2023-12-31-accounts - St Nicholas Hospital

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ST NICHOLAS' HOSPITAL

REPORT OF THE TRUSTEES

AND

STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023

	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 2023

The Trustees present their annual report and accounts for the charity for the year ended 31 December 2023. 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)
			Canon A Monds	(appointed 02.11.23)
			Mrs E F Hopkinson	(appointed 26.1.23)
			Mrs C E Romano	(re-appointed 28.10.21)
			Mr R D Trahair	(re-appointed 27.07.23)
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
			One Angel Lane
			London, EC4R 3AB
	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
		-	Simpson Hilder Associates Ltd
			67a High Street, Lyndhurst, SO43 7BE
		-	Philip Hughes Associates
			Old Manor Stables, Tout Hill, Wincanton, BA9 9DL
	Investment Managers	-	CCLA Investment Management Limited
			One Angel Lane
			London, EC4R 3AB
	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 2023

LEGAL STATUS

The Hospital is a registered charity in England and Wales with the registered 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 £119,788.

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 eight 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 2023

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. Four residents moved on during the year, resulting in three flats becoming vacant. One through death, two as new chapters in their lives presented themselves and one as a result of infirmity, which meant that the resident was no longer able to live independently. All four flat vacancies were filled in 2023, with new residents moving in February and December 2023. The flats prior to occupation were re-painted, re-carpeted and showers installed instead of baths, where required, and in one case the kitchen was upgraded. It is anticipated that a further two flats will become vacant in the early part of 2024 and those who have expressed an interest in moving to St Nicholas will be contacted and interviewed as appropriate.

Chapel attendance has returned to normal after the various restrictions due to Covid. We have two part time organists and two local retired clergy who help with Communion services. Residents continue to take Morning Prayer.

Social events included a Coronation Tea Party, a Harvest lunch, and the St Nicholas Day celebrations as well as fund raising events for MacMillan Cancer and Christian Aid. With the emergence from the Covid restrictions more families and friends are making use of the guest accommodation and outside groups using the Hospital facilities.

In Finance and Facilities Management terms there have been important matters:

In 2023 the Trustees took the decision to sell one of the two let houses – 7 St Nicholas Road. There has been interest in the sale, but no offer has been made so far. The removal of the tenant has left the building empty with no rent coming in and continuing Council Tax and Utilities bills. A sale of the property for £600,000 was completed in May 2024.

Having all the flats occupied has meant that the Income from Residents was better than forecast in 2023, this was matched by steady dividends from the CCLA Investment Bank. Utility Bills are still a cause for an Expenditure concern, but donations from Residents of part of government Winter Fuel Payments has helped. Flat refurbishment costs have been more than forecast in 2023 coupled to the replacement of a leaking cold-water tank in Pelly House was also unexpected.

Facilities Management (FM) is a balancing act between what is planned for and what can be achieved in Budget given Residents moves in/out and emergencies. Not having a proper contingency fund in the Income and Expenditure Account also makes FM difficult. The Hospital now has Energy Performance Certificates for all the Hospital Flats.

REVIEW OF TRANSACTIONS AND FINANCIAL POSITION

The Charity's total income for the year was £239,680 including investment income of £111,234 from dividends plus £16,637 from let properties. The expenditure for the year was £263,588 of which £243,880 was on direct charitable activities. The net outgoing resources for the year were £23,908 before revaluation of investments (held in the COIF Charities Investment Fund income units). These COIF Charities 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. The value of the charity's investments increased by £344,889 (2022: decreased by £483,831). The COIF Charities Investment Fund reported a total return, including income, of 12.36% over the year, compared to its benchmark of 8.93% and comparator return of 13.30%.

Over the year, therefore, the Charity's resources increased by a total of £320,981.

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-fifth recoupment payment of £10,000, due under the 1993 recoupment scheme, was made in 2023 and invested in COIF Charities Investment Fund income units.

The Charity had net assets of £6,638,103 at the end of the year, including investments worth £4,046,727 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 £138,819 of which £19,031 is represented by land and buildings and fixed assets, leaving free reserves of £119,788.

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 25th July 2024 and signed on their behalf by:

Canon A Monds

.............................................. Trustee

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 2023, which are set out on pages 5 to 15.

Responsibilities and basis of the report

As the charity's trustees of the charity 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.

