THE BICKHAM HOME
BOWDON
FINANCIAL STATEMENTS FOR THE YEAR ENDED
31[st] MARCH 2022
CHARITY NUMBER: 219495
ALLEN MILLS HOWARD LIMITED CHARTERED ACCOUNTANTS AND STATUTORY AUDITORS ALTRINCHAM
THE BICKHAM HOME, BOWDON
INDEX TO FINANCIAL STATEMENTS FOR THE YEAR ENDED
31[st] MARCH 2022
| Page | |
|---|---|
| Reference and Administrative Information | 1 |
| Trustees' Report | 2 |
| Auditors' Report | 6 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Statement of Financial Cash Flows | 11 |
| Notes to the Financial Statements | 12 |
| Detailed Income and Expenditure Account | 23 |
THE BICKHAM HOME
REFERENCE AND ADMINISTRATIVE INFORMATION
Trustees
Dr C J Davies (Chairman) Mrs C M Gallaway Mr J O’Donnell Mrs J Ravenscroft Mr I Macklin Mr P Long
Address
Bickham House Green Walk Bowdon Cheshire WA14 2SN
Charity Number: 219495
Auditors
Allen Mills Howard Limited Chartered Accountants and Statutory Auditors Lewis House 56 Manchester Road Altrincham WA14 4PJ
Bankers
Barclays Bank 48-50 George Street Altrincham Cheshire WA14 1RH
Investment Managers
Barclays Wealth 1[st] Floor 3 Hardman Street Spinningfields Manchester M3 3HF
Treasurer
Mrs T O’Toole
1
THE BICKHAM HOME, BOWDON
TRUSTEES’ REPORT FOR THE YEAR ENDED 31[st] MARCH 2022
The trustees present their report with the financial statements of the charity for the year ended 31st March 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity trust instrument, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing the accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102).
STRUCTURE, GOVERNANCE AND MANAGEMENT
The trust is an unincorporated trust, constituted under a trust instrument dated 12[th] March 1954 as amended by the scheme of 20[th] July 2004. The trust was set up in accordance with the Will of the late Helen Constance Bickham.
The trustees are responsible for the overall supervision and management of the Home, with the day to day management delegated to the Registered Manager and the financial affairs to the Treasurer.
The trustees comprise:
Dr C J Davies – BM BS MRCP General Medical Practitioner [Chairperson] Mrs C M Gallaway Mr J O’Donnell – Notary Public (retired 31[st] August 2022) Mrs J Ravenscroft Mr I Macklin Mr P Long – Chartered Accountant Mr S Wallwork – Corporate Solicitor (from 1[st] September 2022) Supported by: Mrs H Taylor – Registered Manager until 31.12.21 Ms D Paris – Assistant manager and Interim Manager from 1.1.22 Mrs T O’Toole ACMA – Treasurer Ms M Parry – CareSolve Management Consultancy
OBJECTIVES AND ACTIVITIES
The charity’s objective is to care for our residents, creating a welcoming home for elderly people whilst ensuring they feel safe in an environment that they are familiar with. The Bickham Home currently caters for up to 26 residents, including the capacity for respite care. The Home consistently provides full attention to detail with genuine warmth towards all residents and offers around the clock assistance of the highest standard.
The last Care Quality Commission inspection was in November 2020 and, again, they rated the Home as Good in all areas. The Home is providing a first-class service that strives to achieve continued improvements.
PUBLIC BENEFIT
The trustees confirm that they have, when and where necessary to do so, paid regard to the Charity Commission’s Guidance on Public Benefit when considering and making their decisions.
The trustees have allowed the Home and gardens to host various charitable events each year to assist fundraising and to provide a local awareness of the facilities which are on offer at the Home. However, this has been curtailed due to the Covid restrictions. The kitchen garden is currently being utilised by local gardeners and our chef for the growing of vegetables and fruit, some of which is used in the Home for the benefit of the residents.
