Formally known as Sutton’s Hospital in Charterhouse ma |
oa a s Report and Accounts ‘ - 3 . Year ended 31st March 2023 —_a
Annual Report to 31st March 2023
Chairman’s Foreword
Major General Andrew Ritchie CBE, Chairman of the Charterhouse
I am pleased to be able to present to you our annual report and accounts, for a year which has seen considerable change for the nation as well as for the Charterhouse. We were all deeply saddened at the death of our Royal Governor, Her Majesty Queen Elizabeth II. Queen Elizabeth had been a staunch supporter of the Charterhouse during her reign. Her first visit was in 1958, when she formally reopened the refurbished Charterhouse following the ravages of the Second World War bombing in May 1941. Her final visit was in 2017, when she unveiled the Museum and Learning Centre as key elements of opening the Charterhouse to the public for the first time in its history. Both visits have parallels with events over the last 12 months.
The Royal visit in 1958 coincided with the restoration in the number of our Brothers (residents) to pre-war levels. Similarly we have in 2022-23 rejoiced in the gradual recovery of our Brother community following the Covid-19 pandemic. We look forward
to Brother numbers continuing to grow in the year ahead. We have over the same period mourned the loss of five Brothers. Peter Watkins, Alistair Davidson, Peter Giles, Rakesh Mathur and Walter Bamford all made a wonderful contribution to our community over the years and they are much missed.
Within three years of the public being admitted to the Charterhouse following Queen Elizabeth’s visit in 2017, Covid-19 forced us to close our doors once again. The last year has seen a full reopening of our facilities and I am pleased that this report shows a significant rise in visitor numbers together with a return to pre-Covid levels of commercial events and film location hirings, all of which are important to our continuing funding.
The Governors have this year agreed a new strategy for the Charterhouse entitled Creating a Community of Excellence for the Care of Older People . It will provide an important
Chair of Governors, Major General Andrew Ritchie CBE, and Chief Executive & Master, Peter Aiers OBE
guide to our work in the coming years and is largely the result of a comprehensive analysis by the Master, Peter Aiers, now in his second year and proving a great asset. Under his leadership the Charterhouse is in an excellent position to continue to develop and flourish.
The seven acres of gardens that surround the Charterhouse are a vital resource for the health and wellbeing of the Charterhouse community.
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Annual Report to 31st March 2023
Master & Chief Executive’s Introduction Peter Aiers OBE, 34th Master of the Charterhouse
This annual report covers the first year of my tenure at the Charterhouse. I must begin by stating what an extraordinary privilege it is to lead this venerable and ancient institution. I find it remarkable that the Charterhouse still fulfils the wishes of Thomas Sutton, as set out in his will of 1611, to house older people with a social, housing, or financial need as well as to support education. It has been a real pleasure in getting to know the Brothers, all of whom have something to offer our community. I am especially impressed that the Brothers took it upon themselves to develop a warm space for our local community, offering free tea, coffee and cakes every Friday morning, and even more importantly an inclusive welcome to all our visitors.
This year has been one of strategic development. Consultation was undertaken with Governors, Staff and Brothers, to create a new strategy, and this was agreed in the autumn of 2022. There is much more detail on the strategy in the following pages, but it is worth touching on our focus of becoming a Community of Excellence for the Care of Older People . We are committed to our
location where we have been since 1611. There are many positives for the community by remaining in the centre of the globally important city of London, and by ensuring the continued use of these marvellous and important historic structures as an almshouse. We have wonderful gardens and we are proud to open our Museum and Chapel to the public free of charge. The community traditions, some older than others, are also important to the rhythm of life, as are the daily offices said in the Chapel.
We are working hard on defining what care means for the Charterhouse into the 21st century. How do we best deliver care and ensure that the Brothers can remain here to end of life, whilst continuing to experience a high quality of living? Our team is also beginning to work out how we deliver a more sustainable Charterhouse, in terms of our carbon footprint, and how we can raise the capital funds to deliver the needed repairs to our nationally important buildings. All this takes some thinking through and plenty of consultation, but we are confident all of this will underpin a thriving community well into the future.
Peter Aiers, here with his dog, Bertie, is the 34th Master of the Charterhouse. He brings with him a new approach to the care and development of historic buildings, which will see the Charterhouse reinvigorated for the 21st century.
The Charterhouse is a close-knit community of Brothers, staff, volunteers and governors, all working together to support the aims of a four-hundred-year old charity.
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Annual Report to 31st March 2023
Report of the Governors
Royal Governors: His Majesty The King Archiepiscopal Governor: The Most Reverend and Right Honourable Justin Welby MA BA DipMin Lord Archbishop of Canterbury Governors Major General Andrew Ritchie CBE (Chair) Caroline Abrahams CBE Sufina Ahmad MBE Baroness Andrews of Southover OBE MA DPhil DLaws Caroline Cassels LVO RGN DMS Bernadette Cunningham MBA David Farnsworth Dr Michael Harding MBBS MRCS LRCP DRCOG Peter Hodgson CBE FCA DL (up to 27th November 2022) Simon Kitching FRICS (up to 27th November 2022) Flora Lyon Kate McLeod MSc Rebecca Munns William Naunton Anna Prior MA (from 2nd March 2023) Caroline Rolfe CPFA Wilf Weeks OBE Paul Wilkinson MSc (from 2nd March 2023)
The responsibility for the management of the Charterhouse is vested in its Charity Trustees, who are the Governors. The Royal Governor and the Archiepiscopal Governor have no management responsibilities and are not Charity Trustees. Each Governor takes a specific interest in the individual welfare of up to three Brothers.
New Governors are appointed by the body of the existing Governors, known as the Assembly, based on their professional experience and their expected contribution towards the furtherance of the objectives of the Charity.
Patrons
The Duke of Norfolk DL
The Bishop of London, the Rt Revd and Rt Hon Dame Sarah Mullally DBE Michael Cassidy CBE
The Most Honourable The Marquess of Salisbury KCVO PC DL
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Annual Report to 31st March 2023
A Brief History of the Charterhouse
Living the nation’s history since 1348
Over its long history, the Charterhouse has witnessed many of the events that have shaped our nation. The story begins in 1348 during the Black Death, when the land was used as a burial ground for victims of plague. In 1371 a Carthusian monastery was built on the site which flourished with a Prior and 24 monks accommodated in two-storey houses arranged around a characteristically large cloister garth, and the church built alongside the burial ground became the priory church.
In 1535, the monks refused to align themselves with Henry VIII’s Act of Supremacy and some were executed at Tyburn in a most brutal way. The monastery was suppressed in 1538 and passed to the Crown. Subsequently it was granted to Sir Edward North, who constructed a fine Tudor mansion which was later sold in 1564 to the fourth Duke of Norfolk, who further embellished it. Elizabeth I convened the Privy Council in the Great Chamber in the
Johannes Kip’s perspective view of the Charterhouse, originally drawn c.1688-1694. Master’s Court, Wash-house Court, Chapel Court, the Chapel, and the Queen’s Walk all remain recognisable.
In 1611 Thomas Sutton bought the Charterhouse and established the foundation that now bears his name.
days before her coronation in 1558 and James I used the Great Chamber to create 130 new Barons before he was crowned. Today this glorious Chamber is available for private hire.
In 1611 Thomas Sutton bought the Charterhouse and established the foundation that now bears his name.
Sutton was said to be the wealthiest commoner in England. He had held the post of Master of the Ordnance in the Northern Parts from 1568 to 1594 and his involvement in the coal trade, advantageous property dealings and money lending had allowed him to amass a considerable fortune. Thomas Sutton’s will provided for up to 80 ‘either decrepit or old captaynes either at sea or at land, maimed or disabled soldiers, merchants fallen on hard times, those ruined by shipwreck or other calamity and 40 poor scholars’. James I retained his connection with the Charterhouse, becoming the first Royal Governor, a tradition with continues to link the reigning monarch to the Charterhouse to this day. Wellington, Gladstone and Cromwell have all been Governors.
The Charterhouse has a thriving learning programme, with school groups enjoying workshops that complement the Key Stages of the National Curriculum.
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Annual Report to 31st March 2023
A New Strategy for the Charterhouse
In the autumn of 2022, the Charterhouse launched a new strategy, both to reaffirm our historic charitable purpose and to inform our future master-planning. At our core, the Charterhouse remains sensitive to our founder’s original mission in caring for a community of older people, our Brothers, as well as to support education by the provision of financial support to Charterhouse School.
From the foundations that Thomas Sutton established in 1611, has grown a charity with significant assets. These include our important site in Clerkenwell containing many Grade I and II Listed buildings, a diverse investment portfolio, property assets, a thriving venue hire business, a CQC registered care home, our collections of fine art, and a growing offer as a publicly accessible heritage attraction.
In the twenty-first century, the stewardship of such a multi-faceted operation requires considerable
Our staff interact daily with our Brothers (the traditional name for our almshouse residents), regardless of their professional roles, adding a unique community atmosphere to the charity.
professional expertise. In April 2022, a new Chief Executive and Master, Peter Aiers, was appointed. In the course of his first 12 months, a new strategy has been shaped and refined to enable clarity of mission and
purpose while respecting the charity’s historic legacy, and more importantly to define a long-term strategic aim that informs all elements of the Charterhouse’s work and operations.
Commercial venue hire is an important element of the Charterhouse’s income-generating activities, and it also brings a contemporary dynamism to our historic estate.
