Registered Charity Number. 243968 REPORT OF THE TRUSTEES AND INDEPENDENTLY REVIEWED FINANCIAL STATEl￿ENTs FOR THE YEAR ENDED 31 MARCH 2024 FOR PENCARE PO BOX 2526 CARI)IFF CF23 OGU Pencare Index Page CIL4RITY INFORMATION Registered nuTnber of charity Name & address of charity Twstees Ind¢pendent Examiners Bankers Investment bankers STRUCTURE, GOVERNANCE & MAJIAGEMENT Nature of charity & gov¢rning d(￿UMellt Recruitment & training of TnJste¢s Risk Asgessment FINANCIAL REVIEW Compliance- Responsibilities of Trustees Investment Policy Investment Review Reserves Policy General res¢rves FundraisiThg Legacies Public Benefit PIANS FOR 2024n025 Aims Budget for 202412025 APPROVAL OF REPORT io INDEPENDEf4T EXANttNERS REPORT FINANCIAL STATEMENTS Statement of Financial Activities Balance Sh¢¢t Notes to the Financial Statements In¢om¢ and Expenditure account 11-22 Page I Chari Information Registered charity number: 243968 Cbarity name & address: PenCar¢ PO Box 2526 Cardiff CF23 OGU Trustees Imanagement Committee): Mrs J Cotsen JP frs L Cawston Mr L Kahn Mrs R Levene Mr J Minkes Mr P Stewart Mrs J Whitten Dr R Whitten (Chair) Life Governors Prof P D J WeitThan Mr C N Harris depe￿dent Examiners: Hodge Bakshi Chartered Accountants Churchgate House. 3 Church Road, Whit¢hurch, Cardiff CF4 2DX Bankers.. Lloyds Bank pl¢ l Queen Street, Cardiff CFIO 2AF Investment Illanagers: CCLA Investment Management Ltd Senator House 85 Queen Victoria Street London EC4V 4ET EdenTree Investment Managers Limitsd Benefact Ilouse, 2000, Ptoneer Avenue. Gloucester Business Park Brockworth, Gloucester GL3 4AW Admi￿]$trator. Mr P Evans Page 2 Pencare STRUCTURE, GOVERNANCE & WAGEmE￿I Nature of charity & governing do¢umenL The charity was originally set Up in 1946 and from 1988 was known as Penylan House Jewish Retirement & Nursing Home. Following the sale of the home in 2013 to Linc-cymru Housing Associalion Ltd, the name of the charity was changed to PenCar¢. It is an independent organisation constituÈed as a charity under a Trust deed. After taking legal advice and following prior consultstion with the Charity Commission, a resolution regarding a Chan￿ to the objects was approved at the Annual General Meeting held in December 2023, as follows". Objects The objects of the charity are for the public benefit and specifi¢ally restricted to.. The relief of those in need, by reason of youth, ￿e, ill-health, disability or financial hardship. such beneficiaries being: (a) aged persons of the Jewish faith livins in the local Jewish community, (b) other persons of the Jewish faith living in the local Jewish Community; (c) other persons with a significant connection to the local Jewtsh Community" (d) other persons in tied. and The advancement of the Jewish faith for the public benefit including by the making of grants to S)￿agOgueS iti the local Jewish communily. Following the removal of the geo￿aphIcal locations previously spelified in the Objects, the Charity Commission website reports Pencare's area of operation as being throughout Wales. Followin¥ the sale of the care home to Linc-cynru Housinu Association Limited in April 2013, the maln focus of the charity changed from the operation of a care home to the commissioning and funding of care for the Jewish community within a new pu)Tos&built nursing and residential care home op¢rat¢d by Linc. the und¢n¥riting of Costs of op¢rating kosher fa¢ilities within the new home. and the provision of care within the Jewish Community. However. as indicated in th¢ Annual R¢view (below) the nature and focus of the ¢harity's activities has changed over recent years with a reduced demand in the cortimunity for nursing or residential care in Penylan House and a much ancreas¢d Involv￿￿ent with. aud support of, the wider J¢wish community in Wales. In adopting such an approach the Trustees consider that public benefit is being met in that potential residents or beneficiaries are not excluded from the opporthnity to benefit from the activities of the charity. The Trustees consider that they have complied with the duty stated in Section 4 of the 2006 Chariti¢s Act to hav¢ du¢ regard to guidan¢¢ published by the Charity Commission (i.