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2023-12-31-accounts

Charity Number : 221797

Bushell House

Trustees’ Annual Report and Financial Statements

For The Year Ended 31 December 2023

Bushell House

Contents

Page
Trustees and Advisers 1
Trustees' Annual Report 2
Independent Auditor’s Report to the Trustees of Bushell House 7
Statement of Financial Activities 10
Balance Sheet 11
Cash Flow Statement 12
Notes to the Financial Statements 13
Schedule 1 - Summary of Investments 23

Bushell House

Trustees and Advisors

For the year ended 31 December 2023

Trustees Co-optative:
Mr I Brown Chair
Mrs J Bleasdale Vice-Chair
Mr M Anson
Mr C D Carefoot
Mr P McDade (resigned 21
February 2023)
Mr J Fish
Mr M Richardson (resigned 3
April 2023)
Ex Officio:
Reverend G Stewart Vicar of Goosnargh
(appointed 28 March 2023)
Reverend S Haigh (resigned 26 Vicar of Preston
October 2023)
Nominative: Preston City Council
Mr K Hudson Preston City Magistrate
Mr G J Davies
Key Management Personnel:
General Manager Ms R Marrow
Deputy Manager Ms J Hesketh
Principal office Bushell House
Mill Lane
Goosnargh
Preston
PR3 2BJ
Charity number 221797
Auditors MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
Investment agents Close Asset Management Ltd
10 Exchange Square
Primrose Street
London
EC2A 2BY

1

Bushell House

Trustees' Annual Report

For the year ended 31 December 2023

The Trustees present their report and the audited accounts for the year ended 31 December 2023. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, 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 (FRS102) published in October 2019.

Structure, governance and management

Bushell House is a registered charity currently regulated by a Scheme of the Charity Commissioners dated 13 May 1977 (as altered on 8 February 2002).

The body of Trustees when complete, shall consist of eleven competent persons, being two Ex-Officio Trustees, three Nominative Trustees and six Co-optative Trustees. The Trustees are actively looking to recruit additional Trustees, in line with the Trust Deed.

The Ex-Officio Trustees shall be the Rector for the area of the United Benefice of Preston (St John and St George) and the Vicar of the Parish of St Mary the Virgin, Goosnargh. The Rector for the area of the United Benefice of Preston (St John and St George) has confirmed he does not wish to take up a position as a Trustee with the Charity.

The Nominative Trustees shall be appointed for four years, one from each of the following:

Co-optative Trustees are appointed for a term of five years. Any competent Trustee may be re-appointed. A Chairman is appointed annually. The County Council has confirmed that it no longer wishes to appoint a representative. Three Trustees are continuing to serve as Trustees, having initially been appointed as Nominative Trustees.

The Charity is managed by a Board of Trustees. They meet quarterly to determine operational matters and future strategy. Bushell House is inspected each month by two Trustees. One Trustee makes a written pastoral report, which is available to the Care Quality Commission. The other Trustee looks at the internal and external fabric of the building. Copies of both reports are held on file and exceptional findings are presented to the Board’s quarterly meetings. The day to day management of the residential home is entrusted to the Manager and her staff with support from relevant professional advisors. All employees are given basic and advanced training.

A Financial Report is made to the Quarterly Trustees’ Meeting. Various management functions are allocated an annual budget; the trustees manage these functions within budget, would be consulted on these functions by the Manager and would report progress to the trustee’s quarterly meeting. There is now a vice chairman and subcommittee of four trustees who undertake data gathering and any urgent issues before making suggestions to the Board meeting. The trustees have specific areas of expertise such as the garden, advertising, the building, finance, and IT.

2

Bushell House

Trustees' Annual Report

For the year ended 31 December 2023

Key management personnel remuneration

The trustees consider the board of trustees, general manager and deputy manager 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 of their time freely and no trustee remuneration was paid in the year.

The pay of the charity’s staff is reviewed annually and normally increased in accordance with average earnings. The remuneration is bench-marked with charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles. A staff council meets twice a year around April for salary review and any general issues, and in October for general issues.