TRAINING
Staff training has always been a high priority with all staff encouraged to sign up for Diploma qualifications at progressive levels. Ongoing staff training continues with both in-house and external accredited courses. University and 6[th] Form work experience students who intend going on to medical, nursing or care degrees are employed on temporary contracts to assist their education and care experiences, although this has currently been suspended due to Covid. New trustees are appointed from time to time to best provide for the interests of the Charity. The process of appointment of Trustees is part of our constitutional review which has been considerably delayed due to funding and Covid issues. New trustees are introduced to the workings of the Home and are kept updated through regular trustees’ meetings and communication throughout the year.
2
THE BICKHAM HOME, BOWDON
TRUSTEES’ REPORT FOR THE YEAR ENDED 31[st] MARCH 2022
REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR
The charity aims to generate a reasonable surplus each year in order to properly fund the day to day running of the Home and to provide funds for exceptional maintenance and improvements. However, this has proved to be challenging particularly over the last year. We have continued to be overshadowed by the effects of the Covid-19 pandemic as well as the ongoing consequences of Brexit on the UK workforce particularly within the care home industry. This has affected new resident admissions and resulted in significant increases in staff costs particularly those of temporary staff. There have also been significant increases in utility costs and expenses related to maintenance of the Bickham property. Unlike last year, we have been unable to rely on the same level of government Covid financial support and consequently we have made a significant loss of £72,873 in the year ending 31[st] March 2022.
The Trustees are very concerned that we have had to rely on our cash reserves in 2 out of the last 3 financial years. If we continue to have to use expensive temporary staff and it remains difficult to attract new residents, we are worried that we will need to liquidate some of our legacy investments that are in our two Barclays charity funds. The Trustees are also concerned that accessing these funds may be out with the stipulations of the charity’s 1954 Trust Scheme.
During this financial year we have worked hard to try and reduce costs. The Home has changed their contractor for the washing machines and driers at a significantly reduced cost and also renegotiated cheaper contracts for telephone and broadband. New wood window frames have been fitted the ground floor extension rooms and roof repairs have been carried out to prevent recurrent leaks.
Our management continues to ensure that the Home is well led, delivers a high standard of care for its residents and builds on its excellent reputation. However, our registered manager, Mrs H Taylor, left the charity at the end of 2021 and we have had difficulty appointing a suitable replacement. In the interim our assistant managers have stepped up as interim manager whilst the role of nominated individual for the home has been assigned to Mrs M Parry from the CareSolve management consultancy, who have been supporting our management. We have now recruited a new experienced home manager who commenced work on 3[rd] October 2022.
Financial Results
The Trust’s total income has decreased by 1.5% over the previous year. Although resident fees increased slightly by 2.8%, donations and grants were down as we only received around half the Covid-19 support from the government that we received in the 2020-2021 financial year. See note 2 to the accounts.
Total expenditure increased by approximately 7%. This was due to costs of CareSolve, our management consultants and the increase in repairs partly as a result of delayed works as a result of the Pandemic restrictions.
The charity held reserves at the balance sheet date of £1,172,099 (2021: £1,205,416). Of this amount, the endowment fund totaled £220,731 (2021: £217,442) and unrestricted (general) reserves totaled £951,368 (2021: £987,974).
Reserves policy
The trustees aim to maintain free reserves in unrestricted funds at a level which at least exceeds three months of charitable expenditure. Based on the budgeted expenditure for 2022/23, this requires free reserves to be held of approximately £265,000. The Trustees have previously considered that this level will provide sufficient funds to meet the inevitable capital expenditure needed to maintain the high standard of care to residents in a Victorian Mansion house, to fully comply with any updates required to CQC requirements and to cover any unexpected falls in occupancy levels. However, as mentioned above the Trustees now have serious concerns that our reserves in unrestricted funds are insufficient to operate this policy without liquidating some of our legacy investments. This will only become more problematic if our losses continue into subsequent years.
3
THE BICKHAM HOME, BOWDON
TRUSTEES’ REPORT FOR THE YEAR ENDED 31[st] MARCH 2022
Investment Management and Policy
The charity’s investments are managed by Barclays Wealth. There are no restrictions on the charity’s power to invest.
The trustees’ investment powers are set out in the charity’s trust instrument. The investment strategy is set by the trustees and takes into account income requirements, the risk profile and the investment manager’s views of the market prospects in the medium term.
The policy is to maximise total return through a diversified portfolio whilst providing a level of income advised by the trustees from time to time. The performance of the portfolio and the charity’s investment strategy are reviewed by the trustees and their representatives who meet with the investment manager at least twice a year.
