**Charity registration number 221746**
## **HONEYWOOD HOUSE NURSING HOME**
**ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023**
## **HONEYWOOD HOUSE NURSING HOME**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** S M White V A White P R Johnson (Retired Policeman) I G Blackwell D White **Charity number** 221746 **Principal address** Honeywood House Horsham Road Rowhook Horsham West Sussex England RH12 3QD **Auditor** Anova The Barn, Meadow Court Faygate Lane Faygate Horsham West Sussex RH12 4SJ **Bankers** National Westminster Bank Plc 77 High Street Goldaming Surrey GU7 1AR **Solicitors** DMH Stallard LLP 1st Floor Wonersh House The Guildway Old Portsmouth Road Guildford Surrey GU3 1LR
## **HONEYWOOD HOUSE NURSING HOME**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 3|
|Independent auditor's report|4 - 6|
|Statement of financial activities|7|
|Balance sheet|8|
|Statement of cash flows|9|
|Notes to the financial statements|10 - 22|
## **HONEYWOOD HOUSE NURSING HOME**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 JANUARY 2023**_
The trustees present their annual report and financial statements for the year ended 31 January 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Trust Deed, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and activities**
The objectives of the charity, which have been applied during the year, are set out in the Trust Deed. Such objectives require the trustees to apply the property, Honeywood House, as a nursing home for the members of the public requiring long or short term care.
It is the overall philosophy of Honeywood House that each resident should be viewed as an individual with basic rights of privacy, dignity and respect. The aims of the nursing care are - to endeavour to provide a homely, caring, safe and tranquil environment - to implement and maintain a planned approach to nursing care where emphasis is placed on the promotion of independence wherever possible, but able to identify self-care deficits when they arise. It is the Home's responsibility to prepare and encourage genuine teamwork within this multi-disciplinary setting. Finally, the importance of maintaining a quality of living and all that can be done to help until life's end is recognised. The trustees are required to levy a charge for the provision of such services of an amount, which they in their absolute discretion consider fair and reasonable.
The accommodation is full board and welfare facilities such as a library, general shopping, hairdressing, chiropody, physiotherapy, visiting optician and dentist and personal laundry are provided. A communion service is held monthly. Musical entertainment, Pantomines, Magicians & animal Therapy is provided on a regular basis. A fulltime activity Co-Ordinator & her team are also employed to deliver activities & outings In-House daily.
The trustees have paid due regard to public benefit guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
The charity's philosophy of providing a high standard of nursing care and kind attention according to its objectives was continued throughout the year. This has enabled the Nursing Home to maintain an excellent reputation within the community.
The Home has continued it's registered membership with the Care Quality Commission (CQC), the National Care Homes Association (NCHA) and the West Sussex Partners in Care (WSPiC).
The Home continues its association with Citation and Quality Compliance System (QCS) with regard to policies and procedures for Health & Safety & Employment Law.
Staff are continually kept up to date on Health and Safety, Moving and Handling, Protection of Vulnerable Adults, Fire Safety, Wound Care, Infection Control, First Aid & Care of the Dying, Equality & Diversity, Diet & Nutrition, MCA & DOLS, Dementia, Medication and Data Protection & Governance. They receive tuition from professional trainers in-house and on-line training is available from Gateway, Laser and Citation e-courses. We continue to use Crawley College for Health & Social care training and all new Health Care Assistants complete the Care Certificate.
The trustees have ensured that Honeywood House continues to be maintained to the highest standard, and in the year to 31 January 2023 and in the forthcoming year, the nursing home continues to be upgraded and maintained inside and outside with various refurbishment having taken place last year. Bedrooms continue to be refurbished as they become vacant ready for new residents.
- 1 -
## **HONEYWOOD HOUSE NURSING HOME**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2023**_
The nursing home is now using Nourish Digital which is registered under the ICO for License & Data Protection to record all the resident's care, nursing procedures & medical files on. All the nursing home's Quality Assurance & Health & Safety documentation is also recorded on this system.
The nursing home has also invested in E Mar for the nursing staff to record all medication given plus it automatically audits the whole procedure & stock levels of medication.
The Nursing home is compliant with the National Data opt-out Policy also.
Current year achievements include:
- New carpet to the reception area & main staircase
- Hand dryers to the staff room & staff toilet
- New Aluminium double glazed windows to the main staircase in reception
- New PVC double glazed windows to room 3, 3a, & 3b.
- New PVC double glazed windows to the Hairdressing Salon & Downstairs wet room.
There is an on-going refurbishment plan to continue in making the Home a better place with further works planned for the coming year.