Recruitment of Trustees

Under the (1977) Scheme, trustees are required to be “competent persons”. Trustees are constantly alert to identify such men and women with relevant competencies, common sense, judgement and integrity and who are also willing to bear the significant legal and financial responsibilities of progressive trustees. Local, younger people able to commit the necessary time to discharge trustees’ duties diligently remain elusive to identify. The Trustees are always looking to encourage new Trustees for as and when members retire.

Training of Trustees

New trustees are familiarised with their duties by reference to induction materials, newsletters and advisory booklets published periodically by the Charity Commission.

Risk management and principal risks and uncertainties

The Trustees have examined the major strategic and operational risks which the charity faces and confirm that the systems are in place to ensure good risk management. Staff undertake both mandatory and voluntary training courses in order to keep up to date with legislation, and procedures are in place to ensure that the quality of service expected continues to be provided.

The Trustees and staff aspire to, and achieve, the highest operational standards consistent with the expectations of the Care Standards regulations. They constantly review their business aims to ensure compliance with all regulatory requirements.

One of the key risks which the Trustees are aware of is the additional difficulties and complexities because of Bushell House being a listed building. The Trustees work together closely to get the best outcomes for Bushell House, but repairs costs are often unknown and can often be more complex compared to dealing with a nonlisted building.

The Covid-19 pandemic has had a significant impact on a number of organisations and the Trustees have put in place risk management processes to minimise the impact of any virus on employees and residents, whilst the impact of the pandemic has reduced as time has gone on, the Trustees are working closely with management to keep residents and staff safe from the risk of Covid-19 and any other viral infections.

The trustees are mindful of the current economic environment in particular the rising costs of utilities. The trustees are reviewing these costs on an annual basis to ensure that the charity gets the best possible deal, rather than entering into longer term fixed price contracts.

3

Bushell House

Trustees' Annual Report

For the year ended 31 December 2023

Objectives and activities and public benefit

Bushell House charity came into being on 7 July 1743 under the provisions of the Will of William Bushell (16901735) for the purpose of maintaining, supporting and providing for elderly people from the area of benefit. The charity operates a Residential Home using the late Mr Bushell’s home and, although the original house has been extensively altered since 1743, the objects and activities have remained substantially unchanged since foundation. However, on 8 February 2002, the Charity Commission approved amendments to the scheme:

The area of benefit shall be the Boroughs of the County of Lancashire and the area covered by the unitary authorities of Blackpool and Blackburn with Darwen.

The Trustees shall continue to maintain an extraordinary repair fund.

The Trustees may consider applicants for residence who are members of the churches which are themselves members of Churches Together in England or its succeeding body/bodies.

The Trustees shall have power to provide indemnity insurance for themselves out of the income of the Charity.

The Trustees may apply surplus income of the charity in relieving persons who are in conditions of need, hardship and distress. The Trustees have had due regard and have read the guidance on public benefit published by the Charities Commission.

Achievements and performance

During the financial year there was an average occupancy of 82% (2022: 83%). Currently, the House are working hard on the first phase of roof repairs, this has taken five rooms out of action which is having an impact on occupancy levels. As the charity operates from a listed building, there are planning complexities which the charity continues to work through. The premises are used on a regular basis by Lancashire Fire and Rescue Service for training purposes.

There is currently a rolling programme to repair and replace windows where needed and this is a high-cost expense.

The major achievements during the year include maintaining 5 Star RDB status

The charity continues to provide a number of social activities for residents including participation in local events and with support from Friends of Bushell House who help raise much needed funds in a variety of ways.

Investment policy and performance

The Trustees are advised by Close Asset Management Ltd, who have day to day discretion in the management of the portfolio. An investment panel representing the Trustees meets half yearly with the investment advisers to review portfolio performance and set policy.

Currently the investment policy adopted is to achieve an income of at least £40,000 from investment plus capital appreciation at least equivalent to the rate of inflation from a balanced portfolio designed to generate both income and growth. The income generated on all investments, including bank deposits awaiting reinvestment for 2024, was 2.7% (2022: 3.6%).

The investment panel has reviewed its instructions to Close Asset Management Ltd and the portfolio performance and is satisfied with both. The panel is happy with the low-risk portfolio and its yield.

