brunelcare Atntnuall Repo￿t and Financial Statements For the year ending 31 March 2024 20 24 •AtK6AR4Z' A31 COMP*NIES bK)LEE St3tÉl-_ TrLlS1.tses 'JA IILk' e.-"c--T4.k i-: Indooc.nLlnol S-a-.erpe-I". •rn.Tl--,C1C"- S-d-en-ei-. w?sili- brunelcare.org.uk 01 CHAIR AND CHIEF EXECUTIVE'S INTRODUCTORY STATEMENT We are proud to present this overview of 2023-24, which was very much a year of two parts, with the start a time of contlnued pressures and hardship as a result of rising energy costs and the latter part a period of greater optimism and improvement. with our customers across all our sites and services to modernise and transform our services. Building on the learning from our Residents First Group. we have established a similar group for those who access our care services and look forward to working with both groups in the year ahead. The increase in energy prices over the last two years has been a big challenge for us all. Last year. Brunelcare applied for the higher.rate of the Energy Bills Discount Scheme (EBDS) related to heat networks on behalf of our residents. We found out in late 2023 that our application was successful. This discount has now been passed on directly to our customers. Brunelcare's most recent strategic plan, 'Brunelcare.' Our Future, ends in 2024. It was devised during COVID-19 and reflected the crisis caused by the pandemic. The external and internal environments are now very different, and so during the year we took the opportunity to reflect on the impact and outcomes of that strategy in order to inform a new, more progressive one. Our new Strategic Plan is ambitious and set over the next six years to allow for significant investment in our existing homes and a step change in how we deliver services so that they better reflect the changing needs and expectations of our customers and meaningful engagement in our governance. Meeting the needs of our customers within the homes they live in and providing quality care and SUPF)Ort is our key priority, therefore customer engagement and feedback is a fundamental strand running through the Strategy. Our Residents First Group has provided us with invaluable insight on what's most important to them in respect of our approach and the services we provide. We are committed to working even more collaboratively To help improve the efficiency and effectiveness of the services, we continued to push ahead with an ambitious programme of IT and digital transformation. The continued development of our new housing management system has been a significant piece of work which will assist in improving the services we provide to our housing and extra care housing residents. We endeavour to provide excellent homes and services to our customers while maintaining a good position financially. We ended the financial year in a sustainable financial position and this has enabled us to move forward in relation to our plans for developing and updating our sites. This is an exciting step and we will move forward with the full involvement and engagement of our customers. Annual Report and Financial Statements 2023-24 We are extremely proud of our colleagues who work tirelessly to deliver and improve our homes and services. We know that there is much more to do, but would like to thank them for their continued commitment and support. Finally. we would like to welcome Carol Slater to the Board. Carol joined us in July 2024 and will be a real asset to the team, bringing a wealth of experience in public health and community engagement. Oona Goldsworthy Chief Executive Graham Russell Chair brunelcare.or9.uk 02 ABOUT THIS ANNUAL REPORT What information will you find in our annual report Our Annual Report provides information about how we performed in 2023-24. describes what we will do during the next 12 months to further improve the services we provide and explains how important it is for us to work with and listen to our customers. clients and commissioners so that we can continue to deliver services that meet their need This Annual Report comprises: A Performance Overview A report from the Board of Trustees that includes disclosures requi red by appropriate legislation and regulation A section on the structure, governance and management of Brunelcare Legislative and regulatory disclosures A statement of the responsibilities of Trustees An independent auditor's report The Financial Statements Annual Rew)rt and Financial Statements 2023-24 PERFORMANCE OVERVIEW A summary of how we performed against the key performance measures Set by the Board and the Regulator for Social Housing can be found below. The Regulator for Social Housing introduced tenant satisfaction measures (fsmsl in April 2023 as a metric by which to assess the performance of social landlords in providing quality homes and services. There are 22 tenant satisfaction measures and 12 of these are measured through tenant perception Surve￿ (please see below}. A further10 are measured through the collection and anaI￿lS of management information {see page 8). The Tenant satisfaction measures (fsm's) allow us to monitor and benchmark our performance against our peers as the information is published by Housemark. Where measure5 do not meet our targets, we will f¢XUS resources to improve performance in 2024-25. TENANT SATISFACTION MEASURES RESULthT TENANTS SATISFIED) Taking everything into account, how satisfied or dissatisfied are you with the service provided by Brunelcare? 83.0 How satisfied or dissatisfied are you with the overall repairs service from Brunelcare over the last 12 months? 85.1 How satisfied or dissatisfied are you with the time taken to complete your most recent repair after you reported it? 84.4 How satisfied or dissatisfied are you that Brunelcare provides a home that is well maintained? 86.7 Thinking about the condition of the property or building you live in, how satisfied or dissatisfied are you that Brunelcare provides a home that is safe? 87.2 brune1ca￿.org.uk TENANT SATISFACTION MEASURES RESULT TENANTS SATISFIED) How satisfied or dissatisfied are you that Brunelcare listens to your views and acts upon them? 67.6 How satisfied or dissatisfied are you that Brunelcare keeps you informed about things that matter toyou? 79.6 To what extent do you agree or disa9ree with the following "Brunelcare treats me fairly and with respectll? 81.4 How satisfied or dissatisfied are you with Brunelcare's approach to complaints handling. 52.1 How satisfied or dissatisfied are you that Brunelcare keeps communal areas clean and well maintained? 83.0 How satisfied or dissatisfied are you that Brunelcare makes a positive contribution to your neighbourhood? 64.6 How satisfied or dissatisfied are you with Brunelcare's approach to handling anti- %)ciaS behaviour? 63.6 more information results follow website -LJrioln.are.org.uk/about-Us/report.s-public-￿t.1orn9l ,er-sat.'sf3=. or Annual Rewrt and Financial Statements 2023-24 Aim: A Place to Call Home The performance measures that link in with the Tenant Satisfaction Measures are highlighted in blue. 2023.24 TARGEr Q4 2023-24 PERFORMANCE Average Let Times for ECH Properties 28 days 18 days Average Let Times for Housing Propertles 21 days 23 days Asbestos Management Surveys/Re-inspections 1000 io0% Electrical Fixed Wire Testing (Domestic) 97.5% Electrical Fixed Wire Testing (Communal) io0% 92.9% Flre Risk Assessments 1000 Gas Safety Checks io0% io0% Legionella Risk Assessments 1000 io0% Lift Safety Checks io0% IOOQ/o brunelcare.org.uk Carbon Monoxide Alarms (% in Place and Maintained) io0% io0% % of Responsive Repairs Completed First fime 85% 88% Care Home Occupancy 950 95.5% Proportion of Homes That Do Not Meet the Decent Homes Standard Proportion of Non- Emergency Responsive Repairs Completed within the Landlord's Target Timescale 90.5% Proportion of Emergency Responsive Repairs Completed within the Landlord's Target Timescale Annual Report and Financial Statements 2023-24 Aim: The Right Care and Support 2023-24 TARGEr Q4 2023-24 PERFORMANCE Outcome of CQC Inspections (% Good) io0% Employee Sickness Rates (for the 12 months preceding April 2024) 4.5% 5.36% Employee Retention Levels (for the 12 months preceding April 2024) >85% 83.7% Aim: A Good Quality of Life in the Community 2023.24 TARGEr Q4 2023-24 PERFORMANCE Complaints Raised to Stage 2 Complaints Raised to Stage 2 (% of Complaints) Stage I Complaints Acknowledged Within 3 Working Days % 96% 10 brunelcare.org.uk Proportion of Stage I complaints responded to within the Housing Ombudsman's Complaint Handling Code timescales. IOOYO Stage I Complaints Responded to Within 10 Working Days % io0% 76% Stage 2 Complaints Responded to Within 20 Working Days % io0% 54.60 Number of Stage I Complaints per 1000 Housing Units (Whole of 2023-24) 50 No target agreed Number of Stage 2 Complaints per 1000 Housing Units (Whole of 2023-24) No target agreed Number of ASB Cases Opened 40 Number of ASB Cases Closed as Resolved as % of Cases Opened Number of ASB Cases per 1000 Housing Units (Whole of 2023-24) No target agreed 86.1 Number of ASB Ca5e5 that Involve Hate Incidents per 1000 Housing Units (Whole of 2023-24) No target agreed We have detailed how we are acting on each of these measures throughout the rest of the report. Annual Report and Financial Statements 2023-24 ii TRUSTEES REPORT How we are funded BRUNELCARE WAS EST. IN Our principal sources of funding are the monies we receive from our social housing and extra care housing rents, shared ownership schemes and care fees from the Local Authorities we partner with through long-term block contracts or spot placements, and fvom individuals who fund their own care. 1941 Established in 1941. Brunelcare is a Bristol-based charity providing high quality housingi care and support for later living in the South West. As a charity. we are focused on investing anysurplus back into making us a quality provider and great employer. Most of our expenditure is either for the direct provision of care Imainly staff costs) followed by the provision of suitable home environments (such as repairs and maintenance costs) plus funding of the relevant support services {for example, recruitment and training). How our activities deliver public benefit Brunelcare offers a complete care and support pathway in our communities, starting in residents. own homes, right through to our care homes. This means we can offer the best choices for later living, which fit with what residents want or need. We have nearlyl,000 sheltered homes across 31 sites, with three extra care housing schemes and a retirement village, all withi n the greater Bristol area. Care is provided in people's own homes, in six specialist care homes and one reablement facility across Bristol. South Gloucestershire and Somerset. Brunelcare works to support over 2.000 people to remain as independent as possible, in their communities. for as long as possible. To deliver all of its vital seNices, Brunelcare employs a dedicated team of over 1.100 people. brunelcare.org.uk vi,sion, strat.eg i,s'sion objectives SiioLrglC 'Brunelcare- Future'_,, ambit.ious exI51*ino ref lec-t changing enoaqomenl St,iategic . approved allovi, signifi- deliver services c-usforner,s c-hange ,axoect.at.ions ve Det.ter meaninoiul arovide governarncc ',3runeic-are's mission, vision. vaiuas Measures developed c.onsu I I,a i.ion Oulcome Measurp. heloed si.raiegy aligned Cusiomers preparino .Inder.<[.a• ',Tai.rer5 Ouicomo st.rategy, CUSiomer< ission.: 110mont Out.comes: secure long-term stability financially comfortable "ielc.are comfortable Q&ceivin J independent -eél healthier happier respected -rceiiJp. cr.InoJ. e lee roassurer1 support- assistance '..qJ -.ruieli3re welcome omTLlfilt.k' OLtcomes- latest r=ustomor,:; survey resulis sJmmarised_ Annual Report and Financial Statements 2023-24 Aofrds L.rateg c OL,tc-omes desig,'ied CJs-.orriei_ IVhet.ie', -ielpips everyone shoulc Riight Support.: hieiiing ev@ryL.hing we chr.nge -Storyc'r> iiolli. and pa rr.iie'.s Jnderst.andinc per.soi s colleagues ant,Icipat.Ing iie Qualitiy Communitly: CI.SL?'7)e",s ¢chieL'e momenr whei.ner making conneci.ions, CUsiomer.s I,Wrive aogsible qualit&, i.hrouoh scrvices comm Ll rijt,v. dirert,Iv ioieoirs S=..rateg5' St,r￿Leg! St,ratogic Object.Ives Arnnual 8usine£s responsibiliL.y delivers. monilo'ed relaied Ip,iegra-,od Porformance scrut.inising 3c.tr.ions L.a rc et.s . Qe-_-eic ommit.tee performance IndicatClS new Strategy 2024-25 . follow Annual Business . or9 Lik,.'ab brunelcare.org.uk Equity, Equality, Diversity and Inclusion Together with Customers Charter The importance we place on improving our services led to the development of 'Together with Customers Charter,. In 2022, Brunelcare Set out to develop strategy to drive equity, equality. diversity, and inclusion IEEDII. The EEDI strategy is for all colleagues. customers, tenants and residents across the charity and ensures Brunelcare is an inclusive place to live and work. Together withcustomers Our EEDI vision is simple, we will- Be a fair and inclusive employer. landlord and care provider. As reported last year. influenced by the National Housing Federation's work on 'Together with Tenants,, in 2021- 22 we undertook a major customer engagement initiative which we called 'Together with Customers, and it included a full customer satisfaction survey. events and focus groups, which culminated in the creation of a 'Together with Customers Charter,. Put our residents, needs first and understand that their needs are varied and different. c. To meet those needs. we will truly listen to residents, feedback and consider how our work impacts them. d. Create a working environment that is inclusive and free from discrimination or harassment. The Charter was developed with customers and reflects what matters most to them. It aims to embed a culture that values the voice and experience of customers and strengthens the relationship Brunelcare has with them. The Charter contains six commitments. They are: Relationships- Our relationships with our customers will be based on openness. honesty and transparency. Communication - Customers will receive clear, accessible and timely communication on the issues that matter to them, including information about where they live, how the Charity 15 run and how we are improving our services. Voice and influence - We will seek and value the views of customers and we will use this information to inform the decisions we make. Every customer will feel listened to on the issues that matter to them. •. Embed good EEDI practice across the organisation, recognising the importance of ensuring development and action{sl are cross-cutting. Brunelcare colleagues and residents contributed to the EEDI strategy with help from internal staff groups such as The Brunelcare Equality Forum and the Colleague Voice Committee. Click here for our EEDI Strategy or follow the link below: www.brunelcare.org.uk/about-us/ reports-publicationslequality-and- diversity-strategyl Annual Report.and Financial Statements 2023-24 15 Accountability- Customers will work in partnership with Brunelcare to scrutinise and hold us to account for the decisions we make that affect the quality of the services they receive. Quality - Customers can expect the services they receive to be good quality, safe and well managed. Services will be delivered in a person- centred way. and customers will always be treated with respect. When things go wrong - Brunelcare recognises that things can go wrong. When they do, our customers can expect a simple and accessible way to raise any issues they have and will receive timely advice and support to resolve them. possible. The Group is working closely with Brunelcare to analyse the results of the survey and develop the actions the Charity will take as a result. Q Communication= concerns raised by the Group have led to direct changes within Brunelcare, including a clearer glossary of terms being provided with service charge letters to residents and changes to the format of resident site meetings to offer resident'surgeries. to address specific individual issues. Along with Brunelcare's Head of Communications and Engagement. Group member Janet Cruickshank attended the National Housing Federation's Customer Engagement Conference in February 2024. Janet of Cote Paddock said.. Residents First Group "It was a great experience to go to an event like this, and meet people working at all levels within the housing sector. and hear how they are focused on every aspect of helping their resident&" A Residents First Group, which was first established in early 2023, has continued to develop and is playing an important role in shaping the services Brunelcare provides and its relationship with residents. Over the course of the last year. the group has met regularly and covered a range of topics including ongoing concerns around communication, understanding service charges and the Charity's Lettings and Allocations Policy. The Group has made key contributions in the following areas- Strategic Plan: the Group was engaged at every stage of developing Brunelcare's new Strategic Plan for 2024 to 2030. Its emphasis on the importance of community and customer service is reflected in the final Strategy. O Customer Satisfaction Survey. members took part in a focus group to ensure this year's survey was as clear. accessible and relevant as The work of the Group is being shared with residents more widely through the Grapevine magazine and in site meetings. The Residents First Group is comprised of people living on our sheltered and extra care housing sites. It is crucial that people Brunelcare supports in its care services also have the OPF)ortunity to influence and shape our work. We are establishing a new care-focussed reference group. comprised of both care customers and relatives. to ensure their voice is also heard. 