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Charterhouse Annual Reportto 31st March 2023 A New Strategy for the Charterhouse coAtirtued THE CHARTERHOUSE PURPOSE To care for a community of Brothers in the historic location of the Charterhouse and support education A COMMUNITY OF EXCELLENCE FOR THE CARE OF OLDER PEOPLE U Community Garden c£ Clinical support Wellbeing Attivity Historic building cn conservation Z Carbon < footprintlsite efficiency Building adaption Fundraising Location History FINANCIAL RESILIENCE ESTATE MANAGEMENT EQUITY. DIVERSITY & INCLUSION Crellting Community oAExc£llenc£forthe CoreofOld£rP£ople
Annual Report to 31st March 2023
Creating a Community of Excellence for the Care of Older People
In defining the overarching charitable aim, each element of the Charterhouse’s work is aligned in support of a unified purpose. Decision-making and strategic planning are progressively more integrated by taking an holistic approach, as the priorities of each strand of the charity’s work are reconsidered through a clearly articulated long-term objective.
Our overall aim - to create a community of excellence for the care of older people - is supported through pillars of place, care, and sustainability. Specifically, we seek to celebrate the importance and uniqueness of our location and heritage, to place care at the heart of all that we do, and to build a resilient way of working that is both economically and environmentally sustainable. In shaping our work through these pillars of place, care, and sustainability, our historic home in Clerkenwell is being developed to be fit for purpose for decades to come.
The realisation of our charitable aim hinges on financial resilience. We are fortunate that Thomas Sutton’s historic legacy provides a solid foundation, which through careful stewardship continues to support day-to-day operations. However, our plans are ambitious and the required long-term capital programme to transform our historic estate, will only be possible through major fundraising initiatives and increased income from the development of our commercial operations.
Responsible estate management underpins all our work. Our future strategy is growing expertise, capacity and financial resource to ensure that our historic buildings are conserved and restored where necessary, and adapted sensitively for the use of our community. For commercial purposes,
The health and wellbeing of our community of older people, is central to our plans for the future development of the charity.
the maintenance and development of our heritage estate is approached with a deeper understanding of our responsibility as custodians of these historic buildings.
areas in order to build resilience and professional expertise.
Most importantly, increasing consultation and engagement with our internal community is fostering a greater sense of trust and collaboration, ensuring that our residents feel confident and safe in our care.
As these overarching goals are achieved and embedded, the Charterhouse is being reinvigorated for the twenty-first century. The four-hundred-year legacy of Thomas Sutton’s original gift means that the long view can be taken. While our immediate plans span the next three to five years, we are also laying new foundations for the next four hundred.
Much work has already taken place. In the past year, a quinquennial inspection of our historic estate has been completed, which provides a better understanding of the condition of our historic buildings. A business review of Carthusia, our commercial trading arm, has been carried out and our operations have been adjusted accordingly. Our venue hire business is being reshaped to reposition the Charterhouse as a high-end location for events and as a compelling offer for filming – in recognition and acknowledgement of its exceptional spaces and position in central London. Our staffing is being enhanced in key
Thomas Sutton’s original legacy continues to inform the Charterhouse’s mission, in the care of older people on its historic site in Clerkenwell.
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Annual Report to 31st March 2023
Creating a Community of Excellence for the continued Care of Older People
Place
The location of the Charterhouse in central London, on the fringe of the City, is critical to its identity. The charity’s founder, Thomas Sutton, selected the site when his wealth and position could have offered numerous alternatives, and the Charterhouse continues to occupy many buildings that Sutton would still recognise.
While such historic structures do not lend themselves easily to their current primary purpose as a home for older people, we are committed to remaining at our historic site in Clerkenwell. The important sense of place – metropolitan, on the doorstep of a global city – and tranquil, behind high walls and sitting within seven acres of restful gardens, means that the Charterhouse is perhaps unique in the environment that it provides for its community. Our almshouse residents have available to them the many exciting diversions expected
of an international capital, yet simultaneously the Charterhouse offers a place of retreat and calm.
Our integrated approach to the management of the charity’s assets celebrates the location and historic estate, recognising its significance to the health and wellbeing of our community, and to the potential for commercial growth and increased public engagement and awareness. It is a nuanced and subtle balance in remaining sensitive to the needs and privacy of our own community, for whom the Charterhouse is home, and in capitalising on the Charterhouse’s enviable setting for income generation in support of the charity’s finances.
The rhythm of the Charterhouse day provides a structure and discipline around which our community revolves. Our daily chapel services are open to all, as is our museum, and our commitment to inclusion and access is being further embedded through
Our public programme of annual events includes Open Garden evenings, when the public can enjoy our special spaces with the accompaniment of live music, food and drink.
An important date in the Charterhouse calendar, the Martyrs’ Day service on 4th May invites all our community and guests to commemorate the martyrdom of the Carthusian monks who occupied the site until the Dissolution of the Monasteries.
ongoing community engagement activities including reduced rate guided tours for local residents, and sensory visits for those with recognised access needs. More recently, a “Warm Space” initiative has been established by our own almshouse residents, keen to share their unique and special home with others.
Motivated by the cost-of-living crisis and its impact, the Charterhouse has established a regular “warm space” initiative each Friday, welcoming all to enjoy our spaces and sense of community.
This “genius loci” or spirit of place permeates the Charterhouse.
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Annual Report to 31st March 2023
Creating a Community of Excellence for the continued Care of Older People
Care
Care is central to our strategy. The Charterhouse is focusing its attention on how it can adapt its resources and integrate its operations most effectively, in order to deliver longterm care for an ageing population. While people are living longer, as they age they are developing increasingly complex health needs. With forty residents, the youngest of whom is 60, the oldest of whom is approaching 100, we are a microcosm of our ageing population. The Charterhouse must anticipate and plan for the impact of changing health conditions on our own community, how we may address them within the confines of our immediate charitable mission, and what opportunities there are for expanding our offer beyond the Charterhouse walls.
Our CQC Registered Care Home is rated as “Good”, our Health & Wellbeing team has been reviewed and roles have been updated to best serve the needs of our community.
The Charterhouse provides a constant in later life for many of our residents. On entering the Charterhouse in their early 60s, it can be the most permanent home that many have had, with some residents having lived here approaching 40 years.
Shared meals are an important part of the rhythm of the Charterhouse day. Our Chefs have a genuine care and concern for our residents, and work collaboratively with them on menu development.
We are planning for the long-term, both in terms of the care that we provide, and the physical environment in which we provide it. Our aspiration is to be a leader in the field of Older People Care, and we are building the expertise and capacity to do so.
reviewed and updated to ensure that it is both inclusive and rigorous, to the domiciliary care that is provided to Brothers so that they may remain independent for longer, through to the varied activities that are offered to encourage community engagement and an active lifestyle, we continue to place care at our heart.
Our community engagement programme, developed within the framework of our museum and learning offer, is refocusing on work with communities of interest that complement our own – including older people with health conditions such as dementia, and those locally who are isolated. In addition, our capital programme is being planned with greater integration so that all elements of the Charterhouse’s operations – from venue hire, to commercial property management, care of historic buildings, and accessibility for older people – are all considered when approaching future building use and development.
We are building an increasingly robust approach to promote long life and independence. From the initial application process, which has been
Shared social events when staff, residents and tenants can enjoy each others’ company are a vital part of our community ethos.
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Annual Report to 31st March 2023
Creating a Community of Excellence for the continued Care of Older People
Sustainability
The future conservation and adaptation of the Charterhouse’s historic estate presents both challenge and opportunity. Following the Second World War, the damage sustained during the Blitz gave the architects Seely & Pagett, the chance to reorder the buildings and to introduce then current interventions that enabled modern living. However, more than seventy years later their work is also ageing and elements that were new in 1958 are now reaching the end of their life.
A conservation philosophy is therefore being developed, which is considering the many elements of the charity’s work: our primary purpose as a home for older people, our role as a public heritage site, and the possibilities for our commercial events venue. Such considerations of use are set against the need to adapt to changing environmental conditions, and the limitations in buildings that were not designed to cope with the impact of climate change.
Financial resilience is essential in addressing such contemporary concerns. Thomas Sutton’s 1611 legacy continues to provide a solid financial foundation, which through prudent management and stewardship, ensures that the charity’s core costs are covered. However, such extensive future plans for the physical development of our historic estate require significant financial resource.
Increased professional expertise in all areas of our staffing ensures that opportunities for income generation from our charitable assets are optimised, while remaining sensitive to our primary charitable purpose in the care of older people. In addition, our proposition to potential funders is being reviewed and reshaped, in parallel with our developing estates masterplan to build a compelling case for support.
Our plans for building conservation, repair, and adaptation are ambitious. They hinge on a strategically phased capital fundraising programme and resilient business model, both of
which will be developed further in 2023, in anticipation of largescale externally funded capital improvement work on the buildings beginning in 2024/25.
The Charterhouse suffered extensive damage in 1941 as a result of Second World War incendiary bombing. The 1950s restoration removed many 19th and early 20th century additions.
Highly atmospheric, the Norfolk Cloister encompasses numerous issues that affect the Charterhouse’s historic fabric – uneven floors, a lack of adequate heating, and poor thermal control from single glazing.
The restoration works completed on the Charterhouse in 1958, by the architects Seely & Pagett, were comprehensive and included many adaptations that modernised the buildings significantly. These works are now nearing the end of their life and the buildings will shortly begin a new phase of development for 21st century use.
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Structure, Governance and Management
Objects of the Charity
The “beneficiaries” of the charity are defined as single persons (who can be widows, widowers, or unmarried) of good character who are in need of assistance and who, unless the Governors otherwise decide in any individual case:
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a. are not fewer than 60 years of age; and
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b. are, or have been, officers in any of the armed forces of the Crown, clergy, merchants, or persons engaged in public service or in trading, professional, agricultural or other similar occupations.
The objects of the charity are:
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a. the relief of beneficiaries by the provision of accommodation and care or in such other ways as the Governors think fit; and
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b. the advancement of education by the provision of financial support to Charterhouse School.