¢. publi¢ benefit statement). Page 3 Trustees Governance of the charity is through alt elected Management CommÈttee ("The Tn￿tees') of up to eitsht persons. All trnstees give their time on a voluntary basis and receive no payment or other benefit. Where necessary, specific sub-committees are appointed. e.g. to review investment policy. with all decisions beinu refe￿ed to the main Management Committee for approval. Applicants for trusteeship are appointed by ¢{￿tion at the charity's Annual General Meeting and are drawn from the local Jewish community. Most trust¢es are already familiar with the work of the charity. frequently through having had family member5 or friends who had r¢¢eived nursing or residential care, or through the close networking that exists within the community. Trustees are Includ￿ in the Home's training programme. which covers areas such as: Obligations of Trustees Stru¢ture, governance and operation of the charity Financial management Planning for the future Day to day administration and financial m8nagement is undertaken by an administrator, acting on a part time paid basis. The Manatrement Committee meets at least every three months. Minutes of all meetings are i&sued to trustees, together with supporting documentation and financial reports. Risk Assessment The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining the charity's free reserves at all appropriate level. combined with an annual review of financial systems controls. will provide suificient resources in the event of adverse conditions. Trustees also examine other op¢rational and business riskq which the charity faces and eotifirni that they have estsblished systems to mitigate the significant risks. The truste¢s believe the charity has sufficient reserves to allow it to meets Èts slated objectives. Nature of charity & governing doeument. Trustees have id¢ntified the types of Tisks the charity faces, prioritising them in ternis of potential impact and likelihood of occurrence. and hav¢ identified means of mitigating the risks. As part of this PTocess trustees have reviewed the adequacy of th¢ ¢harity's current intcrnal controls. The trustees are plea8¢d to report that the charity's financial wntrols conforni to guidelines issued by th¢ Charity Commission. Page 4 Pencare Since the takeover of Penylan House by Linc-cinnru in 2012, members of Pencare have been c105ely involved in the activiti¢s of the home. However. as a result of th¢ restriciions imposed due to the CoronaviTUS (COVID-19) pandemic in 2020, involvement and interaction came to a sudden halt. Sin¢¢ the￿ while interaction has increased somewhaL PenCar¢ trustees reco.unise that involvem¢nt in the home will not return to pre-pand¢mic levels. Jewish cultural items within Penylan House include an arL lectern and ner tamid all situated in a dedicated area in tELe main lounge. Where&8 in previous pre-pandemic years religious s￿leeS in th¢ Home were well sup￿rted by both r¢sid¢nls and visitors, unfortwiately it was not possibl¢ to reinstate service5 after th¢ pandemic. Following the takeover by Linc. the ¢harity continued to support the provision of Jewish dietary requir¢ments within Penylan House thTough the funding of a dedicated kosher kitchen and dining area. Pencare also contributed to the cost of catering staff working within the kosher area and nded a catering supplement in r¢spect of the greater costs of kosher food items. By funding and providing for the r¢quir¢ments of the Jewish religion, the trustees consider that the charity met the requirements of the Charity Commission regarding public b¢n¢fi¢. However, in recent years with few Jewish residents in the home and a subsequent low demand, th¢ continued provision of kosher food become untenable. As a result Pencare agreed with Linc that fi￿dIng of kosher related facilities would ¢ease and that, apart from one dedicated storag¢ are4 Linc would be able to hav¢ th¢ pr¢viously kosher kitchen and adjacent areas for its own use. In November 2023 the charity was infornied by Linc that it was withdrawing from the residential and nursing care sector and that all its homes would be sold off. In the case of Penylan Houqe an offer had been rec¢iv¢d from Halltnark Group of Companies, which also operated other homes i the area including Ty Enfys in Pentwyn, Regency House in Ely and Shire Hall in Cardiff Bay. Following meetings between Pencare trustees, Linc and HallmarL the s&1¢ of the home was agreed and th¢ sale was completed in June 2024. A factor to be considered in the sale had been the existence of a 25-year Nominations Agreement negotiated between Linc and PenCar¢ at the time of the sale of the home in 2013. Th¢ agreemenL originally intended to safeguard access to Penylan House by Jewish residents and which placed a restriction on Linc's freehold title, was agreed by Pencare trustees as being no longer appropriate and was rel¢&s¢d on completion of the sale to Hallmark Group. While it was appreciated by trustees that the ¢hange of ownership marked the end of an are4 and a further remove from the days when the charity actually operated the care home, lookiThg to the ture, the meetings between Pencare and Hallmark had been very positive and it was hoped that a Telationship similar