Mrs N A Halls FCA Chartered Accountant

Fletcher & Partners Crown Chambers Bridge Street Salisbury SP1 2LZ

Date: 26th July 2024

Page 5a

ST NICHOLAS' HOSPITAL

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted Funds 2,233 127,871 98,963 1,948	Unrestricted Funds 2,233 127,871 98,963 1,948	Restricted Funds 8,665 - - -	Recoupment & Endowment Funds - - - -	Recoupment & Endowment Funds - - - -	Total 2023 10,898 127,871 98,963 1,948	Total 2022 9,268 132,709 95,466 535
	231,015	8,665		-	239,680	237,978
	10,680 - 230,479	9,028 -		- - 13,401	10,680 9,028 243,880	2,576 5,770 264,259
	241,159	9,028		13,401	263,588	272,605
	(10,144) - - 10,044	(363) - - -		(13,401) - - 334,845	(23,908) - - 344,889	(34,627) (2,825) 1,350,000 (483,831)
	(100) (10,000)	(363) -		321,444 10,000	320,981 -	828,717 -
	(10,100) -	(363) -		331,444 -	320,981 -	828,717 -
	(10,100) 148,919	(363) 78,550	331,444 6,089,653		320,981 6,317,122	828,717 5,488,405
£138,819		£78,187	£6,421,097		£6,638,103	£6,317,122

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 2023

Unrestricted Funds 2,780 132,709 95,466 535	Unrestricted Funds 2,780 132,709 95,466 535	Restricted Funds 6,488 - - -	Comparative figures only Recoupment & Endowment Total Funds 2022 - 9,268 - 132,709 - 95,466 - 535 - 237,978 - 2,576 - 5,770 13,401 264,259 13,401 272,605 (13,401) (34,627) - (2,825) 1,350,000 1,350,000 (469,688) (483,831) 866,911 828,717 20,000 - 886,911 828,717 - - 886,911 828,717 5,202,742 5,488,405 £6,089,653 £6,317,122	Comparative figures only Recoupment & Endowment Total Funds 2022 - 9,268 - 132,709 - 95,466 - 535 - 237,978 - 2,576 - 5,770 13,401 264,259 13,401 272,605 (13,401) (34,627) - (2,825) 1,350,000 1,350,000 (469,688) (483,831) 866,911 828,717 20,000 - 886,911 828,717 - - 886,911 828,717 5,202,742 5,488,405 £6,089,653 £6,317,122	Comparative figures only Recoupment & Endowment Total Funds 2022 - 9,268 - 132,709 - 95,466 - 535 - 237,978 - 2,576 - 5,770 13,401 264,259 13,401 272,605 (13,401) (34,627) - (2,825) 1,350,000 1,350,000 (469,688) (483,831) 866,911 828,717 20,000 - 886,911 828,717 - - 886,911 828,717 5,202,742 5,488,405 £6,089,653 £6,317,122
	231,490	6,488		-	237,978
	2,576 - 250,858	- 5,770 -		- - 13,401	2,576 5,770 264,259
	253,434	5,770		13,401	272,605
	(21,944) (2,825) - (14,143)	718 - - -	(13,401) - 1,350,000 (469,688)		(34,627) (2,825) 1,350,000 (483,831)
	(38,912) (20,000)	718 -	866,911 20,000		828,717 -
	(58,912) -	718 -	886,911 -		828,717 -
	(58,912) 207,831	718 77,832	886,911 5,202,742		828,717 5,488,405
£148,919		£78,550	£6,089,653		£6,317,122

Page 6

ST NICHOLAS' HOSPITAL

BALANCE SHEET AS AT 31 DECEMBER 2023

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 360,781 9b 2,999 363,780 10a 2,225,000 10b 4,046,727 6,271,727 6,635,507 11 10,802 12 21,474 32,276 13 (29,680) 2,596 17 £6,638,103 14 6,421,097 15 78,187 16 138,819 £6,638,103 2023	375,563 3,816 379,379 2,225,000 3,691,838 5,916,838 6,296,217 13,697 43,070 56,767 (35,862) 20,905 £6,317,122 6,089,653 78,550 148,919 £6,317,122 2022	375,563 3,816 379,379 2,225,000 3,691,838 5,916,838 6,296,217 13,697 43,070 56,767 (35,862) 20,905 £6,317,122 6,089,653 78,550 148,919 £6,317,122 2022
	9a 9b 10a 10b 11 12 13 17 14 15 16
			6,296,217 20,905
			£6,317,122
			6,089,653 78,550 148,919
			£6,317,122

These financial statements were approved by the Trustees on 25th July 2024 and signed on their behalf by:

Canon A Monds	Ven C Baston
Trustee	Trustee

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 2023

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.

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 of fixed assets 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 2024, 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 2023

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 between support costs and governance costs.