Our Relationship with Charterhouse School
In 1872, Charterhouse School departed the site in Clerkenwell although both school and almshouse continue to enjoy a close association. Representative ‘observers’ sit on each Governing Board, and an annual provision of financial support to Charterhouse School is delivered based on an agreed historical calculation, the contribution being used to provide student bursaries. The school and the almshouse maintain a relationship through hosting regular shared events including an annual Founder’s Day service in our Chapel, followed by a dinner to honour our founder, Thomas Sutton. In addition, the school hosts our Brothers for an annual visit, and our Governors for regular committee meetings.
Equity, Diversity and Inclusion
The Charterhouse seeks to embed equity, diversity and inclusion and to be a place that champions an EDI agenda. In our community, we oppose and will not tolerate discrimination of any kind. We foster an inclusive body of staff and volunteers, and we welcome applications to join as a Brother from all regardless of race, colour, gender, creed, sexual orientation, or faith. We welcome single people, including those who are widowed or divorced. We are a Living Wage Employer and we are committed to promoting equity and diversity within our employment policies, practices and procedures.
The Charterhouse continues to honour the wishes of its founder, Thomas Sutton, in caring for its community of older people, and in the promotion of the education of young people through the provision of bursaries to Charterhouse School.
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continued Structure, Governance and Management
Charity Constitution
The charity was incorporated by Letters Patent on 22nd June 1611 under the name of “The Hospital of King James founded in Charterhouse” and was confirmed by Act of Parliament in 1628. The latest Order in Parliament relating to its affairs is The Charities (Sutton’s Hospital in Charterhouse) Order 1983 (1983 No 588). On 8th December 2009, the Charity Commission sealed a new Scheme to regulate the affairs of the charity (“the 2009 Scheme”). The Commission has advised the Governors that Parliamentary approval for the 2009 Scheme is not required.
Carthusia Ltd is a wholly owned subsidiary of the Hospital Fund which conducts all non-primary purpose trading activities for the Charterhouse. It operates on an armslength basis from the charity and has a separate board of directors. The share capital of £1 is wholly owned by the Hospital Fund. All profit before tax is Gift-Aided to the Hospital. The accounts of the company for 2023 and 2022 are consolidated within those of the charity.
In order to discharge their functions effectively, the Governors delegate certain aspects of the management of the charity to the committees of the Assembly. The terms of reference of each of these committees
were reviewed and approved by the Assembly in the current year. Trustees are required to disclose all relevant interests and register them with the Clerk to the Governors and in accordance with the Trust’s policy withdraw from decisions where a conflict of interest arises.
Venue hire is now a valuable source of income for Carthusia Limited, the wholly owned subsidiary of the Charterhouse, which conducts non-primary trading activities including commercial events and the public heritage offer.
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Annual Report to 31st March 2023
continued Structure, Governance and Management
Statement of the Governors’ Financial Responsibilities
The Governors, as Trustees, are responsible for preparing the Annual Report and the financial statements, in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the group and the charity and of the incoming resources and application of resources of the group for that period. In preparing these financial statements, the Governors are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities Statement of Recommended Practice;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable United Kingdom accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial
Our Governors are pivotal in providing ultimate oversight of the work of the Charterhouse, in support of our Master & Chief Executive and our Senior Management Team.
a balanced and harmonious community. It is not considered that the activities of the charity give rise to any private benefits other than those which are incidental to the carrying out of the objects.
statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the 2009 Scheme. They are also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Sustainability
The Charterhouse is committed to being environmentally responsible in the way it is run. The key components of the policy are addressing climate change, reducing waste and encouraging biodiversity. The evaluation and operation of the policy and associated procedures is monitored and reviewed by the Senior Management Team, with overview by the Governors, to ensure that they remain effective and appropriate to the activities of the Charterhouse.
Public Benefit
The Governors confirm that they have had regard to the Charity Commission’s published guidance on public benefit and have taken this into account in connection with the charity’s activities. The benefits of the charity’s activities and achievements and their relationship with its objects are described above. It is not considered that those activities give rise to any detriment or harm. In setting the policy for admission of Brothers, the Governors seek to ensure that the opportunity to benefit is extended to those in greatest need of the assistance the charity can provide, at the same time maintaining
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Annual Report to 31st March 2023
continued Structure, Governance and Management
Internal Control and Risk Management
The Charterhouse operates within a control framework appropriate for its size and seeks to ensure that risks are identified, quantified and managed appropriately. There is a comprehensive risk register which is reviewed by the Governors annually. The Charterhouse has also established a number of committees which meet at least twice a year to focus specifically on all sectors in which the Charterhouse operates. The principal risks faced by the Charterhouse are shown below.
Covid-19 Risk The impact of
Covid-19 on our work became very evident. We continue to monitor this risk to ensure that we retain the ability to support our priorities as necessary. These priorities range from employee and tenant support, to operations and public relations, through to internal functions including finance and IT.
Strategic Risk Each year the Charterhouse writes a five-year business plan, as well as preparing rolling forecasts for the year ahead. As part of this process a review is undertaken of long-term trends to assess options for continued and ongoing viability of the Charterhouse operations.
Property Risk The principal property risk is the loss of income. A full review of tenants and sectors is undertaken annually to ensure a well-diversified tenant base and staggered lease expiries and to assess the target of improving the covenant strength and diversification across the Charterhouse portfolio.
Financial Portfolio Risk
The Charterhouse uses independent investment managers to manage the financial portfolio on a day-to-day basis. The portfolio is reviewed regularly during the year to ensure that it remains in line with the risk and return objectives set by the Charterhouse.
When arriving in their 60s, our residents are able to live independently although as they age, their needs can become more complex meaning that our staff and structure must adapt accordingly.
Liquidity Risk The Charterhouse seeks to maintain liquidity within its financial portfolio to satisfy shortterm cash requirements as well as to maintain headroom. Long-term liquidity is reviewed and addressed as part of the five-year business plan process.
Cyber Risk The Charterhouse is acutely aware that our corporate IT systems are at the core of our operations and although secure, could be exposed to criminal cyberattacks. This risk is mitigated by advanced IT safeguards and frequent monitoring.
Reputational Risk The
Charterhouse gives ongoing consideration regarding any of its acts or omissions that could adversely impact the reputation of the Charterhouse or the Governors.
The Charterhouse’s property portfolio includes many of the buildings in Charterhouse Square, the rents for which support the charity’s primary purpose in the care of its older community.
The Governors are responsible for ensuring that an effective system of internal financial controls is maintained and operated by the Charterhouse. The Governors’ review of the system of these controls is informed by comments made by the external auditors in their management letter and other reports.
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Outlined below are both the membership of each committee as at 31 March 2023 and brief highlights of their respective terms of reference:
| Finance and Audit Committee | Finance and Audit Committee | Finance and Audit Committee | Carthusia Board Directors | Carthusia Board Directors |
|---|---|---|---|---|
| Sufina Ahmad | › | To liaise with the external auditors | Peter Aiers | › To consider/approve the annual |
| Bernadette | › | To review risk management issues | Kate McLeod | revenue and capital budgets |
| Cunningham | › | To monitor internal controls | Rebecca Munns | › To monitor implementation of, and |
| Kate McLeod (Chair) Rebecca Munns William Naunton Andrew Ritchie Caroline Rolfe |
› › › |
To ensure compliance with Financial Reporting Standards To oversee all matters of compliance and regulatory reporting To monitor the financial and legal/ constitutional conduct of the Charity and advise the Assembly on financial performance |
Andrew Ritchie (Chair) |
performance against, budgets on a regular basis › To oversee, and ensure compliance with, the Financial Control Policy › To advise Assembly on strategic financial planning including forecasting › To consider and review all relevant risks and liabilities that might arise |
| › | To approve financial terms and conditions for the staff |
› To review the annual accounts ahead of submission to the Finance and Audit |
||
| Committee | ||||
| › | To oversee the management of | |||
| the charity’s investments and | ||||
| monitor income | Hospital Care Committee | |||
| › | To oversee management of | Caroline Abrahams | › To oversee all aspects of the care | |
| investment properties | Caroline Cassels | and welfare of the Brothers | ||
| › | To safeguard the condition of the | (Chair) | › To oversee all aspects of Health | |
| historic buildings of the charity | Dr Michael Harding | and Safety | ||
| › › |
To ensure the buildings are suitable for occupation by the Brothers To implement a short and medium term programme of repairs and maintenance |
Flora Lyon Andrew Ritchie Caroline Rolfe |
› To ensure compliance with procedures and rules of the regulatory agencies responsible for medical and care matters › To oversee HR matters |
|
| Heritage Committee | ||||
| Sub-Estates Committee | Kay Andrews (Chair) | › To advise Governors on the heritage, | ||
| (reporting into the Finance and Audit Committee) | Bernadette | conservation and sustainability of the | ||
| Bernadette | › | To oversee the property aspects of the | Cunningham | site and its contents |
| Cunningham (Chair) William Naunton |
› | Hospital site charity’s affairs To consider/review the annual budgets |
Paddy Pugh Wilf Weeks |
› To have oversight of site development plans |
| Anna Prior Paul Wilkinson |
› | for estates management and property To monitor implementation of, and performance against, budgets on a regular basis |
Paul Wilkinson | › To make recommendations to the Finance and Audit Committee on the allocation of resources for their repair and conservation |
| › | To recommend to the Finance and Audit | |||
| Committee expenditure on any capital | Development Committee | |||
| project | Sufina Ahmad | › To approve Development strategy | ||
| › | To oversee the management of Estates | Flora Lyon | including all Cases for Support | |
| (H&S, maintenance, projects) | Anna Prior | › To approve methods of fundraising | ||
| › | To assess the potential for lowering the carbon footprint and agree a programme for implementation of |
Caroline Rolfe Wilf Weeks (Chair) |
and development › To monitor and support the Friends’ Scheme with a view to growing the |
|
| carbon reduction measures over the site | number of members | |||
| Remuneration Committee | ||||
| (reporting into the Finance and Audit Committee) | ||||
| Caroline Cassels | › | To determine remuneration and benefits | ||
| David Farnsworth | as it applies to all employees | |||
| (Chair) | › | To review the remuneration strategy | ||
| Caroline Rolfe | and policy of the charity periodically | |||
| › | To determine any remuneration and | |||
| benefits for Governors |
Creating a Community of Excellence for the Care of Older People
15
Annual Report to 31st March 2023
Financial Review
Principal Funds
Investment Policy
The charity operates two principal endowment funds, the General Fund and the Hospital Fund. The income of both funds comprises rents from property and dividends and interest from the charity’s other investments. As defined by the 2009 Scheme, the General Fund meets a proportion of the residential costs and the whole of the management and support costs of the charity.
