## **ST NICHOLAS' HOSPITAL**
## **REPORT OF THE TRUSTEES**
## **AND**
## **STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
||**CONTENTS**|
|---|---|
|Page||
|1.|Trustees, Officers and Advisers|
|2. - 3.|Trustees' Report|
|4.|Report of the Independent Examiner|
|5.|Statement of Financial Activities|
|6.|Balance Sheet|
|7. - 15.|Notes to the Accounts|
||_For management information only_|
|16.|Detailed Income and Expenditure Account|
## **CHARTERED ACCOUNTANTS**
**SALISBURY**
**FLETCHER & PARTNERS**
Page 1
## **ST NICHOLAS' HOSPITAL TRUSTEES' REPORT AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
The Trustees present their annual report and accounts for the charity for the year ended 31 December 2022. The accounts have been prepared in accordance with the accounting policies set out on pages 7 to 9 and comply with the Charity's schemes and applicable law.
|**TRUSTEES:**|EX OFFICIO||||
|---|---|---|---|---|
||By the Bishop||The Master: The Ven C J Baston|(appointed 04.05.21)|
||NOMINATED||||
||By the Bishop||Mr D A Bartlett|(re-appointed 08.05.19)|
|||||Chairman from 28.01.16|
||By the Master||Mrs R A P Stiven|(re-appointed 28.01.19)|
||CO-OPTATIVE||Canon D K Callard|(re-appointed 25.06.19)|
||||Mrs S J Beswick|(re-appointed 28.10.21)|
|||||(resigned 23.07.22)|
||||Mrs E F Hopkinson|(appointed 26.1.23)|
||||Mrs C E Romano|(re-appointed 28.10.21)|
||||Mr R D Trahair|(re-appointed 04.07.18)|
|**PRINCIPAL**|||||
|**OFFICER:**|Mr C L Gutteridge, Clerk to the Trustees|||(appointed 01.03.20)|
|**CHARITY**|||||
|**ADDRESS:**|The Clerk's Office, St Nicholas'||Hospital, St Nicholas Road, Salisbury, Wiltshire SP1 2SW||
|**ADVISERS:**|Bankers|-|CAF Bank||
||||cafbank@cafonline.org||
|||-|National Westminster Bank Plc||
||||48 Blue Boar Row, Salisbury SP1 1DF||
|||-|CCLA Investment Management Limited||
||||Senator House, 85 Queen Victoria Street||
||||London EC4V 4ET||
||Solicitors|-|Parker Bullen||
||||45 Castle Street, Salisbury SP1 3SS||
||Independent Examiners|-|Mrs N A Halls FCA, Fletcher & Partners||
||||Crown Chambers, Bridge Street, Salisbury SP1 2LZ||
||Surveyors|-|Symonds & Sampson||
||||89 Crane Street, Salisbury, SP1 2PU||
|||-|The Diocesan Surveyor||
||||Church House, Salisbury SP1 2QB||
||Investment Managers|-|CCLA Investment Management Limited||
||||Senator House, 85 Queen Victoria Street||
||||London EC4V 4ET||
||Custodian Trustee|-|The Official Custodian for Charities||
|**REGISTERED**|||||
|**CHARITY NUMBER:**|214916|in England and Wales|||
**ST NICHOLAS' HOSPITAL**
Page 2
## **TRUSTEES' REPORT AND STATEMENT OF ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **LEGAL STATUS**
The Hospital is a registered charity number 214916. It was refounded by letters patent of the 3 April 1608 James I, and its governing document is the Hospital of St Nicholas (Salisbury) Charity Scheme Confirmation Act 1959, the Charity Commission Scheme dated 7 March 1961 as amended on 15 January 2009 and the Charity Commission Scheme dated 26 April 2016 as amended on 31 January 2019 and 21 January 2021.
## **OBJECTS**
The objects of the charity were updated in April 2016, and are now: (a) the relief of poverty by the provision of accommodation for persons of good character who are in need of assistance;
(b) such charitable purposes for the benefit of residents and former residents as the trustees decide, including the provision of financial assistance to former residents who are in need.
## **POLICIES**
During the year the Hospital provided 24 units of accommodation to residents. The residents contribute a set monthly sum towards the maintenance of the Hospital. Other land and buildings are let to provide additional income for the Charity. Other endowments are invested to provide income to cover the running and management costs of the Charity. Surplus income may be applied for the benefit of the residents.
In 1993 and 1994 the Trustees used part of the endowment capital to build a new annexe to the Hospital to provide 6 additional units of accommodation. The Trustees are bound by the Trustee Act 2000. During the year the trustees reviewed their policies and procedures.
## **RESERVES POLICY**
The Trustees of the Charity are able to use the surplus accumulated income over expenditure on future projects, to improve the facilities and the operation of the Hospital. The Trustees consider that a minimum of £150,000 should be kept in reserve to cover unforeseen costs. At the year end the reserves were £127,693.
## **RISK MANAGEMENT**
The Trustees have reviewed the major risks to which the Charity is exposed and ensured that systems are in place to mitigate exposure to the risks identified. The principal risks lie in the performance of investments and operational risks from owning property. Variability of investment returns on the permanent endowment constitute the charity's major financial risk, and this is mitigated by retaining expert investment managers and having a diversified investment portfolio.
## **ORGANISATION**
The Charity is managed by between five and seven Trustees who meet not less than four times a year. In January 2023 the Trustees passed a resolution to enable an eighth Trustee to be appointed. The Trustees appoint a Clerk to act on their behalf. The day to day administration of the Charity is dealt with by the Master and the Clerk, as appropriate, on behalf of the Trustees. The nominated Trustees were originally appointed for terms of three years and Co-optative Trustees appointed by resolution of the Trustees for terms of five years. To simplify the Charity's administration, the Charity Commission agreed during 2019 that all Trustees' terms of appointment could be five years. New trustees are inducted and trained by the Master, the Chairman and the Clerk. New trustees are recruited and appointed after receiving a personal recommendation from the existing trustee body. The Charity's land and buildings are held in trust by The Official Custodian for Charities.
## **TRUSTEES' RESPONSIBILITIES FOR THE PREPARATION OF ACCOUNTS**
The Trustees are responsible for preparing the Annual Trustees' Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards. Under the law applicable to charities, the trustees have elected to prepare accruals accounts which must show a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources for that period. In preparing those financial statements the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to assume that the Charity will continue in operation.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.
