Nightingale Hammer50n Annual Report and Financial Statements 30 Septernber 2023 Nightingale Hainmerson Charity Reg. No. 207316 Trustées Report and Annual Ac¢oLints lor Year Ended 30 September 2023
[left blank intentionallyl N¥tillgale Hammersori Chai'ity Reg. No. 207316 Trustees Report anu AnnLial Accounts for Year Ended 30 Septeniber 2023
CONTENTS Reports Reference and administrative information Professional advisors Chairman's report Report of the directors of the corporate trustee Independent auditor's report 26 Accounts Consolidated ststement of financial activities 30 Charity statement of financial activities Balance sheet 31 32 Consolidated statement of cash flow 33 Notes to the financial statements 34 Nightingale Hammerson Charity Reg. No. 207316 Trustees Report and AiTrnual Accounts for Year Ended 30 September 2023
Registered Name Registered Charity Number Nightingale Hammerson 207316 governed bya scheme made bythe Charity Commission on 30 March 2012 Principal office 105 N ightingale Lane London SW12 8NB 020 8673 3495 020 8675 2258 Telephone Facslmile Website www.n mmer Llfe Patron Dame Vivien Duffield DBE President HaNey Rosenblatt Vice Presidents Patricia Beecham Susan Grant Corporate Trustee Nightingale Hammer50n Trustee Company Limited Non-Executive Director5 and Board Members: Chairman Joanne Black Co-chair (from l February 20231 Paul Althasen Co-chair (from l February 20231 HonoraryTreasurers John Reizenstei n (Retired l June 20231 Russell Nathan (from l July 20231 other directors Carolyn Balcombe Daniel Dayan Gill Livingston lan Grabiner (Appointed l July 20231 Joanne Black Keith Barnett Melvin Lawson Paul Althasen Rosalind Taylor Russell Nathan IAppointed i July 20231 Steven Sharpe Nightingale Hainnierson Charity Reg. No. 207316 Trustees Report and Anniial AccoLints for Year Ended 30 September 2023
REFERENCE ANDADMINISTRATIVE INFORMATION Senior Leadership Team: Chief Executive Officer Dlrectorof Finance, Propertyand ICT Director of Finance Director of Care Jenny Pattinson Abiola Yusuf (to 4 December 20221 Chelsea Bassom (from l February20231 Nuno Santos Lopes (to 27 June 20231 Chipema Chitambala Ifrom 7 August 20231 Kevin Noble (to 16 June 20231 Roy Chow (from 14 August 20231 Florian Jourdhier (to 31 December 20221 Ed Davidson Ifrom 13 June 20231 Dirertor of People Head of Human Resources Director of Hospitality and Operations Director of Operations PROFESSIONALADVISORS Auditor Buzzacott LLP 130 Wood Street London EC2V6DL Prlnclpal bankers National Westminster Bank plc 98 Wandsworth High stet London SW184ZD Investment managers Veritas Investment Management LLP 90 LongAcre London WC2E 9RA Cazenove Capitsl l London Wall Place London EC2Y SAU Solicitors Bircham Dyson Bell LLP 50 Broadway London SWIH OBL Nightingale Hammerson Cliarity Reg. No. 207316 Triistees Report aiTrd Annual Accounts for Year Ended 30 September 2023
CHAIRMAN'S REPORT Since commencing our position of Co-chair in February 2023. we have led Nightingale Hammerson through another busy. productive and successful year. We reached full occupancy at Hammerson House, Wohl Campus, which is a significant milestone in the history of the Charity. The gradual opening of each household, to allow the team to be recruited and fully trained meant we wore able to deliver exceptional care to every resident from day one. We currently have an active wait list for a room at Hammerson House to become available. In South London, Nightingale House was again awarded Outstonding status by the Care Quality Commission. This recognises the incredible achievement of our Senior Leadership Team and the dedicated expertise of our multi-disciplinary care teams. volunteer5, and the wider support teams at Nightingale Hammerson. On behalf of our fellow trustees. we wish to officially acknowledge their professionalism, compassion. and hard work to ensure each resident receives the best possible care, kindness and joy that we strive for every day. Crucial to maintaining our delivery of outstanding care is the leadership we bring to guide our team members in their day to day roles. This year, we have successfully recruited a full SLT team. We are pleased to welcome Chelsea Bassom. Director of Finance. Roy Chow. Head of HR. Chipema Chitambala, Director of Care Services and Ed Davidson, Director of Operations. Our SLT Team are expertly guided by our Chief Executive, Jenny Pattinson, who leads our charity. With this strong and skilled team at the helm, we will continue to deliver exceptional care seNice5 to residents and provide an incredible workplace for our people. Nightingale Hammerson has always had a strong drive to deliver innovation in care. The initiative5 that complement our care delivery include our Intergenerational Programme, Care Home Education Centre, and our successful Care Home Research Forum, which is now in its fourth year. Recently, we appointed our former Director of Care Services, Nuno Lopes to the role of Director of Research, Innovation and Community Engagement. This appointmentdemonstrates ourcommitmentto expanding ourcare seNices outside of the walls of our care homes, via our newly launched REACH programme. This is a new communityengagementstrategywhich provides educational programmes and guidance to support older people to live well, at home, for longer. This will enable us to adaptto the changing needs of the social care sector and ageing Jewish community. REACH will raise the profile of the organisation and support us to continue to fulfil our charitable purpose and enable the sharing of our knowledge. skills, and experience to the wider community. Nightingale House is undergoing a large-scale redevelopment and refurbishment to ensure the facilities and accommodation are upgraded 50 they are fit for purpose for the future. Once complete the home will house 110 residents in high quality accommodation. The first phase of the works commenced in the Wohl building in late 2023. We will bring the beautiful Nightingale House back to its full glory. This is a comprehensive programme of refurbishment, and the works are planned to continue through 2024125. We should acknowledge that the care sector continues to have challenges that affect our operations. There remains a huge difference in the true cost of care and the funding available to deliver care to meetthe ever-changing complex needs of residents. the cost of living crisis continues to affect the prices we pay for essentials such as utilities and food supplies and the recruitment market remains a challenge with thousands of vacancies in the care sector. In spite of these challenges. we continue to provide exceptional care to the older Jewish community and use our income and the generous donations from our incredibly supportive community to meet our charitable purpose. NIEhtingale H8inmersc>n Charity Reg. No. 207316 Trustees Report and AnnLial AccoLlnts lor Year Ended 30 September 2023
CHAIRMAN'S REPORT (CONTINUED) We end with good news. Nightingale Hammerson has received a record numberofawards, which demonstrate the excellence of our care. our Homes, and our people. We strive to be the best we can be in all areas of our work, and it 15 wonderful thatthis has been acknowledged by the nation's leaders in care. Our congratulations go to: Our Care Teams who have been recognised by the Nursing Times Awards 35 finalists in the Social Care Category for Outstanding Holistic Care Volunteers, Marilyr) pyser, Judy Wiseman and our coffee morning team were recognised for their compassion, dedication and hard work at the Annual JVN Awards who celebrate the wonderful volunteers in the whole community. Nuno Lopes was awarded the Chief Nurse forAdult Social Care GoldAward by Deborah Sturdy CBE, the Chief Nurse. This highlights the compassion and talent of individuals in the care sector and celebrates the contribution to the health and happiness of others. Mark Panto. ourvolunteer in both Homes won the Sara Berriocare Champion Award atthe National Care Awards 2023 forthe compassion and happiness he brrng5 to our residents. Nuno Lopes was also a runner up for the Care Leadership Award Hazel Joseph, Managerof Hammerson House, was a runnerupforthe Care LeaderAward atthe North Central London Valued Awards Phil White, our Nightingale House Gardner. Winner of the Care Award for Compassion at the Markel 3 Sector Care Awards. Our care teams were also finalists in the Excellence in Dementia and End-of-Life Care. Finally. the whole Nightingale Hammer50n Team has been awarded the Chief Nursing Officer for Adult Social Care Team Award for Toutstanding Services to Social Care., This award highlights the importance of the Nurse-led care delivered in our Homes. supported by an expert multidisciplinary team. Professor Deborah Sturdy CBE said of the Nightingale Hamrnerson Team. "Shining lights ore people likeyou. The phenomenol contributionyou make to the peopleyou look after is acknowledged in this award- you stond toll amongstyourpeers for achieving so much". We are delighted and humbled to see our wonderful teams recognised for their work to ensure residents have a better quality of life. We extend our sincere thanks to everyone involved in the delivery of care and supportto our residents, their families and loved ones. Jo Black and Paul Althasen Co-chair, Nightingale Hammerson Nigiitingale Hammerson Charity Reg. No. 207316 Trustees Report and Aniiual Accounts for Year Ended 30 Septeinbei. 2023
REPORTOFTHE DIRECTORSOFTHE CORPORATE TRUSTEE The directors of the corporate trustee of Nightingale Hammerson (herein referred to as 'directors' or 'trustees'l, who act as the Trustee Board ofthe Charity. presentthe statutory report and accounts for the year ended 30 September 2023. These accounts have been prepared in accordance with the accounting policies set out on pages 34-39 and comply with the charity's governing document, applicable laws and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021. Our Corporate Structure Nightingale Hammerson's corporate structure comprise5 two active entities, both ultimately controlled by the directors of Nightingale Hammerson and included in the con501idated accounts. These are: Nightingale Hammerson, a registered charity, providing residential and nursing home facilities at hvo London sites, Nightingale House, in Clapham, and Hammerson House Wohl Campus, in Hampstead Garden Suburb. and Chalkford Limited, a company registered in England and Wales, whose busine55 is property construction. The Charity also has one dormant entity namely, The Friends of Nightingale House. Our Charitable Purpose Nightingale Hammerson exists to be a leading provider of quality relationship-centred care for older Jewish people. We provide residential, dementia. nursing and palliative care services and treat all our residents with respect and dignity- Our aim is to provide holistic care and support in a safe and stimulating environment using dedicated and trained staff and volunteers. We do this through the operation of No residential and nursing care homes- Nightingale House. in Clapham, and Hammerson House. Wohl Campus, in Hampstead Garden Suburb. Nightingale House traces its origins back to 1840 in the East End of London. It moved to its current site in Clapham in the early 1900s and has continued to deliver excellent care. Nightingale House was purpose-built to serve residents with residential, dementia, nursing and palliative care needs, either on a permanent basis or respite. The directors agreed a refurbishment budget for Wohl, to modernise and implement some energy efficiency measures which began irs the summer of 2023. A decision was recently made to extend this refurbishment work to other areas of the home. This will be a large project likely to start in the 2024125 financial year. Nightingale House currently has 5 active households with the following maximum bed capacity: Households Dedlcated Servlce Maximum Bed Capacity 45 45 15 40 26 171 Wine Sherman Osha Wohl Ronson Total Residential Residential Dementia Residential Nursin Dementia Nursin I Palliative Need5 Nightingale Hammèrson Charity Reg. No. 207316 Trustees Report and AnnLiéI Accounts for Year Ended 30 September 2023
REPORT OFTHE DIRECTORS OFTHECORPORATETRUSTEE (CONTINUED) Hammerson House was established some 55 years ago, thanks to an exceptional gift from Mrs Sue Hammerson CBE in memoryofherlate husband Lewisw Hammerson. For manyyear5 Itwas primarily a residential home although offering some nursing bed5 and sheltered housing. It was closed for redevelopment in 2017 and re-opened in 2021 as Hammerson House, Wohl Campus. It now provide5 care to those with residential, dementia, nursing and palliative care needs. Hammerson House. Wohl Campus, has 6 households with thefollowing maximum bed capacity.. Households Dedicated Service Maxlmum Bed Capacity 18 20 18 20 20 20 116 Isaac Wolfson Edith Woltson Audre Pat Residential Residential Residential Dementia Residential Dementia l Nursin Nursin Dementia Nursin I Palliative Care Needs Dementia oder Ron50n Total Ourwision To provide our communitywith exceptional relationship-centered care. To widen our seNices to address the future needs of an ageing Jewish population by sharing our knowledge. skills and expertise. Our Mission To be the leading charitable organisation recogni5ed for providing outstandingcare to our residents and the wider community. to maximise quality of life through exceptional care, innovation, and continual improvement. Ourvalues Our values are Compassion, Respect, Excellence, Dignity, Integrity and Teamwork. Ourstatement of Public Benefrt In setting the aim5 of the charity, the directors have had regard to the guidance published by the Charity Commission in respect to the provision of public benefit by charities. Nightingale Hammerson is committed to providing the quality level of care to all older Jewish people in need, regardless of their personal financial status. A substantial proportion of residents are in receipt of local authgrity or other government funding and the Charity raises funds from its donors and benefactors i n order to meet the ever-growing shortfall between government funding and the costs of quality care provision. Our Trustees The directors of the corporate trustee act as the Trustee Board of the Charity and their names are as set out on Page 4. The Trustee Board meet5 formally at least five times a year. Between meetings, directors engage with the Charity, its volunteers and staff in many and varied ways, such as providing guidance on projects, raising funds. seNing formally on committees or supporting new initiatives. Directors are appointed via proposal to the Nominations and Governance Committee and seNe 3-yearlyterms up to a maximurn of io years (the first year of service is deemed an induction yearl. No director received any remuneration or expenses from the Charity duringthe year. Nightingale Hammerson chai.ity Reg. No. 207316 Truslees Report aiid AnnLial Ac¢oLints for Yea1" Ended 30 Septeinber 2023