4

Bushell House

Trustees' Annual Report

For the year ended 31 December 2023

Financial review

Surplus funds are necessarily invested to provide income to support the operation of the Home. In future this necessity must be reduced. Whilst there is an extraordinary Repair Fund, alterations to the Home will be met out of reserves unless exceptional. The house is a grade II* listed building and may, in theory, gain financial aid for repairs.

The statement of financial activities shows net expenditure of £14,665 (2022: net expenditure of £108,441), which includes net investment gains of £42,326 (2022: net investment losses of £64,934). The balance of unrestricted funds at 31 December 2023 was £1,126,403 and the balance of restricted funds £1,030,494, a total of £2,156,897 (2022: £2,171,562). The make-up of these funds is shown in note 11. Fee levels are generally above DSS and Income Support rates but below most local comparators.

Reserves Policy

The Trustees have considered the level of free reserves which they should hold in order to safeguard the future of the charity. In their opinion, reserves should be sufficient to ensure that the charity could operate for 12 months in the event that there was an exceptional loss of income. Currently, this amounts to £1,274,998

Unrestricted reserves at 31 December 2023 amounted to £1,126,403. Excluding designated funds and tangible fixed assets, £931,093 are 'free reserves'. This is equivalent to 8.8 months of running costs, which is below the Trustees’ policy, the Trustees are satisfied that the current level of reserves are appropriate for the charity and are carefully managing costs to ensure reserves are maintained at an appropriate level.

The Trustees continue to assist residents unable to meet the full cost of fees. As shown on pages 20 to 22 of the accounts, the charity has a restricted fund for extraordinary repairs.

Plans for future periods

The Trustees are always looking to raise the profile of Bushell House by word of mouth as well as social media and other advertising routes and this remains a key objective for 2024.

During the year the Trustees have again designated £10,000 towards replacing the roof, which will in due course require repair and replacement. At the time of signing these financial statements, work is ongoing to carry out he first phase of roof repairs. .

The House is also undertaking work on the drainage system, which are being re-laid and replaced.

Significance of volunteers

The charity has no volunteers, other than the Trustees.

5

Bushell House

Trustees' Annual Report

For the year ended 31 December 2023

Statement of Trustees' Responsibilities

The trustees are responsible for preparing the Trustees’ Annual 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 & 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 period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping 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 Charities (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.

Auditor

A resolution to re-appoint MHA for the ensuing year will be proposed at the Annual General Meeting.

09/05/2024 This report was approved by the charity on …………………………. and signed on its behalf

………………………………………………………. I Brown – Chairman of the Board of Trustees

6

Independent Auditor’s Report to the Trustees of Bushell House

Bushell House

For the year ended 31 December 2023

Opinion

We have audited the financial statements of Bushell House (the ‘charity’) for the year ended 31 December 2023 which comprises 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, 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:

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 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 trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

7

Independent Auditor’s Report to the Trustees of Bushell House

Bushell House

For the year ended 31 December 2023

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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees are responsible for the preparation of 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 liquidate the charity or 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

8

Independent Auditor’s Report to the Trustees of Bushell House

Bushell House

For the year ended 31 December 2023

We identified the following areas as those most likely to have a material impact on the financial statements: compliance with Care Quality Commission standards, employment law and compliance with the Charities Act.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 auditor’s report.

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.

MHA Statutory Auditor Richard House Winckley Square Preston PR1 3HP

…………………………… 09/05/2024

MHA 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.

MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)

