REGISTERED CHARITY NUMBER: 207164
Report of the Trustees and
Financial Statements
for the Year Ended 31 December 2023
for
George Edward Smart Homes
George Edward Smart Homes
Contents of the Financial Statements for the Year Ended 31 December 2023
| Page | |
|---|---|
| Report of the Trustees | 1 to 8 |
| Report of the Independent Auditors | 9 to 11 |
| Statement of Financial Activities | 12 |
| Balance Sheet | 13 |
| Cash Flow Statement | 14 |
| Notes to the Cash Flow Statement | 15 |
| Notes to the Financial Statements | 16 to 27 |
George Edward Smart Homes
Report of the Trustees for the Year Ended 31 December 2023
The trustees present their report with the financial statements of the charity for the year ended 31 December 2023. 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 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:
George Edward Smart Homes will cease to exist as of 1 January 2025 and continue as Combe Hay on the 1 January 2025.
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. Following the latest inspection the Home is actively working on the points raised by inspectors to bring improvements and changes to systems and procedures to provide good quality standards. 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 respite care accommodation. This has been well used with people making return visits with a view to long term stay. New residents are assessed and accepted based on ability to meet needs.
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 housekeeping team.
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.
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George Edward Smart Homes
Report of the Trustees for the Year Ended 31 December 2023
Objectives and activities
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 2024 by 10%. Staff remuneration was reviewed in April 2022 and increased by 10% also keeping above the increases in National Minimum Wage.
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.
Care reviews are completed regular with residents and families ensuring communication is clear and always two way!
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 as a you said we did.
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.
Following relaxation of COVID-19 restrictions, 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, 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.
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, are ongoing.
From time to time concerts, lectures and musical evenings had been provided by professional and local personalities. We have nowt returned to inviting entertainers or children to visit the home to host carol services and concerts.
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George Edward Smart Homes
Report of the Trustees for the Year Ended 31 December 2023
Objectives and activities
The Home 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.
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.
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 appropriate staff are 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 70 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.
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George Edward Smart Homes
Report of the Trustees for the Year Ended 31 December 2023
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 net outgoing resources of £323,964 (2022 outgoing resources of £55,756). The net movement of funds, after taking account of unrealised gains on investments, leads to an increase in funds of £85,828 (2022 decrease in funds of £598,090).
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 1%, there was a decrease of 13% in 2022.
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George Edward Smart Homes
Report of the Trustees for the Year Ended 31 December 2023
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 £4,506,321 (2022 - £4,400,207) compared with charitable expenditure for the year of £2,215,043 (2022 - £1,990,120) which is considerably above the Trustees adopted policy.
In determining the level of free reserves, the Trustees have regard to:
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The fact that income and expenditure is broadly in balance.
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The requirements of the Charities governing trust deed to maintain the extraordinary repair fund out of the income of the charity.
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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;
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Forecast for levels of future income and expenditure;
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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.
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.
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George Edward Smart Homes
Report of the Trustees for the Year Ended 31 December 2023
Structure, governance and management 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 R Cocker I Glaves G Hay B Sc FCA E Heritage J Nickson M Priestley J Patterson I Wyatt J Stephenson (appointed 1.1.23)
Senior management
Mrs Julie Haley BM/CEO Head of Home - started 3rd July 2023 Head of Home - left 29th November Mrs K Holroyd 2023 Head of Home - started 30st October Mr A Holden 2023 and left November 2024 Mrs M Watson Clerk to the Trustees - Office manager
Auditors
Ashby Berry Coulsons Limited Statutory Auditors 2 Belgrave Crescent Scarborough North Yorkshire YO11 1UB
Insurance
Allianz Assurance PLC 57 Ladymead Guildford Surrey GU1 1DB
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George Edward Smart Homes
Report of the Trustees for the Year Ended 31 December 2023
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
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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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.