REPORTOFTHE DIRECTORSOFTHECORPORATETRUSTEE (CONTINUED) Our Committees The Charities committee structure is set up to ensure it can adapt and adequately respond to the evolving challenges facing the charity and the adult social care sector. as a whole. The main committees ofthe Board are: Nominations Committee: Provides guidance on governance, lead on the recruitment of new directors lor trustees), reviews terms of office, and leads on directors, induction, appraisal and training. Finance Committee.. Oversees all financial matters including the budget Setting financial performance and financial planning. Resident Experience & Assurance Group: Oversees service and quality assurance as well as volunteer and events programmes. Audit and Risk Committee: Oversees the organisational risk assurance framework. It is also responsible for ensuringthat the Board is apprised of the principal risks and plans are put in place to mitigate those risks. Nightingale House Working Group.. Thi5 committee oversees the major refurbishment project for Nightingale House. Investment Committee.. Overseesthe investment portfolio and provides instruction to the investment managers in line with the charity's investment policy. Operations and Efficiencies Committee: Responsible for overseeing the performance of specific departments to ensure the resources are used to support and deliverthe strategic aims of the Charity, while ensuring sustainability and champiorging best practice. Fundraising& Marketing Committee: Overseesthe planning and implementation of fundraising plans, marketing materials and communications externally to boost voluntary donations and capital fundraising income. In addition to the above, there are other groups set up to provide additional support to the main committees. These are the Fee Subsidy Group, Major Donor Group, Relationship Centred Care Group, Education & Development Group and the Care Risk I Safeguarding Group. The Board of Trustees may also on occasion. set up a task and finish group to provide support to the executive team and oversee the delivery of specific tssks, over a specific period of time. Nightingale Haminerson Charity Reg. No. 207316 Trustees Report aiicl AnnLial Accounts for Year Ended 30 September 2023 10
REPORTOFTHE DIRECTORSOFTHE CORPORATETRUSTEE ICONTINUEDI Our Committees (continued) Directors, who served during the year. also served on the various committees of the Board as set out below. Everycommitteeand group is supported bylay leaderswhoare also membersofthecommittees and contribute a wealth of experience and expertise to their respective committees and l or groups. RES EXP & ASS AUD& RISK NH STRATEGY INVESTMENT OPS & EFF FUND- RAISING NOMS FINANCE CAROLYN DANIEL GILL JOANNE KEITH MELVIN PAUL ROSALIND RUSSELL STEVEN Our People This year, we had an average of 499 staff. across both homes. Recruitment and retention were particularly challenging thi5 year Eiven the continued opening of Hammerson House and a Shortage of care staff in thi5 country. Whi15t we are grateful that we can draw from our pool of ever-supportive volunteers, the senior leadership team developed a renewed approach to pay packages and increased the retention ber)efits. We continue to explore innovative ways of attracting and retaining talents including enhancing our learning and development programme. offering flexible shifts and seizing opportunities for overseas recruitment. Our Volunteers The Volunteer service continued to grow in 2023 with 145 active volunteer5, evenly split across Nightingale House and Hammerson House. The majority ofvolunteers supportthe Engagementteam. others are involved in administration tasks, Befriending. Synagogue, Fundraising, Service & Quality and the Intergenerational Programme. 4596 of our Volunteers have rnore than one role showing an organic nature of the Volunteer journey in Nightingale H3mmerson. The communities near both our care homes remain dedicated and commitmentto enhance the live5 of our residents. Nightingale Haimmerson Charity Reg. No. 207316 Trustees Report and Annual A¢¢ounts for Year Ended 30 September 2023
REPORT OFTHE DIRECTORS OFTHE CORPORATE TRUSTEE (CONTINUED) Remuneration of Our SenÈor Team Our Senior Leadership Team ISLTI form the key management personnel of the charity and are responsible for the charity's affairs on a day to day basis. Remuneration 15 benchmarked and set with reference to current market conditions so to ensure that the charity can recruit and retain high calibre staff. Annual pay reviews are approved by the Finance Committee. Employment Policy We strive to be an equal opportunity employer and apply objective criteria to assess meriL We aim to ensure that no job applicant or employee receives less favourable treatment on the grounds of age, race, colour, nationality, religion, ethnic or national origin, gender, marital status, sexual orientation or disability. Selection criteria and procedures are reviewed to ensure individuals are selected, promoted and treated on the basis of their relevant merits and abilities. All employees are given equal opportunity and, where appropriate. special training to enable them to progress. Volunteers are coordinated by the Volunteer Development Manager, with recruitment, management, training and supeNision policies in place. Our Achievements Intergeneratlonal Care Nightingale House was the first UK Care Home to open an onsite nursery for children aged 2-5 years. There are daily programmes for our nursery children and residents to come together and join in fun and active things to do. Nightingale Hammer50n and Apples & Honey Nightingale Education and Training have officially joined forces to bring intergenerational courses, enhancing the lives of both children and oldermemberswithin our community. Nightingale House Nightingale House ha5 again been awarded the rating of Outstanding by the Care Quality Commission ICQC), following their inspection at the end of 2022. Nightingale House continues to be the only CQC Outstanding care home 5eTvingthe older Jewish community in the UK. Hammerson House Despite the challenges in recruiting care staff, Hammerson House became fully occupied in December 2023. We provide residential. residential dementia, nursing dementia and palliative care at Hammerson House. We now offer all the levels of care any resident can get in a care home for older people. Education Forthe second year we have been endorsed by Skills for Care forthe educational programmes we deliver. This recognises the quality of the education but also highlights how serious we take education within our organisation. We have started to open our educational programmes to external professionals and will be assessing whether this can expand as a business model. Nightingale Haiiiimerson Charity Reg. No. 207316 Trustees Report and Anniial AccoLints fcpr Year Ended 30 Septeinber 2023 12
REPORTOFTHE DIRECTORS OFTHE CORPORATETRUSTEE (CONTINUED} Therapies We have reviewed our therapie5 provision to best support the health outcomes for our residents. Our physiotherapists, occupational therapists and movingtherapies assistants and handling advisor are now able to provide more one to one sessions for our residents, which also translates into a new form of income for the charity through our private therapies model. We have now welcomed four postgraduate Speech and Language Therapystudents. Awards Nightingale Hammerson are proud to have the winner of The Nursing Times Workforce Summit & Award5 Winnerfor Non-clinical Manager of the year. Roshni Shah. We have also recently been awarded the Chief NUIng Officer forAdult Social Care Team award for Outstanding SeNices to Social Care. Our Plans We have been providingexceptional care to the Jewish communityforover 180years. Nightingale House is the only Jewish Home for older people in the UK to be classified Outstanding by the CQC. We therefore want to build on our strengths and successes whilst improving on our weaknesses. We also want to seek opportunitie5 to intentionally remain the centre of excellent care. Our strategic prioritie5, as approved by the Board, are as follows: l.Those we supportwill be atthe heartof all we do by being the exemplar of Relationship Centered Care IRCCI which will enrich our resident's lives by supporting ourvolunteer5 and team membersto deliveran exceptional quality oflife forthose weserve by exceeding expectations in the quality and delivery of meals 2. We will support and embed a culture of innovative care practi¢¢, research and education across the oryanisation by investing in the environment in Nightingale House to ensure it meets and exceeds the changing needs of our residents and provides exceptional facilities for education, development and communityengagement. by embracing new technologies to enhance the lives of our residents and all those we are able to support. by ensuring we maintain our reputation for providing the 'Best of Care. by continual improvement systems and delivering best practice. 3. We will embed strongfinancial stewardship to protKt the aetS and future of the charlty for the benefit of the whole community. by telling the incredible Stories about the value of what we do to generate income through various sources by delivering a culture of financial accountabilityensuringwe are receiving bestvalue for money and operating efficiently by protecting and monitoring the assets of the charity, ensuring they are used to further our charitable objectives Nightingale Haminerson Charity Reg. No. 207316 Trustees Report and AiinLial Accounts for Year Ended 30 Septeimbei" 2023 13
REPORTOFTHE DIRECTORS OFTHE CORPORATETRUSTEE ICONTINUEDI Our Plans (continued) 4. We will be a groat organisation to work for by creating a people strategy that will trust, SUPPOrt and develop our people to achieve their goals and ambitions by looking after our people by supporting their wellbein& personal and professional development. define their career paths and ensure fair pay and benefits by creating an inclusive, value5 led place to work where everyone is welcomed, celebrated and supported 5. We will demonstrate our commitment to providing exceptional care by extending our skills and expertise to the wlder communlty be a recognized centre of excellence for education and development in social care by working with innovative external partners by partnering with experts in research and innovation by maximising our resources to scale up our offer to meet identified communlty needs. 6. We will deliver and maintaln a hlgh quallty, safe and compliant environment for the benefit and wellbeing of all. by introducing a mindset of continuous improvement be measuring our output and evidencing our compliance with regulations and safety requirements. by ensuring all environments that residents and team members live and operate within provide compliant. comfortable and safe place to receive and deliver the best service possible by recognizing our responsibilityto reduce our carbon footprint and protect the environment for future generations by making wise, cost effective decisions that embed sustainable benefits for our residents and team members. Nightingale Hiinmerson Charity Reg. No. 207316 Trustees Report arid Annual Accounts foi Year Ended 30 September 2023 14
REPORT OFTHE DIRECTORS OF THE CORPORATE TRUSTEE (CONTINUED) Financlal Review This review focuses on the year ended 30 September2023. It continued to be a time of transition for the charity with the second home becomir)g more occupied throughout the year alongside a change in the Senior Leadership Team. At the end of the year, our total income from our charitable activities was £19.Im, an increase of £4.3rn from the previous year. Thi5 is due to the continuing opening of Hammerson House, Wohl Campus throughout the year, which compensated forthe decrease in resident numbers at Nightingale House. At the year end, we had 100 residents at Nightingale House and 103 at Hammerson House, Wohl Campus. a decrease of 14 and increase of 36 respectively. As expected, the overall increase in resident numbers resulted in our operational costs, including staffing costs, catering and accommodation costs increasing. Staff costs account for60¥0 of ourtotal operational expenditure12022: 600hl. with our staff continuing to be at the centre of all we do and achieve. Our average staff number increased from 402 last year to 499. The majority of the increase was to support direct care provision and frontline Seices, for which recruitment continues to take place. Our vision continue5 to be extending exceptional care services to Harnmerson House, Wohl Campus, and delivering personalised Relationship Centred Care across both homes. To maximise resources, we adopted a cross- site working policy for some administrative staff and the SLT. Our net expenditure before transfers and gains atthe end of the year was £1.9m12022: £2.17ml. This was to be expected given it was another transitional year with the charity running two care homes. We received £20k12022- £0.4ml in government grants to mitigate the increased cost of infection control across both homes. Fundraising generated £3.9m in donations and legacies12022: £3.Iml at a cost of £0.6m12022.. £0.5ml, meansthatforevery pound spent we raised £6.3612022.' £6.121. 2023 2022 £m 19.1 (25.01 Income from care provision Cost of care provision including depreciation Government related infection control and furlough grants Other operating income Operating deficit 14.8 121.11 (5.81 15.81 Net revenue fvndraising income (excluding legacies) Legacie5 Net income from investments Profit on dis osal of fixed assets Deficit before investment gains and capitalfundrai5in (2.0) {2.41 Capital donations forHammerson House, Wohl Campu5 Realised gains from investments Unrealised gainsl Ilossesl from investments Actuarial gains from pension scheme (1.61 Nightingale Haimmerson chai.ity Reg. No. 207316 Trustees Report and AniiLial Accounts for Year Ended 30 September 2023 15