9

Bushell House

Statement of Financial Activities

For the year ended 31 December 2023

Note
Income from
Donations and legacies
Investments
Charitable activities:
Residential care fees
Grant income
Total Income
2
Expenditure on
Raising funds:
Investment management fees
Charitable activities:
Residential care costs
3
Total Expenditure
Net expenditure before other
gains and losses
Net gains/(losses) on investments
Net expenditure for the year
Transfers between funds
Net movement in funds
Reconciliation of funds:
Balances brought forward
Balances carried forward
11		 Restricted Funds
Land and
Buildings
Other
Restricted
Funds
£
£
-
-
-
1,141
-
-
-
-
-
1,141
-
-
-
-
-
-
-
1,141
-
-
-
1,141
-
(7,042)
(5,901)
865,450
170,945
865,450
165,044		 Unrestricted
Funds
£
1,651
34,818
1,171,995
-
1,208,464
7,150
1,259,446
1,266,596
(58,132)
42,326
(15,806)
7,042
(8,764)
1,135,167
1,126,403		 2023
Total
£
1,651
35,959
1,171,995
-
1,209,605
7,150
1,259,446
1,266,596
(56,991)
42,326
(14,665)
-
(14,665)
2,171,562
2,156,897		 2022
Total
£
680
34,648
1,062,174
22,474
1,119,976
7,482
1,156,001
1,163,483
(43,507)
(64,934)
(108,441)
-
(108,441)
2,280,003
2,171,562

All of the above amounts relate to continuing activities. The notes on pages 13 to 22 form part of these financial statements.

10

Bushell House

Balance Sheet

As at 31 December 2023

Restricted Funds

Note
Fixed assets
Tangible assets
7
Investments
8
Current assets
Debtors
9
Cash at bank and in hand
Liabilities
Creditors falling due within one
year
10
Net current (liabilities) / assets
Net assets
Total funds of the charity
12		 Land and
Buildings
£
865,450
-
865,450
-
-
-
-
-
865,450
865,450		 Other
Restricted
Funds
£
-
165,044
165,044
-
-
-
-
-
165,044
165,044		 Unrestricted
Funds
£
96,501
1,049,397
1,145,898
29,789
35,757
65,546
(85,041)
(19,495)
1,126,403
1,126,403		 2023
Total
£
961,951
1,214,441
2,176,392
29,789
35,757
65,546
(85,041)
(19,495)
2,156,897
2,156,897		 2022
Total
£
960,013
1,238,940
2,198,953
27,091
19,262
46,353
(73,744)
(27,391)
2,171,562
2,171,562

The notes on pages 13 to 22 form part of these financial statements.

09/05/2024

These accounts were approved by the Trustees on …………………………. and signed on their behalf by:

…………………………………………..

I Brown - Trustee

11

Bushell House

Cash Flow Statement

For the year ended 31 December 2023

Net expenditure for the year
Adjustments for:
Investment income
(Gain) / loss on investments
Loss on sale of tangible fixed assets
Depreciation
(Increase)/ decrease in debtors
Increase in creditors
Net cash utilised by operating activities
Cash flows from investing activities:
Investment income
Purchase of tangible fixed assets
Purchase of investments
Proceeds from sale of investments
Increase in cash held as investments
Cash provided by / (utilised by) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2023
£
(14,665)
(35,959)
(42,326)
-
13,870
(2,698)
11,297
(70,481)
35,959
(15,808)
(137,912)
159,398
45,339
86,976
16,495
19,262
35,757		 2022
£
(108,441)
(34,648)
64,934
2,982
11,552
4,041
34,054
(25,526)
34,648
(86,974)
(91,691)
112,006
(23,764)
(55,775)
(81,301)
100,563
19,262

The notes on pages 13 to 22 form part of these financial statements.

12

Bushell House

Notes to the Financial Statements

For the year ended 31 December 2023

1 Accounting policies

Basis of accounting and general information

Bushell House is an unincorporated charity, and the principal office address is Mill Lane, Goosnargh, Preston, PR3 2BJ. Details of the nature of the charity’s operations can be found in the trustees’ annual report.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities: 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 issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The accounts have been prepared under the historical cost convention as modified by the inclusion of investments at market value. The accounts are prepared in £ sterling and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

The trustees monitor the financial situation and the general running of the home via regular communication between the financial administrator and house manager and the Chairman.

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements.

One of the key risks which the Trustees are aware of is the additional difficulties and complexities because of Bushell House being a listed building. The Trustees work together closely to get the best outcomes for Bushell House, but repairs costs are often unknown and can often be more complex compared to dealing with a non-listed building and accordingly the Trustees hold a proportion of the investment portfolio in liquid cash resources in the event of a significant short term cash flow requirement to meet large one off costs.

