**REGISTERED CHARITY NUMBER: 207164** 

**Report of the Trustees and** 

## **Financial Statements** 

**for the Year Ended 31 December 2021** 

## **for** 

**George Edward Smart Homes** 



**George Edward Smart Homes** 

## **Contents of the Financial Statements for the Year Ended 31 December 2021** 

||**Page**|
|---|---|
|**Report of the Trustees**|1 to 9|
|**Report of the Independent Auditors**|10 to 13|
|**Statement of Financial Activities**|14|
|**Balance Sheet**|15|
|**Cash Flow Statement**|16|
|**Notes to the Cash Flow Statement**|17|
|**Notes to the Financial Statements**|18 to 29|





## **George Edward Smart Homes** 

## **Report of the Trustees for the Year Ended 31 December 2021** 

The trustees present their report with the financial statements of the charity for the year ended 31 December 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). 

## **Objectives and activities** 

## **Objectives and aims** 

The primary aim of the charity is to provide quality accommodation, care and support for older people while acknowledging the rights of each person to independence that is fully supported and maintained in a stimulating environment. The charity's philosophy is based on ensuring individuals are treated with respect, their dignity is preserved at all times and their right to privacy and confidentiality is always observed. The Home encourages and supports residents in maintaining a full and contented life whilst ensuring they have choice and the ability to convey their thoughts and feelings about all aspects of their daily life. 

## **The Future** 

The charity has taken time to consider its long term role in the provision of accommodation for older people. The future will continue to bring many challenges with people staying longer at home with support. 

The people that have traditionally come to the Home would not meet the criteria for external funding and therefore rely on funding themselves. This has become increasingly difficult due to the current financial situation with a general reduction in investment income and sluggish domestic property market. 

## The Trustees propose to:- 

- Continue to identify positive financial savings in the operation of the Home without reducing the excellent 

- standards provided. 

- Promote and market the Home to encourage new residents where vacancies exist. 

- Ensure the Home meets the requirement of the national safety standards. 

Page 1 



**George Edward Smart Homes** 

## **Report of the Trustees for the Year Ended 31 December 2021** 

## **Objectives and activities** 

## **COVID 19** 

The daily operations of the Home were significantly affected and changes made in all areas as a result of COVID 19. National guidelines and policies were strictly adopted and rigorously applied. During 2021 not a single resident has been diagnosed with the infection. This is due in no small measure to the care and diligence of senior management and all staff. The Trustees record their wholehearted thanks and appreciation to all concerned. Since the relaxation of social distancing rules and requirements like many other facilities the home has had some cases among residents. 

## **Significant activities** 

The charity has continued to focus on its work on meeting the accommodation, care and support needs of older people in line with our objectives. The charity actively strives to make a difference in people's lives and in meeting residents' needs, wishes and aspirations. 

## **Quality and Care Standards:** 

We are registered with the Care Quality Commission (CQC) under the Care Standards Act 2000. During the last full inspection the standards maintained were considered by the inspectors to be overall good with many positive comments. The full report can be viewed by visiting the CQC web site at www.cqc.org.uk or by contacting your local CQC office. 

## **Accommodation:** 

The Home is registered to provide accommodation to a maximum occupancy of 60 residents, the occupancy fluctuated during the year and the Trustees are monitoring the situation. The Home has six flats/apartments giving accommodation for two people although in the main these rooms have had single occupants. 

In addition to permanent residents the Home also provides holiday and respite care accommodation, usually for a two week stay. This has been well used with people making return visits with a view to long term stay. New residents were only accepted after stringent testing and isolation procedures were adopted. 

Fees include 24 hours a day care, all meals and general laundry. Residents can also make use of the domestic laundry facility enabling them to maintain their independence. Cleaning is provided on a daily basis by the domestic assistants. 

As a residential care home, it is largely expected for the residents to be self caring, however the implementation of the policy introduced in 2007 for providing extra care and support if residents become frailer and in need of additional help has proved to be beneficial and has prevented residents having to move to other accommodation. 

## **Residents Fees:** 

Whilst Trustees are aware of the continuing problems residents may have in respect of low stock market, investment returns and bank interest rates, residents' fees were increased in April 2021 in line with the overall rate of increase in staff wages awarded at the time. Staff remuneration was reviewed in April 2021 and increased by at least the increase in the National Minimum Wage required at that date. Senior management team salaries were included as part of this general review with consideration given to  individual circumstances and responsibilities. Overall pay rates continue to be well over the National Minimum Wage. 

Page 2 



## **George Edward Smart Homes** 

## **Report of the Trustees for the Year Ended 31 December 2021** 

## **Objectives and activities** 

## **Meals and Kitchen:** 

Meals and food is an important feature in any care situation and is the time when residents come together and enjoy a variety of different meals; the Home provides a wide choice to try and meet every taste. The staff strive to make the meals varied, healthy, nutritional and wholesome, with all the attributes of good home cooked food. Diabetic and special dietary requirements are provided for. The Trustees and Senior Management team have consulted with and discussed catering preferences with residents during the year. The most recent hygiene inspection resulted in a 5 star rating. 

## **Residents and Family Communications:** 

The residents' health and well-being is a priority, and to support this, the Home benefits from good professional relationships with local doctors and other health professionals. 

Once a year the charity seeks the views on all matters and aspects concerning the Home by asking residents, family and visitors to complete a satisfaction questionnaire, the results are posted on the notice board. 