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George Edward Smart Homes
Report of the Trustees for the Year Ended 31 December 2023
Approved by order of the board of trustees on 25 October 2024 and signed on its behalf by:
G Hay B Sc FCA - Trustee
Page 8
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 2023 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:
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give a true and fair view of the state of the charity's affairs as at 31 December 2023 and of its incoming resources and application of resources, for the year then ended;
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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
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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.
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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:
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the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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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.
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:
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Our audit procedures have included:
Performing audit work over the risk of management override of controls, including reviewing accounting estimates for bias and testing journal entries and other adjustments for appropriateness; Reviewing minutes of meetings of those charged with governance;
Reviewing financial statement disclosures to assess compliance with applicable laws and regulations Enquiry of management and those charged with governance concerning potential litigation and claims.
We consider that these procedures, together with evidence acquired from our other audit work, provide an audit approach enabling a reasonable likelihood of detection of irregularities.
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.
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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.
Ashby Berry Coulsons Limited Statutory Auditors 2 Belgrave Crescent Scarborough North Yorkshire YO11 1UB
25 October 2024
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George Edward Smart Homes
Statement of Financial Activities for the Year Ended 31 December 2023
| 2023 Unrestricted Restricted Endowment Total funds funds fund funds Notes £ £ £ £ Income and endowments from Donations and legacies 2 10,000 - - 10,000 Charitable activities 4 Provision of accommodation, care and support 1,776,025 - - 1,776,025 Investment income 3 103,459 - - 103,459 Other income 1,595 - - 1,595 Total 1,891,079 - - 1,891,079 Expenditure on Charitable activities 5 Provision of accommodation, care and support 2,215,043 - - 2,215,043 Net gains/(losses) on investments 409,792 - - 409,792 NET INCOME/(EXPENDITURE) 85,828 - - 85,828 Reconciliation of funds Total funds brought forward 4,461,516 424,143 249,501 5,135,160 Total funds carried forward 4,547,344 424,143 249,501 5,220,988 |
2022 Total funds £ 145,004 1,679,965 101,895 7,500 1,934,364 1,990,120 (542,334) (598,090) 5,733,250 5,135,160 |
|---|---|
The notes form part of these financial statements
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George Edward Smart Homes
Balance Sheet 31 December 2023
| Unrestricted Restricted funds funds Notes £ £ Fixed assets Tangible assets 12 6,689 424,143 Investments 13 4,327,573 - 4,334,262 424,143 Current assets Stocks 14 4,678 - Debtors 15 116,805 - Cash at bank and in hand 283,793 - 405,276 - Creditors Amounts falling due within one year 16 (192,194) - Net current assets 213,082 - Total assets less current liabilities 4,547,344 424,143 NET ASSETS 4,547,344 424,143 Funds 18 Unrestricted funds Restricted funds Endowment funds Total funds |
2023 Endowment Total fund funds £ £ 249,501 680,333 - 4,327,573 249,501 5,007,906 - 4,678 - 116,805 - 283,793 - 405,276 - (192,194) - 213,082 249,501 5,220,988 249,501 5,220,988 4,547,344 424,143 249,501 5,220,988 |
2022 Total funds £ 721,984 4,267,781 4,989,765 4,579 49,912 198,548 253,039 (107,644) 145,395 5,135,160 5,135,160 4,461,516 424,143 249,501 5,135,160 |
|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 25 October 2024 and were signed on its behalf by:
G Hay B Sc FCA - Trustee
The notes form part of these financial statements
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George Edward Smart Homes