**ST NICHOLAS' HOSPITAL**
Page 3
## **TRUSTEES' REPORT AND STATEMENT OF ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **INVESTMENT POLICY**
In accordance with the Trustee Act 2000 which came into force on 1 February 2001, the Trustees have the power to invest any sums of cash not required for immediate working purposes. The investment objective of the Trustees is that the real value of their assets be maintained and enhanced over the long term by investment in a portfolio of charitable investment funds and freehold property. Investment income is required to help meet the costs of the Charity. The investments are reviewed regularly by the Trustees.
## **PUBLIC BENEFIT**
The trustees confirm that they have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties.
The charity meets its public benefit remit by providing subsidised housing for needy people.
## **REVIEW OF ACTIVITIES AND ACHIEVEMENTS**
The Hospital has had a good Pastoral year.
Flat Vacancies. Two vacancies occurred during the year, one through death, the other as a result of infirmity which meant that the resident was no longer able to live independently. Both flats were cleared with the help of the Community and the relatives, and work undertaken to upgrade the flats. The vacancies were filled in 2022, with the new residents due to arrive in the early part of 2023. The application process has been updated with a more detailed financial statement requested in order that the Trustees are fully appraised of an applicant’s financial position before any potential interview. Prospective residents are encouraged to make an informal visit to the Hospital before making a formal application.
COVID. The Hospital continued to operate under the COVID guidelines as published by the Church of England and HM Government, until the restrictions were lifted. At that stage the regular worship services were resumed in the Chapel, but the Common Cup was not reinstated until January 2023. Anyone with suspected symptoms of COVID underwent a lateral flow test, if positive they isolated from the rest of the Community until a negative test result. There were a total of 7 COVID cases amongst residents, all mild, 4 caught it from Cathedral activities, one at a family wedding and 2 from helping to test residents.
Social. Social events resumed in the second half of the year with a Platinum Jubilee Tea Party, a Harvest lunch and St Nicholas Day celebrations.
In Finance and Facilities Management terms there have been significant successes:
Finance. All the flats have been occupied for most of this year and there have been 2 short-term void flats, one with no income for 4 months and one not occupied at the year end but paid for by the resident whilst in a care home. The CCLA dividends have held up well and the Income level has been reliable this year. On Expenditure there has been a reasonable spend on Flat refurbishments this year; there has also been little spend on the Let Properties this year. The major finance issue this year has been the huge rise in the cost of gas when we transitioned from Total Gas and Power to Crown Gas and despite much higher charges, government subsidies have not been forthcoming. Electricity Costs were fixed this year.
Facilities Management. The new Annual Visits by the Master and Clerk to all residents’ flats produced a number of issues which have now been resolved. We have also rebuilt a number of showers in various flats to a newer and high standard; this is a new standard which will be rolled out to all flats when they become vacant. There have been some other buildings works (for example Pelly Balconies) resulting from its Quinquennial Review H&S recommendations which were not anticipated in the budget.
## **REVIEW OF TRANSACTIONS AND FINANCIAL POSITION**
The Charity's total income for the year was £237,978 including investment income of £110,492 dividends plus £22,217 from let properties. The expenditure for the year was £272,605 of which £264,259 was on direct charitable activities. The net outgoing resources for the year were £34,627 before revaluation of investments (held in the COIF Income Fund) and investment properties. The COIF income Fund investments are held to provide a long- term total return comprising growth in capital and distributions, suitable for a charity's long-term funds, and providing a good level of distributions and long-term protection from inflation. The fund follows an ethical investment policy. Investments worth £10,000 were sold from the Extraordinary Repair Fund (ERF) to assist with repairs costs, and a further £19,518 of investments were transferred from the ERF to fund the Recoupment payments required for 2021 and 2022. This created a realised loss of £2,825.
The value of the charity's investments decreased by £483,831 (2021: increased by £523,996). The COIF Investment Fund reported a total return, including income, of -9% over the year, compared to its benchmark comparator return of -10.10%. The Charity's investment properties were subject to a five yearly professional revaluation which generated unrealised revaluation gains of £1,350,000.
Over the year, therefore, the Charity's resources increased by a total of £ 828,717.
Depreciation of £14,782 was charged on the almshouse properties as required by the accounting policy, and allocated to the fund which provided the finance for the relevant property.
The twenty-third and twenty-fourth recoupment payments of £10,000 each, due under the 1993 recoupment scheme, were made in 2022 and invested in COIF Investment Fund units.
The Charity had net assets of £6,317,122 at the end of the year, including investments worth £3,691,838 and investment properties worth £2,225,000 but excluding the original cost of the Hospital. The buildings used by the charity are insured for approximately £10.7 million. The Charity's unrestricted reserves at the year end were a total of £148,919 of which £21,226 is represented by land and buildings and fixed assets, leaving free reserves of £127,693. The format of the accounts complies with the charity's governing documents, the Charities Act 2011 and the Charities SORP (FRS 102). Following the Charity's deregistration from the Housing Corporation in November 1998 the accounts no longer have to comply with the Housing Act 1996.
The Trustees consider the financial position of the Charity to be satisfactory, and the assets of each fund to be adequate to fulfil the obligations of the Charity.
Approved by the Trustees on 27 July 2023 and signed on their behalf by:
.............................................. Mr D A Bartlett, Trustee and Chairman
**INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF**
Page 4
## **ST NICHOLAS' HOSPITAL**
I report to the trustees on my examination of the accounts of St Nicholas' Hospital (the charity) for the year ended 31 December 2022, which are set out on pages 5 to 15.
## **Responsibilities and basis of the report**
As the charity's trustees of the Hospital you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the Act).
