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2024-12-31-accounts

Rustington Convalescent Home

Annual Report and Accounts

31 December 2024

Charity Registration Number 216865

Contents

Reports
Legal and administrative information 1
Trustee’s report 3
Independent auditor’s report 11
Accounts
Statement of financial activities 15
Balance sheet 16
Statement of cash flows 17
Principal accounting policies 18
Notes to the accounts 22

Rustington Convalescent Home

Legal and administrative information

Trustee The Worshipful Company of Carpenters
Court members
The Master Sir L D G Grossman
Senior Warden Mr L S Mallinson
Middle Warden Mr J W Preston
Junior Warden Vice Admiral P M Bennett
Mr V G Morton-Smith (emeritus 15 Jan. 2025)
Mr W S Haynes
Mr J A C Wheeler
Mr M O P May
Mr M R Mathews
Mr H M Lancaster (emeritus 4 Dec. 2024)
Mr M J Samuel
Mr M R Mosley
Mr M W F Felton
Mr M H W Neal
Mr A M Gregory-Smith
Mrs R F Bower
His Hon P W Birts
Brigadier M J Meardon
Mr M J Morrison
Deputy Master Dr A Zimbler
Committee of Management
Chairman Mr M H W Neal
Mr M O P May
Mr F M Wheeler
Mr R C Galbraith
Mr M W F Felton
Mr P W Brading
Mr N S Corderey
Ex-officio members The Master of the Company
Sir L D G Grossman
The Junior Warden
Vice Admiral P M Bennett
Treasurer
Mr M J Samuel
Secretary Brigadier T J Gregson
Home Manager Mrs J Haynes

Rustington Convalescent Home 1

Legal and administrative information

Registered address Carpenters’ Hall
1 Throgmorton Avenue
London
EC2N 2JJ
Home address Sea Road
Rustington
Littlehampton
BN16 2LZ
Charity registration number 216865
Auditors Buzzacott Audit LLP
130 Wood Street
London
EC2V 6DL
Investment managers Newton Investment Management Limited
160 Queen Victoria Street
London
EC4V 4LA
Brown Advisory
1stFloor
18 Hanover Square
London
W1S 1JY
Bankers C. Hoare & Co.
37 Fleet Street
Temple
London
EC4Y 1BT
Solicitors Wedlake Bell LLP
52 Bedford Row
London
WC1R 4LR

Rustington Convalescent Home 2

Trustee’s report Year to 31 December 2024

The Trustee presents its statutory report with the accounts of Rustington Convalescent Home (‘the Home’) for the year ended 31 December 2024.

The accounts have been prepared in accordance with the accounting policies set out on pages 18 to 21 and comply with the charity’s governing documents, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Structure, governance and management

Rustington Convalescent Home was founded by the late Sir Henry Harben, a Past Master of the Worshipful Company of Carpenters, and endowed by him and his daughter, the late Mrs Thomas Wharrie.

Rustington Convalescent Home is a registered charity, charity registration number 216865, and is regulated by two Declarations of Trust dated 23 October 1897 and 9 March 1899. It is administered under two schemes of the Charity Commissioners dated 6 May 1968 and 24 March 1971. The Home is registered with the Care Quality Commission (CQC) as a “Care Home with Nursing”.

The Trustee of the charity is The Worshipful Company of Carpenters which performs its function as Trustee through its Court of Assistants, the members of which are listed on page 1. New Assistants are appointed from the members of the Company, of whom normally one is inducted each year.

The Trustee has considerable experience of the charity through its Court of Assistants. This experience has been gathered over many years and the Court’s knowledge of the workings of the charity is extensive. Further training has been given to members of the Court during the year and is made available when appropriate. Professional advice is sought when required.

The Court annually elects and appoints a Committee of Management which meets three times a year or as necessary. The Clerk of the Worshipful Company of Carpenters is appointed as the Secretary of the Home. The Master and the Junior Warden of the Company are ex-officio members of the Committee of Management, as is its Treasurer.

During the year, the day to day running of the Home is under the control of the Home Manager who is appointed by the Court of the Worshipful Company of Carpenters.

Rustington Convalescent Home 3

Trustee’s report Year to 31 December 2024

Structure, governance and management (continued)

The following members of the Committee of Management were in office during the year and served throughout the year, except where shown.