REPORT OF THE DIRECTORS OFTHE CORPORATETRUSTEE (CONTINUED) Financial Review (Continued) Resident numbers averaged 195 for 2022123 ComPad to 169 in 2021122. This resulted in an increase in both fee income and operational expenditure. The deficit before investment gains and capital fundraising improved to £1.9m compared to £2.4m in 2022. Legacy income increased by £1.2m due to a large legacy recognised towards the end of 2022123. The prior year included the disposal of Belmont Lodge which generated a profit on disposal of £0.8m. The performance of the investment portfolios improved resulting in an unrealised gain of £0.8m compared to a unrealised loss in 2021122 of £1.6m. Where ourincome came Irom 2022123 2021122 3%1%1% 2%2 2% Income from care services Fundr3i51ng Income Income from CaTe 5eryices Fundrai5in8 income Investment in¢ome Government grant Investment income Restrtted donations Restricted donations Other Sources Other sources Where the money was spent 2022123 2021122 2%1% 2%1% Direct staff costs Dirert staff costs Catering, Medical & Welfare Adrninistratwe & Support Caterin& Medical & Welfar Depreclation 11% Depreciatio * Administrative & Support iix Accomrnodotion costs 12% Accommodation cost5 Fundraising ¢05t5 Fundraising cost5 Investtnent fees Investment fees Nightingale Hammerson Charity Reg, No_ 207316 Trustees Report ?nd Annual AccoLinrs for Year Endecj 30 Septeinbei" 2023 16
REPORTOFTHE DIRECTORS OFTHE CORPORATETRUSTEE ICONTINUEDI Investment Policy and Performance The performance of the charities investment portfolios improved throughout the 2022123 financial year. In particular investments held with Veritas generated £887k199%1 of the total £894k unrealised gain on listed investments. There was an unreali5ed loss of £46k on the investment property- Realised and unreali5ed gains on investments totalled a gain of £l.Om12022: loss of £1.4ml. Income from investments and short term deposits increased to £0.8m12022: £0.4ml, as the charity took advantage of improved interest rates on cash deposits. A5 part of maintaining good financial stewardship of the charity's resources, the directors appoint two fund managers to manage the investment portfolio. The Board sets the investment mandate which is targeted at achieving total or real returns on a rolling 5 year period with an emphasis on capital giowth. The Board's risk appetite is set as medium risk, in line with the Asset Risk Consultants (ARC} Group indices. The fund managers have full discretion to investthe charity's funds accordingto the investment mandate and the set target of attaining lor outperforming) UK CPI +3%, net of all fees. The Investment Committee receives periodic updates from both fund managers and provides an update on performance at every Trustee Board meetin& stock markets continued the recovery that began in autumn 2022 but returns from bonds have been weaker. as the backdrop for interest rates did not change in a more positive direction. The disparity in returns between Verita5 and Schroders since the er)d of 2022, in part, reflects the extent to which their portfolios are respectively exposed to the better performing areas of the global equity markets, in particular some of the more highly rated technology companies. which have led the markets higher in 2023 and where Veritas have a heavier weighting. Schroder5, by contrast, are maintaining a more cautious stance and are currently favouring'qualitylvalue" stocks (such as financials). dividend payers and smaller companies. As at 30 September 2023, the investment in Vanguard S&P 500 UCITS ETF was the single largest holding in the portfolio, representing 5.8% of the total portfolio12022.. 01. The total investment portfolio as at 30 September 2023 was £23.3m 12022= £27.Oml, excluding the managed investment property valued at £0.3m12022.' £0.3ml. The a55et allocation is illustrated below- Asset Allocation E4uities167%1 Fixed Intere5t118%1 Alternatives iio%I Cèsh13%1 Multi-assets Funds12%1 Nightingale Hammerson Charity Reg. No. 207316 Trustees Report and Anniial Accounts for Year Ended 30 September 2023 17
REPORT OF THE DIRECTORS OF THE CORPORATE TRUSTEE ICONTINVED) Free Reservos An important role for our Board of Trustees is to manage the long-term sustainability of the charity. We have therefore set our reserves policy to: l. Partlyfund the funding gap between fee income and cost of care 2. Ensure we are resilient and have the financial capability to momentarily respond to unloreseen financial difficulties 3. Allow investment in the refurbishment of Nightingale House, technological advancement, energy efficiency schemes and estates and facilities management 4. Enable future expansion of our services to the elderly members of the community. We have calculated our free reseNes as that part of the charity's unrestricted income funds that is freely available after taking account ot the tangible fixed assets, restritted, endowment and designated funds earmarked for specific projects. We have considered that given the nature ofthe charity's work, political uncertainty around social care funding, economic uncertaintie5, impact on disposable incorne, stock market volatilities and the growing demand for elderly care. the level of free reseNes should be equivalent to at least 6 to 12 months, expenditure. We are also of the opinion that the free reserves Should afford the charity the flexibility to cover temporary shortfalls in incoming resources either due to the timing difference in cash flow or funding shortfall. As at 30" September 2023 the charity held free reseNes of £21.8m, Based on the 2022123 results, the free reserves cover 10.5 months of operational expenditure. Free reseNes are therefore in line with requirements. Going Concern The charity continues to benefit from support from the community, high performing investment portfolios and currently has a waiting list of potential residents for Hammerson House. The 3 and 10- year financial f0CaSts shows the charity's ability to meet its financial commitment for the foreseeable future. As such, the Board of Trustees is comfortable that the accounts have been prepared on a going concern basis. Nightingale Hainmerson Cliai'ity Reg. No. 2073L6 Trustees Report and Annual Accounts for Year Ep.ded 30 September 2023 18
REPORT OFTHE DIRECTORS OFTHE CORPORATE TRUSTEE (CONTINUED) Fundraising for our Charitable Objectives With the ever more complex care needs and the impact of government initiative5 such as the National Living Wage and the pension reform, the need to fundraise to support core funding has never been greater. Local authorities and the NHS, who fund a substantial proportion of our residents, are operating under ever-tightening budgetary constraints. In order to provide the same level of care to all residents, we have to raise in the region 01 £3.Om per annum through fundraising activities and legacie5. This amount will only increase as the differential grows between costs of care on the one hand and government funding on the other. Ourdonors and benefactors have continued to give generou51y, for which we are very grateful. We raised £l.Om (net fundraising income) in the year to support day to day operations with an additional £2.2m received from legacies. The publicity within the community surrounding the Hammerson House, Wohl Campus, development created a natural opportunity for us to raise awareness of what makes Nightingale Hammerson special. Our heartfelt thanks go to all our donors. Our Commitment to the Fundraising Code of Prartice Nightingale Hammerson is registered with the Fundraising Regulator and adheres to the Code of Fundraising Practice. We aim to achieve best practice in the way we communicate with our donors and other supporters. Our supporters are atthe heart of our abilityto fulfil our mission. Following continued scrutiny of fundraising practices across the sector, we have reviewed our systems to ensure that formal consent is gained from all those whom we wish to contact for fundraising purposes. By reviewing our processe5, we aim to achieve the standards set out in the Fundraising Code of Practice and ensure compliance with the General Data Protection Regulation. We do not employ third party professional fundraisers or commercial organi5ation5 to fundraise on our behalf. We recently undertook a crowd funding fundraising event where the service of a third party charity was employed to provide the technology and campaign expertise needed to make the event a success. We remained the Data Controller and ensured appropriate due diligence were undertaken prior to engaging that fimi. Also in compliance with the Fundraising Code of Practice, we do not tske part in any intrusive or high- pressure fundraising activities such as street fundraising, door-to-door or cold-calling. We listen to feedbock and investigate any complaints regarding our fundraising activities. During the year, we received no complaints about our fundraising activities. Nightingale Haminerson Charity Reg. No. 207316 Trustees Report ancl Annual Accounts for Year Endecj 30 September 2023 19
REPORT OFTHE DIRECTORS OF THE CORPORATE TRUSTEE (CONTINUED) Principal Risk$ and Uncertainty OurApproach to Risk Management Risk is inherent in our operations and the decisions made in pursuit of our charitable goals. The Board of Trustees is responsible for the nature and extent of the principal risks that we are willing to take. It reviews the principal risks to the organisation and ensures that risks are effectively managed through our governance structure. The Board delegates the detailed review of operational risks to the Audit and Risk Committee who review both financial and non-financial risk registers. Our principal risk portfolio will continue to be reviewed by the Board as relating to our strategic priorities. The sub-committees of the Board, namely the Care, Finance and Investment Committees, have continued to focus on more in- depth management of our day-to-day responses to risks. Our principal risks with mitigating actions are: Fire With a large number of frail and often immobile residents, managing fire risk is a key priority for us. Detailed fire risk assessments are undertaken at all levels acrossthe organisation. This includes monthly fire drills in households. fire safety awareness for all staff, periodic fire risk assessments and ensuringthe designated fire marshals have the necessary training. During the year, three fire risk assessments were completed at both homes, two at Hammerson House, Wohl Campus, Ipre-OCCUPational and occupational) and one at Nightingale House and all issues raised have been mitigated. Other improvements have been implemented, with some short term 501utions found at Nightingale whilst the refurbishment plan is finalised. Furthermore, each resident has a Personal Emergency Evacuation Plan which takes into account their particular needs in relation to fire evacuation. Fire alarm5 are tested weekly and periodic fire drills are done. Reports on fire drills, fire incidents and fire risk assessments are reported attheAudit and Risk Commirtee. Security Risks The crisis in Israel has increased the risk of anti semitism and possible terror threat in both homes. We are in regular contact with Community Security Trust ICSTI and the Metropolitan Police and are constantly monitoring the 51tuation internally and externally. Both homes employ security guards with appropriate training. staff have had Project Griffin training and, Crime Awareness & Counter Terrorism training. delivered by the Metropolitan police. We maintain regular communication with our residents and relatives. Fundraising The crisis in Israel has also increased the risk of the charity not meeting its annual fundraisingtarget. We are anticipating a reduction of around 3086 in fundraising income. This has been factored into the forecasts with a major review of the charities expenditure taking place to ensure costs are kept low during this time of uncertainty. The fundraising committee meet regularly with a new strategy being implemented. Nightingale Hammersoii Charity Reg. No. 207316 Trustees Report an(1 Annlal Accounts for Year Ended 30 September 2023 20
