Charity number 226621
The Friendly Societies Convalescent Scheme (formerly The Friendly Societies Convalescent Home)
Trustees' Report and Accounts
31 December 2024
The Friendly Societies Convalescent Scheme Trustees' Report and Accounts Contents
| Page | |
|---|---|
| Reference and administration details | 1 |
| Trustees' report | 2 - 4 |
| Statement of Financial Activities | 5 |
| Balance sheet | 6 |
| Notes to the accounts | 7 - 11 |
| Independent Examiner's Report | 12 |
1
The Friendly Societies Convalescent Scheme
Reference and Administration Details
Trustees
Mrs Janet M. Whitehead (formerly Clements) - Chairman Mrs Joanne Andrew Mr Richard Darlington - appointed 24 July 2025 Mrs Dorothy Deacon Mrs Gail Lancaster Mrs Janet Lewis Mr John Potten - died 17 March 2025 Mr Peter Saunders Mrs Angela Stanley
Independent Examiner
Mr Daniel Valentine ACA Begbies Unit 14, Park Barn Evegate Business Park Smeeth, Ashford TN25 6SX
Bankers
Nat West 140 High Street Herne Bay Kent CT6 5JX
Principal Address
8 Smithbarn Close Horley RH6 9LF
Charity registered number
226621
2
The Friendly Societies Convalescent Scheme
(formerly The Friendly Societies Convalescent Home)
Trustees' Report
for the year ended 31 December 2024
The Trustees present their report and accounts for the year ended 31 December 2024.
The Trustees confirm that the Annual Report and accounts have been prepared in accordance with the accounting policies set out in Note 1 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 FRS 102 applicable in the UK and Republic of Ireland published on 16 July 2014.
Structure, governance and management
The charity is set up by constitution and operated by the Board of Trustees. New trustees are interviewed and appointed by the Board.
Risk management
The Trustees have identified the major risks which the charity faces and consider that all necessary action has been taken to manage those risks.
Objectives and activities for the public benefit
The charity's original object was to provide convalescent treatment for members of friendly societies through its convalescent home in Herne Bay.
Following the sale of the charity's convalescent home in August 2010, the Trustees reviewed their objectives and activities with the Charity Commission and the charity's revised objects, under a scheme dated 20 May 2015, are the relief of sickness and the preservation of health of the public, in particular but not exclusively to assist members of Friendly Societies by providing grants to help in the provision of facilities and support services.
The Trustees confirm that they have continued to comply with their duty in Section 17 of the 2011 Charities Act to have due regard to the Charity Commission's public benefit guidance.
Grant making policy
The trustees' policy is to support any persons with financial grants towards the cost of convalescence. Applications must be supported by a medical report from a hospital or doctor supporting the need for a convalescent stay. The trustees will also consider a grant towards the cost of a carer staying with the patient on convalescence.
The trustees also provide grants towards the costs of a shortfall in convalescent claims to the Oddfellows and Foresters Friendly Societies. A system is place through the Societies whereby the applications are approved following medical certification. From November 2020 the trustees will pay 100% of any shortfall up to £500 per week, up to 2 weeks per annum.
No claims have been refused. These claims require a medical certificate signed by a Doctor. The trustees continue to explore ways of extending the guest programme.
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The Friendly Societies Convalescent Scheme
(formerly The Friendly Societies Convalescent Home)
Trustees' Report
for the year ended 31 December 2024
Trustees' report and financial review
The need to source a leaflet and website provider to link with our website page was our priority, but all attempts to engage with commercial companies failed. So the Trustees were left promoting the Charity through the Societies we actively work with and personal recommendation from others who have used the scheme. The policy of considering each claim on its’ individual merits remains and different types of accommodation are used. The grant is a top up grant to stay through a Society scheme, other times it is to stay at a specific location such as a hotel or apartment with family support.
With convalescent homes closing throughout the country the natural inclination is to feel that the facility is no longer required. However, the Trustees believe the need exists and it is a case of promoting the benefits of a convalescent or respite stay.
Funds continue to be available and well managed and the increased focus will be to promote and attract. Reviewing the year it was apparent that things needs a new approach, and in January 2025 the Administrator, Richard Darlington advised of his intention to retire after many years of dedicated service. He retired at the end of June 2025 and Angela Stanley took over the role from 1 July.