During the year the charity’s investment consisted of a pooled investment (Barclays Charity Fund). This investment is made up of Developed Market Equity 58%, Emerging Market Equity 7%, Property 9% and Cash and Bonds 21%. The remaining balance is made up of Alternative Trading Strategies and Commodities.
The charity investment achieved an income yield of 2.5% (2021: 2.6%).
Throughout the year the trustees have continued to liaise closely with the charity’s investment adviser and seek their advice. Given that the charity has no immediate need to realise value from the portfolio other than through income, and given that the trustees’ intention is to hold investments over the longer term, the advice given is to monitor the investment performance but not to radically amend the investment policy that has been followed in recent years.
The trustees will continue to review performance but, given that they view their investments as being for the long term, they remain confident that the policy adopted is appropriate for the charity.
Key Management Personnel remuneration
The trustees consider the board of trustees, the Registered Manager and Treasurer as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All trustees give this time freely and no trustee remuneration was paid in the year.
FUTURE PLANS
The Trustees have serious concerns about the long viability of the charity in its current form, particularly if we cannot keep resident occupancy levels at or above budgeted levels to provide the income needed to offset increasing expenditure pressures. It is also imperative that we try and reduce temporary staff expenditure which is currently at levels of 10% of total income. We anticipate that maintenance of our ageing Victorian building will remain problematic and expensive. If the present financial pressures continue, then we shall need to access our legacy investments. This may require permission from the Charity Commission and may require a change of Trust Scheme. The Trustees are currently seeking advice from our legal team and the Charity Commission. We have also undertaken a consultation process with interested parties including residents, staff, and the local authority. We have now recruited a new, experienced registered manager, who is due to start soon, which will reduce the role and expense of CareSolve during the next financial year.
RISK MANAGEMENT
The trustees have considered the major risks to which the charity is exposed and have reviewed those risks and established systems and procedures to manage those risks [please see above].
AUDIT INFORMATION
The Trustees who held office at the date of approval of this Trustees’ report confirm that, so far as they are individually aware, there is no relevant audit information of which the auditor is unaware. Each of the Trustees has taken all the steps he or she ought to have taken as a Trustee to make himself or herself aware of any relevant audit information and to establish that the Trust’s auditors are aware of that information.
TRUSTEES INDEMNITY ARRANGEMENTS
The charity has Directors’ and Officers’ insurance to indemnify the trustees to the extent permitted by law in respect of all liabilities to third parties arising out of, or in connection with, their execution of their powers, duties and responsibilities as trustees of the charity.
4
THE BICKHAM HOME, BOWDON
TRUSTEES’ REPORT FOR THE YEAR ENDED 31[st] MARCH 2022
STATEMENT OF THE TRUSTEES' RESPONSIBILITIES
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust instrument require the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgments and estimates that are reasonable and prudent;
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state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue operating.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity so as to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, and the provision of the trust instrument. 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.
Approved by the trustees on 18[th] October 2022 and signed on their behalf by:
…………………………………….. Dr C J Davies – Chair of Trustees during the accounting period
5
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE BICKHAM HOME, BOWDON
Opinion
We have audited the financial statements of The Bickham Home (the 'charity') for the year ended 31st March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31st March 2022 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard in the circumstances set out in note 18 to the financial statements, 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 financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any materials uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, 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
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
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the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements ; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
6
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE BICKHAM HOME, BOWDON
Responsibilities of trustees
As explained more fully in the Statement of Trustees Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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 financial statements.
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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
As part of designing our audit work, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud.
In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain.
We also considered potential financial or other pressures, opportunity and motivation for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing or manual journals and key exanimate and judgements made by management.
We made enquiries of management with regards to compliance with applicable laws and regulations, specifically the Care Quality Commission (CQC), and corroborated any necessary evidence to relevant information, for example, minutes of the directors' meetings or CQC reports.