Various fundraising events continue to help the running of the minibus and outings for our residents.
## **Financial review**
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. Where the need arises for large capital expenditure, the trustees consider ways in which it can build up a surplus including seeking grants, and spreading costs over a period of time where possible.
The total income receivable from residents amounts to £1,696,501 (2022 - £1,541,749 ). Resident's occupancy numbers increased in the year.
The total expenditure in the year increased by 13.1% (2022 - 4.9% decrease). Trustee, staff and agency cost account for 75.9% (2022 - 64.6%) of total charity expenditure. Food, provisions, medical and patient care consumables also account for 9.1% (2022 - 5.8%) of total charity expenditure.
The surplus for the year was £71,949 compared to a surplus in 2022 of £152,763.
At the balance sheet date, general funds held amounted to £295,645 (2022 - £223,696).
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The trustees are continuing to explore possible options to develop a brownfield site within the grounds of the property in order to provide cash funds in the future.
## **Structure, governance and management**
The charity is governed by its Trust Deed dated 1st December 1959.
The trustees who served during the year and up to the date of signature of the financial statements were: S M White
V A White P R Johnson (Retired Policeman) I G Blackwell D White
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## **HONEYWOOD HOUSE NURSING HOME**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2023**_
Appointment of trustees is governed by the Trust Deed. The board of trustees is authorised to appoint new trustees to fill vacancies arising through resignation or death of an existing trustee. Suitable candidates would be interviewed and a training course would be made available.
None of the trustees has any beneficial interest in the charity. All of the trustees are members of the charity and guarantee to contribute £1 in the event of a winding up.
The trustees of the charity are legally responsible for the overall management and control of the nursing home. The day to day running of the nursing home is delegated to the full-time registered manager Ivy Blackwell, and the general manager Sandra White, who are supported by fully trained nursing staff on duty 24 hours a day and domestic and maintenance staff. Weekly visits are made by a doctor and physiotherapist.
## **Statement of trustees' responsibilities**
The trustees are responsible for preparing the Trustees' Report 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 requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' report was approved by the Board of Trustees.
S M White **Trustee**
17 October 2023
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## **HONEYWOOD HOUSE NURSING HOME**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF HONEYWOOD HOUSE NURSING HOME**
## **Opinion**
We have audited the financial statements of Honeywood House Nursing Home (the ‘charity’) for the year ended 31 January 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 January 2023 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- 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 _Auditor's 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 material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
- 4 -
## **HONEYWOOD HOUSE NURSING HOME**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HONEYWOOD HOUSE NURSING HOME**
## **Responsibilities of trustees**
As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they 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 cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
We identify and assess risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
- the nature of the industry and sector, control environment and charity's performance;
- results of our enquiries of management about their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the charity's documentation of their policies and procedures relating to:
a) identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
b) detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
c) the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; d) the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the charity operates in. The key laws and regulations we considered in this context included the Care Quality Commission, Charities Act 2011, Charities SORP and employment legislation.
In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.
As a result of performing the above, we did not identify any key matters related to the potential risk of fraud or noncompliance with laws and regulations.
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## **HONEYWOOD HOUSE NURSING HOME**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HONEYWOOD HOUSE NURSING HOME**
## **Audit response to risks identified**
Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- reviewing minutes of meetings of those charged with governance, reviewing internal reports and reviewing correspondence with the Care Quality Commission and other regulatory bodies, and;