Under the terms of the original Charity Commission Scheme of 1872, the charity continues to support the School by distributing a prescribed amount of its income. The Moiety for the 2022/23 year under the provisions of the 2009 Scheme is £461,000 (2022: £524,000) and this sum is distributed to both Charterhouse School and the Hospital Fund once the accounts have been approved by the Governors and audited.
The Hospital Fund meets the majority of the costs of providing long term residential care for the Brothers, who also make a contribution to the overall care costs. The Hospital Fund also meets 75% of the costs of the repair and maintenance of the charity’s historic buildings.
The charity’s General Fund and Hospital Fund are permanently endowed. The charity is restricted to the annual sum receivable under the Total Return Distribution Policy (see below) to support its operations with no further access to the capital. The investment strategy therefore focuses on the total investment return to provide adequate income over the long term to fund both the operations of the Hospital and financial support to the School, having due regard to the need to protect and enhance the capital value of the endowments. Each of our three Investment Managers is responsible for the management of a proportion of the charity’s financial investments, and manages the investments of the General Fund and the Hospital Fund on a consolidated basis. The Assembly has instructed each Investment Manager to pursue a policy which sets a target for the overall performance of the portfolio; these targets have been established at RPI plus 4% per annum on a rolling five year basis.
There are currently no specific constraints on the Charterhouse portfolio in terms of ethical, social or environmental (ESG) matters but the managers of the portfolio are expected to take ESG issues into consideration when assessing individual investments and actively engage with company management to improve their ESG policies and practices.
Income
Total income of the Unrestricted and Restricted Funds decreased in the year from £5.5m to £5.4m as property income fell slightly following rental corrections in the previous year. The split of income across both years is as follows;
----- Start of picture text -----
2023 2022
(£’000) (£’000)
149 165
1,163
1,290
1,166 1,207
691 609
57 2,244 68
1,997
Donations and legacies Brothers' contributions Trading activities
Other trading activities Property income Dividends and income
----- End of picture text -----
Total expenditure has fallen in the year from £5.6m to £5.4m as new cost efficiences start to take effect.
16
Creating a Community of Excellence for the Care of Older People
Annual Report to 31st March 2023
Property and Financial Investment Portfolios
The property portfolio increased in value by 6.1% (£3.9m) from £60.1m to £64.0m. The financial portfolio, however decreased by 2.3% (£1.0m) from £47.9m to £46.9m. A full internal property valuation was carried out in the year and the changes are as a result of the underlying market movements.
The split by portfolio across both years is as follows;
----- Start of picture text -----
2023 2022
(£’000) (£’000)
46,930 47,934
64,001 60,135
Property
Financial Assets
----- End of picture text -----
The Governors adopted a Total Return Distribution Policy from 26 March 2015 for both the General and Hospital funds. The resolution was approved by the Charity Commission under section 282 of the Charities Act 2011. The policy is based on a transfer of 3% of the 5 year average capital value of the fund, less actual income for the year.
The total return on the listed securities portfolio for the year was -0.7% (2022: +11.7%). This compares to the RPI plus 4% benchmark calculated at 17.5% for the year (2022: 13.0%).
Reserves
| Reserves | ||
|---|---|---|
| 2023 | 2022 | |
| Total | Total | |
| £’000 | £’000 | |
| Endowment Fund – General | 78,981 | 80,843 |
| Endowment Fund – Hospital | 31,544 | 27,410 |
| Restricted Income Fund | 163 | 183 |
| Unrestricted Income Fund | 575 | 425 |
| Designated Fixed Assets | 7,702 | 7,889 |
| 118,965 | 116,750 |
The Governors established a balance of free reserves held in the Unrestricted Income Fund of the Hospital Fund. These are designed to finance working capital requirements and to protect the operations of the charity against any unexpected fluctuations in income and protect the vulnerable beneficiaries. Due to the relative stability and security of income, the Governors have set a target of three month’s expenditure (excluding the Moiety) as the desired level of free reserves. This target currently stands at £1.2m against a free reserves balance of £0.6m. The business plan of the Charterhouse anticipates that this balance will be reached in around three years’ time through normal charitable activities.
Charitable Donations
The charity made no charitable donations during either year outside the scope of its own activities. No donations were made for any political purpose in the current or previous year. That said, the charity has run joint events with other charities, associations and community groups in our space. This is seen as part of the Charterhouse’s Good Neighbour scheme and wider engagement with the community helping to improve the lives and environment within which the charity, its staff and beneficiaries operate.
Approved by the Governors and signed on their behalf by:
Major General Andrew Ritchie CBE Chairman 19 July 2023
Creating a Community of Excellence for the Care of Older People
17
Annual Report to 31st March 2023
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF SUTTON’S HOSPITAL IN CHARTERHOUSE
Opinion
We have audited the financial statements of Sutton’s Hospital in Charterhouse (the ‘parent charity’) for the year ended 31 March 2023 which comprise the Group and Charity Statement of Financial Activities, the Group and Parent Charity Balance Sheets, the Group and Charity Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
In our opinion the financial statements:
Other information
-
give a true and fair view of the state of the group’s and the parent charity’s affairs as at 31 March 2023 and of the group’s incoming resources and application of resources, including its 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 opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement 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.
18
Creating a Community of Excellence for the Care of Older People
Annual Report to 31st March 2023
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
-
the parent charity has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
-
the parent charity’s financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of trustees’ remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charity’s internal control.
Responsibilities of Governors
As explained more fully in the trustees’ responsibilities statement set out on page 12, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group and parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
-
Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Creating a Community of Excellence for the Care of Older People
19
Annual Report to 31st March 2023
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity’s trustees as a body, for our audit work, for this report, or for the opinion we have formed.
Our approach was as follows:
-
We obtained an understanding of the legal and regulatory requirements applicable to the charity and considered that the most significant are [the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council]
-
We obtained an understanding of how the charity complies with these requirements by discussions with management and those charged with governance.
-
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
Statutory Auditor
Date 6th Floor 9 Appold Street London EC2A 2AP
Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.
-
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
-
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
20 Creating a Community of Excellence for the Care of Older People
Annual Report to 31st March 2023
Consolidated Statement of Financial Activities
For the year to 31 March 2023
| For the year to 31 March 2023 | ||||||
|---|---|---|---|---|---|---|
| Unrestricted | Restricted | Endowment | 2023 | 2022 | ||
| Funds | Funds | Funds | Total | Total | ||
| Note | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Income and Endowments from: | ||||||
| Donations and legacies | 116 | 33 | - | 149 | 165 | |
| Charitable Activities | 1,223 | - | - | 1,223 | 1,275 | |
| Other trading activities | 691 | - | - | 691 | 609 | |
| Investment income | 875 | 1,880 | - | 2,755 | 2,869 | |
| Transfer from Capital to Income (TRDP) | 42 | 490 | (532) | - | - | |
| Total Income and Endowments | 2 | 2,947 | 2,403 | (532) | 4,818 | 4,918 |
| Expenditure on raising funds | ||||||
| Investment and property management expenses | 329 | 303 | - | 632 | 630 | |
| Trading activities | 466 | - | - | 466 | 482 | |
| Fundraising | 139 | 130 | - | 269 | 102 | |
| Charitable activities | ||||||
| Infirmary care | 1,282 | 345 | - | 1,627 | 1,713 | |
| Sheltered accommodation | 1,229 | 723 | - | 1,952 | 2,126 | |
| Moiety to Charterhouse School | - | 461 | - | 461 | 524 | |
| Total Expenditure | 3 | 3,445 | 1,962 | - | 5,407 | 5,577 |
| Net income/expenditure before gains on investments | (498) | 441 | (532) | (589) | (659) | |
| (Losses)/gains on financial investments | 7 | - | - | (1,003) | (1,003) | 4,517 |
| Gains/(losses) on freehold property | 7 | - | - | 3,807 | 3,807 | (3,458) |
| Net income/expenditure | (498) | 441 | 2,272 | 2,215 | 400 | |
| Transfer between funds | 461 | (461) | - | - | - | |
| Net movement in funds | (37) | (20) | 2,272 | 2,215 | 400 | |
| Total funds brought forward | 8,314 | 183 | 108,253 | 116,750 | 116,350 | |
| Total funds carried forward | 8,277 | 163 | 110,525 | 118,965 | 116,750 |
Analysis of Restricted Funds and Endowment Funds is included as Note 15.