Residents' meetings are held regularly, and they are encouraged to openly discuss any matters regarding the Home and food and services provided. Trustees hold a meeting to inform residents on the charity's performance and its future plans as well as encouraging residents to bring up ideas of their own that would identify good practice and meet their needs efficiently. 

Information is openly displayed for residents and visitors, which displays the most recent inspection report, policies and procedures relevant to residents, health & safety inspection reports, thank-you letters, and minutes of residents' meetings as well as brochures and information booklets about the home. 

## **Welfare and Social Activities:** 

The Home has a full time welfare manager who in addition to her welfare duties is responsible for the residents' religious and cultural needs. Communion services are provided in the Home on a regular basis. 

The normal varied activities programme was suspended due to COVID 19; residents are kept up to date with change in arrangements and requirements by means of a daily and weekly diary which is posted on the notice board, as well as individual copies. 

The Home's minibus, previously used for regular trips into town for those residents who wish to take advantage of this service, also for coffee outings and visits to theatres, the library, museums and local events, was suspended. 

Normal in-house activities, in the form of music and movement, Tai-Chi classes, watercolour painting, craft classes, musical afternoons, games, including carpet bowls and quizzes, were suspended, but are being reintroduced as relaxation of rules allow. 

From time to time concerts, lectures and musical evenings had been provided by professional and local personalities. We have not yet returned to inviting entertainers or children to visit the home to host carol services and concerts. Although suspended, these will be reintroduced, with extreme caution, when appropriate. 

Various classes had been organised to take place in the Home on behalf of U3A, (the University of the Third Age), no charge is made to U3A, but our agreement is that all residents could attend and be involved in these classes if they so wish. This brings another element of community involvement to the Home. Again these may be resumed at some time, with extreme caution. 

Page 3 



## **George Edward Smart Homes** 

## **Report of the Trustees for the Year Ended 31 December 2021** 

## **Objectives and activities** 

The Home normally organises many fundraising activities on behalf of other charities, by means of summer and Christmas fairs, coffee mornings and raffles. The charities which have benefited in the past include Alzheimers, Breast Cancer, British Heart, Macmillan, Martin House, Parkinson, Salvation Army and Yorkshire Air Ambulance. Residents were encouraged and supported to participate in these activities and in the twice weekly craft sessions which produced items to sell at the many events. These will be restarted, with caution, in due course. 

A shopping trolley service was provided by a team of volunteer Friends of the Home, any profits made are donated back to the Home to purchase extra items for the benefit of the residents. Again, after suspension, this will be restarted with caution. 

## **Building:** 

Combe Hay was purpose built as a care home in 1958 and extended further in 1967, it is situated in attractive landscaped grounds of almost four and a half acres on the outskirts of Scarborough in North Yorkshire. 

The trustees and the management of the Home ensure that the building is maintained to the highest standards possible, continuing to upgrade and refurbish the facilities as required. 

Work carried out in the Home, where possible is contracted to local traders and suppliers as well as the Home's in-house maintenance team who do an excellent job. 

## **Gardens:** 

The Homes four and a half acres of gardens are cared for by two full time gardeners who once again achieved awards in the 'Scarborough in Bloom' competition. The gardens are an important feature of the Home, giving the residents endless hours of pleasure and enabling them to spend relaxing time among the many varying features in the garden. The gardeners are constantly removing and replacing shrubs and cutting back excess growth to improve the overall appearance and features. 

The gardeners continue to grow herbs and produce which are used in the kitchen, and flowers which are displayed in the Home bringing some self-sufficiency to the establishment. 

## **Staff/Personnel:** 

The Home's management is appointed by the Trustees. Trustees encourage training of staff to the highest standards. The Head of Home and Deputy are both qualified in accordance with national regulations. 

The largest staff group is those providing care and support who are mainly qualified in N.V.Q. level 2 in care. Other staff are presently working towards N.V.Q. level 2 in care and in cleaning and support services. 

## **Staff Communication:** 

There are over 60 members of staff, and the management endeavour to provide good communication to all staff, by means of daily handover meetings, monthly staff meetings, and monthly management meetings augmented with two month formal supervision and annual appraisals. 

## **Information and Marketing:** 

The Home has a comprehensive website which has been re-designed and improved, and a range of written information leaflets. The main aim of the information is to ensure that the wider community knows about the Home and the services provided. The open events also help with the marketing of the Home. The Home is advertised in the local press on a regular basis as vacancies arise. 

Page 4 



**George Edward Smart Homes** 

## **Report of the Trustees for the Year Ended 31 December 2021** 

## **Objectives and activities** 

## **Public Benefit** 

The charity has referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing its aims and objectives and in planning its future activities. Public Benefit derived from the charity's services and activities fall under the Charity Commission general heading of: "The relief of those in need, by reason of youth, age, ill-health, disability, financial hardship or other disadvantage." 

The charity's objectives do not restrict the working of the organisation to a particular locality or region. In the main, however, the charity serves The Borough of Scarborough and District and the Yorkshire Region. 

The charity aims to complement statutory social care and health service provision and as such is designed to provide value for money and equal access, without restriction, within areas of operation. The charity is mindful of prevailing social and economic conditions and has demonstrated through its continued ability to secure and attract new residents that it provides a value for money service. The service is designed to meet not only the individual needs of the residents but also the broad objectives of the government's policy on social care and health services. 

The charity continues to use its financial and other resources to support a range of individuals who are in need of help and support. Investment in both the fabric and quality of accommodation as well as provision of training for staff in discharging their duties demonstrates the charity's commitment to continuous service improvements. Charitable donations are always put into service improvements. 

