British Home and Hospital for Incurables Report and Financial Statements for the year to 31 March 2025 ChaThty Registration Number 2(6222 Contents Reports Reference and administrative details Report of the Board of Trustees Independent auditovs report 18 Financial statements Statement of fi'nancial aclivilies 22 Balance sheet 23 Slalemenl of cash flows 24 Principal accounting policies 25 Notes lo the financial slalemenls 29 British Home and Hospital for Incurables Reference and administralive details Honorary Presldent Professor, The Lord Mccoll of Dulwich Chair John Handley Board of Trustees Kenneth Dunn MA, Dipms Alison Hughes RN, MHSM Derek Prentice Jane Fisher Tom Walker Andrea Haug Taras Fe118h Fazeela Chharawala Karan Kapoor (resigned November 20241 Chief Executive Officer to the Board Paul Perkin Director of Care Merrilee Briggs Dirgctor of Flnan¢e and Resources Natasha Charles-Lewi$, ACMA Address Crown Lane Strealham London SW163JB Website www.britishhome.or .uk Charlty registration number 206222 Audltor Buzzacott Audit LLP 130 Wood Street London EC2V6DL Investment advtsors CCLA Investment Management Limited 80 Cheapside London EC2V 8DZ Sarasin & Partners LLP Juxon House 100 St Paul's Churchyard London, EC4M 88U British Home and Hospital for Incurables 1 Reference and administrative details Bankers Barclays Bank plc Clapham Common Group PO Box 4038 London, SW12 gYB Legal advisers Hemp50ns 40 Villiers Street London, WC2N 6NJ British Home and Hospital for Incurables 2 **Report of the Board of Trustees** Year to 31 March 2025 The Board of Trustees (‘the Board’) presents the statutory report and financial statements of British Home and Hospital for Incurables (‘British Home’) for the year ended 31 March 2025. The financial statements have been prepared in accordance with the accounting policies set out on pages 25 to 28 and comply with British Home’s Charter of Incorporation and Regulations, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). ## **A Note from our Chair** Thank you for reviewing the annual accounts for 2024-2025. Over the last year, the organisation continued to invest in its range of services and building infrastructure. There has been an increase in demand for services, especially among adults with complex needs and individuals returning home after extended hospital stays. In response, capacity was expanded by repurposing areas within the building, resulting in eleven additional beds for residential support. This included a new six-bed specialist unit for residents requiring tracheostomy care, which opened in January 2025. The organisation continues to build its reputation in delivering neuro-rehabilitation that focuses on person-centred care. Therapy provision has been expanded to include occupational and physiotherapy as well as holistic approaches such as music, arts, dramabased therapies, psychology, and vocational rehabilitation. These initiatives are intended to offer a wider range of activities that aim to improve motor skills and cognitive development, supporting resident independence. The organisation is experiencing increased costs related to goods and services, primarily due to investments made to maintain staff remuneration. The adult social care sector is experiencing a national shortage of skilled professionals, so the organisation regularly reviews staff pay to attract and retain qualified individuals. The Board and Executive Team continue to seek operational efficiencies and work to ensure commissioners support the actual costs of care. These measures are intended to protect charitable reserves and maintain ongoing service enhancements for current and future beneficiaries. While there have been several incredibly positive developments over the year, we are naturally disappointed to receive a ‘requires improvement’ rating in our most recent Care Quality Commission inspection, which represents a decline from the previous ‘good’ rating. Feedback from the regulator and stakeholders has been addressed, and efforts are underway to make targeted improvements in identified areas. The organisation anticipates reinspection and aims to restore its previous rating and further improve performance in certain areas. As with every year, I would like to extend my appreciation and that of the Board to our dedicated staff. Whether in clinical, administrative or ancillary roles, the shared values across our team are always evident and their contribution to the well-being and rehabilitation of our residents is as authentic as it is impactful. I hope that you find this year’s annual accounts of great interest and thank you for your continued support. British Home and Hospital for Incurables **3** Report of the Board of Trustees Year to 31 March 2025 Composltlon of the Board of Trustees The Charity Board of Trustees is.. Chair John Handley (appointed February 2024) At its meeting in November 2022 Trustees agreed to appoint John Handley to the Board of British Home. John is an inlemationally experienced executive who has worked extensively with business leaders across small and large businesses, fully owned and joint venture partnerships, listed and not for profit sectors, in ServI￿S and manufacturing industries and in emerging and mature markets including Saudi Arabia, India. Australia, the United Stales and the UK. An accredited WABC Executive Coach. Kenneth Dunn Kenneth Dunn joined the Board of Trustees in December 2014. -.%' Kenneth has some 30 years of social care experience. He has a broad knowledge of the care industry and govemmenl policies and procedures regulatsng care. Alison Hughes A nurse and midwife with 36 years, experience, Alison t￿ined at University College Hospital before moving to Oxford and then Australia to practice. She spent four years overseas before joining the cardiac unil at St George's Hospital Tooling, moving from Sister to Head of Nursing and finalty Divisional Director of Nursing and Governance. Alison is now fulty retired. Dorek Prentl¢e •# Derek spent the majority of his career in consumer affairs, spending over years with Consumers. Association (Which?) and ~I serving as the President of the European Consumers Organisation BEUC. Derek is a Council Member and Trustee of the Royal College of Emergency Medicine and Chairs its Lay Group. Derek has been the Vice Chair of the Lay Group of the Academy of Royal Medical Colleges, the Chair and Lay Member of the General Dental Council and a Trustee of King's College Hospital. Composltlon of th¢ Board of Twstees (continued) BrfÉish Home and Hospital for Incurables 4 Report of the Board of Trustees Year to 31 March 2025 Composltion of the Board of Trustees Icontinuedl Jane Fisher Jane has worked in the NHS for over thirty years. slarbng as a nurse with a special interest in trauma. After ￿entY years on the front line, she moved into NHS managementand now manages the Northwest London Renal and Transplant Service Ilhe largest such unit in Europe). Jane is passionate about healthcare and ha5 a strong commitment lo delivering equality and diversity. Tom Walker Tom is currently Co-Head of Global Listed Real Assets for Schroders where he is responsible for a large real asset investment portfolio and ha5 significant experience in investment management. Andrea Haug Andrea has successfully led HR In a number of sectors including retail, media and enlertainmenl, hotels and hospitality, infrastructure. aud financial services in both the UK and internationally. She has broad experien¢e al both strategic and operational levels across all areas of HR. Her deeper specialisms include leadership, culture, employee engagement and organisational change. Andrea's passions are supporting leaders through periods of growth, uncertainty, and change, and building workplaces that are welcoming and inclusive, where everyone feels they belong and are 2ble to contribute, achieve and progre88. Taras Fellah Taras spent 7 years within the internal audit function of IQVIA, a US listed multi-national healthcare company before tsking up his current role of Senior Director of Financial systems. British Home and Hospital fo¥ Incltrables 5 Report of the Board of Trustees Year to 31 March 2D25 Composltlon of the Board of Tru$tees Icontinuedl Fazeela Chharawala Fazeela Chharawala is a registered Neurosciences Occupab'onal Therapist who specialised in neurorehabilitalion prior to working in her current fi'eld in health innovation. She works as a Senior Innovation Manager in NWLS Health Innovation Network-ICHP and co-founded the Imperial HOTh (Helping Our Teams Transform) innovative surgical safety culture programme. She teaches Human Factors and has a keen intere51 in patient safety and quality. Fazeela utilises her passion for innovation, system collaboration and leadership in her everyday work where she implements strategic transformation to enable equitable and improved clinical outcomes for populations. Board Responslbllltles Statement The charity's trustees are responsible for preparing the report and financial statements in accordance with applicable law and United Kingdom generally accepted aecounts'ng piaclice. Charity law requires the Board. as trustees. to prepare financial statements which give a true and fair view of the financial activities of British Home during the year and ils financial position al the end of the year. In preparing the attached financial Statements, the Board is required • select suitable accounting policies and then apply them consistgnlly., observe the methods and principles in Ac¢ount¢ng and Reporting by Charities." Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Repothng Standard applicable in the UK and Republic of Ireland IFRS make judgements and eslimales that are reasonable and pruden( slate whether appliGable UK accounting standards and statements of recommended practice have been followed, subject lo any departures disclosed and explained in the financial slalements., and prepare the financial statements on the going concern basis unless il is inappropriate to presume that British Home will continue lo operate. The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of British Home and which enable it lo ensure that the financial statements comply with the Charities Act 2011. The Board is also resF)onsible for stewarding the assets of British Home and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Board is responsible for the maintenance and integrty of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions. British Home and Hospital for InGurables 6 Report of the Board of Trustees Year 10 31 March 2025 Stru¢tureJ governance, and management Britlsh Home was granted a Royal Charter on 1 November 1899. It is governed by a Charter of Incorporation and Regulations (revised 8 January 20091 and is a registered Charity (No. 2062221. Responsibility for British Home rests with the Board who are the trustees of the charity for the purposes of charity legislation. British Home is regulated by the Charity Commission, by thg Care Quality Commis5i0n ICQCI and, as a Royal Charter Company, by the Privy Council. The Board met fomally in each quarter of the18sl financial year and also held its annual away day lo review the charity's strategic plan. On 31 March 2025 the Board comprised nine members who held Offi￿ throughout the year. In November 2024 Kar8n K8poor retired from Ihe Board, The Board are grateful for his significant contribution to the work of the charity over his one- year tenure and wish him great success in the future. Trustees did not receive any remuneration for services as a member of the Board. Board Committeo Structure The Board periodically reviews its governance committee structure, lo ensure that it remains fit for purpose and responsive to emerging. strategic opportunities and risks. The Board last reviewed its succession plan in anticipation of those Trustees approaehing the end of their tenure. As part of its succession plan the Board will review the succession plan in November 2025 and will seek to appoint new Trustees in the next financial year with the required skills and experience lo support the charity in achieving its strategic objective5. Care Governance Committ99 The Care Governance Committee provides assurance lo the Board by having Trustees with relevant clinical experience lo review the provision of care and therapy in the Home, and lo offer sijpport and counsel to the DireGtor of Care in this regard. The Care Governance Committee maintains oversight of British Home's clinical practice and care provision including quality assurance. seNice improvement, safe practice, and regulatory compliance. Finance Commlttee The Finance Committee has delegated responsibility from the Board lo oversee and review all financial aspects of the Charity's operations including the Charity's investment strategy and appointment of ils Investment Managers. The Finance Committee also has responsibility for British Home's human resOU￿e5, building and maintenance Servi￿5, as well as the development of the Chartty's IT and digital strategy. The Finance Committee continues to set annual targets to redu￿ the current deficit 2nd achieve an annual operational surplus. Since the pandemic, the recruitment of care staff within a challenging market has emerged as the Charity's key strategic risk. The Finance Committee continues to review staff salaries and benefits lo ensure that these remain competitive and to advise the Remuneotion and Nominations Committee in this regard. British Home and Hospital for Incurables 7 Report of the Board of Trustees Year to 31 March 2025 Structure> govemance, and management Icontinuedl Remuneration and Nominations Committee The Remuneration and Nominations Committee has oversight of the balance and eff￿liVenesS of the Board, including the appointment of new Trustees. The Remuneration and Nominations Committee is also responsible for the remuneration of the executive management team of the Charity, as well as the annual review of staff salaries and benefits. Management of British Home The key management personnel of British Home responsible for directing and controlling the operations of the charity comprises the Board of trustees. the Chief Executive Officer, the Directof of Care and the Director of Finance and Resources. Management of 8ritish Home Paul Perkin IBA Honsl is the Chief Executive Officer of British Home. Paul took up this post in April 2017. Paul has over ￿enty years, experience within the health, social care and housing sector Including executive and non-executive roles. Paul is currently the lay Chair of the Association of Palliative Medicine for Great Britain and Ireland, a medical membership organisation promoting professional development. societal debate and advocacy on behalf of all those who are involved in Palliative Medicine Natasha Charles-Lewls ACMA Imscl is the Diwlor of Finance and Resources at British Home. Natasha took up this role in September 2019. Natasha has over sixteen years, finance experience within the healthcare and charitable sector. Natasha is an associate member of the Chartered Institute of Management Accountants and holds a further degree in strategic busirsess management. Merrilee Briggs joined the a8 Diwtor of Care at British Home in March 2024. Merrilee is a Registered Nurse and has worked in Health and Social Care for over 20 years. Merrilee has held Senior roles in care quality and commercial development in both the private and charity sectors and has a particular passion for developing neuro-rehab services to improve access. recogni51ng that everyone has a right to rehab. Aims Objectives and Strategy British Home provides specialist clinical and rehabilitation SLJPPOrt to adults Iwing with neuro disability. This will typically include people living with severe impairfflenl often resulting from brain injury, stroke or through a life-limiting illness. We work with each of our residents to tailor a holistic and bespoke package of care and rehabilitation, enabling them to live as full and independent lives as possible. British Home also provides palliative care, providing emotional and spiritual support, and creating a peaceful environment where residents can live their final days in Gomfort and on their own terms. British Home is registered to look after a maximum of 127 residents., however, due lo the physical limitations of an old building the number of commissioned units was reduced to 80 beds over 20-ye2rs ago. Over the last year. we have experienced increasing demand for our ServI￿S and have brought a further 11 units back into Ljse 191 beds). 11 is expected that demand for beds will continue, and we continue lo review our capacity, in line with our budget for capital expenditu￿. lo ensure that we can continue lo support as many residents as possible. going forward. British Home and Hospital for Incurables 8 Report of the Board of Trustees Year to 31 March 2025 Aim5 Objectives and Strategy (conlinuedl Since the end of the pandemic, we have contsnued to Invest in our clinical and therapy services to support residents with increasingly more complex conditions to be disch8rged from hospital and live within our more homely setting. Average occupancy over the last year on this basis was 930A189°k in previous yearl. In March 2025. the Board reviewed its 5-year strategy. with a central aim lo build upon ils experience and become a centre of excellence for neuro4isability care and rehabilitation. The Board recommitted lo its key objective of investing in the charity's therapy provision to support even more residents and oulpalienls lo manage their conditions more effectively. with an emphasis on increased independence. pain relief and greater enjoyment of life (including those approaching end of lifel. Rehabllitation and therapy The British Home provides a range of therapies and rehabilitation programmes for all residents, blending tradition21 occupational and physiolherapy support with more holistic approaches including music and drama therapy. Our team also comprises a Speech and Language Therapist, as well as a Psychologist and Family Councillor lo support our residents and their loved ones as they learn to manage their condltions following 8 lrfe changing event or diagnosis. We have recenuy appointed a Vocational Therapist with a primary focus on supporting residents back into education or work, recognising the significant contribution they can make to ourcommunity and economy. In January of this year, we opened a new specialist unit supporting adults requiring tracheostomy care and those with prolonged disorders of consciousness IPDOCI. This unil include5 six bedspaces, and we will continue lo review this provision over the next year lo det8rmine if more bedspaces are required and more investment needed lo meet future demand. In the coming year we will introduce a new Level 2 Neuro-rehabilltation unit in line with the British Society of Physic81 and Rehabililalion Medicine IBSPRMI. guidelines. This will provide residents with an intensive programme of rehabilitation as well as psyGhological and soci21 support to enable them lo relum home and