REPORT OFTHE DIRECTORSOFTHE CORPORATE TRUSTEE (CONTINUED) Principal Risks and Uncertainty (continued) Recruitment and Retention Recruitment and retention, although it is a known challenge within the care sector, became a bigger risk to us with the opening of Hammerson House, Wohl Campus. This is directly linked to our ability to take on new residents as planned, resulting in loss of income opportunities. We a150 Saw an increase in the use of agency staff and overtime payments. A recruitment and admission plan was put IM place with progress monitored by SLT and regular updates provided to the Trustees. A new pay and reward structure was also implemented which has enhanced the starting wage of our frontline staff and also offer new benefits to enhance retention and staff referral. A new People Strategy was also developed and presented to the Board. This will build on the new pay and reward structure as well as promote wellbeing at work to reduce absenteeism, diversity and inclusion and developing career pathways. Financial Just like households across the country. care homes. like ours, are being hit by soaring energy bills and food prices. The impact of this and the increase to staff wages and insurance premiums has had a significant impact on our operational expenditure. Furthermore the Adult Social Care Charging Reform published on 3 December 2021 which has been delayed to take effect from October 2025, will add some financial challenge5, in addition to the budgetary squeeze on local government funding. A detailed financial risk register is maintained and overseen by the Finance Committee. who continue to review ways to improve our financial resilience in order to ensure sustainability. We continue to assess the impact of these risks on the bottom-line through the 3 and 10 year financial model. Health and Safety Our approach to maintaininga good Health and Safety prartice at work is very hands-on. We established three core Health and Safety groups to focus on operations, care and property maintenance. These core groups hold quarterly meetings and provide updatestothe Principal Health and Safety Committee which also meets quarterly. Due to the Covid-19 pandemic, the focus of the core groups and committee was more on mitigating the spread of the virus and ensuring the recommended hygiene practices were adopted across the organisation. Regular risk assessments are carried out and remedial action taken where needed. Code-operated doors protect all residents frorn areas which may be hazardous. such as open staircases. Areas of high risk, such as laundry and kitchen, are only acce55ible by authorised staff. All staff receive health and safety training specific to their areas of responsibility. Nightingale Haimmerson Charity Reg. No. 207316 Trustees Report and Annual Accounts for Year Ended 30 September 2023 21
REPORTOFTHE DIRECTORS OFTHE CORPORATETRUSTEE (CONTINUED) Streamlined Energy and Carbon Reporting We have commissioned a reportfor 2023 which is currently being produced by Carbon Footprint Ltd. The below therefore relates to the prior year. The 2023 report will be uploaded to our website once it is completed. We remain committed to mea5uringand reducingourenergyconsumption and thecarbon impactofour operatlOn5 on the physical environment. Nighti ngale Hammer50n has appointed Carbon Footprint Ltd. a leading carbon and energy management company. to independently asses5 its Greenhouse Gas IGHGI emissions in accordance with the UK Government's 'Environmental Reporting Guidelines.. Including Streamlined Energy and Carbon Reporting Guidance,. The GHG emissions have been assessed following the ISO 14064-1.2018 standard and has used the 2022 emission conversion factors published by Department for Environment, Food and Rural Affairs (Defral and the Department for Business, Energy & Industrial Strategy IBEISI. The assessment follows the location-ba5ed approach for assessingscope 2 emissions from electricity usage. The operational control approach has been used. As part of the required disc105ure, the scope of emission were categorised as= Scope l.. comprises direct emissions associated with the combustion of fuel (natural gasl as well as additional emissions sources such as refrigerants and owned transport (the minivan). Scope 2.. comprises primarily indirect energy consumption including consumption of purchased electricity. Scope 3.. relates to other indirect emissions occurring as a consequence of activities not owned or controlled by the charity e.g. seTvice-related travel. The table below summarises the GHG emissions for reportingyear: 1st October 2021 to 30th September 2022. We have been assessing our carbon emissions since 1st October 2019 and have provided the baseline year and last year's assessment results for comparison. Scope Activity 2019120 tCO2e 2020121 tCO2e 2021122 tcoie 580.46 1,029.75 698.37 5.69 Site gas Owned Vans Refrigerants Scope I Sub Total Scope2 Electricity generation Scope 2 Sub Total Electricity transmission & distribution Scope 3 Sub Total Total tonnes of Coze, 1.499.89 Tonne$ of CO2e per employee 4.33 Tonnes of Cole per£M turnover 136.35 Total Energy Consumptlon IkWh}' 7,105,661 Total Energy Consumptton it)cludes UK Elertricity, UK Site Gas, Company Owned Vehlcles. C02e= Carbon 02 Emission Scopel 0.17 8.47 17.23 0.00 0.00 597.86 1,035.44 426.69 706.84 402.09 471.37 402.09 426.69 471.37 Scope 3 34.58 37.76 43.12 34.58 37.76 43.12 1,034.53 3.11 1?21.33 3.12 66.81 100.34 4,882296 6,263,378 Emissions from electricity transmission & distribt4tion have not been included as this is outside the boundary required for SECR Regulations. Nightingale HainiMerÈor) Charity Reg No. 207316 Trdstees Report and Annual AccoLints for Year Ended 30 Septeinber 2023 22
REPORTOF THE DIRECTORS OFTHE CORPORATE TRUSTEE ICONTINVED) Streamlined Energy and Carbon Reporting (continued) The data shows our energy consumption decreased from 1,500 tonnes to 1.221 tonnes C02e atthe end of September 2022. Nightingale Hammerson's total carbon footprlnt increased by 18.1% compared the baseline year. This is due to the increase from all emission sources except refrigerants, which is linked to this being the first full year that Hammerson House was operational. However. Nightingale Hammerson has reduced its total emission5 from the previous year which is due to a 32% reduction in natural gas emissions. Natural gas emissions have declined due to gas consumption at Nightingale House falling from 5.071 million kwh to 2.397 million kWh153% reduction). This is linked to the one of the households at Nightingale House being closed for refurbishment and a longer period of warmer weather. 8re•kdown ol c•rbon footprlnt 0.7% $7.2X The chart shows th3t natural gas consumption represents 57% of the total emissions, whilst electricity consumption represent5 a further 42% of the emissions. Therefore, site energy consumption contributes to the bulk of the total footprint at 99.3%. We have therefore developed our energy efficiency and 5UStainability policy to focus on.. Measuring our carbon footprint.. We will continue to measure our carbon footprint and report this as part of the charity's annual reports, annual review and on our website. Measuring our emissions will enable us to analyse our consumption levels and Set SMART targets to reduce levels year on year. Goinggreen.. We will seek ways of making our homes and offices more environmentally friendly such as ch005ing an energy provider that uses renewable energy or use low carbon alternatives where Safe. As part of our property refurbishment programme, we will replace our fluorescents with LED lighting, install lighting controls and sensors and promote switching off lights when not needed. We will also encourage staff to switch off computers and any other appliances, improve our Heating, Ventilation and Air-conditioning IHVACI systems and look to re-schedule timing of some activities, where practicable. to conserve energy. Reduce, reuse, recycle.. We will recycle what we can, reduce what we use and reuse or upcycle items. We promote recycling by ensuringthere are recycling bins around the homes and offices. We will also seek to move away from single use plastics as best as possible. Nightingale Hamimerson Charity Reg. No. 207316 Trustee5 Report and AnnLial Accounts for Year Ended 30 Septeimber 2023 23
REPORT OFTHE DIRECTORSOFTHE CORPORATETRUSTEE (CONTINUED) Ourstakeholders: We will maximise our residents, access to the natural environrnent for the benefit of health and wellbeing. We will seek donors and partners with energy efficiency focu5 to support us on our journey to net zero carbon. Where net zero carbon emission cannot be achieved, we will invest in projects that allow the charity to offset its net emissions. We will ask our suppliers and contractors about how they are demonstrating their commitment to energy efficiency and Sustainability as part of our procurement processe5. Reduce yourdigitol f*tPrIn We will er)deavour to reduce our digital footprint too by assessing how environmentally friendly our website and digital products are. promoting a digital culture above print, using recycled papers for our printingand embracing other digital energy efficiency initiatives. We will ernbrace new technologies and enhance existing technologies wherever possible. Nighiingale Haminerson Charity Reg. No. 207316 Trustees Report and Annual Accounts for Year Ended 30 September 2023 24
REPORTOFTHE DIRECTORS OFTHE CORPORATETRUSTEE {CONTINUEDI STATEMENTOF DIRECTORS, RESPONSIBILITIES The directors are responsible for preparing the report of the directors of the corporate trustee and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the directors to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity. of the income and expenditure of the charity forthat period. In preparing these accounts. the directors are required to: select suitable accounting policies and then apply them consistently. observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial ststements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021. make judgements and estimates that are reasonable and prudent- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disc105ed and explained in the accounts. and prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The directors are responsible for keeping proper accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011. the Charity (Accounts and Reports) Regulations 2008 and the provisions of the charity's governing document. Theyare also responsible forsafegLtardingthe assets of the charity and hence fortaking reasonable steps for the prevention and detection of fraud and other irregularities. Director Dateofapproval: lè VL iQ LLI Nighiingale Hammerson chai.ity Reg. No. 207316 Trustees Report ancl Annual Ac¢DLints for Year Ended 30 Septeimber 2023 25
INDEPENDENT AUDITOR'S REPORT Independent auditor's report to the d1CtorS of the corporate trustee of Nightingale Hammerson Opinion We have audited the accounts of Nightingale Hammerson (the 'parent charity'l and its subsidiaries (the 'group'l for the year ended 30 September 2023 which comprise the group and parent charity statement of financial activities, the group and charity balance sheets, the consolidated statement of cash flows, and the notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Finartcial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and RepLsblic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion, the accounts.. give a true and fair view of the state of the group's and of the parent charity's affairs as at 30 September 2023 and of their income and expenditure for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the accounts section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the accounts. we have concluded thatthe directors of the corporate trustee's use of thegoing concern basis of accounting in the preparation of the accounts 15 appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events orconditions that, individually or collectively, may cast significantdoubt on the group and parent charity's ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue. Our responsibilities and the responsibilities of the directorsof the corporatetrusteewith respectto going concern are described in the relevant section5 of this report. Other inforniation The directors of the corporate trustee are responsible for the other information. The other information cornprises the information included in the annual report and consolidated accounts, other than the accounts and our auditor's report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon. Nightiiigale Hammerson Charity Reg. No. 207316 Trustees Report aiid Annual Accounts for Year Ended 30 September 2023 26
INDEPENDENT AUDITOR'S REPORT (CONTINUED) In connection with our audit of the accounts, our responsibility is to read the other information and, in doing 50, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material mi5Statements, we are required to determine whether the is a material misstatement in the accounts or a material misststement of the other information. 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. Matters on which we are required to report by exceptlon We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion: the information given in the report of the directors ofthe corporate trustee is inconsistent in any material respect with the accounts. or sufficient accounting records have not been kept by the parent charity. or the parent charity accounts 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. Responslbllltie$ of dlrectors of the corporate trustee As explained more hjlly in the director5, responsibilities statement. the directors of the corporate trustee are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view. and for such internal control as the dirertors of the corporate trustee determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. In preparingthe accounts.the directors of the corporatetrustee are responsible fora55essingthe group's and the parent charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concem and using the going concern basis of accounting unless the directors of the corporate trustee either inter)d to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the accounts Our objectives are to obtain reasonable assurance about whetherthe accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that include5 our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI 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 decision5 of users taken on the basis of these accounts. Irregularities, including fraud. are instances of non-compliance with laws and regulation5. We design procedure5 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- Nightingale Hammerson Charity Reg. No. 207316 Trustees Report and AnnLial Accounts for Yeai Ended 30 September 2023 27