Measures are in place to enable resident participation in all aspects of their Home supported by staff; this is demonstrated by the charity's ongoing commitment to improving the lives and independence of its residents. 

## **Achievement and performance** 

## **Charitable activities** 

The statement of financial activities shows outgoing resources of £120,820 (2020 net incoming resources of £41,553). The net movement of funds, after taking account of unrealised gains on investments, leads to an increase in funds of £515,337 (2020 £314,341). 

As a registered charity, it is entitled to the exemptions from taxation in respect of income and capital gains received within categories covered by S524-537 Income Tax Act 2007 and S256 Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied for charitable purposes. 

## **Investment performance** 

Trustees under the Trust Deed, have the power to make any investments that the trustees see fit. The investment policy followed is to obtain a return of income on the majority of the portfolio and accumulate capital on the smaller part to achieve an overall return above inflation over a medium term (5 year) period. 

Investments are managed on behalf of the charity by CCLA Investment Management Ltd. The Trustees review the performance of the investment managers quarterly. Over the reporting period and following additional investment, the value of the portfolio has increased by 20%, whilst the income stream has been 2% over the year. 

Page 5 



## **George Edward Smart Homes** 

## **Report of the Trustees for the Year Ended 31 December 2021** 

## **Financial review** 

## **Reserves policy** 

In the absence of any accepted formula for arriving at an appropriate level of free reserves to be held, the Trustees have taken a pragmatic decision to adopt a figure equivalent to one year's charitable expenditure. The figure for free reserves is arrived at after deducting the amount locked away in the investments in tangible assets. At the end of the year free reserves amounted to £4,901,137 (2020 - £4,391,673) compared with charitable expenditure for the year of £1,777,211 (2020 - £1,765,300) which is considerably above the Trustees adopted policy after taking into account the profit on the sale of Pollard Gardens in 2010 (£440,456). 

In determining the level of free reserves, the Trustees have regard to: 

- The fact that income and expenditure is broadly in balance. 

- The requirements of the Charities governing trust deed to maintain the extraordinary repair fund out of the income of the charity. 

- The Trustees' analysis of required future expenditure both of a capital and revenue nature which are not likely to be met from current income, such as additional costs arising from the requirements of national minimum care standards and the need to equip and maintain the up-to-date facilities needed to sustain the standard of residential amenities; 

- Forecast for levels of future income and expenditure; 

- Ongoing uncertainty of the investment market. 

The reserves policy is reviewed annually by the Trustees. 

## **Going concern** 

The Trustees have prepared the accounts on a going concern basis on the grounds that the charity has healthy bank balances and readily realisable funds and a reasonable expectation that ongoing occupancy levels will be adequate for the charity to continue to operate and, as such, there are no material uncertainties regarding going concern. 

## **Future plans** 

The Trustees will continue to operate the Home safeguarding and maintaining the assets and resources of  the Home while providing facilities, care and support to all residents enabling a comfortable and safe living environment. 

## **Structure, governance and management** 

## **Governing document** 

The charity is governed by its Trust Deed dated 5 July 1963 and amended by supplemental deeds dated 21 April 1980 and 27 May 2002 and is a registered charity number 207164. 

The charities 'Trustees Guidelines and Responsibilities' produced in 2007 clearly states how the charity meets its responsibilities in accordance with the Charities Trust Deed. 

The Trustees have complied with their duty under the Charities Act 2011 to have due regard to guidance published by the Charity Commission. 

## **Recruitment and appointment of new trustees** 

The appointment of new Trustees is the responsibility of continuing Trustees. The appointment of the chairman and vice chairman is by election annually at the annual general meeting. 

Page 6 



**George Edward Smart Homes** 

## **Report of the Trustees for the Year Ended 31 December 2021** 

## **Structure, governance and management** 

## **Organisational structure** 

Trustees normally have meetings six times a year to review the financial and operational management of the charity, as well as approving policy, strategic plans and ensuring proper governance. The charity's day to  day financial and operational management is delegated by the Trustees to the Home's manager. 

## **Induction and training of new trustees** 

The Trustees induction process for the appointment of new Trustees is reviewed by the chairman and manager. Trustees, staff and residents are involved in the induction process. Trustees have leave to attend external courses appropriate to their role and special interest. 

## **Reference and administrative details Registered Charity number** 

207164 

## **Principal address** 

Stepney Drive Scarborough YO12 5DJ 

## **Trustees** 

C G Boyes J Cobb R Cocker I Glaves G Hay B Sc FCA E Heritage J Nickson M Priestley J Patterson I Wyatt (appointed 15.12.21) 

## **Senior management** 

Mrs K Holroyd Head of Home Mrs M Watson Clerk to the Trustees 

## **Auditors** 

Smailes Goldie Watson Limited (Statutory Auditor) Chartered Accountants 12 Alma Square Scarborough North Yorkshire YO11 1JU 

## **Insurance** 

Allianz Assurance PLC 57 Ladymead Guildford Surrey GU1 1DB 

Page 7 



**George Edward Smart Homes** 

## **Report of the Trustees for the Year Ended 31 December 2021** 

## **Reference and administrative details** 

## **Investment Advisors** 

CCLA Investment Management Ltd 80 Cheapside London EC2V 6DZ 

## **Employment Law Advisors** 

Royal Bank of Scotland Mentor Services 1 Hardman Boulevard Manchester M3 3AQ 

## **Charity contact details** 

Telephone number 01723 375709 Fax. number 01723 500717 E.mail address enquiries@combe-hay.co.uk Website address www.combe-hay.co.uk 

## **Statement of trustees' responsibilities** 

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charity SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

Page 8 



## **George Edward Smart Homes** 

## **Report of the Trustees for the Year Ended 31 December 2021** 

Approved by order of the board of trustees on 26 October 2022 and signed on its behalf by: 

G Hay B Sc FCA - Trustee 

Page 9 



## **Report of the Independent Auditors to the Trustees of George Edward Smart Homes** 

## **Opinion** 

We have audited the financial statements of George Edward Smart Homes (the 'charity') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 

In our opinion the financial statements: 

- give a true and fair view of the state of the charity's affairs as at 31 December 2021 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

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

## **Conclusions relating to going concern** 

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

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

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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. 