I report in respect of my examination of the Trustees' accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent Examiner's Statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- (1) accounting records were not kept in respect of the charity as required by section 130 of the Act; or
- (2) the accounts do not accord with those records; or
- (3) the accounts do not comply with the applicable requirements concerning the form and content of the accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## Nicola A Halls
Mrs N A Halls FCA Chartered Accountant
Fletcher & Partners Crown Chambers
Bridge Street Salisbury SP1 2LZ
Date: 31 August 2023
Page 5a
## **ST NICHOLAS' HOSPITAL**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
|Note
**INCOME FROM:**
Donations and legacies
2
Investments
3
Charitable activities
Provision of accommodation
Other
4
TOTAL INCOME
**EXPENDITURE ON:**
Raising funds
Repairs and maintenance of let properties
7
Charitable activities
Donations to charities
8
Provision of accommodation
8
TOTAL EXPENDITURE
Excess expenditure over income
**NET GAINS/(LOSSES) ON INVESTMENTS**
Realised gains/(losses) on investment assets
Unrealised gains on investment properties
10a
Unrealised gains/(losses) on investments
10b
NET INCOME/(EXPENDITURE)
BEFORE TRANSFERS
**TRANSFERS BETWEEN FUNDS**
16
NET INCOME/(EXPENDITURE)
BEFORE RECOGNISED GAINS AND LOSSES
**OTHER RECOGNISED GAINS AND LOSSES**
**NET MOVEMENT IN FUNDS FOR THE YEAR**
TOTAL FUNDS BROUGHT FORWARD
**TOTAL FUNDS CARRIED FORWARD**
17|Unrestricted
Funds
2,780
132,709
95,466
535|Unrestricted
Funds
2,780
132,709
95,466
535|Restricted
Funds
6,488
-
-
-|Restricted
Funds
6,488
-
-
-|Recoupment
& Endowment
Funds
-
-
-
-|Recoupment
& Endowment
Funds
-
-
-
-|Total
2022
9,268
132,709
95,466
535|Total
2021
5,863
129,836
88,115
963|
|---|---|---|---|---|---|---|---|---|
|||231,490||6,488||-|237,978|224,777|
|||2,576
-
250,858||-
5,770
-||-
-
13,401|2,576
-
-
5,770
264,259|18,023
-
-
5,861
266,141|
|||253,434||5,770||13,401|272,605|290,025|
|||(21,944)
(2,825)
-
(14,143)||718
-
-
-|(13,401)
-
1,350,000
(469,688)||(34,627)
(2,825)
1,350,000
(483,831)|(65,248)
4,104
-
523,996|
|||(38,912)
(20,000)||718
-|866,911
20,000||828,717
-|462,852
-|
|||(58,912)
-||718
-|886,911
-||828,717
-|462,852
-|
|||(58,912)
207,831||718
77,832|886,911
5,202,742||828,717
5,488,405|462,852
5,025,553|
||£148,919|||£78,550|£6,089,653||£6,317,122|£5,488,405|
The notes on pages 7 to 15 form part of these accounts
Page 5b
## **ST NICHOLAS' HOSPITAL**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
|Note
**INCOME FROM:**
Donations and legacies
_2_
Investments
_3_
Charitable activities
Provision of accommodation
Other
_4_
TOTAL INCOME
**EXPENDITURE ON:**
Raising funds
Repairs and maintenance of let properties
_7_
Charitable activities
Donations to charities
_8_
Provision of accommodation
_8_
TOTAL EXPENDITURE
Excess expenditure over income
**NET GAINS/(LOSSES) ON INVESTMENTS**
Realised gains/(losses) on investment assets
Unrealised gains on investment property
_10a_
Unrealised gains/(losses) on investment assets _10b_
NET INCOME/(EXPENDITURE)
BEFORE TRANSFERS
**TRANSFERS BETWEEN FUNDS**
_16_
NET INCOME/(EXPENDITURE)
BEFORE RECOGNISED GAINS AND LOSSES
**OTHER RECOGNISED GAINS AND LOSSES**
**NET MOVEMENT IN FUNDS FOR THE YEAR**
TOTAL FUNDS BROUGHT FORWARD
**TOTAL FUNDS CARRIED FORWARD**
_17_|Unrestricted
Funds
-
129,836
88,115
963|Unrestricted
Funds
-
129,836
88,115
963|Restricted
Funds
5,863
-
-
-|Restricted
Funds
5,863
-
-
-|_Comparative figures only_
Recoupment
& Endowment
Total
Funds
2021
-
5,863
-
129,836
-
88,115
-
963
-
224,777
-
18,023
-
5,861
13,401
266,141
13,401
290,025
(13,401)
(65,248)
4,104
4,104
-
-
504,792
523,996
495,495
462,852
-
-
495,495
462,852
-
-
495,495
462,852
4,707,247
5,025,553
£5,202,742
£5,488,405|_Comparative figures only_
Recoupment
& Endowment
Total
Funds
2021
-
5,863
-
129,836
-
88,115
-
963
-
224,777
-
18,023
-
5,861
13,401
266,141
13,401
290,025
(13,401)
(65,248)
4,104
4,104
-
-
504,792
523,996
495,495
462,852
-
-
495,495
462,852
-
-
495,495
462,852
4,707,247
5,025,553
£5,202,742
£5,488,405|_Comparative figures only_
Recoupment
& Endowment
Total
Funds
2021
-
5,863
-
129,836
-
88,115
-
963
-
224,777
-
18,023
-
5,861
13,401
266,141
13,401
290,025
(13,401)
(65,248)
4,104
4,104
-
-
504,792
523,996
495,495
462,852
-
-
495,495
462,852
-
-
495,495
462,852
4,707,247
5,025,553
£5,202,742
£5,488,405|
|---|---|---|---|---|---|---|---|
|||218,914||5,863||-|224,777|
|||18,023
-
252,740||-
5,861
-||-
-
13,401|18,023
5,861
266,141|
|||270,763||5,861||13,401|290,025|
|||(51,849)
-
-
19,204||2
-
-
-||(13,401)
4,104
-
504,792|(65,248)
4,104
-
523,996|
|||(32,645)
-||2
-||495,495
-|462,852
-|
|||(32,645)
-||2
-||495,495
-|462,852
-|
|||(32,645)
240,476||2
77,830|495,495
4,707,247||462,852
5,025,553|
||£207,831|||£77,832|£5,202,742||£5,488,405|
Page 6
## **ST NICHOLAS' HOSPITAL**
## **BALANCE SHEET AS AT 31 DECEMBER 2022**
|**FIXED ASSETS**
Tangible Assets
Housing land and buildings
Other tangible assets
Investments
Investment properties
Common Investment Funds
TOTAL FIXED ASSETS
**CURRENT ASSETS**
Debtors
Cash at bank and in hand
TOTAL CURRENT ASSETS
**LIABILITIES**
NET CURRENT ASSETS
**TOTAL NET ASSETS**
**FUNDS OF THE CHARITY**
CAPITAL AND RESERVES
ENDOWMENT FUNDS
RESTRICTED INCOME FUNDS
UNRESTRICTED INCOME FUNDS
Creditors - Amounts falling due within one year|Notes
9a
375,563
9b
3,816
379,379
10a
2,225,000
10b
3,691,838
5,916,838
6,296,217
11
13,697
12
43,070
56,767
13
(35,862)
20,905
17
£6,317,122
14
6,089,653
15
78,550
16
148,919
£6,317,122
-
2022|390,345
4,632
394,977
875,000
4,188,012
5,063,012
5,457,989
8,738
63,831
72,569
(42,153)
30,416
£5,488,405
5,202,742
77,832
207,831
£5,488,405
2021|390,345
4,632
394,977
875,000
4,188,012
5,063,012
5,457,989
8,738
63,831
72,569
(42,153)
30,416
£5,488,405
5,202,742
77,832
207,831
£5,488,405
2021|
|---|---|---|---|
||9a
9b
10a
10b
11
12
13
17
14
15
16|||
||||5,457,989
30,416|
||||£5,488,405|
||||5,202,742
77,832
207,831|
||||£5,488,405|
|||||
These financial statements were approved by the Trustees on 27 July 2023 and signed on their behalf by:
Trustee and Chairman Trustee D A Bartlett R D Trahair
The notes on pages 7 to 15 form part of these accounts
**ST NICHOLAS' HOSPITAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
Page 7
