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2023-03-31-accounts

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Registered Charity No: 227794 Registered Company No: 00407697 (England and Wales)

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

CONTENTS

CONTENTS
Page No
Legal and Administrative Details 1
Council of Management Report 2 - 7
Independent Auditors' Report 8 - 11
Statement of Financial Activities 12 - 13
Balance Sheet 14
Cashflow Statement 15
Notes to the Financial Statements 16 - 32

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

LEGAL AND ADMINISTRATIVE DETAILS

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Patrons Mr T Waite CBE
Mrs A Cottrell OBE
Vice Presidents Mrs P Shephard MBE
Mr B Dale FCIPD
Council of Management Mr N Wells (Chairman)
Mrs P Unwin (Vice Chairman)
Mrs D Allaway (Treasurer)
Mr R Clark
Dr P Garrod
Mr A Hyner
Ms S Toms
Key Management Personnel Mr P Montgomery BSc. MA, MBS, MSc(Psych) - Chief Executive and Secretary
Mr D John
Mr J Cotterill
Ms K Bardsley (until 30 November 2022)
Ms H Taylor (from 1 December 2022)
Ms K Jeal (from 1 December 2022)
Ms R Richards
Ms L Wright (until 30 November 2022)
Registered Company number 00407697
Registered Charity number 227794
Principal Address Strode Park House
Lower Herne Road
Herne
Herne Bay
Kent CT6 7NE
Independent Auditor Azets Audit Services
5th Floor
Ashford Commercial Quarter
1 Dover Place
Ashford
Kent TN23 1FB
Bankers Metro Bank PLC
16 St. George's Street
Canterbury
Kent CT1 2SR
Solicitors Furley Page
39 St. Margaret's Street
Canterbury
Kent CT1 2TX
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STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

REPORT OF COUNCIL OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2023

The Council of Management present herewith their report and the financial statements for the year ended 31 March 2023. The Council of Management have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

Objectives and activities

Mission statement

Strode Park Foundation (established 1946) is a Voluntary Organisation providing high quality services to meet the changing and individual needs of people with disabilities.

The philosophy of Strode Park Foundation, in keeping with this mission, is to enable people with disabilities and associated care needs to make choices for themselves and to support them in maintaining skills and independence throughout their lives. To achieve this mission Strode Park Foundation provides a number of services tailored to meet the individual needs of people with disabilities.

Public Benefit

The Council of Management has considered the guidance on Public Benefit published by the Charity Commission and is satisfied that the Foundation's aims and objectives and current and planned activities comply with the Charity Commission's public benefit requirements. Listed below are the main activities of the Foundation, and how they comply with the Charity Commission's definition of public benefit.

How our activities deliver public benefit

Strode Park Foundation provides public benefit by promoting the advancement of health and by supporting those in need because of ill-health or disability. Public benefit is achieved through the provision of the following services:

Strode Park House

Registered under the Health and Social Care Act 2008 as a Care Home with Nursing, Strode Park House provides residential care and support for up to 55 permanent, respite and neuro rehabilitation clients.

The home has a suite of excellent therapy facilities including a physiotherapy gym, hydrotherapy pool and occupational therapy training kitchen.

The home is set in several acres of beautiful grounds with wheelchair accessible features for the recreation and pleasure of the residents.

Coach House

The Coach House is registered under the Health and Social Care Act 2008 as a Care Home for adults with disabilities and accommodates up to 9 permanent and respite clients with physical and/or learning disabilities. The home also provides independence training programmes.

Footprints

Registered with CQC, Footprints provides residential care and support for up to 10 children or young adults with disabilities.

Redwalls

Redwalls is registered under the Health and Social Care Act 2008 as a Care Home for adults with disabilities, Redwalls provides residential care and support for up to 6 permanent and respite clients.

Platters Farm Lodge

Platters Farm Lodge is registered under the Health and Social Care Act 2008 and provides long-stay, respite and rehabilitation services for up to 43 adults. The home includes an eight bedroom specialist dementia unit.

Lady Dane Farm House

Lady Dane Farmhouse is registered under the Health and Social Care Act 2008 and provides residential care and support for up to 15 people with physical and or learning disabilities.

Supported Living Units

Strode Park Foundation has 5 supported living facilities (including the Coach House Mews, North Lodge, Woodside, Parkview, and the Lady Dane Annexe) which are available for individuals who do not require full residential care but who would benefit from some degree of staff support.

The individuals staying in this accommodation can access appropriate, needs determined care and support from the ComCare team which is Strode Park Foundation’s CQC registered home care agency.

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

REPORT OF COUNCIL OF MANAGEMENT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

How our activities deliver public benefit

Day Opportunities

Based both at the Strode Park site and in the local community, the Day Opportunities service provides independence and life skills training for young adults and work experience programmes for people with physical and/or learning difficulties who live in the community. The service also offers physiotherapy, social activities and educational opportunities for both Strode Park residents and day clients referred by the NHS and social services and individuals in receipt of direct payments.

Theatre in the Park

The Foundation is the proud owner of a large and beautiful, purpose designed amphitheatre built in the grounds of Strode Park.

The Foundation is fortunate to be able to call on committed volunteers who assist with running the Theatre programme and cover marshalling responsibilities during performances.

Transport

The Foundation has 16 vehicles, including specially adapted cars and ambulances, these vehicles are used to take clients to and from the day opportunities services, and to take residents to appointments and out on trips.

Charity shops

Managed and staffed by dedicated volunteers, the Foundation ran two charity shops, one in Herne Bay and one in Tankerton. Both outlets have made an important contribution to Strode Park's income and the Herne Bay shop provides a valuable opportunity for training in a retail setting for the service users.

The landlord for the Tankerton shop applied for and was granted planning permission for a change of use. Therefore, when the lease expired in June 2023 it was not renewed.

There were no material changes in the objectives of the Foundation during the year.

Strategic Report

Achievements and performance

The year under review has been challenging for Strode Park Foundation and indeed for most local social care providers.

National and local recruitment and retention challenges in health and social care remain a notable aspect of the labour market and continue to dampen the effectiveness of endeavours to reduce expenditure on agency staff. This has had a negative impact on financial performance, and, for some SPF services, the quality of care provided.

Although 6 of SPF’s 8 registered and regulated services retained ‘Good’ Care Quality Commission (CQC) or Ofsted ratings, adverse reports for 2 services highlighted areas of practice which had fallen from the high standards of care that SPF has provided for many years.

It is pleasing to report that both these services, Strode Park House, and the Coach House, have now been reinspected by CQC and both have regained a rating of ‘Good’. This improvement reflects well on the staff team and especially on the new Registered Managers. Everyone involved is eager to ensure that lessons are learned, improvements sustained, and the services strengthened even further.

