CHARITY REGISTRATION NUMBER: 223946
Cumberland and Westmorland Convalescent Institution Financial Statements
31 March 2021
SAINT & CO
Chartered Accountants & statutory auditor Sterling House Wavell Drive, Rosehill Carlisle, Cumbria CA1 2SA
Cumberland and Westmorland Convalescent Institution
Financial Statements
Year ended 31 March 2021
| Page | |
|---|---|
| Trustees' annual report | 1 |
| Independent auditor's report to the trustees of Cumberland and | |
| Westmorland Convalescent Institution | 11 |
| Statement of financial activities | 15 |
| Statement of financial position | 16 |
| Statement of cash flows | 17 |
| Notes to the financial statements | 18 |
Cumberland and Westmorland Convalescent Institution
Trustees' Annual Report
Year ended 31 March 2021
The trustees present their report and the financial statements of the charity for the year ended 31 March 2021.
Reference and administrative details
| Registered charity name | Cumberland and Westmorland Convalescent Institution |
|---|---|
| Charity registration number | 223946 |
| Principal office | The Convalescent Home |
| Silloth | |
| Wigton | |
| CA7 4JH | |
| Cumbria | |
| The trustees | Mr I W Brown |
| Mr R M Wharton | |
| Mr D J D Arter | |
| Mr T H Cartmell | |
| Dr R M Jones | |
| Mr R Killen | |
| Mr L Marshall | |
| Mrs J Martin | |
| Mr G Wilkinson | |
| Canon B Rothwell | |
| Mrs J H Fearon | |
| Mrs J R Day | |
| Mr P Allison | |
| Mr D Hurst | |
| President | The Right Reverend James Newcome, Lord Bishop of Carlisle |
| Vice President | Lord Melvyn Bragg of Wigton |
| Charity secretary | Mrs D Harrison |
| Auditor | Saint & Co |
| Chartered Accountants & statutory auditor | |
| Sterling House | |
| Wavell Drive, Rosehill | |
| Carlisle, Cumbria | |
| CA1 2SA | |
| Bankers | HSBC Bank Plc |
| Court Square | |
| Carlisle | |
| Cumbria | |
| CA1 1QT |
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Cumberland and Westmorland Convalescent Institution
Trustees' Annual Report (continued)
Year ended 31 March 2021
Cumberland Building Society Station Road Silloth Wigton Cumbria CA7 4AE Solicitors Cartmell Shepherd Solicitors Rosehill Carlisle Cumbria CA1 2RW
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Cumberland and Westmorland Convalescent Institution
Trustees' Annual Report (continued)
Year ended 31 March 2021
Structure, Governance and Management
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.
Governing Document
The Silloth Nursing and Residential Care Home is a registered charity, number 223946. Its full name is the Cumberland and Westmorland Convalescent Institution, and it was established by trust deed on 1 May, 1862 for the purposes of a Sanatorium or Convalescent Institution for the use of the natives of either of the Counties of Cumberland and Westmorland and others.
Appointment of Management Committee
The members of Committee are the Trustees of the charity. Members are elected as a vacancy occurs by unanimous vote of the existing board. The Charity's work focuses on vulnerable people and the Management Committee seeks to ensure that their needs are appropriately reflected through the diversity of its members. The Trustees keep the skill requirements under review and the more traditional business and medical skills are well represented on the Committee.
Trustee Induction and Training :
The induction process for any newly appointed Trustee comprises an initial meeting with the Chairman and members of the Management Committee. Induction training includes an introduction to the sub-committees, objectives, policies and procedures of the Home. Trustees are required to read the relevant Charity Commission information and familiarise themselves with the activity of the Home and its legislative requirements.
All Trustees give of their time freely and no trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are disclosed in note 15 and 28 of the accounts. Trustees are required to disclose all relevant interests and register them with the Management Committee and, in accordance with the Home's policy, withdraw from decisions where a conflict of interest arises. Trustees who are involved in the running of and sit on the board of independent trusts who have dealings with the charity are disclosed in note 28 of the accounts.
Organisation
The general running of the Charity is devolved to the Management Committee, which can have 16 members. The Trustees meet on the second Thursday of each month and there are sub-committees covering finance and housekeeping. Details of the current members are given on page 1 of these accounts.
The day-to-day running of the Home is delegated to Matron, Mrs. Ann Blair, who is supported by the relevant employees of the Charity.
Arrangements for setting key personnel pay and remuneration of key management personnel
The Management Committee considers that they, together with the Manager, Committee Secretary and Senior Qualified Staff constitute the home's Key Management Personnel. Members of the Committee give of their time freely. Pay and remuneration of personnel is set on the recommendation of the Finance Committee and forwarded to the full Committee for possible alteration and subsequent ratification. This procedure is kept under annual review.
A number of criteria are used in setting pay:
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nature of the role and responsibilities
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retention of key personnel
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nursing/care home sector average salary for comparable positions
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competitive salaries in the region
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trends in pay across the nursing/care home sector
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Cumberland and Westmorland Convalescent Institution
Trustees' Annual Report (continued)
Year ended 31 March 2021
Objectives and activities
The Charity's objectives, as set out in its Trust Deed, are that the Home should be used for the purposes of a Sanatorium or Convalescent Institution for the use of the natives of either of the former counties of Cumberland and Westmorland and others. When planning our activities for the year, the Trustees have given careful consideration to the Charity Commission's guidance on public benefit, in particular, the specific guidance on fee charging, and the guidance on the charitable purposes of the relief of those in need, by reason of youth, age, illhealth, disability, financial hardship or other disadvantage, and the advancement of health.
The main objectives and activities focus on the care services delivered and are undertaken to further our charitable purposes for the public benefit.
The strategies employed to achieve the Charity's objectives are:
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providing post operative convalescence, short and long stay nursing and residential care.
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delivering a range of extensive care services within the fee structure.
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a continued training programme for all staff, ensuring a highly trained and motivated workforce.
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compliance with all health and safety measures, care home legislation and registration requirements.
Care services
The Home is registered with the Care Quality Commission for 38 placements and is rated Outstanding, and includes nursing and residential placements under the category 'Old Age', and placements for young disabled adults under the category 'Physical Disability'.
The Charity welcomes people from all walks of life; equal access to our services is an important issue for the Home. No-one is discriminated against on the grounds of race, disability, gender, age, sexual orientation, religion or belief. The Home strives to preserve and maintain the dignity, individuality and privacy of all clients within a warm and caring atmosphere. Recognising that their needs may be medical / therapeutic (for physical and mental welfare), cultural, psychological, spiritual, emotional and social. The Charity has a holistic approach to care; each client is encouraged to participate in the development of their individual plan of care, in which the involvement of family and friends may be appropriate and is greatly valued. We work closely with General Practitioners and other professions involved in healthcare, in order to assess each individual's needs and help them to understand the procedures and processes involved.