Following a review of the financial forecasts, together with funds held, the trustees have concluded that it remains appropriate to prepare these financial statements on the going concern basis as the budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

13

Bushell House

Notes to the Financial Statements

For the year ended 31 December 2023

1 Accounting policies (continued)

Fund accounting

Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects.

Unrestricted funds include designated funds where the trustees, at their discretion, have created a fund for a specific purpose. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is allocated against the fund, together with a fair allocation of management and support costs.

Income

All income is recognised once the charity has entitlement to the income, there is sufficient certainty or receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably. Investment income and income from residential care fees are recognised in the period they are receivable. For legacies, entitlement is the earlier of the charity being notified of a specific impending distribution or the legacy being received.

The charity receives government grants in respect of Infection Control Fund, Lateral Flow Funding, Vaccination Grant and Workforce Capacity Grant. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Expenditure

All expenditure, which includes irrecoverable VAT, is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities, they have been allocated on a basis consistent with the use of the resources.

Tangible fixed assets

Tangible fixed assets costing more than £500 are capitalised. Fixtures and equipment are included at cost less depreciation. No depreciation has been provided for on the freehold building which is included at cost. It is the charity’s practice to maintain the building in a continual state of sound repair. Accordingly, the trustees consider in view of the length of the life of the asset and its residual value any depreciation would be immaterial. A transfer is shown each year from the unrestricted fund to the land and buildings unrestricted fund equal to the capital improvements to L&B in the year

Depreciation is provided as follows to write off the cost of the assets over their expected useful lives:

Fixtures and equipment - 5% - 20% on cost

At each reporting period 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).

14

Bushell House

Notes to the Financial Statements

For the year ended 31 December 2023

1 Accounting policies (continued)

Investments

Investments are initially recognised at their transaction value and subsequently measured at their market value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

Cash at bank and in hand

Cash at bank and in hand represents cash held on deposit with banks and cash in hand.

Pension costs and employee benefits

The charity operates defined contribution pension schemes for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the SOFA and details are included within note 4 of the financial statements.

The costs of short-term employee benefits are recognised as a liability and an expense.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets or financial liabilities.

Judgements and key sources of estimation uncertainty

The Trustees’ consider that there are no areas of the financial statements which are subject to significant estimates, judgements or assumptions made.

2 Income

All income in the year was unrestricted, with the exception of £nil (2022: £2,226) of restricted grant income and £1,141 (2022: £537) of investment income, as detailed below.

Income from local government grants in respect of infection control funding of £nil (2022: £22,474) was recognised during the year.

Income from Close Wealth Deposit interest of £1,141 (2022: £537) was recognised during the year.

15

Bushell House

Notes to the Financial Statements

For the year ended 31 December 2023

3 Residential care costs

esidential care costs
Wages and salaries
Other staff costs
Provision and upkeep
Fuel and lighting
Repairs and maintenance
Rates and water
Insurance
Telephone
Printing, stationery and advertising
Donations
Human resources consultancy
Activity expenses
Quality assurance, registration and regulatory
Accountancy and administrative assistance
Preparation of statutory accounts
Audit of statutory accounts
Depreciation of fixtures
Loss on disposal of fixed assets		 2023
£
874,357
44,388
74,969
65,987
112,767
9,564
23,987
8,213
4,342
50
2,893
388
10,331
140
4,500
8,700
13,870
-
1,259,446		 2022
£
798,119
55,567
71,628
36,671
104,479
9,875
21,530
8,888
4,194
-
7,582
67
10,496
371
3,900
8,100
11,552
2,982
1,156,001

All of the above expenditure is directly attributable to the provision of residential care.

Expenditure on charitable activities was made up of £1,259,446 (2022: £1,145,222) from unrestricted funds with £nil (2022: £10,779) from restricted funds.

16

Bushell House

Notes to the Financial Statements

For the year ended 31 December 2023

4 Wages and salaries

Wages and salaries
Social security costs
Pension costs
There are no individual salaries in excess of £60,000 per annum.
The average number of employees during the year was:
Care
Management and administration		 2023
£
779,439
50,714
44,204
874,357
2023
No
40
3
43		 2022
£
710,731
50,539
36,849
798,119
2022
No
39
3
42

The key management personnel of the charity comprise the Trustees, the General Manager, and the Deputy Manager. The total employee benefits of the key management personnel, including employer National Insurance and pension contributions, were £102,759 (2022: £93,999).

