements the freehold land and buildings have been treated as permanent endowment .

1.4 Income

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Donations are recognised when the Charity has been notified in writing of both the amount and settlement date. Donations subject to specific wishes of the donors are carried to relevant restricted funds. Donations receivable for the general purposes of the Charity are credited to unrestricted funds.

Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event of the legacy gift being in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition would be subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset being transferred to the Charity.

Interest on investments and on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

Dividends from listed companies are recognised once the dividend has been declared and notification has been received of the dividend due.

1.5 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on the accrual basis.

All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings. VAT is included with the item of expense to which it relates.

Support costs have been allocated between governance and other support costs. Governance costs comprise all costs involving public accountability of the Charity and its compliance with regulation and good practice. These costs include related statutory audit fees together with apportionments of overhead and support costs.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings not depreciated Plant and equipment at varying rates on cost and reducing balance Motor vehicles 25% reducing balance

No provision is made for depreciation in respect of freehold properties. This policy has been adopted because the value of these assets is maintained by the Charity’s continued programme of property maintenance and improvements; consequently, any element of depreciation would, in the opinion of the Trustees, be immaterial. Furthermore, the Trustees carry out an annual impairment review.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

The Homes (freehold land and buildings) are usually revalued every five years with any surplus or loss arising on revaluation being accounted for in the year of valuation as an unrealised gain or loss. A valuation was made in 2009 consequently a revaluation of the Homes was due at 31 March 2014. However, by virtue of the fact that work had begun on a multi-million pound development scheme for extending and remodelling Trepassey Residential Home, the Trustees decided to defer a revaluation of the Homes until the development of Trepassey Residential Home had been completed and then revert to five yearly intervals. The work in extending and remodelling Trepassey was completed in August 2019 as a result the freehold land and buildings have been professional valued at 31 March 2020 and remains unchanged at 31 March 2021.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date , using the closing quoted market price . Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

The Charity does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the Charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk and changes in sentiment concerning equities and other investments.

1.8 Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity 's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity ’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

2 Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

UnrestrictedUnrestricted UnrestrictedUnrestricted UnrestrictedUnrestricted
funds funds
2021 2020
£ £
Donations and gifts 3,766 3,465
Charitable activities
Sandiway Trepassey Upton Total Sandiway Trepassey Upton Total
Manor Grange Manor Grange
2021 2021 2021 2021 2020 2020 2020 2020
£ £ £ £ £ £ £ £
Residential
care 1,075,160 1,346,744 782,466 3,204,370 1,074,729 804,725 1,000,681 2,880,135

4 Charitable activities

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

5 Investments

UnrestrictedUnrestricted
Restricted
funds
funds
funds
2021
2020
2020
£
£
£
Income from listed investments
15,264
20,772
1,337
Interest receivable
119
663
1,391
15,383
21,435
2,728		 Total
2020
£
22,109
2,054
24,163

6 Other income

Unrestricted
funds
2021
£
Coronavirus grants
188,632
Sundry income
836
189,468		 Total
2020
£
-
-
-

7 Raising funds

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Investment management 3,869 3,863
3,869 3,863

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

8 Charitable activities

Staff costs
Depreciation and
impairment
Agency fees
Catering and
housekeeping
Rates and insurance
Heat and light
Maintenance
Legal and professional
fees
ICT leasing and support
Bad and doubtful debts
Other expenditure
Share of support costs
(see note 9)
Share of governance costs
(see note 9)
Analysis by fund
Unrestricted funds
Restricted funds		 Sandiway
Manor
Trepassey
2021
2021
£
£
677,684
802,478
3,528
12,240
89,560
87,781
84,718
78,543
14,360
23,598
28,083
52,940
23,440
24,174
1,800
-
10,111
12,506
-
-
46,286
62,628
979,570
1,156,888
-
-
-
-
979,570
1,156,888
979,570
1,156,888
-
-		 Upton
Grange
2021
£
554,204
4,140
14,471
64,305
7,508
22,681
23,063
1,288
11,127
-
35,727
738,514
-
-
738,514
738,514
-		 Trustees
2021
£
-
3,348
-
-
30,765
-
-
-
28,636
-
-
62,749
163,799
54,646
281,194
281,194
-		 Total
2021
£
2,034,366
23,256
191,812
227,566
76,231
103,704
70,677
3,088
62,380
-
144,641
2,937,721
163,799
54,646
3,156,166
3,156,166
-		 Total
2020
£
1,744,917
24,303
135,813
176,640
84,706
97,333
111,372
1,990
29,634
1,125
140,987
2,548,820
147,394
23,088
2,719,302
2,705,426
13,876

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

8 Charitable activities

(Continued)