Cash Flow Statement for the Year Ended 31 December 2023
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash used in operating activities Cash flows from investing activities Purchase of tangible fixed assets Sale of fixed asset investments Interest received Dividends received Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2023 £ (338,939) (338,939) (29,275) 350,000 2,041 101,418 424,184 85,245 198,548 283,793 |
2022 £ (76,901) (76,901) (54,351) 100,000 477 101,027 147,153 70,252 128,296 198,548 |
|---|---|---|
The notes form part of these financial statements
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George Edward Smart Homes
Notes to the Cash Flow Statement for the Year Ended 31 December 2023
| 1. | Reconciliation of net income/(expenditure) to net cash flow from operating activities | Reconciliation of net income/(expenditure) to net cash flow from operating activities | Reconciliation of net income/(expenditure) to net cash flow from operating activities | |
|---|---|---|---|---|
| 2023 | 2022 | |||
| £ | £ | |||
| Net income/(expenditure) for the reporting period | (as per the | |||
| Statement of Financial Activities) | 85,828 | (598,090) | ||
| Adjustments for: | ||||
| Depreciation charges | 70,925 | 70,826 | ||
| (Gain)/losses on investments | (409,792) | 542,334 | ||
| Interest received | (2,041) | (477) | ||
| Dividends received | (101,418) | (101,027) | ||
| Increase in stocks | (99) | - | ||
| (Increase)/decrease in debtors | (66,892) | 8,934 | ||
| Increase in creditors | 84,550 | 599 | ||
| Net cash used in operations | (338,939) | (76,901) | ||
| 2. | Analysis of changes in net funds | |||
| At 1.1.23 | Cash flow | At 31.12.23 | ||
| £ | £ | £ | ||
| Net cash | ||||
| Cash at bank and in hand | 198,548 | 85,245 | 283,793 | |
| 198,548 | 85,245 | 283,793 | ||
| Total | 198,548 | 85,245 | 283,793 |
The notes form part of these financial statements
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George Edward Smart Homes
Notes to the Financial Statements for the Year Ended 31 December 2023
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.
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continued...
George Edward Smart Homes
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
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 17
George Edward Smart Homes
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
| 2. | Donations and legacies | |||
|---|---|---|---|---|
| 2023 | 2022 | |||
| £ | £ | |||
| Donations | 10,000 | 145,004 | ||
| 3. | Investment income | |||
| 2023 | 2022 | |||
| £ | £ | |||
| Income from unlisted investments | 101,418 | 101,418 | ||
| Bank interest | 2,041 | 477 | ||
| 103,459 | 101,895 | |||
| 4. | Income from charitable activities | |||
| 2023 | 2022 | |||
| Activity | £ | £ | ||
| Provision of accommodation, care and | ||||
| Residents' fees | support | 1,776,025 | 1,645,479 | |
| Provision of accommodation, care and | ||||
| Covid-19 grants | support | - | 34,486 | |
| 1,776,025 | 1,679,965 | |||
| During the year £0 (2022 - | £34,486) was received from NYCC in respect of Covid-19 support. | |||
| 5. | Charitable activities costs | |||
| Direct | Support | |||
| Costs (see | costs (see | |||
| note 6) | note 7) | Totals | ||
| £ | £ | £ | ||
| Provision of accommodation, care | ||||
| and support | 2,143,752 | 71,291 | 2,215,043 |
continued...
Page 18
George Edward Smart Homes
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
6. Direct costs of charitable activities
| Staff costs Catering, amenities, medical and rates Insurance Light, heat and water Telephone Printing, postage and stationery Repairs and maintenance Cleaning Website, computer and adverts Staff training Staff welfare General expenses Computer costs Depreciation Support costs Management £ Provision of accommodation, care and support 59,855 Support costs, included in the above, are as follows: Management Staff costs Accountancy |
Finance £ 3,076 |
2023 2022 £ £ 1,504,482 1,380,542 181,906 166,921 33,548 25,843 155,148 119,765 5,344 4,692 7,278 3,135 105,872 90,921 10,734 12,292 7,640 1,348 7,904 3,036 2,382 1,450 38,564 31,292 12,025 9,980 70,925 70,826 2,143,752 1,922,043 Governance costs Totals £ £ 8,360 71,291 2023 2022 Provision of accommodation, care and Total support activities £ £ 37,943 30,922 21,912 21,960 59,855 52,882 |
|---|---|---|
7. Support costs
continued...