Despite these considerable challenges, the Foundation has successfully retained several prestigious, externally validated quality assurance accreditations including:

Top ‘5 Star’ environmental health awards for all services

Disability Confident Committed ISO 9001 ISO 50001 Investors in People

NHS approved Certificate of Health and Safety Compliance (CHAS).

In addition to the above, the Foundation has achieved or made significant progress with a number of identified strategic goals

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

REPORT OF COUNCIL OF MANAGEMENT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Strategic Report

Achievements and performance (continued)

Strode Park Foundation is immensely thankful for the on-going support, affection, and encouragement of local people and businesses including the following who have all made valuable financial contributions to the Foundation:

The Council of Management is immensely grateful for the generosity of all the people who have supported the Foundation and to the many volunteers and staff members who continue to make remarkable contributions to the success of the charity. This continued support the Foundation is a vital component in the charity’s mission to provide services of the highest possible quality for people with disabilities.

Financial review

2022/23 was a particularly difficult year for the Foundation.

The decrease in income resulting from the adverse CQC reports noted above, together with the additional costs associated with the remedial action plan, had a significantly negative impact on the financial performance of the Foundation from October 2022.

Consequently, the strong financial results achieved from April through to September 2022, were offset by deteriorating financial outcomes in the second six months of the year.

The financial challenges faced by the Foundation from October 2022 onwards were heightened by a need for increased capital investment to ensure compliance with new health and safety regulations.

Total income before gains on the remeasurements of pension liabilities and the disposal of assets was £11,834,653 which was just slightly less than income for the preceding year of £11,963,794 which had been boosted by several Covid 19 related grants.

Nonetheless, despite the unprecedented financial challenges, the Foundation recorded a surplus with a net movement in funds of £695,712 (£838,547 in 2021/22).

This overall surplus for 2022/23 was, however, bolstered by several exceptional factors not directly related to income from the core services. These factors include:

Without the additional income generated by these exceptional items the Foundation would have recorded a loss.

At 31 March 2023, unrestricted funds were £1,528,762 which is a slight decrease on the £1,603,151 held at the end of 2021/22. It is anticipated that unrestricted reserves will come under increased pressure in the first six to nine months of 2023/24 before the positive impact of the Foundation’s recovery plan stabilises the financial picture .

In 2022/23 there was also an increase in designated funds to £4,955,501 from £4,167,938 (see note 22) whilst there was a marginal decrease in restricted funds from £180,305 to £162,843 (see note 23).

The improvement in cash flow reported for the previous two years was reversed and ‘cash at bank and cash in hand’ decreased from £1,973,622 on 31 March 2022 to £1,808,442 on 31 March 2023. However, there was a further reduction in the level of creditors falling due within one year (see note 18).

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

REPORT OF COUNCIL OF MANAGEMENT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Performance of investments held

Income from investments during 2022/23 was £1,726 compared to returns of £835 in the previous year.

Fundraising activities

Strode Park Foundation employs a small Fundraising, Marketing and Public Relations team. During 2022/23 £56,716 was spent on staff salaries (2021/22 £50,779) whilst a total of £197,252 (2021/22: £440,671) was received in donations, charitable grants, legacies or pledges.

£125,000 of these receipts were legacies and the rest were donations and grants. This is a significant drop from the previous year which included any Covid related grants. The team deserve congratulations for raising these additional funds during the ‘cost of living’ crisis and for their successful efforts to build the public profile of Strode Park.

Fixed assets

The movement in fixed assets during the year are set out in note 15 to the financial statements.

Investment policy

The Foundation's investment policy requires the Foundation to hold sufficient funds to meet all short-term liabilities. The policy is reviewed annually. The governing document imposes no restrictions on investment powers.

Reserves policy

In accordance with the Charity Commission guidance, the Council of Management review on a regular basis the level of unrestricted reserves that it considers appropriate. The Council of Management consider it appropriate to hold unrestricted reserves equivalent to at least one month's staff wages (plus on-costs) which for 2022/23 was in the region of £756,000 (2022: £756,000). This target had been achieved throughout the year under review.

The changes in staffing levels and increased salaries referred to above mean that the reserves target will increase to the more challenging figure of approximately £850,000 for 2023/24.

Designated funds at 31 March 2023 amounted to £4,955,501 (2022: £4,167,938). Further details are in note 22.

Restricted funds at 31 March 2023 amount to £162,843 (2022: £180,305). Further details are in note 23.

Plans for the future

Strode Park Foundation’s plans focus on three core areas; service improvement; improved financial outcomes; and strengthened staff resources.

Service improvements

The Foundation will continue to seek Good or Outstanding ratings from CQC for all regulated services and will endeavour to maintain the top 5 star environmental health award for all inspected services.

To assist with this ambition, Strode Park Foundation has commissioned Platinum Care to provide regular, independent quality assessments for each service. Every visit from Platinum Care will result in an action and improvement plan even when it is identified that the service meets or exceeds statutory requirements.

In addition, Ashton’s pharmacy has been commissioned to undertake an audit of the medication administration system in place at Strode Park House and to make recommendations about how this could be strengthened.

Investment to upgrade the buildings and equipment will continue including, but not limited to, the installation of a higher specification fire detection system at Strode Park House.

It is anticipated that the annex at Lady Dane Farmhouse will be occupied by new tenants during the forthcoming year and will provide a vital service for individuals who wish to experience a supported living setting.

The Foundation will also seek to broaden and deepen service user involvement in decision making processes, especially in relation to staff recruitment.

Improved financial performance

On the income side, high occupancy is vital to the financial performance of the Foundation and, following the challenges experienced in 2022/23, boosting occupancy will be a key objective particularly at Strode Park House. To facilitate this the new Registered Manager will strengthen links with key commissioners and referring Care Managers at Kent County Council and the Integrated Care Board.

The provision and marketing of specialist services will also be considered including the potential for a reinvigorated neuro-rehab service.

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

REPORT OF COUNCIL OF MANAGEMENT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Plans for the future

On the cost-side the management team will continue to analyse rotas to ensure that staff are deployed in the most cost-effective way to meet the needs of the clients. The use of new technology, particularly at night (motion sensors, epilepsy monitors, assisted communication devices), will be assessed with a view to ensuring that staffing levels provide an appropriate, but not intrusive, level of support for the residents.

Additional cost savings will also be explored including areas in which there has been overspend against budget in 2022/23. For example, one area under active consideration is the reversal of the outsourcing of some catering arrangements which were implemented in September 2022.

The Foundation will also continue to explore opportunities for the disposal of assets which could strengthen cash reserves. This may, for example, include the sale of the Freehold lease for Orchard Court.

Strengthening staff resources

The availability of strong, committed, and well-trained staff teams is the key to continuous improvement in the care services and the financial viability of the Foundation as a whole.