Page 10 



## **Report of the Independent Auditors to the Trustees of George Edward Smart Homes** 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: 

- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

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

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

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

Page 11 



**Report of the Independent Auditors to the Trustees of George Edward Smart Homes** 

## **Our responsibilities for the audit of the financial statements** 

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

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

## Our approach was as follows: 

We obtained an understanding of the legal and regulatory requirements applicable to the charity and considered that the most significant are the Charities Statement of Recommended Practice, UK financial reporting standards as issued by the Financial Reporting Council, employment, environmental and health and safety legislation. 

We obtained an understanding of how the charity complies with these requirements by discussions with management and those charged with governance and inquired as to any known or suspected instances of non-compliance with laws and regulations. 

We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. 

To address the risk of fraud through management bias and override of controls, we: 

- perform analytical procedures to identify any unusual or unexpected relationships; 

- test journal entries to identify unusual transactions; 

- assess whether judgements and assumptions made in determining the accounting estimates were indicative 

- of potential bias; and 

-   investigate the rationale behind significant or unusual transactions. To address the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 

- agreeing financial statement disclosures to underlying supporting documentation; 

- reading the minutes of meetings of those charged with governance; 

- inquiring of management as to actual and potential litigation and claims; and 

-   reviewing correspondence with relevant regulators and the charity's legal advisors as necessary. Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement on the financial statements or non-compliance with regulation. 

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 Report of the Independent Auditors. 

Page 12 



## **Report of the Independent Auditors to the Trustees of George Edward Smart Homes** 

## **Use of our report** 

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. 

Smailes Goldie Watson Limited (Statutory Auditor) Chartered Accountants 12 Alma Square Scarborough North Yorkshire YO11 1JU 

26 October 2022 

Page 13 



## **George Edward Smart Homes** 

## **Statement of Financial Activities for the Year Ended 31 December 2021** 

|**2021**<br>Unrestricted<br>Restricted<br>Endowment<br>**Total**<br>funds<br>funds<br>fund<br>**funds**<br>Notes<br>£<br>£<br>£<br>**£**<br>**Income and endowments**<br>**from**<br>Donations and legacies<br>2<br>**5,250**<br>**-**<br>**-**<br>**5,250**<br>**Charitable activities**<br>Provision of accommodation,<br>care and support<br>**1,482,968**<br>**64,662**<br>**-**<br>**1,547,630**<br>Investment income<br>3<br>**98,001**<br>**-**<br>**-**<br>**98,001**<br>Other income<br>**5,510**<br>**-**<br>**-**<br>**5,510**<br>**Total**<br>**1,591,729**<br>**64,662**<br>**-**<br>**1,656,391**<br>**Expenditure on**<br>**Charitable activities**<br>5<br>Provision of accommodation,<br>care and support<br>**1,717,519**<br>**59,692**<br>**-**<br>**1,777,211**<br>Net gains on investments<br>**636,157**<br>**-**<br>**-**<br>**636,157**<br>**NET INCOME**<br>**510,367**<br>**4,970**<br>**-**<br>**515,337**<br>**Reconciliation of funds**<br>**Total funds brought**<br>**forward**<br>**4,544,269**<br>**424,143**<br>**249,501**<br>**5,217,913**<br>**Total funds carried**<br>**forward**<br>**5,054,636**<br>**429,113**<br>**249,501**<br>**5,733,250**|2020<br>Total<br>funds<br>£<br>52,557<br>1,656,218<br>93,877<br>4,201|
|---|---|
||1,806,853|
||1,765,300<br>272,788|
||314,341<br>4,903,572|
||5,217,913|