Our 'Moving and Handling' team works closely with clients, identifying their capabilities and helping them to achieve their maximum potential. This service is of particular benefit to our short stay clients, helping to rehabilitate people back into their home environment.
The Charity works closely with residents, families and multiple disciplinary teams to develop improvements in the quality and organisation of care for people approaching the end of their lives.
Fees
The Charity has addressed the risk that the availability of benefits to the public could be restricted because nursing and residential fees are charged. However, we also offer our services to residents who do not pay for their care by themselves, but who are funded by the local authority. Therefore the Trustees are confident that potential beneficiaries are not excluded because of their ability to pay for care fees.
The Trustees review fees annually. In common with other care homes, fees are based on a client's assessed needs and funded through a variety of sources, ranging from self-funding to local authority and health service provision. People who qualify for Free Nursing Care are assessed by a representative of the Cumbria Clinical Commissioning Group and receive a 'Registered Nursing Care Contribution' towards their fees or, in some circumstances, may receive total funding through the National Health Service.
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Cumberland and Westmorland Convalescent Institution
Trustees' Annual Report (continued)
Year ended 31 March 2021
Care Fees include all care and accommodation costs, food and drink, heating and light, a three monthly footcare service, laundry done on the premises, basic toiletries as well as other staff services. The Home's care services do not differentiate between those delivered to people funded through private means or through the local authority.
Invitations are regularly extended to our residents' family members and to local people who are elderly and living alone, to join our residents for meals, activities and outings.
Staff
Staff employment is only confirmed after rigorous checks have been made through a successful completion of a DBS application with the Disclosure and Barring Service.
All new members of staff are given induction training in line with the National Minimum Standards and the Care Act 2014. Also included in the programme is the Gold Standards Framework training. This involves all care service requirements, including health and safety training and an introduction to the Home's policies and procedures. Matron ensures that members of staff are given the opportunity of further training and development throughout their time at the Home. New members of staff who have no formal qualifications are given the opportunity to undertake both the Care Certificate and a vocational qualification.
Care Home Legislation
The Trustees are mindful of the legislation pertaining to the care of vulnerable people and the upkeep of their accommodation. The Home is properly insured and the required periodic maintenance checks are made on the fabric of the building and the equipment used in the care of residents and patients.
Volunteers, Gifts in Kind
We are forever indebted to the nursing home's League of Friends, who freely give of their time to raise funds for the benefit of residents and the Home. This year, sadly due to the effects of the Coronavirus Pandemic the Home and the League of Friends' were not able to hold the weekly coffee morning, which has been a huge miss to everyone.
Related Parties
The Charity has a close relationship with the Holme Cultram Sea Dyke Charity, which provides funding for people in need of emergency respite care who live within the boundaries of the Ancient Parish of Holme Cultram.
Risk Management
The Management Committee has a risk management strategy which comprises:
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an annual review of the risks the Charity may face;
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the establishment of systems and procedures to mitigate those risks identified in the strategy;
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the implementation of procedures designed to minimise any potential impact on the charity should those risks materialise;
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vetting procedures as required by law for the protection of vulnerable people.
The Committee is responsible for the management of the risks faced by the home. Our risk register is reviewed annually and the Trustees review any new risks identified during the year, on an ongoing basis. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and by the consistent quality of nursing and residential services. These procedures are under constant review.
Risks are identified, assessed and controls established throughout the year. The Trustees recognise that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed. A key element in the management of financial risk is the setting of a reserves policy and its regular review by the Management Committee.
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Cumberland and Westmorland Convalescent Institution
Trustees' Annual Report (continued)
Year ended 31 March 2021
Reserves Policy
The Management Committee has examined the Charity's requirements for reserves, in light of the main risks to the organisation. Our major operational risk is the possibility of the failure to provide a service which would result in relocating residents and patients. This would have a severe impact on the Charity. The Trustees estimated that it could take three to five months to relocate clients, and the need to meet running costs and staff contractual obligations during this time, were identified as a significant factor. The Management Committee has therefore established a policy whereby the unrestricted funds held by the charity should account for at least six months of the average annual expenditure. The reserves are needed to meet the working capital of the Charity and the Trustees are confident that at this level they would be able to continue the current activities of the charity in the event of a significant drop in funding. The present level of free reserves available to the Charity of £509,202 is below what is anticipated and below our target of £720,000. The reserves fund has supported extra costs due to Coronavirus which have incurred in several areas; personal protective equipment, salary costs, safe visiting to name but a few. The Trustees remain thankful that the Home had adequate reserves to support the operating costs. The Management Committee's policy is to retain these reserves to the level required, by means of annual operating surpluses. This policy is reviewed annually.
Investments
Investment income recorded a decrease over the financial year from £4,299 to £3,413 at 31st March.
In September 2019 the home invested £85,000 in a 2 year fixed term account with the Hampshire Trust Bank. Future investment opportunities were put on hold at the end of the year due to a sharp fall in interest rates. This will mature in September 2021.
The performance of the Home's investments is continually monitored by the Finance Committee and reported on a quarterly basis. The Trustees agreed that the specialised unit trust designed for the charity sector, continues to meet the Home's requirements for the time being.
Achievements and performance
The Care Quality Commission last carried out an inspection in August 2019 when the Home was awarded the official rating of Outstanding for the second time.
We continue to provide an outstanding level of Care for End of Life with individuals and families now choosing Silloth Nursing Home as an alternative to hospitals and hospices.
Our Staff training programmes were delayed by the Pandemic, to date however, around 90% of care staff have a vocational qualification in Health and Social Care in either Level 2 or 3. We are grateful to all of our staff for their hard work and continued commitment, many of whom have been with us for over 25 years.
The home responded robustly to the Coronavirus pandemic at the beginning of March 2020 with the initiation of our Pandemic Policy. We are grateful to Matron and our Secretary who kept the Trustees informed of developments at the nursing home during this time.
Arrangements were put in place at the end of last financial year for the Trustees to hold monthly "Zoom" meetings.
A mere thank you to staff seems totally inadequate when taking into account the amazing dedication to duty and courage they have displayed throughout this pandemic, our gratitude and admiration holds no bounds.
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Cumberland and Westmorland Convalescent Institution
Trustees' Annual Report (continued)
Year ended 31 March 2021
Financial review
The Home's main funding source, income from nursing and residential care fees, decreased by £100,192 as a result of the onset of the Coronavirus Pandemic in March 2020, from £1,470,398 in 2020 to £1,370,206. This included Local Authority and NHS Cumbria funding. Turnover for the year, including care fees, donations, fundraising and investment income, totalled £1,487,469; a decrease of £7,845 on the previous year. The Home was fortunate in receiving grants from Local Government to assist with safe visiting and infection control.