In March 2023, in the context of a national and local staffing crisis for social and health care, the Council of Management approved a large pay increase for all care staff with the result that the hourly rate for SPF care staff was higher than most local competitors. It is anticipated that this increase will have a positive impact on recruitment and retention which in turn will reduce reliance on agency staff.

The Foundation will also continue to seek ways of speeding up the recruitment process, whilst still undertaking the necessary regulatory checks on prospective staff members.

The Foundation remains committed to providing an impressive level of in-house and outsourced training for all staff members, including support for Carers who wish to undertake training as Nurse Associates.

Employment of people with disabilities

As a registered charity providing care and support for people with disabilities, it is the Foundation's policy to employ service users and other persons with disabilities wherever and whenever possible. Strode Park Foundation is accredited as a Disability Confident Employer.

Going concern

The Council of Management has reviewed the Strode Park Foundation’s financial position and consequently believes that there are sufficient resources to manage any reasonable financial and operational risks. The Council of Management have considered the level of funds held and the projected level of income and expenditure for 12 months from the date of approval of these financial statements. The Council of Management approved a budget for 2023/24 and have considered key challenges facing Strode Park Foundation and the wider care sector in which it operates. The adverse effect of the current sanction at Strode Park House on our liquidity has been considered when preparing the curren year's budget and our bankers continue to support us through an agreed overdraft facility to cushion us against any short term unecpected cash shortall. Contingency plans are in place which can offset any unexpected events. For these reasons, the Council of Management continues to adopt the going concern basis of accounting in preparation of the financial statements.

Principal risks and uncertainties

The Council of Management has a duty to identify and review the risks to which the Foundation is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Detailed considerations of risk are delegated to the Executive Committee, with advice from the Senior Management Team. Risks are identified, assessed and controls established throughout the year.

The present risks include:

  1. Potential loss of funding from significant purchasers

  2. Reputational damage resulting from non compliance with regulatory compliance

  3. Changes in legislation that have a detrimental financial impact (National Living Wage).

The key controls used by the Foundation to mitigate these identified risks include:

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

REPORT OF COUNCIL OF MANAGEMENT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Principal risks and uncertainties (continued)

Whilst recognising that any risk identification and mitigation systems, including those noted above, can only provide reasonable but not absolute assurance, the Council of Management is satisfied that the risk management processes established for the Foundation identify and where possible adequately mitigated major risks.

Together with the senior management team, the Council will continue to review current arrangements with the objective of developing a more comprehensive and resilient risk register that supports greater depth of risk assessment and provides more detail of associated contingency plans.

Pay policy for key management personnel

The Council of Management consider the senior management team to be the key management personnel of the charity in charge of directing and controlling, running and operating the Foundation on a day to day basis. The pay of the senior staff is reviewed annually and is set in accordance with market rates.

However, all Council members give of their time freely and no Council member received remuneration in the year.

Structure, governance and management

Strode Park Foundation for People with Disabilities was incorporated as a company limited by guarantee and not having a share capital under the Companies Act 1948 on 4 April 1946. Strode Park Foundation for People with Disabilities is a registered charity, number 227794 with effect from 9 January 1963 and is established under its Memorandum and Articles of Association dated 21 March 1946 as amended by special resolution on 20 May 2004.

The Foundation's governing body is the Council of Management. The responsibilities of the Council members are considerable and they have a legal obligation to ensure that the Company and Charity are administered correctly within the law, as well as providing quality services to the many people with disabilities it seeks to help.

The Council of Management is assisted by an Executive Committee, whose members are the Chairman, Vice Chairman, and Treasurer of the Foundation plus two elected members from the Council. The Executive Committee meets more frequently than the Council of Management and takes a more active role in the management for the Foundation.

Structure, governance and management (continued)

The members of the Council of Management who served during the period were as follows :

Mr N Wells (Chairman) Mr S Gadhia (resigned 4 June 2023) Mrs P Unwin (Vice Chairman) Dr P Garrod Mrs D Allaway (Treasurer) Mr A Hyner (appointed 30 November 2022) Mr R Clark Mr C Spooner (resigned 17 January 2023) Mrs J Clifford (resigned 30 November 2022) Ms S Toms (appointed 30 November 2022)

Appointment and recruitment of Council Members

The Council seeks to appoint new Members to the Council of Management (subject to the prescribed maximum number of members) who can bring a combination of relevant knowledge and skills and who have an interest in, and commitment to, the Mission of the Foundation. The Council, in consultation with the Chief Executive, brings forwards names of suitable and qualified people who can fill any existing vacancies on the Council for consideration by the Council.

Council of Management Responsibilities

Company law and the law applicable to charities in England and Wales requires the Council of Management to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing those financial statements the Council of Management is required to:

The Council of Management are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the Council of Management have confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

By Order of the Council of Management Date: 6 December 2023

Mr N Wells, Chairman

INDEPENDENT AUDITORS' REPORT TO THE COUNCIL OF MANAGEMENT OF STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

Opinion

We have audited the financial statements of Strode Park Foundation for People with Disabilities for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Charitable Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis of 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 charitable company 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 Council of Management’s 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 charitable company'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 Council of Management with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Council of Management Annual Report, other than the financial statements and our auditor’s report thereon. The Council of Management are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

INDEPENDENT AUDITORS' REPORT TO THE COUNCIL OF MANAGEMENT OF STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you, in our opinion:

Responsibilities of Council of Management

As explained more fully in the Council of Managements’ responsibilities statement set out on page 7, the Council of Management (who are also the directors of the charitable company for the purposes of company law) 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 Council of Management 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 Council of Management are responsible for assessing the charitable company’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 Council of Management either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

INDEPENDENT AUDITORS' REPORT TO THE COUNCIL OF MANAGEMENT OF STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

Extent to which the audit was considered capable of detecting irregularities, including fraud In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

INDEPENDENT AUDITORS' REPORT TO THE COUNCIL OF MANAGEMENT OF STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Michelle Wilkes FCA (Senior Statutory Auditor) for and on behalf of Azets Audit Services Statutory Auditor Date: 13 December 2023