We addressed the risk of management override of internal controls including testing journals and evaluating whether there was evidence of bias by management that represented a risk of material misstatement due to fraud.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
7
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE BICKHAM HOME, BOWDON
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and regulations made under Section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Allen Mills Howard Limited Chartered Accountants and Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Lewis House 56 Manchester Road Altrincham Cheshire WA14 4PJ
Date: 31[st] October 2022
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THE BICKHAM HOME, BOWDON
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[st] MARCH 2022
| 2022 | 2022 |
2022 | 2021 |
||
|---|---|---|---|---|---|
| Note | £ | £ | £ | £ | |
| Unrestricted | Endowment | Total | Total | ||
| Funds | Funds | Funds | Funds | ||
| Income and endowments from: | |||||
| Donations and grants | 2 | 57,918 | - | 57,918 | 95,697 |
| Charitable activities: | |||||
| Operation of care home | 3 | 901,129 | - | 901,129 | 875,922 |
| Investment income | 4 | 12,353 | 5,556 | 17,909 | 17,932 |
| Other incoming resources | - | - | - | 2,912 | |
| _ | _ | _ | _ | ||
| Total income and endowments | 971,400 | 5,556 | 976,956 | 992,463 | |
| _ | _ | _ | _ | ||
| Expenditure on: | |||||
| Raising funds: | |||||
| Investment management costs | 1,451 | 651 | 2,102 | 1,830 | |
| Charitable activities: | |||||
| Operation of care home | 5 | 1,047,727 | - | 1,047,727 | 979,611 |
| _ | _ | _ | _ | ||
| Total | 1,049,178 | 651 | 1,049,829 | 981,441 | |
| _ | _ | _ | _ | ||
| Net income/(expenditure) | |||||
| before gains/(losses) on investments | (77,778) | 4,905 | (72,873) | 11,022 | |
| Net gains on investments | 27,257 | 12,299 | 39,556 | 121,831 | |
| Transfers between funds | 13,915 | (13,915) | - | - | |
| _ | _ | _ | _ | ||
| Net movement in funds | (36,606) | 3,289 | (33,317) | 132,853 | |
| Reconciliation of funds | |||||
| Total funds brought forward | 987,974 | 217,442 | 1,205,416 | 1,072,563 | |
| _ | _ | _ | _ | ||
| Total funds carried forward | 951,368 _ |
220,731 _ |
1,172,099 _ |
1,205,416 _ |
The Statement of Financial Activities includes all gains and losses recognised in the year.
All income and expenditure derives from continuing activities.
9
THE BICKHAM HOME, BOWDON
BALANCE SHEET AS AT 31[st] MARCH 2022
| 2022 | 2022 |
2022 |
2021 |
||
|---|---|---|---|---|---|
| Unrestricted | Endowment | Total | Total | ||
| Funds | Funds | Funds | Funds | ||
| Note | £ | £ | £ | £ | |
| Fixed assets | |||||
| Tangible assets | 9 | 341,010 | - | 341,010 | 374,261 |
| Investments | 10 | 489,165 | 220,731 | 709,896 | 670,336 |
| _ | _ | _ | _ | ||
| Total fixed assets | 830,175 | 220,731 | 1,050,906 | 1,044,597 | |
| _ | _ | _ | _ | ||
| Current assets | |||||
| Debtors | 11 | 21,145 | - | 21,145 | 14,708 |
| Cash at Bank and in Hand | 179,484 | - | 179,484 | 200,302 | |
| _ | _ | _ | _ | ||
| Total current assets | 200,629 | - | 200,629 | 215,010 | |
| _ | _ | _ | _ | ||
| Liabilities | |||||
| Creditors falling due within one year | 12 |
(79,436) | - | (79,436) | (54,191) |
| _ | _ | _ | _ | ||
| Net current assets | 121,193 | - | 121,193 | 160,819 | |
| _ | _ | _ | _ | ||
| Net assets | 951,368 | 220,731 | 1,172,099 | 1,205,416 | |
| _ | _ | _ | _ | ||
| The funds of the charity: | 13 | ||||
| Endowment funds | - | 220,731 | 220,731 | 217,442 | |
| Unrestricted income funds | 951,368 | - | 951,368 | 987,974 | |
| _ | _ | _ | _ | ||
| Total charity funds | 951,368 _ |
220,731 _ |
1,172,099 _ |
1,205,416 _ |
The financial statements were approved by the trustees on 18[th] October 2022 and signed on their behalf by:
……………………………… P Long – Trustee
……………………………… C J Davies – Trustee
10
THE BICKHAM HOME, BOWDON
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31[st] MARCH 2022
| Note Net cash used in operating activities 16 Cash flows from investing activities: Investment income Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalent brought forward Cash and cash equivalent carried forward 17 |
Total Funds 2022 £ (38,723) _ 17,909 _ 17,909 _ (20,814) 200,302 _ 179,488 _ |
Total Funds 2021 £ 51,625 _ 17,932 _ 17,932 _ 69,557 130,745 _ 200,302 _ |
|---|---|---|
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THE BICKHAM HOME, BOWDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2022
1. Accounting policies
Basis of preparation
The financial statements of the charity, which is a public benefit entity under FRS102, have been prepared in accordance with the Charities SORP (FRS102) ‘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 (FRS102) (effective 1[st] January 2019)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
The presentational currency of the financial statements is the Pound Sterling (£).