Expenditure increased by £108,602 on the previous year, from £1,493,878 to £1,602,480, the main increase being in staff wages and salaries. During the year the Home spent over £70,000 on PPE and associated costs involved with the pandemic. Staff costs will continue to rise in the next financial year in accordance with the National Living Wage, as well as cost of living rises.
The Trustees are mindful of the upkeep of the premises; special thanks are given to Wills Builders for completing the conversion of rooms 22/23 to an en-suite room and separate shower facility and all other contractors involved in the work.
The end of year resulted in a trading deficit of £107,935 arising from:
Total Incoming Resources 2020-2021: £1,494,545 Less Total Expenditure 2020-2021: £1,602,480 -£107,935
Coronavirus has affected the Homes financial situation, which is reflected in the accounts. The Trustees were thankful for the healthy level of reserves which were available to the Home and which have assisted in coping with the loss in income and rise in costs over the past year.
Total funds of the charity at the year end are £1,749,946.
The charity’s current level of unrestricted free reserves (total funds less the amount held in fixed assets and restricted funds) is £580,639. Included in these reserves there are designated funds of £71,437 for repairs, refurbishments, training and patient amenities leaving £509,202 of freely available general unrestricted reserves. Restricted funds at the year end totalled £94,421 and endowment funds were £26,458. Tangible fixed assets of £1,053,826 are held for use by the charity (unrestricted fund £1,048,428, restricted fund £5,398) and can only be realised by the disposal of these assets.
Personnel
There has been some staff movement in 2020/2021;
At the end of March 2020, the Office welcomed Mrs Carrie Henderson as part of the administration team. Kathleen Jones has reduced her hours to prepare for retirement.
Long Service Awards were awarded to Angela Reay (Care assistant) for 30 years of service to the Home and Sheila Wilson (Care assistant) for 10 years.
Every year we thank our staff for their hard work; this year is no exception. We are so grateful for the sacrifices our staff have made this year, going above and beyond the normal realms of their employment. They have coped so well with the pressure, extra duties , extreme working conditions, the sadness and anguish that Coronavirus has brought to everyone. We are and always will be grateful for their efforts over the past year.
Our sincere thanks go once again to Matron, Ann Blair, Sister Linda Faulder and all staff for another year of dedicated care for our Residents. We thank Dawn Harrison, Kathleen Jones and Carrie Henderson for their hard work throughout the year.
Thanks are also due to Dr. Darren Hymers and his colleagues at Silloth Group Medical Practice for continuing to provide a service of excellent medical care, through the use of video links and conversations.
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Cumberland and Westmorland Convalescent Institution
Trustees' Annual Report (continued)
Year ended 31 March 2021
Financial review (continued)
Coronavirus March 2020 (ongoing)
March 2020 began with the Home in total lockdown. In line with Government guidelines all visitations were stopped, which had a huge impact on residents and their families who were unable to visit. Matron and senior nursing staff were heavily involved in keeping families informed and helping loved ones through what was a stressful period for all involved. Sadly, in common with other care homes, further lockdowns continued throughout the year.
Daily staff meetings were put in place, giving all staff relevant up-to-date information, support and guidance. The Management Committee were concerned for the mental wellbeing of members of staff at this time and access to a Mental Health Therapist was offered to members of staff struggling to cope. Matron's 'open door' policy and the support of senior nursing staff were also of benefit to residents and staff during the year
In May 2020, the nursing home registered with the Department of Health and Social Care for regular testing of both residents and staff for Covid 19; members of staff being tested on a weekly basis and residents every 28 days. Along with those being furloughed, staff testing positive were relieved from duty to self isolate. We are grateful to members of staff who fulfilled other duties during these periods, allowing the home to function efficiently at this time. Three tests per week for staff commenced in January 2021, involving two lateral flow tests and one laboratory PCR test. Weekly testing of residents was introduced in February 2021.
Residents and members of staff received their first Covid vaccination in December 2020. The second vaccination was carried out in March 2021. Both residents and staff welcomed the introduction of the vaccine and the protection given.
New guidance came into force in March 2021, allowing two nominated visitors per resident by appointment. This included the requirement for visitors to take a lateral flow test displaying a negative result, prior to entry.
Frequent consultations took place throughout the year with the Care Quality Commission and other external agencies, including the Department of Social Services, Mental Health Team, District Nursing Team and Public Health England. We are grateful for the guidance and advice given to the nursing home.
We are thankful to local businesses, organisations and members of the public who have given the home tremendous support throughout these times. Donations received included: PPE supplies, toiletries and flower tubs to name just a few. Staff were treated to roast dinners, sweets, cakes and snacks. A much appreciated and welcome boost to morale.
We are grateful to every member of staff for what has been an extremely challenging year for all of them. A special thank you is owed to Matron and Secretary for keeping the Trustees informed of all developments and for the extra workload endured with the utmost professionalism and dedication to duty.
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Cumberland and Westmorland Convalescent Institution
Trustees' Annual Report (continued)
Year ended 31 March 2021
Plans for future periods
Looking to the future, the Management Committee has examined the circumstances facing the Charity and its future income and expenditure patterns. The Committee has therefore designated £30,000 for general refurbishment, £30,000 for repairs, £5,000 for training and £5,000 for beds. Staff training remains paramount.
The Trustees are committed to continual staff training and development, and continue to review our training programme to ensure that courses remain relevant to the Home's requirements. A strong emphasis is therefore placed on courses pertaining to the Home's delivery of care, health and safety, and legislative requirements. Our training programme for the coming year continues to focus on: Palliative Care, National Vocational Qualifications in Care, Safety of Vulnerable Adults, Dementia, Fire Safety Awareness, Food Hygiene, Dignity, Nutrition, Tissue Viability, Health and Safety, First Aid Infection Control and Data Security.
In 2022 reaccreditation will again take place for the Gold Standards Framework. The Home has been part of the programme since 2008 achieving Beacon status at each accreditation and also being awarded with Care Home of the Year in 2016. The Home is now recognised as a Platinum Home.
The key objectives when determining future plans remain:
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To maintain the current high standard of care
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To maintain client accommodation and the nursing home to a high standard 3. To provide equipment and mobility aids where required
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To continue to review staff training requirements
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To meet legislative requirements pertaining to the running of the Home.