16 brunelcare.org.uk Brunelcare commissioned a new external provider- ARP Research - to conduct our Customer Satisfaction Survey for 2024. The survey was available to all customers across Brunelcare's services, and could be completed as a paper questionnaire or online. In total, we received more than 800 individual responses. which was a 45% response rate. Tenant Satisfaction Measures Suggestions for improvements Quality and responsiveness of care The proportion of respondents who said they were satisfied Brunelcare makes a positive contribution to their neighbourhood fell to 87% 99% feel that their home is safe c.ommunii.y satisfied recoivcd maint.ained ti4fart.ion with the approach to handling antisocial behaviour dropped to 95% 85% in care homes were satisfied with the level of involvement in deciding their care and support needs are satisfied with Brunelcare's repair service 94% enjoyed activities in our care homes, including entertainment and outings over Lhe last 12 months Annual Report and Financial Statements 2023-24 17 Satisfaction over time Suggestions for improvement Since 2021122 the overall satisfaction has remained stable at The most commonly requested single improvement amongst tenants is more availability of on-site staff Compared to 2021/22 there has been significant improvements in customers,: PEACE OF MIND of all survey respondents 130 individuals). When housing customers were asked how communication should be improved, the joint most commonly mentioned change is for Brunelcare to I HEALTH AND HAPPINESS answer the phone when they call fewer residents now feel proud of their home of all survey respondents 127 individuals) thought this. and fewer residents now feel financlally comfortable report Satisfaction Customer or follow Survey runelcare org.uk/about,-usi ragoris-publicat.iorns/customer- sat.i5fact.ion-su rveyl 18 brunelcare.org.uk Our Customers said and we did Feedback from our customers is vital to help improve our services, maintain their homes and support them better. Here are some recent examples of issues raised by residents at Quarterly Site Meetings and how we have responded to them... THEY SAID The residents at Spinney Croft requested that additional signage be placed at the entrance to the site to reinforce the speed limit whilst driving on site. WE DID THEY SAID New signage was placed on the front gates of the site on 21 November 2023. THEY SAID The residents at St Michael's Close advised us that they were unsure how to work their new heaters and told us that the large instruction manual they were given was not user-friendly. WE DID Improvements needed to be made in relation to site cleaning. WE DID Our Asset Manager, Elly Weale. together with Chris Verrinder from Dimple attended a coffee morning with the residents in January to chat with them about their concerns and help them understand how to use the new storage heaters. We ended the previous cleaning contract in January2024 and are trialling a new contractor called 'Supreme Cleaning,. Complaints, Concerns and Compliments Brunelcare considers all feedback to be a gift as it drives continuous improvement; this includes comments. concerns, complaints and compliments. Without feedback from our customers. we have fewer opportunities to develop as an organisation and as individuals. Our Complaints Officer oversees the complaints process and ensures that complaints and concerns are reviewed. resolved and learnt from. The Board's Performance. Quality and Experience Committee reviews trends, compliance with key performance measures and our Managing Comments. Concerns, Complaints and Compliments Policy on quarterly basis. Between l April 2023 and 31 March 2024. 79 Stage I complaints were received. Brunelcare's Policy states that complaints will be acknowledged within 3 working days of receipt. Of the 79 Stage I complaints received, 77197%) were acknowledged within 3 working days. THEY SAID The residents at Garden Close requested that cctv be installed following a recent break-in at the site. WE DID Following consultation with all residents. the CCTV was installed and has been aciive since 22 January 2024. THEY SAID The residents at Willow Bank requested that additional signage be installed around the site's entrance, following concerns that delivery drivers couldn't easily see the current sign WE DID The marketing team designed two new signs, which local company Rockwell Signs installed on 9 January 2024. Annual Report and Financial Statements 2023-24 19 Our Policy also states that we will aim to investigate and respond to complaints within 10 working days of the complaint being received. Of the 79 Stage I complaints received, 63180%} were responded to within 10 working days. This was a deadline that colleagues found difficult to meet due to a range of issues. including: The complexities of the complaint leading to more time required to fully investigate. Feedback being required from a number of individuals in order to fully investigate the complaint. Annual leave/bank holiday requiring an extension to complete the complaint investigation. Our Complaints Officer continues to work with colleagues to support improved compliance with response deadlines. Where we are unable to meet deadlines. the Complaints Officer will ensure that the complainant is kept up to date with progress and an extension is agreed with the complainant. where F)ossible. Of the 79 stage I complaints received: lJiJe re resolved S"trage escalated escalated relevant Ombudsman ntllnue t rk t further ve the and i•) compliments recor reportlln lliments. about the services provided by Brunelcare and its employees were received and recorded centrally within the year. Further information on our complaints process and how complaints were managed in 2023-24 can be found here: www.bruneleare.org.uk/contact-us/make-a-complaint/ brunelcare.org.uk THE QUALITY OF OUR CARE SERVICES Delivering care that is person-centred and focused on ensuring a positive experience for our clients and their frdmilies is always our main focus and priority. Our care homes, extra care homes and community domiciliary services are regulated by the Care Quality Commission ICQCI. They assess whether services are providing care that is safe, caring, effective, responsive to people's needs and well-led. The CQC monitors, assesses arid rates care services with four ratings available: Outstanding. Good; Requires Improvement: and. Inadequate. As at 31 March 2024, all our care homes. reablement. community and extra care housing *rvices had achieved ratings of good or above (see table l and 2 below} for full details of the outcome of CQC inspections - links to inspection reports are available on our website. Table I: CQC rating for Care Homes and Reablement Centres Ratings for KeyAreas Care Home Took plau on Publish•d Rating Caring W•ll l•d Deerhurst 9Feb 2022 17 March 2022 Outstand ing Glastonbury 18 Dec 2018 17 Jan 2019 Orchard Grove 6Nov 2020 28 Nov 2020 Robinson House 21 Jan 2020 14 Feb 2020 Saffron Garden5 16June 2022 30 July 2022 Little Heath Care & Support 9Feb 2023 8 March 2023 Little Heath Reablement 11 Jan 2023 14 Feb 2023 Annual Report and Financial Statements 2023-24 21 The CQC has adopted a new Single Assessment Framework for the monitoring and inspection of care services. This framework primarily uses a range of information and intelligence gathering methods such as feedback from service users and families. submission of notifiable events received from the provider. external healthcare professional feedback. Key Lines of Enquiry IKLOES) have been replaced with quality statements. still based upon the five areas of Safe, Effective, Responsive, Caring and Well Led. These statements are termed 'We statements, and detail what providers will do in line with the regulator's standards. Table 2: CQC ratings for Extra Care Housing Extra Care Housing place (bn Pubti5hed on Rating Well led ABC Centre Z7 Feb 2020 29 May 2020 Colliers Gardens 21 Nov 2019 19 Dec 2019 Waverlèy Gardens 2018 IOlanuary2019 Table 3. CQC ratings for domiciliary services Details Ratirbgs for Key Areas Communlty se￿Ie•s Took pla¢0 on Overnll Ratlng Publish•d on Caring Wdl led Brunelcare Oomiciliary Services- Bristol and South Glos 24 Nov 2020 18 Dec 2020 Brunelcare Domiciliary Services: Somerset l April 2022 23April 2022 22 brunelcare.org.uk Quality Clinical Care We continue to provide high quality nursing care and support in our care homes. These standards are monitored by the Centre Care Support Team led by the Director of Nursing and Care. End of Life Care within our care homes is externally accredited by the Gold Standards Framework, ensuring excellence in this area. Our reablement services provided at our Orchard Grove Centre, out in the community in South Gloucestershire and by our D2A team in Somerset have an excellent reputation for achieving positive outcomes for the people accessing these services. All three services are quoted as exemplars of good practice by commissioning partner& Dementla Car• - a Human Rights-based approach We continue to roll out Focused Interventions Training and Support (FITS) as our dementia standard. This university accredited programme ensures that there is a consistent person centred approach to all that we do. We have Dementia Coaches based in all of our care homes and in our Community Services teams. This enables'on the floor. day to day modelling of best practice in dementia care and has less of a classroom based approach to training of teams. Community Care and Extra Care Housing Our community services based in Somerset and South Gloucestershire work effectively with our colleagues in Health and Adult Social Care in order to maintain people's independence at home. This is a challenging marketplace with many new providers coming into both areas. We have fostered good l inks with our colleagues in commissioning in both local authorities, and we are cited as the'provider of choice.. Our three Extra Care Housing schemes continue to work closely with Bristol City Council and are on the single framework. We continue to work with our external partners to ensure we can provide a home for life and can adapt to the ever- changing needs of the individuals to support and encourage them to remain independent in their own homes. Annual Report and Financial Statements 202>24 OUR HOUSING HOMES AND SERVICES Developing a new Housing Management System for property and compliance management Completing detailed development appraisal on sites to achieve EPC C by 2030 & Progressing the {SHDF} Wave 2.1 project, appointing a project manager, completing a tender exercise, advanced tenant involvement We want all of Brunelcare's customers to feel proud of their homes and where they live. but we know this is not always the case. A number of our homes are in need of investment to bring them up to a more energy efficient standard, and local environments also need improvement. Our homes are ageing with changing demographics and expectations which, combined with the results from a stock condition survey. point to a need for significant investment. remodelling or in some cases, disposal. Brunelcare's sset Management Strategy IAMSI 2020-2025, recognises and responds to th is. It is a critical business tool that aligns Brunelcare's property assets with business needs. It is a key strand of the strategic golden thread that links the Board's Strategic Plan to the delivery of improved outcomes for our tenants and clients, and it is SUPFX)rted by the 30-year Business Plan. During 2024-25, we will draft a new Asset Management Strategy that will be launched in June 2025. 7. Applying for Community Resilience Funds through Bristol City Council in order to install sensor controlled LED lighting Achieving Board approval to install solar panels in partnership with Bristol Energy Cooperative across our Extra Care schemes and Care Homes In 2023-24 we also invested in a range of health and safety compliance works and checks" Health and Safety Compliance Works At the time of reporting. property health and safety compliance performance was.. Health and Safety Compliance Check . Percentage Completed Fixed Wire Testing - Domestic 97.5% I n 2023-24 we progressed the AMS Action Plan by. Continued investment in building safety and compliance works including fire safety within the budget, including fire door replacement and alarm upgrades 2. Providing financial investment and redevelopment data to inform the 30- year Long Term Finance Plan 3. Completing detailed investment plans and budgets for 2024-25 Fixed Wire Testing - Communal 92.9% Domestic Gas Services io0% Commercial Gas Services io0% Fire Risk Assessment io0% Lifting Operations and Lifting Equipment Regulations 1998 ILOLERI Checks io0% 24 brunelcare.org.uk Clirnate Change In 2024-25 we will invest in: We appointed an Energy Project Officer during the year, who leads on reducing energy usage and carbon emissions. Ensuring that our homes are low carbon and energy efficient is not only an objective within the'Asset Management Strategy.. but also a Government target for social housing providers through their 'Clean Growth Strategy,. By 2050 we have to achieve net zero for all of our homes. Wave 2.1 retrofit project at Chestnut Close & Maple Close Replacing kitchensthat have come to the end of their life, Electric heating, Fire detection systems, Fire door improvements and replacements, Fire compartmentation and breaks, Following a detailed application, Brunelcare was awarded a.2 million of Wave 2 Isocial Housing Decarbonisation Fund) funding. We have to spend this over a two-year period on improved insulation, space and water heating. Brunelcarewill match this funding with new windows and explore renewable energy across two of our sites. As we develop our approach to improved energy performance, we are much clearer on how we can achieve this. However, we also hope that we will be able to take advantage of future technoSogy and design changes. We will start to retrofit our poorest- performing properties with an Energy Performance Certificate IEPCI rating of D and below in 2024. Replacing windows, External decorations. Decent Homes Standard (DHS) During the life of the current Asset Management strategy. potentially 727 dwellings were forecast to fail the decent homes standard. Decent Homes failures affect all aspects of our properties: sheltered housing. ECH and Care Homes. While Care Homes are not governed by the DHS. a number of properties are in need of investment. A long-term strategic plan and budget are in place to resolve the nondecency in the most appropriate way. We ended the financial year with 46 nondecent components. These related to the age of front doors {401 and heating161. During 2024-25 we anticipate 188 non-decent components (including the 46 stated above). these are accredited to heating, kitchen and bathroom replacements and are in the planned works programme. We have approval for solar panels to be installed across five schemes: Robinson House, Glastonbury and Deerhurst care homes- 8EC has been appointed to progress the design and installation of solar PV arrays on the roofs with BEC funding 50% of the capital cost and Brunelcare contributing 50%. Waverley and Colliers Gardens- BEC funds IO0% of the installation. Residents benefit from energy at a reduced cost while BEC recovers its investment through charging for the energy produced. Annual Report and Financial Statements 2023-24 2S Tenant Involvement October 2022, as well as tenants being able to claim the £400 payment, removal of the government subsidy meant that tenants were facing another big hike from April. To avoid this, we were able to negotiate a new deal with our energy supplier EDF. whereby they spread the increa* over 18 months. so that tenants could benefit from the fall in energy prices. In addition to the work of the Residents First Group. referred to on page16 of this report. Brunelcare also encourages tenant involvement in decision-making by promoting mechanisms for their involvement. We employ a wide range of methods to communicate with our tenants. including: O The publication of an annual report focused on those things that matter to our residents O Suggestion boxes in all sheltered sites Q Site notice boards- including trialling the use of a 'digital noticeboard, at our Willow Bank site Improving Access to Information Technology To help our residents manage their tenancies, access advice and benefits, we have upgraded the Pcs on all of our sites. We have also renewed the IT infrastructure. such as the Wi-Fi, to ensure the reliability of access. Supporting Residents to Maintain their Tenancy O Quarterly site meetings and individual resident'surgeries. 