The notes form part of these financial statements 

Page 14 



## **George Edward Smart Homes** 

## **Balance Sheet 31 December 2021** 

|Unrestricted<br>Restricted<br>funds<br>funds<br>Notes<br>£<br>£<br>**Fixed assets**<br>Tangible assets<br>12<br>**119,166**<br>**424,143**<br>Investments<br>13<br>**4,910,115**<br>**-**<br>**5,029,281**<br>**424,143**<br>**Current assets**<br>Stocks<br>14<br>**4,579**<br>**-**<br>Debtors<br>15<br>**53,876**<br>**4,970**<br>Cash at bank and in hand<br>**122,879**<br>**5,417**<br>**181,334**<br>**10,387**<br>**Creditors**<br>Amounts falling due within<br>one year<br>16<br>**(155,979)**<br>**(5,417)**<br>**Net current assets**<br>**25,355**<br>**4,970**<br>**Total assets less current**<br>**liabilities**<br>**5,054,636**<br>**429,113**<br>**NET ASSETS**<br>**5,054,636**<br>**429,113**<br>**Funds**<br>18<br>Unrestricted funds<br>Restricted funds<br>Endowment funds<br>**Total funds**|**2021**<br>Endowment<br>**Total**<br>fund<br>**funds**<br>£<br>**£**<br>**249,501**<br>**792,810**<br>**-**<br>**4,910,115**<br>**249,501**<br>**5,702,925**<br>**-**<br>**4,579**<br>**-**<br>**58,846**<br>**-**<br>**128,296**<br>**-**<br>**191,721**<br>**-**<br>**(161,396)**<br>**-**<br>**30,325**<br>**249,501**<br>**5,733,250**<br>**249,501**<br>**5,733,250**<br>**5,054,636**<br>**429,113**<br>**249,501**<br>**5,733,250**|2020<br>Total<br>funds<br>£<br>791,907<br>4,073,958<br>4,865,865<br>4,677<br>64,159<br>402,496<br>471,332<br>(119,284)<br>352,048<br>5,217,913<br>5,217,913<br>4,544,269<br>424,143<br>249,501<br>5,217,913|
|---|---|---|



The financial statements were approved by the Board of Trustees and authorised for issue on 26 October 2022 and were signed on its behalf by: 

G Hay B Sc FCA - Trustee 

The notes form part of these financial statements 

Page 15 



## **George Edward Smart Homes** 

## **Cash Flow Statement for the Year Ended 31 December 2021** 

|Notes<br>**Cash flows from operating activities**<br>Cash generated from operations<br>1<br>Net cash (used in)/provided by operating activities<br>**Cash flows from investing activities**<br>Purchase of tangible fixed assets<br>Purchase of fixed asset investments<br>Interest received<br>Dividends received<br>Net cash (used in)/provided by investing activities<br>**Change in cash and cash equivalents**<br>**in the reporting period**<br>**Cash and cash equivalents at the**<br>**beginning of the reporting period**<br>**Cash and cash equivalents at the end**<br>**of the reporting period**|**2021**<br>**£**<br>**(149,643)**<br>**(149,643)**<br>**(20,141)**<br>**(200,000)**<br>**26**<br>**95,558**<br>**(124,557)**<br>**(274,200)**<br>**402,496**<br>**128,296**|2020<br>£<br>8,556|
|---|---|---|
|||8,556|
|||-<br>-<br>312<br>90,814|
|||91,126|
||||
|||99,682<br>302,814|
|||402,496|



The notes form part of these financial statements 

Page 16 



## **George Edward Smart Homes** 

## **Notes to the Cash Flow Statement for the Year Ended 31 December 2021** 

## **1. Reconciliation of net income to net cash flow from operating activities** 

|||||**2021**|2020|
|---|---|---|---|---|---|
|||||**£**|£|
||**Net income for the reporting period (as per the Statement of**|||||
||**Financial Activities)**|||**515,337**|314,341|
||**Adjustments for:**|||||
||Depreciation charges|||**73,589**|66,756|
||Gain on investments|||**(636,157)**|(272,788)|
||Interest received|||**(26)**|(312)|
||Dividends received|||**(95,558)**|(90,814)|
||Decrease in stocks|||**98**|289|
||Decrease/(increase) in debtors|||**5,313**|(22,690)|
||(Decrease)/increase in creditors|||**(12,239)**|13,774|
||**Net cash (used in)/provided by operations**|||**(149,643)**|8,556|
|2.|**Analysis of changes in net funds**|||||
|||At|1.1.21|Cash flow|**At 31.12.21**|
||||£|£|**£**|
||**Net cash**|||||
||Cash at bank and in hand|**402,496**||**(274,200)**|**128,296**|
|||**402,496**||**(274,200)**|**128,296**|
||**Total**|**402,496**||**(274,200)**|**128,296**|



The notes form part of these financial statements 

Page 17 



**George Edward Smart Homes** 

## **Notes to the Financial Statements for the Year Ended 31 December 2021** 

## **1. Accounting policies** 

## **Basis of preparing the financial statements** 

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets. 

## **Income** 

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. 

## **Government grants** 

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received, using the performance model. 

## **Expenditure** 

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. 

## **Tangible fixed assets** 

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life. 

|Freehold property|**- 2% on cost**|
|---|---|
|Fixtures and fittings|**- 15% to 33% on cost**|
|Motor vehicles|**- 20% on cost**|



There is a capitalisation threshold of £1,000 for tangible fixed assets. 

## **Stocks** 

Stocks are valued at the lower of cost and net realisable value. 

## **Taxation** 

The charity is exempt from tax on its charitable activities. 

## **Fund accounting** 

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. 

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. 

continued... 

Page 18 



**George Edward Smart Homes** 

## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** 

## **1. Accounting policies - continued** 

## **Fund accounting** 

The permanent endowment fund was set up as required by the initial documents establishing the charity, which state that the income and expenditure should be applied to the outgoings and expenses of running the Homes. 

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. 

## **Pension costs** 

The charity operates a defined contributory group personal pension plan for participating employees. Contributions payable are charged to the Statement of Financial Activities in the period to which they relate. 

## **Investments** 

Investments are included in the balance sheet at their market value at the balance sheet date. Any  gain or loss arising in the year, either on disposal or revaluation is reflected in the Statement of Financial Activities. 

## **Operating lease rentals** 

Operating lease rentals are included within expenses of the period to which they relate. 

## **Value added tax** 

Irrecoverable vat is included within the relevant expenditure heading. 

## **Creditors and provisions** 

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount. 