Page 19
George Edward Smart Homes
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
7. Support costs - continued Finance
| 2023 Provision of accommodation, care and support £ Bank charges 3,076 Governance costs 2023 Provision of accommodation, care and support £ Auditors' remuneration 8,360 8. Auditors' remuneration 2023 £ Fees payable to the charity's auditors for the audit of the charity's financial statements 8,360 |
2022 Total activities £ 3,885 2022 Total activities £ 11,310 2022 £ 11,310 |
|---|---|
9. Trustees' remuneration and benefits
There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022.
continued...
Page 20
George Edward Smart Homes
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
10. Staff costs
| Wages and salaries Social security costs Other pension costs |
2023 £ 1,396,989 97,599 47,837 1,542,425 |
2022 £ 1,279,745 86,856 44,863 |
|---|---|---|
| 1,411,464 |
The average monthly number of employees during the year was as follows:
| Care staff Domestic, catering, maintenance, garden Support staff |
2023 37 29 1 67 |
2022 35 30 1 |
|---|---|---|
| 66 |
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 £204,296 (2022 - £137,182).
11. Comparatives for the statement of financial activities
| Income and endowments from Donations and legacies Charitable activities Provision of accommodation, care and support Investment income Other income Total Expenditure on Charitable activities Provision of accommodation, care and support Net gains/(losses) on investments NET INCOME/(EXPENDITURE) |
Unrestricted funds £ 145,004 1,645,479 101,895 7,500 1,899,878 1,950,664 (542,334) (593,120) |
Restricted funds £ - 34,486 - - 34,486 39,456 - (4,970) |
Endowment fund £ - - - - - - - - |
Total funds £ 145,004 1,679,965 101,895 7,500 1,934,364 1,990,120 (542,334) (598,090) |
|---|---|---|---|---|
Page 21 continued...
George Edward Smart Homes
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
| 11. Comparatives for the statement of financial activities - continued Unrestricted Restricted funds funds £ £ Reconciliation of funds Total funds brought forward 5,054,636 429,113 Total funds carried forward 4,461,516 424,143 12. Tangible fixed assets Fixtures Freehold and property fittings £ £ Cost At 1 January 2023 1,313,855 877,760 Additions - 29,275 At 31 December 2023 1,313,855 907,035 Depreciation At 1 January 2023 680,794 788,837 Charge for year 34,777 36,149 At 31 December 2023 715,571 824,986 Net book value At 31 December 2023 598,284 82,049 At 31 December 2022 633,061 88,923 |
Endowment fund £ 249,501 249,501 Motor vehicles £ 35,678 - 35,678 35,678 - 35,678 - - |
Endowment fund £ 249,501 249,501 Motor vehicles £ 35,678 - 35,678 35,678 - 35,678 - - |
Total funds £ 5,733,250 |
|
|---|---|---|---|---|
| 5,135,160 | ||||
| Totals £ 2,227,293 29,275 2,256,568 1,505,309 70,926 1,576,235 680,333 721,984 |
||||
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 22
George Edward Smart Homes
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
13. Fixed asset investments
| Market value At 1 January 2023 Disposals Revaluations At 31 December 2023 Net book value At 31 December 2023 At 31 December 2022 |
Unlisted investments £ 4,267,781 (350,000) 409,792 4,327,573 4,327,573 4,267,781 |
|---|---|
There were no investment assets outside the UK.
The unlisted investments portfolio at 31 December 2023 is as follows:-
| 2023 | 2023 | 2022 | 2022 | |
|---|---|---|---|---|
| Market | Market | |||
| value | Cost | value | Cost | |
| £ | £ | £ | £ | |
| Charities Official Investment | ||||
| Fund Income Fund | 3,694,288 | 2,094,225 | 3,378,622 | 2,094,225 |
| Charities Official Investment | ||||
| Fund Accumulation Units | 633,284 | 199,378 | 889,159 | 315,009 |
Cost or valuation at 31 December 2023 is represented by:
| Valuation in 2022 Valuation in 2023 Cost |
Unlisted investments £ 1,858,547 59,792 2,409,234 4,327,573 |
|---|---|
continued...