## **1. PRINCIPAL ACCOUNTING POLICIES**
The financial statements of the Charity are 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) (effective from 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Accounting Practice as it applies from 1 January 2019. The accounts (financial statements) 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) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. These financial statements are drawn up on the historical cost accounting basis except that investment assets are carried at market value. The charity constitutes a public benefit entity as defined by FRS 102. A summary of the more important accounting policies is set out below.
## Preparation of the accounts on a going concern basis
The trustees have reviewed the anticipated performance for a period of at least twelve months from the date of approval of the financial statements which demonstrate that there is no material uncertainty regarding the charity's ability to meet its liabilities as they fall due, and continue as a going concern. On this basis, the trustees consider it appropriate to prepare the financial statements on a going concern basis. The income of the charity has not been adversely affected by Covid-19 issues in 2022.
## Key judgements and uncertainties
The most significant areas of judgement and key assumptions that affect items in the accounts are to do with rates of depreciation and a decision not to apply component accounting for replacement of fixed assets within the Hospital and its housing properties. With respect to the next reporting period, the year ended 31 December 2023, the most significant areas of uncertainty that affect the carrying value of assets held by the Charity are the level of investment return and the performance of investment markets, occupancy rates and property repairs.
## **a) Basis of Accounting**
The Financial Statements are prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts.
## **b) Fund accounting**
General Funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the objects of the Charity and which have not been designated for other purposes.
Designated Funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the accounts.
Restricted Funds are funds which are to be used in accordance with specific restrictions imposed by the donor or trust deed. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the accounts. Transfers between funds are made in accordance with the requirements of the Charity Commission Schemes. The Permanent Endowment Fund represents those assets which must be held permanently by the Charity. Income arising on the Endowment Fund can be used in accordance with the objects of the Charity and is included as unrestricted income. Any realised or unrealised capital gains or losses arising on the investments form part of the fund.
## **c) Income**
All income is recognised when the Charity has entitlement to the income, it is probable that the income will be received and the amount receivable can be measured reliably. Where income has related expenditure these items are reported gross in the SOFA. Legacies are recognised as income when they are notified to the Charity and can be quantified with reasonable accuracy.
Income from the provision of accommodation represents the residents' maintenance contributions receivable for the year, less voids.
Investment income is included in the accounts when it becomes due and payable. Rental income for let properties represents the rentals receivable for the year from land and investment properties.
Income from endowed investments is unrestricted. Interest on the Chapel Fund bank accounts is restricted.
Page 8
## **ST NICHOLAS' HOSPITAL NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022**
## **d) Expenditure**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Expenditure on raising funds includes those costs associated with the generation of income from the Charity's various investments. Expenditure on charitable activities are those costs associated with the objects of the Charity and therefore include the costs necessary to maintain the Hospital for the residents as well as support costs and governance costs. Support costs are those costs incurred directly in support of expenditure on the objects of the Charity and include some office costs and a proportion of salaries. Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements. They include costs of preparation and examination of statutory accounts, the costs of trustee meetings and any legal advice to trustees on governance matters.
Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with use of the resources. Salaries and pension costs of the Master and the Clerk are apportioned 50:50 b t t t d t
## **e) Cyclical Repairs and Maintenance**
St Nicholas' Hospital has a regular programme of cyclical repairs and maintenance. Costs are charged to the SOFA in the year in which they are incurred.
## **f) Extraordinary Repairs**
Costs of Extraordinary Repairs, unless representing improvements to the properties, are charged to the SOFA in the year in which they are incurred.
## **g) Housing Properties and Depreciation**
St Nicholas' Hospital was constructed in the 13th century. There is no record of the original cost or development before 1964 so a nil value has been capitalised. The original buildings are historic and form part of the endowment which means that they cannot be sold. The users of the accounts are principally the Trustees who consider the cost of carrying out a professional valuation to include these assets at a value in the accounts to be considerable compared to the limited additional benefit derived by the users of the accounts. The cost of the developments since 1964 have been capitalised and depreciated since 2000 on a straight line basis over their remaining useful economic lives (assumed to be 50 years) as follows:
|Pelly House (1966)|16 years|
|---|---|
|McInnes House (1979)|29 years|
|Flat conversion (1983)|33 years|
|Garden House (1994)|44 years|
The developments have been funded partly by Housing Corporation Grants and partly from the Charity's own resources.
## **h) Housing Association Grant**
Housing Association Grant (HAG) was paid by the Housing Corporation to reduce the cost of a development and is no longer set off against the cost of the asset. Instead such grants are recognised as income when receivable and credited to restricted reserves. HAG is repayable under certain circumstances, primarily following the sale of the relevant almshouse property but will normally be restricted to net proceeds of sale.