## **Going concern** 

The Trustees have prepared the accounts on a going concern basis on the grounds that the charity has healthy bank balances and readily realisable funds and a reasonable expectation that ongoing occupancy levels will be adequate for the charity to continue to operate, so there are no material uncertainties regarding going concern 

## **Financial instruments** 

The charity only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade, other debtors and creditors. Debt instruments that are payable or receivable within one year, typically debtors or creditors, are measured initially or subsequently at the undiscounted amount of cash or other consideration expected to be paid or received. 

continued... 

Page 19 



**George Edward Smart Homes** 

## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** 

|**2.**<br>**Donations and legacies**<br>Donations<br>**3.**<br>**Investment income**<br>Income from unlisted investments<br>Bank interest<br>**4.**<br>**Income from charitable activities**<br>Activity<br>Provision of accommodation, care and<br>Residents' fees<br>support<br>Provision of accommodation, care and<br>Covid-19 grants<br>support|**2021**<br>**£**<br>**5,250**<br>**2021**<br>**£**<br>**97,975**<br>**26**<br>**98,001**<br>**2021**<br>**£**<br>**1,478,058**<br>**69,572**<br>**1,547,630**|2020<br>£<br>52,557<br>2020<br>£<br>93,565<br>312<br>93,877<br>2020<br>£<br>1,557,377<br>98,841|2020<br>£<br>52,557|
|---|---|---|---|
||||2020<br>£<br>93,565<br>312|
||||93,877|
|||1,656,218||



During the year £4,910 (2020 - £16,891) was received in relation to the Covid-19 job retention scheme. Also during the year £64,462 (2020 - £81,950) was received from NYCC in respect of Covid-19 support. 

## **5. Charitable activities costs** 

|**Charitable activities costs**||||
|---|---|---|---|
||Direct|Support||
||Costs (see|costs (see||
||note 6)|note 7)|Totals|
||£|£|£|
|Provision of accommodation, care||||
|and support|**1,718,051**|**59,160**|**1,777,211**|



continued... 

Page 20 



## **George Edward Smart Homes** 

## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** 

## **6. Direct costs of charitable activities** 

|Staff costs<br>Catering, amenities, medical and rates<br>Insurance<br>Light, heat and water<br>Telephone<br>Printing, postage and stationery<br>Repairs and maintenance<br>Cleaning<br>Website, computer and adverts<br>Staff training<br>Travelling<br>Staff welfare<br>General expenses<br>Computer costs<br>Depreciation|**2021**<br>**£**<br>**1,257,804**<br>**141,409**<br>**22,726**<br>**91,461**<br>**5,042**<br>**3,973**<br>**75,826**<br>**19,423**<br>**3,655**<br>**2,379**<br>**803**<br>**1,568**<br>**8,792**<br>**9,601**<br>**73,589**<br>**1,718,051**|2020<br>£<br>1,259,843<br>151,049<br>16,714<br>82,007<br>5,857<br>3,178<br>72,050<br>21,731<br>554<br>2,685<br>667<br>1,836<br>10,718<br>9,888<br>66,756|
|---|---|---|
|||1,705,533|



## **7. Support costs** 

|**Support costs**|||||
|---|---|---|---|---|
||||Governance||
||Management|Finance|costs|Totals|
||£|£|£|£|
|Provision of accommodation, care and|||||
|support|**45,590**|**3,370**|**10,200**|**59,160**|



Support costs, included in the above, are as follows: 

## **Management** 

|**2021**<br>Provision<br>of<br>accommodation,<br>care and<br>support<br>**£**<br>Staff costs<br>**23,636**<br>Accountancy<br>**21,954**<br>**45,590**|2020<br>Total<br>activities<br>£<br>**24,476**<br>**21,030**<br>**45,506**|
|---|---|



continued... 

Page 21 



**George Edward Smart Homes** 

## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** 

## **7. Support costs - continued Finance** 

|**2021**<br>Provision<br>of<br>accommodation,<br>care and<br>support<br>**£**<br>Bank charges<br>**3,370**<br>**Governance costs**<br>**2021**<br>Provision<br>of<br>accommodation,<br>care and<br>support<br>**£**<br>Auditors' remuneration<br>**10,200**<br>Auditors' remuneration for non audit<br>work<br>**-**<br>**10,200**<br>**8.**<br>**Auditors' remuneration**<br>**2021**<br>**£**<br>Fees payable to the charity's auditors for the audit of the charity's<br>financial statements<br>**10,200**<br>Auditors' remuneration for non audit work<br>**-**<br>Total fees payable<br>**10,200**|2020<br>Total<br>activities<br>£<br>**3,043**<br>2020<br>Total<br>activities<br>£<br>**10,240**<br>**978**<br>**11,218**<br>2020<br>£<br>10,240<br>978<br>11,218|
|---|---|



continued... 

Page 22 



**George Edward Smart Homes** 

## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** 

## **9. Trustees' remuneration and benefits** 

There were no trustees' remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020. 

## **Trustees' expenses** 

In the year ended 31st December 2021 Ashby Berry Coulsons Limited, a company of which G Hay was a Director and Shareholder until July 2020, charged £21,954 for providing book-keeping, accountancy and payroll services. (2020 - £21,030) 

## **10. Staff costs** 

|Wages and salaries<br>Social security costs<br>Other pension costs|**2021**<br>**£**<br>**1,169,851**<br>**70,134**<br>**41,455**<br>**1,281,440**|2020<br>£<br>1,172,599<br>66,490<br>45,230|
|---|---|---|
|||1,284,319|



The average monthly number of employees during the year was as follows: 

|Care staff<br>Domestic, catering, maintenance, garden<br>Support staff|**2021**<br>**35**<br>**31**<br>**1**<br>**67**|2020<br>38<br>29<br>2|
|---|---|---|
|||69|



No employees received emoluments in excess of £60,000. 