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale for any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indication of fraud or non-compliance with laws and regulations throughout the audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Other matters**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
|**Matthew Cleghorn FCA BSc (Hons) (Senior Statutory Auditor)**||
|---|---|
|**for and on behalf of Anova**|25 October 2023|
|**Chartered Accountants**||
|**Statutory Auditor**|The Barn, Meadow Court|
||Faygate Lane|
||Faygate|
||Horsham|
||West Sussex|
||RH12 4SJ|
Anova is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
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## **HONEYWOOD HOUSE NURSING HOME**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 JANUARY 2023**_
|**Unrestricted**
**Restricted Endowment**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**Notes**
**£**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
2,313
-
-
Charitable activities
**4**
1,696,501
-
-
Other trading activities
**5**
756
-
-
Investments
**6**
929
-
-
Other income
**7**
21,344
-
-
**Total income**
1,721,843
-
-
**Expenditure on:**
Raising funds
**8**
1,140,238
-
-
Charitable activities
**10**
509,656
-
-
**Total expenditure**
1,649,894
-
-
**Net income for the year/**
**Net movement in funds**
71,949
-
-
Fund balances at 1 February 2022
223,696
1,400,000
1,000,000
**Fund balances at 31 January 2023**
295,645
1,400,000
1,000,000|**Total**
**Unrestricted**
**Restricted Endowment**
**funds**
**funds**
**funds**
**2023**
**2022**
**2022**
**2022**
**£**
**£**
**£**
**£**
2,313
6,213
-
-
1,696,501
1,541,749
-
-
756
400
-
-
929
23
-
-
21,344
62,546
-
-
1,721,843
1,610,931
-
-
1,140,238
1,041,648
-
-
509,656
416,520
-
-
1,649,894
1,458,168
-
-
71,949
152,763
-
-
2,623,696
70,933
1,400,000
1,000,000
2,695,645
223,696
1,400,000
1,000,000|**Total**
**2022**
**£**
6,213
1,541,749
400
23
62,546|
|---|---|---|
|||1,610,931|
|||1,041,648
416,520|
|||1,458,168|
|||152,763
2,470,933|
|||2,623,696|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 7 -
## **HONEYWOOD HOUSE NURSING HOME**
## **BALANCE SHEET**
## _**AS AT 31 JANUARY 2023**_
|**Notes**
**Fixed assets**
Tangible assets
**14**
**Current assets**
Stocks
**15**
Debtors
**16**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**17**
Net current assets
**Total assets less current liabilities**
**Capital funds**
Endowment funds - general
**Income funds**
Restricted funds
Unrestricted funds|**2023**
**£**
**£**
2,532,839
2,692
56,989
341,342
401,023
(238,217)
162,806
2,695,645
1,000,000
1,400,000
295,645
2,695,645|**2022**
**£**
**£**
2,513,343
3,202
46,031
283,788
333,021
(222,668)
110,353
2,623,696
1,000,000
1,400,000
223,696
2,623,696|**2022**
**£**
**£**
2,513,343
3,202
46,031
283,788
333,021
(222,668)
110,353
2,623,696
1,000,000
1,400,000
223,696
2,623,696|
|---|---|---|---|
||||2,623,696|
||||1,000,000
1,400,000
223,696|
||||2,623,696|
The financial statements were approved by the Trustees on 17 October 2023
S M White **Trustee**
- 8 -
## **HONEYWOOD HOUSE NURSING HOME**
## **STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 JANUARY 2023**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**22**
**Investing activities**
Purchase of tangible fixed assets
Investment income received
**Net cash used in investing activities**
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2023**
**£**
(47,264)
929|**£**
103,889
(46,335)
-
57,554
283,788
341,342|**2022**
**£**
(33,961)
23|**£**
161,881
(33,938)
-
127,943
155,845
283,788|
|---|---|---|---|---|
- 9 -
## **HONEYWOOD HOUSE NURSING HOME**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 JANUARY 2023**_
## **1 Accounting policies**
## **Charity information**
Honeywood House Nursing Home is an unincorporated charity. The principal address is Rowhook, Horsham, West Sussex, RH12 3QD.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's Trust Deed, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Nursing home accommodation fee income from residents are invoiced monthly in advance and give rise to deferred income as at the year end. These are recognised accordingly within these financials.
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## **HONEYWOOD HOUSE NURSING HOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2023**_
## **1 Accounting policies**
**(Continued)**
## **Government grants**
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
## **1.5 Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings Held at valuation Fixtures and fittings 20% on cost
The charity has adopted a policy to revalue its freehold property at least every five years by a suitably qualified person, independent of Honeywood House Nursing Home with the most recent valuation carried out on 1 November 2021 by Barrett Corp Harrington.
As the asset is held at valuation rather than cost it has not been deemed necessary to depreciate the asset.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **1.7 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **1.8 Stocks**
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
- 11 -
## **HONEYWOOD HOUSE NURSING HOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2023**_
## **1 Accounting policies**
## **(Continued)**
## **1.9 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.10 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.11 Taxation**
The charity is exempt from tax on its charitable activities.