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:

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 2023

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		2023 2,233 8,665 £10,898		2022 2,780 6,488
				£9,268

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 OTHER INCOME Unrestricted Funds Sundry income Common room donations and Guest room income		2023 3,300 2,346 10,870 16,516 121 56 111,178 111,234 127,871 - £127,871 2023 105 1,843 £1,948		2022 3,090 2,146 16,860
				22,096
				121
				36 110,456
				110,492
				132,709
				-
				£132,709
				2022 - 535
				£535

4. OTHER INCOME

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 2023 or 2022. 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 £30,993 plus £8,814 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 2023

6. EMPLOYEE INFORMATION

The average headcount of persons employed during the year was 3 (2022: 3). No employee received emoluments in excess of £60,000 p.a. in 2023 or 2022. The Charity considers key management personnel comprise the trustees and the Clerk. The total employment benefits of the key management personnel were £58,566 (2022: £56,818).

Staff Costs Wages and salaries Social Security costs Pension costs 7. EXPENDITURE ON RAISING FUNDS Unrestricted Funds Repairs and Management of Let Properties Surveyor's fees Legal and professional fees General maintenance and major works Council tax and utilities for vacant property Insurance		2023 59,198 586 9,365 £69,149 2023 - 5,954 1,635 2,315 776 £10,680		2022 56,697 117 10,154
				£66,968
				2022 1,933 - - - 643
				£2,576

8. EXPENDITURE ON CHARITABLE ACTIVITIES

Unrestricted Funds 101,414 - 40,199 41,257 45,413 2,196	Unrestricted Funds 101,414 - 40,199 41,257 45,413 2,196	Restricted Funds - 9,028 - - - -	Restricted Funds - 9,028 - - - -	Total 2023 101,414 9,028 40,199 41,257 45,413 15,597
	£230,479		£9,028	£252,908
Unrestricted Funds 83,060 - 38,810 82,110 44,682 2,196		Restricted Funds - 5,770 - - - -		Total 2022 83,060 5,770 38,810 82,110 44,682 15,597
	£250,858		£5,770	£270,029
				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

ST NICHOLAS' HOSPITAL

Page 11

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

9. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS	TANGIBLE FIXED ASSETS
(a) Housing Land and Buildings (Freehold) Pelly House COST As at 1 January 2023 and at 31 December 2023 20,288 DEPRECIATION As at 1 January 2023 20,288 Charge for the year - As at 31 December 2023 20,288 NET BOOK VALUE As at 1 January 2023 - As at 31 December 2023 -		McInnes House 75,572		Flat Conversion 34,185	Garden House 605,781		Total 735,826
COST As at 1 January 2023 and at 31 December 2023 DEPRECIATION As at 1 January 2023 Charge for the year As at 31 December 2023 NET BOOK VALUE As at 1 January 2023 As at 31 December 2023
	20,288 -		8,890 387	14,434 628		316,651 13,767	360,263 14,782
	20,288		9,277	15,062		330,418	375,045
	-		66,682	19,751		289,130	375,563
	-		66,295	19,123		275,363	360,781

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 £360,781, £16,032 was provided from the Hospital's General Fund, £266,917 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- fifth instalment was made in 2023, see Note 16.

Stairlift 4,999 - -	Office Equipment 2,372 - -	Garden Shed 4,432 - -		Lawn Mower 5,193 - -		Total 16,996 - -
4,999	2,372	4,432		5,193		16,996
1,500 500	2,055 317	4,432 -		5,193 -		13,180 817
2,000	2,372	4,432		5,193		13,997
£3,499	£317	£-		£-		£3,816
£2,999	£-	£-		£-		£2,999
				2023 2,225,000 -	2022 875,000 1,350,000
			£2,225,000		£2,225,000

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 2023

10. FIXED ASSET INVESTMENTS (continued)

(b) Common investment funds Endowment Recoupment Fund Fund Market value at 1 January 2023 3,348,254 236,077 Additions at cost - 10,000 Disposals at opening value - - Transferred to/from - - Unrealised investment gains/(losses) 312,829 22,016 Market value at 31 Dec 2023 3,661,083 268,093 Historical Cost at 31 Dec 2023 1,924,115 243,000 Endowment funds	Extraordinary General Repair Fund Fund 79,368 28,139 - - - - 7,415 2,629 Unrestricted funds	Extraordinary General Repair Fund Fund 79,368 28,139 - - - - 7,415 2,629 Unrestricted funds	Extraordinary General Repair Fund Fund 79,368 28,139 - - - - 7,415 2,629 Unrestricted funds	Extraordinary General Repair Fund Fund 79,368 28,139 - - - - 7,415 2,629 Unrestricted funds		Total 3,691,838 10,000 - - 344,889
		86,783		30,768		4,046,727
		71,098		26,536		2,264,749

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

2023 505 9,905 392	2023 505 9,905 392	2022 2,484 9,967 1,246	2022 2,484 9,967 1,246
£10,802		£13,697
	2023 355		2022 718
1 21,118		1 42,351
21,119		42,352
£21,474		£43,070

12. CASH AT BANK AND IN HAND

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors Pension scheme Accrued accountancy and independent examination Other accruals Other creditors Deferred income	2023 2,160 1,473 5,160 7,971 11,721 1,195	2022 8,005 940 6,036 6,071 14,237 573
	£29,680	£35,862

Deferred income relates to rental income received in the year, relating to 2024. At the start of the year £573 was released and at the end of the year £995 was carried over.