maintain their independence. This service will be overseen by a dedicated Neuro Rehabilitation Consultant providing clinical supervision to our Therapy Team, ensuring robust goal planning ft)r all residents and improved rehabilitslion outcomes for all. Co-production In March 2025, we engaged a specialist consultant to work with our residents to constitute a new Resident Committee. This Committee will develop and oversee the implementation of new co-production strategy and work with the Executive lo inform our service offering and drive continuous improvement across everything we do. We recognise that our residents are expèrts in their experience of neuro-disability, and we will harness their insight and expertise lo ensure that, together, we fulfil our charity's mission. The Resident Committee began ils work in earnest in May 2025, whereby it convened a recruilmenl panel to oversee the appointment of a new Registered Manager. Going fomard the Committee will support our quality assurance processes, fundraising, activities and development of new services, a5 well as other areas ofour work. British Home and Hospitsl for Incurables 9 Report of the Board of Trustees Year to 31 March 2025 Publi¢ benefit In selling the charty's objectives the trustees have considered the Charity Commission's guidance on public benefit. The Board believes that Br¢lish Home continues to meet the Charity Commission's public benefit lest principally in that the majority of residents in British Home have for many years benefited from the availability of slatulory funding. The charity provides additional rehabilitation and social support to residenls from ils own charitable funds and through specific fundraising inilialives. OurMi55ion British Home is a supportive community providing excellent care and rehabilitation, enabling everyone living with neuro-disability to reach their full potential. Our Vision We strive to create a community where everyone with a neuro-disability can thrive and live their lives with hope, dignity, and equal opportunity. Our Valugs All at British Home are committed lo upholding our organisational values which have been developed in collaboration with our residents, staff and other stakeholder5 and partners. These values inform every aspect of our work, including the care we provide lo residents and the way we support our staff to carry out their important roles. Our Value5 determine that we.. pul the individual al the heart of their care., understand that every individual will have their own targets and motivations, and that rehabilitation is a process that people lake at their own pace., recognise the advantages that our diversity provides, we will harness the talent and energy of everyone at British Home.. staff, volunteers. residents, families and carers.. will always act with integrity, openness and honesty.. and are committed to the highest standards and will embrace innovation and models of best practice. Pgrsonalised Support Al British Home, we recognise that each resident is an individual and that they and their families will often provide the greatest insight into how our staff can best meet their care needs. Residents at British Home are continually assessed by a multi-disciplinary team cornpri5ing of clinical staff and ther8PiSts to ensure they receive an appropriate service offer commensurate with their individual needs. We work wtth residents and their families to develop personalised care plans. ensuring thal they direct and control the care we provide. Rlsk management The Board regularly reviews the potential major risks to the charrty and undertakes a formal risk audit each year to identify any additional risks that the char'ty may be exposed lo and lo ensure that adequate control measures are in place lo mitigate identified risks. To protect the assets of the charity, British Home maintains a comprehensive suite of insurance policies. British Home and Hospital for Incurables 10 Report of the Board of Trustees Year to 31 March 2025 Risk management (continuedj The Board considers the 'failure to reduce ils operational deficit,. as its key strategic and operational risk, given that this would have a detrimental impact on the future sustainability of the Charity and the well-being of its residents. The Charity's S-year strategy has guided British Home's transition from a traditional nursing care model to that of a specialist provider of neuro- disability nursing care and rehabilitative support. This will ensure that care fees are more ommensurate with regidenls, support needs and that the Charity is not required to subsidise the costs for those residents who no longèr require the level of specialist nursing and support provided within the Home. In recent years the health and social care sector has experienced signifi'cant challenges around recruitment and retention of experienced care staff. British Home is not immune to this, and over the recruitment and retention of skilled staff into British Home also remains a key risk for the charity. The Executive Team has introduced a range of measures to attract talented staff and to reduce ils dependency on temporary workers, with some success. However, this has not been without signrficant cost as the Charity has sought lo increase salaries and benefits to attract skilled worker5 Within a competitive market. The ExecutNe Team continue to engage with ils commissioners to engure that care fees Ieflectthe demands of local labour markets, and that BTltish Home can continue lo attract and relain highly skilled and experienced staff. Volunteers & Carers Volunteers at British Home make a positive difference to the lives of our residents through their involvement in a wide range of activities including reh8bililation support, recreational aclivilies, befriending and fvndraising. The Board remain grateful foT the significant contribution that all of our volunteers make to the charity and its resident5. British Home a150 places significant value in the views and contributions of its community of resident's families and carers. The Charity offers a variety of ways for families and carers to have their say on how care and support is delivered al Bri115h Home, recognising their role as advocates and experts in how their loved ones are cared for. Over the last year, families and carer's views were heard through online quarterly families and carerfs meetings as well a5 through our annual family and carer surveys. FundraiTsing The shortfall in our operatin9 income. as noted below, is made up in part from generous donations and legacies bequeathed to the Home. British Home is reliant on voluntary contributions to provide resources and develop innovation to improve the lives of everyone we support. The Board are grateful for all charitable contributions from our generous donors and would like lo pay particular thanks to the following Trusts and individuals for their continued support.. The lan Askew Charit8ble Trust D G Ryder Charitable Trust Gilbert & Eileen Edgar Foundation Hobson Charitable Trust The Bothwell CT. British Home and Hospital for In¢urables 11 Report of the Board of Trustees Year lo 31 March 2025 Fundraising Icontinuedl The Board would also like to thank all who have donated to British Home in memory of loved ones and lo the many people have supported us with a legacy in their Will. As a charity registered with the Fundraising Regulator, we are committed lo ensuring our ftjndraising is legal. open, honest, and respectful. British Home did not actively pursue donations from individuals and the general public and did not use the services of a professional fundraiser. No Complaints were received in relation lo how the charity conducted its fundraising activity. Envlronmental. Social and Governancé Since ils inception British Home has provided care and support lo some of the most vulnerable people within its community. We remain proud of the public benefit we continue to provide to severely disabled people, and we also recognise the wider role we can and should play towards reducing our environmental impact, increasing diversity and inclusion, and ensuring strong and ethical govemance practices. The charity continues lo ensure that its investrments are managed in compliance wtth ESG criteria, through dedicated funds in line with Charity Commission Guidance. Over the next year we will continue lo build upon this commitment lo ESG practices in a variety of ways., from how we manage our carbon footprint, including procuring seThices and influencing our suppliers, environmental practices.. to how we ensure the welfare ol our staff and increase opportunity and diversity across our workforce. Care Qua15ty Commisslon British Home is regulated by the Care Quality Commission. In September 2024, the Service underwent an unannounced inspection. The inspection resulted in the downgrading of the British Home's previous rats'ng of 'good' across all areas. The revised rating was ' requires improvement, following a down grading in three areas, while retaining ils previous rating of good in the areas ol'caring, and 'responsive'. ljlhile we were disappointed at the outcome ol the inspection, we have responded to the report's findings with a comprehensive improvement plan to redress the issues identified and lo retum to our previous rating. Thi5 plan has been shared with our residents, staff and stakeholders and we continue lo update them on its progress. We look forward to welcoming our regulator back to the service lo review the progress we have made and our rating. British Home