Committee of Management

Mr M H W Neal (Chairman) Dr C N Birts (retired 17 July 2024) Mr R H Evelegh (retired 17 July 2024) Mr M O P May Mr F M Wheeler Mr R C Galbraith Mr M W F Felton (appointed 7 August 2024) Mr P W Brading (appointed September 2024 Mr N S Corderey (appointed September 2024 Ex officio members Sir L D G Grossman (Master) Vice Admiral P M Bennett (appointed 7th August 2024) Mr M J Samuel (Treasurer)

Key management personnel

The Trustee is the Worshipful Company of Carpenters, represented by its Court which delegates supervision of the Home to a Committee of Management. A list of Court and Committee members is provided on page 1.

Other than as detailed in note 13, no member of the Court or the Committee of Management received any remuneration in respect of their services during the year, nor any reimbursement of expenses from the charity (2024 - £nil). Expenses of £2,398 (2023 - £1,965) were paid to members of the Committee of Management by the Worshipful Company of Carpenters. These were not recharged to the charity.

The line-management of the Home is carried out by the Clerk and the Deputy Clerk/ Financial Controller of the Worshipful Company of Carpenters. Their management of the Home is recharged on a time basis, which is reviewed each year and their remuneration is set and paid by the Trustee.

Routine management of the Home is carried out by its Manager, Mrs Julia Haynes. Her remuneration and that of all members of the Home staff are reviewed on an annual basis by the Committee of Management, which makes recommendations to the Trustee.

Rustington Convalescent Home

4

Trustee’s report Year to 31 December 2024

Structure, governance and management (continued)

Risk management

The Trustee, via the Committee of Management, undertakes an annual review of the principal risks and uncertainties that the charity faces categorising the risks between those affecting the governance and management of the charity, operational risks, financial risks, reputational risks and those which occur because of circumstances outside of the charity's control such as changes in government policy, laws and regulations. They regularly review the measures already in place, or needing to be put in place, to establish policies, systems and procedures to mitigate those risks identified in the annual review and ensure that action is taken to implement changes to those policies, systems and procedures, should they be needed, to minimise or manage any potential impact on the charity should those risks materialise.

The Committee of Management has identified five main areas where risks may occur: governance and management; operational; financial; reputational; and regulatory.

Governance and management looks at the skills and training of the members of the Court and Committee of Management and staff, and the good use of its resources.

Operational looks at the risks inherent in the charity’s activities including in the operation of the Home, poor maintenance, shortcomings in the services provided, difficulties with staff, poor health and safety, lack of a disaster recovery plan, etc.

Financial risks include those arising as a result of poor budgetary control, inappropriate spending, poor accounting, inappropriate investment policies, etc.

Reputational looks at possible damage to the Home’s reputation.

Regulatory looks at the effects of government policies, the consequences of noncompliance with laws and regulations and poor risk assessment.

Having assessed the major risks to which the charity is exposed, the Committee of Management believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks.

The key risks for the charity as identified by the Committee of Management, are described below together with the principal ways in which they are mitigated.

Rustington Convalescent Home 5

Trustee’s report Year to 31 December 2024

Structure, governance and management (continued)

Risk management (continued)

Relationships with related parties and other organisations

The Trustee, the Worshipful Company of Carpenters, is also responsible for the management and administration of three other registered charities, details of which are given in note 13 to the accounts.

Objectives and activities

The principal objective of the charity is to provide short term convalescence following illness or injury as prescribed in accordance with its regulations.

The charity achieves its objective through the running of Rustington Convalescent Home in West Sussex.

Achievements and performance

In setting the objectives and planning the activities of the Home for the year, the Trustee has continued to give careful consideration to the Charity Commission's guidance on public benefit.

The occupancy rates at the Home have been gradually increasing during 2024 reaching an average of 60% from the middle of the year.

The ongoing refurbishment of the east and north exterior facades continued. A programme of interior refurbishment and decoration to modernise and brighten bedrooms and some of the reception rooms is underway. This will also include upgrading plumbing and electrical services to bring them in line with ESG governance.