Trustees' responsibilities statement
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 charity trustees to prepare financial statements for each 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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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Cumberland and Westmorland Convalescent Institution
Trustees' Annual Report (continued)
Year ended 31 March 2021
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 applicable Charities (Accounts and Reports) Regulations, 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' annual report was approved on 12 August 2021 and signed on behalf of the board of trustees by:
Mr I W Brown Chair
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Cumberland and Westmorland Convalescent Institution
Independent Auditor's Report to the Trustees of Cumberland and Westmorland Convalescent Institution
Year ended 31 March 2021
Opinion
We have audited the financial statements of Cumberland and Westmorland Convalescent Institution (the 'charity') for the year ended 31 March 2021 which comprise the statement of financial activities, statement of financial position, statement of cash flows and the related notes, 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 FRS 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:
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give a true and fair view of the state of the charity's affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.
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Cumberland and Westmorland Convalescent Institution
Independent Auditor's Report to the Trustees of Cumberland and Westmorland Convalescent Institution (continued)
Year ended 31 March 2021
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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:
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the information given in the trustees' report is inconsistent in any material respect with the financial statements; or
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adequate accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so.
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Cumberland and Westmorland Convalescent Institution
Independent Auditor's Report to the Trustees of Cumberland and Westmorland
Convalescent Institution (continued)
Year ended 31 March 2021
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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 the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
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the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
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we identified the laws and regulations applicable to the company through discussions with directors and other management;
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we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company;
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
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identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
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To address the risk of fraud through management bias and override of controls, we:
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performed analytical procedures to identify any unusual or unexpected relationships;
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tested journal entries to identify unusual transactions;
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assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and
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investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
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Cumberland and Westmorland Convalescent Institution
Independent Auditor's Report to the Trustees of Cumberland and Westmorland
Convalescent Institution (continued)
Year ended 31 March 2021
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reading the minutes of meetings of those charged with governance;
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enquiring of management as to actual and potential litigation and claims; and
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reviewing correspondence with relevant regulators such as the Charity Commission and the company's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the 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 members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's members 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Saint & Co Sterling House Chartered Accountants & statutory auditor Wavell Drive, Rosehill Carlisle, Cumbria CA1 2SA
31 August 2021
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Cumberland and Westmorland Convalescent Institution
Statement of Financial Activities
Year ended 31 March 2021
| 2021 | 2021 | 2020 | ||||
|---|---|---|---|---|---|---|
| Unrestricted | Restricted | Endowment | ||||
| funds | funds | funds | Total funds | Total funds | ||
| Note | £ | £ | £ | £ | £ | |
| Income and endowments | ||||||
| Donations and legacies | 4 | 111,792 | – | – | 111,792 | 16,963 |
| Charitable activities | 5 | 1,372,264 | – | – | 1,372,264 | 1,474,052 |
| Investment income | 6 | 1,704 | 1,709 | – | 3,413 | 4,299 |
| -------------------------------------------- | ------------------------ | --------------- | -------------------------------------------- | -------------------------------------------- | ||
| Total income | 1,485,760 | 1,709 | – | 1,487,469 | 1,495,314 | |
| ============================================ | ======================== | =============== | ============================================ | ============================================ | ||
| Expenditure | ||||||
| Expenditure on raising funds: | ||||||
| Costs of other | ||||||
| trading activities | 7 | (20) | – | – | (20) | (20) |
| Expenditure on charitable | ||||||
| activities | 8,9 | (1,600,496) | (1,964) | – | (1,602,460) | (1,493,858) |
| -------------------------------------------- | ------------------------ | --------------- | -------------------------------------------- | -------------------------------------------- | ||
| Total expenditure | (1,600,516) | (1,964) | – | (1,602,480) | (1,493,878) | |
| ============================================ | ======================== | =============== | ============================================ | ============================================ | ||
| Net gains/(losses) on | ||||||
| investments | 11 | 2,545 | – | 4,531 | 7,076 | (3,874) |
| -------------------------------------------- | ------------------------ | ------------------------ | -------------------------------------------- | -------------------------------------------- | ||
| Net expenditure | (112,211) | (255) | 4,531 | (107,935) | (2,438) | |
| ============================================ | ======================== | ======================== | ============================================ | ============================================ | ||
| Transfers between funds | (870) | 870 | – | – | – | |
| -------------------------------------------- | ------------------------ | ------------------------ | -------------------------------------------- | -------------------------------------------- | ||
| Net movement in funds | (113,081) | 615 | 4,531 | (107,935) | (2,438) | |
| Reconciliation of funds | ||||||
| Total funds brought forward | 1,742,148 | 93,806 | 21,927 | 1,857,881 | 1,860,319 | |
| -------------------------------------------- | ----------------------------- | ----------------------------- | -------------------------------------------- | -------------------------------------------- | ||
| Total funds carried forward | 1,629,067 | 94,421 | 26,458 | 1,749,946 | 1,857,881 | |
| ============================================ | ============================= | ============================= | ============================================ | ============================================ |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 18 to 31 form part of these financial statements.
- 15 -
Cumberland and Westmorland Convalescent Institution
Statement of Financial Position
31 March 2021
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Note | £ | £ | £ | ||
| Fixed assets | |||||
| Tangible fixed assets | 16 | 1,053,826 | 1,068,829 | ||
| Investments | 17 | 40,111 | 33,034 | ||
| -------------------------------------------- | -------------------------------------------- | ||||
| 1,093,937 | 1,101,863 | ||||
| Current assets | |||||
| Debtors | 18 | 90,554 | 115,273 | ||
| Cash at bank and in hand | 622,142 | 731,590 | |||
| ---------------------------------- | ---------------------------------- | ||||
| 712,696 | 846,863 | ||||
| Creditors: amounts falling due within one year | 19 | (56,687) | (90,845) | ||
| ---------------------------------- | ---------------------------------- | ||||
| Net current assets | 656,009 | 756,018 | |||
| -------------------------------------------- | -------------------------------------------- | ||||
| Total assets less current liabilities | 1,749,946 | 1,857,881 | |||
| -------------------------------------------- | -------------------------------------------- | ||||
| Net assets | 1,749,946 | 1,857,881 | |||
| ============================================ | ============================================ | ||||
| Funds of the charity | |||||
| Endowment funds | 26,458 | 21,927 | |||
| Restricted funds | 94,421 | 93,805 | |||
| Unrestricted funds | 1,629,067 | 1,742,149 | |||
| -------------------------------------------- | -------------------------------------------- | ||||
| Total charity funds | 23 | 1,749,946 | 1,857,881 | ||
| ============================================ | ============================================ |
These financial statements were approved by the board of trustees and authorised for issue on 12 August 2021, and are signed on behalf of the board by:
Mr I W Brown Trustee
Mr R M Wharton Trustee
The notes on pages 18 to 31 form part of these financial statements.