Ashford Commercial Quarter 1 Dover Place Ashford Kent TN23 1FB

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

Note
Income from:
Donations and legacies
Donations and legacies
2
Grants receivable
3
Charitable activities
Care services
10
Other trading income
4
Investment income
5
Other
6
Total income
Expenditure on:
Raising funds
Costs of raising funds
8
Charitable activities
Care services
10
Total expenditure
7
Transfers between funds
23
Other recognised gains / (losses):
20
Gain on disposal of current asset investments
17
Reconciliation of funds:
Fund balances at 31 March 2023
Fund balances at 1 April 2022
Net (expenditure) / income after transfers
Net (expenditure)/income before transfers
Remeasurement gain/(loss) on defined benefit
pension scheme
Net movement in funds		 Unrestricted
Restricted
2023
Funds
Funds
Total
£
£
£
143,667
44,809
188,476
2,000
6,776
8,776
11,361,459
-
11,361,459
237,357
-
237,357
1,726
-
1,726
36,859
-
36,859
11,783,068
51,585
11,834,653
290,478
-
290,478
11,767,956
59,454
11,827,410
12,058,434
59,454
12,117,888
(275,366)
(7,869)
(283,235)
9,593
(9,593)
-
(265,773)
(17,462)
(283,235)
702,558
-
702,558
276,389
-
276,389
713,174
(17,462)
695,712
5,771,089
180,305
5,951,394
6,484,263
162,843
6,647,106		 2022
Total
£
121,628
319,043
11,242,584
200,132
602
79,805
11,963,794
346,186
10,949,089
11,295,275
668,519
-
668,519
170,028
-
838,547
5,112,847
5,951,394

All transactions are derived from continuing activities.

All recognised gains and losses are included in the Statement of Financial Activities.

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

Comparative year information
Note
Year ended 31 March 2022
Income from:
Donations and legacies
Donations and legacies
2
Grants receivable
3
Charitable activities
Care services
10
Other trading income
4
Investment income
5
Other
6
Total income
Expenditure on:
Raising funds
Costs of raising funds
8
Charitable activities
Care services
Total expenditure
7
Transfers between funds
23
Other recognised gains / (losses):
Reconciliation of funds:
Fund balances at 31 March 2022
All transactions are derived from continuing activities.
Net movement in funds
Fund balances at 1 April 2021
Net income before gains/(losses) on investments
Net income after transfers
Remeasurement gain/(loss) on defined benefit pension
scheme		 Unrestricted
Restricted
2022
Funds
Funds
Total
£
£
£
99,948
21,680
121,628
17,660
301,383
319,043
11,242,584
-
11,242,584
200,132
-
200,132
602
-
602
79,805
-
79,805
11,640,731
323,063
11,963,794
346,186
-
346,186
10,638,955
310,134
10,949,089
10,985,141
310,134
11,295,275
655,590
12,929
668,519
27,383
(27,383)
-
682,973
(14,454)
668,519
170,028
-
170,028
853,001
(14,454)
838,547
4,918,088
194,759
5,112,847
5,771,089
180,305
5,951,394

All recognised gains and losses are included in the Statement of Financial Activities.

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

BALANCE SHEET AS AT 31 MARCH 2023

Note
Fixed assets
Tangible assets
15
Current assets
Stocks
Debtors
16
Current asset investments
17
Cash at bank and in hand
18
Net current assets
Total assets less current liabilities
19
Defined benefit pension liability
20
Net funds
Funds
22
Restricted funds
23
24
Designated funds
Unrestricted funds
Creditors: amounts falling due after
more than one year
Creditors:
amounts
falling
due
within one year		 £
£
5,603,037
23,911
976,648
-
1,808,442
2,809,001
(945,782)
1,863,219
7,466,256
(809,377)
6,656,879
(9,773)
6,647,106
1,528,762
4,955,501
162,843
6,647,106
2023		 £
£
5,511,668
21,676
1,045,653
173,611
1,973,622
3,214,562
(1,127,465)
2,087,097
7,598,765
(935,040)
6,663,725
(712,331)
5,951,394
1,603,151
4,167,938
180,305
5,951,394
2022

The financial statements were approved and authorised for issue by the Council of Management on 6 December 2023 and signed on its behalf by:

Mr N Wells

Chairman

Company Number: 00407697

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
Note 2023 2022
£ £ £ £
Cash flow from operating activities 27 (33,413) 1,604,540
Cash flow from investing activities
Payments to acquire tangible fixed assets (416,239) (215,009)
-
Proceeds on disposal of fixed assets 1,230
Investment Income 1,726 602
-
Proceeds on disposal of current assets 450,000
Financing costs (39,137) (23,626)
Net cash flow from investing activities (2,420) (238,033)
Cash flow from financing activities
Repayment of finance leases (5,712) (8,568)
Repayment of loans (123,636) (105,462)
Net cash flow from financing activities (129,348) (114,030)
Net (decrease)/increase in cash and cash equivalents (165,180) 1,252,477
Cash and cash equivalents at 1 April 2022 1,973,622 721,145
Cash and cash equivalents at 31 March 2023 29 1,808,442 1,973,622
Cash and cash equivalents consists of:
Cash at bank and in hand 1,808,442 1,973,622
Cash and cash equivalents at 31 March 2023 1,808,442 1,973,622
----- End of picture text -----

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

1.1 Basis of accounting

Strode Park Foundation for People with Disabilities is a registered charitable company in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities is to provide a residential/nursing home or homes for the maintenance and treatment of person who have a physical disability; to provide housing or any associated amenities for such persons; to provide care, support and ancillary amenities to residents of such homes and also to people with disabilities who live in the community; and where appropriate, rehabilitation and training to enable them to achieve employment, independent living and improved quality of life. In addition to relieve and provide support for the carers of people with disabilities who are themselves in need of such care by reason of any stress which they suffer arising from their care giving.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.

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

1.2 Fund accounting

Unrestricted general funds are funds which can be used in accordance with the charitable objects at the discretion of the Council of Management.

Restricted funds are funds that can only be used for particular restricted purposes within the objects of the charitable company. Restriction arises when specified by the donor or when funds are raised for particular restricted purposes. Restricted donations for capital purchases are transferred to unrestricted funds when all conditions have been met.

Designated funds represent funds invested in fixed assets. The designated fund balance has been represented to ensure that the fund balance accurately reflects the designation policy adopted by the Council of Management.

1.3 Income recognition

All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies- continued

1.3 Income recognition

1.4 Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

1.5 Support costs allocation

Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

The analysis of these costs is included in note 9.

1.6 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Expenditure on items below £500 is not capitalised. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

----- Start of picture text -----
||| |---|---| |Freehold land|Not depreciated| |Freehold buildings|Over 50 years straight line| |Green Room|Over 50 years straight line| |Bungalows|Over 50 years straight line| |Building improvements|3-15 years straight line| |Assets under construction|Not depreciated until asset is in use| |Computers|33.33% straight line| |Motor vehicles|25% reducing balance| |Furniture and Fittings|25% straight line| |Sensory Room|20% straight line| |Grounds, drives and parks|15% straight line|

----- End of picture text -----

In accordance with Financial Reporting Standard 102, an annual impairment review is undertaken to ensure that any diminution in value of the properties below net book value is adjusted in the accounts.