6 Our twice-yearly Grapevine magazine Information on our website During the year we restructured and strengthened our housing team, so that we are able to support and work with vulnerable residents to maintain their tenancy and avoid the threat of eviction. Our Tenancy and Income Officers work with residents to address their individual circumstances through practical plans of action. as well as ensuring they are claiming any benefits they may be entitled to. All members of the housing team have received training in welfare benefits so that they can provide help and advice. O Repairs call back survey O Exit survey for departing tenants The sheltered housing sites. quarterly site meetings enable tenants to raise concerns and discuss ideas for their site. Brunelcare's'Together with Customers Charter, drives engagement with all customer groups, including through involvement in processes to select and evaluate new contractors. We have used focus groups to engage customers in a wide range of topics. from improving how Brunelcare communicates to reviewing key new policies. Energy bills Our Tenancy Officers are also able to work with residents to address matters such as Anti-social Behaviour and on-site conflicts. The financial pressures faced by our residents as a result of rising energy costs and inflation led to the development of 3 'cost of living help. page on our website which is used to inform our residents of The large increase in energy costs was a big shock for everyone last year. For some people, energy bills went up by 300%. Whilst we were able to pass on the government subsidy introduced in 26 brunelcare.org.uk the latest schemes. help and advice being offered by the Government - see here.. Www.bruneleare￿r9.UkIabQUt- us/help.and.guidancelcost-of.IMng- helpl. We also introduced a 'Financial Support Fund, to support residents facing difficulty Wlth the increasing cost of living and rising energy bills. which allocated over £30,000 in crisis payments to residents. Pilotlng new consumer standards As reported in last year's annual report as part of the inspection process, Brunelcare worked with the RSH to pilot its new arrangements to review compliance with the five RSH Consumer Standards". Home Standard- quality of accommodation and repairs and maintenance Regulatory Assessment and Review Tenancy Standard - how properties are allocated/exchanged and terms around tenure Neighbourhood and Community Standard- issues around neighbourhood and communal areas and anti-social behaviour Tenant Involvement and Empowerment Standard - customer service and complaints, tenant rights and involvement At least every four years. Brunelcare is inspected by the Regulator for Social Housing. On 29 March 2023. the Regulator for Social Housing IRSHI published its regulatory judgement of Brunelcare following an 'ln-Depth Assessment, IIDA). Based on evidence gained from the IDA, the RSH confirmed that it was assured that Brunelcare continued to comply with the governance and financial viability elements of the Governance and Financial Viability Standard. Tenant Satisfaction Measures Standard (fsMs)- reporting against the TSMS which covers information on areas such as repairs, safety checks and complaints (applies from l April 20231 The publlshed outcomes were. The RSH concluded that there was good evidence of Brunelcare meeting the new Consumer Standards but identified areas where improvements need to be made". understanding diversity of tenants understanding satisfaction rates better transparency and involving tenants more in decisions Gl The provider meets our governance requirements Iratings are Gl and G2 - compliant. G3 and G4- non- compliant] The provider meets viability requirements,. it has the financial capacity to deal with a reasonable range of adverse scenarios but needs to manage material risks to ensure continued compliance [ratings are Wl and V2 - compliant: V3 and V4- non-compliant Click for the full judgement or follow the link below: .gov.uklgovernmentl publicationslregulatory-judgement- brunelcare-_2 Annual Report and Financial Statements 2023-24 27 OUR COLLEAGUES We reeognlse the importance of investing in our colleagues and supporting them to develop and achieve their personal and career aspiration& We offer a range of apprenticeships. health and social care qualification4 leadership skills training and other development opportunities Brunelcare experienced significant difficulties in 2022-23 in recruiting and retaining employees. The People Plan. launched in January 2023. included a range of specific interventions focused on improving Brunelcare's ability to recruit and retain a highly motivated and well-trained workforce, which is having a positive impact on the seNices delivered and results achieved. The following chart shows the reduction of employee turnover during 2023-24.. Turnover vs Month 30.00% . 28.20% 28.00% 27.42% 27.￿% 26.46% 2&54 26.00% 25.80% 25.21% 2532 24.54% 26.00% 23.69% Awil May June Jar* Feb Mèr MoiifH 28 brunelcare.org.uk In the last quarter of 2023-24, under 3S% of positions were unfilled, which is well below the NCF Survey average of Il% of positions being vacant. A range of improved benefits including the introduction of the real Living wage IRLW} has seen our employee turnover reduce from 28% at the beginning of the year to under 24%. These include: Q Real Living Wage: Since April 2022, all colleagues at Brunelcare have been paid at or above the real Living Wage IRLW ). Alignment to the RLW resulted in a IO% pay increase in April 2023 for our lowest paid colleagues and a similar increase atthe end of March 2024. O Buying and selling holida The facility for employees to buy additional annual leave or sell an amount of annual leavewas introduced in 2024. O Medicash Health Plan: The Medicash Plan was launched in August 2023 and is available to all employees. It provides a range of positive healthcare benefits including cash back to cover costs such as dental and optical bills, physiotherapy and consultancy charges. Gender Pay Brunelcare is committed to delivering equality of opportunity regardless of gender and has a pay and grading structure to support this. In April 2024, we published our gender pay gap report for 2022-23. Our average mean pay gap was14.99%", this is lower than the previous year by 2.49% and indicates that the number of males holding higher paid roles overall has decreased slightly. Our average median pay gap is 4.17% which is 3.65% lower than the previous year, and it remains below the national figure of14.3% in 2023. The full report can be accessed here. Annual Report and Financial Statements 2023-24 29 Ethnicity Pay Brunelcare registered in 2023 as a member of the Bristol Financial Resilience Action Group IBFMGI which is a network of employers aimed at boosting the financial resilience of Bristol, coordinated by Hargreaves Lansdown in response to the cost of living crisis. Actions taken as a result of membership includes an increase in employer pension contributions and the distribution and signF)OSting to a range of webinars providing advice and information on managing family finances. There is no indication of an obvious concern in regard to the Brunelcare ethnicity pay gap. The average rate of pay for those who identify as an ethnic minority is 97.1%, which is 2.9% lower than the same calculation for those declaring themselves as white. The ethnicity gap overall has widened over the last year by 4.6% to 2.9% {ethnic minority pay rates were 1.7% higher in 20221. This will have been influenced by our much improved data collection, continued focus on recruiting overseas nurses and carers and also our activities to attract applications from all communities across Bristol and the South West. Internal Agency Solution A project is underway to provide an internal agency platform to allow all managers to post vacant shifts that they are seeking to cover. The'app, issues alerts to all registered employees to notify them of the opportunity. Colleagues can accept the shift through the platform with one-click. The product is named Bemlo and during 2023-24 it was piloted at Little Heath Care and Waverley Gardens. Robinson House and the ABC Centre have been running this platform successfully since October 2023. This is being delivered in partnership with Care & SupF)ort West with funding from Bristol City Council and is helping to reduce agency use. We have been an Investors in People employer for the past 20 years and retained our accreditation again in February 2024 following a full assessment and employee survey. We have been a Disability Confident employer (previously known as Tworicksl for the past 16 years. A colleague-led Equalities Forum has been established to oversee and strengthen EEDI arrangements. Remuneration The remuneration of the Senior Leadership Team and colleagues is reviewed bi-annually by the Remuneration and Nominations Committee following external benchmarking. We do not operate any incentive schemes. I Set by the Living Wage Foundation, the RLW is independentty calculated according to the real cost of living based on a basket of household gocKls and service 30 brunelcare.org.uk HEALTH, SAFETY AND WELLBEING We remain dedicated to enhancing our health, safety. and well-being arrangements consistently reviewing and refining our practices to ensure a safe environment for all. One incident involved an injury sustained during maintenance work Another occurred due to an interaction with machinery The third involved an accident with a moving device These incidents have been thoroughly investigated, and appropriate measures have been implemented to prevent recurrence. In 2023-24, there were 52 reported accidentsfincident& Of these, approxlrnately 69% resulted in some form of injuryi prSmarily minor but notable, such as cuts and bruise% This underscores the ongoing need for preventive measures and vigilance. However. there was a significant reduction in incidents related to slips trips. and falls which constituted 29% of all reported cases Personal Injury Claims One liability claim was made by a staff member related to a workplace accident during 2023-24. No injuries to members of the public were reported, and there were no major incidents. Continuous monitoring and proactive measures remain priorities to mitigate risks and enhance safety across all sites. The significant reduction in reported incidents this year reflects our ongoing efforts to improve health and safety measures and reporting. We continue to focus on creating a safe and supportive environment, underpinned by informed reporting, regular training, and safety awareness. Health and Safety Enforcement (Statutory Breaches) No statutory breaches were recorded for the year 2023-24. reflecting the effectiveness of action plans. We continue to work closely with Avon Fire and Rescue in both housing and care settings, fostering a strong relationship with the fire safety officers. Inspections and internal audits have been maintained, ensuring compliance with fire safety and other statutory requirements. Any minor issues identified were promptly addressed to uphold high safety standards. RIDDOR Reportable Incidents Brunelcare reported three RIDDOR IReporting of Injuries, Diseases and Dangerous Occurrences Regulations) incidents in 2023-24, all involving staff members who were off work for more than seven days: Annual Report and Financial Statements 2023-24 SECTION 172 STATEMENT Brunelcare qualifies as a large company under the Companies Act 2006 as it meets at least two of the following criteria-. The principal decisions taken by the Board during the year were: Principal decision I: Agreeing the appointment ofa new Chair of Trustees Q Turnover of more than £36m" Q Balance sheet total of more than ￿8rn. Q More than 250 employee We are therefore required to disclose in this strategic report a "Section 17211} Statement" describing how directors have had regard to the matters set out in sections 1720)lal-lfj of the Companies Act 2006 when performing their duty under the section. Graham Ru*ll's apF)ointment as Chair of the Board of Trustees was approved by the Board when it met on 21 June 2023 and he took up the position on l July 2023. Principal decision 2: Agreeing that the offer of BUPA membership to those employees of Grade E and above be discontinued from the end of July 2023 and repla￿d with o healthcare solution for oll employees as part of a wider re-lounch of employee benefits. The following is a statement by the Trustees in performance of their statutory duties in accordance with s17211l of the Companies Act 2006. The Board of Trustees of Brunelcare consider, both individually and together, that they have acted in the way they consider. in good faith. would be most likely to promote the success of the Charity for the benefit of its members as a whole (having regard to the stakeholders and the matters set out in s172lllla-n of the Act} in the decisions taken during theyear ending 31 March 2024. Below it is set out how we have engaged with key stakeholders during the 2023-24 financial year. Principal decision 3: Approvul of the Long Term Financial Plan The Long Term Financial Plan ILTFP} forms a key part of Brunelcare's financial governance arrangements. In June 2023, the Board approved the 2023- 24 iteration of the LTFP. In line with Brunelcare's Stress Testing Policy and the requirements of the Regulator for Social Housing IFISHI. stress tests relevant to Brunelcare's business model were applied. These also reflected its key risks and those from the sector risk profile. and link to the asset and liability register. Both single stress tests and multivariate scenarios were applied to demonstrate the resilience or otherwise of the plan to a variety of changing circumstances. 32 brunelcare.org.uk Principal decision 4: Agreemenc to proceed with the development of a new 70-home extra care housing scheme ot New Fossewoy Hengrove Agreement was subject to a range of criteria. i ncl ud ing confirmation of final development Costs and grant funding levels. The Board later agreed to not continue with this development. Principal decision 7: Approval ofa programme of Option Appraisals on 75 sites with a Net Present Value of less thon F25k, to be corried out over the nextyeor on o priority basis with recommendotions reported to Board on the strategies and investment levels required to retoin Decent Homes Standard and a minimum EPC ofc by2030. Principal decision 5: Agreement to Bristol Energy Cooperative being appointed to progress the feasibility, viability and design of the installation of solor PV arrays on the roofs of a selection of Brunelcore s co homes and extra care schemes Principal decision 8: Approvol of the aims ond objectives of a project to look at the future of Brunelcare s care provision. 'Care Futures,. Principal decision 6: Approval of four sites for the installation of solar panels, in portnership with the Bristol Energy Co-operative. to be completed by 37 March 202&. Robinson House and Deerhurst care homes. BEC was appointed to progress the design and installation of solar PV arrays on the roofs with BEC funding SO% of the capital cost and Brunelcare contributing 50%. b. Waverley and Colliers Gardens- BEC funded IO0% of the installation. Residents benefit from energy at a reduced cost while BEC recovers its investment through charging for the energy produced. Principal decision 9". Agreement to the poyment of an honorarium to all Trustees with the level of payment being aligned to the role played on the Board. Further information on this decision can be found on page 51. Annual Report and Financial Statements 2023-24 33 STAKEHOLDER ENGAGEMENT Ouring 8runelcare focus£ed embeading engagement st.akeholder£ CLJSt.omers colleagues charit.y s underpinned Toget.her •ustomers •harter Brunelcare priorit.ise Brunelcare appoint,ed October IAiork processes. launched influence cJstomers. support •ommunicat.ions, Engagemeni ngagpmon. arkei.ing •UStomer included. COLLEAGUES It has been important to maintain communication with colleagues on key internal annour)cements, via internal bul letins, all-col league calls, and meetings of Brunelcare's Equality Forum and Colleague Voice group. We were delighted to announce Brunelcare's commitment to remaining a Living Wage Employer. which has made a significant difference to wages for some of the Charity's lowest paid colleagues. CUSTOMERS Alongside the ongoing work of the Residents First Group. customers from across Brunelcare engaged in events arnd focus groups to develop the organisation's new Strategic Plan. Customers have played a key role in the review of i nterna I policies and processes to select new contractors. for example in Brunelcare's external cleaning services and the Wave 2 retrofit project on two of our sheltered housing sites. COMMISSIONERs/LOCAL AUTHORITIES Following the appointment of a new Head ofcommunications, Engagement and Marketing, 8runelcare has successfully engaged with the broadcast and print press on a number of occasions to highlight the positive work being done across Brunelcare, and the difference it makes to the lives of the people we support. We have continued to strengthen our relationships with our commissioners and local authority partners. These relationships are key to developing new and securing existing services. brunelcare.org.uk INFORMATION GOVERNANCE 8runelcare continues to work towards culture of compliance with the UK GDPR. DPA 2018. Privacy and Electronic Communications Regulations and official guidance based on the above. During 2020-21, the Charity achieved entry-level status to the NHS Data Security and Protection Toolkit, contributed to making this toolkit more relevant to the social care sector, and contributed to two pilots run by the National Cyber Security Centre (NCSCI. This status was maintained in 2022-23. Risks relating to information are managed and controlled in accordance with the Charity's Information Governance Policies. All information governance issues are escalated to Brunelcare's Corporate Governance Team. who reviews and assesses each one to ensure any breaches are identified and concerns addressed. Annual Report and Financial Statements 2023-24 VALUE FOR MONEY AND BENCHMARKING ASSESSMENT OF FINANCIAL AND OPERATIONAL PERFORMANCE Value for Money Matrix Brunelcare utilises data within both the Regulator for Social Housing Value for Money metrics and Housemark benchmarking data to monitor its activities in order to ensure that we continue to deliver value for money and make progress towards our strategic objectives. The Scorecard sets out a number of indicators covering business health. outcomes