Rustington Convalescent Home 6

Trustee’s report Year to 31 December 2024

Care Quality Commission

Monthly onsite visits by members of the Committee of Management to the Home are carried out. They provide a report of their observations which is passed to all other committee members. The Committee of Management meets on a quarterly basis to discuss and act on points raised by committee members. Proof of covid vaccination is still requested from any visitors to the Home.

The last full CQC inspection was carried out on 16th October 2023 with an overall rating of Good. The Home also achieved 5 Stars in the Environmental Health inspection of the kitchen.

The Care Quality Commission requires that policies and procedures are in place and reviewed annually or at such time as needed and/or legislation dictates.

Policies and Procedures

All policies were reviewed and updated within the Home during 2024 and a number were also reviewed by a member of the Committee.

Staffing

Staffing remains stable and professional development and mandatory training continued throughout the year.

Training

Training took place in the Safeguarding of Vulnerable Adults, including discussing the relevant issues in the Mental Capacity and Equality and Diversity Acts. Health and Safety, Infection Control, Moving and Handling and Fire Safety, Food Safety and awareness of allergens.

Maintenance

The programme of external refurbishment work has moved to the north and east façades of the building. The opportunity was taken to refurbish all the bedrooms and a staff room on the east facing side of the building. Considerable thought has been given to modernising all plumbing and electrical services in these rooms.

The repair of the clock tower structure is being planned.

Buildings and land

The land and buildings encompassing the rear garden of the Home were sold to a housebuilder on 31 July 2024 for a total of £3M. The last instalment of the sale proceeds was received on 29 January 2025.

The garden is an important feature of the Home and continues to be well maintained. A condition report of the trees in the garden was drafted in 2024 and any recommendations have been acted on. The condition of the trees was considered to be excellent and only minor tree work was required.

Rustington Convalescent Home 7

Trustee’s report Year to 31 December 2024

Financial review

Total income for the year amounted to £4,347,547 (2023 - £1,340,247). Patient fee income was £784,250 (2023 - £580,874). Income from investments was £765,642 (2023 - £755,228). Land was sold for £3,010,000 less costs of £233,494.

During the year the Home incurred charitable expenditure of £2,307,982 (2023 - £2,025,489), of which around 35% (2023 – 42%) related to staff costs.

Net income for the year before investment gains and losses amounted to £1,843,964 (2023 – net expenditure of £849,719).

Realised and unrealised gains on listed investments amounted to £1,942,340 (2023 – £1,003,137) and there was an increase in the value of investment properties of £5,000 (2023 – decrease of £30,000) resulting in a net increase in funds of £3,791,354 (2023 – increase £123,418).

Financial position

The balance sheet shows total reserves of £34,566,907 (2023 - £30,775,553).

These include a permanent endowment fund of £33,751,058 (2023 - £30,017,526).

Of the unrestricted funds of £815,849 (2023 - £758,027), £206,924 (2023 - £239,649) is represented by tangible fixed assets resulting in free reserves of £608,925 (2023 - £518,378).

Reserves policy

The unrestricted general funds are retained to meet the fluctuating cash flow requirements associated with the day to day operations of the Home.

The Trustee aims to hold free reserves of up to six months’ expenditure on unrestricted funds. The current level of free reserves of £608,925 represents 2.9 months’ expenditure and therefore is below the target level. However, with the implementation of a Total Return Policy for the charity’s permanent endowment investments, additional reserves are available to supplement free reserves if necessary.

Investment policy

The charity has a portfolio of listed investments including cash with a market value of £29,911,979 (2023 - £26,223,950) which is managed by Newton Investment Management Limited. In addition it has investments of £478,173 (2023 - £455,031) in COIF Charity Funds.

The investment manager operates within specific guidelines, which are set out and regularly reviewed by the Trustee. The charity has an ethical investment policy and does not invest in equities that are linked with the manufacture or supply of tobacco

The Trustee is satisfied that performance of the charity’s listed investments was in line with market conditions.

Rustington Convalescent Home 8

Trustee’s report Year to 31 December 2024

Financial review (continued)

Investment policy (continued)

The Trustee, by resolution and believing that this approach is in the best interests of the charity, adopted a total return approach to the listed investment endowment funds in accordance with the requirements of the Charity Commission. This approach was applied from 1 January 2021 when the value of the endowment funds at 31 December 2003 of £11,905,444 was used as a proxy for the original value of the endowment funds. In adopting this policy the listed investment permanent endowment funds will not be permitted to fall below the original value of £11,905,444. The original investment value is recorded in the balance sheet as the ‘trust for investment’ with subsequent realised and unrealised gains and undistributed income as ‘unapplied total return’. The fund reconciliation is disclosed in note 7 to the accounts.