INDEPENDENT AUDITOR'S REPORT (CONTINUED} Auditor's re$pon$ibllities forthe audit of the accounts (continued) Our approach to identifyingand asses5ingthe risks of material misststements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilitie5 and 5killsto identify or recogni5e non-compliance with applicable laws and regulations. and we obtained an understanding of the legal and regulatory frameworks that are applicable to the group and parent charity and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charitie5 preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021 and the Charities Act 20111. We assessed the susceptibility of the group and parent charity's financial statements to material misstatement, including obtaining and understanding of how fraud might occur, by.. making enquiries of management as to their knowledge of actual, suspected and alleged fraud- and consideringthe 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: performed analytical procedures to identify any unusual or unexpected relationships. reviewed the new bad debt provision made in the year to ensure all transactions provided for were reasonable to provide for. carried out substantive testing of expenditure including the authorization thereof. tested journal entries to identify unusual transactions. and assessed whether judgements and assumptions made in determining the accounting estimate forthe property valuations were indicative of potential bias. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to.. review of the minutes of meetings of those charged with governance. and enquiring of management as to actual and potential litigation and claims. There are inherent limitations in ouraudit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it IS that we would become aware of non- compliance. Auditing standards also limitthe audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors of the corporate trustee and other management and the inspection of regulatory and legal COrspondenCe, if any. Nightingale Haillinersoii Charity Reg. No. 207316 Trustees Report and Annual AccoLints for Year Ended 30 Septetnoer 2023 28
INDEPENDENT AUDITOR'S REPORT ICONTINUEDI Auditows responsibllltles for the audit of the accounts (continued) Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilitie5. This description forms part of our auditor's report. Use of our report This report 15 made solely to the directors of the corporate trustee, as a body. in accordance with section 144 of the CharitiesAct 2011 and with regL*lations made under section 154 of thatAct. Our auditwork has been undertaken so that we might state to the director5 of the corporate trustee those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent perrnitted by law, we do not accept or assume responsibility to anyone other than the charity and the directors of the corporate trustee as a body, for our audit work, for this report, or for the opinions we have formed. IoLL6thU- (ff Buzzacott LLP 25 April 2024 Statutory Audltor 130 Wood Street London EC2V 6DL Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 NIEhtingale Hainimerson Charity Reg. No. 207316 Trustees Report and Annual Ac¢ounts for Year Ended 30 Septembei 2023 29
CONSOLIDATED STATEMENT OF FINANCIALACTIVITI£S For the year ended 30 Septernber 2023 Unrestricted Fund5 2023 Totsl Funds £'ooo 2022 Total Funds £'ooo General De$lgn•ted Restrlrted Fund Fund Fund £'ooo £'ooo £'ooo Note Income from: Donations and legacies Revenue PUTP05es Capital purposes Investmertts and shortterm deposits Charitable activities Provision ol residential Ind nursing care Government's infection control grant Surplus on dlsposal of tsngible fixed asset5 Other sources Total Income Expenditure on: Raising funds Generating donations and legacies Investment management costs Charltable activities Provislon of residential and nursing care Taxation Totalexpendlture 3,643 189 21 65 3,832 21 793 2,913 196 381 728 19,055 19,055 14,771 20 396 20 113 23,539 113 106 295 23,834 19,609 606 147 606 147 508 170 22,605 1,802 570 24,977 21.055 46 570 25,730 21.7T9 23,358 1,802 Net incomellexpendlturel for the year before transfers and gain$llloss¢sl on inv•stments Transfers between funds Gains/llossesl on investments Realised gains on disposal of investments Ullrealised gainsl Ilossesl on investments Net lexpenditurel income tor the year 181 11,8021 12751 11,8961 12.1701 19 18761 1,138 12621 16 196 196 272 16 848 11,6331 15371 1852} 13.5311 349 16641 Other recognlsed gains and losses Actuarial gains on pension scheme Net movement in funds 288 502 15371 15641 13,0291 637 16641 Funds brought forward at l October 2022 23.837 53.376 12,952 90.165 93,194 Fund5 carried forward 30 S•pt•mb•r 2023 21 24,474 52,712 12,415 89,601 90,165 The consolidated statement of financial activities includes the results of Nightingale Hammerson and Chalkford Limited. All of the figures included the above consolidated statement of financial activities derive from continuing activities of the charity and its subsidiarie5. Nigniingale Hainmerson Charity Reg. No. 207316 Trustees Report and Annual Accounts for Year Ended 30 September 2023 30
CHARITY STATEMENT OF FINANCIAL ACTIVITIES Forthe yearended 30 September 2023 Unrestricted Funds 2023 Total Funds £'ooo 2022 Total Funds £'ooo Gtneral Designated Restrl£t•d Fund Fund Fund £'ooo £'ooo £'ooo Note Income from: Donations and legacies Revenue purposes Capital purposes Investrnents and shortterm deposits Charitable activities Provision of residential and nursing care Government's infection control grant Surplus on disposal of t3ngible fixed assets Other sources Total Income Expenditure on: Raising fund5 Generating donations and legacies Investment management Costs Charitable activities Provision of residential and nursing care Total ¢xpènditure 3,700 189 21 3.889 21 793 2,862 196 381 728 19,055 19,055 20 14,771 396 20 113 23,596 113 23,891 99 19,551 295 606 147 606 147 170 22,605 23,358 1,802 1.802 570 570 24,977 25,730 21,055 Net incom•llexpenditurel forthe year bef•re tran5fer$ and ealnslllossesl on investments Transfers between funds Gainslllossesl on investments Realised gains on disposal of investments Unrealised gains Jllossesl on Investments Met {exp*ndl¢ure) Income forthe year 238 11,8021 12751 {1,8391 12,1821 19 19331 1,195 12621 16 16 196 196 272 11,6331 17951 13,5431 349 16071 15371 other recogThised gains and losse5 Actuarial gains on pension scheme Met movement in funds 288 502 15071 13,0411 637 1607} 15371 Funds broughtforward at i Ortober 2022 23,800 55,601 12,963 92,364 95,405 Funds carri•d forw•rd 30 September 2023 21 24.437 12,426 91,857 92,364 All the figures included in the above statement of financial activities derive from continuing activities of the charity. lightingale Hammerson Charity Reg. No. 207316 Trustees Report and Annual Accoiints for Year Ended 30 September 2023 31
BALANCE SHEET As at 30 September 2023 2023 Group £'ooo 2022 Group £'ooo Charity 'ooo Charity £'ooo Note Fixed assets Tangible assets Investments 14 16 48,222 23,SY3 71,795 50,517 23,574 74,091 49,426 27.271 76,697 51,664 27,272 78,936 Current as5•t$ Debtors Short term deposlts Cash at bank and in hand 17 5,4S7 10,151 3.309 18.917 S,842 io,Isi 3.314 8,014 3.202 14,530 3.879 8,014 3,185 15,078 19.110 CT•ditors'. amountfalling due within one year 18 {3.8171 14,0S01 13,4801 14,0681 Net current assets 15,100 15.060 ii,oso ii,oio Total ass•ts less Current liabilitie$ 86,895 89,151 87,747 89.946 Pension scheme asset Total net assets 23 2,706 89,601 2,706 91,857 2,418 90,165 2,418 92,364 Funds and re5erv•s Charitable fund5 Restricted funds UnrestrTrcted funds Designated lunds Hammerson House building fund Nightingale House buildingfund Maintenance fund Tangible fixed assets fund 19 12.415 12.426 12,951 12,963 20 20 20 20 8,500 3,500 40.712 52,712 8,500 3.500 42.994 54.994 8,51)0 3,500 41,376 53,376 8,500 3,500 43,601 55,601 General fund Pension reserve 21,768 2,706 89,601 21,731 2,706 91,857 21,419 2,418 90,165 21,382 2,418 92,364 23 21 Approved by the directors ofthe corporate tntrstee And signed on their behalf by- Director of corporate trustee Approved on: 16 1014 Nightingale Haimmerson Charity Reg. No. 207316 Tru3tees Report and Annual Accounts for Year Ended 30 Septembei" 2023 32
CONSOLIDATED STATEMENTS OF CASH FLOW Fortheyearended 30 September 2023 Z023 2022 £'ooo £'ooo Cash flows from optratlng *ctlvltle$ Net Cash (used inl operating activities 12,1601 11.1831 Cash flows from inv•sting artivities Investment income Income frofn capital fundraising Purchase of tangible fixed assets Proceeds from disposal of tangible fixed assets Withdrawals Irom investment portfolio Cash placed on deposit N•t cash provlded by (used Inl inv•sting artivities 245 23 108 11,087) 1,561 15501 1,500 5,000 12,0001 2367 13,5001 19661 Change in cash and Cash equivalents in the year Cash and cash equivalents at l October 1022 Cash and cash equivalents at 30 September 2023 107 12,1491 5,351 3,202 3302 3.309 Notes to the consolidated statementof cash flowsfor the yearto 30 Sept 2023 A Rèconciliation of net movement in funds to net cash (used inl operating activitie5 2023 2022 £'ooo {S641 £'ooo 13,0291 Net mov•ments in lunds las perthe statement of financial activities) Adjustments for.. Depreciation charge Loss Isurplusl on disposal of tangible fixed assets (Gains) losses on investments Investment income Ilncreasel in value of pension asset Income from capital fundraising Increase in debtor5 Increase in creditors Investment manager fees deducted from portfolios N•t¢•sh used In operatlnz actlvltle$ 2.342 58 11.0441 17931 12881 1211 12.2301 229 2,526 18461 1,361 13811 15021 11961 17911 504 151 171 12,1601 11,1831 B Analysis of cash and cash equivalents 2023 2022 £iooo 3,309 3,309 10,151 645 E'ooo 3,202 3,202 8,014 911 Cash at bank and in hand Total Cash and cash equivalonts Short term deposits Cash held wrth investment managers T¢)tsl 14,105 12.127 No separate reconciliation of net debt has been prepared a5 there is no difference between the net cash Idebtl of the group and the above cash and cash equivalents. Nightingale Hainrnerson Chai"Ity Reg. No. 20 1316 Trijstees Report and Annual A¢counts for Year Ended 30 September 2023 33
NOTES TO THE FINANCIAL STATEMENTS I. PRINCIPALACCOUNTING POLICIES The principal accounting policies adopted,judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below. Basis of preparation These accounts have been prepared for the year to 30 September 2023 with comparative infonnation given in respect to the year to 30 September 2022. The 3ccounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policie5 below or the notes to these accounts. The accounts have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice 3pplicable to ch3rities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 1021, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. The charity constitutes a public benefit entity as defined by FRS 102. The accounts are presented in sterling and rounded to the nearest thousand pounds. Goingconcern The directors, after reviewing the charity's financial performance, operating budget, investment plans. fundraising strategy and financial forecasts, considerthat the charity have sufficient funding to continue to provide residential, nursing, dementia and palliative care for the foreseeable future. The directors have assessed the prospects ol the charity over a three-year period to September 2025. Thi5 has taken into accountthe business models, strategic aims, risks and mitigation5 of the micro and macro-economic factors as affecting the charity. Based on this assessment, the directors continue to adopt the going concern basis in preparingthe accounts. In deterrnining the going concern basis of preparingthe accounts forthe year ended 30 September 2023, the directors are required to cor15ider whether the charity can continue in operational existence for a period of at least 12 months from the approval of the accounts. As at 30 september 2023, the total assets less current liabilitie5 of the group were £87m while the total net assets were £90m. Liquidity as at that date was £14m made up of £3.3m cash and cash equivalents, £IO.Im ofshort term deposits and £0.6m cash held with investment managers. The increase in liquidity from prior year reflects the withdrawal of Cash from our investment portfolios to allow for future capital plans and in response to the deficit budget. In addition to the increased operational growth capacity, the charity.. Does not have or intend to have long term borrowings over the assessed period. Gearing ratio and interest cover is nil. Reviewed the true cost of care and plan to increase fees accordingly. Plans to invest in Nightingale House to improve resident numbers and grow the charitable activities Has an investment portFolio, including investment propety, of £23.6m as at 30 September 2023. Nightiiigale Hainmersc>n Chai'ity Reg. No. 207316 Trustees Report aiid Annual Accounts for Year Ended 30 Septembei" 2023
NOTES TO THE FINANCIAL STATEMENT5 I. PRINCIPALACCOUNTING POLICIES (contlnued) The operating model included some downside scenarios such as occupancy numbers falling below budget, higher pay rates, higher costs or lower fundraising income than projected. The impact of the downside scenarios were reviewed against the charity's projected cash position and investments. Should the worst case scenario occur, mitigating actions will include divesting part of the charity's investments to maintain the ideal liquidity level and financially viable in the going concern assessment period. Basis of consolidation The statement of financial activities and balance sheet consolidate the accounts of the charity and its group undertakings Ili5ted belowl made up to the balance sheet date. Chalkford Limited, a UK trading subsidiary which is a property construction company. Friend5 of Nightingale House, a charitsble trust no longer operational but having had the purpose of raising funds on behalf of Nightingale Hammerson. Intra-group transactions are eliminated in full. Critical accountlng estimate$ and areas of judgement Preparation of the accounts requires the directors of the corporate trustee and management to make significantjudgements and estimates. The items in the accountswhere these judgements and estimates have been made include-. assessing the Pfobability of the receipt of legacy income estimating accrued expenditure determining the apportionment of expenditu between governance and support costs and beteen support cost5 and the various categories of expenditure estimating the useful economic life of tangible fixed assets for the purposes of determining a depreciation charge estimating the market value of investment property assessing the recoverability of outstanding debtor5 for residential and care home fee5 asse5singthe appropriateness of the assumptions made bythe actuary in arriving atthe actuarial valuation of the charity's defined benefit pension scheme determining the value of designated funds set aside atthe year end. Income recognition Income is recogni5ed in the period in which the group andlor charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received. Nightingale Haininerson Chai'ity Reg. No. 207316 Trustees Report and Annual AccoLints for Year Ei)ded 30 September 2023 35