Total income for the year was £51,320 (2023: £49,032) and total expenditure was £51,301 (2023: £53,014). Net gains on investments amounted to £115,220 (2023: gains of £85,385) resulting in net surplus for the year of £115,239 (2023: net surplus of £81,403). At 31 December 2024 total funds were £2,284,662 of which £211,392 were unrestricted.
Investment policy and performance
The management of the investment portfolio is governed not only by a Client Agreement Letter (September 2013) but also by a Written Investment Policy Statement (“WIPS”) dated 31st July 2012. The WIPS can be summarised as follows:
The Trustees have chosen as their investment objective a Balanced return (between income and capital growth) and to maintain the capital value at least in line with inflation. An appropriate mix of assets within certain ranges has been agreed (as revised 10th July 2014).
In terms of risk, the Trustees have a moderate level of tolerance and have directed the Managers to have due regard for the suitability of the investments held and the need for diversification (including the stipulation that no non-collective investment should exceed 8% of the value of the portfolio).
The portfolio had a positive year in 2024 returning 7.0% net of fees. Performance was driven largely by the equity component within the portfolio, of which the US holdings were the standout performers. The main US index, the S&P 500 delivering a total return of around 25% in USD terms, led by the mega-cap “Magnificent Seven” technology stocks (including Amazon, Apple and Microsoft), which together accounted for over half of that gain. UK and European markets were modest in terms of their returns, posting gains of around 5%. Fixed income performance was steady if unspectacular as expectations to interest rate cuts were scaled back throughout the year. Gold is deserving of recognition with our investment in the precious metal up 28% on the year. 2025 was off to a volatile start with President Trump shifting global trade policy with a raft of tariffs announced via his Liberation Day statement on the 2nd of April. Coming off the back of a strong 2024, equity markets sold off heavily on the news but have since recovered as the shock to global growth does not appear as bad as initially feared.
4
The Friendly Societies Convalescent Scheme
(formerly The Friendly Societies Convalescent Home)
Trustees' Report
for the year ended 31 December 2024
Reserves policy
The Trustees are aware that the reserves are growing and are seeking more options to increase grants. Their aim is that 50% of their annual income should go towards grants, and that they should hold the income for 2 years in reserve to give continuity should their investments underperform.
Trustees' responsibilities
The Trustees are responsible for preparing the Trustees' report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Charity law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources of the charity for that period. In preparing these accounts, 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 Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011. 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.
This report was approved by the Trustees on 30 September 2025
Mrs Janet M Whitehead Chairman
5
The Friendly Societies Convalescent Scheme
(formerly The Friendly Societies Convalescent Home)
Statement of Financial Activities
for the year ended 31 December 2024
| Notes Income from: Investments 2 Total income Expenditure on: Raising funds 3 Charitable activities 4 Total expenditure Net gains/(losses) on investment assets Net income/(expenditure) Transfers Transfers between funds Net movement in funds Reconciliation of Funds Total Funds at 1 January 2024 Total Funds at 31 December 2024 |
Permanent Endowment Unrestricted Total Fund Fund 2024 £ £ £ - 51,320 51,320 - 51,320 51,320 17,938 5,523 23,461 - 27,840 27,840 17,938 33,363 51,301 115,220 - 115,220 97,282 17,957 115,239 - - - 97,282 17,957 115,239 1,975,988 193,435 2,169,423 2,073,270 211,392 2,284,662 |
Permanent Endowment Unrestricted Total Fund Fund 2023 £ £ £ - 49,032 49,032 - 49,032 49,032 17,262 6,289 23,551 - 29,463 29,463 17,262 35,752 53,014 85,385 - 85,385 68,123 13,280 81,403 - - - 68,123 13,280 81,403 1,907,865 180,155 2,088,020 1,975,988 193,435 2,169,423 |
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The Notes to the Accounts form part of the Financial Statements
6
The Friendly Societies Convalescent Scheme
(formerly The Friendly Societies Convalescent Home)
Balance Sheet
as at 31 December 2024
| Notes Fixed assets Investments - Listed investments 8 - Cash held within portfolio Current assets Debtors 9 Cash at bank 10 Creditors: amounts falling due within one year 11 Net current assets/(liabilities) Net assets Represented by: Permanent Endowment Fund Unrestricted Fund Total Funds 12 |
£ £ 2,235,516 37,631 2,273,147 127 16,135 16,262 (4,747) 11,515 2,284,662 2,073,270 211,392 2,284,662 2024 |
£ £ 2,142,059 27,538 2,169,597 119 6,923 7,042 (7,216) (174) 2,169,423 1,975,988 193,435 2,169,423 2023 |
|---|---|---|
Approved by the Trustees on 30 September 2025
Mrs Janet M Whitehead Chairman
The Notes to the Accounts form part of the Financial Statements
7
The Friendly Societies Convalescent Scheme (formerly The Friendly Societies Convalescent Home) Notes to the Accounts for the year ended 31 December 2024
1 Accounting policies
Basis of preparation and assessment of going concern
The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) published on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
The charity constitutes a public benefit entity as defined by FRS 102.