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
||||||||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |1|Accounting policies- continued| |1.6|Tangible fixed assets and depreciation (continued)| |The|Council|of|Management is of|the|opinion|that|the|market value|of|the|land alone|is considerably in excess of the| |value|of|the|land|and|buildings|stated|together|in|the|Balance|Sheet|at|£4,939,597|(2022:|£5,039,844).|The|insured| |replacement|value|of|the|building|is|now|in|excess|of|£25,000,000|but|it|is|felt|that|the|expense|of|obtaining| |professional valuations of the property would not be justified.| |1.7|Current asset investments| |Investments represent charity assets which are on the open market for resale and are valued at the cost.| |1.8|Stocks| |Stocks|are|stated|at|the|lower|of|cost|and|estimated|selling|price|less|costs|to|complete|and|sell.|Cost|includes|all| |costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition.| |Cost|is|calculated|using|the|first-in,|first-out|formula.|Provision|is|made|for|damaged,|obsolete|and|slow-moving| |stock where appropriate. Stock does not include the value of goods donated for sale in the charity's shop.| |1.9|Debtors and creditors receivable / payable within one year| |Debtors|and|creditors|with|no|stated|interest|rate|and|receivable|or|payable|within|one|year|are|recorded|at| |transaction price. Any losses arising from impairment are recognised in expenditure.| |1.10|Loans and borrowings| |Loans and borrowings are initially recognised at the transaction price including transaction costs.|Subsequently, they| |are|measured|at|amortised|cost|using|the|effective|interest|rate|method,|less|impairment.|If|an|arrangement| |constitutes a finance transaction it is measured at present value.| |1.11|Deferred income| |The|company|granted|a|lease|of|certain|parts|of|its|land|to|the|WOHT|(now|Sanctuary|Housing|Association)|for|a| |period|of|65|years|from|12|May 1983|for|a|net|sum,|after|costs,|of|£34,688.|£534|is|credited|to|income|during|each| |year until 11 May 2048.| |1.12|Employee benefits|

----- End of picture text -----

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company operates two defined contribution schemes and no additional liability arises other than payments to the pension scheme, which are charged as expenditure in the year in which they are incurred.

The Foundation contributes to the Kent Pension Fund within the Local Government Pension Scheme (LGPS), a multiemployer defined benefit pension scheme, on behalf of certain employees whose employment was transferred from Medway Council as part of the Transfer Agreement under the Transfer of Undertakings (Protection of Employment) Regulations 2006.

The LGPS is a funded multi-employer scheme and the assets are held separately from those of the Academy Trust in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the statement of financial activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses.

Actuarial gains and losses are recognised immediately in other recognised gains and losses.

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies- continued

1.12 Leasing commitments

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the SoFA so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.13 Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

1.14 Judgements and key sources of estimation uncertainty

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Foundation makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

1.15 Judgements and key sources of estimation uncertainty

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property plant and equipment, and note 1.7 for the useful economic lives for each class of assets.

LGPS

The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 19, will impact on the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2019 has been used by the actuary in valuing the pensions liability at 31 March 2023. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.

The Pension Trust

The present value of The Pension Trust (Growth Plan) defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 19, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 30 September 2020 has been used by the actuary in valuing the pensions liability at 31 March 2023. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.

Bad debt provision

The value of trade debtors is sensitive to the recoverability in full of any invoices issued to each customer. Once the debt becomes overdue it is chased and periodically reviewed to ensure it is recoverable in full. If a provision is deemed necessary this is included on an annual basis.

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies- continued

1.16 Going concern

The Council of Management has reviewed the Strode Park Foundation’s financial position and consequently believes that there are sufficient resources to manage any reasonable financial and operational risks. The Council of Management have considered the level of funds held and the projected level of income and expenditure for 12 months from the date of approval of these financial statements. The Council of Management approved a budget for 2023/24 and have considered key challenges facing Strode Park Foundation and the wider care sector in which it operates. The adverse effect of the current sanction at Strode Park House on our liquidity has been considered when preparing the curren year's budget and our bankers continue to support us through an agreed overdraft facility to cushion us against any short term unecpected cash shortall. Contingency plans are in place which can offset any unexpected events. For these reasons, the Council of Management continues to adopt the going concern basis of accounting in preparation of the financial statements.

2
DONATIONS AND LEGACIES
Donations
Gift aid
Appeals
Legacies
3
GRANTS RECEIVABLE
Coronavirus related grants from statutory bodies:-
Kent County Council - Infection Control Fund
Medway City Council - Infection Control Fund
Medway City Council - winter pressures
Cyngor Gwynedd Council - Infection Control Fund
Other
Other grants from institutions:
Grants from institutions
HEEKSS
The Hospital Saturday Fund
Kent County Council
Kent Community Fund		 2023
2022
£
£
61,118
53,375
582
846
1,776
1,320
125,000
66,087
188,476
121,628
2023
2022
£
£
-
200,412
-
80,617
-
13,975
-
2,127
-
912
8,776
21,000
8,776
319,043
-
20,000
2,000
-
6,776
-
-
1,000
8,776
21,000

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

4
OTHER TRADING INCOME
Income from shops
Accommodation rentals
Events income
5
INVESTMENT INCOME
Other interest
6
OTHER INCOME
Client and other recharges
Other
7
EXPENDITURE
Costs of raising funds
Care service costs		 2023
2022
£
£
56,832
41,752
156,640
122,580
23,885
35,800
237,357
200,132
2023
2022
£
£
1,726
602
1,726
602
2023
2022
£
£
30,209
42,915
6,650
36,890
36,859
79,805
2023
2022
Staff
Costs
Direct
Costs
Support
Costs
Total
Total
£
£
£
£
£
56,716
109,597
124,165
290,478
346,186
5,948,872
2,978,836
2,899,702
11,827,410
10,949,089
6,005,588
3,088,433
3,023,867
12,117,888
11,295,275
8
COSTS OF RAISING FUNDS
2023
2022
£
£
Charity shops
29,137
31,107
Theatre in the Park
55,188
23,984
Fundraising
81,988
135,720
Allocated support costs
124,165
155,375
Included in direct costs and support costs are staff costs of £987,610 (2022: £845,321) which are allocated
above.
290,478
346,186

