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2023-03-31-accounts

Charity registration number 254881

Company registration number 00906197 (England and Wales)

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs L Bird Dr J White Mr S Patterson Mrs C Parker Mr S Bedwell (Appointed 27 March 2023) Secretary Mrs L Bird Charity number 254881 Company number 00906197 Registered office Abbeyfield House Galgate Barnard Castle Co Durham DL12 8BL Independent examiner Mrs Jillian Hindmarsh FCA Allen Sykes Limited 5 Henson Close South Church Enterprise Park Bishop Auckland Co Durham DL14 6WA

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

CONTENTS

Page
Trustees' report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Statement of financial position 6
Notes to the financial statements 7 - 14

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the the Companies Act 2006 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 (FRS 102)" (effective 1 January 2019).

Objectives and activities

The objective of the charity is to provide housing in Barnard Castle in accordance with the aims and principles of the Abbeyfield Society Limited to whom it is affiliated. Abbeyfield House was purchased in 1968. This property was extended in 1973 when the former surgery at the rear of the premises was acquired. It has been a priority to upgrade the house to provide high quality accommodation which meets the aspirations of the residents.

The trustees have had due regard to the guidance published by the Charity Commission on public benefit. We feel that we achieve public benefit by the provision of high quality accommodation for the elderly, which allows them to live in comfort and with dignity.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

During the first three quarters there were consistently four vacant rooms. In February 2022 one of the rooms, which had been vacant for some time, was converted into the administration office. The existing office being no longer fit for purpose and a temporary measure put in place when the operation began to function on one site. Of the remaining rooms one was occupied from February 2023 onwards and, although outside the realms of this report, two rooms on the second floor were allocated as one let in July 2023.

Older people are beginning to consider moving to alternative accommodation, therefore the number of enquires have begun to increase, although they continue to be low in number. Trustees and managers continue to focus on this issue and utilise The Abbeyfield Society and our own online marketing to promote our offer and vacancies.

The bungalows have remained at full occupancy throughout the period and have contributed to the positive financial outturn at the end of the year.

Planned and day to day maintenance included the instalment of the infrastructure for the re-sited office, Health and Safety upgrades, and some significant repairs due to wear and tear.

The society generally has low staff turnover and 2022/23 has been no exception. Staff costs have reduced from 60% to 56.5% of overall expenditure. We continue to receive support through The Abbeyfield Connect portal and the Connect online training hub. Staff and trustees have accessed a range of courses at modest cost. Staff have been able to complete mandatory courses online and fit them around their work schedules.

The welfare of our residents and staff is always a priority. Celebrations and events have taken place throughout the year, culminating in a successful Family and Friends Christmas buffet lunch. Residents and their families have expressed that they feel safe and secure and that their welfare comes first.

The Abbeyfield England Society has been established to which we have signed and affiliation agreement. Work continues at a national level to re-form to become a membership only society and to review, with the membership an updated Service Level Agreement.

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Financial review

Full accounts are attached to this report. As detailed in the Statement of Financial Activities, the surplus for the year amounted to £6,150 (2022: £95,435).

No restricted funds were received during the year. The balance of restricted funds held remains at £5,525, which is to be used towards the creation of a sensory garden for the enjoyment of our residents.

Unrestricted funds are needed:

a) to cover administration and support costs without which the charity could not function and;

b) to provide funds which can be designated to specific projects to enable these projects to be undertaken at short notice.

Free reserves are unrestricted funds not held as functional fixed assets. The Society aims to keep free reserves of at least six months' running costs, which equate to roughly £72,000. This would cover any gaps in occupancy or unforeseen costs, should any of the properties require urgent repair work. The charity had free reserves of £113,925 at 31st March 2023 (2022: £104,469). Surplus funds will be used to further improve the facilities for our residents.

Plans for future periods

a) to continue to provide housing in Barnard Castle in accordance with the aims and principles of the Abbeyfield Society Ltd.

b) to work towards full occupancy.

c) to continue improvements to Abbeyfield House to ensure that it meets the current and future needs of our residents.

d) to effectively invest and utilise our remaining funds to extend our provision for older people in Barnard Castle.

e) to create a sensory garden for our residents to enjoy.

