Registered Charlty Number 257237 The Cote Charity Annual report and financial statements for the year ended 31 December 2021
The Cote Charity Annual report and frnancial statements for the year ended 31 December 2021 Contents Page Report of the Trustee Independent auditor's report lo the Trustee of The Cote Charity Stalemenl of financial aclivilies 10 14 Balance sheet Cash Flow slalemenl Principal accounting policies Notes lo Ihe financial statements 19
The Cote Charity Report of the Trustee for the year ended 31 December 2021 The Trustee presen15 Ils re)rt and audited financia statements for the year ended 31 Oecember 2021. The financial slalemenls comply with current stalulory requirements. the Trust deed and the Statement of Recommended Practice for Charities (SORP 20191. Trustee, officers and advisers The Trustee of the Charity is SMV Trustee Company Limrted. Listed below are Ihose members who have served on the Board of SMV TrLsslee Company Limited during the year". David Freed Patrick Despard Michael Bolhamley Gillian Camm DL Ross Ancell Torry Kenny Charles Grrffilhs Cullum M&41pine John Walson Gail Bia9J Alan Lews Roberl Bourns OL Moharnmed Saddiq Jonalhon Baker Andrew Nisbel Martin Thatcher Roderick Davidson Steve Ajlpress Nick Bakef Karl Tucker Kalharine Finn (Dwsed 03 JU 20211 (Reled 10 Novemtr 2021} (Retired 10 NovemLw 2021) (Retired 10 November 2021} (Reli 10 November 2021} (Retir 10 NovemLEr 2021} IAppx)inted 10 November 20211 IApwJinled 10 Noverrbber 2021) (Apwinled 10 November 2021) IApp)inled 10 November 2021) Registered address of the Charlty Merchants, Hall The Promenade Clifton Bristol BS8 3NH Charlty Number: 257237
The Cote Charity Report of the Trustee for the year ended 31 December 2021 (continued) Names and addresses of other relevant organlsatlons Auditor KPMG LLP, 66 aueen Square, Brisld. BS148E Banker Nalwesl Bank plc, 32 Corn Street. Bristol. 8S99 7UG Sollcltor Womble Bond Dickinson {UKI LLP. 3 Temple Quay. TemFAe Back East. Bristol. BS1 60Z Invostmènt Manager Evelyn Partners Investment Management LLP. Pothvall A3. Portwall Lane. Bristol, BS16NA (via the Merchant Venturers, Charit$ Investment Pool {MVCIP). Charity Number 10534591. Structure, governance and management Governing document The Charity is consliluletl under a Charity Commission Scheme dated 8 October 1968 and is registered with the Charity Commission. number 257237. Governing body and organisational management The Trustee of the Ch*ity is SMV Trustee Company Limrted. a MpanY limited by guarantee. All the members of the Society of Merchant Venturers. Standing Committee a Directors of SMV Trustee Company Limited. The Trustee meets lo consider. al least on a quarterly basis. the broad strategy. direction and investment policy of the Charity. Assisling the Trustee are the Audit Sub-committee and the COnt$ of Interest Advisory Sutkcommittee. Day lo day running of the Charily is delegated by the Trustee lo a Sub-commillee {the Care of Older People Sub-Commillee}. the Members of which who served during the year were.. Dr Jacqueline Cornish {Chairl John Laycock IRetired 10 November 20211 Stephen Parsons {Relired 10 November 20211 Caroline-Jane Duckworth Anne Nisbel Chades Densham Robert Davis (Retired 10 November 20211 Chris Pople {Relired 10 November 2021) Mary Prior Chades Grrffilhs Jullian Telliru (Retired 10 November 2021) Anthony Brown Edward Ware IAppoinled 10 November 20211 David Marsh {Appointed 10 November 20211
The Cote Charity Report of the Trustee for the year ended 31 December 2021 (continued) Governing body and organisational management (continued) The Care of Older People Suwmmiltee meets al least quartety lo oversee and administer the effiaenl manaJemenl of the Charity and lo consKJer arKI subsequenlty recommend lo. a1 9ain approval from, the Trustee for broad OperalKal a1 stralegr issues, as well as reporting lo the Trustee on all relevant operational mallers. The tenure of memrship is 3 years. re-electthe for a further 3 years and, in speaal circumstances, tenure can be extended. The induclKJn pro$ for any nthy apwnled member IdeS an inrtial meeting with Ihe Chairnian and subseqvent meeting arKJ site VLsits with Ihe Cote Manager. The Cole Manager assisls the Care of Older People Sub-committee in fulfilling the day-IIHlay mark2gement of the Charity. Accouniing suprx)rt is provided by Merchant Venturers, FInar department. The Merchant VenlLtrers' Audil Committee is responsible for assessing the scope and effectiveness of the systems and processes established by management lo idenlfy, assess. manage and monitor the finanrial and non-financial risks. The Conflicts of Interest Advis(ry Sub£ommittee was estat&Shed in 2021 and comprises of two individuals with no connection to eilher SMV or SMV TCL who can adVe on are85 where a corfflicl of interest might arise. As delailed in note 15. the S(xiety of Merchant Venturers provided alministralive services lo the charil*s of %thich SMV TCL was