Endowment Fund 5,853,577 (13,401) - 312,829 -	Recoupment Fund 236,076 - 10,000 22,016 -		Total 6,089,653 (13,401) 10,000 334,845 -
£6,153,005	£268,092	£6,421,097
Endowment Fund 4,957,433 (13,401) - 909,545 -	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

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 2023

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 £5,176

The income from these sums may be used as unrestricted income of the Charity.

15. RESTRICTED FUNDS

Housing Association Grant 77,832 - - £77,832 Housing Association Grant 77,832 - - £77,832	Chapel Fund 718 8,665 (9,028)	Chapel Fund 718 8,665 (9,028)
£77,832		£355
	Chapel Fund - 6,488 (5,770)

£77,832		£718

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

Extraordinary Repair Fund 79,368 - - - - - 7,415	General Fund 69,551 231,015 (241,159) - (10,000) - 2,629	Total 148,919 231,015 (241,159) - (10,000) - 10,044
£86,783	£52,036	£138,819
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

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 2023

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

At 31 December 2023 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 - - - 926 265,991	Recoupment & Endowment Capital Fund - - - 926 265,991	Social Housing Chapel Grant Fund - - - - 64,360 - 13,472 - - - 77,832 - - - - - - - - - - 355 - - £77,832 £355 Restricted funds	Social Housing Chapel Grant Fund - - - - 64,360 - 13,472 - - - 77,832 - - - - - - - - - - 355 - - £77,832 £355 Restricted funds	Social Housing Chapel Grant Fund - - - - 64,360 - 13,472 - - - 77,832 - - - - - - - - - - 355 - - £77,832 £355 Restricted funds		Extraordinary Repair General Fund Fund - - - - - 1,935 - 4,725 - 9,372 Unrestricted funds	Extraordinary Repair General Fund Fund - - - - - 1,935 - 4,725 - 9,372 Unrestricted funds	Total - - 66,295 19,123 275,363
		266,917 - 2,225,000 3,929,180 - - -		77,832 - - - - - -	- - - - - 355 -		- - - 86,783 - - -	16,032 2,999 - 30,764 10,802 21,119 (29,680)	360,781 2,999 2,225,000 4,046,727 10,802 21,474 (29,680)
		£6,421,097		£77,832	£355		£86,783	£52,036	£6,638,103

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 £33,005 and the Extraordinary Repair Fund £86,783 will be used for repairs and improvements.

Recoupment & Endowment Capital Fund - - - 1,030 279,291	Social Chapel Housing Grant Fund - - - - 64,360 - 13,472 - - - 77,832 - - - - - - - - - - 718 - - £77,832 £718 Restricted funds	Social Chapel Housing 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
	- - 64,360 13,472 -
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

18. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES

CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
Capital Expenditure that has been authorised but has not been provided for in the Financial Statements 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	2023 £-	2022 £-
	2023 £1,011	2022 £963
	£1,726	£1,444

The lease payments treated as expenditure in these accounts was £1,011 (2022: £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 (2023 : £8,814, 2022: £8,653), plus the figures in relation to the Scheme's deficit being recognised in the SoFA (2023:£NIL, 2022 £1,000), giving a total charge of £8,814 for 2023 (2022: £9,653).

Page 15

ST NICHOLAS' HOSPITAL NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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 from 2013 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 finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the scheme was fully funded. The deficit recovery contributions under the recovery plan in force at each 31 December were as follows:

each 31 December were as follows:
	January 2021 to	January 2023 to
% of pensionable stipends	December 2022	December 2023
Deficit repair contributions	7.1%	0.0%

An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from April 2022, and remained in place until December 2022.

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. However, as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2022 is nil. The movement in the balance sheet liability over 2022 and over 2023 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	2023 2022 - 2,000 - (3,000) - - - 1,000
	- -

*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 and 2023 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 2023	December 2022	December 2021
Discount rate	n/a	n/a	0.0%
Price inflation	n/a	n/a	n/a
Increase to total pensionable payroll	n/a	n/a	-1.5%

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

The sale of the investment property, 7 St Nicholas Road, was completed on 3 May 2024 with net sale monies of £589,164.20, which will be re-invested.