The key management personnel of the charity comprises the Home manager and deputies. The total employee benefits of the key management of the charity were £126,020 (2020 - £122,695). 

## **11. Comparatives for the statement of financial activities** 

|**Income and endowments from**<br>Donations and legacies<br>**Charitable activities**<br>Provision of accommodation, care and<br>support<br>Investment income<br>Other income<br>**Total**|Unrestricted<br>funds<br>£<br>52,557<br>1,574,268<br>93,877<br>4,201<br>1,724,903|Restricted<br>funds<br>£<br>-<br>81,950<br>-<br>-<br>81,950|Endowment<br>fund<br>£<br>-<br>-<br>-<br>-<br>-|Total<br>funds<br>£<br>52,557<br>1,656,218<br>93,877<br>4,201|
|---|---|---|---|---|
|||||1,806,853|



continued... 

Page 23 



## **George Edward Smart Homes** 

## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** 

|**11.**<br>**Comparatives for the statement of financial activities - continued**<br>Unrestricted<br>Restricted<br>funds<br>funds<br>£<br>£<br>**Expenditure on**<br>**Charitable activities**<br>Provision of accommodation, care and<br>support<br>1,683,350<br>81,950<br>Net gains on investments<br>272,788<br>-<br>**NET INCOME**<br>314,341<br>-<br>**Reconciliation of funds**<br>**Total funds brought forward**<br>4,229,928<br>424,143<br>**Total funds carried forward**<br>4,544,269<br>424,143<br>**12.**<br>**Tangible fixed assets**<br>Fixtures<br>Freehold<br>and<br>property<br>fittings<br>£<br>£<br>**Cost**<br>At 1 January 2021<br>**1,313,855**<br>**803,268**<br>Additions<br>**-**<br>**74,492**<br>At 31 December 2021<br>**1,313,855**<br>**877,760**<br>**Depreciation**<br>At 1 January 2021<br>**611,240**<br>**713,976**<br>Charge for year<br>**34,777**<br>**38,812**<br>At 31 December 2021<br>**646,017**<br>**752,788**<br>**Net book value**<br>At 31 December 2021<br>**667,838**<br>**124,972**<br>At 31 December 2020<br>702,615<br>89,292||Endowment<br>fund<br>£<br>-<br>-<br>-<br>249,501<br>249,501<br>Motor<br>vehicles<br>£<br>**35,678**<br>**-**<br>**35,678**<br>**35,678**<br>**-**<br>**35,678**<br>**-**<br>-|Endowment<br>fund<br>£<br>-<br>-<br>-<br>249,501<br>249,501<br>Motor<br>vehicles<br>£<br>**35,678**<br>**-**<br>**35,678**<br>**35,678**<br>**-**<br>**35,678**<br>**-**<br>-|Total<br>funds<br>£<br>1,765,300<br>272,788|
|---|---|---|---|---|
|||||314,341<br>4,903,572|
|||||5,217,913|
|||||Totals<br>£<br>**2,152,801**<br>**74,492**<br>**2,227,293**<br>**1,360,894**<br>**73,589**<br>**1,434,483**<br>**792,810**<br>791,907|
||||||
||||||
||||||
||||||
||||||



The market value of the freehold property on a current use basis is estimated by the trustees to be in the region of £3,500,000. 

continued... 

Page 24 



## **George Edward Smart Homes** 

## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** 

## **13. Fixed asset investments** 

|**Market value**<br>At 1 January 2021<br>Additions<br>Revaluations<br>At 31 December 2021<br>**Net book value**<br>At 31 December 2021<br>At 31 December 2020|Unlisted<br>investments<br>£<br>**4,073,958**<br>**200,000**<br>**636,157**<br>**4,910,115**<br>**4,910,115**<br>4,073,958|
|---|---|



There were no investment assets outside the UK. 

The unlisted investments portfolio at 31 December 2021 is as follows:- 

||2021|2021|2020|2020|
|---|---|---|---|---|
||Market||Market||
||value|Cost|value|Cost|
||£|£|£|£|
|Charities Official Investment|||||
|Fund Income Fund|3,823,072|2,094,225|3,148,415|1,894,225|
|Charities Official Investment|||||
|Fund Accumulation Units|1,087,043|350,000|925,543|350,000|



Cost or valuation at 31 December 2021 is represented by: 

|||**Unlisted**|
|---|---|---|
|||**investments**|
|||**£**|
|Valuation in|2021|**4,910,115**|



Page 25 

continued... 



**George Edward Smart Homes** 

## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** 

|**14.**<br>**Stocks**<br>**2021**<br>**£**<br>Stocks<br>**4,579**<br>**15.**<br>**Debtors: amounts falling due within one year**<br>**2021**<br>**£**<br>Trade debtors<br>**1,266**<br>Other debtors<br>**1,903**<br>Prepayments and accrued income<br>**55,677**<br>**58,846**<br>**16.**<br>**Creditors: amounts falling due within one year**<br>**2021**<br>**£**<br>Trade creditors<br>**74,946**<br>Other creditors<br>**39,674**<br>Accruals and deferred income<br>**46,776**<br>**161,396**<br>**17.**<br>**Leasing agreements**<br>Minimum lease payments under non-cancellable operating leases fall due as follows:<br>**2021**<br>**£**<br>Within one year<br>**9,926**<br>Between one and five years<br>**27,988**<br>In more than five years<br>**8,477**<br>**46,391**||2020<br>£<br>4,677<br>2020<br>£<br>41,408<br>-<br>22,751|2020<br>£<br>4,677|
|---|---|---|---|
|||64,159||
|||2020<br>£<br>19,083<br>43,998<br>56,203||
||119,284|||
|||2020<br>£<br>3,096<br>3,096<br>-||
|||6,192||



Included within the costs of charitable activities are charges relating to operating lease rentals of £8,478 (2020 - £3,096). 