trustee and las perfflrtied by the Charity CommissK)nl made a charge for these. The Conflicts of Interest A<fvisory SutFCommittee has rev these Char and rnade a recommerKlalK)n lo the board of SMV TCL that the protK)sed charsEs are. {wiron of the [rberS of the Sub-committee) appropriate. Recruitment and training of the Trustee The Directors of SMV Tnjslee Company Limited are elected anThJally from within the membership of the Society and are appraised of the general ¢Julies of a tnjstee. In the event of significant changes lo legislation or best practice. further relevant training is urertaken. The management and strategy of the Charity are considered in greater detail by the Care of Older People Sub-committee. The members of this Sub-committee bring with them the necessary financial. woperty and care skills that enable them lo deal both with more immediate issues as well as lo assess. monitor and make the necessary recommendations for the future strategic direction and well-being of the Charily. They are inducted through meetings wilh the Chair and Cote Manager. Risk management In the light of the Corporate Govemance guidance conlained within the Slalemenl of Recommended Practice 2019 'Ac¢ounling and Reporting by CharilEs". the Trustee has examined the major risks faced by the Charity. In addition lo managing the reswnse lo COVID-19. the Trustee continues to monitor and manage onwing risks relating lo areas such as the a¢hveMent of the charttable objects and the protection of the charity s assets. Systems are in place to monitor and control these risks and lo miligale the impact that they have on the Charity. The risk register is reviewed and updated a5 required but not fewer than on 2 bi-anThJal basis by Management and by the Care of Older People Sub-committee. 11 is reviewed by the Merchant Venturers Audit Committee and is noted by the Trustee. As part of managing the response to COVID-19. the Care of Older People Sub-commillee has reviewed the risk regisler al every meeting during 2021. The Charity is reliant on resident income and monitors closely the level of vacancies al Katherine House and Griffilhs House. This enables costs to be managed as required and informs Ihe working capital requiremeT)Is. The Care of Older People sCOmMIttee has viewed an outbreak of infectbon or infectious disease as a key risk. This is being monitored closely during the COVID-19 pandemic wilh mitigation in place such as., robust procedures and policies, ongoing staff training. gUlar reviews and feedback, as well al ulilising professional advice and support lo ensure the Charity maintains pace wtlh Ihe changing guKlelines.
The Cote Charity Report of the Trustee for the year ended 31 December 2021 (continued) Objectives and activities Objects of the charity The Trustee confirms that rt has referred lo the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charily's aims and objectives and in planning future aclivilies. The objects of the Charity, defined in the Trust deed. whith shoukl be refeTTed lo foT exacl delails. are: la) to provJe a resthlltial horne or homes or a combination or Combinations of a reential home aTrJ a nursing home for dderly persons over 60 years of age who through infirmity or financial needs are unable to provhle a home for themsthes., to pay pensr)ns, annuit or grants to elderty Fersons over EA) years of age Iwhelher or ml residents of the homes) and Ytho through infim)ty or finaneial need are unaL4e lo provide the necessities or comforts of Itfe." and Icl for general charitatAe wrwses. There have been no Char fflwje to the obiects year. Aims and intended impact The aim of Ihe Charity is to WOVKle residenti Me$ of hh quality for older people. Where appropriate, older people in reduced circumstances are offered suptyi lo enable Ihem lo access the services. The Truslee has given careful consmleralion to the level of fees sel for Katherine House arKI Gnffilhs House lo ensure that they are faw. Objectlves for the year This year ts prirbcipal objectNe$ of Ihe drity have been: to continue lo provide 8 high starKJard of care and supwt serVe5 in good accommodation., lo let units at Cote H(wJse RotM"nson Place on a sh1 term basis to 9eneraie funds lo furlher the Charty's obiedNes'. to continue lo develop a an lo enatrAe Cote House arKI its grounds to be used to further the Charity's obJ8thes and meet Ihe expeclalions of current and future reskjents. Volunteers The welfare of the Cole residents. whilst overseen by Ihe Cole management team and staff. 8150 benefits from the sUPWrt tKovided by the Merchant Venturers. V15rting Group. a team of vdunleers, who regularly visit the Homes. In 2021 due lo the COVID-19 pandem. limrted visits have been able lo lake aCe in person. Wherever possitAe activities al the homes Ikgve (x)ntinued in a COVKJ safe manner. Examples include.. volunteers participating in shared reading Nwlh residents and"singiro for Ihe brain-, as well as outdoor ConrtS.