and Hospital for Incurables 12 Report of the Board of Trustees Year to 31 March 2025 Financlal review Performance In the year The operating deficit for the period was £1,749,46212024- £2,344.2571 as shown in the table below: 2025 2024 Fees 7,789,169 6,522,633 Less.. Expenditure 19,538,631) 18,866,890) Operdting deficlt 11,Y49,4621 12,344,257) Donations 47,904 75,995 Investment income 339,879 345,364 Olher Income 23,598 81,526 Doficit before legacies 11,338,081) 11.841,3721 Lega¢iés S3,599 598,250 Pension scheme buyout 1469,0001 Net expenditure for the pèrlod before Investment gains and lo¥$ès 11,284,082) 11,712.1221 a) Fees Income from fees charged increased by 190A to £7,789,169 {2024 - £6,522,633). The increase in income is a result of improvement in average OCCLJpancy and higher fees generated on new admissions where fctus continues on attracting specialist needs residents with neurological conditlons and a greater emphasis on the charity's therapy provision. As in recent years, a low level of fee increases was awarded for longer term residents and only by a Small number of funders puth'ng Continued pressure on the charity's resources. b) Expendilu Expenditure in 2025 increased by 8¥0 to £9,538,631 12024 - £8,866.890}. As with many health and social care providers. the charity has been impacted by inflationary costs across our housing and catering services, including genera maintenance. As our resident population increased, we pLa￿d greater reliance on temporary workers as we sought to fill new vacancies within our clinical teams. We ensure that all new staff undergo a thorough induction including basic and mandatory training as well as time spent working supernumerary, which also contributed to associated staff costs in the last year. We expect that costs associated to recruitrng and inducting new staff will reduce significantly over the next year, as our new colleagues are established in their roles. Within this total, staffing costs amounted lo £5,055,668 {2024 £5,078,694} a decrease of£23.026. British Home 5t8ff are the heart of our organisalion, whenever po55ible the Board endeavours to provide a real increase in pay and ensures that staff are paid in line with industry standards. GJ Fundraising 8nd publNcity Costs, with allocated support costs. lota11ed £154,903 {2024 - £133,793). This included costs for the exlemal marketing of British Home to continue raising awareness of British Home and its work. lo support its fvndraising endeavours. British Home and Hospitsl for Incurables 13 Report of the Board of Trustees Year to 31 March 2025 Financlal review Icontinuedl Perf0rn7ance In thè year (continued) d) Donations Donations decreased within the last year to £47,904 12024 £75,995). In the current year we received large donations from DG Ryder Charitable Trust. We are thankful for the great support of individual donors and charitsble trusts, 2 number of whom have been loyal supporters of British Home for many years. The Board equally values every contribution regardless of size and is particularly grateful for the dedication of local groups and individuals in helping lo fundraise. e) Legacy income Income from legacies decreased over the prior year to £53.99912024 - £598,250). In line with the legacy income recognition policy, whereby a future legacy receipt is recognised as income provided probate has been granted and eventual receipt is probable, £238,50012024- £443,800) ha5 been recognised as income ahead of receipt in cash. Historically the legacy income of British Home has fluctuated and is unpredictable from ye8r lo year. Pansion Llabilities The charity previously operated a final salary pension scheme which closed to new members as of 31 March 2014. The Board engaged KPMG to advise it as to whether measures could be taken lo potentially miligale the liabilities of the scheme and whether securing member, benefits under the scheme through an insurance company buy-out might be an a)Yordable option for Bftlish Home. The Board considered that removing at an affordable cost the r15k lo ils reserves represented by 8n open-ended obligation to fund any future deficits in the scheme would be in the best interests of the charity. In February 2018 the trustees decided to withdraw from the scheme and a total liability of approximately £1,788,000 crystallised. The trustees paid over the sum of £1,010,000 on 3 March 2018 and there remained a provision in the accounts at the 2022123 reporting dale of £778.000. In 2023124, the Trustee for the pension gave a revised estimate of £2.257,000 for the total liability, given changes in market conditions affecting the pension fund over the time taken lo finalise the buyout. This resulted in the revised final payment in¢reasing to £1,247,000. subject lo the prevailing market conditions at the point ofwinding up the scheme,. At 31 March 2025 there has been no change lo the estimated liability. The replacement to the now closed fin81 salary scheme is a defined contribution Group Personal Pension Plan provided through Royal London. Under this arrangement British Home conlribules 10 /0 of pensionable salary while employees contribute 5Yo. Employees who have not elected to join the GPPP are. if eligible, subject to aulo-enrolment at contribution rates set as part of the Government's pension membership initiative. British Home and Hospital for Incurables 14 Report of the Board of Trustees Year to 31 Ma￿￿ 2025 Financial revlew Iconlinuedl The Home s NetAssets The net assets of British Home at 31 March 2025 were £9,115.18312024- £10,692,144>. Of these £718,97412024 - £662.4271 related to fixed assets which were comprised mostly of freehold buildings, which are wholly used for ch8rilable purposes and are represented by a specific designated fund. Fixed asset purchases and disposals during the year are shown in the notes to the financial slalements. The net assets also included £12,477 of endowment fiJnds not expendable by the charity and £3.000 of restricted funds. After allowing for further designated funds as described below the general unrestrictsd funds ofthe charity at 31 March 2025 were £542,841 {see policy below). Reserves policy and financial posltion In determining the level of reserves required to sustain the Charity's work, the Board seeks lo balance its long-term obligations with the needs of current beneficiaries. Where there is a capital commitment, a requirement ID generate income for a specific purpc)se. or a need lo ring-fence funds for the Charity's future stability, these factors are also considered. The Board acknowledges that reserves al the end of the finan¢ial year were below the level sel out in the current Reserves Policy of between 3 to 12 months of annual running costs which is primarily due to the year's deficit performance as we invest in the Charity's operations lo drive efficiency. The Board is reviewing the Reserves Policy to ensure it aligns with future plans and that designated funds, including the continuity of care fund Ibelowl are matched to current needs. In the current financial year, the funds are 811ocated as follows.. The General Fund ¢omprise5 those monies whiGh are freely available for application towards meeting the charitable objectives of the Home at the discretion of the Board. Designated Funds comprise monies set aside out of unrestricted general funds and designated for specthc purposes, although the Board may ultirnalely use such fvnds for other purposes. Restricted Funds comprise monies raised for, or their use restricted lo, a speGifi purpose, or contributions subject to donor-imposed conditions. Endowment Funds comprise monies donated which are not to be expended. Only the income can be used for the charitable objectives of the Home. Designated reserves The majority of the Charity's fund5 are held in investments, at the end of the financial year the following ftjnds have been designated.. Contlnulty of Care Fund The Board of Trustees is conscious of ils long-term obligation lo the residents in its care. their sponsors and their carers and to balance the needs of current residents with those of the future. The Board believes that the equivalent of 6 to 9 months anbcipated costs 15 ￿qUIred to meet ils obligations to provide essential services for all parties in the event of a critical incident. The Board has therefore designated £5.9M of tts reserves lo this fund, to provide for nine month's running costs. British Home and Hospital for Incurables 15 Report of the Board of Trustees Year to 31 March 2025 Financial review Icontinuedl Majorand Cyclical Maintenance Fund The British Home operates from an old, Victorian building which is both expensive to maintain and will also oceasionally require costly unplanned repaifs. Tnjstees have therefore created a fund to meet the costs of major and cyclical maintenance when the need arises. The Board has designated £2M of its reserves lo this fund, in the event that major repair5 are required to the building's infrsslruclure. Investment policy 8ndperfomiance The investment objective of the Board is to maintain the real value of the fund ovef time whilst generating a stsble and sustainable return on investments in the form of dividend payments lo supplement the charlty's income. The Finance Committee has responsibility for agreeing strategy and monitoring the investment assets. The committee meets quarterly and reviews the porttolio's performance. The market value of the portfolio at 31 March 2025 was £9.8m12024 - £10.5m and 2023- £11.7ml. This is a book valuation and may differ signifi'cantly