delivered. effective asset management and operating efficiencies. An analysis of Brunelcare's score against each of these indicators is set out below. The Board is committed to providing high-quality services and achieving Value for Money WFM). The Board has set efficiency objectives and utilises housing sector metrics to ensure that there is a focus on.. Q improving customer experience and satisfaction., Q the quality and safety of all services the safety and suitability of our homes; Q improving the efFiciency and effectiveness of services: In addition to these sector-wide benchmarks we also have a series of internal metrics that monitor key risks to the business. All of these metrics are monitored regularly by the Senior Leadership Team and Trustees to ensure that we focus on delivering the best value for our stakeholders. increasing financial capacity Flecruitment has improved since we moved to paying the Real Living Wage as a minimum and we continue to see the benefits of this pay policy as retention of staff has also improved and we have been able to reduce our reliance on agency staffing. We have also invested in central IT systems, replacing and upgrading our IT infrastructure and housing and rostering systems in the year. 36 brunelcare.org.uk Key Metrics Metrlc l.. Reinvestment BfiuNELCATrE Benchmark Reinvc5tment Measure 2022-23 2023-24 quartile Median quartile Fleinvestment as a percentage of exisitng stock 43% 6.7% 9.4% Reinvestment measures expenditure on our existing estate to improve the quality of longevity of the buildings We increased our spending in 2023-24 and have another increase planned for 2024-25 aswe improve the energy efficiency of our buildings. Metric Z. New Supply Delivered BRUNELCAFIE Benchmark New Supply Delivered Qlo Measu re 2022-23 2023-24 quartile Median quartile Social housing units developed as % of owned 13% 2.2% Non-social housing units developed as % of owned 0.1% This measure looks at the number of new social and non-social housing units developed in the year compared to the size of the entity. Brunelcare d￿5 not regularly develop new housing schemes but we expand our services when suitable opportunities arise. Annual Report and Financial Statements 2023-24 37 Metric l. Gearing BRUNELCARE Benchmark Gearing Measure 2022-23 2023-24 quartile Median quartile Gearing 5.3% -o.i% 33.4% 45.3% Gearing compares our net debt position to our net assets and is a measure of financial stability. Brunelcare currently has relatively low levels of debt which have reduced further following repayments in theyear. Cash balances are currently high and offset the long term loans. These reserves are needed for investment in our properties over the next strategy period as we improve energy efficiency. Metric ￿. Headline Social Housing Cost Per Unit BFIUNELCARE Benchmark Headline Social Housing Measure 2022-23 2023-24 quartile Median quartile Total cost per unit Ihousing for older people) 8,043 9.967 4.082 4586 5.847 This measures the efficiency with which we provide housing services to our residents by calculating an average cost per housing unit. Our costs are relatively high compared to the sector average, partly due to Brunelcare purchasing and recharging our residents, energy. brunelcare.org.uk Metric &. Operating Margin BfiuNELCARE Benchmark Operating Margin Measure 2022-23 2023-24 quartile Median q uartile Operating margin social housing 8.4% 14.4% 14.4% 19.8% 25S% Operating margin overdll 7.6% 12.0% 18.2% The operating margin is an indication of profitability. It expresses operating surplus as a percentage of turnover. Our overall operating margins are low compared to the housing sector due to the inclusion of lower-margin care seNices plus, within housing, our purchase and recharge of energy on behalf of our residents. Brunelcare's overall operating margin percentage has increased from last year- partly due to a fall in fuel costs from the previous year, when it spiked following the war in Ukraine, much of which we were not able to recover from our customers. Metric &. Return on Capital Employed BRUNELC-ARE Benchmark Return on capital employed ° Measure 2022-23 2023-24 quartile Modian quartrle RetUTn on capital employed 12% 7.5% The return on capital employed compares our surplus to our assets less current liabilities Iso excluding longer term liabilities such as loans and deferred capital grants). The figure for Brunelcare is higher in 2023-24 than the benchmark for housing associations due to our mix of services provided. Annual Report and Financial Statements 2023-24 Payment Of Creditors In line with government guidance. Brunelcare's policy is to pay purchase invoices within 30 days of receipt, or earlier if agreed with the supplier. To achieve this, we perform weekly payment runs and one-off payments where required. Our latest return to the Government's Payment Practices Service included: li Percentage of invoices paid within 30 days Percentage of invoices paid between 31 and 60 days Percentage of invoices paid after 60 days 51% Financial Performance Cash Flow And Working Capital Management Cash balances at the year-end were strong at EIO.4m, an increase of £1.5m in the year due to good cash generation from operations plus delays in fulfilling our capital programme. Most of these funds will be used over the next two financial years to invest in our propertie for example. in retrofitting sites to improve their energy efficiency and enable them to meet EPC C by 2030. We invest balances in rolling money market deposits to maximise interest received. We paid 29% of our invoices outside of the agreed time. We are working to improve our turnaround times for authorising invoices for payment. The average number of days taken to pay invoices was 36. Fixed Assets Details of changes to Brunelcare's fixed assets are shown in notes 10 and 11 to the financial statemen Accounting Policies Brunelcare's principal accounting policies are set out on pages 71 to 76 of the financial statements and have been prepared in accordance with the Statement of Recommended Practice 2018. 40 brunelcare.org.uk Reserves Pension At the end of the year Brunelcare had total reserves of £33.5m (2023: £29.8m). Within that figure, Revenue Reserves ('Free" Reserves) totalled £3l.9m {2023'. £28.2m). Brunelcare generates net surpluses in each financial year which are reinvested in existing properties and services alongside new projects, and to provide reserves with which to meet any emergency funding requirements that may ari*. The Board is satisfied that the level of reserves reported is reasonable. The net liability valued by the scheme actuary for the Charity's share of the SHPS defined benefit pension scheme increased slightly in the year to £3.3m {2023". £3.2m), despite the Charity making contributions into the scheme of £0.8m in theyear. The movements in the pension scheme fijnding are largely outside of the Charity's control, but we continue to pay into the scheme. with other employers, to reduce the deficit over time. We ensure that our long term financial plans include a prudent view on how long these payments may be requ ired for. The Charity has also mitigated the risk of increased fiJture deficits by closing our defined benefit scheme to new and current members at the end of March 2019. Treasury Management & Strategy Brunelcare has a formal Treasury Management Policy which is approved by the Board. The purpose of the policy is to agree and maintain a framework within which the exposure to risk related to cash investments and borrowings can be managed. The policy requires an Annual Report to the Board setting out the application of the policy for the past12 months and the strategy for the next financia5 year. Brunelcare's current debt profile shows term loan borrowings from two lenders: Lloyds TSB and Capita PIC Iorchardbrook Limited). Brunelcare also has a Rolling Credit Facility with Barclays which provides funding of £5m should it be required. There were no drawings or repayments on the facility in the year. We are investigating new loan options in order to fund the investments required in our housing and care sites over the next 10 years. Going Concern Our Long Term Financial Plan confirms the Board has a reasonable expectation that Brunelcare has adequate resources to continue in operational existence for the foreseeable future, being a period of twelve months after the date on which the report and financial statements are signed. For this reason, it continues to adopt the going concern basis in the financial statements. Additional details are provided in the strategic report starting on page 60. Annual ReFM)rt and Financial Statements 2023-24 41 Board Internal Targets The Board also uses internal operational targets as follows: Target 7.. Quality of care Internal Measure 2021-22 2022-23 2023-24 I. IO0% of our CQC regulated Services are rated as 'Good' or'outstanding. io0% Please see the section on the quality of our care services above, which provides a table showing our current CQC ratings. At the end of 2023-24. all care services were rated 'Good' or'outstanding.. Target 2.. Sickness absence Internal Measure 2027-22 2022-23 2023-24 2. Reduce Sickness absence in line with the social care sector average 5.76% 536% Sickness absence levels have decreased slightly in the year. however this remains above our internal target14.5%). Target 3.. Employee retention Internal Measure 2021-22 2022-23 2023-24 3. Achieve an employment retention level of higher than 85% 65.47% 7254% This target has not been achieved but has increased significantly compared to 2021-22 and 2022-23. Employee retention remains a key issue in the care sector and continues to be a key part of our corporate strategy, with a range of activities having been taken to improve this figure. Target &. Occuponcy Internal Measure 2021-22 2022-23 2023-24 4. Achieve a level of occupancy in care homes of higherthan 95% 94.7% 97.3% 95.5% Whilst occupancy in our care homes fluctuated across the year. the Boarcl's agreed target of 95% was met at the close of 2023-24. brunelcare.org.uk RISK MANAGEMENT Embeddlng effectlve rlsk management remains a key priority for the Board. Our approach to risk management has been designed to ensure that risks are identified, assessed and prioritised and appropriate mitigating actions taken. Systems implemented to manage risk at various levels of the organisation include: A comprehensive Corporate Risk Register ICRR}; O Review of the CRR at Senior Leadership. Audit. Risk and Finance Committee and Board meetings; The monitoring of the internal control system by the corporate governance team, internal and external audit functions that can provide an independent perspective on the management of risk" Q Audit, Risk and Finance Committee meetings with the auditors, in the absence of management. at least once a year. Additionally. the AR&FC and the Board receive reports from management on specific risk areas. including fire safety, landlord health and safety compliance, cyber security, and the implementation of new IT systems. The Corporate Risk Register is updated quarterly and highlights the top risks facing Brunelcare. changes to existing risks and any new risks identified together with actions to manage these risks further action to be taken and assurance arrangements. Principal Risks and Controls At the start of each financial year, a detailed assessment of the risks impacting on the Charity is undertaken, this includes a review of the Sector Risk Profile published by the Regulator for Social Housing, sector risks highlighted by the Care Quality Commission and the Health and Safety Executive. The Board together with the Senior Leadership Team identified the major strategic risks to which Brunelcare could be exposed, and the Senior Leadership Team ensured controls were in place to mitigatelmanage them. The Corporate riisk Register ICRRI was reviewed at each Audit. Risk and Finance Committee and Board meeting. The principal areas of risk to which the Charitywas exposed in 2023-24 were identified and reviewed throughout the year and, for each of these, an assessment was made as to their impact, severity. and probability. The Senior Leadership Team is responsible for reporting to the Board and Audit, Risk and Finance Committee IAR&FCI on critical risk areas and scrutinising all operational risks, gaining assurance from management structures that those risks are managed adequately. Additionally, each of the Committees of the Board have their own risk register. The AR&FC also approves and oversees the annual internal audit programme. providing assurance that the controls in place are both well-designed and operating effectively. Annual Report and Financial Statements 2023-24 43 Risks included on the CFIR were reviewed at each Board Strategy and Development Session held during 2023-24 alongside the development ofthe Charity's Strategy for 2024-2030. This included horizon scanning exercises for emerging risks facing the Charity against documents such as the Sector Risk Profile developed by the Regulator for Social Housing and the World Economic Forum's Global Risk Report for 2024, and a reassessment of existing risks included within the CRR. This included discussion of health and social care risks. In light of these reviews. an updated CRR was presented to each meeting of the Audit. Risk and Finance Committee throughout the year followed by discussion and approval by the Board. As at 31 March 2024 there was one risk in the Corporate Risk Register.. RISK POTENTIAL IMPACT MITIGATING FACTORS Risk of cyber attack Service effectiveness, efficiency P¢)or data and cyber security and management. IT Strategy approved by the Board in December 2021 and will be subject to update in 2024 ITTeam restructured to ensure an emphasis on cyber security Working onwards Cyber Essentials accreditation Employee training and awareness increased brunelcare.org.uk Capacity to Handle Risk Ensuring effective risk management is a key priority for the Board as it is integral to enabling the delivery of our objectives. both strategic and operational. and most importantly to the delivery of safe. high quality service& Risk Appetite HM Treasury (2006) define risk appetite as: 'The omount of risk that an organisation is prepored to accept, tolerate, or be exposed to at any point in time,. In March 2024. the Board revisited its Risk Appetite Statement. This set out the Board's strategic approach to risk-taking by defining its risk appetite thresholds. It is a 'live' document that is regularly reviewed and modified, so that any changes to the organisation's strategies, objectives or its capacity to manage risk are properly reflected. In reviewing and updating the Risk Appetite Statement, careful consideration was given to Brunelcare's capacity and capability to manage risk. A copy of Brunelcare's Risk Appetite Statement can be found here. The Risk Management and Assurance Framework sets out the processes and mechanisms for the identification. assessment and escalation of risks. It has been developed to create a robust risk management culture across Brunelcare by setting out the approach and mechanisms by which the Board: Makes sure that the principles, processes and procedures for best practice risk management are consistent across the charity and fit for purpose. Ensures risks are identified and managed through a robust organisational Assurance Framework and accompanying Corporate and Directorate Risk Registers., Embeds risk management and established local risk reporting procedures to ensure an effective integrated management process across the Board's activities: The Risk Appetite Statement will be revisited again in March 2025. Ensures strategic and operational decisions are informed by an understanding of risks and their likely impact: and Ensures risks to the delivery of the Board's strateg ic objectives are eliminated. transferred or proactively managed. Annual Report and Financial Statements 2023-24 07 STRUCTURE, GOVERNANCE AND MANAGEMENT Brunelcare's Legal Structure Standing Orders, Scheme Of Reservation And Delegation Of Powers And Standing Financial Instructions Founded in 1941, Brunelcare is a company limited by guarantee without share capital (registered company number 601847) and a registered charity (registration number 201￿5). The Charity's objectives I'objects.) are specifically restricted to the following: the business of providing and managing housing ond core, including social housing. ond providing assistance to help house people and associated focilities amenities ond services frjr people of lesser meons or for the core of oged, disobled (whether physically or mentolly) or chronicolly sick people,. ond Our governance arrangements are set out in 8runelcare's Standing Orders and Financial Regulations, and these include the terms of reference and the roles and responsibilities of Board and committee members. Our Scheme of Reservation and Delegation of Power sets out the matters reserved to the Board for decision or delegated to its committees and the Senior Leadership Team. These documents. together with a range of corporate policies set by the Board, contribute to the organisation's governance framework. There is a clear demarcation between executive and non-executive roles. The Trustees delegate day-to-day executive control of the Charity to the Chief Executive Officer and the Senior Leadership Team, which meets regularly. The Chief Executive Officer is responsible for running the Charity in accordance with the direction set by the Board and the F)owers delegated to them by the 8oard. The Chief Executive Officer is accountable to the Trustees for their performance and that of the Senior Leadership Team. any