Creating a Community of Excellence for the Care of Older People
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Annual Report to 31st March 2023
Statement of Financial Activities – Charity Only
For the year to 31 March 2023
| Unrestricted | Restricted | Endowment | 2023 | 2022 | ||
|---|---|---|---|---|---|---|
| Funds | Funds | Funds | Total | Total | ||
| Note | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Income and Endowments from: | ||||||
| Donations and legacies | 341 | 33 | - | 374 | 276 | |
| Charitable activities | 1,223 | - | - | 1,223 | 1,275 | |
| Investment income | 875 | 1,880 | - | 2,755 | 2,869 | |
| Transfer from Capital to Income (TRDP) | 42 | 490 | (532) | - | - | |
| Total Income and Endowments | 2 | 2,481 | 2,403 | (532) | 4,352 | 4,420 |
| Expenditure on raising funds | ||||||
| Investment and property management expenses | 329 | 303 | - | 632 | 630 | |
| Fundraising | 139 | 130 | - | 269 | 102 | |
| Charitable activities | ||||||
| Infirmary care | 1,282 | 345 | - | 1,627 | 1,713 | |
| Sheltered accommodation | 1,229 | 723 | - | 1.952 | 2,126 | |
| Moiety to Charterhouse School | - | 461 | - | 461 | 524 | |
| Total Expenditure | 3 | 2,979 | 1,962 | - | 4,941 | 5,095 |
| Net income/expenditure before gains on investments | (498) | 441 | (532) | (589) | (675) | |
| (Losses)/gains on financial investments | 7 | - | - | (1,003) | (1,003) | 4,517 |
| Gains/(losses) on freehold property | 7 | - | - | 3,807 | 3,807 | (3,458) |
| Net income/expenditure | (498) | 441 | 2,272 | 2,215 | 384 | |
| Transfer between funds | 5 | 461 | (461) | - | - | - |
| Net movement in funds | (37) | (20) | 2,272 | 2,215 | 384 | |
| Total funds brought forward | 8,314 | 183 | 108,253 | 116,750 | 116,366 | |
| Total funds carried forward | 8,277 | 163 | 110,525 | 118,965 | 116,750 |
22
Creating a Community of Excellence for the Care of Older People
Annual Report to 31st March 2023
Consolidated and Charity Balance Sheets
As at 31 March 2023
| As at 31 March 2023 | |||||
|---|---|---|---|---|---|
| Group | Group | Charity | Charity | ||
| 2023 | 2022 | 2023 | 2022 | ||
| Note | £’000 | £’000 | £’000 | £’000 | |
| Assets | |||||
| Fixed Assets | |||||
| Tangible assets | 6 | 7,702 | 7,889 | 7,702 | 7,889 |
| Investment property | 7 | 64,001 | 60,135 | 64,001 | 60,135 |
| Financial assets | 7 | 46,930 | 47,934 | 46,930 | 47,934 |
| Investment in Carthusia Ltd | - | - | - | - | |
| Total fixed assets | 118,633 | 115,958 | 118,633 | 115,958 | |
| Current Assets | |||||
| Debtors | 8 | 417 | 320 | 660 | 540 |
| Cash at bank and in hand | 1,600 | 2,253 | 1,276 | 1,938 | |
| Total current assets | 2,017 | 2,573 | 1,936 | 2,478 | |
| Liabilities | |||||
| Current Liabilities | |||||
| Creditors | 9 | (1,685) | (1,781) | (1,604) | (1,686) |
| Total current liabilities | (1,685) | (1,781) | (1,604) | (1,686) | |
| Net current assets | 332 | 792 | 332 | 792 | |
| Total net assets | 118,965 | 116,750 | 118,965 | 116,750 | |
| The funds of the Charity: | |||||
| Endowment Fund – General | 78,981 | 80,843 | 78,981 | 80,843 | |
| Endowment Fund – Hospital | 31,544 | 27,410 | 31,544 | 27,410 | |
| Restricted fund income | 163 | 183 | 163 | 332 | |
| Unrestricted Income Fund | 575 | 425 | 575 | 276 | |
| Designated tangible fixed assets | 7,702 | 7,889 | 7,702 | 7,889 | |
| Total funds | 118,965 | 116,750 | 118,965 | 116,750 |
Approved by the Governors and signed on their behalf by:
Major General Andrew Ritchie CBE Chairman 19 July 2023
Creating a Community of Excellence for the Care of Older People
23
Annual Report to 31st March 2023
Consolidated Cash Flow Statement
For the year to 31 March 2023
| For the year to 31 March 2023 | |||
|---|---|---|---|
| Year ended | Year ended | ||
| 31 March 2023 | 31 March 2022 | ||
| Note | £’000 | £’000 | |
| Cash outflow from Operating Activities | (a) | (3,195) | (2,983) |
| Cash flows from investing activities | |||
| Investments purchased | (4,644) | (4,696) | |
| Movement in cash held as investment | - | 869 | |
| Addition of fixed assets | (128) | (550) | |
| Proceeds from disposal of investments | 4,618 | 3,827 | |
| Property additions | (59) | - | |
| Investment income | 2,755 | 2,869 | |
| Net cash inflows from investing activities | 2,569 | 2,319 | |
| Net cash outflow for the year | (b) | (653) | (664) |
Notes to Cash flow statement
(a) Reconciliation of net incoming resources to net cash outflow from operating activities
| Gain for the year (per statement of financial activities) | 2,215 | 400 |
|---|---|---|
| Less: investment income received | (2,755) | (2,869) |
| Operating result | (540) | (2,469) |
| Depreciation | 315 | 357 |
| Decrease in stock | - | 20 |
| (Profit)/loss on revaluation of investments | 1,030 | (4,517) |
| (Profit)/loss on revaluation of freehold property | (3,807) | 3,458 |
| (Increase)/decrease in debtors | (97) | 30 |
| Decrease/(increase) in balance due to Charterhouse School | (63) | 77 |
| Increase in creditors | (33) | 61 |
| Net cash from operating activities | (3,195) | (2,983) |
| (b) Movement in Bank and Deposit balances | ||
| Balance at beginning of year | 2,253 | 2,917 |
| Balance at end of year | 1,600 | 2,253 |
| Net cash outflow for the year | (653) | (664) |
24
Creating a Community of Excellence for the Care of Older People
Annual Report to 31st March 2023
Notes to the accounts
For the year to 31 March 2023
1 Accounting policies
- (a) Basis of accounting
The accounts are prepared under the historical cost accounting rules, modified by the valuation of investment property and listed securities, and in accordance with applicable United Kingdom accounting standards.
The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.
The accounts have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Charity constitutes a public benefit entity as defined by FRS 102.
The accounts are presented in sterling which is also the functional currency of the charity. The amounts are presented to the nearest £1,000.
The accounts have been prepared to a period end date of 31st March.
- (b) Going concern
The charity’s activities, its current financial position and factors likely to affect its future development are set out in the Report of the Governors. On this basis the Board has a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in the financial statements.
The Charterhouse has reliable income streams from property rentals, investment dividends and providing residential services. Post year-end property rentals remain steady and the cash position remains strong, therefore, the Governors consider that there are no material uncertainties in adopting the going concern basis of accounting.
- (c) Investments and cash balances
Investments in securities are shown at bid-market value. Freehold property investments are shown at their year-end market value. Any realised or unrealised gains or losses are included in the Consolidated Statement of Financial Activities in the year in which they occur. Investments include cash held by investment managers. Other cash balances, not held for working capital requirements, are held on deposit.
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25
Annual Report to 31st March 2023
Notes to the accounts (continued)
For the year to 31 March 2023
1 Accounting policies continued
(d) Tangible Fixed Assets
The original 1611 purchase price of the Hospital and the site has been included at a cost of £13,000 and fully depreciated.
No cost or value is attributed to historic items such as artwork and silverware donated to the charity because no reliable cost or value can be determined. The original costs of these assets are not known and no value has been placed upon them. The Governors consider that the cost of obtaining a value for these assets outweighs the benefit of being able to disclose a value. The insurance valuation is not considered to be a true indicator of the value of the artefacts to the charity.
Improvement works of a capital nature carried out on the hospital buildings are capitalised and depreciated over their estimated useful lives normally set at 50 years. Major refurbishments completed during the year are capitalised at the year-end and depreciated from the start of the new financial year. The lower limit for capitalisation of building costs is £50,000.
No depreciation is provided on investment properties.
Other tangible fixed assets are capitalised at their estimated depreciated replacement cost or historic cost on acquisition. Depreciation rates are as follows;
Fixtures and fittings 5- 15 years straight line Plant, Machinery and Equipment 5 - 25 years straight line
Minor additions costing less than £5,000 are expensed in the year in which the cost in incurred.
The cost of sundry office equipment and fixtures and fittings used in the administration of the charity is considered immaterial and written off on acquisition. The cost of these assets is not available and such items are generally dealt with on a replacement basis.
- (e) Funds
The charity maintains two endowment funds, the General Fund and the Hospital Fund, the capital of which is not available to be spent. Income arising on the General Fund may only be spent as specified in the 2009 Scheme, whereas Hospital Fund income is unrestricted. Designated funds represent amounts set aside by the Governors for specific purposes. The restricted funds represent funds received for specific projects in accordance with the donors’ wishes.
- (f) Group Financial Statements
These financial statements consolidate the results of the charity and its wholly-owned subsidiary company Carthusia Limited on a line by line basis. A separate detailed Statement of Financial Activities is presented for the charity with the turnover and resources expended for Carthusia Limited in the consolidated Statement of Financial Activities replaced in the charity’s Statement of Financial Activities by the amount of the Gift Aid income payable to the charity by Carthusia Limited.
- (g) Incoming Resources
Income from the charity’s investment and property portfolio, Brothers’ Contributions and other income are all accounted for on an accruals basis. Donations received for the general purposes of the Hospital Fund are credited to unrestricted funds, and those that are subject to the specific wishes of donors credited to the relevant fund.
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Creating a Community of Excellence for the Care of Older People
Annual Report to 31st March 2023
Donations raised by specific fundraising for the Charterhouse Fund, and unrestricted legacies, are included in full on a receivable basis, and allocated to that fund.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a 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 reliably and the charity has been notified of the executor’s intention to make a distribution.
Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
- (h) Resources Expended
Resources expended are included in the Consolidated Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered. Liabilities are recognised when there is a legal or constructive obligation committing the charity to the expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Charitable expenditure comprises of costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly and those costs of an indirect nature apportioned on an appropriate basis.
In accordance with the 2009 Scheme, the Hospital’s repairs and maintenance expenditure is apportioned between the General Fund and the Hospital Branch Fund in the ratio of 25:75. These are apportioned across all operations of the charity.
Costs of raising funds include investment expenses and management fees, including fees charged for revaluations and disposals, are charged directly against the capital of the respective funds. These fees can be specifically identified by reference to the investments held by each respective fund.
- (i) The Moiety
In accordance with the 2009 scheme, the Moiety transfer represents the transfer of half of the General Restricted Income Fund surplus to Charterhouse School and half to the Hospital Unrestricted Income Fund.
- (j) Governance
Governance costs represent the costs associated with the constitutional and statutory requirements of the charity. These include costs relating to statutory audit and legal fees, together with apportionment of management costs and related overheads.
(k) Pension Costs
The charity established and makes contributions to a defined contribution scheme for those staff who elected to become members. With effect from July 2014 and following new pension legislation the charity auto enrolled and made contributions to all staff that had not previously elected into a new defined contribution scheme. The assets of both schemes are held separately in an independently administered fund.
- (l) Total Return Investment Policy
The Governors adopted a Total Return Distribution policy in 2015 for both the General and Hospital Funds. The policy is based on a transfer of 3% of the 5 year average capital value of the fund, less the actual income for the year.
Creating a Community of Excellence for the Care of Older People
27
Annual Report to 31st March 2023
Notes to the accounts (continued)
For the year to 31 March 2023
- 1 Accounting policies continued
(m) Financial Instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 in full to all of its financial instruments.
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument and are offset only when the charity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
- (n) Financial assets
Trade, group investment income & rent recoverable and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.
- (o) Financial liabilities
Financial instruments are classified as liabilities according to the substance of the contractual arrangements entered into.
- (p) Critical Accounting Estimates and Areas of Judgement
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are the valuations attributable to the charity’s investment holdings in its stocks and shares and property portfolios and the return from these that will determine the amount of income that can be taken into account under the charity’s total return investment policy.
In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the charity as lessee, or the lessee, where the charity is a lessor.
(q) Apportionment of costs
The Governors approve annually formulae to apportion support costs over all the activities of the charity. The criteria for apportioning support and governance costs to charitable activities continue to be as follows:
-
1 Management staff costs, and related overheads, are apportioned across all the operations of the charity on a time spent basis.
-
2 Other costs which cover both Infirmary and the provision of sheltered accommodation are apportioned in the ratio of rooms available in the Infirmary and other rooms.
28
Creating a Community of Excellence for the Care of Older People
Annual Report to 31st March 2023
2 Income and Endowments
| Generated funds | Generated funds | Charitable Activities | Charitable Activities | |||||
|---|---|---|---|---|---|---|---|---|
| Infirmary | Sheltered | Restricted | ||||||
| Investment | Fundraising | Trading | care | accommod. | Funds | 2023 | 2022 | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Donations and Legacies | ||||||||
| Donations and Legacies | - | 116 | - | - | - | 33 | 149 | 165 |
| Charitable Activities | ||||||||
| Brothers Contributions | - | - | - | 59 | 687 | - | 746 | 663 |
| Infirmary Contributions | - | - | - | 420 | - | - | 420 | 544 |
| Other Charitable Income | - | - | - | - | 57 | - | 57 | 68 |
| Total Charitable Activities | - | - | - | 479 | 744 | - | 1,223 | 1,275 |
| Other Trading Activities | ||||||||
| Carthusia Trading Income | - | - | 691 | - | - | - | 691 | 609 |
| Investment Income | ||||||||
| Property Rentals | 1,997 | - | - | - | - | - | 1,997 | 2,244 |
| Financial Portfolio income | 758 | - | - | - | - | - | 758 | 625 |
| Total Investment Income | 2,755 | - | - | - | - | - | 2,755 | 2,869 |
| Total Income (Consolidated) | 2,755 | 116 | 691 | 479 | 744 | 33 | 4,818 | 4,918 |
| Less: Turnover of Carthusia | - | - | (691) | - | - | - | (691) | (609) |
| Plus: Carthusia donation | - | - | 225 | - | - | - | 225 | 111 |
| Total Income (Charity only) | 2,755 | 116 | 225 | 479 | 744 | 33 | 4,352 | 4,420 |
No government grant income was received in the year (2022: £14,000).
| Generated funds | Generated funds | Charitable Activities | Charitable Activities | Charitable Activities | |||||
|---|---|---|---|---|---|---|---|---|---|
| Infirmary | Sheltered | Restricted | |||||||
| Investment | Fundraising | Trading | care | accommod. | Funds | 2022 | 2021 | ||
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | ||
| Donations and Legacies | |||||||||
| Donations and Legacies | - | 71 | - | - | - | 94 | 165 | 479 | |
| Charitable Activities | |||||||||
| Brothers Contributions | - | - | - | 22 | 641 | - | 663 | 751 | |
| Infirmary Contributions | - | - | - | 544 | - | 544 | 455 | ||
| Other Charitable Income | - | 68 | - | - | 68 | ||||
| Total Charitable Activities | - | 68 | - | 22 | 1,185 | - | 1,275 | 1,206 | |
| Other Trading Activities | |||||||||
| Carthusia Trading Income | - | - | 544 | - | - | 65 | 609 | 203 | |
| Investment Income | |||||||||
| Property Rentals | 2,244 | - | - | - | - | - | 2,244 | 2,000 | |
| Financial Portfolio income | 625 | - | - | - | - | - | 625 | 583 | |
| Total Investment Income | 2,869 | - | - | - | - | - | 2,869 | 2,583 | |
| Total Income (Consolidated) | 2,869 | 139 | 544 | 22 | 1,185 | 159 | 4,918 | 4,471 | |
| Less: Turnover of Carthusia | - | - | (544) | - | - | (65) | (609) | (203) | |
| Plus: Carthusia donation | - | - | 111 | - | - | - | 111 | - | |
| Total Income (Charity only) | 2,869 | 139 | 111 | 22 | 1,185 | 94 | 4,420 | 4,268 |
Creating a Community of Excellence for the Care of Older People
29
Annual Report to 31st March 2023
Notes to the accounts (continued)
For the year to 31 March 2023
3 Resources expended
| 3 Resources expended | ||||||||
|---|---|---|---|---|---|---|---|---|
| Costs | of generating | funds | Charitable Activities | |||||
| Infirmary | Sheltered | Restated* | ||||||
| Investment | Fundraising | Trading | Care | accommod. | Support | 2023 | 2022 | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Staff and Welfare Costs | 121 | 9 |
222 |
547 | 117 |
1,487 | 2,503 | 2,276 |
| Agency Costs | - | - |
12 |
172 | - |
56 | 240 | 167 |
| Audit Fees | - | - |
- |
- | - |
36 | 36 | 36 |
| Legal Fees | 136 | - |
- |
- | - |
9 | 145 | 154 |
| Professional Fees | 73 | 8 |
17 |
- | - |
64 | 162 | 365 |
| Repairs & Maintenance | 52 | 52 |
12 |
5 | 1 |
150 | 272 | 481 |
| Premises Costs | 71 | - |
30 |
- | - |
254 | 355 | 416 |
| Catering Costs | - | - |
84 |
1 | - |
145 | 230 | 256 |
| Upkeep Costs | 24 | - |
- |
19 | - |
251 | 294 | 211 |
| General Overhead Costs | 2 | - |
2 |
3 | - |
134 | 141 | 148 |
| Depreciation | - | - |
- |
- | - |
315 | 315 | 357 |
| Other | (42) | 6 | 87 |
16 | 23 |
163 | 253 | 188 |
| 437 | 75 |
466 |
763 | 141 |
3,064 | 4,946 | 5,053 | |
| Reallocation of support costs | 195 | 194 | - | 864 | 1,811 | (3,064) | - | - |
| 632 | 269 |
466 | 1,627 | 1,952 | - | 4,946 | 5,053 | |
| Moeity to School | 461 | 524 | ||||||
| Total Expenditure (Consolidated) | 5,407 | 5,577 | ||||||
| Less: Carthusia trading costs | (466) | (482) | ||||||
| Total Expenditure (Charity only) | 4,941 | 5,095 |
*This note has been restated to include govenance costs within support costs.
| Costs of generating funds | Costs of generating funds | Charitable | Activities | ||||
|---|---|---|---|---|---|---|---|
| Investment and | Fundraising | Sheltered | Restricted | ||||
| other Income | Activities | Infirmary care | accommod. | Funds | 2022 | 2021 | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Property related costs | 576 | - | - | - |
- | 576 | 460 |
| Carthusia Trading costs | - | 379 | - | - |
103 | 482 | 219 |
| Salaries and Pensions | 138 | 193 | 740 | 212 | - | 1,283 | 840 |
| Infirmary Service costs | - | - | 192 | 30 | - | 222 | 742 |
| Catering | - | - | 182 | 189 | - | 371 | 253 |
| Repairs and Maintenance | - | - | 14 | 223 | 84 | 321 | 345 |
| Security | 32 | - | 49 | 81 | - | 162 | 130 |
| Household and general | 9 | - | 338 | 549 | - | 896 | 835 |
| Development office costs | - | 42 | - | - |
- | 42 | 93 |
| Audit | 3 | 3 | 8 | 15 | - | 29 | 26 |
| Other professional charges | 17 | 31 | 42 | 82 | - | 172 | 128 |
| Depreciation | - | - | 36 | 321 | - | 357 | 368 |
| Irrecoverable VAT | - | - | 21 | 50 | - | 71 | 98 |
| 775 | 648 | 1,622 | 1,752 | 187 | 4,984 | 4,537 | |
| Moeity to School | 524 | 448 | |||||
| Pensions in payment | 69 | 66 | |||||
| Total Expenditure (Consolidated) | 5,577 | 5,051 | |||||
| Less: Carthusia trading costs | (482) | (219) | |||||
| Total Expenditure (Charity only) | 5,095 | 4,832 |
30
Creating a Community of Excellence for the Care of Older People
Annual Report to 31st March 2023
4 Staff costs
| 2023 | 2022 | |
|---|---|---|
| £’000 | £’000 | |
| Wages and salaries | 2,137 | 1,955 |
| Employer’s Social Security costs | 213 | 187 |
| Pension contributions | 82 | 106 |
| Redundancy costs | 13 | 41 |
| Agency costs | 240 | 192 |
| 2,685 | 2,481 |
The costs of staff employed in the Infirmary, repairs and maintenance and catering are shown in Note 3 under their respective departmental costs.