The charity also holds two investment properties which are used to generate rental income.

Fundraising statement

The charity accepts donations but does not actively engage in fundraising.

Trustee’s responsibilities statement

The Trustee is responsible for preparing the Trustee’s report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustee to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that year. In preparing these accounts, the Trustee is required to:

Rustington Convalescent Home 9

Trustee’s report Year to 31 December 2024

Trustee’s responsibilities statement (continued)

The Trustee is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enables the Trustee to ensure that the accounts comply with the Charities Act 2011, applicable Charity (Accounts and Reports) Regulations and the provisions of the Trust Deed. The Trustee is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Committee of Management and the Trustee and signed on their behalf on 2 April 2025 by:

M H W Neal

Chairman of the Committee of Management and Member of the Court

Rustington Convalescent Home 10

Independent auditor’s report 31 December 2024

Independent auditor’s report to the Trustee of Rustington Convalescent Home

We have audited the accounts of Rustington Convalescent Home (the ‘charity’) for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the accounts, we have concluded that the Trustee’s use of the going concern basis of accounting in the preparation of the accounts is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue.

Our responsibilities and the responsibilities of the Trustee with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual Report including the Trustee’s report, other than the accounts and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

Rustington Convalescent Home 11

Independent auditor’s report 31 December 2024

Other information (continued)

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the accounts themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of Trustee

As explained more fully in the Trustee’s responsibilities statement, the Trustee is responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the Trustee determines is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the Trustee is responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustee either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so.

Rustington Convalescent Home 12

Independent auditor’s report 31 December 2024

Auditor’s responsibilities for the audit of the accounts

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Rustington Convalescent Home 13

Independent auditor’s report 31 December 2024

Use of our report

This report is made solely to the charity’s Trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s Trustee those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s Trustee as a body, for our audit work, for this report, or for the opinions we have formed.

13 June 2025

Buzzacott Audit LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Buzzacott Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Rustington Convalescent Home 14

Statement of financial activities 31 December 2024

Notes
Unrestricted
funds
£
Permanent
endowment
funds
£		 Total
2024
funds
£		 Unrestricted
funds
£
Permanent
endowment
funds
£
Total
2023
funds
£
Income from:
Donations and legacies
Investment income
1
Charitable activities
. Provision of convalescence
care
Other income
. Other income
. Sale of land
Total income
Expenditure on:
Cost of raising funds
. Investment management
fees
Charitable activities
. Provision of convalescence
care
2
Total expenditure
Net (expenditure) income
before gains and losses on
investments
Net (losses)/ gains on
revaluation of investment
properties
7
Net gains/(losses) on listed
investments
7
Net (expenditure) income
for the year
Transfer between funds
7
Net movement in funds
Reconciliation of funds:
Fund balances brought
forward at 1 January 2024
Fund balances carried
forward at 31 December
2024		 413

21,900
784,250
20,736
—

—

743,742


—


—

2,776,506
413
765,642

784,250

20,736
2,776,506		 1,045
16,920
580,874
3,100
—
—

738,308

—

—

—
1,045

755,228

580,874

3,100

—
827,299
3,520,248		 4,347,547 601,939
738,308		 1,340,247
17,442

2,239,250



178,159


68,732


195,601

2,307,982		 333
1,956,757
164,144

68,732
164,477
2,025,489
2,256,692
246,891		 2,503,583 1,957,090
232,876		 2,189,966
(1,429,393)

—

23,142

3,273,357


5,000


1,919,248
1,843,964

5,000

1,942,390		 (1,355,151)
—
50,668
505,432

(30,000)

952,469
(849,719)

(30,000)

1,003,137
(1,406,251)

1,464,073

5,197,605

**(1,464,073) **
3,791,354

—		 (1,304,483)
1,270,089		 1,427,901
(1,270,089)
123,418
—
57,822
758,027

3,733,532

30,017,526
3,791,354



30,775,553		 (34,394)
792,421
157,812
29,859,714
123,418
30,652,135
815,849 33,751,058

34,566,907		 758,027 30,017,526 30,775,553

All of the charity’s activities derived from continuing operations during the above financial periods.

