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2023-03-31-accounts

THE BICKHAM HOME

BOWDON

FINANCIAL STATEMENTS FOR THE YEAR ENDED

31[st] MARCH 2023

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 2023

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 22

THE BICKHAM HOME

REFERENCE AND ADMINISTRATIVE INFORMATION

Trustees

Mr S Wallwork (Chairman) Dr C J Davies Mrs C M Gallaway 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 2023

The trustees present their report with the financial statements of the charity for the year ended 31st March 2023. 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 until 4th August 2022] Mrs C M Gallaway

Mr J O’Donnell – Notary Public (retired 31[st] July 2022) Mrs J Ravenscroft Mr I Macklin Mr P Long – Chartered Accountant Mr S Wallwork – Corporate Solicitor (from 1[st] August 2022) [Interim Chairperson from 4th August 2022]

Supported by:

Ms E Jiminez, Registered Manager from 1st October 2022 Ms G Warburton, Assistant Manager until 1st March 2023 Mrs T O’Toole ACMA – Treasurer

Ms M Parry & Ms H Hopkinson 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 allow 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. The kitchen garden is currently being utilised by local gardeners for similar purposes with the additional benefit of providing fresh fruit and vegetables for the Home’s kitchen and flowers for the residents.

TRAINING

Staff training has always been a high priority with all staff encouraged to sign up for Diploma qualifications at progressive levels. The Bickham Home has a training coordinator looking for excellent training for the staff. Ongoing staff training continues whether it is in-house or 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. New trustees are selected by the trustees and 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 2023

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

The charity has aimed 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, the previous 3 years have proved to be very challenging with a cumulative loss of over £170,000. During mid 2022, the Trustees raised significant concerns that the charity was no longer viable in its present form unless we used our legacy investment reserves to support the home to remain open. Even then, we had concerns that with the present annual losses of up-to £100,000, our legacy reserves may be depleted over the next 10 years to a point where we couldn’t maintain our reserves policy. We were also concerned that accessing these funds may be out-with the stipulations of the charity’s 1954 Trust Scheme. The Trustees therefore raised the question as to whether the home should close and the legacy funds used in other charitable ways to support the older needy persons in our area. As this would require a change of purpose for the charity we sought legal advice and consulted with staff, residents and their families. After difficult discussions, the Trustees decided that the home should remain open and our legacy investments used to support any subsequent losses.

We have continued to be overshadowed by the effects of world events including the Covid-19 pandemic and the Russian invasion of Ukraine. This has resulted in significant increases in utility costs and expenses related to maintenance of the Bickham property. The Pandemic as well as the ongoing consequences of Brexit have also had significant effects on the UK workforce particularly within the care home industry. Staff costs have increased and there remain problems with the appointment of new staff and the retention of current staff. Although permanent staff costs have fallen, we remain over reliant on temporary staff and they have again cost nearly £100,000 in the last year. Over budget staff costs have therefore been the main reason for a further loss of £24,031 before investment losses in the year ending 31[st] March 2023.

We have continued ongoing maintenance and improvements to our building and we have needed to make necessary modifications based on our regular fire safety, legionella, asbestos and infection control assessments. Further new wood window frames have been commissioned and a proactive roof assessment with any required repairs is ongoing. We have continued to work hard to try and reduce costs but we have also identified the need for new furnishings in the homes’ communal areas which will require further significant expenditure.

It has always been the Trustees aim to ensure that the Home is well led, delivers a high standard of care for its residents and builds on its excellent reputation. However, this has proved challenging during the Covid-19 pandemic and with our previous registered manager leaving the home at the end of 2021. There then followed a period of 10 months when we were unable to recruit a new permanent manager and were reliant on our assistant managers stepping up in an interim role. As a result of these issues, the Trustees appointed the CareSolve management consultancy who have been supporting the management team since November 2020. In October 2022, we appointed a new permanent registered manager, Ms E Jiminez. There are now encouraging signs that temporary staff costs are reducing, staff retention is improving and resident occupancy is nearing budgeted levels. The Trustees hope to reduce the role and costs associated with CareSolve during 2023-2024.

Financial Results

Although resident fees have increased the Trust’s total income has decreased by 3.1% over the last year. This has resulted from the loss of supporting Covid-19 grants that were received during the preceding 2 years.