Tho Cote Charity Report of the Trustee for the year ended 31 December 2021 (continued) Achievements and perfomiance The Charity continues to Pfovide an excellent service that meets the varying demands of ils residents at Katherine House and Griffilhs House. Levels of care are favourably commented by residents, their families and independent inspectors. Their success was demonstrated by the 2020 inspection by the Care Quality Commission which raled Katherine House 'Good' in all categories, wlh 'Oulslanding' for the 'responsive' category and the 2021 inspeclion by the Care Quality Commission which rated Griffilhs House 'Good' in all categories. Financial review The Charity produced a nel defl (detailed on page 14) of {153.504) {2020.. £181.282 nel surplus). The COVID-19 pandem has had a signffianI effect on the Cafe sectcK as residents are vulnerable to the disease. Due lo the Str1S necessary lo wolect resKJenls staff. new residents have not come into the )mes in line with previ)us years and this has led lo higher than usual vacanc. The dgeted (cupancY for 2021 for Kalhefine House was 91 OA and the aclud oc(JJparwwas 74%. The buégeled occupancy for 2021 for Grrffilhs House was 9V/o and the actual occupanGy was 760A. Some costs are variatle and therefore were lower than budgeted. Occupancy levels will continue lo be a key fccus f 2022. Current forecasts su9Jesl than although ¢upancY is bdow historic eLs. 3 reduction in variable costs means there is sufficienl cash available lo support the CharilS requirements_ Investment policy and perfonnance The Trustee has ddegaled investmenl management to Ihe Merchant Venturers, Finance and Investmenl Svb-committee for the inveslmenl and performance of Ihe financial assets,. the appointment of appropriate Fund Manager, monitoring their performance. and lo recommend lo the Trustee Ihe optimum stra18gy for financial inv8slmenl_ The Charity continued lo invest in the Merchant Venturer5' Charitie5 Investment Pool IMVCIPI (Charity number 10534591 during the year. The Sub£ommittee'5 prAicy is lo maintain income whilst weserving the real value of the investsnenls. The InMe provides unrestrted lunds lo enable the Trustee to pursue the objects of the Charity. indudirvJ pla future. Reserves policy The Trustee's pdicy lakes accnI of (a) the liabdilies vh would be faced by the tharity rf it were lo cease operating, Ibl the financ4al '¢)JshKJn' it w¢JJld need in order lo have lime lo respoThJ to a serious tyjl possible funding crisis wlhoul immediatdy kJsirwJ capacaty. {cl any longer t Ot1te9 Wh might require significant investment. The prinrypal accounting leS on pw 16 10 17 dewbe varty)us funds of the Chwty. The Trustee has Ihe policy to maintain reserves of unreslTiCted funds lo a level that provKJes an operational contingency of approximately 6 months, running costs. Any surplus unrestricted reserves would be used for the redevelopment of Cole HIHJse and ils grounds. Al 31 Decembw 2021 the unrestrthd furnls were £1,W.516, whmth is sIgnrfan1IY higher than 6 months. running Costs. Al 31 December 2021 restn.cted funds were £202,556 and permanenuy erKlowed funds were £3,139.939. The policy is reviewed on an annual basis by the Trustee to take accounl of the development of the charity and a review of the changing risks li faces. partKulady in respect of income.
The Cote Charity Report of the Trustee for the year ended 31 December 2021 (continued) Golng concern The finanoal stalements have been prepared on a 9)iThJ concwn basis lch the Trustee conskJers to be appropriate for the followng reasons. Th& Trustee has prepared rASh flow f(xecasls a perk)d of 12 monlhs from the dale of approval of these financial statements which indule Ihal. iaking account of reasonably possible doWnSeS and Ihe anlicipaled future impact of COVID-19 on operalk)ns and of its finar181 resources, the charity wdl have SuffiCnI funds lo meet ils liabilities as they fau due for that perwxj. The COVID-19 pandern has had an effect on the Care sedor as residents are vulnerabie lo the disease. However. all resKlenls wthin the homes have received the vaccine, Ihere 15 regular lesling availaNe for staff, residents arKI nomwle(J ws115 aTrJ re we robust infection conlrd measures in place in the IK)mes. The Trustee considers that demand for Katherine House Griffrths Hse remains strong and wll continue for the foreseeable future. In aditn. the charity receives general rental income from the units al Robinson Place and units al Cole Paddock. The charity has a strong cash fxjsilion. and in the event of a signrficant downlum in income or increase in costs. has the oplDn ulilisbng the ¢ash invested in a deposrt xcounl to meet its liabilities. Consequently. the Trustee 15 conffidenl that the Chty have 5ufftient funds lo continue lo meet ils liabilils as they fall due for al least 12 months from the date of approval of the finano?al stalements and Iherefore has prepared the financkal slalemen15 on a wing nCern basis. Future plans To continue lo provKle high qua]ty serVS lo the residenls al Katherine Hc4Jse and Grrffilhs House by.. Continuing lo attract arKI retain an eXp1)nal workfor Continuing lo ddNer a vEd and engagirg aclivths wografflme lo our residents Striving lo achieve 'Outstanding' care a(xoss al CategKx as rated by CQC. To continue lo let the h)Jses al Rotmnson to gerErate funds to suppx¥t the ChariW5 objectives. To implement the first phase of the plan lo redevelcy Cole Hse and ils grnds, ind1ng working in partnership with other charities and developiw an for the sile which would further the Charity's O.e¢'veS and be mindful of ils hentage.