from the price achieved when the funds are sold. The value of the portfolio decreased during the yeaf and the charity sold £3m of investments to cover shortfalls arising from the deficit and future cashflow commitments. The value of the investsnents showed a modest recovery al the start of the next financial year. The underlying investment performance showed nel investment losses of £293k for the year,12024- £781k gainl The income produced from these investments amounted to £330k12024- £345kl. Vvhilst the charity's funds are of a sufficient size to have a segregated portfolio, the Trustees decided, after a review some years ago, to invest in pooled and common investment funds for charities. The saving in costs is considerable bul it means that the charity loses ils power lo directly influence and control the underlying investments made or the detail of the Environmental, Social and Governance IESGI policies to be followed. The funds in the portfolio are the COIF Charity Investment and Fixed Income Fund5, managed by CCLA. and the Sarasin Consolidated Apha Fund for Endowments. managed by Sarasin & Partners. Both these managers are mindful of the ethical concerns of their charity clients and pursue aelive ESG research. This research informs not just asset allocation, assessment of risk and stock selection bul also how they vote the shares they buy. Both managers talk to the management of those companies to raise concerns. Both managers publish detsiled ESG policies and descriptions of how they assess risk. Both managers also present annually to the Finance Committee illustrating the analysis of the financial return, risk, asset allocation, the fund5, performance against agreed market benchmarks, and the investment objectives. British Home and Hospitsl for Incurables 16 Report of the Board ofTrustees Year to 31 March 2025 Future plans In March 2024, the Board of British Home revised the Charity's 5-year strategic plan. Our new strategy 2023-2026, has been developed to focus on whatwe do well today and make it even better. Vve will provide high quality specialist neuro rehabilitation to a local and wider population. As the complexity of resident care increases, we will expand our offer lo r¢ew cohorts of resiclents including specialist Level- 2 provision which provides a much greater therapeulic input lo residents who will benefit from this higher level of intervention. It is also our intention lo provide oulpalient rehabilitation services to reach even more people living within the community These new services will complement our existing provision of longer- term rehabilitation and palliatsve care and we will continue lo invest in these areas as we progress our strategy. As part of this strategy, we will continue to refurbish our beautifvl building. This will include new infrastructure and in-house facilities that will enable us to incorporate the latest technologies to support people with their rehabilitation. Furthermore, we will consult with our residents and staff to create a more modern and therapeutic environment for all who live and work at British Home. Auditor Buzzacott Audit LLP. the Home's auditor5 have indicated their willingness lo remain in office for a further year. Thanks, and acknowledgements. The Board continues to be highly appreciative of the sUPPOrt for the Home shown by commissioners of social care. British Home as an independent charity well under5tsnds the cost pressure5 a5SOCl8ted with the provision of social care and hopes that the Board and Commissioners can work together lo ensure the ongoing provision of first class, affordable care at Crown Lane long into the future. The success of British Home as a charity is down to the combined efforts of many individuals and organis8tions. However, one group clearly stand out as being the bedrock on which the charity stands, and that group is its dedicated and caring staff. The Board would like to say 'thank you, to every member of our staff who'day in, day outr do a wonderfubjob in supporting, caring and enriching the lives of the residents of British Home. John Handley Approved by the Board of Trustees and signèd on ils behalf by.. Trustee Approved on.. 16 Its British Home and Hospital for Incurables 17 Independent auditor's report Year to 31 March 2025 Independent auditor's report to the trustees of Brltlsh Home and Hospital for Incurable¥ Opinion We have audited the accounts of British Home and Hospital for Incurables Ilhe 'charity'l for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the slalement of cash Ilows, principal accounting rx)licies and the notes lo the accounts. 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 RepubliG of Ireland, (United Kingdom Generally Accepted Accounting Practieel. In our opinion, the accounts.. give a true and fair view of the state of the charity's affairs as al 31 March 2025 and of its incoming resources and application of resources for the year then ended,. + have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and • have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordanGe with International Standards on Audikn'ng IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant lo our audrt of the accounts in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going eoncgm In audrting the accounts, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the accounts is appropriate. Based on the work we have perfom)ed, 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 lo continue as a going concern for a period of at least hvelve months from when the accounts are authorised for issue. Our responsibilities and the responsibilities of the Iruslees with respect to going concern are describèd in the relevant sects'ons of thi5 report. British Home and Hospitsl for Incurables 18 Independent auditor's report Year lo 31 MarGh 2025 Other Infomiation The other inft)rmation comprises the information inoluded in the annual report, inclLJding the twstees, report, other than the accounts and our auditor's report thereon. The Iruslees are responsible for the other information contained within the annual report. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other inforrnalion and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the course of the audit or otherwise appears lo be materially misstated. Ifwe identify such material inconsistencies or apparent material misstatements, we are required lo determine whether this gives rise to a material misstalemenl in the accounts themselves. If, based on the work we have performed, we conclude Ihalthere is a material misslalemenl oflhis other information, we are required lo report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees, report. We have nothing lo report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report lo you if, in our opinion.. • the information given in the trustees, report is inconsistent in any material respect with the accounts., or sufficient accounting records have not been kepL or + the accounts are not in agreement with the accounting records", or we have not received all the ir¢formation and explanations we require for our audit. Responsibilities of trustees As explained more fulty in the trustees, responsibilities statement set out on pages 7 and 8, the trustees a￿ responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such inlemal control as the trustees determine is necessary to enable the preparation of 8CGOUflts that are free from material mi551atement. whether due to fraud or error. In preparing the accounts, the trustees are responsible for assessing the charity's ability to continue as 8 going concern, disclosing. as applicable, matters related to going concern and Using the going concern basis of accounting unless the trustees either intend lo liquidate the charity or to cease operab'ons, or have no realistic allemative bul to do so. British Home and Hospital for IncLJrables 19 Independent audltor's report Year lo 31 March 2025 Audttovs responslbllltles for the audit of the accounts We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due lo fraud or error, and lo issue an audilorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee Ihsl an audit condueted in accordancewilh ISAS IUKI will always detect a material misslaternentwhen it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 89gregate, they could reasonably be expected to Influen￿ the economic decisions of users taken on the basis of these accounts. Irregularities, including fraud, are instances of non-complian￿ with laws and regulations. We design procedures in line with our iesponsibilities, outlined above, to delect material misstatements in respect of irregularities. Including fraud. The exter¥t to which our procedures are capable of detecting irregularities, including fraud is detsiled below.. The engagement partner ensured that the engagement team collectniely had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable law5 and regulations.. + We identified the laws and regulations applicabl8 lo the charity through discussions with management and trustees and from our knowledge and experience of the charity sector.. We focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the activities of the charity. These included but were not limited lo the Charities Act 2011., Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financlal Reporting Standard applicable lo the United Kingdom 8nd Republic of Ireland IFRS 102) (effective 1 January 20191; Care Standards,. HeaSlh and Safely Regulations; The Code of Fundraising Pra¢lice", Safeguarding