Encouragingly, total expenditure decreased by 7.6%. This was due to reduced permanent staff costs and associated social security and pension payments despite high temporary staff costs totaling nearly £100,000. The Trustees hope to reduce the significant costs of our management consultants, CareSolve [£47,507] by negotiating a new contract. The Trustees consider that they do play an ongoing role in supporting our present management and the Trustees.

Reserves policy

The trustees aim to maintain free reserves in unrestricted and legacy funds at a level which at least exceeds three months of charitable expenditure. Based on the budgeted expenditure for 2023-2024, this requires free reserves to be held of approximately £297,500. 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 have now decided that this cannot be achieved without liquidating some of our legacy investments. This will become increasingly necessary if our losses continue into subsequent years.

3

THE BICKHAM HOME, BOWDON

TRUSTEES’ REPORT FOR THE YEAR ENDED 31[st] MARCH 2023

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 3.1% (2022: 2.5%).

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 had serious concerns about the long-term 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 continue to 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 more of our legacy investments. At some point we may not have sufficient legacy funds to support our “reserves policy”. As the present Trust scheme doesn’t support closure of the home or a change of charitable purpose it is important that we consult further with interested parties, take specialist legal advice and seek permission from the Charity Commission for a change to a more flexible Trust Scheme. The Trustees hope that with our new management team and the support of CareSolve that Bickham House continues to operate as a successful care home. They do remain pragmatic and need to plan for all eventualities.

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 2023

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;

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 27[th] September 2023 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 2023 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:

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, 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:

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: 28[th] September 2023

8

THE BICKHAM HOME, BOWDON

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[st] MARCH 2023

2023
2023		 2023
2022
Note £ £ £ £
Unrestricted Endowment Total Total
Funds Funds Funds Funds
Income and endowments from:
Donations and grants 2 1,566 - 1,566 57,918
Charitable activities:
Operation of care home 3 924,657 - 924,657 901,129
Investment income 4 14,054 6,242 20,296 17,909
_ _ _ _
Total income and endowments 940,277 6,242 946,519 976,956
_ _ _ _
Expenditure on:
Raising funds:
Investment management costs 1,208 788 1,996 2,102
Charitable activities:
Operation of care home 5 968,554 - 968,554 1,047,727
_ _ _ _
Total 969,762 788 970,550 1,049,829
_ _ _ _
Net income/(expenditure)
before gains/(losses) on investments (29,485) 5,454 (24,031) (72,873)
Net (loss)/gains on investments (33,435) (15,090) (48,525) 39,556
Transfers between funds 5,454 (5,454) - -
_ _ _ _
Net movement in funds (57,466) (15,090) (72,556) (33,317)
Reconciliation of funds
Total funds brought forward 951,368 220,731 1,172,099 1,205,416
_ _ _ _
Total funds carried forward 893,902
_		 205,641
_		 1,099,543
_		 1,172,099
_

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 2023

2023
2023
2023
2022
Unrestricted Endowment Total Total
Funds Funds Funds Funds
Note £ £ £ £
Fixed assets
Tangible assets 9 309,606 - 309,606 341,010
Investments 10 455,730 205,641 661,371 709,896
_ _ _ _
Total fixed assets 765,336 205,641 970,977 1,050,906
_ _ _ _
Current assets
Debtors 11 14,613 - 14,613 21,145
Cash at Bank and in Hand 197,117 - 197,117 179,484
_ _ _ _
Total current assets 211,730 - 211,730 200,629
_ _ _ _
Liabilities
Creditors falling due within one year
12		 83,164 - 83,164 79,436
_ _ _ _
Net current assets 128,566 - 128,566 121,193
_ _ _ _
Net assets 893,902 205,641 1,099,543 1,172,099
_ _ _ _
The funds of the charity: 13
Endowment funds - 205,641 205,641 220,731
Unrestricted income funds 893,902 - 893,902 951,368
_ _ _ _
Total charity funds 893,902
_		 205,641
_		 1,099,543
_		 1,172,099
_

The financial statements were approved by the trustees on 27[th] September 2023 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 2023

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
2023
£
37,925
_
20,296
_
20,296
_
17,629
179,488
_
197,117
_		 Total
Funds
2022
£
(38,723)
_
17,909
_
17,909
_
(20,814)
200,302
_
179,488
_

11

THE BICKHAM HOME, BOWDON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2023

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.