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

9 SUPPORT COSTS BREAKDOWN BY ACTIVITY

9
SUPPORT COSTS BREAKDOWN BY ACTIVITY
Care
service
Supported
living
Day
services
£
£
£
Management
205,923
40,346
25,315
Human resources
299,100
17,698
12,389
Finance and payroll
203,952
31,726
15,108
Information Technology
168,490
15,317
10,211
Facilities Management
1,261,123
7,546
79,712
Marketing and PR
18,037
1,640
820
General office
341,547
12,760
7,846		 Other trading
Fundraising Governance
Total
£
£
£
£
-
1,441
21,954
294,979
7,079
-
17,698
353,964
6,043
15,108
30,215
302,152
-
10,211
-
204,229
6,646
9,682
-
1,364,709
4,099
53,292
4,099
81,987
216
10,348
49,130
421,847
2,498,172
127,033
151,401		 24,083
100,082
123,096
3,023,867
10
SUMMARY ANALYSIS OF EXPENDITURE AND RELATED INCOME FOR CHARITABLE ACTIVITIES
Residential
care
Day
opportunites
Community
care
Total
£
£
£
£
Costs
10,860,391
270,364
645,281
11,776,036
Direct Income
(10,356,131)
(209,166)
(796,162)
(11,361,459)
This table shows the cost of the main charitable activities and the sources of income directly to support those activities.
Governance costs includes audit and accountancy fees, legal and professional fees together with an appropriate allocation of
overhead costs.
Net cost funded/(income contribution) from other
income		 504,260
61,198
(150,881)
414,577
11
NET INCOME
Net expenditure is stated after charging:
Depreciation of tangible fixed assets
Auditors' remuneration
- audit
- under / over provision
Loss on disposal of fixed assets
Rentals under operating leases		 2023
2022
£
£
319,278
303,727
16,090
15,240
(1,045)
(997)
4,466
-
24,425
23,512
12
EMPLOYEES
Wages and salary costs
Social Security costs
Pension contributions
Apprenticeship levy		 2023
2022
£
£
6,260,522
6,745,464
519,352
501,330
196,442
225,046
16,882
18,774
6,993,198
7,490,614
The average number of employees, by headcount, during the year
310
364
The average number of employees, by full time equivalent, during the year
251
294

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2023

12
EMPLOYEES (continued)
Staff were categorised as follows:
Carers
Nurses
Ancillary
Day care/Lifestyles
Admin
Therapy
Senior Management
Registered Home Managers		 2023
2022
162
194
15
11
48
44
40
8
29
23
3
2
7
6
6
6
310
294
The number of employees with remuneration in excess of £60,000 was as follows:
£60,001 - £70,000

£70,001 - £80,000

£80,001 - £90,000

£90,001 - £100,000
 1 -
- 1
1 -
- 1

The cost of the pension contributions in respect of employees earning in excess of £60,000 per annum amounted to £15,628 (2022 - £14,342).

The senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Foundation on a day to day basis. As detailed above, no Council member received remuneration during the period. The remuneration to the employees, including employers pension contributions and employer's national insurance contributions, total £438,084 (2022: £447,272).

13 COUNCIL OF MANAGEMENT REMUNERATION AND BENEFITS

There were no Council of Managements' remuneration, expenses or other benefits paid for the year ended 31 March 2023 (2022: £Nil).

14 INDEMNITY INSURANCE

During the year, the charitable company paid £2,675 (2022: £2,326) for the purchase of insurance to protect the charitable company from loss arising from the neglect or default to its Council of Management, employees and agents.

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

15
TANGIBLE ASSETS
Cost
As at 1 April 2022
Additions
Disposals		 Freehold land,
buildings, car
park and leisure
complex
Building
improvements
Furniture,
fittings and
computer
equipment
£
£
£
5,569,826
1,258,692
1,861,861
-
184,782
210,067
-
-
-



Cars, coach
and ambulance
Total
£
£
184,222
8,874,601
21,390
416,239
(51,200)
(51,200)
At 31 March 2023 5,569,826
1,443,474
2,071,928		 154,412
9,239,640
Depreciation
As at 1 April 2022
Charge for year
Eliminated on disposal		 529,982
1,087,888
1,595,159
100,247
70,898
138,815
-
-
-		 149,800
3,362,829
9,318
319,278
(45,504)
(45,504)
At 31 March 2023 630,229
1,158,786
1,733,974		 113,614
3,636,603
Net book values
At 31 March 2023		 4,939,597
284,688
337,954		 40,798
5,603,037
At 31 March 2022 5,039,844
170,804
266,702		 34,422
5,511,772
16
DEBTORS
Trade debtors
Other debtors
Prepayments and accrued		 income 2023
2022
£
£
133,507
127,116
313,327
434,620
529,814
483,917
976,648
1,045,653
Other debtors
Amounts falling due after more than one year and included in the debtors
above are:		 2023
2022
£
£
268,000
398,000
17
CURRENT ASSET INVESTMENTS
As at 1 April 2022
Disposals
Gain on disposal		 2023
2022
£
£
173,611
173,611
(450,000)
-
276,389
-
At 31 March 2023 -
173,611
18
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts
Trade creditors
Finance lease obligations
Other taxes and social security
Other creditors
Current asset investments represented the charity’s freehold land which was on
sold during the year.		 2023
2022
£
£
109,738
108,246
129,787
309,762
-
5,712
142,070
147,680
564,187
556,065
the market for sale which was
945,782
1,127,465

The bank overdraft is secured by a charge over certain freehold properties. See note 19.1 regarding the bank loans.

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

19
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Bank loans
Deferred income
19.1
Bank loans
Within one year
In two to five years
After more than five years		 2023
2022
£
£
796,025
921,154
13,352
13,886
809,377
935,040
2023
2022
£
£
109,738
108,245
289,292
373,716
506,733
547,438
905,763
1,029,399

The charity has three loans in existence, repayable as follows:

Business loan - £114,971 repayable by 1 September 2025 at an interest rate of 1.25%. The loan is secured by a charge over the freehold deeds to the Coach House and North Lodge, and a debenture given by the Foundation.

Business loan - £91,672 repayable by August 2031 at an interest rate of 1.25% above base. The loan is secured by a legal mortgage over the freehold deeds to Footprints.

Commercial mortgage - £699,133 repayable by November 2038 at an interest rate of 2.45% above base. The loan is secured by a legal mortgage and charge over the Lady Dane Farmhouse, Love Lane, Faversham.

20 PENSION AND OTHER POST-RETIREMENT BENEFIT COMMITMENTS

The Foundation's employees belong to two principal pension schemes,: TPT Retirement Solutions Growth Fund (formerly The Pensions Trust Growth Fund); and the Local Government Pension Scheme (LGPS) for nonteaching staff, which is managed by Kent County Council. Both are multi-employer defined benefit schemes.

The latest actuarial valuation of the Pensions Trust Growth Fund related to the period ended 30 September 2020 and of the LGPS 31 March 2019.

Pension contributions amounting to £30,340 (2022: £34,764) were unpaid at 31 March 2023.