All recognised gains and losses are included in the above statement of financial activities.

The income and expenditure account above excluding the movement on endowment funds is the unrestricted funds column. Stated before gains and losses on investments and transfers, the net expenditure for the year is £1,429,393 (2023: £1,355,151).

Rustington Convalescent Home 15

Balance Sheet 31 December 2024

Notes
2024
£		 2024
£		 2023
£		 2023
£
Fixed assets
Tangible assets
6
Investments
7
Current assets
Debtors
8
Cash at bank and in hand
Liabilities
Creditors: amounts falling due
within one year
9
Net current assets
Total net assets
The funds of the charity
Capital funds:
Endowment funds
10
Income funds:
Unrestricted funds
. General funds
Total charity funds







282,808
97,611
3,465,302
30,890,152


199,965
91,638		 3,566,759
27,173,981
34,355,454







211,453
 30,740,740



34,813
380,419



**(168,966) **		 291,603
(256,790)













34,566,907 30,775,553



33,751,058


815,849		 30,017,526
758,027
34,566,907 30,775,553

Approved by the Trustee on 2 April 2025 and signed on its behalf by:

M H W Neal

Chairman of the Committee of Management and member of the Court

Rustington Convalescent Home 16

Statement of cash flows 31 December 2024

Notes
2024
£		 2023
£
Cash flow from operating activities:
Net cash provided by (used in) operating activities
A
Cash inflow from investing activities:
Dividends and interest from investments
Purchase of tangible fixed assets
Sale of tangible fixed assets
Proceeds from the disposal of listed investments
Purchase of listed investments

Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January 2024
B
Cash and cash equivalents at 31 December 2024
B
**(1,764,312) **		 (1,312,769)


765,642
(11,576)
2,785,000
5,244,320
**(6,810,809) **		 738,038
(27,916)
—
5,320,601
(5,426,025)
1,952,577 604,698

188,265


313,132
 (708,071)
1,021,203

501,397		 313,132

Notes to the cash flow statement for the year to 31 December 2024.

A Reconciliation of net movement in funds to net cash flow from operating activities

2024
£		 2023
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Sale of tangible fixed assets
Gains on listed investments
(Gains) losses on investment properties
Dividends and interest from investments
Decrease in debtors
(Decrease) increase in creditors
Net cash used in operating activities
3,791,354
113,033
3,010,000
(1,942,390)
(5,000)
(765,642)
142,157
(87,824)		 123,418
115,689
—
(1,003,137)
30,000
(738,038)
140,357
18,942
(1,764,312) (1,312,769)

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2024
£		 2023
£
Cash at bank and in hand
Cash held by investment managers
Total cash and cash equivalents		 97,611
403,768		 91,638
221,494
501,397 313,132

C Reconciliation of net funds

At 1
January
2023
£		 Cash
flows
£		 At 31
December
2024
£
Cash and cash equivalents 313,132 188,265 501,397

Rustington Convalescent Home 17

Principal accounting policies 31 December 2024

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Basis of preparation

These accounts have been prepared for the year to 31 December 2024 with comparative information presented for the year ended 31 December 2023.

The accounts have been prepared under the historical cost convention with items initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy.

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the Trustee and management to make significant judgements and estimates.

The items in the accounts where the judgements and estimates have been made include:

Going concern

The Trustee has assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustee has made this assessment in respect of a period of at least one year from the date of approval of these accounts.

The Trustee has concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustee is of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.

Rustington Convalescent Home 18

Principal accounting policies 31 December 2024

Income

Income is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty and it is probable that the income will be received. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure and the basis of apportioning costs

Expenditure is recognised as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

All expenditure is stated inclusive of irrecoverable VAT.

The majority of costs are directly attributable to specific activities and any apportionment between headings is negligible.

Rustington Convalescent Home 19

Principal accounting policies 31 December 2024

Tangible fixed assets

Tangible fixed assets were included in the accounts at a valuation based on open market value as at 31 December 1999 which is treated as deemed cost.