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Fund accounting
The Unrestricted Fund is available for use at the discretion of the trustees in furtherance of the general objectives of the charity.
The Permanent Endowment Fund derives from the sale proceeds of the convalescent home. The Charity Commission lifted the restriction over the sale of the home, permitting its sale, and as a result the proceeds continue to carry the permanent requirement originally attached to the property.
Income
All income is recognised once the charity has entitlement to the income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably.
Interest on funds held on deposit is included upon notification of the interest paid or payable by the bank. Dividends are recognised upon notification from our investment advisor of the dividend paid or payable.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings in the statement of financial activities.
Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. In the case of an unconditional grant offer, this is accrued once the recipient has been notified of the grant award. Grant awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Trust.
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
The costs of raising funds consist of investment management and an apportionment of support and governance costs
The expenditure on charitable activities includes grants payable and an apportionment of support and governance costs.
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The Friendly Societies Convalescent Scheme (formerly The Friendly Societies Convalescent Home) Notes to the Accounts for the year ended 31 December 2024
Fixed asset investments
Investments are a form of basic financial instrument and 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.
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 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.
The charity does not acquire or use put options, derivatives or other complex financial instruments.
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2
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3
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4
| Investment income Interest received Nat West Investec Wealth & Investment Ltd Investec portfolio Costs of raising funds Investment management costs Support and governance costs (see note 5) Expenditure on charitable activities Grants payable (see note 6) Support and governance costs (see note 5) |
2024 £ 52 781 50,487 51,320 2024 £ 17,938 5,523 23,461 2024 £ 11,270 16,570 27,840 |
2023 £ 43 766 48,223 49,032 2023 £ 17,262 6,289 23,551 2023 £ 10,597 18,866 29,463 |
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The Friendly Societies Convalescent Scheme (formerly The Friendly Societies Convalescent Home) Notes to the Accounts
for the year ended 31 December 2024
5 Analysis of support and governance costs
6
7
| Support costs Staff costs (note 7) PO Box Storage rental Computer and website costs Bank charges Sundry expenses Governance costs Accountancy and independent examination Meeting expenses Total Allocated: Costs of raising funds (25%) (note 3) Charitable activities (75% ) (note 4) Grants payable Paid to individuals Staff costs Gross salaries Employer's national insurance |
2024 £ 17,160 416 - - 501 (4) 18,073 4,020 - 4,020 22,093 2024 £ 5,523 16,570 22,093 2024 £ 11,270 11,270 2024 £ 17,160 - 17,160 |
2023 £ 17,160 390 1,100 1,069 327 1 20,047 3,900 1,208 5,108 25,155 2023 £ 6,289 18,866 25,155 2023 £ 10,597 10,597 2023 £ 17,160 - 17,160 |
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The average number of employees during the year was 1 (2023: 1).
During the year, no Trustee received any remuneration or benefits in kind (2023: £nil). Seven trustees received reimbursement of expenses in the year of £nil (2023: £351).
Total emoluments received by the charity's key management personnel was £17,160 (2023: £17,160).