## **i) Investment Properties and Investments**
Land and buildings (other than housing properties) are stated at market value. The valuation is formally reviewed every 5 years by external valuers and annually assessed by the trustees. There is no record of the original cost of these properties which form part of the Endowment Fund. Any disposal proceeds will be reinvested in Endowment Funds upon disposal of any of the assets. Stock market investments are stated at fair value at the Balance Sheet date using bid prices of common investment funds. The Statement of Financial Activities includes the net realised and unrealised gains and losses arising on revaluations and disposals throughout the year.
## **j) Other Tangible Assets**
Office, housing and garden equipment are capitalised and depreciated to write off the cost evenly over 3 years. A Stairlift is being written off over 10 years. Assets costing less than £500 are written off immediately.
## **k) Impairment Reviews**
The Trustees consider that the value in use of Tangible Fixed Assets exceeds the net book value disclosed in the accounts so an impairment review is not necessary.
## **l) Pension Costs**
The charity contributes to the Church of England Funded Clergy Pensions Scheme, a defined benefit, multi-employer scheme, for eligible employees. The charity also contributes to a defined contribution pension scheme for other employees. The assets of these schemes are held separately from those of the Charity. Pension costs charged in the Statement of Financial Activities represent the contributions payable by the charity in the year.
**ST NICHOLAS' HOSPITAL**
Page 9
**NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022**
## **l) Value Added Tax**
In these accounts, where applicable, expenditure is shown inclusive of VAT.
## **m) Cash Flow Statement**
Under the Financial Reporting Standard FRS102 the Charity is not required to produce a Cash Flow Statement as it is a small entity.
## **n) Taxation**
St Nicholas’ Hospital is a registered Charity, and is therefore exempt from liability to taxation on its Income and Capital Gains.
## **o) Debtors**
Debtors are measured at the amounts the charity anticipates it will receive from a debt or the amount it has paid in advance for goods or services.
## **p) Cash at bank and in hand**
Cash at bank and in hand includes cash and cash on deposit.
## **q) Liabilities**
Liabilities are measured at the amounts the charity anticipates it will pay to settle a debt or the amount it has received as an advance payment for goods or services it must provide.
## **r) Financial Instruments**
The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. They are initially recognised at transaction value and subsequently measured at their settlement value, except for investments, see note (i).
## **2. INCOME FROM DONATIONS AND LEGACIES**
|Unrestricted Funds
Donations
Restricted Funds
Chapel and other collections
Total||2022
2,780
6,488
£9,268||2021
-
5,863|
|---|---|---|---|---|
|||||£5,863|
|**3.**
**INCOME FROM INVESTMENTS**
Unrestricted Funds
**Rental Income**
Master's House Contributions
Rents from let agricultural land
Rents from let properties
**Way leaves**
**Investment Income**
UK Bank Deposit Interest
UK Dividends
Total Unrestricted funds
Restricted Funds
UK Bank Interest
Total income from investments
**4.**
**OTHER INCOME**
Unrestricted Funds
Sundry income
Common room donations and Guest room income||2022
3,090
2,146
16,860
22,096
121
36
110,456
110,492
132,709
-
£132,709
2022
-
535
£535||2021
2,000
2,146
16,860|
|---|---|---|---|---|
|||||21,006|
|||||129|
|||||-
108,701|
|||||108,701|
|||||129,836|
|||||-|
|||||£129,836|
|||||2021
150
813|
|||||£963|
## **5. TRUSTEES' EMOLUMENTS AND RELATED PARTY TRANSACTIONS**
Except for the Master, none of the Trustees received any emoluments or benefits or reimbursement for expenses for acting as Trustees in 2022 or 2021. The Master, who is also ex-officio a Trustee, is entitled under the Charity Commission Scheme 1961 to receive a salary paid out of the income of the charity and also to reside at the Master's House at the Hospital, free of rent, rates and taxes. The charity also pays the heating costs. The emoluments of the Ven C J Baston were £29,942 plus £9,653 for Clergy pension contributions. There were no other related party transactions.
Page 10
## **ST NICHOLAS' HOSPITAL**
## **NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022**
## **6. EMPLOYEE INFORMATION**
The average headcount of persons employed during the year was 3 (2021: 3). No employee received emoluments in excess of £60,000 p.a. in 2022 or 2021. The Charity considers key management personnel comprise the trustees and the Clerk. The total employment benefits of the key management personnel were £56,818 (2021: £56,005).