For the period ended 31 March 2020

Staff costs
Depreciation and impairment
Agency fees
Catering and housekeeping
Rates and insurance
Heat and light
Maintenance
Legal and professional fees
ICT leasing and support
Bad and doubtful debts
Other expenditure
Share of support costs (see note 9)
Share of governance costs (see note 9)
Analysis by fund
Unrestricted funds
Restricted funds		 Sandiway
Manor
Trepassey
£
£
620,433
573,311
3,528
12,228
55,802
22,440
67,686
56,089
17,184
21,946
32,206
44,226
35,324
30,539
860
-
6,164
5,644
-
1,125
41,360
41,025
880,547
808,573
-
-
-
-
880,547
808,573
880,547
794,697
-
13,876
880,547
808,573		 Upton
Grange
£
551,173
4,136
57,571
52,865
6,728
20,901
45,509
1,130
5,578
-
39,120
784,711
-
-
784,711
784,711
-
784,711		 Trustees
£
-
4,411
-
-
38,848
-
-
-
12,248
-
19,482
74,989
147,394
23,088
245,471
245,471
-
245,471		 Total
2020
£
1,744,917
24,303
135,813
176,640
84,706
97,333
111,372
1,990
29,634
1,125
140,987
2,548,820
147,394
23,088
2,719,302
2,705,426
13,876
2,719,302

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

9 Support costs

Staff costs
Other costs
Legal and professional
fees
Audit fees
Trustees indemnity
insurance
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
124,648
48,362
7,491
-
31,660
-
-
5,104
-
1,180
163,799
54,646
163,799
54,646		 2021
£
173,010
7,491
31,660
5,104
1,180
218,445
218,445		 Support
costs
Governance
costs
£
£
132,080
19,342
1,968
-
13,346
-
-
2,850
-
896
147,394
23,088
147,394
23,088		 2020
£
151,422
1,968
13,346
2,850
896
170,482
170,482

Governance costs includes payments to the auditors of £ 3,000 (2020- £ 2,850 ) for audit fees and £2,104 (2020: £nil) for non-audit fees.

10 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the period.

11 Employees

The average monthly number of employees during the period was:

Provision of care and ancillary services
Management and administration
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
117
6
123
2021
£
2,023,491
138,196
45,689
2,207,376		 2020
Number
89
5
94
2020
£
1,726,692
129,291
40,356
1,896,339

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

11 Employees

(Continued)

The Trustees all give freely their time and expertise without any form of remuneration or other benefits in kind (2020 £nil).

The Charity’s key management personnel now comprise the Trustees and the Chief Executive Officer. The Chief Executive Officer is supported by the Home Managers and the Administration Manager, who is also the Nominated Individual for CQC purposes. The total employment benefits of the Chief Executive Officer, including employer pension contributions, was £49,699 (2020 - £41,099).

There were no employees whose annual remuneration was £60,000 or more.

12 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Gain/(loss) on sale of investments 125,556 (72,639)
Revaluation of fixed assets
Total Endowment
funds
general
2021 2020
£ £
Loss on revaluation of tangible fixed assets - (6,611,526)

13 Revaluation of fixed assets

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

14
Tangible fixed assets
Freehold land
and buildings
£
Cost or valuation
At 1 April 2020
5,689,000
Additions
-
At 31 March 2021
5,689,000
Depreciation and impairment
At 1 April 2020
-
Depreciation charged in the period
-
At 31 March 2021
-
Carrying amount
At 31 March 2021
5,689,000
At 31 March 2020
5,689,000		 Plant and
equipment
Motor vehicles
£
£
408,152
11,628
15,906
-
424,058
11,628
62,055
9,046
22,608
648
84,663
9,694
339,395
1,934
346,096
2,582		 Total
£
6,108,780
15,906
6,124,686
71,101
23,256
94,357
6,030,329
6,037,678

The freehold land and buildings Sandiway Manor, Trepassey and Upton Grange were valued at 31 March 2020 by Allied Surveyors, Chester, on an open market value basis in accordance with the guidelines issued by the Royal Institute of Chartered Surveyors. At 31 March 2020 the freehold land and buildings were valued at £5,689,000. At 31 March 2020 the historical cost of the properties was £10,824,895. The valuations at 31 March 2020 reflect improvements made to the properties over a period of time, but they do not take into account the cost of such improvements or the unique nature of the buildings, in particular the building at Trepassey which, in recent years, has been extensively extended and remodelled. Instead, the valuations are based upon the likely value of the properties assuming that the Homes are fully trading operational entities, but within the private sector, rather than the voluntary sector.

The Trustees consider that the value of the freehold properties as at 31 March 2021 have not changed materially since 31st March 2020.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

15 Fixed asset investments

Cost or valuation
At 1 April 2020
Additions
Valuation changes
Disposals
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020
Investments at fair value comprise:
COIF Charities Investment Fund
UK and overseas equities and specialist funds
Fixed interest securities		 Listed
investments
£
527,046
156,503
125,556
(148,267)
660,838
660,838
527,046
2021
2020
£
£
71,699
59,426
482,926
377,937
106,213
89,683
660,838
527,046

All investments are carried at their fair value. Investments in equities, specialist and multi-asset funds and fixed interest securities are all quoted in public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at bid price. The basis of fair value for quoted investments is equivalent to market value, using the bid price. Asset sales and purchases are recognised at the date of trade at their transaction value.

The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in the financial review and investment policy and performance sections of the Trustees’ Annual Report.