Regulations,. and Data Protection., and + We assessed the extent of compliance with the laws and regulations identifi'ed above through making enquiries of managementand those charged with governance and review of minutes of trustees, meetings. We assessed the susceptibility of the charity's financial statements to material misstalemenl, including obtaining an understanding of how fraud might occur, by.. + Making enquiries of management and trustee5 as to where they considered there was susceptibility to fraud, their knowledge of actual. suspected and alleged fraud,. and + Considering the internal controls in place lo mitigate risks of fraud and non-compliance with laws and regulations. British Home and Hospital for Incurables 20 Independent auditor's report Year to 31 March 2025 Auditor's rgsponsibilities for the audlt of the accounts {continuedl To address the risk of fraud through management bias and override of controls, we.. Performed analytical procedure5 to identify any unusual or unexpected relationships. + Tested and reviewed journal entries lo identify unusual transactions., • Assessed controls over ftjnds held for residents., • Tested the authorisation of expenditure-, + Assessed whether judgements and assumptions made in detemiining the accountsng estimates were indicative of potential bias., and • Investigated the rationale behind significant or unusual transactions. In response lo the risk of irregularities and non-compliance with laws and regL¢lalions. we designed proCedU￿S which included. bul were not limited lo.. Agreeing financial statement di5Glosures to underlying supporting documentation,. + Reading the minutes of meetings of trustees., and * Enquiring of as lo actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws 8nd regulations are from financial transactions, the less likely it is that we would becorne aware of non-compliance. Auditing standards 21$0 limrt the audit procedures required lo identity non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal Cor￿spondence. if any. Material misstatements that arise due lo fraud can be harder to dete¢l than those that arise Irom error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial slatemenls is located on the Financial Reporting Council's website al www.frc.org.uklaudilorsresponsibililies. Thi5 description forms part of our auditorfs report. Use of our report This report is made solely to the charity's trustees, as a body. in accordance with Part 4 of the Charities IAccounts and Reportsl Regulations 2008. Our audit work has been undertaken so that we might slate to the charity's trustees those matter5 we are required to stale to them in an auditols report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this reporL or for the opinions we have formed. Buzzacott Audrt LLP Statutory Auditor 130 Wood Street London EC2V 6DL 19 September 2025 Buzzacotl Audit LLP is eligible to aet as an auditor in terms of section 1212 ofthe Companies Act 2006. Brits'sh Home and Hospital for Incurables 21 statoment of financial activities Year to 31 March 2025 2025 Totsl funds 2024 To181 fvnds Restricted Endowrnent funds funds funds Notes Ineome from.. Donation5 an(1 leg8¢10S Investment inccrfne Charitable athvilles Other income Total Inc(¥n8 101,903 339,879 7,797.740 15.027 8,254,549 1CII.903 339.879 7.797.740 1S,027 8.254.549 674,245 345.364 6,522.633 81.526 7,623.768 E%p8ndlture on= Raising funds Charitsble actniities P&nsion scheme tsuyoul Total expenditure 154,903 9,3￿,728 154.903 9,383.728 133,793 ,733,097 469,000 9.335,890 20 9.538,631 9,538.631 N8t (expendit￿re) for the year before Inv95tment Iloswl galns 11.284,0821 11,284,082) 11,712,122) (Lossesl gains on Inve5tmonts 12 1292.8791 1292,8791 630.598 Net lexpendltUTel and net movement In funds 11,576.9611 11.576,9611 11,081,524) Fund balanc&s broyght forward at 1 Aprll 2024 Fund balanGes ¢arriod forward at 31 MarGh 2025 10.676,687 3,000 12,477 10.692,144 11.773.e68 £9,099,706 3,000 12,477 £9.115.183 10,e92,144 All of the Home's activities are derived from continuing operations during the above and prior financial period. British Home and Hospital for Incurables 22 Balance sheet 31 March 2025 2025 2025 2024 2024 Notes Fixed assets Tangible fixed assets Investments 718.974 9.800.687 10,519.661 662,427 10,730,762 11,393.189 12 Current as8¢ts DebloFS Cash at bank 762,739 513,348 1,276,087 1,323,695 412,853 1.736,548 21 CreditOTS' amounts falllng due within one year Net cunEnt1Slabllltiesl Net assets 14 12,680,565) {2.437,5931 11,404,478) 9,115.183 1701.0451 10,692,144 The funds of the charity.. Endowment fund Restricted funds Unrestricted fvnd5 Designated funds Gener81 fund 16 17 12,477 3,000 12.477 3.000 18 8.S56,865 542,841 9,115.183 8,5e2,428 2,114.239 10,692.144 Approved by the Board of Trustees on ie S•fka. ¥nd signed on its behalf by: john Handley Trustee British Home and Hospital for Incurables 23 Statement of cash flows 31 March 2025 2025 2024 Notes C88h outt]ow from operating 8clivitt8S'. Net cash used in operating acliwties 1608,7791 12,262,604) Cash inflow from invesllng acllvltie8 Divklends and interest from investments Purchase of investments Sale of inVestr￿entS Purchase of fixerl assets Net ca8h provrded by investing actlvltl 339,879 345,364 120,0001 1,469,917 1199.6511 1,595.630 3,013,602 1267,8001 3,085,681 Chang• in cash and cash equlvalents in the yèar 2.476.901 1667,9741 Cash and cash ¢qulvalents at 1 Aprll 2024 962.018 1,629,992 Cash and cash equlvalents at 31 March 2026 3.438,919 962,018 Notes to the cash flow statement for the year to 31 March 2025. A ReconciliatTon of net movement in funds to net cash flow from operating actlvities 2025 2024 Net movement in funds las per the $tat•ment of financlal a¢t5vltlesl Adjustments for: Depreu8tion char98 Losses Igainsl on investments DivKlends and interest from inveslrnenl Decreaselllncreasel in debtor5 In¢rea5e in creditors Net cash used in operalrng activFtles 11,576,961) 11,081,523) 211,264 170,727 292,878 1630,5971 1331,8791 1345.3641 56Q,958 1759,9661 242,972 383.120 1608,7791 12.263,6041 B Analys18 of cash and cash equivalents 2025 2024 Cash at bank and in hand Cash held by inve5Trnt managers Total cash and cash equlvalents 613,348 2,925,571 3,438,919 412,853 549,165 962,018 No separate reconcili8tion of net debt has been prepared there is no difference be￿een the net cash (debt) of the charity and the above cash and cash equivalents. British Home 8nd Hospital for Incurables 24 Principal accounting pollcles Year to 31 March 2025 The principal accounting policies adopted, judgements and key sources of eslimalion Un￿rtaInty in the preparation of the financial statements sre laid out below. Basis of prgparatlon These financial statements have been prepared for the year lo 31 March 2025 with comparative information provided in respect to the year ended 31 March 2024. The financi21 statements have been prepared under the historical cost convention wth items rewgnised al cost or Iransa¢tion value unless otherwise staled in the relevant accounting policies below or the notes to these financial slalements. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applic8b5e to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (Charities SORP), the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. The charity constitute5 a public benefrt entity as defined by FRS 102. The financial statement5 are pres@nled in sterling and are rounded to the nearest pound. Crltlcal accountlng estimates and areas of judgement Preparation of the financial statements require5 the trustees and management to make significant judgements and estimates. The items in the financial statements where thesejudgements and estimates have been made include.. estimating the useful economic life of tangible fixed assets., valuation of the investment land- legacy recognition,. and estimating fvture inflows and outflows for the purpose of assessing going concem As8essment of golng concem The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements. British Home and Hospital for Incurables 25 Prlnclpal accountlng policles Year lo 31 Morch 2025 A88essment of going concgrn Iconlinued} The Iruslees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast signifi'cant doubl on the ability of the charity to conlirsue as going concern. At 31 March 2a25 the charity had nel current liabilities of £1,404,47812024 £701,045). The Iruslees ere ot the opinion that the charity will have sufficient resources to meet ils liabilities as they fall due by drawing down on the investment funds when required. The most significant areas of judgement that affect items in the financial statements are detailed above. With regard lo the next accounting period, the year ending 31 March 2026, the most significsnt areas that affect Ihe carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investrnenl policy section of the trustees, report for more information). Income Income is recognised in the year in which the Home is entitled to receipt thereof, the amount can be measured reliably, and il is probable that the funds will be received. Legacies are included in the statement of financial activrfiies when the Home is advised by the personal represenlalive of an estate that payment will be made, or property transferred, and the amount involved can be quantified. Donations are recognised when the charity h88 confirmation of both the amount and settlement dale. Dividends are re¢ognised once the dividend has been declared and notifi¢alion has been received of the dividend due. Fees from medical and nursing