|Staff Costs
Wages and salaries
Social Security costs
Pension costs||2022
56,697
117
10,154
£66,968||2021
50,918
118
10,802|
|---|---|---|---|---|
|||||£61,838|
|**7.**
**EXPENDITURE ON RAISING FUNDS**
Unrestricted Funds
Repairs and Management of Let Properties
Surveyor's fees
General maintenance and major works
Insurance||2022
1,933
-
643
£2,576||2021
480
16,812
731|
|---|---|---|---|---|
|||||£18,023|
## **8. EXPENDITURE ON CHARITABLE ACTIVITIES**
|**2022**
Housing and community services
Charitable donations
Support costs
Governance costs
Depreciation
**2021**
Housing and community services
Charitable donations
Support costs
Governance costs
Depreciation
Support costs comprise:
Master's salary and pension (½)
Clerk's salary(½)
Pastoral Assistant salary
Telephone and internet
Subscriptions and courses
Governance costs comprise:
Accountants' remuneration
For Accountancy services
For Independent Examination
Master's salary and pension (½)
Clerk's salary (½)
Bank charges
Trustee insurance
Stationery, copier, IT and postage
Telephone and internet
Legal & professional fees
Repairs, maintenance and improvements
Repairs, maintenance and improvements|Unrestricted
Funds
83,060
-
38,810
82,110
44,682
2,196|Unrestricted
Funds
83,060
-
38,810
82,110
44,682
2,196|Restricted
Funds
-
5,770
-
-
-
-|Restricted
Funds
-
5,770
-
-
-
-|Recoupment
& Endowment
Funds
-
-
-
-
-
13,401
£13,401
Recoupment
& Endowment
Funds
-
-
-
-
-
13,401
£13,401
2022
19,798
8,553
10,150
-
309
£38,810
2022
5,452
2,000
19,798
8,553
81
484
2,274
2,622
3,418
£44,682||Total
2022
83,060
5,770
38,810
82,110
44,682
15,597|
|---|---|---|---|---|---|---|---|
|||£250,858||£5,770|||£270,029|
||Unrestricted
Funds
83,990
-
34,389
92,303
39,862
2,196||Restricted
Funds
-
5,861
-
-
-
-||||Total
2021
83,990
5,861
34,389
92,303
39,862
15,597|
|||£252,740||£5,861|||£272,002|
||||||||2021
18,740
9,263
5,833
257
295|
||||||||£34,388|
||||||||2021
3,118
2,000
18,739
9,263
109
1,785
2,507
2,301
40|
||||||||£39,862|
**ST NICHOLAS' HOSPITAL**
Page 11
**NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022**
## **9. TANGIBLE FIXED ASSETS**
(a) Housing Land and Buildings (Freehold)
|COST
As at 1 January 2022 and
at 31 December 2022
DEPRECIATION
As at 1 January 2022
Charge for the year
As at 31 December 2022
NET BOOK VALUE
As at 1 January 2022
As at 31 December 2022||Pelly
House
20,288|McInnes
House
75,572|McInnes
House
75,572||Flat
Conversion
34,185|Garden
House
605,781|Garden
House
605,781||Total
735,826|
|---|---|---|---|---|---|---|---|---|---|---|
|||20,288
-||8,503
387||13,806
628||302,884
13,767||345,481
14,782|
|||20,288||8,890||14,434||316,651||360,263|
|||-||67,069||20,379||302,897||390,345|
|||-||66,682||19,751||289,130||375,563|
Freehold land and buildings represent the cost of developments since 1964 part funded by Housing Association Grants (HAG) of £77,832. There is no record of the original cost of the Hospital and developments before 1964, so a nil value has been used in these accounts. The original almshouse is a 13th Century, Grade II listed building and this, together with the more modern buildings on the Hospital's site are insured for approximately £10.7 million. Of the net book value of £375,563, £17,412 was provided from the Hospital's General Fund, £280,319 from its endowment capital and the rest by HAG. The £585,176 spent on the Garden House from Endowment funds is to be recouped over 59 years from 1999 to the year 2057. The twenty- third and twenty-fourth instalments were made in 2022, see Note 16.
|(b) Other Tangible Assets
COST
As at 1 January 2022
Additions
Disposals
As at 31 December 2022
DEPRECIATION
As at 1 January 2022
Charge for the year
As at 31 December 2022
NET BOOK VALUE
As at 1 January 2022
As at 31 December 2022|Stairlift
4,999
-
-||Office
Equipment
2,372
-
-|Garden
Shed
4,432
-
-|Garden
Shed
4,432
-
-||Lawn
Mower
5,193
-
-||Total
16,996
-
-|
|---|---|---|---|---|---|---|---|---|---|
||4,999||2,372||4,432||5,193||16,996|
||1,000
500||1,739
316||4,432
-||5,193
-||12,364
816|
||1,500||2,055||4,432||5,193||13,180|
||£3,999||£633||£-||£-||£4,632|
||£3,499||£317||£-||£-||£3,816|
|**10.**|**FIXED ASSET INVESTMENTS**
(a) Investment Properties
Valuation at 1 January 2022
Unrealised gains / (losses) on revaluation
Valuation at 31 December 2022|2022
875,000
1,350,000|2021
875,000
-|
|---|---|---|---|
|||£2,225,000|£875,000|
There is no record of the original cost of the investment properties.
Properties were revalued at 31 December 2022 by external valuers, Messrs Myddelton & Major, Chartered Surveyors and Symonds & Sampson, Chartered Surveyors, taking into account the tenancy agreements in force at that date. All investment properties are permanent endowments of the Charity.
Page 12
## **ST NICHOLAS' HOSPITAL**
## **NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022**
## **10. FIXED ASSET INVESTMENTS (continued)**
|(b) Common investment funds
Endowment
Recoupment
Fund
Fund
Market value at 1 January 2022
3,788,709
245,310
Additions at cost
-
20,000
Disposals at opening value
-
-
Transferred to/from
-
-
Unrealised investment gains/(losses
(440,455)
(29,233)
Market value at 31 Dec 2022
3,348,254
236,077
Historical Cost at 31 Dec 2022
1,924,115
233,000
Endowment funds|Extraordinary
General
Repair Fund
Fund
122,152
31,841
-
-
(32,343)
-
(10,441)
(3,702)
Unrestricted funds|Extraordinary
General
Repair Fund
Fund
122,152
31,841
-
-
(32,343)
-
(10,441)
(3,702)
Unrestricted funds|Extraordinary
General
Repair Fund
Fund
122,152
31,841
-
-
(32,343)
-
(10,441)
(3,702)
Unrestricted funds|Extraordinary
General
Repair Fund
Fund
122,152
31,841
-
-
(32,343)
-
(10,441)
(3,702)
Unrestricted funds||Total
4,188,012
20,000
(32,343)
-
(483,831)|
|---|---|---|---|---|---|---|
|||79,368||28,139||3,691,838|
|||71,098||26,536||2,254,749|
All investments are CCLA common investment funds and valued by reference to bid prices at the date of valuation. All investments are carried at fair value. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).