Preparation of the accounts on a going concern basis
The charity has prepared budgets which indicate that the charity has sufficient reserves in order to meet its liabilities as they fall due and, on that basis, the trustees are satisfied that it remains appropriate to prepare the financial statements on a going concern basis.
Funds Structure
The charity has a single permanent endowment. The endowment provides for the trustees to invest the capital in perpetuity as it is managed on a total return basis. The trustees, at their discretion, may allocate any part of the unapplied total return to the general purpose of the charity.
Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects.
Income recognition
All incoming resources are recognised once the charity has entitlement to the resources, it is certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.
Incoming resources from Charitable Activities comprise of fees receivable from private individuals and local authorities.
Investment income comprises dividends and interest received. Dividends are recognised on a cash received basis, interest on funds held on deposit is recognised on a receivable basis when the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
Government and local authority grant income is recognised on a receivable basis when there is evidence of entitlement, receipt is probable and amounts can be measured reliably.
In accordance with the Charities SORP FRS102, volunteer time is not recognised.
Expenditure recognition
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
All expenditure is stated inclusive of irrecoverable VAT.
Expenditure on raising funds comprise investment manager’s fees.
Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.
Direct charitable expenditure comprises all expenditure directly relating to the objects of the charity. When necessary, costs are allocated between direct charitable expenditure, support costs in proportion to time spent and estimated use of services and materials.
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THE BICKHAM HOME, BOWDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2022
Tangible fixed assets
No value is included in the accounts in respect of the property, household goods and equipment transferred from the Estate of Miss H C Bickham deceased in 1954. Subsequent capital expenditure on replacing equipment has been written off in the year it was incurred. However, the net book value of the building and equipment, if depreciated, would not be material.
Since 2012, land and buildings is stated in the balance sheet at cost. Capital items costing less than £5,000 are written off as an expense as acquired.
Depreciation
Depreciation is provided at the following annual rate in order to write off each asset over its estimated useful life.
Land and buildings 5% on cost Fixtures and fittings 10% on cost
Fixed asset investments
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. The statement of financial activities includes the net gains or losses arising on the revaluation and disposals throughout the year.
The trust does not acquire put options, derivatives or other complex financial instruments.
The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
Realised gains and losses
All gains and losses are posted to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sale proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later).
Debtors
Trade and other debtors are recognised at the transaction price less any impairment.
Cash at bank and in hand
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short-term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.
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 normally recognised at the amount the charity anticipates it will pay to settle the debt.
Pensions
Employees of the charity are entitled to join a defined contribution ‘money purchase’ scheme. The charity contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.
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THE BICKHAM HOME, BOWDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2022
Operating leases
Rentals paid under operating leases are charged to the income and expenditure account on a straight-line basis over the period of the lease.