Structure, governance and management

The Company was incorporated on 16th May 1967 for the provision and management of housing, accommodation or assistance, including providing and maintaining or assisting in providing and maintaining houses and homes, for the relief and care of elderly persons suffering from the disabilities of old age or otherwise being in need. It is a Company Limited by Guarantee and not having a share capital as set out in the Companies Act 2006.

The Society is managed by its trustees who are assisted by a manager, housekeeping manager, three housekeepers, a house assistant, a handyman and house volunteers.

The trustees and staff ensure that risks are monitored and assessed. Reviews of insurable risks are undertaken regularly. Systems have been established to mitigate identified risks and expert advice is taken where necessary.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mrs L Bird Dr J White Mr S Patterson Mrs C Parker Mr S Bedwell (Appointed 27 March 2023)

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

The appointment, induction and training of trustees is organised by the trustees as a body.

New trustees work closely with more experienced trustees to familiarise themselves with their role and to have their questions answered.

The Society utilises the facilities and development opportunities provided by the Abbeyfield Society to support the development of new and existing trustees.

The trustees act as a management committee which also includes the manager, housekeeping manager and volunteers as appropriate.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The trustees' report was approved by the Board of Trustees.

..............................

Mrs L Bird

Trustee

Date: .............................................

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

I report to the trustees on my examination of the financial statements of The Abbeyfield Barnard Castle Society Limited (the charity) for the year ended 31 March 2023.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Mrs Jillian Hindmarsh FCA for and on behalf of Allen Sykes Limited

5 Henson Close South Church Enterprise Park Bishop Auckland Co Durham DL14 6WA

Dated: .........................

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and legacies
3
261
-
Charitable activities
4
131,398
-
Investments
5
20,303
-
Total income
151,962
-
Expenditure on:
Raising funds
6
4,447
-
Charitable activities
7
141,365
-
Total expenditure
145,812
-
Net gains/(losses) on
investments
11
-
-
Net income for the year/
Net movement in funds
6,150
-
Fund balances at 1 April 2022
721,235
5,525
Fund balances at 31 March
2023
727,385
5,525
Total Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
261
856
-
131,398
134,830
-
20,303
19,213
-
151,962
154,899
-
4,447
3,074
-
141,365
136,039
-
145,812
139,113
-
-
79,649
-
6,150
95,435
-
726,760
625,800
5,525
732,910
721,235
5,525
Total
2022
£
856
134,830
19,213
154,899
3,074
136,039
139,113
79,649
95,435
631,325
726,760

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

The notes on pages 7 to 14 form part of these financial statements.

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
12
Investment properties
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
17
Unrestricted funds
2023
£
5,695
116,954
122,649
(3,199)
£
130,460
483,000
613,460
119,450
732,910
5,525
727,385
732,910
2022
£
3,695
110,355
114,050
(4,056)
£
133,766
483,000
616,766
109,994
726,760
5,525
721,235
726,760

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on .........................

..............................

Mrs L Bird Trustee

Company registration number 00906197

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

The Abbeyfield Barnard Castle Society Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Abbeyfield House, Galgate, Barnard Castle, Co Durham, DL12 8BL.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings Not depreciated Fixtures, fittings & equipment 15% reducing balance Office furniture & equipment 40% reducing balance

Freehold properties are not depreciated as their residual values are not considered to be less than cost.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

1.10 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Donations and gifts 261 856

4 Charitable activities

Abbeyfield Abbeyfield
House House
2023 2022
£ £
Sales within charitable activities 2,648 -
Charitable rental income 128,750 134,830
131,398 134,830

5 Investments

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Rental income 20,148 19,200
Interest receivable 155 13
20,303 19,213

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

6 Raising funds

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Investment property costs
Repairs & maintenance 3,292 618
Insurance 917 855
Other fundraising costs 238 -
Support costs - 1,601
Investment property costs 4,447 3,074
4,447 3,074

7 Charitable activities

Abbeyfield Abbeyfield
House House
2023 2022
£ £
Staff costs 51,998 51,766
Rates & water 4,291 4,655
Light & heat 8,960 9,552
Repairs & maintenance 14,396 10,768
Insurance 3,860 3,017
Housekeeping 13,193 11,639
Residents care 1,703 2,132
TV licences 158 199
Gardening 93 72
98,652 93,800
Share of support costs (see note 8) 36,901 35,745
Share of governance costs (see note 8) 5,812 6,494
141,365 136,039