## **11. DEBTORS**
|Other debtors
Prepayments
Accrued income
**12.**
**CASH AT BANK AND IN HAND**
Restricted Funds
Chapel Fund
Unrestricted Funds
COIF Deposit Fund - income account
Other bank accounts
Total cash at bank and in hand
**13.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade creditors - Building works
Pension scheme
Accrued accountancy and independent examination
Other accruals
Other creditors
Deferred income
Other creditors
**14.**
**ENDOWMENT FUNDS**
**At 31 December 2022**
Balance at 1 January 2022
Expenditure - depreciation on buildings
Transfers - capital recouped (2 years)
Unrealised investment gains/(losses)
Realised investment gains/(losses)
Balance at 31 December 2022
**At 31 December 2021**
Balance at 1 January 2021
Expenditure - depreciation on buildings
Transfers - capital recouped
Unrealised investment gains/(losses)
Realised investment gains/(losses)
Balance at 31 December 2021|Endowment
Fund
4,957,433
(13,401)
-
909,545
-|2022
2,484
9,967
1,246|2022
2,484
9,967
1,246||2021
-
7,595
1,143|2021
-
7,595
1,143|
|---|---|---|---|---|---|---|
|||£13,697|||£8,738||
||||2022
718|||2021
-|
|||1
42,351|||-
63,831||
|||42,352|||63,831||
|||£43,070|||£63,831||
|||2022
8,005
940
6,036
6,071
14,139
573
98|||2021
13,205
10,308
4,788
6,159
7,025
573
95||
|||£35,862|||£42,153||
|||Recoupment
Fund
245,309
-
20,000
(29,233)
-|||Total
5,202,742
(13,401)
20,000
880,312
-||
||£5,853,577|£236,076||£6,089,653|||
||Endowment
Fund
4,498,352
(13,401)
-
472,482
-|Recoupment
Fund
208,895
-
-
32,310
4,104|||Total
4,707,247
(13,401)
-
504,792
4,104||
||£4,957,433|£245,309||£5,202,742|||
The Endowment Fund is reduced by the depreciation charges on buildings which have been allocated to each fund in proportion to how the buildings were funded. Investment gains and losses are charged against the funds in which they occur.
**ST NICHOLAS' HOSPITAL NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022**
Page 13
## **14. ENDOWMENT FUNDS (continued)**
## Recoupment Fund:
By an Order of the Charity Commission dated 10 June 1993 the Trustees of St Nicholas' Hospital are to recoup capital of up to £585,176 spent on the new annexe (Garden House) in 1993 and 1994. Recoupment payments are to be made out of the Charity's income for 64 years from 1994 as follows:
|1994|-|1998|Nil||
|---|---|---|---|---|
|1999|-|2056|£10,000|per year|
|2057|||5176||
The income from these sums may be used as unrestricted income of the Charity.
## **15. RESTRICTED FUNDS**
|**At 31 December 2022**
Balance at 1 January 2022
Income
Expenditure
Balance at 31 December 2022
**At 31 December 2021**
Balance at 1 January 2021
Income
Expenditure
Balance at 31 December 2021|Housing
Association Grant
77,832
-
-
£77,832
Housing
Association Grant
77,832
-
-
£77,832|Housing
Association Grant
77,832
-
-
£77,832
Housing
Association Grant
77,832
-
-
£77,832|Chapel
Fund
-
6,488
(5,770)
-|Chapel
Fund
-
6,488
(5,770)
-|
|---|---|---|---|---|
|||£77,832||£718|
||||Chapel
Fund
(2)
5,863
(5,861)||
||||||
|||£77,832||-|
The Housing Association Grant (HAG) is repayable under certain circumstances, primarily following the sale of the relevant almshouse property but will normally be restricted to net proceeds of sale.
The Chapel Fund represents amounts set aside for specific costs associated with St Nicholas' Hospital's chapel. It also receives and disburses the chapel's offertory collections.
## **16. UNRESTRICTED FUNDS**
|**At 31 December 2022**
Balance at 1 January 2022
Income
Expenditure
Transfer from Extraordinary Repair Fund
Transfer to Recoupment Fund (2 years at £10,000)
Realised gains/(losses) on investments
Unrealised gains/(losses) on investments
Balance at 31 December 2022
**At 31 December 2021**
Balance at 1 January 2021
Income
Expenditure
Transfer from Extraordinary Repair Fund
Transfer to Recoupment Fund
Realised gains/(losses) on investments
Unrealised gains/(losses) on investments
Balance at 31 December 2021||Extraordinary
Repair
Fund
122,152
-
-
(29,518)
-
(2,825)
(10,441)|General
Fund
85,679
231,490
(253,434)
29,518
(20,000)
-
(3,702)||Total
207,831
231,490
(253,434)
-
(20,000)
(2,825)
(14,143)|
|---|---|---|---|---|---|
|||£79,368|£69,551|£148,919||
|||Extraordinary
Repair
Fund
106,919
-
-
-
-
-
15,233|General
Fund
133,557
218,914
(270,763)
-
-
-
3,971||Total
240,476
218,914
(270,763)
-
-
-
19,204|
|||£122,152|£85,679|£207,831||
The Extraordinary Repairs Fund represents amounts set aside to carry out major repairs, improvements or rebuilding of the Hospital buildings and other property belonging to the Charity. Investment gains and losses are charged against the funds in which they occur.
The General Fund represents the free funds of the Charity which are not designated for particular purposes.
Page 14
## **ST NICHOLAS' HOSPITAL**
## **NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022**
## **17. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|**At 31 December 2022**
Housing Land and Buildings
1964-66 Pelly House
Garages
1978-79 McInnes House
1981-83 Flat Conversion & Extension
1993-94 Garden House
Other Tangible Assets
Investment Properties
Common Investment Funds
Debtors
Cash at bank and in hand
Creditors|Recoupment
& Endowment
Capital Fund
-
-
-
1,030
279,291|Recoupment
& Endowment
Capital Fund
-
-
-
1,030
279,291|Social
Housing
Chapel
Grant
Fund
-
-
-
-
64,360
-
13,472
-
-
-
77,832
-
-
-
-
-
-
-
-
-
-
718
-
-
£77,832
£718
Restricted funds|Social
Housing
Chapel
Grant
Fund
-
-
-
-
64,360
-
13,472
-
-
-
77,832
-
-
-
-
-
-
-
-
-
-
718
-
-
£77,832
£718
Restricted funds|Social
Housing
Chapel
Grant
Fund
-
-
-
-
64,360
-
13,472
-
-
-
77,832
-
-
-
-
-
-
-
-
-
-
718
-
-
£77,832
£718
Restricted funds||Extraordinary
Repair
General
Fund
Fund
-
-
-
-
-
2,322
-
5,249
-
9,839
Unrestricted funds|Extraordinary
Repair
General
Fund
Fund
-
-
-
-
-
2,322
-
5,249
-
9,839
Unrestricted funds|Total
-
-
66,682
19,751
289,130|
|---|---|---|---|---|---|---|---|---|---|
|||280,321
-
2,225,000
3,584,332
-
-
-||77,832
-
-
-
-
-
-|-
-
-
-
-
718
-||-
-
-
79,368
-
-
-|17,410
3,816
-
28,138
13,697
42,352
(35,862)|375,563
3,816
2,225,000
3,691,838
13,697
43,070
(35,862)|
|||£6,089,653||£77,832|£718||£79,368|£69,551|£6,317,122|
In the Trustees' opinion sufficient resources are held in an appropriate form to enable each fund to be applied in accordance with the restrictions imposed. The General Fund has available free reserves of £48,325 and the Extraordinary Repair Fund £79,368 will be used for repairs and improvements.