- 16 -
Cumberland and Westmorland Convalescent Institution
Statement of Cash Flows
Year ended 31 March 2021
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net expenditure | (107,935) | (2,438) |
| Adjustments for: | ||
| Depreciation of tangible fixed assets | 25,489 | 26,513 |
| Government grant income | (102,216) | – |
| Net gains/(losses) on investments | (7,076) | 3,874 |
| Dividends, interest and rents from investments | (1,644) | (3,011) |
| Other interest receivable and similar income | (1,769) | (1,288) |
| Changes in: | ||
| Trade and other debtors | 24,719 | (66,318) |
| Trade and other creditors | (34,159) | 31,494 |
| ---------------------------------- | ----------------------------- | |
| Cash generated from operations | (204,591) | (11,174) |
| Interest received | 1,769 | 1,288 |
| ---------------------------------- | ----------------------------- | |
| Net cash used in operating activities | (202,822) | (9,886) |
| ================================== | ============================= | |
| Cash flows from investing activities | ||
| Dividends, interest and rents from investments | 1,644 | 3,011 |
| Purchase of tangible assets | (10,486) | (151,740) |
| ---------------------------------- | ---------------------------------- | |
| Net cash used in investing activities | (8,842) | (148,729) |
| ================================== | ================================== | |
| Cash flows from financing activities | ||
| Government grant income | 102,216 | – |
| ---------------------------------- | ---------------------------------- | |
| Net cash from financing activities | 102,216 | – |
| ================================== | ================================== | |
| Net decrease in cash and cash equivalents | (109,448) | (158,615) |
| Cash and cash equivalents at beginning of year | 731,590 | 890,205 |
| ---------------------------------- | ---------------------------------- | |
| Cash and cash equivalents at end of year | 622,142 | 731,590 |
| ================================== | ================================== |
The notes on pages 18 to 31 form part of these financial statements.
- 17 -
Cumberland and Westmorland Convalescent Institution
Notes to the Financial Statements
Year ended 31 March 2021
1. General information
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is The Convalescent Home, Silloth, Wigton, CA7 4JH, Cumbria.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.
The financial statements have been prepared to show 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 preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn."
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There are no material uncertainties about the charity's ability to continue.
Value added tax
Value added tax is not recoverable by the Charity, and as such is included in the relevant costs in the Statement of Financial Activities.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Significant judgements
The trustees consider there were no significant judgements made in preparing the financial statements.
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The trustees consider there are no key sources of estimation uncertainty.
- 18 -
Cumberland and Westmorland Convalescent Institution
Notes to the Financial Statements (continued)
Year ended 31 March 2021
3. Accounting policies (continued)
Fund accounting
All fees are unrestricted. Income received for a purpose specified by the donor is accounted for as restricted to that purpose. Other income, not so specified, is treated as available for general purposes, or unrestricted.
Permanent endowment funds exist where the Charity receives a gift or legacy under the terms of which the capital may not be expended. The income may be restricted or unrestricted, depending on the terms of the original gift.
The trustees have discretion to allocate sums to particular funds as they so wish. Such funds are known as designated funds, and remain unrestricted.
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
-
income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
-
legacy income is recognised when receipt is probable and entitlement is established.
-
income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
-
income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
- 19 -
Cumberland and Westmorland Convalescent Institution
Notes to the Financial Statements (continued)
Year ended 31 March 2021
3. Accounting policies (continued)
Resources expended
Expenditure is accounted for on the accruals basis. Where expenditure relates to a specific project, in accordance with the wishes of a donor, it is shown as restricted expenditure.
Fundraising costs
This is expenditure incurred in encouraging freewill giving to the charity.
Charitable activities costs includes direct residential care home costs and management and administration expenditure
Direct residential care home costs include all costs associated with operating the primary activities of the charity, these being the running of the residential care home. The costs include wages, food, activity and premises costs and directly attributable telephone and sundry costs, including depreciation on assets directly used for charitable purposes. Management and administration expenditure includes cost of administration staff wages, running of the office and any legal fees and depreciation on office. Termination benefits are recognised are recognised as a liability and expense only when the company is demonstrably committed either to terminate the employment of an employee or group of employees before the normal retirement date or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.
Governance costs
This is expenditure incurred in relation to audit, accountancy and legal fees.
Tangible assets
The accounts have been prepared on the historic cost basis. Land and building improvements and major items of equipment are capitalised within these accounts. Fixed assets costing less than £10,000 are not capitalised, but written off to the Income and Expenditure Account as incurred. This is a departure from section 17 of FRS102 but is justified on the grounds that the assets are generally replacements of existing equipment. Assets not capitalised under this policy are disclosed in the notes to these accounts.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Equipment - 15% reducing balance Property Improvements - 2% reducing balance
Investments
Listed investments are shown at market value. Unrealised gains accrued during the year are included on the SOFA. Unlisted investments are shown at historic cost.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received.