## **1.12 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.13 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
- 12 -
## **HONEYWOOD HOUSE NURSING HOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2023**_
## **1 Accounting policies**
## **(Continued)**
## **1.14 Leases**
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
|||**Unrestricted **|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2023**|**2022**|
|||**£**|**£**|
||Donations and gifts|2,313|6,213|
|**4**|**Charitable activities**|||
|||**Nursing**|
**Nursing**|
|||**home**|**home**|
|||**2023**|**2022**|
|||**£**|**£**|
||Income from residents|1,696,501|1,541,749|
|**5**|**Other trading activities**|||
|||**Unrestricted **|**Unrestricted**|
|||**funds**|**funds**|
|||**2023**|**2022**|
|||**£**|**£**|
||Fundraising events|756|400|
- 13 -
## **HONEYWOOD HOUSE NURSING HOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2023**_
|**6**
**7**
**8**
**9**|**Investments**
**Unrestricted Unrestricted**
**funds**
**funds**
**2023**
**2022**
**£**
**£**
Interest receivable
929
23
**Other income**
**Unrestricted**
Unrestricted
**funds**
funds
**2023**
2022
**£**
£
Government grants
21,344
62,546
**Raising funds**
**Unrestricted**
Unrestricted
**funds**
funds
**2023**
2022
**£**
£
Trading costs
Other trading activities (see note 9)
1,140,238
1,041,648
1,140,238
1,041,648
**Other trading activities**
**Unrestricted**
**Unrestricted**
**funds**
**funds**
**2023**
**2022**
**£**
**£**
Opening stock
3,202
2,692
Purchases of food, provisions and medical goods
87,841
72,961
Closing stock
(2,692)
(3,202)
Staff costs
989,804
906,583
Laundry & cleaning
52,537
50,491
Newspapers, magazines etc.
120
648
Patient care consumables
9,426
11,474
1,140,238
1,041,647|
|---|---|
- 14 -
## **HONEYWOOD HOUSE NURSING HOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JANUARY 2023**_
## **10 Charitable activities**
|Agency staff salaries
Rates and water
Insurance
Light and heat
Sundries
Garden maintenance costs
Repairs and maintenance costs
Fire alarm and security costs
Subscriptions
Share of support costs (see note 11)
Share of governance costs (see note 11)|**Nursing**
**home**
**2023**
**£**
100,055
10,318
15,305
52,949
549
8,645
52,551
2,358
7,750
250,480
245,183
13,993
509,656|**Nursing**
**home**
**2022**
**£**
36,185
9,858
12,015
44,763
176
6,570
41,080
2,145
6,931
159,723
241,955
14,842
416,520|
|---|---|---|
- 15 -
## **HONEYWOOD HOUSE NURSING HOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JANUARY 2023**_
|**11**
**Support costs**
Trustees' remuneration,
social security and
pension
Depreciation
Motor expenses
Travelling expenses
Office costs
Entertainment
Bank and credit card
charges
Computer, website and
software costs
Staff related expenses
Advertising
Accountancy fees
Audit fees
Legal and professional
Other interest payable
Analysed between
Charitable activities|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
163,160
-
27,767
-
2,039
-
6,285
-
19,022
-
8,217
-
763
-
976
-
3,482
-
4,108
-
9,364
-
-
5,100
-
8,893
-
-
245,183
13,993
245,183
13,993|**2023**Support costs Governance
costs
**£**
£
£
163,160
160,838
-
27,767
34,599
-
2,039
1,426
-
6,285
6,431
-
19,022
13,949
-
8,217
5,454
-
763
769
-
976
3,981
-
3,482
3,810
-
4,108
1,542
-
9,364
9,156
-
5,100
-
3,600
8,893
-
11,076
-
-
166
259,176
241,955
14,842
259,176
241,955
14,842|2022
£
160,838
34,599
1,426
6,431
13,949
5,454
769
3,981
3,810
1,542
9,156
3,600
11,076
166|
|---|---|---|---|
||||256,797|
||||256,797|
Governance costs includes payments to the auditors of £5,100 (2022- £3,600) for audit fees.
- 16 -
## **HONEYWOOD HOUSE NURSING HOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2023**_
## **12 Trustees**
During the year, the following trustees received remuneration, social security and pension contributions as follows:
|S M White - Remuneration
S M White - Social Security
S M White - Pension
I G Blackwell - Remuneration
I G Blackwell - Overtime
I G Blackwell - Social Security
I G Blackwell - Pension
D G White - Remuneration
D G White - Social Security
D G White - Pension|**2023**
**£**
33,914
3,619
525
50,544
24,620
9,650
1,321
34,927
3,765
274
163,159|**2022**
**£**
30,745
3,017
734
49,927
16,998
8,010
1,317
44,182
4,808
1,100|
|---|---|---|
|||160,838|
S White is employed by the charity as a General Manager and I Blackwell is employed as the Registered Manager. Permission to employ trustees to occupy these specific roles has been obtained from The Charity Commission in the past. Before awarding these roles a market salary benchmark review is carried out and other candidates are considered.
None of the trustees (or any persons connected with them) were paid or reimbursed expenses from the charity during the year.