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The Friendly Societies Convalescent Scheme
(formerly The Friendly Societies Convalescent Home)
Notes to the Accounts for the year ended 31 December 2024
| 8 Investments Market value At 1 January 2024 Additions at cost Disposals at carrying value Net gain on revaluation At 31 December 2024 Historical cost at 31 December 2024 Listed investments at fair value comprised: UK fixed interest Overseas fixed interest UK equities International equities Emerging economies Property Alternative assets Money market instruments 9 Debtors Prepayments 10 Cash balances Nat West 11 Creditors: amounts falling due within one year PAYE & NI Accruals |
2024 £ 358,461 96,714 135,887 1,315,656 59,170 33,626 231,002 5,000 2,235,516 2024 £ 127 2024 £ 16,135 2024 £ 678 4,069 4,747 |
Listed investments £ 2,142,059 1,058,549 (1,091,390) 126,298 2,235,516 2,026,212 2023 £ 316,891 61,991 270,507 1,079,012 84,347 71,281 258,030 - 2,142,059 2023 £ 119 2023 £ 6,963 2023 £ 316 6,900 7,216 |
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The Friendly Societies Convalescent Scheme (formerly The Friendly Societies Convalescent Home) Notes to the Accounts for the year ended 31 December 2024
| 12 Movement in Funds Permanent Endowment Fund Unrestricted Fund Movement in Funds Permanent Endowment Fund Unrestricted Fund |
B/fwd at C/fwd at 1st Jan Gains & 31st Dec 2024 Income Expenditure (losses) 2024 £ £ £ £ £ 1,975,988 - (17,938) 115,220 2,073,270 193,435 51,320 (33,363) - 211,392 2,169,423 51,320 (51,301) 115,220 2,284,662 B/fwd at C/fwd at 1st Jan Gains & 31st Dec 2023 Income Expenditure (losses) 2023 £ £ £ £ £ 1,907,865 - (17,262) 85,385 1,975,988 180,155 49,032 (35,752) - 193,435 2,088,020 49,032 (53,014) 85,385 2,169,423 |
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The unrestricted fund is available to be spent for any of the purposes of the charity.
The Permanent Endowment Fund derives from the sale proceeds of the convalescent home. The Charity Commission lifted the restriction over the sale of the home, permitting its sale, and as a result the proceeds continue to carry the permanent requirement originally attached to the property.
| 13 Analysis of Net Assets Between Funds Fixed assets investments Cash at bank Other current assets At 31 December 2024 Analysis of Net Assets Between Funds Fixed assets investments Cash at bank Other current assets At 31 December 2023 |
Endowment Unrestricted Total Fund Fund 2024 £ £ £ 2,273,147 - 2,273,147 - 16,135 16,135 (199,877) 195,257 (4,620) 2,073,270 211,392 2,284,662 Permanent Endowment Unrestricted Total Fund Fund 2023 £ £ £ 2,169,597 - 2,169,597 - 6,923 6,923 (193,609) 186,512 (7,097) 1,975,988 193,435 2,169,423 |
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14 Related Party Transactions
There were no related party transactions in the year.
12 The Friendly Societies Convaleseent Seheme Jiidependent F,xMminer's Rcpoi't to the Trustees for the year ended 31 December 2024 I repoi't to tlie ti'ustees on iny examination of the accounts of Fi'iendly Societies Convalescent Scheme (the chai'ity) foi. the yeai. ended 31 Deccmbci. 2024 which are set out oil pages 5 to I l. Rc5ponsibiliti¢s i)tLd basis of I'eport As thc cliarity's ti'ustees you ai'E i'esponsible for the pi'eparation of the accounts in accoi'dance with the i'equireinents of the Cliarities Act 2011 {'tlie Act'l. I I'epoit in respect of Iny examination of tlie ti'uslees, accounts cai'i'ied out undei. %ection 145 of tlie 201 l Act and in carryi1)g oiit my exainination I liave followed all the applicable Dll'ections given by the Chai'ity Cominis5ioner undei. se¢tioi) 145(51(b) of the 2011 Act. Independent examiner's statemeul I havc complete niy exainination. l Lonfii'm that no matei'ial Inattei's have coine to iny atteThtion in cow)ectioii with the exatnination giving ille cause to believe that in any material i'espect.. 111 accounting records wei'e Dot kept in respect of the Trust as I'equired by section 130 of the Act., oi. 121 the accounts do not a¢coi'd with those iecords. or 131 the accounts do not coinply witli the applicable i'equireinents concerning the form anct content of accounts set out in the Charities {Accounts and Repoits) Regulations 2008 other thall any reqiEii'en)ellt that Ihe accounts give a 'true and fail. VIEW, which i5 Ilot a mattel. considered as pai't of an independent exaininalion. I have no matters and have coine across no oiliei. matter5 in connection with the examination to which attention should b¢ drawn in this report in order to enable a proper understanding of the accounts to be l'eached. Daiiiel Valentiije ACA Begbies Unit 14, Pai'k Bai'n Evegate B115iness Park Sineeth, Ashford Kent TN25 6SX 6 October 2025