5 Governance costs

Auditors’ remuneration 2023
£
13,200
13,200		 2022
£
12,000
12,000

6 Auditors’ remuneration

Amounts paid to the auditors constituted an audit fee of £8,700 (2022: £8,100) and fees for the preparation of statutory accounts of £4,500 (2022: £3,900).

17

Bushell House

Notes to the Financial Statements

For the year ended 31 December 2023

7 Fixed assets

7
Fixed assets
Cost
At 1 January 2023
Additions
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022
8
Investments
Market value at 1 January 2023
Additions at cost
Disposal proceeds
Net investment gains/(losses)
Movement in cash held on deposit by investment agents
Market value at 31 December 2023		 Freehold
Land and
Buildings
£
865,450
-
865,450
-
-
-
865,450
865,450
Unrestricted
£
1,075,037
137,912
(159,398)
42,326
(46,480)		 Fixtures and
Equipment
£
213,533
15,808
229,341
118,970
13,870
132,840
96,501
94,563

Restricted

£

163,903

-

-

-

1,141

165,044		 Total
£
1,078,983
15,808
1,094,791
118,970
13,870
132,840
961,951
960,013
Total
£
1,238,940
137,912
(159,398)
42,326
(45,339)







1,049,397 165,044 1,214,441

18

Bushell House

Notes to the Financial Statements

For the year ended 31 December 2023

8 Investments (continued)

Historical Cost
Unrestricted
General fund
Restricted
Extraordinary repairs fund (created by order dated
18.4.50 – revised under scheme dated 15.5.77)
Total Investments (schedule 1)
9
Debtors
Fees receivable
Prepayments and accrued income
All debtors related to unrestricted funds in both 2023 and 2022.
10
Creditors
Trade creditors
Tax and social security
Accruals		 2023
£
6,187
23,602
29,789
2023
£
27,014
15,554
42,473
85,041		 Total
£
1,049,397
165,044
1,214,441
2022
£
272
26,819
27,091
2022
£
33,072
12,632
28,040
73,744

All creditors related to unrestricted funds in both 2023 and 2022.

11 Related party transactions

The Charity is under the control of the Trustees.

During the year the trustees received no remuneration, benefits in kind or reimbursed expenses (2022: £nil).

There were no transactions with related parties.

19

Bushell House

Notes to the Financial Statements

For the year ended 31 December 2023

12
Analysis of funds
General reserve
Designated funds:
Exceptional repair fund
Roof fund
Residents’ amenities fund
Total unrestricted funds
Restricted funds
Land and buildings
Other restricted funds:
Extraordinary repair fund
Pathway fund
Total restricted funds
Total funds		 At 1 Jan
2023
£
1,045,894
40,000
30,000
19,273
1,135,167
865,450
163,903
7,042
1,036,395
2,171,562		 Income
£
1,207,187
-
-
1,277
1,208,464
-
1,141
-
1,141
1,209,605		 Expenditure
£
(1,264,855)
-
-
(1,741)
(1,266,596)
-
-
-
-
(1,266,596)		 Investment
gains
£
42,326
-
-
-
42,326
-
-
-
-
42,326		 Transfers
£
(2,958)
-
10,000
-
7,042
-
-
(7,042)
(7,042)
-		 At 31 Dec
2023
£
1,027,594
40,000
40,000
18,809
1,126,403
865,450
165,044
-
1,030,494
2,156,897