- 20 -
Cumberland and Westmorland Convalescent Institution
Notes to the Financial Statements (continued)
Year ended 31 March 2021
3. Accounting policies (continued)
Government grants (continued)
Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
4. Donations and legacies
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| Donations | |||
| Annual subscriptions | 488 | – | 488 |
| Sundry donations | 6,135 | – | 6,135 |
| In memoriam | 2,031 | – | 2,031 |
| AOE admin fee | 76 | – | 76 |
| Gifts in Kind-The League of Friends/Staff fundraising | – | – | – |
| Legacies | – | – | – |
| PPE donated goods from government | 846 | – | 846 |
| Grants | |||
| Grants relating to Covid-19 | 102,216 | – | 102,216 |
| ---------------------------------- | --------------- | ---------------------------------- | |
| 111,792 | – | 111,792 | |
| ================================== | =============== | ================================== |
- 21 -
Cumberland and Westmorland Convalescent Institution
Notes to the Financial Statements (continued)
Year ended 31 March 2021
4. Donations and legacies (continued)
| Unrestricted | Restricted | Total Funds | ||
|---|---|---|---|---|
| Funds | Funds | 2020 | ||
| £ | £ | £ | ||
| Donations | ||||
| Annual subscriptions | 363 | – | 363 | |
| Sundry donations | 7,384 | 1,000 | 8,384 | |
| In memoriam | 1,994 | – | 1,994 | |
| AOE admin fee | 54 | – | 54 | |
| Gifts in Kind-The League of Friends/Staff | fundraising | 2,027 | – | 2,027 |
| Legacies | 4,141 | – | 4,141 | |
| PPE donated goods from government | – | – | – | |
| Grants | ||||
| Grants relating to Covid-19 | – | – | – | |
| ----------------------------- | ------------------------ | ----------------------------- | ||
| 15,963 | 1,000 | 16,963 | ||
| ============================= | ======================== | ============================= | ||
| Charitable activities | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Residential fees | 1,370,206 | 1,370,206 | 1,470,398 | 1,470,398 |
| Meals | 1,830 | 1,830 | 890 | 890 |
| Sundry | 228 | 228 | 694 | 694 |
| Designated-Skills for care | – | – | 2,070 | 2,070 |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | |
| 1,372,264 | 1,372,264 | 1,474,052 | 1,474,052 | |
| ============================================ | ============================================ | ============================================ | ============================================ | |
| Investment income | ||||
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2021 | ||
| £ | £ | £ | ||
| COIF / M & G Charifund interest and dividends | 1,644 | – | 1,644 | |
| Bank interest received | 60 | 1,709 | 1,769 | |
| ------------------------ | ------------------------ | ------------------------ | ||
| 1,704 | 1,709 | 3,413 | ||
| ======================== | ======================== | ======================== | ||
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2020 | ||
| £ | £ | £ | ||
| COIF / M & G Charifund interest and dividends | 3,011 | – | 3,011 | |
| Bank interest received | 1,288 | – | 1,288 | |
| ------------------------ | --------------- | ------------------------ | ||
| 4,299 | – | 4,299 | ||
| ======================== | =============== | ======================== |
5. Charitable activities
6. Investment income
- 22 -
Cumberland and Westmorland Convalescent Institution
Notes to the Financial Statements (continued)
Year ended 31 March 2021
7. Costs of other trading activities
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
|---|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | ||
| £ | £ | £ | £ | ||
| Costs of other trading activities - | |||||
| Membership schemes and social lotteries | 20 | 20 | 20 | 20 | |
| =============== | =============== | =============== | =============== | ||
| 8. | Expenditure on charitable activities by fund | type | |||
| Unrestricted | Restricted | Total Funds | |||
| Funds | Funds | 2021 | |||
| £ | £ | £ | |||
| Direct costs | 1,451,552 | 1,964 | 1,453,516 | ||
| Management and administration | 144,753 | – | 144,753 | ||
| Support costs | 4,191 | – | 4,191 | ||
| -------------------------------------------- | ------------------------ | -------------------------------------------- | |||
| 1,600,496 | 1,964 | 1,602,460 | |||
| ============================================ | ======================== | ============================================ | |||
| Unrestricted | Restricted | Total Funds | |||
| Funds | Funds | 2020 | |||
| £ | £ | £ | |||
| Direct costs | 1,365,815 | 2,757 | 1,368,572 | ||
| Management and administration | 121,311 | – | 121,311 | ||
| Support costs | 3,975 | – | 3,975 | ||
| -------------------------------------------- | ------------------------ | -------------------------------------------- | |||
| 1,491,101 | 2,757 | 1,493,858 | |||
| ============================================ | ======================== | ============================================ | |||
| 9. | Expenditure on charitable activities by activity type | ||||
| Activities | |||||
| undertaken | Total funds | Total fund | |||
| directly | Support costs | 2021 | 2020 | ||
| £ | £ | £ | £ | ||
| Direct costs | 1,453,516 | – | 1,453,516 | 1,368,572 | |
| Management and administration | 144,753 | – | 144,753 | 121,311 | |
| Governance costs | – | 4,191 | 4,191 | 3,975 | |
| -------------------------------------------- | ------------------------ | -------------------------------------------- | -------------------------------------------- | ||
| 1,598,269 | 4,191 | 1,602,460 | 1,493,858 | ||
| ============================================ | ======================== | ============================================ | ============================================ | ||
| 10. | Analysis of support costs | ||||
| Analysis of | |||||
| support costs | Total 2021 | Total 2020 | |||
| £ | £ | £ | |||
| Governance costs | 4,191 | 4,191 | 3,975 | ||
| ======================== | ======================== | ======================== |
- 23 -
Cumberland and Westmorland Convalescent Institution
Notes to the Financial Statements (continued)
Year ended 31 March 2021
11. Net gains/(losses) on investments
| Unrestricted | Endowment | Total Funds | ||
|---|---|---|---|---|
| Funds | Funds | 2021 | ||
| £ | £ | £ | ||
| Unrealised loss / gain on revaluation on investment | ||||
| assets | 2,545 | 4,531 | 7,076 | |
| ======================== | ======================== | ======================== | ||
| Unrestricted | Endowment | Total Funds | ||
| Funds | Funds | 2020 | ||
| £ | £ | £ | ||
| Unrealised loss / gain on revaluation on investment | ||||
| assets | (3,157) | (717) | (3,874) | |
| ======================== | =============== | ======================== | ||
| 12. | Net expenditure | |||
| Net expenditure is stated after charging/(crediting): | ||||
| 2021 | 2020 | |||
| £ | £ | |||
| Depreciation of tangible fixed assets | 25,489 | 26,513 | ||
| Operating lease rentals | 17,012 | 9,020 | ||
| ============================= | ============================= | |||
| 13. | Auditors remuneration | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Fees payable for the audit of the financial statements | 2,016 | 1,850 | ||
| Fees payable to the charity's auditor for other non-audit | ||||
| services | 2,175 | 2,125 | ||
| ------------------------ | ------------------------ | |||
| 4,191 | 3,975 | |||
| ======================== | ======================== | |||
| 14. | Staff costs | |||
| The total staff costs and employee benefits for the reporting | period are analysed as follows: | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Wages and salaries | 1,136,333 | 1,001,898 | ||
| Social security costs | 62,988 | 58,700 | ||
| Employer contributions to pension plans | 32,135 | 26,794 | ||
| -------------------------------------------- | -------------------------------------------- | |||
| 1,231,456 | 1,087,392 | |||
| ============================================ | ============================================ |
The average head count of employees during the year was 63 (2020: 67). The average number of full-time equivalent employees during the year is analysed as follows:
| 2021 | 2020 | |
|---|---|---|
| No. | No. | |
| Nursing, caring services and domestic | 59 | 64 |
| Clerical and administration | 4 | 3 |
| --------------- | --------------- | |
| 63 | 67 | |
| =============== | =============== |
No employee received employee benefits of more than £60,000 during the year (2020: Nil).
- 24 -
Cumberland and Westmorland Convalescent Institution
Notes to the Financial Statements (continued)
Year ended 31 March 2021
14. Staff costs (continued)
Key Management Personnel
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £91,485 (2020:£79,614).
15. Trustee remuneration and expenses
No remuneration directly or indirectly out of the funds of the charity was paid or payable for the year to any trustee or to any person or persons known to be connected with any of them. No reimbursement of expenses has been made or is due to be made to any of the trustees in respect of the year.