The Cote Charity Report of the Trustee for the year ended 31 December 2021 (continued) Accounting and reporting responsibilities Statement of Trustee's responslbllltles In respect of the Report of the Trustee and the flnanclal statements Under charity law, the trustee is responsible for preparirKJ the Trustee's Annual Report and the financial stslemenls in accordance with applicable law and regulations. The Iru51ee is required to prepare the financial slalements in accordance wrth UK Aeeounting Standards. induding FRS 102 Th& Financ1 Reporting Standard appIable in the UK and Republic of Ireland. The financial slalemenls are requKed by law to give a true and fair view of the slate of affairs of the charity and of the incoming resources and application of resources for that period. In preparing these financial slatemenls. generally accepted a¢xounting practice entails that the Iruslee: selects suitable accounting policies and then apply them consislenlly- makes judgements and eslimales that are reasonable and prudent.. slates whether applicable UK Ac(x)unling Siandards and the Statement of Recomrnended Practice have been followe¢J, subject lo any material departures disclosed and explained in the financial stalemenls.. slates whether the financial statements cofflply wilh the Irusl deed. Subject to any material departures disclosed arKI explained in the financial slatementS.' assesses the charity'5 abilty to continue as a going concem, (Jisclosing, as applicable, mallers related lo going concem: and uses the going concem basis of accounting unless they either intend to IiquKJale the charity or lo ase operations. or have no realistic alternatwe bul to do so. The Iruslee is required lo act in accordance wlh the trust deed of the charity. within the framework ol trust law. They are responsible for keeping accounting records which are SUfflen1 lo show and explain the charily's transactions and disdose al any lime. with reasonable accuracy, the financial position of the charily al that lime, and lo enable the trustees lo ensure that. where any slalemenls of accounts are prepared by them under section 132111 of the Charities Acl 2011, those statements of accounts comply with Ihe requirements of regulats.ons under that provision_ They are responsible for such internal control as they determine is necessary lo enae the preparation of financial slalemenls Ihal are free from material misslalemenl, whether due lo fraud or error. and have general responsibility for taking such steps as are reasonaiAy open lo them to safeguard the assets of Ihe charity and lo prevent and delecl fraud and other irregularities. Sign8d for an on behalf of the Trust David Freed Dlrector Merchants. Hall. The Promenade. Clifton. Bristol. BS8 3NH Dale.. 1¢ TV L
Independent auditor's report to the Trustee of The Cote Charlty Opinion We have audited the fin8nci81 slalements of The Cole Charity ("the charity'l for the year ended 31 December 2021 which comprise the statement of financial aclivilies. balance sheet. cash flow statement and related notes. including the accounting policies on pages 16 10 17. In our opinion the financial statements.. give a true and fair view of the slate of the charity's affairs as at 31 December 2021 and of Its incoming resources and application of resources for the year then ended". have been properly prepared in accordance with UK accounting standards. including FRS 102 Th8 Financ1 Reping Standard applicable in the UK and Republ of Ireland: and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for oplnlon We have been appointed as auditor under section 145 of the Charities Act 2011 {or its predecessors) aTh report in accordance with regulations made under seclion 154 of that Act. We ¢onducted our audit in acCdanCe with Internaliond Standards on Auditing (UK} {-ISAs IUKI'I and applicable law. Our responsibilities are described below. We have fulfilled our elhical responsibilities under. and are independent of the charity in a(xordance with, UK ethal requiremenls including the FRC Ethical Standard. We bdieve that the audit evidence we have obtained is a sufficient and appropriate basi5 for our opinion. Golng concem The Iruslees have prepared the financial slalemenls on the going concem basis as they do not intend to liquidate the charity or lo cease ils opeialions. and as they have conduded that the charity s financial position means that this is fealislic. They have also concluded that there are no rnalerial uncerlainlies that could have cast significant doubl over ils ability lo continue as a going concern for al least a year from the dale of approval of the f5nancial slalements ('Ihe going concern perK)d-l. In our evaluation of the trustees, condusions. we considered the inherenl risks lo the charity's business model and analysed how those risks mvJht affKI the charity's financial resources or ability lo conlinue operations over the going Conrn period. Our conclusions based on this work.. we consider Ihal the trustees. use of the Ing wncefn basis of accountin9 in the preparation of the financial slatemenls is appropriale-, we have not identified, and concur with the Iruslees. assessment thal there is not, a material nrtainlY related lo events or conditions that. individually or cdlectively, may cast significant doubl on the charity's ability to continue as a going concern for the going concern period. However. as we cannot predicl all future events or conditions and as subsequent events may result in outcomes Ihal are inconsislenl with judgements Ihal were reasonable al the time they were made. the above conclusions are not a guarantee that the chartty will continue in operation. 10