services are recognised when the service has been provided. Expenditure and the basis of apportionlng costs Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation commilling the charity to make a payment lo a third paty, tt is probable that a transfer of eeonomic benefits will be required in selllemenl and the amount of the obligation can be measured reliably. Expenditure includes allribulable VAT which cannot be recovered. The majority of costs are directly attributable to specific aclivilies. Support costs are allocated to expenditure on raising funds and charitable activities according to underlying activity levels. These were established using a number of suitable indicators including staff time and floor space. Expenditure comprises the following.. a. Expenditure on raising funds includes the salaries, direct costs and support costs associated with generating donated income and the fees paid to investment managers in eonnects'on with the management of the Home's listed investments. b. Expenditure on charitable activities comprises expenditure on the Home's charitable purposes as described in the report of the Board of Trustees and includes support costs. British Home and Hospital for Incurables 26 Principal accounting pollcles Year lo 31 March 2025 Tangible fixed assets The original land and buildings were acquired in 1894. Be￿een 1898 and 1994 their cost and subsequent additions were not recorded in the balanGe sheet. For many years the accounting policy for freehold land and buildings recognised that it was not possible to ascertain the cost of land and buildings and until 1 January 1994 the cost of additions were written off as incurred. In 1994 the accounting Policy was changed and subsequent expenditure on addition5 and improvements lo buildings have been capitalised. The book value, after depreciation, of land and buildings acquired prior to 1994 is not regarded as material. The New Wing, which opened in 1998, is classified as freehold buildings. The buildings were insured on a replacement basis for £47m at 31 March 2025 (at 31 March 2024- £45ml. All assets costing more than £5,000 are capitalised. Depreciation is provided at the following annual rates to write off each asset over its estimated useful life". Freehold buildings 4% oncost Water Tank 10°/0 on cost Hospital 2nd catering equipment Office fumilure and equipment 20Yo on cost 200A on cost Computer equipment • Transport 20 /0 on cost 200h on cost Investments Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured al their fair value as al the balan￿ sheet date using the closing quoted market price. Land held for investment is included in these accounts at fair value based on open market value. The land valuation is at trustees, assessment based on professional adviGe fmm Montagu Evans. Realised gains lor losses) on investment assets are calculated as the difference belween disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and105ses are c8l¢ulated as the difference be￿een the fair value at the year end and their carryin9 value at that date. Realised and unrealised investment gains lor losses) are credited {or debited) in the statement of financial activities in the year in which they arise. Debtors Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted lo the present value of the future cash receipt where such discounting is material. British Home and Hospital for Incurables 27 Principal ae¢ountlng policies Year to 31 March 2025 Cash at bank and in hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have a rnatu￿ty of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short-term deposits. Cash pla￿d on deposit for more than one year is disclosed as a fixed asset investment. Creditors and provislons Creditors and provisions are recognised when there is an obligation at the balance sheet date as a resuk of a past event, il is probable that a transfer of economic benefit will be required in selllemenl, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised al the amount the charity anticipates it will pay to sellle the debt. They have been discounted to the present value of the future cash payment where such discoltnting is maleri81. Fund accounting Endowment Funds comprise monies donated which are not lo be expended. Only the income can be used for the charitable objectives of the Home. Reslricled Funds comprise monies raised for. or their use restricted to, a specific purpose, or onlributions subject lo donor-imposed conditions. Designated Funds comprise monies set aside out of unrestricted general funds and designated for speoific purposes, although the Board of Trustees may ultimately use such funds for other purposes. The General Fund comprises those monies which a￿ freely available for application towards meeting the charitable objectives of the Home at the discretion of the Board ol Trustees. Penslon costs From 1 April 2014, British Home is opeTaling a defined contribution scheme. Contributions are recognised in the statement of financial activities when payable. British Home and Hospital for Incur8bles 28 Note5 to the financial statements Year to 31 March 2025 1 Donalions and legacies Unrestricted Restrfcted 2025 Donations inclusive of reclaimed tax Legacies Total 2026 47,904 53,999 101,903 47,904 53,999 101,903 Un￿Stricted R&stiicted 2024 Donations Nnclusiv8 of reclaimed lax Legacies Tol812024 70,882 598,250 669, 132 5,113 75.995 598,250 674,245 5,113 2 Investment Income Unrestricted fijnds 2025 2024 Sarasin- CIF ALPHA fLJnd units COIF- Investment lund income units 167,293 162,300 329.594 178,598 161,296 319.894 Inleresl rsceivable Totsl 10,285 339,879 5,470 345,364 3 Income from charitable actlvities Income from charitable activities comprises fees from medical and nursing services and is unrestricted. 4 Other Incom¢ Unreslricled funds 2025 2024 Other Cov1￿19 Sustainability Payment Digilising social care fund IDSCF} 15,027 28,468 53.058 81,526 15,027 S Expenditure on raising funds UnreSti￿ted funds 2025 2024 Direct Costs Support cost5 88,743 66,160 154.903 71,831 61,962 133,793 British Home and Hospital for Incurables 29 Notes to the financial statements Year to 31 March 2025 Expenditure on charitable actlvltles Unrestricted Rèslricled 202S Medical and nursing services Direct costs . Support C08ts 5,866,005 3,517,723 9,383,728 5,866,005 3,517,723 9,383,728 Un￿strICted Restricted 2024 Medioal &nd nurning seNffGes . Dir8cI costs . Supporf costs 5.588,883 3, 739,101 8, 727,984 5,588,883 5. 113 3,144,214 5,113 8, 733,097 7 Analysis of support costs Raising Charitable funds aclNitses 2025 Staff costs Administr8tion Hou5ekeeping- fuel & rates Housekeeping- other Depreciation Repairs & maintenance Insurance Other costs Governance Costs Total support ¢￿ts 25,159 14,488 5.090 13,878 712 3,165 1,324 1,220 1,124 66,160 985,732 414,890 419,064 967,666 210,542 260,622 109,010 56,287 93,909 3,517,723 1.010,891 429.378 424,154 981,544 211,254 263,788 110.334 57,507 9S,033 3,583,883 Raislng Chaitable fund activlfjes 2024 Staff costs Adminislration Housekeeping- fuel & rates Housek88ping- other D6Trpreuation Repai￿ & rn8Anten8nce Insuran Olhercosts Govemanc& co81s Total support Gosls 23,418 13,9Q6 3,249 13.66Q 1, 188 2,2fj2 1.239 1.9T3 1,067 61,962 924,526 396.330 267,527 929,441 Y69,538 191,358 102.027 75,615 87,852 3, 144,214 947,944 410,236 270, 776 945, 101 770,726 793,620 103,266 77,588 88.919 3,206, 176 Included within governance costs is auditor's remuneration of £34.12012024- £31,800) and £32,98412024 - £48,562) for professional fees which included strategy development work and Iruslee recruitment. British Home and Hospital for Incurables 30 Notes to the financial statements Year to 31 March 2025 8 Staff cost$ 2025 2024 Wages and s81aries Social secunty ¢08ts PensK)n ¢osts Redundancy ¢osls 4,376,729 456.252 203,484 19,203 S,OSS,668 4.399.971 444,831 200,108 33,784 S,078,894 The number of employees duiing the period who earned over £60,000 in the year is as follows-. 2025 2024 Number Number £60.001- £70,000 £70,001 - £80,000 £80,001- £90,000 £90,001- £100,000 £100.001 - £110.000 £110,001 £120,000 £120,001- £130,000 The average nLfmber of employees analysed by function was.. Head Count 2025 Head Count 2024 FTE. 2025 FTE" 2024 'Full time Equivalent Nursing and (xre Maintenance Receph"on and portering Management and adThinistration 122 115 307 113 11 142 13 137 10 125 13 136 Catering, cleaning, and laundry are outsourced, but with staff dedicated to British Home. Average numbers of catering and cleaning staff during the yearwere FTE 131 Head Count 20 {2024 FTE 131 Head Count 201. Remungration of key man8gementpersonnel No trustee received any remuneration in respect of their seNices during the year. No trustees were reimbursed for travel expenses in the year12024- £nill. During the year. the total remuneration, including pension contributions and employer's national insurance contributions, of key management personne1 was £381,444 12024 £345,560}. 9 Related party transactions No member of the Board of Trustees nor any officer of the Home had any beneficial interest in any contract with the Home during the year. British Home and Hospital for Incurables 31 Notes to the financlal statements Year to 31 March 2025 9 Related party transactions Icontinuedl The Home has purchased insurance to protect il from any loss arising from any neglect or defaults of any member of the Board of Trustees or employee and lo indemnify any Board Member or employee against the consequence of any neglect or default on their part. The total cover provided by such insurance is £2,000,00012024- £2,000,000) and the insurance premium paid by the Home during the year tolalled £1,81412024 - £1,814). Donations from trustees lolalled £1,20012024 - £1,620). 