16. Tangible fixed assets
| Property | ||||
|---|---|---|---|---|
| Land | Equipment | Improvements |
Total | |
| £ | £ | £ | £ | |
| Cost | ||||
| At 1 April 2020 | 5,200 | 119,823 | 1,442,764 | 1,567,787 |
| Additions | – | – | 10,486 |
10,486 |
| ------------------------ | ---------------------------------- | -------------------------------------------- | -------------------------------------------- | |
| At 31 March 2021 | 5,200 | 119,823 | 1,453,250 | 1,578,273 |
| ======================== | ================================== | ============================================ | ============================================ | |
| Depreciation | ||||
| At 1 April 2020 | – | 89,021 | 409,937 | 498,958 |
| Charge for the year | – | 4,620 | 20,869 | 25,489 |
| ------------------------ | ---------------------------------- | -------------------------------------------- | -------------------------------------------- | |
| At 31 March 2021 | – | 93,641 | 430,806 | 524,447 |
| ======================== | ================================== | ============================================ | ============================================ | |
| Carrying amount | ||||
| At 31 March 2021 | 5,200 | 26,182 | 1,022,444 | 1,053,826 |
| ======================== | ================================== | ============================================ | ============================================ | |
| At 31 March 2020 | 5,200 | 30,802 | 1,032,827 | 1,068,829 |
| ======================== | ================================== | ============================================ | ============================================ |
The home considers that the market value of the land is in excess of the cost £5,200 included in the accounts. All assets are used primarily for direct charitable expenses. Accordingly depreciation of £25,489 has been charged to Direct Charitable Expenditure. The following assets were acquired during the year but, under the terms of the trust's accounting policy, not capitalised:-
| £ | |
|---|---|
| Electrical | 1,088 |
| Fixtures & Fittings | 1,354 |
| Bedroom furniture | 1,060 |
- 25 -
Cumberland and Westmorland Convalescent Institution
Notes to the Financial Statements (continued)
Year ended 31 March 2021
17. Investments
| Listed | Other | ||
|---|---|---|---|
| investments | investments | Total | |
| £ | £ | £ | |
| Cost or valuation | |||
| At 1 April 2020 | 32,914 | 120 | 33,034 |
| Additions | – | – | – |
| Fair value movements | 7,077 | – | 7,077 |
| ----------------------------- | --------------- | ----------------------------- | |
| At 31 March 2021 | 39,991 | 120 | 40,111 |
| ============================= | =============== | ============================= | |
| Impairment | |||
| At 1 April 2020 and 31 March 2021 | – | – | |
| =============== | ============================= | ||
| Carrying amount | |||
| At 31 March 2021 | 39,991 | 120 | 40,111 |
| ============================= | =============== | ============================= | |
| At 31 March 2020 | 32,914 | 120 | 33,034 |
| ============================= | =============== | ============================= |
All investments shown above are held at valuation.
Financial assets held at fair value
Listed investments have been valued at publicly available market value, generally on the mid market price at the close of business at the year end.
Other investments have been valued at cost, as there is no readily available market value.
18. Debtors
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Trade debtors | 85,853 | 99,234 |
| Prepayments and accrued income | 1,240 | 16,039 |
| Other debtors | 3,461 | – |
| ----------------------------- | ---------------------------------- | |
| 90,554 | 115,273 | |
| ============================= | ================================== |
19. Creditors: amounts falling due within one year
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Trade creditors | 8,907 | 45,346 |
| Accruals and deferred income | 33,215 | 31,850 |
| Social security and other taxes | 12,240 | 12,052 |
| Other creditors | 2,325 | 1,597 |
| ----------------------------- | ----------------------------- | |
| 56,687 | 90,845 | |
| ============================= | ============================= |
- 26 -
Cumberland and Westmorland Convalescent Institution
Notes to the Financial Statements (continued)
Year ended 31 March 2021
20. Deferred income
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| At 1 April 2020 | 8,199 | – |
| Amount released to income | (8,199) | – |
| Amount deferred in year | 4,860 | 8,199 |
| ------------------------ | ------------------------ | |
| At 31 March 2021 | 4,860 | 8,199 |
| ======================== | ======================== |
The amount included in deferred income relates to fee income for the next financial year.
21. Pensions and other post retirement benefits
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £32,135 (2020: £26,794).
22. Government grants
The amounts recognised in the financial statements for government grants are as follows:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Recognised in income from donations and legacies: | ||
| Infection control fund | 62,005 | – |
| Job retention scheme | 24,239 | |
| Statutory sick pay grant | 1,835 | |
| Rapid testing funding | 9,637 | |
| Council discretionary funding | 4,500 | |
| ------------------------ | ------------------------ | |
| 102,216 | – | |
| ================================== | =============== |
- 27 -
Cumberland and Westmorland Convalescent Institution
Notes to the Financial Statements (continued)
Year ended 31 March 2021
23. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | ||||||
|---|---|---|---|---|---|---|
| At | Gains and | At | ||||
| 1 Apr 2020 | Income | Expenditure | Transfers | losses | 31 Mar 2021 | |
| £ | £ | £ | £ | £ | £ | |
| General Funds | 1,670,711 | 1,485,760 | (1,595,897) | (5,489) | 2,545 | 1,557,630 |
| General | ||||||
| Refurbishment | 30,000 | – | – | – | – | 30,000 |
| Bed Fund | 5,000 | – | (3,949) | 3,949 | – | 5,000 |
| Training Fund | 5,000 | – | (180) | 180 | – | 5,000 |
| Patient Amenities | 1,437 | – | – | – | – | 1,437 |
| Repairs Fund | 30,000 | – | (490) | 490 | – | 30,000 |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ------------------------ | ------------------------ | -------------------------------------------- | |
| 1,742,148 | 1,485,760 | (1,600,516) | (870) | 2,545 | 1,629,067 | |
| ============================================ | ============================================ | ============================================ | ======================== | ======================== | ============================================ | |
| At | Gains and | At | ||||
| 1 Apr 2019 | Income | Expenditure | Transfers | losses | 31 Mar 2020 | |
| £ | £ | £ | £ | £ | £ | |
| General Funds | 1,754,702 | 1,490,969 | (1,445,200) | (126,603) | (3,157) | 1,670,711 |
| General | ||||||
| Refurbishment | 30,000 | – | (30,272) | 30,272 | – | 30,000 |
| Bed Fund | 5,000 | – | – | – | – | 5,000 |
| Training Fund | 5,000 | 2,070 | (3,770) | 1,700 | – | 5,000 |
| Patient Amenities | 983 | 1,275 | (820) | – | – | 1,438 |
| Repairs Fund | 30,000 | – | (11,059) | 11,059 | – | 30,000 |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ---------------------------------- | ------------------------ | -------------------------------------------- | |
| 1,825,685 | 1,494,314 | (1,491,121) | (83,572) | (3,157) | 1,742,149 |
|
| ============================================ | ============================================ | ============================================ | ================================== | ======================== | ============================================ |
Designated funds are monies set aside for specific purposes, the amounts are determined by the trustees, there are designated funds for General Refurbishment, Bed Fund, Patient Amenities and a Training Fund.