Note
SCHEME:
The Pensions Trust – The Growth Plan
19.1
Kent County Council Pension Fund
19.2		 2023
2022
£
£
9,773
15,331
-
697,000
9,773
712,331

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

20 PENSION AND OTHER POST-RETIREMENT BENEFIT COMMITMENTS

20.1 SCHEME: The Pensions Trust – The Growth Plan

Strode Park Foundation participates in the scheme, a multi-employer scheme which provides benefits to some 638 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

From 1 April 2019 to 30 September 2025: £11,243,000 per annum (payable monthly and increasing by 3% each on 1 April.)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2023

20 PENSION COMMITMENTS - CONTINUED

----- Start of picture text -----
||||| |---|---|---|---| |SCHEME: TPT Retirement Solutions (formerly The Pensions Trust – The Growth Plan)| |PRESENT VALUES OF PROVISION|2023|2022|2021| |£|£|£| |Present value of provision|9,773|15,331|73,359| |RECONCILIATION OF OPENING AND CLOSING PROVISIONS|2023|2022| |£|£| |Provision at start of period|15,331|73,359| |Unwinding of the discount factor (interest expense)|288|423| |Deficit contribution paid|(5,585)|(18,564)| |Remeasurements - impact of any change in assumptions|(261)|(352)| |Remeasurements - amendments to the contribution schedule|-|(39,535)| |Provision at end of period|9,773|15,331| |INCOME AND EXPENDITURE IMPACT|2023|2022| |£|£| |Interest expense|288|423| |Remeasurements – impact of any change in assumptions|(261)|(352)| |Remeasurements – amendments to the contribution schedule|-|(39,535)| |Costs recognised in income and expenditure account|27|(39,464)| |ASSUMPTIONS|2023|2022|2021| |% per annum|% per annum|% per annum| |Rate of discount|5.52|2.35|0.66|

----- End of picture text -----

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

----- Start of picture text -----
||||| |---|---|---|---| |DEFICITS CONTRIBUTION SCHEDULE|2023|2022|2021| |£|£|£| |Year 1|5,585|5,835|18,564| |Year 2|4,654|5,585|19,121| |Year 3|-|4,654|19,695| |Year 4|-|-|16,905| |Year 5|-|-|-|

----- End of picture text -----

The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.

It is these contributions that have been used to derive the company's balance sheet liability.

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

20 PENSION AND OTHER POST-RETIREMENT BENEFIT COMMITMENTS

(Continued)

20.2 Kent County Council Pension Fund

The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee-administered funds. The total contribution made for the year ended 31 March 2023 was £45,357 (2022: £56,793), of which employer’s contributions totalled £36,215 (2022: £45,475) and employees’ contributions totalled £9,142 (2022: £11,318). The minimum contribution rates for future years are 24.5 per cent for employers and between 5.5 per cent and 7.5 per cent for employees.

Principal actuarial assumptions
Rate of increase in salaries
Rate of increase in pension payment
Discount rate
Inflation assumption - CPI		 2023
2022
%
%
3.90
4.20
2.90
3.20
4.80
2.60
2.90
3.20

The current mortality assumptions include sufficient allowance for future improvements in mortality rates. This has been updated to use the latest version of the Continuouse Mortality Investigaton's model, CMI_2020 which was released in March 2021. The assumed life expectations on retirement age 65 are:

Retiring today
Males
Females
Retiring in 20 years
Males
Females
The Foundation's share of the assets in the scheme were:
Equities
Bonds
Property
Gilts
Other assets
Target return portfolio
Infrastructure
Total market value of assets		 2023
2022
21.1
21.6
23.5
23.7
22.3
23.0
25.0
25.1
2023
2022
£
£
2,182,000
2,222,000
449,000
476,000
341,000
405,000
19,000
21,000
61,000
71,000
250,000
255,000
116,000
-
3,418,000
3,450,000

For accounting years beginning on or after 1 January 2015, the expected return and the interest cost has been replaced with a single net interest cost, which will effectively set the expected return equal to the discount rate.

Amount recognised in the Statement of Financial Activities
Current service cost
Net interest cost
Administration expenses
Total operating charge		 2023
2022
£
£
64,000
91,000
17,000
16,000
2,000
2,000
83,000
109,000

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

20
PENSION AND OTHER POST-RETIREMENT BENEFIT COMMITMENTS
Changes in the present value of defined benefit obligations were as follows:
At 1 April 2022/2021
Current service cost
Interest cost
Change in financial assumptions
Change in demographic assumptions
Experience loss/(gain) on defined benefit obligation
Estimated benefits paid
Contributions by Scheme participants		 (Continued)
2023
2022
£
£
4,147,000
4,261,000
64,000
91,000
106,000
84,000
(1,499,000)
(180,000)
(63,000)
-
250,000
9,000
(130,000)
(130,000)
9,000
12,000
At 31 March 2023/2022 2,884,000
4,147,000
Changes in the fair value of academy’s share of scheme assets:
At 1 April 2022/2021
Interest on assets
Return on assets less interest
Other actuarial gains/(losses)
Administration expenses
Employer contributions
Contributions by Scheme participants
Estimated benefits paid
Asset not recognised		 2023
2022
£
£
3,450,000
3,452,000
89,000
68,000
(45,000)
3,000
10,000
-
(2,000)
(2,000)
37,000
47,000
9,000
12,000
(130,000)
(130,000)
(534,000)
-
At 31 March 2023/2022 2,884,000
3,450,000

21 COMPANY STATUS

The company is limited by guarantee and has no share capital. The liability of the members in the event of winding-up is limited to £1 per member.

22
DESIGNATED FUNDS
Designated funds
Pension bond (see note 16)
Performance bond (see note 16)
Fixed asset reserve
Defined benefit pension funds
COMPARATIVE YEAR
Designated funds
Pension bond (see note 16)
Performance bond (see note 16)
Fixed asset reserve
Defined benefit pension funds		 At 1 April
2022
New
designations
Designations
released
At 31 March
2023
£
£
£
£
374,000
-
(130,000)
244,000
24,000
-
-
24,000
4,482,269
215,005
-
4,697,274
(712,331)
-
702,558
(9,773)
4,167,938
215,005
572,558
4,955,501
At 1 April
2021
New
designations
Designations
released
At 31 March
2022
£
£
£
£
374,000
-
-
374,000
24,000
-
-
24,000
4,465,629
-
16,640
4,482,269
(882,359)
170,028
-
(712,331)
3,981,270
170,028
16,640
4,167,938

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

22 DESIGNATED FUNDS - CONTINUED Pension bond

This fund represents a separate bank account set aside to offset the liability of the LGPS. This is included in debtors (see note 16).

Performance bond

This fund represents funds set aside for the duration of the Platters Farm Lodge contract. This is held by Medway Council. This is included in debtors (see note 18).