other charitoble object thot can be corried out from time to time by o charity or provider of core registered with the Care Quality Commission and provider of social housing registered with the Regulator To fulfil the above objectives, Brunelcare is registered with the Regulator for Social Housing and provides social housing across a range of sites in the Bristol area. It is also registered with the Care Quality Commission as a provider of care homes. extra care housing and a range of community services in Bristol. Somerset and South Gloucestershire. Further details about the care Brunelcare provides and the types of housing and the areas where they are provided can be found by visiting our website: brunelcare.org.u brunelcare.org.uk The Board Of Trustees Board Meetings The Board comprises up to 12 Trustees, ten non-executive and the Chief Executive Officer and the Director of Finance & Digital Services. The Board sits at the top of the organisation's governance and assurance systems. Its principal role is to exercise effective leadership, provide strategic direction and control. During 2023-24. the Board held four scheduled formal meetings and three development sessions. Through these meetings. the Board.. Oversaw the continued development and review of the organisational risk register, including the monitoring and management of risks and the assignment of risks to key committees of the Board; The Board is accountable for governance and internal control in the organisation, and the Chief Executive is responsible for maintaining appropriate governance structures and procedures. The Trustees, as the directors and charity trustees, are collectively responsible for the affairs of 8runelcare. Trustees have a wide range of skills, experience and understanding in all aspects of our operations which enable them to be able to set and actively drive our social purpose, mission and value& All Board and committee members have annual appraisals, which include the use of 360-feedbacK as appropriate, to allow us to monitor Board and committee performance and ensure transparency and accountability. Received, considered and discussed financial performance and the related risks being managed by the Board,. Discussed and approved capital projects, contracts and tender proposals in line with agreed delegated authority levels: and Routinely received assurance reports from the Committees of the Board. All formal meetings of the Board held in 2023-24 were appropriately constituted with a quorum. Attendance at Board meetings was formally recorded within the minutes, detailing where apologies have been received. Attendance at Board meetings in 2023- 24 is set out in the following table. Please note, attendance is expressed as the number of meetings attended out of the number eligible to be attended. Annual Report and Financial Statements 2023-24 47 Trustee Attendance 21 2023 13 2023 13 2023 Alison Comley 414 Deborah Evans Harry Hayer 314 Nick Hooper 314 Phil Hope 3/4 Kate Innes (Still} 414 Jo Makinson 314 Anthony Oldfield 414 Graham Flussell Andrew Sloman 414 Executive Directors". Oona Goldsworthy 414 John Rew 414 brunelcare.org.uk Trustee Terms of Appointment Trustees are appointed on the basis of the skills and experience they can bring to overseeing the activities of the Charity. The skills and backgrounds collectively represented on the Board should reflect the population it serve& All Trustees are appointed for terms not exceeding three years and are eligible for re-appointment for a maximum of three terms. To be eligible for appointment. Trustees must meet eligibility requirements. as specified in Article 21 of Brunelcare's Articles of Association. The charity's Standing Orders [see 5.2.41 require Board members to confirm in writing their continued eligibility on an annual basis. Trustee Resignations and Appointments There was one resignation during the year, Deborah Evans. who stood down from the role of Chair of the Board on l July 2023. Graham Russell took up the role of Chair of the Board on l July 2023. Annual Rèport and Financial Statements 2023-24 The Board Composition as at 31 March 2024 was: Name Role Took up Appointment on Area of Specialism Trustee and Chair of the Performance. Quality and Experience Committee Strategic Development- Housing Nick Hwper 13 March 2018 Trustee, Vice Chair and Chair ofthe Remuneration, Nomination and Worlrforce Committee Harry Hayer 15 February 2019 HRand OD Phil Hope Trustee 28 February 2019 Health and Social Care. Strategy t)evelopment Kate Innes Istilll Trustee 8 May2019 Housing Alison Comley Trustee 22 September 2020 Social care Property, investment and funding opportunities Anthony Oldfield Trustee 22 September 2020 Trustee and Chairof theAudit. Risk and Finance Committee Andrew Sloman I September2021 Housing Finance lo Makinson Trustee 7 October 2021 . Social housing Finance Graham Russell Chair of the Board l Juty2023 Housing and strategy Oona Goldsworthy Chief Executive Officer 19 May 2020 Housing John Rew Director of Finance & Oigital Services 20 March 2023 Finance brunelcare.org.uk Conflicts of Interest Trustee Remuneration Trustees are aware of their legal duty to act in the best interests of Brunelcare and to make a declaration when they have a confl ict of interest. Any Trustee who has a conflict of interest in relation to any matter discussed by the Board must declare this at the start of a meeting. The meeting chair in consultation with the Company Secretary makes a decision in relation to how the conflict will be managed and this is recorded in the minutes of the meeting. During the year, the Board agreed to Trustees being paid an honorarium. The Charity Commission agreed to a clause being included in Brunelcare's Articles of Association that allowed the payment of Trustees. Brunelcare is unusual in being primarily a charity, but also a registered provider of social housing. Payment was introduced in recognition of the complexity of the property. landlord and finance functions and as the custodians of significant public capital funding. An independent review was commissioned and the resulting report recommending payment considered benchmarking data for the social housing sector as well as charities of a similar size to Brunelcare. The majority of housing associations are exempt charities and have paid Board members for over a decade. In addition, Trustees are required to complete a declaration of interest form on an annual basis. any declarations made are recorded in a Register of Interests. Declarations are updated as and when a Trustee's circumstances change. Payments to our trustees range from £3.500 to £8.000 per year. Annual Report and Financial Statements 2023-24 51 BOARD COMMIThEE ARRANGEMENTS The Chief Executive Officer and Director of Finance & Digital Services attend (the Chief Executive Officer by invitation) but are not members of the Committee. The Chair and members of the Committee are appointed by the Board. The Board is clear that robust governance is reliant upon effective and efficient Board Committee arrangements which ensure a balance of focus between strategic development. gaining assurance and scrutiny and driving the right culture. During 2023-24 the following Board Committees were in place" Committee meetings were regularly attended by representatives from: RSM, Brunelcare's Internal Auditors; and KPMG, Brunelcare's External Auditors (replaced by Crowe in January 20241. A Committee Annual Report was submitted to the Board in March 2024 for ratification and can be found here. This provides further details about the Committee and how it met its terms of reference in 2023-24. The Audit. Risk and Finance Committee" Q The Remuneration, Nomination and Workforce Committee., O The Performance, Quality and Experience Committee., and Q The Health, Safety and Well-being Committee REMUNERATION, NOMINATIONS AND WORKFORCE COMMITTEE AUDIT, RISK AND FINANCE COMMIThEE The Remuneration, Nominations and Workforce Committee is responsible for setting the reward and recognition strategies for our employees and for overseeing the processes for succession planning. recruitment and selection to the Board and its committees, making recommendations to the Board on these matters. The committee also sets the level of Board pay and the remuneration of the Chief Executive OfFicer. The Audit, Risk and Finance is responsible for monitoring and reporting to the Board on the Charity's systems of internal control and risk assurance. regulatory compliance and for overseeing internal and external audit. The committee met five times during the year. Membership of the committee compri*s four Trustees and is chaired by Andrew Sloman. At least one member of the committee is required to have recent and relevant financial experience suited to reviewing the work of audit. Membership of the committee comprises three Trustees. The Chief Executive and the Director of HR & OD attend each meeting. The committee met three times during the year. 52 brunelcare.org.uk A Committee Annual Report was submitted to the Board in March 2024 for ratification and can be found here. This provides further details at)out the Committee and how it met its terms of reference in 2023-24. HEALTH, SAFETY AND WELL-BEING COMMirrEE PERFORMANCE, QUALITY AND EXPERIENCE COMMITTEE The Board recognises that its employees understand the risks in the workplace best. Therefore. to ensure timely and appropriate engagement and consultation, the Board of Brunelcare has established a Health. Safety and Well- being Committee. The Committee takes a strategic overview of health, safety and well- being issues affecting Brunelcare. It also ensures best practice in health and safety by promoting communication, co-operation and consultation across the Charity. The Committee has a specific responsibility for providing accurate, evidence-based (where possible} and timely advice to the Board in respect of: the ongoing development of an improving performance culture which continuously strives for excellence and focuses on improvement in all aspects of the charity's business, in line with the Board's Framework for Improving Performance: and In 2023-24, the Committee was chaired by the Chief Executive Officer and included representatives from 311 areas of the Charity. Representatives have b*n elected to the Committee to act as contact points within their *rvice areas on matters of health, safety and well-being. an operating model which aligns resources effectively to support the achievement of the Board's strategic aims, objectives and priorities. Membership of the committee comprises four Trustees. The Chief Executive Officer and Operational Directors attend each meeting. A Committee Annual Report was submitted to the Board in March 2024 for ratification and can be found here. This provides further details about the Committee and how it met its terms of reference in 2023-24. Committee 2023-24 Report Committee reference 2022-23. follow met Annual or Ic-ar-_ org.uklabout-u" "￿'e.6"e/0u-.Co￿rnIt.lees-an1- ,embers*ir, Annual Report and Financial Statements 2023-24 53 OUR SENIOR LEADERSHIP TEAM Regulator for Social Housing Governance and Financial Viability Standard Brunelcare undertakes annual self- assessments to monitor its ongoing compliance with both the Governance. Economic and Consumer Standards. These self-assessments are reviewed by Committees of the Board before being approved by the Board. Any changes or implications arising within the year are reported on an ad-hoc basis. The self- assessments at the time of reporting showed that the Charity continues to be materially compliant with Governance, Economic and Consumer Standards. Any areas for refinement or improvement have been identified and transferred to the Integrated Governance Improvement Plan. The Charity has the capability and capacity to meet all the compliance standards. Our Senior Leadership Team through the Chief Executive Officer has delegated authority from the Board for: the day-to-day operations of the charity monitoring operational and financial performance corporate culture implementing and ensuring compliance with policies and strategies agreed by the Board. Further information on the members of the Senior Leadership Team can be found on our website. www.brunelcare.org.uk/about-us/ who-we-arelsenior-leadershipteam Statement of adherence to the fundraising regulator code GOOD GOVERNANCE Brunelcare seeks to comply fully with all regulations and relwdnt codes of practice. Performance Management Fundraising is not a significant income stream for Brunelcare and therefore we are not required to report under section 162A of the Charities Act 2011. However, it applies the principles of the Code of Fundraising Practice. For example, by directing all supporters to use the JustGiving platform to ensure funds are raised in a transparent manner and quickly transferred to Brunelcare. Key performance indicators are used to continually monitor our performance against financial and non-financial targets. Performance dashboards have been developed for each of our Committees to ensure a sharp focus on performance. A summary of performance as at 31 March 2024 can be found at section 3 of this report. The Board's self assessment of its effectiveness The Board has adopted the Charity Code of Governance and this is reflected within key policies and procedures. Further. within our system of internal control, 54 brunelcare.org.uk there are a range of mechanisms in place which are designed to monitor our compliance with the code. The* include: self-assessment,. internal and external audit; and independent reviews. The Board is clear that for the year ending 31 March 2024, it complied with the main principles of the Code, and conducted its business openly and in line with the Code. Regular self-assessments against the Code are completed. bfLAnelcar Annual Report and Financial Statements 2023-24 55 08 BOARD REPORT The Brunelcare Board presents its report and audited consolidated financial statements for the year ended 31 March 2024. of approval of the annual report and financial statements. A review and evaluation ofthe adequacy of the system of internal control has been informed by the Senior Leadership Team who have responsibility for the development, implementation and maintenance of the internal control framework: the work of the committees established by the Board; the Board's internal auditors and the feedback and views of external auditors set out in their annual audit letter and other reports. The processes in place to maintain and review the effectiveness of the system of internal control includes- INTERNAL CONTROLS AND TRUSTEES RESPONSIBILITIES Review of effectiveness of system of internal control The Board put mechanisms in place for the review, on an ongoing basis, of the effectiveness of the systems of internal control operating across all functions of the Charity. The system of internal control is designed to manage, rather than eliminate, the risk of failure to achieve business objectives, and to provide reasonable. and not absolute. assurance against fraud. material misstatement or loss. Q The maintenance of an overview of the overall position with regard to internal control by the Board and its Committees through routine reporting processes and the engagement of all Board members in the development and maintenance of the Board Assurance Framework and CorF)orate Risk Register; The embedding of the Assurance Framework and the receipt of internal and external reports on the internal control processes by the Audit, Risk and Finance Committee., and O Audit, Risk and Finance Committee oversight of audit, risk management and assurance arrangements. We are satisfied that the mechanisms in place to assess the effectiveness of the system of internal control are working well and that we have the right balance between the level of assurance received from the Senior Leadership Team, Board and Board Committee arrangements and internal audit services. In meeting its responsibilities. the Board has adopted a risk-based approach to establishing and maintaining internal controls, which are embedded within day-to-day management and governance processes. This approach includes the regular evaluation of the nature and extent of risks to which the company is exposed. The process for identifying. evaluating and managing the significant risks faced by the group is ongoing. It has been in place throughout the period commencing l April 2023 up to the date 56 brunelcare.org.uk Internal audit Internal audit provides the Board through the Audit and Risk Committee with a flow of assurance on the system of internal control. A programme of audit work was commissioned in 2023-24 and the scope of this work was agreed by the Audit. Risk and Finance Committee and was focussed on significant risk areas and local improvement priorities. In total 8 internal audit assignments were undertaken during the year., Actions Agreed status Opinion Reporting Data Integrity- Property Safety Reasonable Assuran Final Report Agfeed Payroll Partial Assurance Final Report Agreed ii Data Quality Reasonable Assuran Final Report Agreed Debt Recovery Reasonable Assurance Final Report Agreed Flisk Management Fleasonable Assurance Final Report Agreed Medicines Management Partial Assurance Final Report Agreed Follow Up - Payroll Reasonable Progress Final Report Agreed In addition, an advisory audit of Contract Management and Valve for Money was completed. A series of recommendations to strengthen the controls in place were made by tho auditors and regular updates on the progress made to implement these are reported to the Audit, Risk and Finance Committee. The overall opinion by the Head of Internal Audit on governance, risk management and control is a function of this risk based audit programme and contributes to the picture of assurance available to the Board in reviewing effectiveness and supporting our drive for continuous improvement. Annual Report and Financial Statements 2023-24 57 THE HEAD OF INTERNAL AUDIT HAS CONCLUDED: The Trustees of Brunelcare (who are also Directors of the charity for the purposes of company law) are responsible for preparing the Strategic Report, the Trustees Annual Report and the Financial Statements in accordance with relevant law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and frdir view of the state of affairs of the charitable company and of the incoming resources and application of resources including the income and expenditure. of the charitable company for that period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and apply them consistently, observe the methods and principles in the Charities Statement of Recommended Practice ISORP); make judgments and estimates that are reasonable and prudent: state whether applicable UK accounting standards have been followed. subject to any departures disclosed and explained in the financial statements: and prepare the accounts on a going concern basis unless it is inappropriate to presume that the Charity will continue in business. The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the accounts comply with the Companies Act 2006 [Scotland: the Charities and Trustee Investment {Scotland) Act 2005 and the Charities Accounts Iscotlandl Regulations 20061. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Based on work carried out in 2023-24: 'The orgonisotion has an adequote and effective framework for risk management, governonce ond internol control. However, our work has identified further enhancements to the framework of risk monagement. governance and internal control to ensure that it remains odequote and effective.. As well as the audit assignments referenced above, the following areas helped to inform the Head of Internal Audit's opinion.. Acceptance of internal audit management actions: and Implementation of internal audit management actions While Brunelcare's internal auditors RSM did not deliver a specific review of Brunelcare's governance arrangements, consideration was given to assurance reporting and monitoring arrangements in each audit, and they attended each meeting of the Audit, Risk and Finance Committee. where they observed the review of the risk register. stress testing and financial performance monitoring reports. Statement of the Board's responsibilities in respect of the Board's report and the financial statements The Trustees of Brunelcare (who are also Directors of the Charity for the purposes of company lawl are responsible for preparing the Strategic Report, the Trustees Annual Report and the Financial Statements in accordance with relevant law and regulations. 58 brunelcare.org.uk Financial statements are published on the Charity's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements. which may vary from legislation in other jurisdictions. The maintenance and integrity of the Charity's website is the responsibility of the trustees. The trustees, responsibility also extends to the ongoing integrity of the financial statements contained therein. Trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Going Concern decarbonisation costs rent and service charge receivable liquidity the Charity's ability to withstand other adverse scenarios such as higher interest rates. the loss of care contracts and number of void properties The Board believes the Charity has sufficient funding in place and expects it to be in compliance with its debt covenants even in severe but plausible downside scenarios. Consequently. the Directors are confident that the Charity will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis Disclosure of Information to auditors The financial statements have been prepared on a going concern basis. which the Trustees consider to be appropriate for the following reasons. The Charity prepares a 30-year business plan which is updated and approved on an annual basis. The most recent business plan was approved in June 2024 by the Board. As well as considering the impact of a number of scenarios on the business plan, the Board used a stress testing framework to carry out sensitivity testing against the base plan. The stress testing impacts were measured against loan covenants and peak borrowing levels compared to agreed facilities, with potential mitigating actions identified to reduce expenditure. The Board. after reviewing the Charity's budgets for 2024-25 and the medium term financial position as detailed in the 30-year business plan. including the ongoing impact of high inflation and recruitment challenges, is of the opinion that the Charity has adequate resources to continue in business for the foreseeable future. In reaching this conclusion, the Board has considered.. inflation maintenance costs The Trustees who held office at the date of approval of this report confirm that. so far as they are each aware, there is no relevant audit information of which the company's auditors are unaware", and each director has taken all the steps that he/she ought to have taken as a director to make himselflherself aware of any relevant audit information and to establish that the CoMpan￿S auditors are aware of that information. Approval The Trustees reF)ort. including the Strategic Report and Financial Statements. was approved by the Trustees at a Board meeting held on 18 September 2024 and signed on its behalf by. Graham Russell - Chair 18 September 2024 Annual Report and Financial Statements 2023-24 59 09 INDEPENDENT AUDITOR'S REPORT Independent auditor's report to the members of Brunelcare Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) IISAS {UKII 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. Opinion We have audited the financial statements of Brunelcare I'the charity.) for the year ended 31 March 2024 which comprise the statement of comprehensive income, statement of changes in equity, statement of financial position, cash flow statement and 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 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 statemen O give a true and fair view of the state of the charity's affairs as at 31 March 2024 and of the charity's income and expenditure, for the year then ended: O have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice: and O have been prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022. Conclusions relating to going concern In auditing the financial statements. we have concluded that the trustee's 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. 60 brunelcare.org.uk Other information sufficient and proper accounting records have not been kept by the parent charity. or the financial statements are not in agreement with the accounting records and returns" or The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report. other than the financial statements and our auditor's report thereon. 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. we have not received all the information and explanations we require for our audit. Matters on which we are required to report by exception Our responsibility is to read the other information and, in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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. As explained more fully in the Board, responsibilities statement set out on page 58. the Board is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements the trustees are responsible for assessing the charity's ability to continue as a going concern. disclosing. as applicable. matters related to going concern and using the going concern basis of accounting unless the Board either intend to liquidate the charity or to cease operations. or have no realistic alternative but to do so. 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 Companies Act 2006 requires us to report toyou if, in our opinion: the information given in the financial statements is inconsistent in any material respect with the trustees, report., or Annual Report and Financial Statements 2023-24 61 Auditor's responsibilities for the audit of the financial statements which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011, The Statement of Recommended Practice ISORP) for social housing providers 2018: United Kingdom Generally Accepted Accounting Practice including Reporting Standard 102 and the Accounting Direction for Private Registered Providers of Social Housing 2022. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. 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 a5ways detect a material misstatement when it exist& 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. In addition. we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation {GDPRI, Health and Safety and Employment legislation. Auditing standards limit the required audit procedures to identify non- compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud. to be within the override of controls by management and the timing of recognition of care. support and other contract income. Our audit procedures to resF)ond to these risks included enquiries of management and the Audit. Risk and Finance Committee about their own 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. Extent to which the audit was considered capable of detecting irregularities, including fraud I rregu larities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities. whether due to fraud or error, and discussed these between our audit team members We then designed and performed audit procedu res responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. We obtained an understanding of the legal and regulatoryframeworks within 62 brunelcare.org.uk identification and assessment of the risks of irregularities, sample testing on the posting of journal4 reviewing accounting estimates for biases. reviewing internal audit reports. designing audit procedures over the timing of the above income streams reviewing regulatory correspondence and reading minutes of meetings of those charged with governance. Use of our report This report is made 501ely to the charity's members, as a b¢)dy. in accordance with Chapter3 of Part16 of the Companies Act 2006 and section128 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so thatwe 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 purpo*. 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. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements. even though we have properly planned and performed our audit in accordancewith auditing standards For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements. the less likely the inherently limited procedures required by auditing standards would identify it. In addition. as with any audit. there remained a higher fisk o.f non-detection of irregularities. as the* may involve collusion, forgery. intentional omissions, misrepresentations. or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non- compliance with all law￿ and regulations. UE LLP. Crowe U.IC LLP Statutory Auditor St James House St James Square Cheltenham. GL503PFI Date: 20 September 2024 Annual Report and Financial Statements 2023-24 63 @¥av8supeThliibp¥ brunelcare.org.uk 10 STATEMENT OF COMPREHENSIVE INCOME Statement of Comprehensive Income For the year to 31 March 2024 Notes 2023-24 2022-23 £000 £000 Turnover 48.030 43,270 Operating costs Gain on disposal of investment property Operatlng surplus 35.8 {43.267} 142,022) 87 13 4,763 lJ35 Interest receivable 80 I nterest payable Surplus for the year 17731 4J46 (6151 800 Actuarial gain/lloss) in respect of pension schemes Total comprehensive income for the year {73i} (6211 3.615 179 All the above results derive from continuing operations. These financial statements were approved by the Board on 18 September 2024 and signed on its behalf ty. QA Ls*cu Graham Russell Chair Mandy Collins Company Secretary The accompanying notes form part ofthese financial statements. Annual Report and Financial Statements 2023-24 65 Statement of Changes in Equity For the year to 31 March 2024 Accumulated capital Revenue Reserve £000 £000 £000 Total funds at l April 2022 Surplus for the year Other comprehensive income Transfers 1.667 27.963 29,630 800 (6211 (621) (61} 1,606 61 Total funds at 31 March 2023 28,203 29,809 Surplus for the year Other comprehensive income Transfers 4,346 1731) 17311 161) 61 Total funds at 31 March 2024 31.879 33,424 Y4 66 brunelcare.org.uk 11 STATEMENT OF FINANCIAL POSITION Statement of Financial Position Statement of financial position at 31 March 2024 Notes 2024 2023 £000 £000 Fixed Assets Tangible fixed assets- properties Tangible fixed assets- other assets Intangible fixed assets Total io 54,349 54,268 ii 2,115 1,589 12 605 603 7.069 56h60 Current assets Properties held for sale Other current assets 14 Debtors 15 . 4,192 3.418 Cash at bank and in hand 10.395 8,882 14.685 1164S Creditors: amounts falling due within one year 16 18,276) 18,3081 Net current assets 4J37 Total assets less current liabilltles 63,478 60.797 Creditors: amounts falling due after more than one year 17 126.T77) 127.8011 Provision& pensions deficit (3.2T/) 13,187} Net assets 29.809 Annual Report and Financial Statements 2023-24 67 Statement of Financial Position (cont) Statement of financial position at 31 March 2024 Notes 2024 2023 £000 £000 Reserves Designated reserves 1.545 1,606 Revenue reserves 31,879 28,203 Total fund5 33.424 29.809 These financial statements and accompanying notes were approved by the Board onl8September2024and signed on their behalfr. Graham Russell Chair Mandy Collins Company Secretary The accompanying notes form part of these financial statements. 68 brunelcare.org.uk 12 CASH FLOW STATEMENT Cash Flow Statement Cash flow statement for the year to 31 March 2024 Notes 2023-24 2022-23 £000 £000 Net cash inflow from operating activities Note A 4.481 2,702 Cash flow from investing actlviti•s Interest received 328 80 Purchase of tangible fixed assets Purchase of other fixed assets 0,754) 17361 11.030) (795} Proceeds from sale of tangible fixed assets 554 2.114 0,608) 369 Cash flow from financing artivities Interest paid Repayments of borrowing 1636) 1724) (5901 1714) OJ60) DJ04J Net change in cash and ¢ash equlvalents 7￿15 1,767 Cash and cash equivalents at the start of theyear 8.882 7,115 Cash and cash equivalents at the end of the year 10.395 8,882 Annual Report and Financial Statements 2023-24 69 Reconciliation of operating surplus to net cash inflow from operating activities for the year to 31 March 2024 2023-24 2022-23 Note A £000 £000 Surplus of the year Adjustment for non-cash item& Depreciation and impairment of tangible fixed assets 4,346 800 1,806 1,699 Amortisation of intangible fixed assets Decrease/lincrease) in stock Increase in debtors 58 79 14) 12061 872 1502} (1481 (321) 1641) {Decreaseifincrease in creditors Amortisation of government grants Pension costs less contributions payable Adjustments for investing and financing artivities Proceeds from the sale of tangible fixed assets Interest payable Interest receivable 13211 (6591 ($36} 773 193) 615 1356) (80) Net cash inflow from operating activities 2.702 Statement of changes in net debt For the year to 31 March 2024 Cash and cash equivalents Borrowings lii,T701 724 Total Net debt at l April 2023 Cash flow in the year Net debt at 31 March 2024 8,883 (2,887) 2.236 1.512 IOJ95 Di.046) (651) 70 brunelcare.org.uk 13 NOTES TO THE FINANCIAL STATEMENTS l. Legal Status Brunelcare is a charity registered with the Charities Commission. under the Companies Act 2006, and with the Regulator for Social Housing as a social landlord. It is a company limited by guarantee, registered in England and Wales and. as such. has no share capital. The liability of the members, in the event of winding up, is limited to an amount not exceeding £1 per member. Brunelcare meets the definition of a public benefit entity. 21 Accounting estimates and judgements The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenditure during the year. The organisation based its estimates and assumptions on parameters available at the time the financial statements were prepared. Existing circumstances and assumptions about future developments may change due to market circumstances, legislation or other circumstances beyond the organisation's control. Such changes are reflected in the assumptions and estimates when they occur. The judgements on estimated useful lives of property. plant and equipment have had the most significant effect on amounts recognised in the financial statements. 2. Accounting policies Zl. Basls of accounting The financial statements have been prepared in accordance with Financial Reporting Standard 102 - the applicable financial reporting standard in the UK and Republic of Ireland IFRS1021 and the Statement of Recommended practice: Accounting by Registered Social Housing Providers 2018 and comply with the Accounting Direction for Private Registered Providers of Social Housing 2019. 