Since that date additions costing more than £500 are capitalised and included at cost including any incidental expenses of acquisition.

Depreciation is provided to write off each asset over its estimated useful life as follows:

Freehold buildings 50 years
Furniture, fixtures and fittings 3 to 10 years

No depreciation has been provided on freehold land.

Investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

Investment properties are included at their fair value using market values based on a desktop valuation by independent chartered surveyors.

Realised gains (or losses) are calculated as the difference between disposal proceeds and the opening carrying value or the purchase value if acquired subsequent to the first day of the financial year. Unrealised gains (or losses) are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt.

Rustington Convalescent Home 20

Principal accounting policies 31 December 2024

Fund accounting

Endowment funds comprise monies which must be held indefinitely as capital. The charity has adopted a total return approach to its permanent endowment listed investments and accordingly income and gains on these investments are added to the unapplied total return fund which is available for transfer to unrestricted funds, when required.

Designated funds comprise monies set aside out of unrestricted general funds for specific future purposes or projects.

General funds represent those monies which are available for application towards achieving any charitable purpose that falls within the charity's charitable objects.

Pension costs

The charity is a participating employer in a defined benefit scheme, operated by the Worshipful Company of Carpenters. The scheme is a multi-employer scheme and the charity is unable to identify its share of the underlying assets and liabilities in the scheme on a consistent and reasonable basis. Therefore, as required by FRS 102, the charity accounts for the contributions to the scheme as if it were a defined contribution scheme.

Contributions in respect of the defined contribution scheme are recognised in the statement of financial activities when payable.

Rustington Convalescent Home 21

Notes to the accounts 31 December 2024

1 Investment income

Total
2024
£
743,742
21,900
765,642		 Total
2023
£
738,308
16,920
755,228
Income from listed investments
Income from investment properties
Total funds

Following the implementation of the total return policy (see note 7), income from listed investments forms part of the permanent endowment fund. The income from investment properties in unrestricted.

2 Provision of convalescence care

Provision of convalescence care
Total
2024
£
831,600
84,617
7,750
287,061
243,839
711,764
26,659
46,888
43,804
24,000
2,307,982		 Total
2023
£
Residential, nursing and establishment costs
Staff costs
Catering
GP surgery
Administration (including staff costs)
Establishment
. Depreciation, rent, rates etc
. Cyclical maintenance
Grounds (including staff costs)
Expenses allocated by Worshipful Company of Carpenters
Professional fees
Governance costs
. Auditor’s remuneration
Total funds		 744,106
68,563
7,750
263,638
225,255
444,653
24,628
40,042
183,754
23,100
2,025,489

All charitable activities expenditure in 2024 and 2023 was unrestricted except for depreciation of £68,732 (2023 - £68,732), which is attributable to permanent endowment funds.

3 Net expenditure before gains and losses on investments

This is stated after charging:

2024
£		 2023
£
Staff costs (note 4)
Auditor’s remuneration (including VAT)
Depreciation		 955,177
24,000
113,033		 852,345
23,100
115,689

Rustington Convalescent Home 22

Notes to the accounts 31 December 2024

2024
£		 2023
£
Staff costs during the year were as follows:
Wages and salaries
Social security costs
Other pension costs
Other staff costs
790,153
57,818
66,864
40,342		 690,338
47,076
61,089
53,842
955,177 852,345
Staff costs per function were as follows:
Nursing
Administration
Catering and domestic

547,552
123,577
284,048		 488,898
108,239
255,208
955,177 852,345

One employee earned £70,000 - £80,000 during the year, including taxable benefits but excluding employer’s national insurance and pension contributions (2023 – one).

The average number of employees during the year analysed by function was as follows:

Nursing
Administration
Catering and domestic		 2024
Average
Number		 2023
Average
Number
24
2
25		 21
2
24
51 47

No member of the Court or the Committee of Management received any remuneration in respect of their services during the year nor any reimbursement of expenses from the charity (2023 - £nil). Expenses of £2,398 (2023 - £nil) were paid to members of the Committee of Management by the Worshipful Company of Carpenters. These were not recharged to the charity.