Termination benefits
Termination benefits are recognised immediately as an expense when there is a clear decision or commitment to terminate the employment or provide such termination benefits.
| 2. Donations and grants Gifts Grants received |
2022 £ 8,127 49,791 __ 57,918 ____ |
2021 £ 8,399 87,298 __ 95,697 ____ |
|---|---|---|
Grants received consist of Covid-19 Support Grants from Trafford Council of £43,416 (2021: £75,452) and HMRC Coronavirus Job Retention Scheme Grants of £6,375 (2021: £11,846).
| 3. | Operation of care home | 2022 | 2021 |
|---|---|---|---|
| £ | £ | ||
| Residents’ fees | 897,651 | 873,650 | |
| Residents’ charges | 3,478 | 2,272 | |
| ______ | ______ | ||
| 901,129 | 875,922 | ||
| ______ | ______ | ||
| 4. | Investment income | 2022 | 2021 |
| £ | £ | ||
| Listed investments | 17,870 | 17,750 | |
| Bank interest | 39 | 182 | |
| ______ | ______ | ||
| 17,909 ______ |
17,932 ______ |
14
THE BICKHAM HOME, BOWDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2022
| 2022 5. Analysis of charitable expenditure £ Staff costs 531,681 Social security 40,144 Pension costs 10,283 Termination payment 14,420 Temporary staff 102,003 Food and provisions 52,267 Insurance 15,096 Council tax 1,720 Heat and light 34,765 Water charges 5,790 Garden upkeep 6,000 Cleaning and waste 31,164 Repairs 68,684 Care consumables 7,548 Postage, telephone and stationery 5,057 Depreciation 33,251 Registration fees 4,270 Sundries 696 Staff Training 6,008 Legal and professional fees 3,809 Entertainment for residents 3,673 Computer software 5,709 Management consultants 45,425 Support costs (see note 6) 14,436 Governance costs (see note 6) 3,828 _ 1,047,727 _ |
2021 £ 547,738 37,892 10,577 - 97,153 53,352 11,645 1,643 28,808 15,951 6,000 26,114 49,491 10,510 7,053 33,251 4,270 4,454 3,176 1,183 2,359 5,109 2,305 15,977 3,600 _ 979,611 _ |
|---|---|
No employees had emoluments in excess of £60,000 during the year (2021: none).
Temporary staff are used by the clients to cover staff holidays and illnesses.
The average number of employees during the year was:
| Provision of care | 2022 28 ______ |
2021 29 ______ |
|---|---|---|
The Key Management Personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis comprises the trustees, manager and treasurer. Total amount of employee benefits received by Key Management Personnel in the year (including Employers NICs and pension contributions) was £74,646 (2021: £70,373).
15
THE BICKHAM HOME, BOWDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2022
6. Analysis of support and governance costs
The breakdown of support costs and how these were allocated between governance and other support costs is shown in the table below:
| General Support Governance £ £ Treasurer’s honorarium 9,883 - Bank charges 245 - Auditors’ remuneration: - Statutory audit services 3,828 - Other non-audit services 4,308 _ _ 14,436 3,828 _ _ |
2022 £ 9,883 245 3,828 4,308 _ 18,264 _ |
2021 £ 11,134 310 3,600 4,533 _ 19,577 _ |
|---|---|---|
7. Trustees’ remuneration and benefits
There were no trustees’ remuneration or other benefits for the year ended 31[st] March 2022 nor for the year ended 31[st] March 2021.
Trustees’ expenses
There were no trustees’ expenses for the year ended 31[st] March 2022 nor for the year ended 31[st] March 2021.