23. Estimated lives of Property, Plant and Equipment At the date of capitalising tangible fixed assets. the organisation estimates the useful life of the asset based upon management's judgement and experience. The presentation currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest £l.000. The accounting policies set out below have, unless otherwise stated. been applied consistently to all periods presented in these financial statements. Annual Rep)rt and Financial Statements 2023-24 Z& Impairment of trade and other recelvables believes that Brunelcare is well placed to manage their business risks successfully. The Board considers that Brunelcare has adequate resources to continue in operational existence for the foreseeable future. The Board therefore continues to adopt the going concern basis in preparing these financial statements. The company makes an estimate of the recoverable value of trade and other account receivables. When assessing the impairment. management considers factors including the current credit rating of the account, the ageing profile and historical experience. See note 15 for the net position of debtors and associated provision. 25. Valuatlon of housing properties The Company tests annually whether there are any impairment triggers that would require the company to undertake a full impairment review of housing properties or other cash generating unit activities under FRS 102. Z8. Turnover Turnover represents housing property rental income and service charges receivable, care home fees, day centre and domiciliary care fees receivable, fees receivable for home care services provided based on care hours provided and income from donations, and Social Housing Grant amortisation. Z9. Revenue Recognition Rental income is recognised from the point when properties under development reach practical completion or otherwise become available for letting. Income from first tranche sales and sales of properties built for sale is recognised at the point of lega5 completion of the sale. Revenue grants are receivable when the conditions for receipt of agreed grant funding have been met. Charges for support services funded under Supporting People are recognised as they fall due under the contractual arrangements with Administering Authorities. The recoverable value is assessed as the higher of fair value or value in use. The SORP 2018- Social Housing Providers considers depreciated replacement cost as a reasonable estimate for value in use taking into consideration the service potential of social housing. The valuation of housing properties at the year-end has therefore been assessed using depreciated replaced cost. These calculations require the use of assumptions and estimates. in particular in relation to the identification of cash generating units, expected replacement cost and the service potential of the asset. ZIO. Value added tax 2.6. Measurement convention Brunelcare charges value added tax (VAT) on some of its income and is able to recover part of the VAT it incurs on expenditure. The financial statements include VATto the extent that it is suffered by Brunelcare and not recoverable from HM Revenue and Customs. The balance of VAT payable or recoverable at the year-end is included as a current liability or asset. he financial statements are prepared on the historical cost basis with Investrnent Properties and the Pension Deficit marked to Fair Value based on external valuation& Z7. Going Concern Brunelcare has sufficient financial resources based on forecasts and current expectations of future sector conditions. As a consequence. the Board 72 brunelcare.org.uk 2.11. Land and buildings Works to existing properties are works which result in an increase in the net rental income. such as a reduction in future maintenance costs. or result in a significant extension of the useful economic life of the propety in the business. Subsequent additions have been. and future additions will be. taken in at cost, and a policy of periodic valuation has not been adopted. 2.IZ Investment propertie5 Investment properties are fixed assets that we intend to sell for a capital gain. They are held at fairvalue and revalued annually until sale by an experienced third-party valuer. 2.13. Shared Ownership properties held for sale the buyback. Buybacks are recognised in the accounts as a creditor when the deed of surrender has been received. Cash sales are recognised on completion with any sale proceeds included in Turnover and Costs of sales in expenditure. Impalrment Housing properties which are depreciated over a period in excess of SO years are subject to impairment reviews annually. Other assets are reviewed for impairment if there is an indication that impairment may have occurred. Where there is evidence of impairment. fixed assets are written down to their recoverable amount. Any such write down is charged to the income and expenditure account. Shared ownership first tranche sales, completed properties for outright sale and property under construction are valued at the lower of cost and net realisable value. Cost comprises materials, direct labour and direct development overheads. Net realisable value is based on estimated sales price after allowing for all further costs of completion and disposal. Shared ownership properties are split proportionally between current and fixed assets based on the element relating to expected first tranche sales. The first tranche proportion of shared ownership properties is classed as a current asset in the Balance Sheet. Related sale proceeds will be included in Turnover in the year of sale. The remaining element of shared ownership properties is held in fixed assets and included in Shared Ownership Properties Held for Letting. Z14. Leasehold properties held for sale Buyback properties are valued at current market rates by an independent estate agent. prior to buyback The* are stated in the financial statements at the cost of Annual Report and Financial Statements 2023-24 73 2.l& Depreclatlon Social housing properties are depreciated on a straight-line basis over their estimated useful lives under component accounting. These components are: Z17. Other fixed assets Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is charged on a straight-line basis over their useful estimated lives.. Component Useful Useful Structure 75 years Computer equipment 4 years Pitched roof 50 years Motor vehicles 5years Flat roof 15years Office equipment 5years Doors & windows Fixtures and fittings 30 years 5years Bathrooms Isyears Offices 75 years Kitchens 10 years 118. Intangible fixed assets Intangible fixed assets relate to computer software and are stated at historical cost, less accumulated amortisation and any provision for impairment. Amortisation is charged over the estimated useful economic life of up to seven years. Z19. Capitalisatlon Ilmlt The'de minimis, limit forthe capitalisation of purchased fixed assets was £l.000 per item during the year. 220. Social housing grants Social housing grant (SHGI is receivable from Homes England (formerly the Homes and Communities Agencyl and is utilised to reduce the capital costs of housing properties. including land costs. SHG due or received in advance is included in creditors. SHG received in respect of revenue expenditure is credited to the income and expenditure account in the same period as the expenditure to which it relates. Wiring 30 years Heating 20 years Alarm/Call System 15 years Lifts 25 years Ground Works 30 years Leasehold land Lease Term Freehold land is not depreciated. Care homes are depreciated on a straight-line basis over their estimated useful lives under component accounting. Land is not depreciated. The land element for each property has been estimated at 15% of the total value, where not known. brunelcare.org.uk SHG is subordinated to the repayment of loans by agreement with the Homes England. SHG released on sale of a property may be repayable but is normally available to be recycled and is credited to a Recycled Capital Grant Fund and included in the balance sheet in creditor& Where Brunelcare enters into a lease, which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a 'finance lease,. The asset is recorded in the balance sheet as a tangible fixed asset and is depreciated over its estimated useful life or the term of the lease, whichever is shorter. 2.21. Other capital grants These include grants from local authorities and other organisations. Other grants are initially recognised at fai r value as a long-term liability, specifically as deferred grant income and released through the statement of consolidated income as turnover over the life of the structure of housing properties in accordance with the accrual method applicable to social landlords accounting for housing properties at cost. Grants in respect of revenue expenditure are credited to the statement of consolidated income in the same period as the expenditure to which they relate. 221 Interest payable Interest is capitalised on borrowings to finance developments to the extent that it accrues in respect of the period of development. if it represents either.. a) Interest on borrowings specifically financing the development programme after deduction of interest on social housing grant {SHG) in advance., or b) Interest on borrowings of the company as a whole after deduction of interest on SHG in advance to the extent that they can be deemed to be financing the development programme. Future instalments under such leaseg net of finance charges, are included within creditors. Rentals payable are apportioned between the finance element. which is charged to the income and expenditure account, and the capital element. which reduces the outstanding obligation for future instalments. All other leases are accounted for as 'operating leases. and rentals are charged to the income and expenditure account on a straight-line basis over the life of the lease. 124 Service charge sinking funds Included within the housing units managed by the organisation are ls leasehold units. Sinking funds are maintained for the two sites involved to cover medium-term cyclical maintenance. In addition, a maintenance fund is maintained to cover day-to-day services. Within Community Services there are $6 units which also have a sinking fund. Brunelcare is a member of the Social Housing Pension Scheme defined contribution section. In the year was also a member of the defined benefit section which provided benefits based on final pensionable pay or career average salary for some employees but was closed to new and existing staff in March 2019. For the Social Housing Pension Scheme defined benefit section, scherne assets are measured at fair values. Other interest payable is charged to the income and expenditure account in the year. Annual Report and Financial Statements 2023-24 75 Scheme liabilities are measured on an actuarial basis using the projected unit credit method and are discounted at appropriate high-quality corporate bond rates. The net surplus or deficit is Presented separately from other net assets on the statement of financial position. A net surplus is recognised only to the extent that it is recoverable by the Group through reduced contributions or through refunds from the plan. The current service cost and costs from settlements and curtailments are charged against operating surplus. Past service costs are recognised in the current reporting period. Interest is calculated on the net defined benefit liability. Remeasurements are reported in other comprehensive income.. 12& Supporting People Charges for support services funded under Supporting People are recognised as they fall due under the contractual arrangements with Administering Authorities. 1992, to the extent that such income or gains are applied exclusively to charitable purFX)ses. 229. Liquid resources Liquid resources are readily disposable current asset Investmen￿ They include some money market deposits. held for more than 24 hours which can only be withdrawn without penalty on maturity or by giving notice of more than one working day. Z30. Reserves Brunelcare establishes restricted reserves for specific purposes where their use is subject to external restrictions and designated reserves where reserves a re earmarked for a particular purpose. Brunelcare has a designated reserve which is the Accumulated Capital Funds reserve. Donations to capital appeals are accounted for as non-operating, ordinary activities in the Income and Expenditure Account and then taken to the designated Accumulated Capital Funds reserve. Transfers from the reserve are then made annually in proportion to the depreciation charge for the assets, which were purchased using the proceeds of the appeal. 127. Cyclical repairs and maintenance Due to the number of properties held and the establishment of regular programmes of repair and maintenance. Brunelcare does not make provision for future works but charges actual costs incurred to the income and expenditure account unless capitalised under component accounting. 228. Tax Ir r,, Brunelcare is considered to pass the tests set out in Paragraph I Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 11 brunelcare.org.uk 3. Turnover, cost of sales operating costs and operating surplus Operating Operating surplusl surplus/ Ideficit) (deficit) 2022-23 TABLE A Cost of Operating sales costs Turnover £000 £000 £000 £000 Soclal houslng lettings (Table B) Other s￿la1 houslng activity Charges for support services 11300 (9.4881 1.812 821 359 P28} 145 Other social housing {6} Actlvlties other than social housing Care homes 28,712 (26,1281 2584 162 Market rent 79 (851 {71 Other 7580 {384) (6.9541 242 133 Total 48M30 (384) (4883) 4.763 Gain on disposal of investment property 87 Total 48.030 (384) (41883) Other non-social activities in the table consist mainly of delivering care to older people in their own homes. Annual Report and Financial Statements 2023-24 TABLE B General Supported Shared need5 Housing ownership Total 2023-24 Total 2022-23 £000 £000 £000 £000 £000 Turnover from social housing lettings Rent receivable net of identifiable service charges Service charges receivable 6.163 28 6211 5,592 4396 4,472 3,772 Other income Z75 21 296 123 Amortised Government grants 240 237 Other grants amortised 69 12 81 81 Turnover frorn S￿la1 houslng lettings Expenditure on social housing lettings 26 140 iiJoo 9,805 Management services Z037 2.108 2,069 Service charge costs 4.057 4,149 4,094 Routine maintenance 1.135 20 1,156 862 Planned maintenance 433 443 316 Major repairs expenditure 12 93 Depreciation 1,287 1.133 Bad debts Other costs 264 io Z75 413 Operating expenditure on social housing lettings Operating surplus on srtial housing letting5 Void losses 9216 8,984 o) 87 Void losses are rental income lost as a result of property not being let, although it is available for letting. 78 brunelcare.org.uk 4. Accommodation in management and development At the end of theyear units owned for each class of accommodation were: 2023-24 2022-23 Soclal housing Social rent general needs housing Social rent supported housing and housing for older people Low-cost home ownership Social lea*hold units owned I,ioo I,ioo 24 24 15 15 1.143 Soclal houslng units owned but not managed Social housing units owned but not managed Non-50cial housing Total non-social housing rental units owned Non-social rental housing units managed but not owned Non-social leasehold units owned io io 301 301 88 88 56 Annual Report and Financial Statements 2023-24 5. Operating surplus 2023-24 2022-23 £000 £000 Depreclation of fixed assets 1,864 1,778 Operating lease rentals Plant and machinery Land and buildings Vehicles 188 247 922 839 59 69 Auditor's remuneration Audit of these financial statements 72 Other services 6. 1 nterest receivable and other income 2023-24 2022-23 £000 £000 Income from short-term deposits 80 356 7. Interest payable and similar charges 2023-24 2022-23 £000 £000 Bank loans and overdrafts 636 536. Pension remeasurement interest 137 79 615 80 brunelcare.org.uk 8. Employees 2023-24 2023-24 Number Number Average monthly number of employees 1,712 1,118 Average monthly employees. expressed as ￿ES 919 £000 £000 Employee costs Wages and salaries Social security costs Pension costs 24,087 21,640 2,084 627 553 ,045 The average monthly employees. expressed as full-time equivalents. is calculated from monthly data collected by Brunelcare's HR team. Brunelcare has the following numbers of staff (including directors) who received emoluments (excluding pension) of £60.000 or more. shown in bands of £lO.000.' 2023-24 2022-23 Number Number £60.000 to £70,000 £70,000 to £80.000 £80,000 to £90.000 £IOO,000 to QlO,000 20,000 to £130,000 £130,000 to Q40.000 Annual Rewrt and Financial Statements 2023-24 81 9. Board members and executive directors The key management personnel are deemed to be the board members and executive di rectors. Non-executive board members received honorarium payments totalling £8,047 during the year. Payment was introduced during 2023-24 in recognition of the complexity of the regulatory regime. property. landlord and finance functions and as the holders of substantial responsibilities in regard to safety of tenants and those receiving care. The Charity Commission agreed to a clause being included in Brunelcare's Articles of Association that allowed the payment of Trustee The emoluments of the highest paid executive director, the Chief Executive. excluding pension contributions. was £125,55512023: £126.218}. Pension 2023-24 2022-23 contributions total total Remuneration £000 £000 £000 £000 Oona Goldsworthy 126 130 130 126 130 iJo The Chief Executive is a member of the Charity's defined contribution pension scheme on the same basis as other staff. The total emoluments of the executive directors, including pension contributions, were £569.871 for the year ended 31 March 202412023: £SS1,789). The £569.871 was made up of salaries of £552,766. pension contributions of ￿6.570. and Benefits in Kind of £59S. 82 brunelcare.org.uk 10. Tangible fixed assets- properties ousing owner.s 202.3-24 services £000 £000 £000 £000 Cost At April 2023 65351 1547 482 17,687 85,067 Additions in year Disposals (2361 At balance sheet date 66￿8 D•preciation At April 2023 Charge for the year Released on disposal At balance sheet date p5￿) Net book value 1.423 332 1.755 1236) 18,019 86￿86 124.5Z7} {222) {81) {9) 15.9691 13471 (30.799) 11,656) 278 0,249} 278 (si) (90) {6J16) (32237) At April 2023 At balance sheet date 40.980 11,718 54268 IX74 392 11,703 54J49 4r Annual Report and Financial Statements 2023-24 11. Tangible fixed assets- other assets Fixtures & Computer Fittings equipment Motor vehicles 2023-24 total Offices £000 £000 £000 £000 Cost At April 2023 I,OCM) 2,694 1.108 126 4,928 Additions in year 155 $14 676 At balance sheet date 849 1,622 126 5.604 Depreciation At April 2023 (118) (14) (2.628} (468) 0251 13,339) Charge for the year At balance sheet date 1321 1103) 1150) 032) 660) 26) (3h89) Net book value At Aprll 2023 At balance sheet date 1.589 875 i.o 1115 84 brunelcare.org.uk 12. Intangible fixed assets Computer software 2023-24 total £000 £000 At April 2023 851 851 Additions in year 60 At balance sheet date 911 Amortlzatlon At April 2023 {2481 1248) Charge for the year 158) 1581 At balance sheet date (306) (306) Net book value At April 2023 603 At balance sheet date 605 605 Annual Report and Financial Statements 2023-24 85 13. Investment properties 2023-24 2022-23 £000 £000 Land cost at start of period 2.000 Disposals in the year (2.000} The land held as an investment property was two-thirds of the value of a plot of land in Nailsea. North Somerset. that was gifted without restriction to Brunelcare and St Peter's Hospice by the late Mrs Mary Sophia Shepstone. Brunelcare was granted planning permission and sold the land in May 2022. 