to that with Linc could b¢ KtLaintained going forward. N¢v¢rth¢less, given the changes referred to abov¢ regarding the sale of the home and the cessation of kosher catering activities in th¢ hi)m¢. tTUStees agreed that there were unlikely to be opportunities to hold s¢rvices in Penylan House as in fonner, pre-covid days. As a Tesult it was decided that all Jewish artifacts would be r¢movcd and donated within the Jewish Community. A final service would be held at the home in July 2024. Page 5 Pencare FINANCIAL REVIEW Compliallee- Responsibilities of Trustees Company and charity law requires the Tn]stees to prepare finkncial statements for each financial year, which give a true and fair view of the state of affairs of th¢ charity and of th¢ su￿lUS or d¢ficit of the charity for that p¢riod. In pr¢paring those financial stat¢m¢nts. the Trustees have: Selected suitsble accounting policies and then applied them consistently- Made juduements and estimates that are reasonable and prudent. Stated whether applicable accounting standards have been followed, subject to any material departtires disclosed and explained in the financial statements. and Prepared the financial statements on a going concern basis. The Tn￿tee5 have overall responsibility for ensuring that the charity has appropriate systems of controls, financial and gtherwise. They are also responsible for keepin - proper accounting records, whteh disclose with reasonable accuracy at any time. the financial position of the charity and enable them to ensure that th¢ financial statements comply with the regulatory requiT¢ments. They are also responsible for safeguarding the 8ss¢ts of the charity and hence for taking r¢asonable steps for the prevention and detection of fraud and other irregularities and to provide reasonable assvranc¢ that: Its assets are safeguarded against unauthorised use or disposition- Proper records are maintaiued and financial information used within the Charity or for publi¢ation is reliable- The systems of internal control are designed to provide reasonable, but not absolute. assurance against material mis-statement or loss. They include.. The charity complies with rel¢vant laws and regulations. A strat¢gi¢ review and an annual budget &pproved by the Truste¢s. Regular consideration by the Trustees of financial r¢sult4 variance from budget& non- financial perforniance indicators and benchmarking reviews. Identification and manag¢m¢nt of risks. Investment Policy The aim of the charitgs investment policy is to produce income in OTd¢r to fund the costs of its operatiolls in accordance with its Objects stated above. Until 2013, all the charity's filndg were managed by CCLA Investment Managers Limited. However, after an investtnent r¢vi¢w in 2014, in order to mitigate financial risk the charity transferred part of its assets into the EdenTre¢ Amity Investment Fund op¢rated by Ecclesiasti¢al Investment Managers Limited. In November 2023, following the discontinuation of the Amity Inv¢stment Fund by EdenTree, th¢ balance of funds was transferred to the EdenTree Responsible and Sustainable Managed Rncome Fund. Page 6 Pencare FINANCIAL REVIEW (eont.) Investment Policy (eont.) Both companies are required to operate within parameters approved by the charity's Management Coznmittee (trustees). Investment perforniance reports are provided on a quarterly basis and valuations are received monthly. enablirtg the trustees to monitor and assess the effectiv¢ness of the charity's investment polA¢y. Investment Reiqew review of investments was held in Novemb¢r 2022. In the revi¢w, trustees examined the investment income received from CCLA and EdenTree for the period January 2018 to June 2022. After considering the returns re¢eived, and after taking into account the finaneiil unctrtatnty of the previous two years, it was unanimously agreed that the level of funds h¢ld by the two fund management companies should remain unchanged. In order to meet on-going charitable expenditure in the year 202412025. trustees agreed in May 2024 10 the drawdown of £50,000 from th¢ COIF Ch2riti¢s Global Equity Fund. Reserves Policy The Trnstees again reviewed the reserves of the charity during the year, which embraced th¢ nature of income and expenditure streams. th¢ ¢harity's fixed commitments and the natyr¢ of the res¢Tves. Desfignated Funds & Fixed TheTC are no provisions for designated fi￿d5 and f]xed asset reserves in the accounts. Gellernl Reserves As at 3 1st March 2024. the charity held £4,173,464 of unrestricted funds. The Statement of Fin8ncial Activities (SOFA) shows that th¢ totsl incom¢ of the ¢h&rity for the year was £127,227, principally through the return from investments. Total resources expended