The key management personnel of the charity in charge of controlling, directing, running and operating the charity on a day to day basis comprise the members of the Court, the Committee of Management, the Clerk and the Deputy Clerk/Financial Controller of the Worshipful Company of Carpenters and the Home Manager. The total remuneration (including taxable benefits and employer’s national insurance and pension contributions) for key management personnel in the year was £114,022 (2023 - £99,349). This includes relevant costs allocated from the Worshipful Company of Carpenters.

5 Taxation

Rustington Convalescent Home is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

Rustington Convalescent Home 23

Notes to the accounts 31 December 2024

6 Tangible fixed assets

Tangible fixed assets
Freehold
land
£		 Freehold
buildings
£		 Furniture,
fixtures
and fittings
£		 Total
£
Cost
At 1 January 2024
Additions
At 31 December 2024
Depreciation
At 1 January 2024
Charge for year
At 31 December 2024
Net book values
At 31 December 2024
At 31 December 2023		 467,000
—		 3,436,611
—		 525,159
11,576		 4,428,770
11,576
467,000 3,436,611 536,735 4,440,346
—
—		 576,501
68,732		 285,510
44,301		 862,011
113,033
— 645,233 329,811 975,044
467,000 2,791,378 206,924 3,465,302
467,000 2,860,110 239,649 3,566,759

Freehold land and buildings were valued by Tod Miller Thomas, Chartered Surveyors, at their open market value as at 31 December 1999 for the purposes of inclusion in the charity’s accounts. Subsequent expenditure is included at cost.

As permitted under FRS 102, the charity continues to adopt a policy of not revaluing its tangible fixed assets and the original valuation is treated as the deemed cost.

7 Investments

At 31 December 2024 fixed asset investments comprised:

2024
£		 2023
£
Freehold investment property
Listed investments and cash held for re-investment		 500,000
30,390,152		 495,000
26,678,981
30,890,152 27,173,981
2024
£		 2023
£
Freehold investment property
Market value at 1 January 2024
(Loss)/gain on revaluation
Market value at 31 December 2024		 495,000
5,000		 525,000
(30,000)
500,000 495,000

Investment properties comprise The Lodge House and The Lodge Flat. These properties are included on the balance sheet at their open market value based on a desktop valuation by Daniel Watney, chartered surveyors.

Rustington Convalescent Home 24

Notes to the accounts 31 December 2024

7 Investments (continued)

Investments(continued)
Listed investments
Market value at 1 January 2024
Additions at cost
Disposals proceeds
Net investment gains/(losses)
Market value at 31 December 2024
Cash held by investment managers for re-investment		 2024
£
26,457,487
6,810,809
(5,224,320)
1,942,390
29,986,366
403,786
30,390,152		 2023
£
25,348,926
5,426,025
(5,338,149)
1,020,685
26,457,487
221,494
26,678,981

The permanent endowment fund investments and movements in the unapplied total return are set out below.

Trust for
investment
£		 Unapplied
total return
£		 2024
Total
£
2023
Total
£
At 1 January 2024
. Base value of the permanent endowment
. Unapplied total return
Total
Movements during the year:
. Invested from sale of land
. Investment income
. Investment managers fees
. Realised and unrealised gains/(losses)
Extraction of income from total return
At 31 December 2024		 11,905,444
—		 —
13,789,838		 11,905,444
11,905,444
13,789,838
13,533,294
11,905,444
2,500,000
—
—
—		 13,789,838
—
743,742
(178,159)
1,774,262		 25,695,282
25,438,738
2,500,000
—
743,742
738,308
(178,159)
(164,144)
1,774,262
952,469
14,405,444 16,129,683 30,535,127
26,965,371
— (1,464,073) (1,464,073)
(1,270,089)
14,405,444 14,665,610 29,071,054
25,695,282

When adopting total return accounting with effect from 1 January 2022, in the absence of reliable records of the original donations, the Trustee considered that the market values of the investments as recorded as at 31 December 2003 were appropriate to be considered as the initial value of the trust for investment. Since that figure sets the baseline below which disposals may not be made, taking a higher value than the actual original donations was considered to be prudent.

During the year, a transfer of £1,464,073 (2023: £1,270,089) was made from the unapplied total return to unrestricted funds.