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Cumberland and Westmorland Convalescent Institution
Notes to the Financial Statements (continued)
Year ended 31 March 2021
23. Analysis of charitable funds (continued)
Restricted funds
| Restricted funds | ||||||
|---|---|---|---|---|---|---|
| At | Gains and | At | ||||
| 1 Apr 2020 | Income | Expenditure | Transfers | losses | 31 Mar 2021 | |
| £ | £ | £ | £ | £ | £ | |
| Sea Dyke Fund | 1,444 | 2 | – | 14 | – | 1,460 |
| Dr Hutton Legacy | 7,362 | – | (1,964) | – | – | 5,398 |
| Hampshire Trust | 85,000 | 1,707 | – | 856 | – | 87,563 |
| ----------------------------- | ------------------------ | ------------------------ | --------------- | --------------- | ----------------------------- | |
| 93,806 | 1,709 | (1,964) | 870 | – | 94,421 | |
| ============================= | ======================== | ======================== | =============== | =============== | ============================= | |
| At | Gains and | At | ||||
| 1 Apr 2019 | Income | Expenditure | Transfers | losses | 31 Mar 2020 | |
| £ | £ | £ | £ | £ | £ | |
| Sea Dyke Fund | 2,599 | 1,000 | (728) | (1,428) | – | 1,443 |
| Dr Hutton Legacy | 9,391 | – | (2,029) | – | – | 7,362 |
| Hampshire Trust | – | – | – | 85,000 | – | 85,000 |
| ----------------------------- | ------------------------ | ------------------------ | ----------------------------- | --------------- | ----------------------------- | |
| 11,990 | 1,000 | (2,757) | 83,572 | – | 93,805 | |
| ============================= | ======================== | ======================== | ============================= | =============== | ============================= |
The Dr Hutton legacy was used to purchase various items of equipment for the home, the expenditure each year relates to the depreciation on those assets.
The Hampshire Trust Account was set up as an investment opportunity and offered the best interest rates for the amount deposited.
The remaining restricted funds are used to fund respite fees for those who qualify.
Endowment funds
| At | Gains and | At | ||||||
|---|---|---|---|---|---|---|---|---|
| 1 | Apr 2020 | Income | Expenditure | Transfers | losses | 31 Mar 2021 | ||
| £ | £ | £ | £ | £ | £ | |||
| 1476 | COIF shares | 21,927 | – | – | – | 4,531 | 26,458 | |
| ============================= | =============== | =============== | =============== | ======================== | ============================= | |||
| At | Gains and | At | ||||||
| 1 | Apr 2019 | Income | Expenditure | Transfers | losses | 31 Mar 2020 | ||
| £ | £ | £ | £ | £ | £ | |||
| 1476 | COIF shares | 22,644 | – | – | – | (717) | 21,927 |
|
| ============================= | =============== | =============== | =============== | =============== | ============================= |
The holding of 1476 Charities Official Investment Fund units are held as part of the permanent endowment of the home. The income shares were gifts from G Moore (946) and R Carruthers (530). The Trustees may use the dividends paid to the home for general purposes.
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Cumberland and Westmorland Convalescent Institution
Notes to the Financial Statements (continued)
Year ended 31 March 2021
24. Analysis of net assets between funds
| Unrestricted | Restricted | Endowment | Total Funds | |
|---|---|---|---|---|
| Funds | Funds | Funds | 2021 | |
| £ | £ | £ | £ | |
| Tangible fixed assets | 1,048,428 | 5,398 | – | 1,053,826 |
| Investments | 13,653 | – | 26,458 | 40,111 |
| Current assets | 623,673 | 89,023 | – | 712,696 |
| Creditors less than 1 year | (56,687) | – | – | (56,687) |
| -------------------------------------------- | ----------------------------- | ----------------------------- | -------------------------------------------- | |
| Net assets | 1,629,067 | 94,421 | 26,458 | 1,749,946 |
| ============================================ | ============================= | ============================= | ============================================ | |
| Unrestricted | Restricted | Endowment | Total Funds | |
| Funds | Funds | Funds | 2020 | |
| £ | £ | £ | £ | |
| Tangible fixed assets | 1,061,467 | 7,362 | – | 1,068,829 |
| Investments | 11,107 | – | 21,927 | 33,034 |
| Current assets | 760,420 | 86,443 | – | 846,863 |
| Creditors less than 1 year | (90,845) | – | – | (90,845) |
| -------------------------------------------- | ----------------------------- | ----------------------------- | -------------------------------------------- | |
| Net assets | 1,742,149 | 93,805 | 21,927 | 1,857,881 |
| ============================================ | ============================= | ============================= | ============================================ |
25. Financial instruments
The carrying amount for each category of financial instrument is as follows:
| The carrying amount for each category of financial instrument is as follows: | ||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Financial assets measured at fair value through income and expenditure | ||
| Investments | 39,991 | 32,914 |
| ============================= | ============================= |
26. Analysis of changes in net debt
| At | |||||
|---|---|---|---|---|---|
| At | 1 | Apr 2020 | Cash flows | 31 Mar 2021 | |
| £ | £ | £ | |||
| Cash at bank and in hand | 731,590 | (109,448) | 622,142 | ||
| ================================== | ================================== | ================================== |
27. Operating lease commitments
The total future minimum lease payments under non-cancellable operating leases are as follows:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Not later than 1 year | 19,050 | 10,410 |
| Later than 1 year and not later than 5 years | 68,172 | 41,707 |
| Later than 5 years | 14,686 | 5,956 |
| ---------------------------------- | ----------------------------- | |
| 101,908 | 58,073 | |
| ================================== | ============================= |
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Cumberland and Westmorland Convalescent Institution
Notes to the Financial Statements (continued)
Year ended 31 March 2021
28. Related parties
The following trustees are involved in the running of and sit on the board of independent trusts who also have dealings with this charity:-
Mr L Marshall, Mr D Hurst - Holme Cultram Sea Dyke Charity (Hon. Member)
Canon B Rothwell, Mr G Wilkinson - The Longcake Charity
The aggregate of donations without conditions from trustees and related parties totalled £1,040 (2020: £4,717).
- 31 -