|**At 31 December 2021**
Recoupment
& Endowment
Social
Chapel
Capital Fund
Housing Grant
Fund
Housing Land and Buildings
1964-66 Pelly House
-
-
-
Garages
-
-
-
1978-79 McInnes House
-
64,360
-
1981-83 Flat Conversion & Extension
1,132
13,472
-
1993-94 Garden House
292,589
-
-
293,721
77,832
-
Other Tangible Assets
-
-
-
Investment Properties
875,000
-
-
Common Investment Funds
4,034,019
-
-
Debtors
-
-
-
Cash at bank and in hand
-
-
-
Creditors
-
-
-
£5,202,740
£77,832
-
**CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES**
Capital Expenditure that has been authorised but has not been provided
for in the Financial Statements
Restricted funds|Recoupment
& Endowment
Capital Fund
-
-
-
1,132
292,589|Recoupment
& Endowment
Capital Fund
-
-
-
1,132
292,589|Recoupment
& Endowment
Capital Fund
-
-
-
1,132
292,589|Recoupment
& Endowment
Capital Fund
-
-
-
1,132
292,589||Extraordinary
Repair
General
Fund
Fund
-
-
-
-
-
2,709
-
5,775
-
10,308
Unrestricted funds|Extraordinary
Repair
General
Fund
Fund
-
-
-
-
-
2,709
-
5,775
-
10,308
Unrestricted funds|Total
-
-
67,069
20,379
302,897|
|---|---|---|---|---|---|---|---|---|
||||
-
-
64,360
13,472
-||||||
|||293,721
-
875,000
4,034,019
-
-
-|77,832
-
-
-
-
-
-|-
-
-
-
-
-
-||-
-
-
122,152
-
-
-|18,792
4,632
-
31,841
8,738
63,831
(42,153)|390,345
4,632
875,000
4,188,012
8,738
63,831
(42,153)|
|||£5,202,740|£77,832|-||£122,152|£85,681|£5,488,405|
||||||||2022
£-|2021
£-|
## **18. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES**
## **Operating Leases**
The total of future minimum lease payments under non- cancellable operating leases is as follows:
|**Operating Leases**
The total of future minimum lease payments under non- cancellable operating leases is as follows:|||
|---|---|---|
|Less than one year
Between one to five years|2022
£963|2021
£963|
||£1,444|£3,369|
The lease payments treated as expenditure in these accounts was £963 (2021: £963).
## **Contingent Liabilities**
The Housing Corporation Grant (HAG) is repayable under certain circumstances, primarily following the sale of the relevant almshouse property but will normally be restricted to net proceeds of sale.
## **19. PENSION COMMITMENTS**
Since May 2021, St Nicholas Hospital, Salisbury has participated as a Responsible Body in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the Responsible Bodies. Each participating Responsible Body in the Church of England Funded Pensions Scheme pays contributions at a common contribution rate applied to pensionable stipends.
The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year (2022 **:** £8,653, 2021: £8,308), plus the figures in relation to the Scheme's deficit highlighted in the table below as being recognised in the SoFA, giving a total charge of £9,653 for 2022 (2021: £10,308).
Page 15
**ST NICHOLAS' HOSPITAL NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022**
## **19. PENSION COMMITMENTS (cont.)**
A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on assets of £2,720m and a funding target of £2,160m, assessed using the following assumptions:
- An average discount rate of 2.7% p.a.;
- RPI inflation of 3.6% p.a. (and pension increases consistent with this);
- CPIH inflation in line with RPI less 0.8% pre 2030 moving to RPI with no adjustment from 2030 onwards:
- Increase in pensionable stipends in line with CPIH;
- Mortality in accordance with 90% of the S3NA tables, with allowance for improvements in mortality rates in line with the CMI2020 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7 and an initial addition to mortality improvements of 0.5% pa and an allowance for 2020 data of 0% (i.e. w2020= 0%).
Following the 31 December 2018 valuation, a deficit recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) were as set out in the table below. An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from 1 April 2022. Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the scheme was in surplus.
||**January 2018 to**|**January 2021 to**|
|---|---|---|
|**% of pensionable stipends**|**December 2020**|**December 2022**|
|Deficit repair contributions|11.9%|7.1%|
## **% of pensionable stipends**
As at 31 December 2020 and 31 December 2021 the deficit recovery contributions under the recovery plan in force were as set out in the above table.
For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme's rules.
Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the balance sheet liability over 2021 and over 2022 is set out in the table below.
|Balance sheet liability at 1 January
Deficit contribution paid
Interest cost (recognised in SoFA)
Remaining change to the balance sheet liability* (recognised in SoFA)
Balance sheet liability at 31 December|**2022**
**2021**
2,000
-
(3,000)
-
-
-
1,000
2,000|
|---|---|
||-
2,000|
*Comprises change in agreed deficit recovery plan, and change in discount rate and assumptions between yearends.
This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. No assumption are needed for December 2022 as there are no agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2021 since pensionable stipends for the remainder of the recovery plan were already known.
||**December 2022**|**December 2021**|**December 2020**|
|---|---|---|---|
|Discount rate|n/a|0.0%|0.2% pa|
|Price inflation|n/a|n/a|3.1% pa|
|Increase to total pensionable payroll|n/a|-1.5%|1.6% pa|
The legal structure of the scheme is such that if another Responsible Body fails, St Nicholas Hospital Salisbury could become responsible for paying a share of that Responsible Body's pension liabilities.
## **20. POST BALANCE SHEET EVENTS**
A new assured tenancy agreement was granted for 4 years from 1 April 2023 for one of the investment properties, and another property was vacated in February 2023 then put on the market. A grazing agreement ceased in May 2023 and an agricultural tenancy ended and is being renegotiated.