The average head count during the year was 75 (2022: 75).
Employees receiving total remuneration including taxable benefits in excess of £60,000:
| 2023 | 2022 | |
|---|---|---|
| Total remuneration including taxable benefits | No. | No. |
| £60,000 – £70,000 | 3 | 3 |
| £70,001 – £80,000 | 1 | 1 |
| £80,001 – £90,000 | 1 | - |
| £90,001 – £100,000 | 1 | 1 |
Governors do not receive any remuneration for their services, 2023: Nil (2022: Nil). Governors were reimbursed for expenses for travel totalling £Nil (2022: £Nil).
The remuneration of key management personnel, including employer’s National Insurance, was £432,000 (2022: £452,000)
5 Transfers
In accordance with the 2009 Scheme, the Moiety transfer represents the transfer of half of the General Restricted Income Fund surplus to the Hospital Unrestricted Income Fund.
The Governors adopted a Total Return Distribution policy in 2015 for both the General and Hospital Funds. The policy is based on a transfer of 3% of the 5-year average capital value of the fund, less the actual income for the year. This brought £532,000 (General Fund £490,000, Hospital Fund £42,000) (2022: £538,000 (General Fund £497,000, Hospital Fund £41,000)) from capital as income. The amounts are included as investment income.
An amount of £193,000 has been transferred from restricted income funds to match capital expenditure in the year.
Creating a Community of Excellence for the Care of Older People
31
Annual Report to 31st March 2023
Notes to the accounts (continued)
For the year to 31 March 2023
6 Tangible Assets Charity and Group
| 6 Tangible Assets Charity and Group | ||||
|---|---|---|---|---|
| Plant, | ||||
| Furniture and | Machinery and | |||
| Buildings | Fixtures | Equipment | Total | |
| £’000 | £’000 | £’000 | £’000 | |
| Cost or valuation | ||||
| Balance at 31 March 2022 | 10,033 | 960 | 592 | 11,586 |
| Additions | - | 128 | - | 128 |
| Balance as 31 March 2023 | 10,033 | 1,088 | 592 | 11,714 |
| Accumulated depreciation | ||||
| Balance at 31 March 2022 | 2,932 | 723 | 41 | 3,697 |
| Charge for the period | 202 | 85 | 28 | 315 |
| Balance at 31 March 2023 | 3,134 | 808 | 69 | 4,012 |
| Net book value 31 March 2023 | 6,899 | 280 | 523 | 7,702 |
| Net book value 31 March 2022 | 7,100 | 237 | 552 | 7,889 |
7 Fixed Assets Investments Charity and Group
| 7 Fixed Assets Investments Charity and Group | ||||
|---|---|---|---|---|
| Investment | Capital | |||
| Freehold | Financial | |||
| property | Assets | 2023 | 2022 | |
| £’000 | £’000 | £’000 | £’000 | |
| Market value at start of period | 60,135 | 47,396 | 107,531 | 105,603 |
| Purchases | 59 | 4,644 | 4,703 | 4,696 |
| Disposals | - | (4,618) | (4,618) | (3,827) |
| Change in fair value | 3,807 | (1,003) | 2,804 | 1,059 |
| 64,001 | 46,419 | 110,420 | 107,531 | |
| Cash held by investment managers | - | 511 | 511 | 538 |
| Total | 64,001 | 46,930 | 110,931 | 108,069 |
As at 31 March 2023, a full valuation of the Investment property portfolio was undertaken internally.
The Capital Financial Assets are managed by Newton Investment Management Ltd, Waverton Investment Management Ltd and Troy Asset Management Ltd.
32
Creating a Community of Excellence for the Care of Older People
Annual Report to 31st March 2023
8 Debtors
| 8 Debtors | ||||
|---|---|---|---|---|
| Group | Group | Charity | Charity | |
| 2023 | 2022 | 2023 | 2022 | |
| £’000 | £’000 | £’000 | £’000 | |
| Investment income and rents receivable | 160 | 87 | 160 | 87 |
| Due from Carthusia Limited | - | - | 257 | 246 |
| Other debtors | 124 | 106 | 112 | 80 |
| Prepayments | 133 | 127 | 131 | 127 |
| 417 | 320 | 660 | 540 |
9 Creditors
| 9 Creditors | ||||
|---|---|---|---|---|
| Group | Group | Charity | Charity | |
| 2023 | 2022 | 2023 | 2022 | |
| £’000 | £’000 | £’000 | £’000 | |
| Taxation and social security | 142 | 90 | 138 | 87 |
| Income in advance | 743 | 720 | 688 | 349 |
| Trade creditors | 169 | 114 | 156 | 107 |
| Moeity to Charterhouse School | 461 | 524 | 461 | 524 |
| Other creditors and accruals | 170 | 333 | 161 | 619 |
| 1,685 | 1,781 | 1,604 | 1,686 |
10 Analysis of assets between funds (Group)
| General Fund | Hospital Branch | Fund | |||||
|---|---|---|---|---|---|---|---|
| Designated | |||||||
| Unrestricted | Restricted | tangible fixed | |||||
| Endowment | Income Fund | Fund | assets fund | Endowment | 2023 | 2022 | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Investment freehold property | 37,093 | - | - | - | 26,908 | 64,001 | 60,135 |
| Other investments (unlisted, listed | |||||||
| and bonds) | 43,096 | - | - | - | 3,834 | 46,930 | 47,934 |
| Tangible assets | - | - | - | 7,702 | - | 7,702 | 7,889 |
| Cash at bank and in hand | 546 | 1,054 | - | - | - | 1,600 | 2,253 |
| Other current (liabilities) / assets | (1,754) | (479) | 163 | - | 802 | (1,268) | (1,461) |
| 78,981 | 575 | 163 | 7,702 | 31,544 | 118,965 | 116,750 | |
| General Fund | Hospital Branch | Fund | |||||
| Designated | |||||||
| Unrestricted | Restricted | tangible fixed | |||||
| Endowment | Income Fund | Fund | assets fund | Endowment | 2022 | 2021 | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Investment freehold property | 37,485 | - | - |
- | 22,650 | 60,135 | 63,593 |
| Other investments | |||||||
| (unlisted, listed and bonds) | 44,018 | - | - |
- | 3,916 | 47,934 | 43,417 |
| Tangible assets | - | - | - |
7,889 | - | 7,889 | 7,696 |
| Cash at bank and in hand | 1,258 | 995 | - | - | - | 2,253 | 2,917 |
| Other current (liabilities) / assets | (1,918) | (570) | 183 | - | 844 | (1,461) | (1,273) |
| 80,843 | 425 | 183 | 7,889 | 27,410 | 116,750 | 116,350 |
Creating a Community of Excellence for the Care of Older People
33
Annual Report to 31st March 2023
Notes to the accounts (continued)
For the year to 31 March 2023
11 Analysis of fund movements (2022/23)
| 11 Analysis of fund movements (2022/23) | ||||||
|---|---|---|---|---|---|---|
| General Fund | Hospital Branch | Fund | ||||
| Trust for | Unapplied | Total | Trust for | Unapplied | Total |
|
| investment | total return | endowment | investment | total return | endowment | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| At beginning of the reporting period: | ||||||
| Gift component of the permanent endowment | 25,329 | - | 25,329 | 756 | - | 756 |
| Unapplied total return | - | 18,689 | 18,689 | - | 3,160 | 3,160 |
| 25,329 | 18,689 | 44,018 | 756 | 3,160 | 3,916 |
|
| Movements in the reporting period: | ||||||
| Net additions to and (withdrawals from) listed securities to | ||||||
| fund investment property | - | - | - | - | - |
|
| Gift of endowment funds | (202) | - | (202) | (25) | - | (25) |
| Investment return: dividends and interest | - | 691 | 691 | - | 67 | 67 |
| Investment return: realised and unrealised gains and (losses) | - | (921) | (921) | - | (82) | (82) |
| Unapplied total return allocated to income in the reporting period | - | (490) | (490) | - | (42) | (42) |
| Net movements in reporting period | (202) | (720) | (922) | (25) | (57) | (82) |
| At end of the reporting period: | ||||||
| Gift component of the permanent endowment | 25,127 | - | 25,127 | 731 | - | 731 |
| Unapplied total return | - | 17,969 | 17,969 | - | 3,103 | 3,103 |
| 25,127 | 17,969 | 43,096 | 731 | 3,103 | 3,834 |
|
| Investment freehold property | 37,093 | - | 37,093 | 26,908 | - | 26,908 |
| Cash | 547 | - | 547 | 1,053 | - | 1,053 |
| Net current assets / (liabilities) | (1,755) | - | (1,755) | (251) | - | (251) |
| Total Endowment funds | 61,012 | 17,969 | 78,981 | 28,441 | 3,103 | 31,544 |
Analysis of fund movements (2021/22)
| Analysis of fund movements (2021/22) | ||||||
|---|---|---|---|---|---|---|
| General Fund | Hospital Branch | Fund | ||||
| Trust for | Unapplied | Total | Trust for | Unapplied | Total |
|
| investment | total return | endowment | investment | total return | endowment | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| At beginning of the reporting period: | ||||||
| Gift component of the permanent endowment | 25,404 | - | 25,404 | 768 | - | 768 |
| Unapplied total return | - | 14,465 | 14,465 | - | 2,780 | 2,780 |
| 25,404 | 14,465 | 39,869 | 768 | 2,780 | 3,548 |
|
| Movements in the reporting period: | ||||||
| Net additions to and (withdrawals from) listed securities to | ||||||
| fund investment property | (75) | - | (75) | (12) | - | (12) |
| Gift of endowment funds | - | - | - | - | - | - |
| Investment return: dividends and interest | - | 573 | 573 | - | 52 | 52 |
| Investment return: realised and unrealised gains and (losses) | - | 4,148 | 4,148 | - | 369 | 369 |
| Unapplied total return allocated to income in the reporting period | - | (497) | (497) | - | (41) | (41) |
| Net movements in reporting period | (75) | 4,224 | 4,149 | (12) | 380 | 368 |
| At end of the reporting period: | ||||||
| Gift component of the permanent endowment | 25,329 | - | 25,329 | 756 | - | 756 |
| Unapplied total return | - | 18,689 | 18,689 | - | 3,160 | 3,160 |
| 25,329 | 18,689 | 44,018 | 756 | 3,160 | 3,916 |
|
| Investment freehold property | 37,485 | - | 37,485 | 22,650 | - | 22,650 |
| Tangible fixed assets | - | - | - | - | - | - |
| Cash | 1,258 | - | 1,258 | - | - | - |
| Net current assets / (liabilities) | (1,918) | - | (1,918) | 844 | - | 844 |
| Total Endowment funds | 62,154 | 18,689 | 80,843 | 24,250 | 3,160 | 27,410 |
34
Creating a Community of Excellence for the Care of Older People
Annual Report to 31st March 2023
12 Related parties
In accordance with the 2009 Scheme, the Charity is liable to pay £461,000 (2022: £524,000) as financial support to Charterhouse School. The amount owing at the year-end is shown as a current liability in the Balance Sheet.