Independent auditorfs report to the Trustee of The Cote Charity (continued) Fraud and breaches of laws and regulations- ability to detect Idenlifying and responding lo risks ofmaterial misst8fem8nl dua to fraud To identify risks ol material misslalemenl due lo fraud I"fraud risks'} we assessed events or conditions that coul(J indale an incentive or pressure lo commit fraud or provide an opportunrty lo commit fraud. Our risk assessment procedures included- Enquiring of management as to Ihe charity's high-level policies an(J procedures lo prevent and delecl fraud as well as whether they have knoedge of any actual. suspected or alleged fraud. Reading SMV Trustee Company Limited board. audtt committee. and investment committee meeting minutes. Using analyts'cal procedures lo identfy any unusual or unexpected year on year movements. We communicaled idenlrfied fraud risks Ihroughoul the audii team and remained alert lo any indications of fraud throughout the audft. As required by auditing standards. and taking into account our overall knowledge of the control environment we perform procedures lo addiess the risk of management override of controls and the risk of fraudulent revenue recognition, in particular the risk that management may be in a position lo make inappropriate accotjnling entries. We did idenlify any additional fraud risks. In delermining Ihe audit procedures we look into account the resulls of our evaluation and testing of the operating effectiveness of some of the fraud risk management controls. We also performed procedures induding- Identifying joumal entries and other adjustments to lest based on risk criteria and comparing the idenlrfied entries lo supporting documentation. These induded unusual accounts combinations. Subslanlive testing of rental income and agreement to supporting evKlence. Idenlifying and responding to rkS of material misslaten7ent due lo non-compliance ¥wth laws 8nd regulations We idenlrfied areas of18ws and regulations that eould reasonabty be expected lo have a material effect on the financial slalements from our general commeraal and sector exper1ere and discussed wth the directors and other management the policies and procedures regarding compliance th laws and regulations. As the Charity is regulaled. our assessment of risks involved gaining an understanding of the control environment ildIng the enlily's procedures fcK complying with regulatory requirements. We communicated identifi.ed law5 and regulations throughout our team remained alert lo any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the Charity Is subj'ect to laws and regulation5 that directly affect the financial slalements including financial reporting legislation {including charities legislalionl and taxation legislation and we assessed the exlenl of compliance with these laws and regulalions as part of our procedures on Ihe related financial ststemenl items. Secondly, the Charity is subject lo many other laws and regulations where the consequences of non- compliance could have a material effecl on amounts or disclosuS in the financial stalemenls, for inslance through the imwsilion of fines or liligalK)n. We idenlrfie¢J the folkjwing areas as those most likely lo have such an effect.. health and safety. employment law. and certain aspects of charity legislation recognising the finanual and rewlaled nature of the Charity's aclivilie5 and ils legal form.
Independent auditor's report to the Trustee of The Cote Charity (continued) Auditin9 standards limit the required audit procedures lo idenlrfy non-compliance with these laws and regulations lo enquiry of the direclofs and other management and inSpeCtn of reLwlatory and legal correspondence. if any. Therefore rf a bre of operalional relatIonS is not disclose(J lo us or evident from relevant correswndence. an audit will not delecl that breach_ Context of the ats.lily ofthe audrf to detecl fraud L¥ breaches oflaw orregulalion £ing lo the inherent limitations of an audit. there is an unavoKlable risk that we may not have delecled some material misslalemenls in Ihe fInarla1 statements. even though we have properly planr)ed and performed our audit in a(X0rdan with audiling standards. For example, the further removed non- compliance with laws and regulations is from the events an(J transactions reflected in the financial slalements. the less likely the inherenuy limiled procedures required by auditing standards would idenlfy In addition, as with any audit. there remained a higher risk of non-deleclion of fraud. as these may involve collusion, forgery, intentional omissions, misrepresenlalions, or the override of internal controls. Our audit procedures are designed lo delect material misslalemenl. We are not responsible for preventing non- compliance or fraud and cannol be exF*Cted lo delecl non-compliance wilh all laws and regulations. Other information The Iruslees are responsible for the other informalK)n. which comprises the Reporl of the Truslee. Our opinion on the financial slalements does nol cover the other information and, accordingly, we do not express an audit opinion or, except as exF4iully stsled below. any form of assurance condusion Ihereon. Our responsibility is lo read the other infomialK)n and. in doing so. consider whether. based on our financial slalemenls audit work. the infomiation therein is