16
THE BICKHAM HOME, BOWDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2022
8. Comparatives for the statement of financial activities
| 2021 | 2021 |
2021 |
|
|---|---|---|---|
| £ | £ | £ | |
| Unrestricted | Endowment | Total | |
| Funds | Funds | Funds | |
| Income and endowments from: | |||
| Donations and grants | 95,697 | - | 95,697 |
| Charitable activities: | |||
| Operation of care home | 875,922 | - | 875,922 |
| Investment income | 12,413 | 5,519 | 17,932 |
| Other incoming resources | 2,912 | - | 2,912 |
| _ | _ | _ | |
| Total income and endowments | 986,944 | 5,519 | 992,463 |
| _ | _ | _ | |
| Expenditure on: | |||
| Raising funds: | |||
| Investment management costs | 1,261 | 569 | 1,830 |
| Charitable activities: | |||
| Operation of care home | 979,611 | - | 979,611 |
| _ | _ | _ | |
| Total | 980,872 | 569 | 981,441 |
| _ | _ | _ | |
| Net income/(expenditure) | |||
| before gains/(losses) on investments | 6,072 | 4,950 | 11,022 |
| Net gains/(losses) on investments | 83,950 | 37,881 | 121,831 |
| Transfers between funds | 4,950 | (4,950) | - |
| _ | _ | _ | |
| Net movement in funds | 94,972 | 37,881 | 132,853 |
| Reconciliation of funds | |||
| Total funds brought forward | 893,002 | 179,561 | 1,072,563 |
| _ | _ | _ | |
| Total funds carried forward | 987,974 _ |
217,442 _ |
1,205,416 _ |
17
THE BICKHAM HOME, BOWDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2022
9. Tangible fixed assets
| Land and buildings £ COST At 1stApril 2021 and 31stMarch 2022 539,232 _ DEPRECIATION At 1stApril 2021 202,821 Charge for the year 26,962 _ At 31stMarch 2022 229,783 _ NET BOOK VALUE At 31stMarch 2022 309,449 _ At 31stMarch 2021 336,411 _ |
Fixtures and fittings £ 62,896 _ 25,046 6,289 _ 31,335 _ 31,561 _ 37,850 _ |
Total £ 602,128 _ |
|---|---|---|
| 227,867 33,251 _ 261,118 _ |
||
| 341,010 _ |
||
| 374,261 _ |
The deeds of the property “Bickham Home” are vested in the Official Custodian for Charities. As permitted under FRS102, the charity has continued to adopt a policy of not revaluing its tangible fixed assets.
There are no details available of the original historical cost of the property.
It is likely that there is a material difference between the open market value of the charity’s property and its book value. The amount of such differences cannot be ascertained without incurring significant costs which, in the opinion of the trustees, is not justified in terms of the benefit to the user of the accounts.
The charity’s buildings have an insured value of £4,833,454.
18
THE BICKHAM HOME, BOWDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2022
| **10. ** | Fixed asset investments | 2022 | 2021 | |
|---|---|---|---|---|
| £ | £ | |||
| Market value brought forward | 670,336 | 548,505 | ||
| Gains/(losses) on revaluation | 39,556 | 121,831 | ||
| _ | _ | |||
| Market value as at 31stMarch 2022 | 709,892 | 670,336 | ||
| Cash held for investment | 4 | - | ||
| _ | _ | |||
| 709,896 | 670,336 | |||
| _ | _ | |||
| Analysis: | ||||
| Total | Unrestricted | Endowment | ||
| £ | £ | £ | ||
| United Kingdom | ||||
| Listed investments: Funds | 709,892 | 489,165 | 220,727 | |
| _ | _ | _ | ||
| 709,892 | 489,165 | 220,727 | ||
| _ | _ | _ | ||
| Investments that comprise more than 5% of the market value at the year | end were: | |||
| 2022 | 2021 | |||
| £ | £ | |||
| Barclays Charity Fund | 709,896 | 670,336 | ||
| _ | _ | |||
| **11. ** | Debtors | 2022 | 2021 | |
| £ | £ | |||
| Prepayments and accrued income | 21,145 | 14,708 | ||
| _ | _ | |||
| 21,145 _ |
14,708 _ |
19
THE BICKHAM HOME, BOWDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2022
| 12. Creditors: amounts falling due within one year Trade creditors Other taxation and social security Other creditors Accruals and deferred income Deferred income Deferred income as at 1stApril 2021 Utilised in the year Received in the year Balance at 31stMarch 2022 Deferred income consists of care fees paid in advance. |
2022 £ 30,264 9,118 2,135 37,919 _ 79,436 _ 5,778 (5,778) 5,502 _ 5,502 _ |
2021 £ 10,815 9,543 15,130 18,703 _ 54,191 _ |
|---|---|---|
| - - 5,778 _ 5,778 _ |
||
13. Movement in funds
| Unrestricted | Endowment | Total | |
|---|---|---|---|
| £ | £ | £ | |
| Balance at 1stApril 2021 | 987,974 | 217,442 | 1,205,416 |
| Incoming resources | 971,400 | 5,556 | 976,956 |
| Resources expended | (1,049,178) | (651) | (1,049,829) |
| Transfers | 13,915 | (13,915) | - |
| Gain on investments | 27,257 | 12,299 | 39,556 |
| _ | _ | _ | |
| Balance at 31stMarch 2022 | 951,368 _ |
220,731 _ |
1,172,099 _ |
The capital element of the endowment fund must be maintained but income may be used for the general purposes of the Home. For this reason, during the year the trustees have decided to transfer £13,915 (2021: £4,950) from the endowment fund to the unrestricted fund.