The charity recharged expenses to Carthusia Limited during the year of £30,000 (2022: £50,000). Carthusia Limited paid its surplus for the year to the charity £225,000 being the profit for the year less the deficit from the previous year (2022: £111,000). At the year end, Carthusia Limited owed the charity £257,000 (2022: £246,000).
13 Capital commitments
At the accounting date, the Charity and Group had no capital commitments (2022: £59,000 ).
14 Financial instruments
FRS 102 requires disclosure of the role which financial instruments have had during the year in creating or changing the risks an entity faces in undertaking its activities. Financial instruments include investments in equity shares and bonds, cash held on deposit and other receivables.
| cash held on deposit and other receivables. | ||||
|---|---|---|---|---|
| Group | Group | Charity | Charity | |
| 2023 | 2022 | 2023 | 2022 | |
| £’000 | £’000 | £’000 | £’000 | |
| Financial assets | ||||
| Listed Investments | 46,419 | 47,396 | 46,419 | 47,396 |
| Cash held | 2,111 | 2,791 | 1,787 | 2,475 |
| Rent and other receivables | 417 | 320 | 660 | 540 |
| Total financial assets | 48,947 | 50,507 | 48,866 | 50,411 |
| Financial liabilities | ||||
| Trade and other payables | 1,685 | 1,781 | 1,604 | 1,686 |
| Total financial liabilities | 1,685 | 1,781 | 1,604 | 1,686 |
Creating a Community of Excellence for the Care of Older People
35
Annual Report to 31st March 2023
Notes to the accounts (continued)
For the year to 31 March 2023
15 Restricted Funds Analysis
| 15 Restricted Funds Analysis | |
|---|---|
| 2023 | |
| General Fund Restricted Funds £’000 Hospital Fund Restricted Funds £’000 Total Restricted Funds £’000 |
|
| Income and Endowments from: Donations and legacies Brothers’ Contributions Other trading activities Investment income Transfer from Capital to Income (TRDP) |
- 33 33 - - - - - 1,880 - 1,880 490 0 490 |
| Total Income and Endowments Expenditure on raising funds Investment and property management Expenses Trading Activities Fundraising Charitable activities Infirmary care Sheltered accommodation Moiety to Charterhouse School |
2,370 33 2,403 303 - 303 - - - 77 53 130 345 - 345 723 - 723 461 0 461 |
| Total Expenditure Net income/expenditure before gains on investments Gains on financial investments Gains on freehold property |
1,909 53 1,962 461 (20) 441 – – – – – – |
| Net income/expenditure Transfer of Moeity |
461 (20) 441 (461) – (461) |
| Net movement in funds Total funds brought forward |
- (20) (20) - 183 183 |
| Total funds carried forward | - 163 163 |
36
Creating a Community of Excellence for the Care of Older People
Annual Report to 31st March 2023
Endowment Funds Analysis
| Endowment Funds Analysis | |
|---|---|
| 2023 | |
| General Fund Endowment Funds £’000 Hospital Fund Endowment Funds £’000 Total Endowment Funds £’000 |
|
| Income and Endowments from: Donations and legacies Brothers’ Contributions Other trading activities Investment income Transfer from Capital to Income (TRDP) |
- - - - - - - - - - - - (490) (42) (532) |
| Total Income and Endowments Expenditure on raising funds Investment and property management Expenses Trading Activities Fundraising Charitable activities Infirmary care Sheltered accommodation Moiety to Charterhouse School Pensions in payment |
(490) (42) (532) - - - - - - - - - - - - - - - - - - - - - |
| Total Expenditure Net income/expenditure before gains on investments Gains on financial investments Gains on freehold property |
- - - (490) (42) (532) - (921) (82) (1,003) (451) 4,258 3,807 |
| Net income/expenditure Transfer between funds |
(1,862) 4,134 2,272 - - - |
| Net movement in funds Total funds brought forward |
(1,862) 4,134 2,272 80,843 27,410 108,253 |
| Total funds carried forward | 78,981 31,544 110,525 |
Creating a Community of Excellence for the Care of Older People
37
Annual Report to 31st March 2023
Notes to the accounts (continued)
For the year to 31 March 2023
16 Carthusia Limited
The Charity owns the entire share capital of £1 of Carthusia Ltd. All functions and fundraising events held since 21 April 2011 have been conducted with the Trading subsidiary (company number 7612570). A summary of the trading results is shown below:
| is shown below: | ||
|---|---|---|
| 2023 | 2022 | |
| £’000 | £’000 | |
| Turnover | 691 | 609 |
| Cost of sales | (372) | (301) |
| Gross profit | 319 | 308 |
| Administrative expenses | (94) | (181) |
| Profit for the financial year and total comprehensive income | 225 | 127 |
| Current Assets | ||
| Debtors | 14 | 26 |
| Cash at bank and in hand | 324 | 316 |
| Total Current Assets | 338 | 342 |
| - | - | |
| Creditors: amounts falling due in one year | (338) | (342) |
| Net Assets and shareholders’ funds | - | - |
38
Creating a Community of Excellence for the Care of Older People
Annual Report to 31st March 2023
| Senior Staf | |
|---|---|
| Master | Peter Aiers OBE IHBC FRSA |
| Director of Development and | |
| Public Engagement | Tom Foakes MA MStJ |
| Preacher | The Reverend Canon Ann Clarke ACP SCP |
| Director of Finance | Chris Adcock LVO MA FCA |
| Advisors | |
| Auditor | Moore Kingston Smith LLP |
| 9 Appold Street, London, EC2A 2AP | |
| Bankers | Barclays Bank plc |
| Level 27, 1 Churchill Place, Canary Wharf, London, E14 5HP | |
| Investment Managers | Newton Investment Management Limited |
| 160 Queen Victoria Street, London, EC4V 4LR | |
| Troy Asset Management Limited | |
| Brookfeld House, 44 Davies Street, London, W1K 5JA | |
| Waverton Investment Management Limited | |
| 21 St. James Square, London, SW1Y 4HB | |
| Independent Valuers | Knight Frank LLP |
| 55 Baker Street, London, W1U 8AN | |
| Property Advisers | General Fund - Ingleby Trice LLP |
| 10 Foster Lane, London EC2V 6HR | |
| Hospital Fund – Daniel Watney LLP | |
| 165 Fleet Street, London, EC4A 2DW | |
| Solicitors | Stone King LLP |
| Boundary House, 91 Charterhouse Street, London, EC1M 6HR | |
| Registered Charity Number: | 207773 |
| Head Ofce | Charterhouse Square, London EC1M 6AN |
Creating a Community of Excellence for the Care of Older People
39
Charterhouse Annual Reportto 31st March 2023 40 Crellting Community ofExc£llenc£forthe CoreofOld£rP£ople
eee got FE, The Charterhouse ay ee pope x : Why yal ar ' } a | jt conveys a vivid impression = > ee a "i 4 " ; > == i ——————— of the type of large a: = Paks 4 pe OSS | || Ta rambling 16th century mansion that once existed ‘ “ v == { ve te all round London. Nikolaus Pevsner (1902-1983) +i 4 = Hy Lae he aS Oe
This Master-piece of Protestant Charity… Peerless in Christendom ee on an equal Standard, and Valuation of Revenue. Thomas Fuller (1608-1661)
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