20

Bushell House

Notes to the Financial Statements

For the year ended 31 December 2023

12
Analysis of funds (continued)
At 1 Jan
2022
£
General reserve
1,109,262
Designated funds:
Exceptional repair fund
40,000
Boiler fund
40,000
Roof fund
20,000
Residents’ amenities fund
19,938
Total unrestricted funds
1,229,200
Restricted funds
Land and buildings
865,450
Other restricted funds:
Infection Control Fund &
Lateral Flow Funding
10,555
Vaccination Grant
824
Workforce Capacity Grant
3,566
Extraordinary repair fund
163,366
Pathway fund
7,042
Total restricted funds
1,050,803
Total funds
2,280,003		 Income
£
1,117,183
-
-
-
30
1,117,213
-
1,864
-
362
537
-
2,763
1,119,976		 Expenditure
£
(1,152,009)
-
-
-
(695)
(1,152,704)
-
(6,027)
(824)
(3,928)
-
-
(10,779)
(1,163,483)		 Investment
gains
£
(64,934)
-
-
-
-
(64,934)
-
-
-
-
-
-
-
(64,934)		 Transfers
£
36,392
-
(40,000)
10,000
-
6,392
-
(6,392)
-
-
-
-
(6,392)
-		 At 31 Dec
2022
£
1,045,894
40,000
-
30,000
19,273
1,135,167
865,450
-
-
-
163,903
7,042
1,036,395
2,171,562

Exceptional repair fund

This designated fund is a fund set aside by the trustees for exceptional repairs.

Boiler fund

This designated fund is a fund set aside by the trustees for replacing the boilers. The boilers were replaced during the year and have been capitalised as part of the general fixed asset fund, the previously designated funds were utilised towards the cost of this work.

Roof fund

This designated fund is a fund set aside by the trustees for replacing the roof.

Residents' amenities fund

This designated fund is generated by donations received and funds generated by the activities of the Friends of Bushell House and will be used for major expenditure which will enhance the quality of life for the residents of Bushell House.

21

Bushell House

Notes to the Financial Statements

For the year ended 31 December 2023

12 Analysis of funds (continued)

Land and buildings fund

This represents Bushell House land and buildings.

Extraordinary repair fund

These funds represent the capital of the charity as created by order dated 18 April 1950 and revised under scheme of 13 May 1977. It is to be used for extraordinary repair costs.

Infection Control fund and lateral flow funding

The Infection Control fund and lateral flow funding represents funding from Lancashire County Council which was distributed to organisations within the care sector. The transfers in the year of £nil (2022: £6,392) is made in respect of loss of income from removing a room within the House for the purposes of staff changing and provision of a safe area for testing to be carried out.

Vaccination grant

The vaccination grant represents funding from Lancashire County Council which was distributed to organisations within the care sector.

Workforce capacity grant

The workforce capacity grant represents funding from Lancashire County Council which was distributed to organisations within the care sector to maintain safe staffing capacity.

Pathway fund

The pathway fund represents a donation from a former resident to be spent on creating a path in the garden. The path was built in 2019 and has been included within the value of land and buildings. The residual amount on this fund has been transferred during the year to the general reserve to reflect the ongoing maintenance costs associated with the path since it was first installed.

22

Bushell House

Schedule 1 – Summary of Investments For the year ended 31 December 2023

UK fixed interest
Equities
Property
Commodities
Alternatives
Money Market Fund
Cash on deposit		 Cost At
31 Dec
2022
£
120,287
695,065
35,358
23,970
141,750
-
126,112
1,142,542		 Market
value at
31 Dec
2022
£
102,752
780,430
33,313
31,255
165,078
-
126,112
1,238,940		 Additions/
(disposals)
at market
value
£
28,646
(80,238)
-
-
(19,904)
50,010
-
(21,486)		 Gain/(loss)
on
disposals
£
-
(1,830)
-
-
-
-
-
(1,830)		 Gain/(loss)
on retained
investments
£
5,608
43,290
(5,070)
2,169
(1,831)
(10)
-
44,156		 Cash
deposit
movement
£
-
-
-
-
-
-
(45,339)
(45,339)		 Cost At
31 Dec
2023
£
149,118
604,297
35,358
23,970
126,290
50,010
80,773
1,069,816		 Market
value at
31 Dec
2023
£
137,006
741,652
28,243
33,424
143,343
50,000
80,773
1,214,441		 2023
Income
£
4,750
23,158
1,572
-
1,784
998
1,141
33,403		 2022
Income
£
4,654
26,154
1,597
-
1,672
-
537
34,614

During the year investment income of £1,141 (2022: £537) was attributable to restricted income funds with the balance of £32,262 (2022: £34,077) adding to unrestricted funds.

23