Comparatives for movement in funds
| Unrestricted | Endowment | Total | |
|---|---|---|---|
| £ | £ | £ | |
| Balance at 1stApril 2020 | 893,002 | 179,561 | 1,072,563 |
| Incoming resources | 986,944 | 5,519 | 992,463 |
| Resources expended | (980,872) | (569) | (981,441) |
| Transfers | 4,950 | (4,950) | - |
| Gain on investments | 83,950 | 37,881 | 121,831 |
| _ | _ | _ | |
| Balance at 31stMarch 2021 | 987,974 _ |
217,442 _ |
1,205,416 _ |
20
THE BICKHAM HOME, BOWDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2022
Pensions commitments
The charity operates a defined contributions pension scheme for its employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. Contributions payable for the year are charged to the Statement of Financial Activities.
The pension charge for the year was £10,283 (2021: £10,577). The amount outstanding at the year end was £1,687 (2021: £1,883).
14. Leasing agreements
Future minimum lease payments under non-cancellable operating leases fall due as follows:
| Within one year Between one and five years Over five years |
2022 £ 11,762 41,069 18,823 _ 71,654 _ |
2021 £ 12,022 8,015 _ 20,037 _ |
|---|---|---|
15. Related parties
Total employee benefits of Key Management Personnel are disclosed in note 5 of the accounts. The charity is controlled by the trustees.
16. Reconciliation of net movement in funds to net cash flow from operating activities
| Net movement in funds Add back depreciation charges Deduct investment income Deduct gains/add back losses on investments Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash used in operating activities 17. Analysis of cash and cash equivalents Cash in bank and in hand Total cash and cash equivalents |
2022 2021 £ £ (33,317) 132,853 33,251 33,251 (17,909) (17,932) (39,556) (121,831) (6,437) 15,951 25,245 9,333 _ _ (38,723) 51,625 _ _ 179,488 200,302 _ _ 179488 200,302 _ _ |
|---|---|
21
THE BICKHAM HOME, BOWDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2022
18. FRC Ethical Standard: Provision Available for Audits of Small Entities
In common with many businesses of our size and nature, we used our auditors to assist with the preparation of the financial statements.
22
THE BICKHAM HOME, BOWDON
INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31[st] MARCH 2022
| 2022 £ £ £ INCOME Residents’ fees 897,651 Resident charges 3,478 Donations and grants 57,918 Listed investments 17,870 Bank interest 39 Other income - _ TOTAL INCOME 976,956 _ EXPENDITURE Running Expenses Staff costs 531,681 547,738 Social security 40,144 37,892 Pension costs 10,283 10,577 Termination payment 14,420 - Temporary staff 102,003 97,153 Food and provisions 52,267 53,352 Care consumables 7,548 10,510 Insurance 15,096 11,645 Council tax 1,720 1,643 Heat and light 34,765 28,808 Water charges 5,790 15,951 Cleaning and waste charges 31,164 26,114 Garden upkeep 6,000 6,000 Entertainment for residents 3,373 2,359 Repairs 68,684 49,491 Staff Training 6,008 3,176 Computer software 5,709 5,109 __ _ 936,955 Administration Treasurer's honorarium 9,883 11,134 Audit fees 3,828 3,600 Accountancy 4,308 4,533 Investment charges 2,102 1,830 Registration fee 4,270 4,270 Postage, telephone and stationery 5,057 7,053 Sundries 696 4,454 Bank charges 245 310 Legal and professional fees 3809 1,183 Management consultants 45,425 2,305 79,623 _ Depreciation 33,251 _ TOTAL EXPENDITURE 1,049,829 _ (DEFICIT)/SURPLUS FOR THE YEAR (72,873) ____ |
2021 £ 873,650 2,272 95,697 17,750 182 2,912 _ 992,463 _ 907,518 40,672 _ 33,251 _ 981,441 _ 11,022 _ |
|---|---|
23