- 17 -
## **HONEYWOOD HOUSE NURSING HOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2023**_
## **13 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
|Support staff (excluding agency staff)
Trustee and management staff
**Employment costs (excluding agency staff costs)**
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was £60,000 or more
were:
£60,000 - £69,999
£70,000 - £79,999
**14**
**Tangible fixed assets**
**Freehold land**
**and buildings**
**£**
**Cost or valuation**
At 1 February 2022
2,400,000
Additions
-
At 31 January 2023
2,400,000
**Depreciation and impairment**
At 1 February 2022
-
Depreciation charged in the year
-
At 31 January 2023
-
**Carrying amount**
At 31 January 2023
2,400,000
At 31 January 2022
2,400,000|**2023**
**Number**
40
3
43
**2023**
**£**
1,039,687
92,588
20,688
1,152,963
**2023**
**Number**
-
1
**Fixtures and**
**fittings**
**£**
485,580
47,264
532,844
372,238
27,767
400,005
132,839
113,343|**2022**
**Number**
40
3|
|---|---|---|
|||43|
|||**2022**
**£**
965,648
81,653
20,120|
|||1,067,421|
|||**2022**
**Number**
1
-|
|||**Total**
**£**
2,885,580
47,264|
|||2,932,844|
|||372,238
27,767|
|||400,005|
|||2,532,839|
|||2,513,343|
- 18 -
## **HONEYWOOD HOUSE NURSING HOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 JANUARY 2023**_
## **14 Tangible fixed assets**
## **(Continued)**
Freehold land and buildings, with a carrying amount of £2,400,000, were valued as at 1 November 2021 by Andy Bates Cert CII of Barrett Corp Harrington, independent valuers not connected with the charity.
|**15**
**Stocks**
Finished goods and goods for resale
**16**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Prepayments and accrued income
**17**
**Creditors: amounts falling due within one year**
**Notes**
Other taxation and social security
Deferred income
**18**
Trade creditors
Other creditors
Accruals and deferred income|**2023**
**£**
2,692
**2023**
**£**
45,270
11,719
56,989
**2023**
**£**
38,437
93,267
22,954
14,614
68,945
238,217|**2022**
**£**
3,202|
|---|---|---|
|||**2022**
**£**
34,344
11,687|
|||46,031|
|||**2022**
**£**
35,949
90,696
20,499
11,711
63,813|
|||222,668|
- 19 -
## **HONEYWOOD HOUSE NURSING HOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2023**_
|**18**
**Deferred income**
Arising from residents income received in
advance
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 February 2022
Released from previous periods
Resources deferred in the year
Deferred income at 31 January 2023|**2023**
**£**
93,267
**2023**
**£**
93,267
90,696
-
2,571
93,267|**2022**
**£**
90,696
**2022**
**£**
90,696
114,979
(24,283)
-
90,696|
|---|---|---|
- 20 -
## **HONEYWOOD HOUSE NURSING HOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2023**_
## **19 Analysis of net assets between funds**
|**Analysis of net assets between funds**|||
|---|---|---|
|**Unrestricted**
**funds**
**Restricted**
**funds**
**Endowment**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
Fund balances at 31 January 2023 are represented
by:
Tangible assets
132,839
1,400,000
1,000,000
Current assets/(liabilities)
162,806
-
-
295,645
1,400,000
1,000,000|**Total Unrestricted**
**funds**
**Restricted**
**funds**
**Endowment**
**funds**
**2023**
**2022**
**2022**
**2022**
**£**
**£**
**£**
**£**
2,532,839
113,343
1,400,000
1,000,000
162,806
110,353
-
-
2,695,645
223,696
1,400,000
1,000,000|**Total**
**2022**
**£**
2,513,343
110,353|
|||2,623,696|
- 21 -
## **HONEYWOOD HOUSE NURSING HOME**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2023**_
## **20 Operating lease commitments**
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Within one year
Between two and five years
In over five years|**2023**
**£**
5,911
13,133
-
19,044|**2022**
**£**
3,571
-
16,703|
|---|---|---|
|||20,274|
## **21 Related party transactions**
There were no disclosable related party transactions during the year (2022 - none).
|**22**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Increase/(decrease) in deferred income
**Cash generated from operations**
**23**
**Analysis of changes in net funds**
The charity had no debt during the year.|**2023**
**£**
71,950
(929)
27,767
510
(10,958)
12,978
2,571
103,889|**2022**
**£**
152,763
(23)
34,599
(510)
23,683
(24,348)
(24,283)|
|---|---|---|
|||161,881|
||||
- 22 -