12

THE BICKHAM HOME, BOWDON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2023

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.

13

THE BICKHAM HOME, BOWDON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2023

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 2023 2022
£ £
Donations 25 8,127
Grants received 1,541 49,791
______ ______
1,566 57,918
______ ______
3. Operation of care home 2023 2022
£ £
Residents’ fees 921,609 897,651
Residents’ charges 3,048 3,478
______ ______
924,657 901,129
______ ______
4. Investment income 2023 2022
£ £
Listed investments 20,075 17,870
Bank interest 221 39
______ ______
20,296
______		 17,909
______

14

THE BICKHAM HOME, BOWDON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2023

5. Analysis of charitable expenditure
Staff costs
Social security
Pension costs
Termination payment
Temporary staff
Food and provisions
Insurance
Council tax
Heat and light
Water charges
Garden upkeep
Cleaning and waste
Repairs
Care consumables
Postage, telephone and stationery
Depreciation
Registration fees
Sundries
Staff Training
Legal and professional fees
Entertainment for residents
Computer software
Management consultants
Support costs (see note 6)
Governance costs (see note 6)		 2023
2022
£
£
470,750
531,681
34,412
40,144
8,665
10,283
-
14,420
97,549
102,003
53,136
52,267
18,636
15,096
1,784
1,720
33,214
34,765
7,954
5,790
6,000
6,000
31,224
31,164
66,419
68,684
9,912
7,548
1,836
5,057
31,404
33,251
4,270
4,270
5,675
696
3,660
6,008
4,828
3,809
4,994
3,673
5,523
5,709
47,507
45,425
14,882
14,436
4,320
3,828
_
_
968,554
1,047,727
_
_

No employees had emoluments in excess of £60,000 during the year (2022: 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 2023
26
______		 2022
28
______

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 £32,630 (2022: £74,646).

15

THE BICKHAM HOME, BOWDON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2023

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
10,607
-
Bank charges
304
-
Auditors’ remuneration:
- Statutory audit services
4,320
- Other non-audit services
3,971
_
_
14,882
4,320
_
_		 2023
£
10,607
304
4,320
3,971
_
19,202
_		 2022
£
9,883
245
3,828
4,308
_
18,264
_

7. Trustees’ remuneration and benefits

There were no trustees’ remuneration or other benefits for the year ended 31[st] March 2023 nor for the year ended 31[st] March 2022.

Trustees’ expenses

There were no trustees’ expenses for the year ended 31[st] March 2023 nor for the year ended 31[st] March 2022.

16

THE BICKHAM HOME, BOWDON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2023

8. Comparatives for the statement of financial activities

2022
2022
2022
£ £ £
Unrestricted Endowment Total
Funds Funds Funds
Income and endowments from:
Donations and grants 57,918 - 57,918
Charitable activities:
Operation of care home 901,129 - 901,129
Investment income 12,353 5,556 17,909
Other incoming resources - - -
_ _ _
Total income and endowments 971,400 5,556 976,956
_ _ _
Expenditure on:
Raising funds:
Investment management costs 1,451 651 2,102
Charitable activities:
Operation of care home 1,047,727 - 1,047,727
_ _ _
Total 1,049,178 651 1,049,829
_ _ _
Net income/(expenditure)
before gains/(losses) on investments (77,778) 4,905 (72,873)
Net gains on investments 27,257 12,299 39,556
Transfers between funds 13,915 (13,915) -
_ _ _
Net movement in funds (36,606) 3,289 (33,317)
Reconciliation of funds
Total funds brought forward 987,974 217,442 1,205,416
_ _ _
Total funds carried forward 951,368
_		 220,731
_		 1,172,099
_

17

THE BICKHAM HOME, BOWDON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2023

9. Tangible fixed assets

Land
and
buildings
£
COST
At 1stApril 2022 and
31stMarch 2023
539,232
_
DEPRECIATION
At 1stApril 2022
229,783
Charge for the year
26,692
_
At 31stMarch 2023
256,745
_
NET BOOK VALUE
At 31stMarch 2023
282,487
_
At 31stMarch 2022
309,449
_		 Fixtures
and
fittings
£
62,896
_
31,335
4,442
_
35,777
_
27,119
_
31,561
_		 Total
£
602,128
_
261,118
31,404
_
292,522
_
309,606
_
341,010
_

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 £5,355,467.