Fixed asset reserve

This fund represents the depreciated value of the tangible fixed asset assets of the Foundation less the bank loans and finance lease obligations. These funds are represented by capital assets used within the organisation, but do not represent working capital for day-to-day operations.

Defined benefit pension funds

The designated fund for pension reserve is that part of unrestricted funds that represents the pension scheme liabilities.

23
RESTRICTED RESERVES
Coach House Mews
Footprints and Redwalls
Lady Dane Farmhouse Residents chairs
Strode Park House/Coach House
COVID-19 grants
Nursing grants
Other funds
COMPARATIVE YEAR
Coach House Mews
Footprints and Redwalls
Lady Dane Farmhouse Residents chairs
Strode Park House/Coach House
COVID-19 grants
Nursing grants
Other funds		 At 1 April
2022
Income
Expenditure
Transfers
At 31 March
2023
£
£
£
£
£
84,863
-
-
(1,667)
83,196
48,898
514
(14,724)
(5,400)
29,288
1,575
-
(1,575)
-
-
8,000
-
(8,000)
-
-
-
6,776
-
-
6,776
8,333
-
(8,333)
-
-
28,636
44,295
(26,822)
(2,526)
43,583
180,305
51,585
(59,454)
(9,593)
162,843
At 1 April
2021
Income
Expenditure
Transfers
At 31 March
2022
£
£
£
£
£
86,530
-
-
(1,667)
84,863
45,024
4,716
(842)
-
48,898
1,575
-
-
-
1,575
8,000
-
-
-
8,000
-
281,383
(281,383)
-
-
10,000
20,000
(21,667)
-
8,333
43,630
16,964
(6,242)
(25,716)
28,636
194,759
323,063
(310,134)
(27,383)
180,305

Coach House mews

This funds represents the grant of a lifetime lease of the Coach House Mews from 1 March 2013. The fund is being released over 60 years.

Footprints and Redwalls

This fund represents monies received in respect of the two registered homes, Footprints and Redwalls, which is to be used for the benefit of the children and young adults using these facilities.

Lady Dane Farmhouse Residents chairs

A fund created to purchase specialised comfortable chairs for the residents.

Strode Park House/Coach House

This fund represents funds received from a former employee to be spent on Strode Park House or Coach House.

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

23 RESTRICTED RESERVES National Lottery Community Fund

This fund represents funding from the Coronavirus Community Support Fund, distributed by The National Lottery Community Fund. It will help us to make sure our Day Opportunities service can continue in the future, with the money going towards the financial challenges we have faced and struggled with during the pandemic.

COVID-19

This fund represents various grants received to assist with the COVID-19 pandemic and infection control.

Nursing grants

This fund represents grants received to assist in the training of nurse aprentices.

Other funds

This fund represents various small grants/donations which have a specified purpose, and which have not been expended at the end of the financial year.

Transfers between funds

Transfers between funds represent the purchase of capital purchases from restricted income where the restriction is removed upon acquisition.

24 ANALYSIS OF NET ASSETS

Fixed assets
Current assets
Current liabilities
Long term liabilities
Defined benefit pensions
COMPARATIVE YEAR
Fixed assets
Current assets
Current liabilities
Long term liabilities
Defined benefit pensions		 Unrestricted
funds
Designated
funds
Restricted
funds
Total
funds
£
£
£
£
-
5,603,037
-
5,603,037
2,378,158
268,000
162,843
2,809,001
(836,044)
(109,738)
-
(945,782)
(13,352)
(796,025)
-
(809,377)
-
(9,773)
-
(9,773)
1,528,762
4,955,501
162,843
6,647,106
Unrestricted
funds
Designated
funds
Restricted
funds
Total
funds
£
£
£
£
-
5,511,668
-
5,511,668
2,636,257
398,000
180,305
3,214,562
(1,019,220)
(108,245)
-
(1,127,465)
(13,886)
(921,154)
-
(935,040)
-
(712,331)
-
(712,331)
1,603,151
4,167,938
180,305
5,951,394

25 OPERATING LEASE COMMITMENTS

Total future minimum lease payments under non-cancellable operating leases are as follows:

Within one year
Between two and five years		 2023
2022
£
£
56,959
21,807
117,017
24,495
173,976
46,302
Other operating leases

STRODE PARK FOUNDATION FOR PEOPLE WITH DISABILITIES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

26 RELATED PARTY TRANSACTIONS

P Unwin, a member of the Council of Management is also a director of the Rotary Club of Herne Bay. During the year, Strode Park Foundation for People with Disabilities, received £Nil (2022: £250) from the Rotary Club of Herne Bay in donations.

Mr R Clark, a member of the Council of Management is also a director of Clark Design Ltd. During the year, Strode Park Foundation for People with Disabilities, paid Clark Design Ltd £11,221 (2022: £Nil) in respect of work undertaken during the year.

27
Net (expenditure)/income for the year
Investment income
Financing costs
Depreciation of tangible fixed assets
Loss on disposal of fixed assets
Decrease in debtors
Decrease in creditors
Decrease in long term creditors
(Increase)/Decrease in stocks
RECONCILIATION OF NET INCOME TO NET CASH INFLOW FROM
OPERATING ACTIVITIES		 27
Net (expenditure)/income for the year
Investment income
Financing costs
Depreciation of tangible fixed assets
Loss on disposal of fixed assets
Decrease in debtors
Decrease in creditors
Decrease in long term creditors
(Increase)/Decrease in stocks
RECONCILIATION OF NET INCOME TO NET CASH INFLOW FROM
OPERATING ACTIVITIES		 2022
2022
£
£
(283,235)
668,519
(1,726)
(602)
39,137
23,626
319,278
303,727
4,466
-
69,005
667,950
(177,569)
(63,087)
(534)
(534)
(2,235)
4,941
Net cash inflow from operating activities (33,413)
1,604,540
28
(Decrease)/Increase in cash
Repayment of other loan
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS		 2023
2022
£
£
(165,180)
1,252,477
123,636
105,462
Movement in net debt
Net debt at 1 April 2022		 (41,544)
1,357,939
944,223
(413,716)
Net debt at 31 March 2023 902,679
944,223
29
ANALYSIS OF NET DEBT
Cash at bank and in hand		 At 1 April 2022
Cash flow
£
£
1,973,622
(165,180)		 Non-cash
changes
At 31 March
2023
£
£
-
1,808,442
1,973,622
(165,180)		 -
1,808,442
Debt due within one year
Debt due after one year		 (106,448)
123,636
(922,951)
-		 (126,926)
(109,738)
126,926
(796,025)
(1,029,399)
123,636		 -
(905,763)
944,223
(41,544)		 -
902,679

30 CAPITAL COMMITMENTS

The charity has had capital commitments at the year end as follows: 2023 2022 £ £ - LDF garden 19,720