materially misslaled or inconsistent with the financial slatemenls or our audit knowledge. We are required to report to you rf: based solely on that work, we have identified material mi8Stalemenls in the other information.. or in our opinion. the irrformalion given in the Trustee's Annual Report is inconsi5tenl in any material respect with the financial statements. We have nothing lo report in these respects. Matters on whlch we are requlred to report by exceptlon Under the Charities Act 2011 we are required lo report lo you rf. fft our opinion-. the charity has nol kept Sufflent accounting records". or the financ¢al slalemenls are not in agreemenl with Ihe accounting records.. or we have not received all the information and explanations we require for our audit. We have nothing lo report in these respects. Trustees. responslbilltles As explained more fully in their slalemenl sel out on page g. the trustees are responsible for.. the preparation of financial slalemenls which give 8 true and fair view- such intemal control as they determine is necessary to enalje the preparalion of financial slatemenls that are free from material misslatemenl, whether due to fraud or error.. 85sessing the charity s ability lo continue as a going eoncern, disclosing, as applicable. mallers related lo going concern-. and using the going concern basis of accounling unless they either intend lo IiquKJale the charity or lo cease operalions. or have no realistic allernalNe bul lo do so. 12
Independent auditor's report to the Trustee of The Cote Charity (continued) Auditor's responsibilitigs Our objeclives are lo obtain reasonable assurance about vthelher the financial stslemenls as a whole are free from material mi55lalemenl, whether due lo fraud or error. and lo issue our opinion in an auditor's report. Reasonable assurance is a hi9h level of assurance. bul does not guarantee that an audit conducted in accordance wilh ISAS IUKI will always delecl a material misslalemenl when il exists. Misslalemenls can arise from fraud or error and are considered material if. individually or in aggregate, they could reasonably be expected lo influence Ihe economic decisions of users taken on the basis of the rinancial statements. A fuller description of our responsibilities is provided on the FRC'S websile al vMw.frc.or .uklaudilorsres onsibililies. Th• purpos• of our audit work and to vthorn we ow¢ our responsibilili89 This report is made solely lo the chariWs trustees as a tthy. in accordance with section 145 of the Charities Acl 2011 lor ils predecessors} and regulations made under section 154 of that Acl. Our audit work has been undertaken so that we might stale to Ihe charity's trustees those mallers we are required lo slate lo them in an auditc'S report arKI for no other purpose. To the fullest extent permilled by law, we do not accepl or assume responsibility lo anyone other than the charity and ils Iruslees. as a body, for our audit work. fly this report. or for the opinions we have formed. Jonathan Brown for and on behalf of KPMG LLP. Ststutory Audltor Chartered Accounlanls 66 Queen Square Bristol BS148E Dale.. 21 July 2022 KPMG LLP is elwible lo act as an audilix in lerms of sect 1212 of Ihe Companies AGt 2006 13
The Cote Charity Statement of financial activities for the year ended 31 December 2021 Perrnanenl R8slrict8d endowmenl funds fund UNestricted funds Total 2021 Tolal 2020 Nol& Inttsm• from". DOnatS 3.483 3,483 3.513 Covid-19 Grant Incomè 50.025 50,025 71,172 Charitable 1vilieS 1.633,538 1,633.538 2.029,035 Investments 11.583 11.583 15,309 To¢al income 1,645.121 53.508 1.698.629 2.119,029 Expendlture on: Charitable actNlties {l.815.lI {22.2291 {50.025) 171.7341 11.909,B641 11.826,9971 150,0251 {71,1721 15.4211 15.7941 171.7341 11.965,3101 11.903.963) Covid-19 Grant Expen8es Othey 15,4211 11.821.322) Total •xpendlture (72.2541 ILoss85ygains on investment assets 22,697 22,697 {33.7841 Net IncomellLossl Transfers teen funds 1153.5041 118.7461 171.7341 1243,9841 181,282 12 Net movernent In funds 1153.5041 (18.7461 171.7341 1243,9841 181,282 R•conclllatlon of funds.. Total funds brought forward Total funds carrfed forward 2,144,020 221.YJ2 3211.673 5,578.995 5.395,713 12 1,990,516 202.5S6 3,139,939 5,333.011 5.576,995 The statement oi financial activilies indudes all gains and losses recognised in the year. l incoming resources and resources expended derive from conlinuing activities. The ?MpanyIng notes form part of the financBI slalements. 14
The Cote Charity (Charity Number 257237) Balance sheet as at 31 December 2021 2021 2020 Note Fixed assets Tangible assets Investments 4,188,065 359,917 4,547,9B2 4,223,389 337.220 4,560.609 Current assets Debtors Cash al bank 40,499 1,035,830 1,076,329 26.575 1.265.751 1,292.326 Creditors.. amounts falling duo within one year Net current assets Total assets less currgnt liabilities Creditors.. amounts falling due after more than one year Net a$¥ets 10 {291.300) 785,029 5,333,011 {275,9401 1,016,386 5,576,995 5,333,011 5.576.995 Funds Unreslricled Restricted Permanent endowment 12 12 12 13 1,990,516 202.556 3.139.939 5.333.011 2,144.020 221.302 3.211.673 5,576,995 The financial statements on pages 14 10 26 were approved by the Trusl8e on Ig JVLY 9£4X and were signed on ils behaw by.. Davld Freed Director Patrick Despard Director The accompanying notes form part of the financial statements. 15