10 Taxation British Home and Hospital for Incurables is a regisleied charity and therefore is not liable to income tax or corporation lax on income derived from ils Chaiitable aclivilies, as it falls within the various exemptions available to fftgislered charitie5. 11 Tanglble fixed assets Freehold building Hospital equipmenl Computer equiprrent Transport Total Cost At 1 April 2024 Additions Al 31 March 2025 3,918,316 202,630 4, 120.946 227,992 30,391 258,383 239,531 34,780 274,311 15,980 4,401,819 267,801 4,669.620 15.980 DeprecIa￿0 At 1 Apiil 2024 Charge for the year Al 31 March 2025 3.448,622 134,166 3,582,788 149,258 41,669 190,927 125,532 35,419 160,951 15,980 3,739,392 211,254 3,950,646 15,980 N8t book values Al 31 March 2025 Al 31 March 2024 538.158 469,694 67,456 78.734 113,360 113,999 718,974 662,427 The original land and buildings were acquired in 1894. Be￿een 1898 and 1994 their cost and subsequent additions were not recorded in the balance sheet. Foi many years the accounting policy for freehold land and buildings recognised that it was not possible to aseertain the cost of land and buildings and until 1 January 1994 the cost of additions were written off as inGurred. In 1994 the accounting policy was Changed and subsequent expenditure on additions and improvements to buildings have been capilalised. The book value, after depreciation, of land and buildings acquired prior to 1994 is not regarded as material. The New Wing, which opened in 1996, is classified as freehold buildings. 8ritish Home and Hospital for Incurables 32 Notes to the financial statements Year lo 31 March 2025 12 Investments Investments held at 31 March 2025 comprised the following= nve8tment Listed prop8ty investments 202S Market value at 1 April 2024 Disposals at opening book value Net losses Market value at 31 March 2025 200,OOQ 9.981,597 10,181,597 13,013,602) 13,013,6021 1292,8791 1292,8791 6,675.118 6,875,11 200.000 Cash held by investment advi5015 for r6-investrrBnl Total investments 2.925I71 9,600,687 2.925,571 9,800,687 200,000 Historical cost of investments at 31 March 2025 5,999,970 S.999.970 Inveslment pro￿rtY List6d investments 2024 M8rk8t V31ue 811 April 2023 Adtlili£>ns 8t¢osl sposals at Opening book valu8 Revaluation N61 gains Mathet value at 31 Alarch 2024 3￿,000 10,650,916 11,(K)0,916 20,0( 20,000 [1,469,917) (1,469,917) (150,0001 780,598 780,598 9.981,59T 10, 181.597 (150,000) 2QO,000 Cash heldby investment advisors forre-ffnveslfflpnt To181investmet718 549. 165 549, 165 10,53Q.762 10.730.762 200,000 Hislortcalcost of ￿VeS(m6n￿S 8t 31 M8rch 2024 8.736,799 8, 136.799 The investment property is a share in land held on behalf of fi've charities. The valuation is al tru5tees' assessment based on professional advice from Monlagu Evans. 13 Debtoys 2025 2024 Fee debtors Piepayments and accTued income 257.644 505.095 762,739 676.688 647,007 1,323,695 Prepayments and accrued income 2131 March 2025 include legacies of £238,500 12024 £443,800). British Home and Hospital for Incurables 33 Note$ to the flnanclal Statements Year lo 31 March 2025 14 Creditors.. amounts falllng due within one year 2025 2024 Trade creditors Amounts held on behaff of residents Accmals and deferred income Social security and other taxation Other creditors Liability on withdrawal from pension scheme 460,583 78.130 393.196 197.185 304,470 1,247,000 2,680,565 240,150 62,983 306.836 232,868 347,756 1,247,000 2,437,593 Note.. A corresponding asset for residents, monies is included in cash at bank (see note 211. Included above is deferred income which relates lo income receivable in 2025126 which can be analysed as follows.. 2025 2024 Deferred incorne brought forward Deferred in the year Released in the year Deferred income carried forward 113,548 113,944 79,465 113,548 1113,5481 1113,9441 79,465 113.548 15 Operating lease commltments At 31 March 2025, the Charity had the following total commitments under operating leases on plant and machinery as follDWS'. 2025 2024 Arnounls payable.. thin one year In two to five years 6,241 6,241 12,481 6,241 12,481 18,722 16 Endowment fund 2025 2024 The D.0. Beale Trust 12,477 12,477 17 Restricted fund In the year lo 31 March 2025 the charity received £Nil in restricted funds12024- £5,113>. The 2024 funds were raised and expended on the r&decoralion of the hairdresser and beauty S21on for the wellbeing of the residents and supported by N8tWesl Bank. Bntish Home and Hospital for Incurables 34 Notes to the financial statement$ Year to 31 March 2025 18 Designated funds The income funds of the Home include the following designated fijnds which have been set aside out of unrestricted funds by the Board of Trustee5 for specific purposes.. Atl April 2024 Relea8edl added New in year deBignation$ At31 March 2025 Tangible fixed assets fund Continuity of CarÈ fund Majoi 8nd Cyclical Malntenance lund 662.428 5,900,000 2,000.000 8,562,42B 1211,2541 267,800 718.974 5,900,000 1.937,891 267,800 8,556,865 162,1091 1273,3631 All April 2023 Relea56d/ addad in year A131 M8rch 2024 New designations Tangible fixed assets fund Conlinuily of Cats fund Major and CyGlical Maintpnan¢e fund 633,504 5,900.000 2.000,OQO 8.533,504 (170, 727) 199,651 662,428 5.900.(XlO 78,855 2,000,000 278,9)6 8,562.428 (78.855) (249,582J Tangible fixed asset fund An amount equivalent to the net book value of tangible fixed assets at the end of the year is designated to recognise that they ?re not available for general use as they are nol readily re81isable. Continuity of care fund This fund has been established to meet the charity'5 obligations to provide essential services for all parties in the event of a critical incident. The fund provides for approximately g months running costs, in accordance with the reserves policy. Majorand cyclical maintenance fund Thi5 fund has been established as the charity operates from an old Victorian building which is both expensive lo maintain and occasionally requires eostty unplanned major iepairs lo the buildings infrastructure. The trustees are developing a len year plan for updating the propety. 19 Analysis of net assets between funds Réstricted Endowment D8signaled fund fund fund5 General fund Total 2025 Fund balances at 4 March 2025 are representèd by: Tangible fixed assets Investments Current assets Creditors.. amounts falling due within one year Total net assets 718,974 7,837,891 1.950,320 1.273,087 718.974 9,800,687 1,276,087 12.4TI 3,000 12.880,56SI 12,680,565) 542,841 9,115.183 3.000 12,477 8.556,865 British Home and Hospitsl tor Incurables 35 Notes to the financlal statements Year to 31 March 2025 19 AnaSysls of net assets belween funds Icontinuedl RestfiGled Eftdowment D8signated fund fund funds General fund Total 2024 Fund balances al l March 2024 8re ftEpresented by.. Tangible fixed assets Investments Current assets Creditors.. amounts f8llFng due within one year Tol81 nel assets 662,427 7,9QO.001 662,427 2,818,284 10, 73Q,762 1,733,548 1.736.548 12,477 3,000 12.437,593) (2.437,593) 8,562,428 2. 114,239 10,692, 144 3,000 72,477 20 Pension commltments The Home operated a defined benefit pension scheme providing benefits based on final pensionable pay until 31 March 2014. The defined benefit pension scheme closed lo new members and future accrual as at 31 March 2014. The most reGenl triannual valuation of the schemo was at 1 April 2016. In February 2018, after seeking advice from their advisors KPMG, the Iruslees took the decision lo buyout of the scheme and a total liability of approximately £1,788,000 cryslallised. During 2018, £1,010,000 was paid and the amount outstanding increased due to changes in market conditions, at 31 March 2024 and 31 March 2025 the estimated liability is £1,247,000. The estimated liability is based on information provided by the trustees, professional advisors and Aviva, the insurers. The Federated Flexiplan No.1 1"Ihe Plan } is a defined benefrt pension scheme. It is a "last man standing Scheme. which means that all participating employers are joint and severally liable for the Plan's liabilities. However, because of the non-associated rnulti-employer nature of the Plan. the charity does nol have sufficient informats.on available lin particular to identify ils share of the underlying assets and liabilities of the Plan) to use defined benefrt accounting. As such and as permilled by FRS 102, it accounts for the Plan as rf it were a defined contribution scheme. As a result, the amount recognised in the statement of financial activities represents the charity's contributions payable lo the Plan in respect of the accounting peflod. Members of the Plan are entitled lo benefits on either a"Pensions Capital" or Target Pension. basis. Under the Pensions Capital basis. contributions paid by and in respect of members are accumulated up lo retirement and then used lo secure benefits for the member. Under the Target Pension basis, members receive a defined pension al retirement based on length of service in the Plan and their Pensionable Salary at date of leaving. The Plan is closed to new members and to future acorual of benefits. 21 Cash at bank Cash at bank of £513,348 on 31 March 2025 {2024 - £412,853) includes £78.130 held on behalf of the residents of the Home 12024 £62,983). A corresponding liability for these monies is included in creditors Inole 141. British Home and Hospital for Incurables 36