14. Properties held for sale 2023-24 2022-23 £000 £000 Properties held for sale 341 97 341 These are leasehold properties within the Woodland Court retirement village. 15. Debtors 2023-24 2022-23 £000 £000 Rents, fees and service charges receivable 2,700 3,274 Less provisions for bad debts {7341 11,4501 1.824 Prepayments Accrued income 1,228 374 998 1,220 4192 3,418 86 brunelcare.org.uk 2023-24 2022-23 £000 £000 Rent arrears Housing current tenants Housing former tenants Extra care current tenants 93 io 40 Extra care former tenants 16 Gross %Kial housing rent arrears 159 159 16. Creditors: amounts falling due within one year 2023-24 2022-23 £000 £000 Bank loans due within one year 717 724 Trade creditors 696 760 Rent and service charges received in advance Other taxation and social security Payroll costs Other creditors 1335 1373 798 747 2.065 1,666 491 623 Accruals & Deferred income 2.174 2.41S 8276 Annual Report and Financial Statements 2023-24 87 17. Creditor% amounts falling after more than one year 2023-24 2022-23 £000 £000 Bank loans 10330 11,046 Other long-term creditors Social housing grant Other grants Recycled capital grant fund Pension liability 614 598 10.957 11.197 4,791 4,873 85 85 26.Tn 11,801 18. Deferred capital grants Social Housing Grants Other Grants £000 £000 Balance brought forward 11.435 4,872 Amortised in the year Balance carried forward {240) 11,195 (81) 4791 19. Bank loan analysis 2023-24 2022-23 £000 £000 Bank loans due within oneyear Bank loans due after one year 717 724 10.329 ii.046 ii.770 The bank loans are secured by individual charges over individual properties. 88 brunelcare.org.uk The bank loans are repayable by instalments at fixed rates of interest ranging from 3.5% and 11.7% with three loans totalling £4.171k on Libor rates. Based on the lender's earliest repayment dates. borrowings are repayable as follows: 2023-24 2022-23 £000 Within one year Between two and five years After five years 717 724 2.674 2,903 7.655 8,143 ii,Tro 20. Financial commitments Capital expenditure commitments were as follows: 2023-24 2022-23 £000 £000 Authorised by the Board but not contracted 10.268 3,662 Contracted but not delivered by the year-end 285 271 The above commitments will be financed using existing cash reserves and cash generated in the year. Annual Report and Financial Statements 2023-24 89 The future lease payments payable under non-cancellable leases are as follows.. 2023-24 2022-23 £000 £000 Land and buildings Less than one year One to five years Beyond five years 905 883 3.621 3.449 15,583 14,850 20,109 19,182 Office equipmenk computers and vehicles Less than oneyear One to five years Beyond five years 206 51 532 57 12 760 90 brunelcare.org.uk 21. Contingent liabilities There were 9 Woodland Court properties remaining as at 31 March 2024which are owned by the current residents where their lease includes a buyback obligation clause. As such, Brunelcare may be obliged to buy back these properties at some future date and the properties would then be resold. On 31 March 2024 no buyback clauses had been activated. These transactions are uncertain and therefore an amount has not been disclosed12023: nil}. No adjustment has been made in the financial statements in respect of this potential issue. Brunelcare is aware of the Virgin Media v NTL Pension Trustees11 Limited Court of Appeal judgement which may give rise to adjustments to the scheme. At present the legal process is incomplete and therefore we are unable to quantify any potential liabilities. I Social Housing Pension Scheme - Defined Benefrt section 22. Related parties The Social Housing Pension Scheme, managed byThe Pensions Trust. is a related party. The details of the relationship are set out in Note 23. The Charity participates in the scheme. a multi-employer scheme which provides to some 500 non-associated employers. The scheme is a defined benefit scheme in the UK and The Pension Trust, which administers the Social Housing Pension Scheme, has undertaken an exercise to disaggregate the assets and liabilities of the fund between the various participating members so that. for both financial years, Brunelcare's full share of the assets and liabilities are shown on the balance sheet. The movement in the year comprises the movements between the opening and closing scheme assets and liabilities attributable to Brunelcare. 23. Pension schemes The Charity participates in two defined benefit pension schemes. the Social Housing Pension Scheme and the Growth Plan. both of which are multi- employer final salary scheme& Both schemes are now closed to members. Brunelcare has been notified by the Trustee of the Social Housing Pension Scheme that it has performed a review of the changes made to the Scheme's benefits over the years and the result is that there is uncertainty surrounding some of these changes. The Trustee has been advised to *ek clarification from the Court on these items. This process is ongoing and the matter is unlikely to be resolved before the end of 2025 at the earliest. It is recognised that this could potentially impact the value of Scheme liabi lities, but given the current level of uncertainties. it is not possible to calculate the impact of this issue. particularly on an individual employer basis, with any accuracy at this time. Annual Report and Financial Statements 2023-24 91 The movement in the year in the pension scheme on the defined benefit approach is: Fair value of plan assets• present value of defined benefit obligation and defined benefit asset/(liability) 31st March 2024 31st March 2023 £000 £000 Fair value of plan assets 14,388 14,588 Present value of defined benefit obligation Deficit in plan Unrecognised surplus Defined benefit liabilty to be recognised 17,665 17,775 13,187) (32T7) (3,187) Reconciliation of opening and closing balances of the defined benefit obligation 2023-24 2022-23 £000 £000 Defined benefit obligation at start of period Expenses 17,775 25,490 35 37 Interest expense 851 702 Actuarial gains due to scheme experience (251 15701 Actuarial gains due to changes in demographic assumptions Actuarial gains due to changes in financial as-sumptions {2161 1451 14SI 17,189} Benefits paid and expenses Defined benefit obli9ation at the end of the period o) (650) 17.665 17.TlS 92 brunelcare.org.uk Reconclllatlon of opening and closing balances of the fair value of plan assets 2023-24 2022-23 £000 £000 Fair value of plan assets at start of period 14,588 22,265 Interest income 714 623 Experience on plan assets (excluding amounts included in interest income) (loss) Employer contributions Benefits paid and expenses Fair value of plan assets at the end of the period 0,0171 18,479) 813 829 Iwoi 1650) 14J88 74￿88 Defined benefft costs recognised in Statement of Comprehensive Income 2023-24 2022-23 £000 £000 Expenses 35 37 Net interest expense Defined benefft costs Included In the Statement of Comprehensive Income 137 79 Annual Report and Financial Statements 2023-24 93 Defined benefrt costs recognised in Other comprehensfve Income 2023-24 2022-23 £000 £000 Experience gains and losses arising on plan liabilities- gain Experience gains and losses arising on plan liabil ities - (loss) Effects of changes in the demographic assumptions underlying the present value of the defined benefit obligation - gain Effects of changes in the financial assumptions underlying the present value of the defined benefit obligation - gain Total actuarial gains and losses (before restriction due to some of the surplus not being recognisable) - (loss) Effects of other changes in the amount of surplus that is not recoverable (excluding amounts included in the net interest cost} - gain/lloss) Total amount recognlsed In Other Comprehensive Income - (loss) 0.017) 18,479) 25 570 216 45 45 7.189 (675) (675) 94 brunelcare.org.uk Assets 31st March 2024 31st March 2023 £000 £000 Global equity 1,434 272 Absolute return 562 158 Distressed opportunities Credit relative value 507 442 471 551 Alternative risk premia Private Equ ity Emerging markets debt Risk sharing Insurance-linked securities 457 27 12 186 78 842 1,074 74 368 Property Infrastructure 578 628 1.454 1,666 Private debt 566 649 Opportunistic illiquid credit High yield Opportunistic credit Cash 562 624 51 283 ios Long lease property Secured income 93 430 670 Liability driven investment 5,856 6,719 Currency hedging Net current assets {6) 28 37 Total assets 14J88 I4￿88 None of the fair values of the assets shown ab(we include any direct investments in the employer's own financial instruments or any property occupied by. or other assets used by, the employer. Annual Report and Financial Statements 2023-24 95 Key assumptions 31st March 2024 31st March 2023 % per annum % per annum Discount rate 4.90 4.87 I nflation IRPII I nflation (CPI) Salary growLh 3.15 3.19 2.78 2.75 3.78 3.75 Allowance for commutation of pension for cash at retirement 75% of maximum allowance 75% of maximum allowance The mortality assumptions adopted at 31st March 2024 imply the following life expectancies: Life expectancy at age 65 Years Male retiring in 2024 Female retiring in 2024 Male retiring in 2044 Female retiring in 2044 20.5 21.8 24.4 232 Social Housing Pension Scheme- Defined Contribution section Brunelcare has a legal duty to enrol eligible employees into a qualifying workplace pension scheme and make contributions towards it. The employee is not required to take any action in order to become an active member of the scheme. An employee who has been automatically enrolled is free to opt out and get a refund of the contributions they have paid. Brunelcare uses the Social Housing Pension Scheme- Defined Contribution Section to invest these contributions. brunelcare.org.uk 233. Soclal Housing Pension Scheme- The Growth Plan The company participates in the scheme. a multi-employer scheme which provides benefits to some 638 non-ass(xiated participating employers The scheme is a defined benefit scheme in the UK It is not possible for the company to obtain sufFicient information to enable it to account for the scheme as a defined benefit scheme. Therefore. it accounts for the scheme as a defined contribution scheme. The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Fieporting Council, set out the framework for funding defined benefit occupational pension schemes in the U The scheme is classified as a 'last-man standing arrangement.. Therefore, the company is potentially liable for other participating employers. obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purcha* basis on withdrawal from the scheme. A full actuarial valuation for the scheme wa5 carried out at 30 September 2020. This valuation showed as*ts of £800.3m. liabilities of £831.9m and a deficit of £3l.6m. To eliminate this fvnding shortfall. the Trustee has asked the participating employers to pay additional contributions to the scheme as follo Deficit contribution5 From Ist April 2022 to 31st January 2025 £3.312.000 per annum (payable monthly) Unless a concession has been agreed with the Trustee, the term to 31 january 2025 applies. Note that the scheme's previous Wdluation was carried out with an effective date of 30 September 2017. This valuation showed assets of ￿94.9rn. liabilities of £926.4m and a deficit of a31.5m. To eliminate this funding shortfall. the Trustee asked the participating employers to pay additional contributions to the scheme as follows.. Deficit contributions From Ist April 2019 to 30th September 2025 1,243,000 per annum (payable monthly and increasing by 3% each on Ist April) The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series l and Series 2 scheme liabilitie& Annual Report and Financial Statements 2023-24 Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of Lhe deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures The unwinding of the discount rate is recognised as a finance cost. Present values of provision 31st March 2024 31st March 2023 31st March 2022 {£s) (£s) {£s) Present value of provision 2551 S,033 7.895 Reconciliation of opening and closing positions Period ending 31 March 2024 Period ending 31 March 2023 (£5) Provision at start of period 5,033 7,895 Unwinding of the discount factor (interest expense) Deficit contribution paid Remeasurement- impact of any change in assumptions 192 148 12.876) (2,876) 34) Remeasurement- amendments to the contribution schedule Provlsion at end of period 5.033 98 brunelcare.org.uk Income and expenditure impact Period ending 31 March 2024 Period ending 31 March 2023 (£5) I nterest expense 192 148 Remeasurement - impact of any change in assumptions Remeasurement - amendments to the contribution schedule 034} C¢)st recognised in income and expenditure account 14 A55umptions 31 March 2024 {£s) 31 March 2023 (£5) 31 March 2022 {£s) Interest expense 531 5.52 The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due. would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contribution& The following schedule details the deficit contributions agreed between the company and the scheme at each year-end period: Deficit contribution schedule 31 March 2024 {£s) 31 March 2023 (£s) 31 March 2022 l£s} I nterest expense 2,397 2.876 2.876 I nterest expense 1397 2.876 Interest expense 2,394 The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agr&ment and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it ar1￿. It is these contributions that have been used to derive the company's balance sheet Annual Report and Financial Statements 2023-24 23.4. Scheme benefit review We were notified in 2021 by the Trustee of the Scheme that it has performed a review of the changes made to the Scheme's benefits over the years and the result is that there is uncertainty surrounding some of these changes. The Trustee is seeking clarification from the Court on these items and this process is ongoing with it being unlikely to be resolved before the end of 202S at the earliest. It is estimated that this could potentially increase the value of the full Scheme liabilities by £15Sm. We note that this estimate has been calculated as at 30 September 2022 on the Scheme's Technical Provisions basis. Until the Court direction is received. it is unknown whether the full lor any) increase in liabilities will apply and therefore, in line with the prioryear, no adjustment has been made in these financial statements in respect of this potential issue. brunelcare.org.uk 14 DETAILS OF KEY INDIVIDUALS Details of key individuals and organisations involved in the leadershipi oversight and audlt of Brunelcare in the year to 31 March 2024 TRUSTEES Graham Russell Chair of The Board Vice Chair and Chair of the Remuneration. Nominations and Workforce Committee Harry Hayer Phil Hope Andrew Sloman Senior Independent Director Chair of the Audit, Risk and Finance Committee Chair of the Performance. Quality and Experience Committee Nlck Hooper Allson Comley Kate Innes (Still) Anthony Oldfield Jo Makinson SENIOR LEADERSHIP TEAM Oona Goldsworthy Brian Whlttaker Chief Executive Officer Director of People and OD Director of Finance and Digital Services Director of Housing Services Director of Nursing and Care Services Company Secretary and Director of Corporate Governance John Rew Michelle Richards Sandra Payne MBE Mandy Collins Further information on our Trustees and the Senior Leadership Team can be found on our website - Www.brunelcare￿rg.ukIabOut-usIwho-We-areI Annual Report and Financial Statements 2023-24 ioi Registered Off ice Saffron Gardens Prospect Place, Whitehall Bristol, 8SS 9FF . Tel:101171914 4200 / Fax. (01171987 3502 E-mail: info@brunelcare.org uk Web: ￿n￿.bruneICarÉ.Org.uk Registered Numbers Company- 601847 (registered by guarantee) Charity- 201555 egulator for Social Housing- LH0269 Care Quality Commission registration no. CRTI-579008632 External Auditors Crowe, 4th Floor, St James House, St James, Square. Cheltenham, Gloucestershire GLSO 3PR Internal Auditors FISM Flisk Assurance Services LLP Hartwell House SS-61 Victoria Street Bristol BSI 6AD S3ffron 8ri5tol 8S5 Info@br Jne Cureo'g.Jk www.brunelcare.org.uk Regisie"ed •hariiy Livingi tllra disabilty, oriconfidont. INVESTORS IN PE"•..PLE EMPLOYEA invest people StanG3 rd