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) l. Principal Accounting Policy (continued) The group's main income source of income is from its charitable activities including care home residential. dementia and nursing fee income. Other income sources include donations, legacies, income from fvndraisingevents, income from investments and interestsfrom shortterm bank deposits and other sources. Donations are recognised when the charity andlor group has confirmation of both the amount and settlement date. In the event of donations pledged but not received. the amounts are only accrued once formal pledge agreements are in place. if no such agreements exist the donations are recognised on receipt. In the event that a donation is subject to conditions that require a level of performance before the Charity is entitled to the funds. the income is deferred and not recognised until either those conditions are fully met. or the fulfilment of those conditions is wholly within the control of the Charity and it is probable that those conditions will be fulfilled in the reporting period, Legacies are included in the Statement of financial activities when the Charity is entitled to the legacy, the amount can be reasonablyestimated. the executors have established thatthere are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the Charity- Entitlement is taken as the earlier of the date on which the Charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executorto the Charity that distribution will be made. or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured, or estimated, reliably and the Charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity and/or group, or the charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated a5 a contingent asset and disc105ed if material. In the event thatthe gift is in the form of an asset otherthan cash or a financial asset traded on a recognised stock exchange, recognition 15 subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the Charity. Investment income is recognised once the dividend orsimilar income has been declared and notification has been received of the amount due. Interest on funds held on short term deposit is included when receivable and the amount can be measured reliably by the charity. thi5 is normally upon notification of the interest paid or payable by the bank. Interest on fixed interest, fixed term deposits is recognised evenly across the deposit term. Fees for residential and nursing care are recognised to the extent that it is probable that the economic benefits will flow to the charity and the revenue can be reliably measured. They are measured at the fair value of the consideration received or receivable based on agreements with residents and funding agencies, excluding any relevant value added tax. Income from other sources is measured at fair value and on an accruals basis. Nightingale HamIneOn Charity Reg. No. 207316 Trustees Report and Ani)Lial Accounts for Year Ended 30 Seprember 2023 36
NOTES TOTHE FINANCIAL STATEMENTS (CONTINUED) l. Principal Accounting Policy (continued) Expenditure recognition Liabilities are recognised as expenditure as soon as there is a legal orconstructive obligation committing the charity to make a payment to a thi rd party. it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure heading5 as described in Note 7. The classification between activities is as follows= Expenditure on raising funds includes- the salaries, direct costs and overheads associated with generating donated income and legacies. the fees paid to investment managers in connection with maintaining the portfolio of listed investments. and the expenditure of the Charity's trading subsidiary in the UK. Expenditure on charitable activities includes all costs associated with furthering the charitsble purposes of the charity through the provision of charitable activities i.e. the provision of holistic quality care to older Jewish people. This includes expenditure on residential and nursing care and the depreciation of those assets used for care purposes. All expenditure is stated inclusive of irrecoverable VAT. Allocatiofi of 5UPPOrt and governance co$t$ Support costs represent indirect charitable expenditure. In order to Carry out the prtmary purposes of the Charity, it is necessary to provide support in the form of personnel development, financial procedures, provision of office seNices and equipment and a suitable working environment. Governance costs comprise the costs involving the public accountability of the Charity (including audit costs) and costs in respect to its compliance with regulation and good practice. Support costs and governance costs are apportioned based onthe allocation basis as described in Note 7 to these accounts. Tangible fixed assets All items of furniture, fittings and equipmentwith a value in excess of £1,000 and which have an expected useful life exceeding one year are capitalised and depreciated. Depreciation is not charged on buildings under construction or on freehold land. The depreciation charges applied to assets on a Straight line basis over their estimated useful life are as below.. Propety (Freehold and Lea5eholdl: Development substructure Development super structure Freehold property Development external works Development Mechanical and Engineering Development finishes, fittings Inot loosel Cafe and kitchen Plant Loose fixtures and fittings Motor vehicles 100 year5 65 years 25 to 50 years 30 years 25 years 20 years 15 years 10 years 5 years 4years Plant.. Furniture, Equipment & Vehicles= Nightingale Haminerson Chai'ity Reg. No. 207316 TrLlStees Report and AnnLial Accounts for Year Elided 30 September 2023 37
NOTESTOTHE FINANCIAL STATEMENTS {CONTINUEDI l. PrincipalAccounting Policy Icontinuedl Investments Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing qLtoted market price. The charity does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider ecoTromic conditions. the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors. Properties held for investment are included in the accounts at their estimated current market value as determined by the directors of the corporate trustee after consultation with their professional propety advisers. Investments in UK trading subsidiaries are included in the accounts at cost with provision being made for any permanent diminution in value. Realised gains lor losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day ofthe financial year. Unrealised gains and losses are calculated as the difference between the fair value at the yearend and theircarrying value atthat date. Reali5ed and unreali5ed investmentgains lor1055esl are combined in the statement of financial activities and are credited lor debitedl in the year in which they arise. Debtors Debtors are recognised at their settlement amount, less any provision for non-recoverability- Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material. Cash at bank and In hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment. Cash held by investment managers as part of their management strategy is included in fixed asset investments. Creditors and provisions Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material. Nightingale HaminersDn Cherity Reg. No. 20 1316 Trustees Report and AnnLial Accounts for Year Ended 30 Septeimber 2023 38
NOTES TOTHE FINANCIAL STATEMENTS ICONTINUEDI l. Principal Accounting Policy (continued) Fund structure The general fund comprises those monies which may be used towards meetingthe charitsble objectives of the charity and which may be applied at the discretion of the directors. The designated funds are monies or a55ets set aside out of general funds and designated for specific purposes by the directors. The tangible fixed assets fund represents the net book value of the tangible fixed assets used for the support of the work of the charity andlor group. The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed condition5. Non-charitable trading funds consist of the retained assets of activitie5 conducted through non- charitable trading Subsidiary. Pension contributions The charity has a defined benefits pension scheme which is closed to new members. The assets of the scheme are held and managed separately from those of the charity. Pension scheme assets are measured at fair value at each balance sheet date. Liabilities are measured on an actuarial basis using the projected unit method. The net of these two figure5 15 recognised as an asset to the extent that the charity is able to recover the surplus either through reduced contributions in the future or through refunds from the scheme. Any change in the asset or liability beeen balance sheet dates is reflected in the statement of financial activities in recogni5ed gain5 and losses for the period. The charity also contributes to the defined contributions scheme and contributions to the scheme are harged to the statement of financial activities in the year in which they are payable to the scheme. Nightii)gale Hammerson Chai'ity Reg. No. 207316 Trustees Repc>rt and Anniial AccoLints for Year Ended 30 Sepieinber 2023 39
NOTES TOTHE FINANCIAL STATEMENTS (CONTINUED) 2. INCOME FROM DONATIONSAND LEGACIES G•ner•l Fund f'ooo R•strict•d Fund £'ooo 2023 Total Funds £'ooo 2022 Total Fund$ £'ooo Group Donations: Revenue donations Hammerson House capital fund Legacies Revenue donations Capital fund 2023 Total Funds 2022 Total Fund 1.400 189 16 1.589 16 1,888 196 2,243 2,243 1,025 3,643 2,729 210 380 3.853 3,109 3.109 General Fund £'ooo Restrlcted Fund £'ooo 2023 Total Fund5 £'ooo 2022 Total Funds £'ooo ChaTity Donation5: Revenue donations Hammerson House capital fund Legacies Revenue donations Capital fund 2023 Tot•1 Funds 2022 Total Fund 1,457 189 16 I,fA6 16 1,837 196 2,243 2,243 1,025 3,700 2,678 210 3,910 3,058 3,058 380 3. INCOME FROM INVESTMENTS Gen•ral Fund £'ooo Restrict•d Fund £'ooo 2023 Total Funds £'ooo 2022 Total Funds £'ooo Group and Charlty Income from listed investments by lund manager Investment Income Verita5 Investment Income Schroders 87 148 235 87 213 300 98 190 288 65 65 Rental income Interest receivable 2023 Total Funds 2022 Total Fund 485 485 85 728 65 793 381 381 333 Nightingale Hamiiierson Charity Reg. No. 207316 Tr(Jstpes Report and AnnLial Accounts for Year Ended 30 Septembei" 2023 40
NOTESTOTHE FINANCIAL STATEMENTS {CONTINUEDI 4. INCOME FROM PROVISION OF RESIDENTIAL CAREAND NURSING General Fund £'ooo Restricted Fund £'ooo 2023 Total Funds £'Ot)O 2022 Total Fund5 É'ooo Groupand charity Maintenance contributions receivable 19,055 19,055 14,771 Total maintenance contrlbutions recelvable 19,055 19,055 14,771 5. EXPENDITURE ON GENERATING DONATIONSAND LEGACIES General Fund £'ooo 270 302 34 606 508 Designat•d Restrl¢ted 2023 Total Fund Fund Funds £'ooo £'ooo £'ooo 270 302 34 2022 Total Funds £'ooo 227 249 32 Group and Charity staff costs Fundraising, legacy and appeal expenses Support costs (Note 71 2023 Total Funds 2022 Total Fund 606 508 508 6. EXPENDITURE ON PROVISION OF RESIDENTIAL CAREAND NURSING General Fund £'ooo 13,611 2,766 2,249 1,076 2,903 Designated Restricted 2023 Total Fund Fund Funds £'ooo £'ooo £'ooo 18 13,629 2,766 2,249 1,088 2.903 2,342 24,977 21,055 2022 Total Funds £'ooo 11,324 1,776 2,256 867 2,305 2,526 21,055 Group and Charity stsff costs Catering and food Premises day to day cost5 Medical, care alld welfare costs Support costs (Note 71 Depreciation INote 141 2023 Tot•1 Funds 2022 Total Fund 12 1,802 1.802 1,844 540 570 22,605 18,074 1,137 Nigiitingale Hainmerson Cliarity Reg. No. 20 1316 Trustees Report and AnnLial Accounts for Year En(Jed 30 Septeirber 2023 41
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 7. SUPPORTCOSTS The support costs and the basis of their allocation were: Provlslons of rèsid•ntl•l and nursing care Generatlng donatlons and l¢gacies £'ooo 15 Total Basis olapportionment £'ooo 1,288 Head count 296 Head count Group and Charity Support Staff Cost Administrative and Governance costs Information and Communication Technology Insurance Human Resources and Volunteering 2023 Total- Group and Ch4rlty £'ooo 1,273 292 276 335 693 279 Head count 339 Head count 701 Head count 2,903 2,869 8. UKTRADING SUBSIDIARY Nightinga5e Hammerson owns the entire called up ordinary share capital of Chalkford Limited, a property construction company Icompany registration number 010013961. 2023 2022 £'ooo £'ooo Chalkford Llmlted Turnover 68 30 Cost of sales Administrative expenses Operating profit Interest payable Profit before Gift Aid Amount donated to Nightingale Hammerson Gift aid adjustment in respect to earlier periods Profit on ordinary activities before tsxation Taxation 161 {41 58 1241 $8 1581 55 55 1461 Retained profit At 30 September 2023, Chalkford Limited had retained profits of £8k12022: retained profits of £8kl and called up share capital of £ik 12022: £lkl. The results and the balance sheet figure5 have been consolidated on a line by line basis within the accounts of Nightingale Hammerson. NIEhtingale Hamrnerson cha1.ity Reg. No. 207316 Trustees ReFlOrt and Annual Accounts for Year Ended 30 Seprember 2023 42