Page 23
George Edward Smart Homes
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
| 14. Stocks 2023 £ Stocks 4,678 15. Debtors: amounts falling due within one year 2023 £ Trade debtors 84,472 Other debtors 4,106 Prepayments and accrued income 28,227 116,805 16. Creditors: amounts falling due within one year 2023 £ Trade creditors 39,761 Other creditors 73,579 Accruals and deferred income 78,854 192,194 17. Leasing agreements Minimum lease payments under non-cancellable operating leases fall due as follows: 2023 £ Within one year 10,641 Between one and five years 33,098 In more than five years - 43,739 |
2022 £ 4,579 2022 £ 8,943 3,129 37,840 |
2022 £ 4,579 2022 £ 8,943 3,129 37,840 |
2022 £ 4,579 |
|---|---|---|---|
| 49,912 | |||
| 2022 £ 20,909 10,580 76,155 |
|||
| 107,644 | |||
| 2022 £ 10,184 39,383 2,119 |
|||
| 51,686 |
Included within the costs of charitable activities are charges relating to operating lease rentals of £11,036 (2022 - £10,383).
continued...
Page 24
George Edward Smart Homes
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
18. Movement in funds
| At 1.1.23 £ Unrestricted funds General fund 4,427,182 Designated minibus fund 34,334 4,461,516 Restricted funds Extraordinary repairs fund 424,143 Endowment funds Permanent endowment fund 249,501 TOTAL FUNDS 5,135,160 Net movement in funds, included in the above are as follows: Incoming Resources resources expended £ £ Unrestricted funds General fund 1,891,079 (2,215,043) TOTAL FUNDS 1,891,079 (2,215,043) |
Net movement in funds £ 85,828 - 85,828 - - 85,828 Gains and losses £ 409,792 409,792 |
At 31.12.23 £ 4,513,010 34,334 4,547,344 424,143 249,501 5,220,988 Movement in funds £ 85,828 85,828 |
|---|---|---|
Page 25
continued...
George Edward Smart Homes
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
18. Movement in funds - continued
Comparatives for movement in funds
| Unrestricted funds General fund Designated minibus fund Restricted funds Extraordinary repairs fund Covid-19 support Endowment funds Permanent endowment fund TOTAL FUNDS Comparative net movement in funds, included in the above Incoming resources £ Unrestricted funds General fund 1,899,878 Restricted funds Covid-19 support 34,486 TOTAL FUNDS 1,934,364 |
At 1.1.22 £ 5,020,302 34,334 5,054,636 424,143 4,970 429,113 249,501 5,733,250 are as follows: Resources expended £ (1,950,664) (39,456) (1,990,120) |
Net movement in funds £ (593,120) - (593,120) - (4,970) (4,970) - (598,090) Gains and losses £ (542,334) - (542,334) |
At 31.12.22 £ 4,427,182 34,334 4,461,516 424,143 - 424,143 249,501 5,135,160 Movement in funds £ (593,120) (4,970) (598,090) |
|---|---|---|---|
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.
Page 26
continued...
George Edward Smart Homes
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
19. Employee benefit obligations
Pension contributions amounting to £19,784 (2022 - £14,263) were due at the balance sheet date.
20. Related party disclosures
A family member of a trustee is employed by the charity in an administrative role, also acting as clerk to the trustees. This appointment was made in open competition and the trustee was not involved in the decision-making process regarding appointment. The role is paid at an independently commercial level wholly commensurate with the individual's qualification and contribution to the charity and receives no special treatment as a result of the relationship to a trustee.
21. Financial assets and liabilities
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Financial assets measured at fair value through SOFA | 4,327,573 | 4,267,781 |
Financial assets measured at fair value comprise investments held at market value.
Page 27