Rustington Convalescent Home 25

Notes to the accounts 31 December 2024

8 Debtors

Debtors
2024
£		 2023
£
Patient debtors
Prepayments and accrued income		 3,868
278,940		 5,182
194,783
282,808 199,965

9 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2024
£		 2023
£
Trade creditors
Other creditors
Accruals
Amounts due to the Worshipful Company of Carpenters (note 13)		 34,624
34,058
77,988
22,296		 74,397
27,850
134,543
20,000
168,966 256,790

10 Endowment funds

The funds of the charity include permanently endowed funds which were established in 1897 by Sir Henry Harben, Past Master of the Carpenters’ Company, and subsequently by his daughter, Mrs Thomas Wharrie.

The original endowment consisted of the freehold land and buildings comprising the Home and shares.

11 Analysis of net assets between funds

Analysis of net assets between funds
General
funds
£		 Endowment
funds
£		 Total
2024
£
Fund balances at 31 December 2024 are represented
by:
Tangible fixed assets
Investments
Net current assets
Total net assets		 206,924
993,571
(384,646)		 3,258,378
29,896,581
596,099		 3,465,302
30,890,152
211,453
815,849 33,751,058 34,566,907
General
funds
£		 Endowment
funds
£		 Total
2023
£
Fund balances at 31 December 2023 are represented
by:
Tangible fixed assets
Investments
Net current assets
Total net assets		 239,649
983,969
(465,591)		 3,327,110
26,190,012
500,404		 3,566,759
27,173,981
34,813
758,027 30,017,526 30,775,553

Rustington Convalescent Home 26

Notes to the accounts 31 December 2024

12 Pension commitments

Certain employees and former employees of the charity are members of the contributory pension scheme operated by the Worshipful Company of Carpenters, known as the “Carpenters’ Company Pension and Assurance Scheme” which provides benefits based on final pensionable salary. The assets of the scheme are held separately from those of the charity and sponsoring employer, being invested with Legal and General Assurance in an Insurance Contract.

The contributions are determined on the basis of triennial valuations by a qualified actuary using the attained age method. The employers’ contribution rate was 28.3% of pensionable pay and the employees’ contribution rate was 6% of pensionable pay. The total charge for the year in these accounts is £nil (2023 - £nil).

A triennial valuation was carried out as at 1 July 2024 and showed that the market value of the scheme’s assets was £2,190,000 and that the ongoing funding level was 77%. The assumptions which have the most significant effect on the results of the valuation were as follows:

The scheme has been closed to new members and the final active member ceased making contributions in October 2019. New employees are able to join a group personal pension scheme administered by Standard Life.

The scheme is a multi-employer scheme and the charity is unable to identify its share of the underlying assets and liabilities in the scheme on a consistent and reasonable basis. Therefore, as required by FRS 102, the charity accounts for the contributions to the scheme as if it were a defined contribution scheme.

The following information is based upon the initial results from the full actuarial valuation of the scheme as at 1 July 2024.

30 June
2024
£		 30 June
2023
£
Total market value of assets
Present value of scheme liabilities
(Deficit)/ surplus in the scheme – netpension(liability)/asset		 2,190,000
(2,827,000)		 2,345,000
(2,904,000)
(637,000) (559,000)

Rustington Convalescent Home 27

Notes to the accounts 31 December 2024

13 Related party transactions and connected charities

The Trustee, The Worshipful Company of Carpenters, is also responsible for the management and administration of the following charities, which are registered with the Charity Commission:

General administrative expenses and salaries allocated from the Worshipful Company of Carpenters to the charity during the year amounted to £44,592 (2023 - £40,042). The balance due to the Worshipful Company of Carpenters at the year end was £22,296 (2023 - £20,000). Expenses of £2,398 (2023 - £1,965) were paid by the Worshipful Company of Carpenters to members of the Committee of Management. These were not recharged to the charity.

Surveyor costs in connection with Rustington Convalescent Home of £3,800 were paid to Mr R C Galbraith during the year (2023: £3,800 to Mr R C Galbraith and James Boatman Chartered Surveyors). Mr J W Preston is an Equity Partner of James Boatman Chartered Surveyors. Mr R C Galbraith and Mr J W Preston are Members of the Committee of Management.

Other than the transactions stated above there were no other related party transactions during the year requiring disclosure.

Rustington Convalescent Home 28