18

THE BICKHAM HOME, BOWDON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2023

**10. ** Fixed asset investments 2023 2022
£ £
Market value brought forward 709,896 670,336
Gains/(losses) on revaluation (48,525) 39,556
_ _
Market value as at 31stMarch 2023 661,371 709,892
Cash held for investment - 4
_ _
661,371 709,896
_ _
Analysis:
Total Unrestricted Endowment
£ £ £
United Kingdom
Listed investments: Funds 661,371 455,730 205,641
_ _ _
661,371 455,730 205,641
_ _ _
Investments that comprise more than 5% of the market value at the year end were:
2023 2022
£ £
Barclays Charity Fund 661,371 709,896
_ _
**11. ** Debtors 2023 2022
£ £
Trade debtors 6,342 -
Prepayments and accrued income 8,271 21,145
_ _
14,613
_		 21,145
_

19

THE BICKHAM HOME, BOWDON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2023

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 2022
Utilised in the year
Received in the year
Balance at 31stMarch 2023
Deferred income consists of care fees paid in advance.		 2023
£
27,717
7,842
1,681
45,924
_
83,164
_
5,502
(5,502)
29,793
_
29,793
_		 2022
£
30,264
9,118
2,135
37,919
_
79,436
_
5,778
(5,778)
5,502
_
5,502
_

13. Movement in funds

Unrestricted Endowment Total
£ £ £
Balance at 1stApril 2022 951,368 220,731 1,172,099
Incoming resources 940,277 6,242 946,519
Resources expended (969,762) (788) (970,550)
Transfers 5,454 (5,454) -
(Loss)/gain on investments (33,435) (15,090) (48,525)
_ _ _
Balance at 31stMarch 2023 893,902
_		 205,641
_		 1,099,543
_

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 £5,454 (2022: £13,915) from the endowment fund to the unrestricted fund.

Comparatives for 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
_

20

THE BICKHAM HOME, BOWDON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2023

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 £8,665 (2022: £10,283). The amount outstanding at the year end was £1,681 (2022: £1,687).

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		 2023
£
10,267
41,069
8,556
_
59,892
_		 2022
£
11,762
41,069
18,823
_
71,654
_

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 at bank and in hand
Total cash and cash equivalents		 2023
£
(72,556)
31,404
20,296
48,525
6,532
3,724
_
37,925
_
197,117
_
197,117
_		 2022
£
(33,317)
33,251
(17,909)
(39,556)
(6,437)
25,245
_
(38,723)
_
179,488
_
179,488
_

21

THE BICKHAM HOME, BOWDON

INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31[st] MARCH 2023

£
INCOME
Residents’ fees
Resident charges
Donations and grants
Listed investments
Bank interest
TOTAL INCOME
EXPENDITURE
Running Expenses
Staff costs
470,750
Social security
34,412
Pension costs
8,665
Termination payment
-
Temporary staff
97,549
Food and provisions
53,136
Care consumables
9,912
Insurance
18,636
Council tax
1,784
Heat and light
33,214
Water charges
7,954
Cleaning and waste charges
31,224
Garden upkeep
6,000
Entertainment for residents
4,994
Repairs
66,419
Staff Training
3,660
Computer software
5,523
Administration
Treasurer's honorarium
10,607
Audit fees
4,320
Accountancy
3,971
Investment charges
1,996
Registration fee
4,270
Postage, telephone and stationery
1,836
Sundries
5,675
Bank charges
304
Legal and professional fees
4,828
Management consultants
47,507
______
Depreciation
TOTAL EXPENDITURE
Net (loss)/gains on investments
(DEFICIT) FOR THE YEAR		 2023
£
£
921,609
3,048
1,566
20,075
221
_
946,519
_
531,681
40,144
10,283
14,420
102,003
52,267
7,548
15,096
1,720
34,765
5,790
31,164
6,000
3,673
68,684
6,008
5,709
853,832
9,883
3,838
4,308
2,102
4,270
5,057
696
245
3,809
45,425
__
85,314
31,404
_
970,550
(48,525)
_
(72,556)
_____		 2022
£
897,651
3,478
57,918
17,870
39
_
976,956
_
936,955
79,623
33,251
_
1,049,829
39,556
_
(33,317)
__

This page does not form part of the statutory financial statements.

22