The Cote Charity Cash flow statement for the year ended 31 December 2021 2021 2020 Notes Cash flow5 from operatlng actlvStles: Net Income for thè rèporting yèar 1243,984) 181.282 Adlu$trrnts for: DeplatI( cha 117,488 {22,6971 {11,5831 (13,9231 76.673 128,29) (Gainsylosses on investmen15 33,784 115.3091 8,308 82.829 Div#lends aryj interest fr(n investrnents {DecreaseYinciease in debtors Increase in creditors Net provlded by oper•tlng acdvlde$ {98,0261 419.184 Cash ftow from Ilnandng a¢tlvlfl•s: Repayment of Bk Loan Net used In Ilnanclng acdvltles 161.314) 161.314) 1113,8441 1113,8441 ash Ilows from Inv•sn9 actlvltl•s: tividends and inierest Irc*)) inVestrts 11.583 (82,1641 (70,581) 15,309 (22,380} 17.0711 Purch88e of property, pLin( and eqpt Neteash US In Inv•$iiffj éetlvlllts Change In cash andcash equlwalents in the year Cash and cash equivalenls al the beginning of Ihe year Cash and cash equlvalents at the end of the year {229,921) 1,265,751 298,269 967,482 1,035,830 1.265.751 The accompanying notes form part of the financial slalements. 16
The Cote Charity Principal accounting policies 8asi$ of preparatlon The accounting policies that the Charity has adopted lo determine the amounts included in respect of materi21 items shown in the balan sheer and also lo determine the irKome and expellditure have been applth consislenlly and are shown below. The Cole Charity ffleels the definition of a public benefit enhty uleT FRS 102. Assets and liablities are initially recognised al historical cost or transactK)n vaue unles5 olheThYise staled in the relevanl acLounting policy. Basis of accounting The financial slalemenls have been prepared under the historical cost convention as modrfied by the revaluation ol certain tangible fixed assets and fixed asset investments. in accordance wlh the Slalemenl of Recommended PraCtice"AcCjnIlng arHJ ReportJ"wvJ by Charities ISORP 20191. applicable lo charities eparing Iheir accounts in &ceanCe th Financial RekM)rts'rYJ Standard aprAicable lo the UK and Repu of Ireland IFRS1021. Golng Concern The Trustee has considered whelher the use of g)ing concem is approwale, i.e. whether there are any malerBI uncertainties related lo evenls conditions that may cast svJnrftanl doubl on the ability of the charity lo c(Hilinue as a wng concern. The Twslee makes Ihis assessment for a period of e1Ve months from the dale of approval of the fInaaal slalemenls. Under all the scenari05 reviewd. the charity has suffnt reserves lo enae tt to CA)ntinue as a goiThJ COrern for the fLveseeatAe future. For this reason it continues to adopt the 9)iThJ concem basis in preparing the financial slalemenls. Critlcal accountlng Judgements and key sources of g$1imation uncertainty In applying the charity's accounting policies, the Trustee is required to fflake judgements. e$limates and 85sumplions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Incomlng resources - donations Donations to the Ch&ity a induded in the financial slalemenls in the year in which they are receivable. Incomlng resources - investments Interest on bank deposits is included as income in the financial statements on an accruals basis. Dislribulions from the inveslmenl in the Merchant Venturers. Charities Investment Pool I"MVCIP'I are Irealed as income in the year in which they accrue. Incoming resources- charitab5e activlties Incoming resources from care for the eldedy comprise rents and fees for the provision of accommodation and care services. which are accounted for on an accnjals basis. Expgndituro All expenditure is accounted for on an accnjals basis and is recognised when there is a legal or conslruclive obligation lo pay for expenses. All cosls have been directly attributed lo one of the functional categories of resources expended in the Sialemenl of financial aclivilies. la) Charitable activities relates lo the costs incurred in running an(J supporting the day-to-day care of the elderly activities in Ihe execution of the Charity's objects. Ib) Other costs relate to the strategic management of the Charity and ils assets, and compliance wilh slalulory requirements_ Irrecoverable VAT Any irrecoverable VAT is charged lo Ihe slalemenl of financial aclivilies or capilalised as part of the cost of the related assets where appropriate. 17
The Cote Charity Principal accounting policies (continued) Taxation The Cole Charity is registered as a charity and as such tax exemption applies lo the income arising from and expended on charitable activities and to 115 inveslfflenl I)Me and gains. Flxed assets and depreciation Fixed asset investments are slated al cosl less depreciation. DeprecialKin is calculated so as lo write off assets on a siraigh14ine basis over the eXted useful economic lives of the assets concern. The annual rates used for Ihi% purpose have been.. Freehold building5 and ifflprovemenls Fixtures. fillings and office equipment Motor vehicles 15 10 50 years 3 to 5 years S years LarKI and assets in Ihe ctyJrse of constrIK)n are not derncialed. Assets wth a cosl of less ihan £1.C(10 are WTitten off to expetKliture duriThJ the year. Investments Fixed asset investments are staled at mid-market value al the balance sheet date. This is not in accordance with FRS102 which recommends bid value but is consislenl with the entity's perfom)ance management process. Using bKI values w¢wld lead to a reduction in the valualron of these listed inveslmenls of an amount which is conSered by the Trustee lo be immaterial. The statement of financial activities indudes the nel gains and losses arising on revaluations and disposals throughout the year. Fund aceountlng The Charity has