Page 26 

continued... 



## **George Edward Smart Homes** 

## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** 

## **18. Movement in funds** 

|At 1.1.21<br>£<br>**Unrestricted funds**<br>General fund<br>**4,509,935**<br>Designated minibus fund<br>**34,334**<br>**4,544,269**<br>**Restricted funds**<br>Extraordinary repairs fund<br>**424,143**<br>Covid-19 support<br>**-**<br>**424,143**<br>**Endowment funds**<br>Permanent endowment fund<br>**249,501**<br>**TOTAL FUNDS**<br>**5,217,913**<br>Net movement in funds, included in the above are as follows:<br>Incoming<br>Resources<br>resources<br>expended<br>£<br>£<br>**Unrestricted funds**<br>General fund<br>**1,591,729**<br>**(1,717,519)**<br>**Restricted funds**<br>Covid-19 support<br>**64,662**<br>**(59,692)**<br>**TOTAL FUNDS**<br>**1,656,391**<br>**(1,777,211)**|Net<br>movement<br>in funds<br>£<br>**510,367**<br>**-**<br>**510,367**<br>**-**<br>**4,970**<br>**4,970**<br>**-**<br>**515,337**<br>Gains and<br>losses<br>£<br>**636,157**<br>**-**<br>**636,157**|At<br>31.12.21<br>£<br>**5,020,302**<br>**34,334**<br>**5,054,636**<br>**424,143**<br>**4,970**<br>**429,113**<br>**249,501**<br>**5,733,250**<br>Movement<br>in funds<br>£<br>**510,367**<br>**4,970**<br>**515,337**|
|---|---|---|



continued... 

Page 27 



**George Edward Smart Homes** 

## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** 

## **18. Movement in funds - continued** 

## **Comparatives for movement in funds** 

|**Unrestricted funds**<br>General fund<br>Designated minibus fund<br>**Restricted funds**<br>Extraordinary repairs fund<br>**Endowment funds**<br>Permanent endowment fund<br>**TOTAL FUNDS**<br>Comparative net movement in funds, included in the above<br>Incoming<br>resources<br>£<br>**Unrestricted funds**<br>General fund<br>1,724,903<br>**Restricted funds**<br>Covid-19 support<br>81,950<br>**TOTAL FUNDS**<br>1,806,853|At 1.1.20<br>£<br>4,195,594<br>34,334<br>4,229,928<br>424,143<br>249,501<br>4,903,572<br>are as follows:<br>Resources<br>expended<br>£<br>(1,683,350)<br>(81,950)<br>(1,765,300)|Net<br>movement<br>in funds<br>£<br>314,341<br>-<br>314,341<br>-<br>-<br>314,341<br> <br>Gains and<br>losses<br>£<br>272,788<br>-<br>272,788|At<br>31.12.20<br>£<br>4,509,935<br>34,334<br>4,544,269<br>424,143<br>249,501<br>5,217,913<br>Movement<br>in funds<br>£<br>314,341<br>-<br>314,341|
|---|---|---|---|



The designated minibus fund is intended to finance the future replacement of the existing minibus. 

The charity's governing trust deed requires the trustees to establish an extraordinary repairs fund for the purpose of providing for extraordinary repairs, improvement or rebuilding of the Homes. The extraordinary repairs fund is to be established and maintained out of income of the charity. 

The initial documents setting up the charity stipulated that a permanent endowment fund be created, the income from which would be used for the general running of the Homes. 

continued... 

Page 28 



**George Edward Smart Homes** 

## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** 

## **19. Employee benefit obligations** 

Pension contributions amounting to £19,680 (2020 - £11,568) were due at the balance sheet date. 

## **20. Related party disclosures** 

TPRC Limited were contracted for website development, a director of this company is the son of a trustee. The cost of the website development was £2,803, this transaction was conducted on normal commercial terms and the balance of the invoice was shown in trade creditors at the year end. 

## **21. Financial assets and liabilities** 

||**2021**|2020|
|---|---|---|
||**£**|£|
|Financial assets measured at fair value through SOFA|**4,910,115**|4,073,958|



Financial assets measured at fair value comprise investments held at market value. 

## **22. Post balance sheet event** 

As a result of the COVID 19 Pandemic procedures were reviewed to ensure maximum safety and care for residents. Staff rotas and cleaning procedures were strengthened and visiting restrictions were introduced. The Trustees continue to be grateful for cooperation from residents and their families in response to the situation. All staff have been exemplary in their assistance, cooperation and involvement in implementing the changes, and the Trustees record their thanks and praise to all staff for the dedication and care shown. At the date of this report there have been no cases of COVID illness among the residents. 

The financial effect due to reduced residents and increased costs is closely monitored by the Trustees and there are sufficient funds and reserves available to absorb any reduction in income for the foreseeable future. 

Page 29