Historic cost of investments is £495,454 (2020: £475,600).

16 Debtors

Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 2021
£
65,505
259,232
4,414
329,151		 2020
£
52,604
267,622
1,940
322,166

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

16 Debtors

(Continued)

Other debtors include £223,466 (2020 - £223,466) due from The Jardine Charitable Trust Fund, in respect of a transfer in relation to compensation payable to Trepassey for the consequential loss arising as a result of the unavailability of a number of bedrooms in preparation for and during work in extending and remodelling that Home.

17 Current asset investments

Short term deposits
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
272,089
2021
£
-
37,142
370,717
90,014
497,873		 2020
£
322,497
2020
£
6,864
48,390
381,177
87,526
523,957

18 Creditors: amounts falling due within one year

Other creditors includes Trepassey – compensation for loss of income representing £223,466 (2020: £223,466) an amount payable to Trepassey by The Jardine Charitable Trust Fund, in respect of a transfer in relation to compensation for the consequential loss arising as a result of the unavailability of a number of bedrooms in preparation for and during work in extending and remodelling the Home.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 31 MARCH 2021

19 Endowment funds

Endowment funds represent assets which must be held permanently by the Charity. Income arising on the endowment funds can be used in accordance with the objects of the Charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.

Balance at
1 April 2019
£
Permanent endowments
Freehold land
and buildings
11,259,679
11,259,679		 Incoming
resources
£
-
-		 Movement in funds
Resources
expended
Transfers
£
£
-
1,040,847
-
1,040,847		 Revaluations
gains and
losses
£
(6,611,526)
(6,611,526)		 Balance at
1 April 2020
£
5,689,000
5,689,000		 Incoming
resources
£
-
-		 Movement in funds
Resources
expended
Transfers
£
£
-
-
-
-		 Revaluations
gains and
losses
Balance at
31 March 2021
£
£
-
5,689,000
-
5,689,000

The Permanent Endowment Fund represents the value of the freehold land and buildings, which are considered to be functional assets to be held by the Charity in perpetuity.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

20 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement Movement
in funds in funds
Incom e Balance at Incom e
Balance at
1 April 2020 31 March 2021
£ £
£
£
Lady Becke Fund - 1,932
-
1,932

The Lady Becke Fund relates to monies donated in memory of the late Lady Becke to provide nursing care to residents of the Homes, should the need arise. The Jardine Charitable Trust Fund, which was created under the Will of Mr D J Jardine Deceased, was specifically for the purpose of improving and/or developing the facilities of Trepassey Care Home, Heswall, Wirral, being one of the three Homes owned by the Charity.

21 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement Movement
in funds in funds
Balance at Incoming Balance at Incoming
Balance at
1 April 2019 resources 1 April 2020 resources
31 March 2021
£
£		 £
£
£
Maintenance reserve 22,641
-		 22,641
-
22,641
22,641
-		 22,641
-
22,641

The maintenance fund represents funds set aside to meet the cost of future repairs to buildings at the three Homes. There were no movements during the year.

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 31 MARCH 2021

22
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
Endowment
funds
2021
2021
2021
£
£
£
Fund balances at 31 March 2021 are represented
by:
Tangible assets
341,329
-
5,689,000
Investments
660,838
-
-
Current assets/(liabilities)
1,029,221
1,932
-
2,031,388
1,932
5,689,000		 TotalUnrestricted
funds
2021
2020
£
£
6,030,329
348,678
660,838
527,046
1,031,153
777,156
7,722,320
1,652,880		 Restricted
funds
Endowment
funds
2020
2020
£
£
-
5,689,000
-
-
1,932
-
1,932
5,689,000		 Total
2020
£
6,037,678
527,046
779,088
7,343,812

CHESHIRE RESIDENTIAL HOMES TRUST AND LINKED CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2021

23 Operating lease commitments

At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
24
Capital commitments
At 31 March 2021 the Charity had capital commitments as follows:
Contracted for but not provided in the financial statements:
Acquisition of property, plant and equipment		 2021
£
15,331
10,553
25,884
2021
£
36,150		 2020
£
8,690
44,152
52,842
2020
£
-

25 Related party transactions

The Trustees all give freely their time and expertise without any form of remuneration or other benefits in cash or in kind.

Trustees’ travelling and out-of-pocket expenses reimbursed during 2021 amounted to £Nil (2020 – Nil).

During the year the Trustees made a payment of £525 (2020 - £525) to Mrs C L Reeves, a member of the Board of Trustees, in respect of secretarial services; this payment was made on normal commercial terms.

26
Cash generated from operations
2021
£
Net incoming resouces
378,508
Adjustments for:
Investment income recognised in statement of financial activities
(15,383)
(Gain)/loss on disposal of investments
(125,556)
Depreciation and impairment of tangible fixed assets
23,256
Movements in working capital:
(Increase) in debtors
(6,985)
(Decrease) in creditors
(26,085)
Cash generated from operations
227,755		 2020
£
111,959
(24,163)
72,639
24,303
(14,260)
(63,047)
107,431