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

8
Support costs
Support
costs
Governance
costs
£
£
Staff costs
30,394
-
Depreciation
3,236
-
Communications & IT
1,050
-
General office
1,914
-
Finance costs
125
-
Other costs
182
-
Independent examination
fees
-
1,560
Non-examination fees
-
522
Legal and professional
-
183
Affiliation fees
-
3,547
36,901
5,812
Analysed between
Fundraising
-
-
Charitable activities
36,901
5,812
36,901
5,812
2023Support costs Governance
costs
£
£
£
30,394
30,981
-
3,236
3,605
-
1,050
1,109
-
1,914
1,136
-
125
138
-
182
377
-
1,560
-
1,560
522
-
474
183
-
913
3,547
-
3,547
42,713
37,346
6,494
-
1,601
-
42,713
35,745
6,494
42,713
37,346
6,494
2022
£
30,981
3,605
1,109
1,136
138
377
1,560
474
913
3,547
43,840
1,601
42,239
43,840

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

10 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
8 8
Employment costs 2023 2022
£ £
Wages and salaries 81,015 81,183
Other pension costs 1,377 1,564
82,392 82,747

The average number of full-time equivalent employees during the year was 5 (2022: 5).

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

10 Employees

(Continued)

There were no employees whose annual remuneration was more than £60,000.

11 Net gains/(losses) on investments

Total Unrestricted
funds
2023 2022
£ £
Revaluation of investment properties - 79,649

12 Tangible fixed assets

Freehold land
and buildings
Fixtures,
fittings &
equipment
Office
furniture &
equipment
£
£
£
Cost
At 1 April 2022
113,931
55,683
8,876
At 31 March 2023
113,931
55,683
8,876
Depreciation and impairment
At 1 April 2022
-
36,883
7,911
Depreciation charged in the year
-
2,822
414
At 31 March 2023
-
39,705
8,325
Carrying amount
At 31 March 2023
113,931
15,978
551
At 31 March 2022
113,931
18,800
1,035
Investment property
Fair value
At 1 April 2022 and 31 March 2023
Total
£
178,490
178,490
44,794
3,236
48,030
130,460
133,766
2023
£
483,000

13 Investment property

The fair value of investment property has been arrived at by applying the Nationwide House Price Index [Percentage movement in value] to the value on the date of acquisition up to the reporting date. The trustees also made reference to market evidence of transaction prices for similar properties.

The valuation has been calculated by the trustees, and not by an independent valuer.

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

13
Investment property
The carrying value of land and buildings included in investment properties comprises:
Freehold
14
Debtors
Amounts falling due within one year:
Prepayments and accrued income
15
Creditors: amounts falling due within one year
Other taxation and social security
Accruals and deferred income
(Continued)
2023
2022
£
£
483,000
483,000
2023
2022
£
£
5,695
3,695
2023
2022
£
£
-
194
3,199
3,862
3,199
4,056
(Continued)
2023
2022
£
£
483,000
483,000
2023
2022
£
£
5,695
3,695
2023
2022
£
£
-
194
3,199
3,862
3,199
4,056
2022
£
3,695
2022
£
194
3,862
4,056

16 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £1,377 (2022 - £1,564).

17 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement Movement
in funds in funds
Balance at Incoming Balance at Incoming
Balance at
1 April 2021 resources 1 April 2022 resources 31 March 2023
£ £ £ £ £
Sensory Garden 5,525 - 5,525 - 5,525

The Sensory Garden fund consists of legacies and donations received towards the costs of producing a sensory garden for the residents at Abbeyfield House.

THE ABBEYFIELD BARNARD CASTLE SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

18
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2023
2023
£
£
Fund balances at 31
March 2023 are
represented by:
Tangible assets
130,460
-
Investment properties
483,000
-
Current assets/(liabilities)
113,925
5,525
727,385
5,525
19
Related party transactions
Remuneration of key management personnel
Total
Unrestricted
funds
Restricted
funds
2023
2022
2022
£
£
£
130,460
133,766
-
483,000
483,000
-
119,450
104,469
5,525
732,910
721,235
5,525
Total
2022
£
133,766
483,000
109,994
726,760

The remuneration of key management personnel is as follows.

2023 2022
£ £
Aggregate compensation 30,394 30,981