NOTESTO THE FINANCIAL STATEMENTS (CONTINUED) 9. NET (EXPENDITURE) INCOME FOR THE YEAR This is stated after charging: Goneyal Fund £'ooo 15,332 DesiEnated Fund £'(x)o R•strirt•d 2023 Total Fund Funds £'ooo £'ooo 2022 Total Funds £'ooo Group Staff cost5 (Note 101 Auditor's remuneration: Audit services- relating to currentyear Audit services- relating to prior year Other services Depreciation (Note 141 18 15,350 12,808 36 36 li 34 1,802 540 2,342 2,526 General Fund £'ooo 15.332 D•signated Fund £'ooo Restrlcted 2023 Total Fund Funds £'ooo £'ooo 18 15,350 2022 Total Funds É'ooo 12,808 Charlty Stafl costs INote 101 Auditor's remuneration-. Audit seryices- relating to currentyear Audit services- relating to prioryear Other service5 Depreciation (Note 141 36 36 31 1,802 2042 2,526 10. STAFF COSTS 2023 £'ooo 11,788 1,105 271 13,164 2022 £'ooo 9.273 889 231 10,393 Group and charity Wages and salaries Social security costs Other Pension costs Payments to agency Redundancy costs 2,186 2,413 15.350 12,808 Nightingale Hammerson Clicirity Reg. No, 207316 Triistees Report aiid Annual Account5 for Year Encled 30 September 2023 43
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 10. STAFF COSTS (Continued) Of payments to agency staff. £466k12022= £799kl represents payments in respect of one to one care provision. These costs were covered by one to one care fee income. The number of employees who earned £60.000 per annum or more lincluding taxable benefits but excluding employer's pension contributions) were as follows: 2023 2022 £60,000- £70.000 £70,001- £80,000 £80,001- £90,000 £90,001- £100,000 £110,001- £120,000 Of those employee5 who earned £60,000 or more during the year las defined above). employer contributions totalling £24,72612022: £28,092) were made to defined contribution Schemes in respect of ten12022: seven) of them. No contributions were made to defined benefit schemes12022: £nill. The total remuneration, including benefits, employers pension contributions and employer's national insurance contributions, paid to key management personnel in the year was £571k12022= £576kl. The average number of employees, excluding agency staff, analysed by function, was: 2023 2022 Generating funds Residential and nursing care services 493 396 499 402 11. TRUSTEES, REMUNERATION AND EXPENSES No director received any MUneratIon orexpenses from the group orcharity duringthe year12022- £nill. The nature of the charity's activities means that from time to time relatives of the directors of the corporate trustee or staff may be cared for by the Charity. In 2023, one director of the corporate trustee had a relative cared for by the charity and all fees were set at arm's length12022.' one). Nightingal& Hainmersoi? Charity Reg. No. 207316 Trustees Report ancl Annlial AccoLlI)Is for Year Ended 30 September 2023 44
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 12. TRUSTEES, INDEMNITYINSURANCE The insurance provides cover up to £5 million12022- £5 million) and the total premium paid in respect of such insurance was £43k12022 - £36kl. The cost of this insurance is included in the total insurance cost. 13. TAXATION N ightingale Hammerson is a registered charity and therefore not liable to income tax or capital gains tax on income or gains derived from their charitable activities. as they fall within the various exemption5 available to registered charities. Chalkford Limited donates any taxable profits to Nightingale Hammerson via Gift Aid each year, in the prior year there was a tax charge of £46k. 14. TANGIBLE FIXEDASSETS Furniture. Equipmènt Plint and Vehicles £'ooo £'ooo Freehold Pro ert £'ooo L•asehold Property £'ooo 2023 Total £'ooD Group Cost At l October 2022 Additions Di5P05als At 30 Sèptember 2023 45,373 527 38,918 1221 1.804 134 3,566 499 1541 4,011 89,661 1,138 1541 45,900 38,896 1,938 D•pr•ciation At l October 2022 Charge Disposals At 30 September 2023 35,560 685 1,724 1.068 932 81 2,019 508 1541 2,473 40,235 2,342 1541 42,S23 36,245 2,792 1,014 Net book values At 30 September 2023 At 30 September 2022 9,655 9,813 36,104 37,194 925 872 1,538 1.547 48,222 49.426 No value has been attributed to the leasehold land ofthe Hammerson House, Wohl Campus, 51te as lease covenants require its use as a residential care facility. Nightingale Hamtnerson Charity Reg. No. 207316 Trustees Report and Annual Aecounts for Year Ended 30 septe1ber 2023 45
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} 14. TANGIBLE FIXED ASSETS (CONTINUED) Furniture, Equipment Plant and Vehicles £'ooo £'ooo Freehold Property £'ooo Leasehold Property £'ooo 2023 Total £'ooo Charity Cost At l October 2022 Additions Disposals At 30 September 2023 45,372 527 41,145 36 1.866 134 3,607 498 1541 4,051 91,990 1,195 1541 93.131 45.899 41,181 2,000 Depreclatlon At l October 2022 Charge Disposals At 30 September 2023 35,559 685 1,749 1,068 959 82 2,059 507 1541 2,512 40,326 2,342 1541 42,614 36,244 2,817 1,041 Net book values At 30 September 2023 At 30 September 2022 9,655 9,813 38,364 39,396 959 907 1,539 50.517 51,664 15. FINANCIAL COMMITMENTS At 30 September 2023. the charity had £4m financial commitment that had been authorised but not contracted forto refurbish Nightingale House12022'. £4ml. It was agreed in January 2024 to increase this commitment to £6m. There was a financial commitment contracted for the refurbishment of Wohl Household tot311ing £2m but which had not been provided for12022- £nill. Nighlii)ga1e Hammerson Charity Reg. Nlo. 207316 Trustees Report and Annual Accounts foi" Yeai" Ended 30 September 2023 46
NOTESTOTHE FINANCIAL STATEMENTS (CONTINUED) 16. FIXEDASSET INVESTMENTS Investment List•d Property Investments £'ooo £'ooo 297 26,063 5,008 2023 Total £'ooo 26,360 5,008 2022 Total £'ooo 27,780 5,670 Group Market value at l October 2022 Additions at cost Disposals at book value Iproceeds:£9.49m with realised gain of £0.20ml Net unrealised investment Ilossesllgains Market value at 30 September 2023 Cash awaiting Investment 19,2881 {9,2881 894 22,677 645 15,4571 11,6331 26,360 911 1461 251 22,928 645 Mafkrt value at 30 September 2023 Cost of Investments at 30 September 2023 251 23,322 Zl,176 23.573 21,407 27,271 21,415 238 Shares in subsidiary company £'ooo Investment Listed Property Investments £'ooo £'ooo 297 26,063 5,008 2023 Total £'ooo 26,361 5.008 2022 Total £'ooo 27.781 5,670 Charity Market value at l October 2022 Additions at cost Disposals at book value Iproceeds-£9.49m with realised gain of £0.20ml Net unrealised investment Ilossesllgains Market value at 30 September 2023 Cash awaiting investment 19,2881 1ga881 15,4571 894 11,6331 22,677 26,361 645 911 1461 2SI 22,929 645 Market value at 30 September 2023 Cost of Investments at 30 September 2023 251 23,322 21,176 27,272 21,415 238 21,407 Llsted Investments All listed investments are dealt in on 3 recognised stock exchange. Listed investments comprised the following: 2023 Total 2023 Trtal £'ooo 4,297 15,723 2,284 373 645 23.322 2022 Total 2022 Total £'ooo 4.855 18,612 2.428 168 911 Group and Charity Fixed Interest Equities Alternative5 Multi-assets funds Cash Instalments and unit funds 18% 67Vo 18% 69% 3% loo% loo% 26,974 Nightingale Hammerson Chai'ity Reg. No. 207316 Trustees Report and AIiiiLial AccoLints for Year Ended 30 Septeini)er 2023 47
NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI 16. FIXED ASSET INVESTMENTS ICONTINUEDI At 30 September 2023, the following investment holding had a material value when compared to the market value of the total portfolio of listed investments at that date. 2023 Total 2023 Total 2022 Total 2022 Tot•1 Group and Charlty Vanguard S&P 500 UCITS ETF Vanguard FTSE All-world UCITS ETF £'ooo 1,313 £'ooo 5.8 4.5% 1.273 Investment property Investment property comprises of a long leasehold flat in a propety situated in North London purchased by the charity during the year ended 30 September 2014. The directors of the corporate trustee have valued the property based upon information publicly available relating to similar properties in the same location. Subsldlary Undertaking At30 September 2023, Nightingale Hammerson owned the entire called up share capital of the following company: Company Chalkford Limited Country of incorporation England Principal artivity duringthe year Property development 17. DEBTORS 2023 2022 Group £'ooo 2,369 Charlty £'ooo 2,369 458 Group £'ooo Chari £'ooo 2,544 592 80 Maintenance contributions Amount due from subsidiary undertaking (Note 241 Legacies receivable Donations pledged other debtors Prepayments VAT debtor 2,1)02 334 2,002 334 339 237 71 339 225 71 142 509 141 508 ioi 30 43 28 5,457 5,842 3.314 3.879 NIEhtingale Hainmerson chai.ity Reg. No 207316 Trustees Rtsport and Annual Accounts for Year Elided 30 September 2023 48
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 18. CREDITORS-AMOUNT FALLING DUEWITHIN ONEYEAR 2023 2022 Group £'ooo 1.080 413 1,372 108 Charity Group £'ooo 922 397 226 Charity £'ooo 923 397 226 Amounts held on behalf of residents Maintenance contributions received in advance Expense Creditors Capit31 Creditors Social security and othei taxation Other creditors Accruals Amount due to subsidiary undertaking (Note 241 1,080 413 1.391 108 257 257 75 291 39 1,605 246 51 992 1,233 4,068 75 508 218 512 3,817 4,050 3,480 19. RESTRICTED FUNDS The income funds of the group and charity include restricted funds comprisingthe following balances of donation5 and grants held on trusts to be applied for specific purposes: Ati Oitober 2022 £'ooo At30 September 2023 Income £'o(x) Expenditure £'cx)o Transter £'ooo Group Nightingale House Fixed Assets Fund Nightingale House Capital Fund Hammerson House Capital Fund Weinberg Funds Donations Special Purpose Janet and Howard Bloch funds Intergenerational fund Infedion control Giant Other Testricted fund5 £'ooo 8,049 600 157 3,310 404 233 38 15401 7,509 600 21 11081 70 3A75 409 233 31 151 11461 181 1201 20 37 161 181 12621 188 12,952 29S 15701 12015 The transfers between fL*nds relate to releasing grant income for Hammerson House Capital fund and transferring staff costs from unrestricted funds to Donations Special Purpose for allocation against a restricted grant. Nightingale Hammersoii Charity Reg. No. 207316 Trustees Rnporl and Aniiual Accounts foi" Year Endecl 30 Sepleinbei. 2023 49
NOTES TOTHE FINANCIAL STATEMENTS {CONTINUED) 19. RESTRICTED FUNDS {contlnued} Ati October 2022 £'ooo At30 September 2023 £'ooo Income Exp•ndituv• £'ooo £'ooo Transfer £'ooo Charity Nightingale House Fixed Assets Fund Nightingale House Capital Fund Hammerson House Capital Fund Weinberg Funds Donations Special Purpose Janet and Howard Bloch funds Intergenerational fund Infection control Grant Other restricted funds 8,063 600 157 3,310 404 232 38 15401 7.523 600 70 3,375 409 232 31 21 65 151 11081 11461 181 1201 20 37 295 159 12.963 186 12,426 15701 1262) Nightingale House Fixed Assets Fund This fund comprises the net book value of buildings and equipment used forthe operation of Nightingale House, purchased with restricted funds. Each year the depreciation on these assets is charged to the fund. Nightingale Housecapltal Fund This fund comprises monies donated specifically towards the construction and development of new building projects on the site of Nightingale House which are as yet unspent. Hammerson Housecapital Fund This fund comprise donations pledged specif1cally for the redevelopment of Hammerson House and as yet unspent. Weinberg Funds These funds were donated by The Harry and Jeanette Weinberg Fund and are held for the purpose of substantially upgrading the charity's care homes for the elderly at both Nightingale House and Hamrner50n House. Donation5 Special Purpose These funds comprise donations received towards a specific purpose. Janetand Howard Blochfunds These funds comprise monies to be used to provide additional services for the residents, specifically in terms of activities, and the provision of training. Intergeneratlonal Fund This comprises monies received specifically for operation of the intergenerational programme. Infection control Grant Government grant received to provide support with Covid-19 infection control costs Nightingale Hammerson Charity Rtsg. No. 207316 TrLlStees Report and Annual Accounts for Year Ende¢ 30 September 2023 50
NOTES TO THE FINANCIAL STATEMENTS ICONTINVED) 20. DESIGNATED FUNDS The income funds of the group and charity include the following designated funds which have been set aside for major capital projects: Ati October 2022 £'ooo New d•signation5 and transfers £'ooo At30 September 2023 £'ooo utllised I released £'ooo Group Hammerson House building fund Nightingale House building fund Maintenance fund 131 11311 8,500 3,500 12.000 36,985 4.391 8,500 3,500 12,000 3S,518 5.194 131 1221 1,160 11311 11,4451 13571 Hammerson House tangible fixed assets fund Nightingale House tangible fixed assets fund 53,376 1.269 11.9331 52.712 Ati O<tober 2022 £'ooo New designations and transfers £'ooo 73 At30 September 2023 £'ooo utilised I relèased £'ooo 1731 Charity Hammerson House building fund Nightingale House building fund Maintenance fund 8.500 3.500 12.000 38,839 4,762 8,500 3,500 12,000 37,429 5,565 73 36 1,159 1731 11,4461 13561 Hammer50n House tangible fixed assets fund Nightingale House tangible lixed assets fund 55,601 1368 11,87SI 54,994 NightiMg8le Hainmerson Charity ReL No. 207316 Trustees Report and AnnLial Accolints for Ye3r Ended 30 Septe1nber 2023 51