by the charity totalled £174,373 Fundraising Given the charity's curr¢nt financial r¢serv¢s th¢ Trustees have determined that no fvnd-raising activities should be taken in the fore$¢￿ble futur¢ and that all PencaTe expenditsre be met by income from investhients aTAd any shortfall should be m¢t out of capital. Legacies Though legacies have contributed substantially to th¢ charity's finan¢¢s over many y¢ars. inwm¢ from this source is excluded from the budget due to the unpredictable nature of such payments. Page 7 PenCar¢ FINANCIAL REVIEW {CO￿L) Publi¢ Benefrt During the year the charity provi(fed public benefit of £141,991 including.. £7,416 Provision in Penyl2n House of kosher food & catering facilities. £34.886 Fundtng for a number of pertnanent residents in Penylan House who wer¢ unabl¢ to pay charges for care, whether in part or in full, plus respite care fees. £8,634 Community kosher food delivery service to Cardiff and SwatLse& £2,500 Cardiff Jewish Helpline fundints support. £12.000 Home care support funding. £15,303 Health & medical assistance funding. £8,631 Reli¢f of poverty. £2,818 CUS - Funding of activities aTAd equipment. £3,600 Board of Deputies £1,650 Forget-Me-Not Chorus & Lost Chord funding. £23,221 Special educational needs funding. £6,434 CRS - Funding of a¢tivities and equipment. £14.898 Funding of community t&xi service. PLANS FOR 202412025 Aitns As in past years, the charity intends to continu¢ to provide fvnding to those who require nursing, residenti￿ or r¢spite care, whether in Penylan House or in other care homes. However, trustees have been aware for som¢ time of the scope for development and funding of other services and. as ststed above in the schedule of public benefiL the opportunity was again tsken during the year in review to support a rdnge of initi2tives, both at an individual and community level. The requirement for expanding area5 to be funded will continue to be explored further by trustees. Budget for 202412025 Budgeted income for the year is project¢d to be £123,252, excluding any drawdown from invested funds. Total expenditure, including public benefiL administration and other costs, is estimated to be £177,037. resulting in a projected deficit for the year of£53,785. Pencare APPROVAL OF REPORT This report was approved by the Trustees on-. 15thAu st 2024 Mrs J COTSEN (Chair & TrLtstee) Mr P STEWART crrustee) Page 9 HO SHI CHARTERED ACCOUNTAXITS & CHARTERED TA.X ADVISERS Inde￿￿dEnt exominer'5 r￿ort to ihÉ Trn￿ee5 ofPenC4re I reFQrt to the trust￿5 on my examination of the accounts of Pencare (Ihe Trust) for the year ended 31 March 2024. which are set out on page5 1 I to 21. RespoKsibilitie3 and basis ofreporl As th¢ charity knistees of the Trust you are responsible for the preparatÉon of the accounts in accordanee with the requirem¢nts of the Ch8Jities Act 2011('the Act,). I report in respect of my examination of the Trustee's accounts ¢arried out under s¢¢tioft 145 of the 2011 Act and in ￿]ng out my examination I haye followed all th¢ applicable Directions given by the Charity Conunission under ￿tion 145(5Xb) of the 2011 ACL Independent examiner 5 Stotepnent I have completed my e￿aminatiOn. l ¢onfiTm that no material matters have come to my attcntion in connertion with the examination giving me t￿se to believe that in any material respeth: (l) accounting records wer¢ not kept in respect of the Trust ￿ required by section 130 of the Act; or (2) the accounts do not accord with those records; or [)} the accounts do not comply with the applieablc requirements concerning the forni and content of ¢ounts set out in the Charities (Accounts and Reports) Regulatians 2008 other than any requirement that the accounts gtve a'true and fair view, which is not a matter considered as part of an independent examination. I have no concerns and hav¢ come across no oiher matters in connection with th¢ ¢xaniination to which th¢nlioy] should be drawn in this report in ord¢r to ¢nable a pr(>￿r understanding of the accounts to bc reacbed. Signed: Name: James Burnett ACA ACCA Relevant professional quaiifi¢2tion or membership of professional body". ICAEW Address: Churchgate House ) Chur¢h Road Whitchurch Cardiff CF14 2DX Dat¢: zi o cr06Eq ￿L￿Page 10 Chqrtered Tax Advisers ¢MAkTEkeP AttOUNYAATS EAt¥ettys•P•ik41 S. &¥xhl FC4CTA8FP•SwgrP. Bak$￿A¢4￿ABFP•w¥n￿(￿Conll¢rCr￿ *.'hèl RWkr£dwhhlhg¢h3MiÉdlnstknrtgtsfT¥W4iw¥s&firm￿(h•rt¥r￿OTax￿¢ef% aEÈBakTh[￿th8tr8dIRSnIff￿ofHty BaksMikiiR4d. Compwnumwon9%)7L R¢Atsgw4¥￿Wl￿$aE%r**￿4d1￿e$$ PENCARE STATEMEf4T OF FINAI¥4CIAL ACTIVITI INCLUDING tNCOME & EXPENDITURL ACCOUNf AND STA TEMENf OF RECOCNISED GAINS AND OSSES FOR THE EAR EIWED 31 MARCH 2024 Unrestrf¢tsd FuMd5 Ulldeslgts#t¢ Totsl year en