NOTES TOTHE FINANCIAL STATEMENTS (CONTINUED) 20. DESIGNATED FUNDS (CONTINUED) Hummerson House building fund Thiswas fund set aside by the directors forthe redevelopment of Hammerson House, Wohl Campus. This was duly allocated or released atthe year-end given the completion of Hammerson House, Wohl Campus development Nightingale House building fund This comprise5 monies set aside by the directors to provide funds for redevelopment at Nightingale House. Maintenance fund This comprises monies set aside by the directors to provide funds for the ongoing building maintenance ofour homes. Hammerson H¢)use tangible fixed055ets fund This fund comprises the net book value of the fixed assets related to Hammerson House. used for the operation and designated. Every year, depreciation charges is allocated against this fund. Nightingale House tongible fixedossets fund The tangible fixed assets fund comprises the net book value of the charity's tangible fixed assets (excluding those accounted for the Nightingale House Fixed Assets Restricted Fund). A decision was made by the directors to separate this fund from the general fund in recognition of the fact that the tangible fixed assets are used in the day to day work of the charity and group and hence the fund value would r)ot be easily realisable if needed to meet future contingencies. 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS Designated funds Restricted funds Generalfunds 1023 Total Group Fund balnces •t 30 Sept•mber 2023 r• r•pre5ented by: Tangiblè fixed assets Investments E'OOO £'ooo £'ooo £'ooo 40,713 7,509 3,375 1,531 48,222 23.573 18,917 13.817) 2,706 20.198 5,387 13,8171 2,706 Current a55ets 11,999 Current liabilities Pension scheme asset Total nét ass•ts 24.474 52.712 12.415 89.601 Nightingale Hammerson Charity Reg. No. 207316 Trustees Report aiid Annual ALcounts for Year Ended 30 Septeniber 2023 52
NOTES TOTHE FINANCIAL STATEMENTS {CONTINUED} 21. ANALYSIS OF NET AS5Efs BETWEEN FUNDS ICONTINUEDI Designated funds £'ooo Restrfrted tund$ £'ooo General funds Charity £'ooo Fund balances at 30 September 2023 are represented by: Tangible fixed assets Investments Current assets Current liabilities Pension scheme asset 2023 Total £'ooo 42,995 7,522 3,375 1,529 50.517 23.574 19,110 14,0501 2.706 20,199 5,582 14,0501 2.706 11,999 Total n•t ass•ts 24,437 54,994 91,857 22. ANALYSISOF UNREALISED GAINS1 LOSSES G•neral De51gnated Restricted funds funds funds £'ooo £'ooo £,0 1,839 307 13 1,852 2023 Total £'ooo 2,146 13 2,159 Group and Charity Accumulated gains on listed investments Accumulated gains on property Total 307 RecontiliatSon of movements in Ljnrealised gains IIOs5e51 Unrealised gains at l October 2022 Less.. cumulative unrealised105ses released from disposals Add.. Net unrealised gains On listed investments unrealised gains in year Reallocation between fvnds in year Accumulated unreal1$ Ealns 5.154 13,8911 702 5,856 16541 (£5451 723 11341 1,852 125 134 307 848 2.159 23. PENSION COMMITMENTS Nightingale Hammerson operates a defined benefit scheme for certain former employees. providing benefits based on final pensionable pay. It also contributes to personal pension plans for current employees. The defined benefit scheme is a separate trustee administered fund holding the pension scheme assets to meet long term pension liabilities. A full actuarial valuation was carried out at 31 March 2020 and updated to 30 September 2023 by a qualified actuary and in line with FRS 102. The major assumptions used bythe actuary are shown below. Nightiiigaie Hafninerson Charity Re& No. 207316 Trustees Report and AnnLial AccoLints for Yeai" Enaed 30 September 2023 53
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 23. PENSION COMMITMENTS (CONTINUED) This most recent actuarial valuation showed a shortfall of £15.00012022: shortfall of £15,000). However, no additional contributions were required to correct the shortfall. This is because it was estimated that the Scheme was in surplus atthe date of recovery plan. As there are no active members accruing benefits within the scheme, no further contributions are payable. The employer has agreed to meet all expenses of the scheme and levies to the Pension Protection Fund, other than investment management charges which are borne bythe Scheme. Present values of defined benefit obligation, fair value of assets and defined benefit a$5et 2023 £'ooo 2022 £'ooo Fair value of plan a55ets Present value of defined benefit obligation Defined benefit asset at 30 September 5,073 12,367> 2,706 4.870 12,4521 2,418 Reconciliation of opening and closing balances of the defined benefit obllgation Defined benefit obligation at start of period Interest expense Actuarial gains Benefits paid Defined benefit obligation at end of period 2023 £'ooo 2022 £'ooo 2,452 129 {89} 11251 2,367 3,591 70 11,0201 11891 2,452 Reconciliation of opening and closing balances of the fair value of plan assets 2023 £'ooo 2022 £'ooo Fair value of plan assets at start of period Interest income Actuarial gains I Ilossesl Benefits paid and expenses Fair value of plan assets at end of period 4,870 260 71 {128) 5,073 5,507 108 15561 11891 4,870 Nightingale Hainmerson Charity Règ. No. 207316 Ti'ustees Report and Aiinval AccoLints for Yeai. Eii(Jed 30 Septeniber 2023
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 23. PENSION COMMITMENTS ICONTINUEDI The actual return on the plan assets overthe period ended 30 September 2023 was £331k12022-1£448kll. At30 At30 ptember September 2023 2022 £'ooo £'ooo Defined benefit costs recognised In other comprehensive income (Lossesllgains on plan a55ets lexcluding amounts included in net interest costl Experience Ilossesllgains arising on plan liabilities Gain resulting from changes in the demographic and financial assumptions underlying the present value of plan liabilities Net interest income Expenses Total gain recognised in other comprehensive income 71 (37) 15561 11031 126 1,123 38 131 131 288 502 At30 At30 September September 2023 2022 £'ooo £'ooo Assets Cash and cash equivalents Equity instruments Debt instruments other Total Assets 55 1191 2,923 1,544 422 3,010 1,663 345 5,073 4,870 None of the fair valves of the assets shown above include any direct investments in the employer's own financial instruments or any property occupied by, or other a55etS Used by, the employer. Nightin%yale Hammerson Chariry Reg. No. 207316 Trustees Report apd Aiiiiual Accounts for Year Ended 30 Septeinber 2023 55
NOTESTOTHE FINANCIAL STATEMENTS {COMTINUEDI 23. PENSION COMMITMENTS (CONTINUED) At30 At30 September September 2023 2022 Assumptions Discount Rate Inflation IRPII 5.70 5.40 3.40 3.80 The mort31ity assumptions adopted at 30 September 2022 imply the following life expettancies at age 65.. 2023 2022 Retiring today I current pensioners Males Females Retiring in 20 year$ I future pensioners Males Females 22.7 22.4 23.8 24.2 24.0 23.7 25.3 25.6 The best estimate of contributions to be paid bythe employerto the scheme forthe period commencing l October 2023 is £nil12022: £nill. Any expenses of the scheme. other than investment management costs, are expected to be met directly by the employer or reimbursed by the employer if paid by the scheme. Personal Pension Plans and auto enrolment Schemes The total pension cost in respect to personal pension plans and auto enrolment schemes for the year was £0.27m12022- £0.23ml. Nigiitingale Harv.nierson Charity Reg. No. 207316 Trusiees Report and AnnLial Accounts for Year Ended 30 Septeinbei. 2023 56
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 24. RELATED PARTY TRANSACTIONS Chalkford Limited Chalkford Limited became a wholly owned subsidiary of Nightingale House on 2 March 2004 and continues as a wholly owned subsidiary of Nightingale Hammerson post-merger. Two directors of Nightingale Hamrnerson Trustee Company Limited, Daniel Dayar) and Steven Sharpe are also directors of Chalkford Limited. Chalkford Limited made charitable contribution5 of £58k to Nightingale Hammerson during the year to 30 September 202312022- £3kl. At30 September 2023 Chalkford Limited owed Nightingale Hammerson £0.4m12022.. £0.4ml in accordance with a loan facility and a further £58k12022: £0.19ml beingcharitable contributions payable to Nightingale Hammerson in respectto the year ended 30 September 2023. At 30 September 2023, Nightingale Hammerson owed Chalkford Limited £218k 12022: £1.22ml under contract for the construction of property. Trustees donations During the year the charity received donations totalling £179,608 from 7 of the charity's Trustees and organisations to which they are connected 12022 £128,103 from 13 trustees and connected organisationsl. In addition, £32,75012022- £145,000) was received from the President and Vice President and organisations to which thoy are connected. 25. POST BALANCE SHEET EVENT5 There were no post balance sheet events to port(2022. none). Nightingale Haminerson Chariiy Reg. No. 207316 Trustees Report and Annual Accounts for Year Endgd 30 September 2023 57
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 26. COMPARATIVE FIGURESWITH FULLANALYSIS BETWEEN FUNDS Consolidated Statement of Financial Activities Unrestrirted Funds 2022 General De$ignated Re5trlrted Total Fund Fund Fund Funds £'ooo £'ooo £'ooo £'ooo Note Income from: Donations and legacies Revenue purposes Capital purposes Investments and Short term deposits Charitable activities Provision ol residential and nursing care Government's infection control and furlough grants Surplus on disposal of tsngible fixed assets Other sources Total Income Expenditure on: Raising funds Generating donations and legacies Investment management costs Charitable activities Provision of residential and nursing care Taxation Total expendltur• 2,729 2,913 196 381 196 333 14.771 14,771 396 396 846 106 18,785 106 824 19 609 170 170 18,074 46 18,798 1,137 21,055 13 1,844 1,137 21,779 Net lexpenditurel fortheyear before transfers and 8ainslllossesl on investments Tr3nsfer5 between lunds Gainslllossesl on investments Realised gains on disposal of investments Unrealised (losses) on investments Net lexpenditurel income forth• y•ar 1131 11,8441 13131 (2.1701 1,743 iiiii 11,6321 2T2 272 16 11,6331 369 {1.6331 11,945) {3,5311 11,9551 other recoEnlsed gains and losses Actuarial gains on pension scheme Net movement In funds 502 871 502 11,945} {3.0291 11,955) Funds brought forward at l October 2021 22,973 55,324 14,897 93,194 Funds carried fon¥ard 30 September 2022 21 23,844 53,369 12,952 90,165 Nightingale H3minersoD Charity Reg. No. 207316 Trustees Report and Aiinual Accounrs for Yeai. Ended 30 Septeinber 202• 58
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 26. COMPARATIVE FIGURES WITH FULLANALYSIS BETWEEN FUNDS ICONTINUEDI Charity Statement of Financlal Actlvltles Unrestricted FurHIs 2022 Tot•1 Funds £'ooo General DeslEnat•d Restricted Fund Fund Fund £'ooo £'ooo £'o(10 Note Income from: Donations and legacies Revenue purposes Capital purposes Investments and shortterm deposits Charitable activities Provision of residential and nursing care Government's infection control and furlough grants Surplus on disposal of tsngible fixed assets Other sources Ttstal In¢•me Expènditur• on: Raising funds Generating donations and legacies Investment management costs Charitable activities Provision of residential and nursing care Total•xpendlture 2,678 184 196 48 2,862 196 381 333 14,771 14.771 396 396 846 99 18,727 824 19.551 508 170 508 170 18,074 18,752 1,137 1,137 21.055 21,733 Net lexpenditurel for the year before transfer5 and gainslllossesl on investments Transfers between funds Gainslllossesl on investments Realised gains on disposal of investments Unrealised (losses) on listed investments Net lexpenditurel income forthe year 1151 11.8441 1313} 12,1821 1,733 iioii 11,6321 272 11,6331 347 272 11,6331 13,5431 16 11,9451 11,945) other recognised gains and loss¢$ Actuarial gains on pension scheme Net movem•nt in funds 502 849 502 13,0411 11,9451 1,9451 Funds brought forward at l October2021 22,951 57,546 14,908 95.405 Funds carrled ft4rward 30 September 2022 21 23,800 55,601 12,963 92,364 Nightingale Hairinerson Charity Reg. No. 207316 Trusrees Report and Annua1 Accounts for Year Endeol 30 Septembei" 2023 59
NOTESTOTHE FINANCIAL STATEMENTS (CONTINUED) 26. COMPARATIVE FIGURESWITH FULLANALYSIS BETWEEN FUNDS (CONTINUED) Intomt from donations and ley¢le Genéral Fund £'ooo Restricted Fund £'ooo 2022 Total Funds £'ooo GTOUP Donations- Revenue donations Hammerson House capital fund Legacies Revenue donation5 2022 Total Funds 2021 Total Fund 1,704 1,888 196 196 1.025 2,729 2.104 1.025 3,109 3,953 380 1,849 General Fund £'ooo Restricted Fund £'ooo 2022 Total Funds £'ooo Charlty Donations- Revenue donations Hammerson House capital fund Legacies Revenue donations 2022 Total Funds 2021 Total Fund 1.653 184 196 1,837 196 1,025 2.678 2.346 380 3,058 4,195 1,849 Incom• from Inv•stmtnts General Fund £'ooo Re5trlrted Fund £'(x)o 2022 Totsl Funds E'OOO Group Income from listed investments by fund manager Investment Incomeveritas Investment Income Schroders 98 142 240 98 190 48 48 288 Rental income Interest recewable 2022 Total Funds 2021 Total Fund 85 85 381 333 290 334 General Fund £'ooo Restricted Fund £'ooo 2022 Total Fund5 £'ooo Charity Income from listed investmènts by fund manager Investment Income Veritas Investment Income Schroders 98 142 98 190 288 48 240 Rental income Interest receivable 2022 Total Fund$ 2021 Total Fund 85 333 85 381 339 295 Nightingale Hainirerson Charity Reg. No. 207316 TriJstees Report arid Ai)iiual Ac¢cJunts for Year Ended 30 Septembe* 2023 60
NOTESTOTHE FINANCIAL STATEMENTS {CONTINUEDI 26. COMPARATIVE FIGURESWITH FULLANALYSIS BETWEEN FUNDS (CONTINUED) INCOME FROM PROVISION OF RESIDENTIAL CAREAND NURSING General Fund £'ooo 14,771 Restrl¢ted Fund £'ooo 2022Total Funds £'ooo 14,771 Groupand ¢harfty Maintenance contributions receivable Total maintenanc• contribution$ recelvable 14.771 EXPENDITVRE ON GENEIiATING DONATIONS AND LEGACIES General Fund £'ooo 227 249 32 508 Deslgnated Fund £'(M)O R•strirted 2022 Total Fund Funds £'ooo £'ooo 227 249 32 508 Group and Charity Staff costs Fundraisingi legacy and appeal expenses Support COSt5 2022 Total Funds Expendlture on provlsl•n of r•sldentlal and nur31ni care General Fund £'ooo 10.919 1,776 2,257 817 2.305 Designated Fund £'OOD Restricted Fund É'ooo 405 2022 Total Fund5 É'ooo 11.324 1,776 2.256 867 2,305 Group staff costs Catering and food Premises day to day costs Medical, care and welfare costs Support costs Dèpreciation 2022 Total Funds 50 682 18,074 1,137 21,055 General Fund £'ooo 10,919 1,776 2,257 817 2,305 D•signated Fund £'ooo Restricted Fund £'ooo 405 2022 Total Funds £'ooo 11,324 1,776 2,256 867 2,305 2,526 21,055 Charity Staff costs Catering and food PTemises day to day costs Medical, care and wellare costs Supportcosts Depreciation 2022 Total Funds so 682 1.137 18,074 1,844 Nightingale Haminerson Charity Reg. No. 207316 TrLlStees Report and AnnLial Accounts for Year Endecl 30 Sepieinber 2023 61