vamus types of furKls bthich it i5 respork5ible. and whith require separate disdosure. These are as follows: Unrestrlcted funds Funds which are expendable al rhe discretion of the Trustee in furtherance of the objects of the Charity. In addition lo expenditure on care homes. such fijnds may be held in order to finance capital investment and working capital. Restrlcted funds Donations or legacies are earmarked by the dorK)r for Specif purposes. Such purposes are withi the overall aims of Ihe organisalion. Permanent endowment fvnd The permanent endowmenl fund incorporates the cviginal endowments of £100 and the operational properties, together with the Surplus or deficit arising from the revaluation of the property (see note 71 and capital additions lo the property vthich cannot be distinguished from the original endowment properly. Pension costs The Charity makes contributions lo employees, personal pensions in accordance with the auto-enrolmenl provisions. The payments lo the defined conlribulions scheffle are charged lo Ihe statement of financi81 aclivilies in the period in which the obligalion lo fflake contributions arise5. 18
The Cote Charity Notes to the financial statements for the year ended 31 December 2021 Investment income 2021 2020 Distributions from MVCIP 10,915 11,768 Bank interest 3,541 11.583 15,309 Analysis of charitable expenditure - care for older people Direct costs Support costs Total 2021 Total 2020 Staff costs 1.036.245 56.880 1,093.12S 262.183 423.384 1,186,966 Running costs Maintenance and deprecialK)n Management and administration 262.183 423.384 249,755 285,795 104,481 16,127 115,045 131,172 1.737.939 171.925 1.909.864 1,826,997 All the support costs have been allocated to one charitable actNity (care for the elderty). Other costs 2021 2020 Audit fee 5,316 5.316 Tnjslee's indemnily insuran 105 478 5.421 5,794 Net incomelexpenditure 2021 2020 Net incomelexpenditure is slated after charging: Audit fee 5.316 5.316 Depreciation 117.488 128,290 The avdil fee exduding irrecoverable VAT was £4.430 (2020". £4.430). 19
The Cote Charity Notes to the financial statements for the year ended 31 December 2021 Staff costs The average number of persons employed on a full and part-lime basis by The Cote Charity during the year. analysed by category, is as follows: 2021 2020 Residential care 48 Management and administration 52 The aggregate payrdl costs of these persons were as follows: 2021 2020 Wages and salaries Social securily costs Pension costs 996.977 1,082,858 76.333 82,797 19.815 21,311 1,093.125 1,186,966 No individual employee received emdumenls exceeding £62.000 during 2021 or 2020. A rechar9e is made by the Society of Merchant Venturers for $ff as disdosed in note 14. The Trustee is considered lo be the only key management personnel of Ihe Charity. See note 6 below. Trustee's remuneration No director of SMV Trustee Company Limited receNed rernUneratn or reimbursement of expenses for their services lo the Charity during Ihe year12020- £nil) nor had any beneficial inleresl in any contract wlh the Charity during the ye¥ {2020'. £rdl). A professional indemnity insurance premium of £10512020.. £4781 was paid by the Charity on behalf of the Trustee. 20
The Cote Charity Notes to the financial statements for the year ended 31 December 2021 Tangible fixed assets Fixtures. Assets in the Freehold fittings course of land and and office construction buildings equipment Motor Vohiclg$ Total C08t or valuation Al 1 Januwy 2021 Additions 158.429 5.083,364 251.751 7.355 29.2 5,522,834 74.809 82.164 Transfers Disposals At 31 December 2021 233.238 5.083.364 259.106 29,290 5.604,998 Depreclatlon Al 1 January 2021 Charge for year Disposals At 31 December 2021 1.036.681 233.474 29.2 1,299.445 117.488 104,114 13,374 1.140,795 246,848 29,290 1.416,933 Net book valu• At 31 December 2021 233.238 3.942,569 12,258 4.188,065 At 31 December 2020 158.429 4.046,683 18,2T7 4,223,389 21
The Cote Charity Notes to the financial statements for the year ended 31 December 2021 Fixed asset investments Total Cost At 1 January and 31 December 2021 Revaluatlons 165,890 Unrealised gains at 1 January 2021 Nel gain arising on revalualK Unrealised gains at 31 December 2021 Net book value 171,330 22,697 194,027 At 31 December 2021 359.917 Al 31 December 2020 337,220 All investments are hdd in the Merchant Ventur8rs' Charities Investment Pool, which was structured as follows at 31 December 2021-. Investment assets in the UK 37.6 Investment assets outside the UK 43.2 Alternatives & Mulli-Assel 18.0 Cash 100.0 Debtors 2021 2020 Rents and fees 11.924 28,575 40,499 1,592 24,983 26.575 Other debtors and prepaymenls 22
The Cote Charity Notes to the financial statements for the year ended 31 December 2021 10 Creditors: amounts falling due within one year 2021 2020 Trade creditors 69.439 66,148 Other taxes and social securily costs Other creditors 20.479 22,098 54,068 77.638 Accruals 8S.304 38.440 60,807 11,505 Covid-19 Grant Bank loan 61,314 291.300 275,940 11 Creditors: amounts falling due after more than one year 2021 2020 Age analysis of bank loan Due within one year Due after more than one year. Behmeen one and two years Between two arKI five years More Ihan five years Total due after more than one year Total 61,314 61,314 The Charity had a loan with Nalwesl Bank wilh 3 balance of £nil al 31 December 2021 (£61,314 al 31 December 20201. which was secured on 19 Cole Paddock. The interest rate wa5 1.60/9 over base rate and there was a capital repayment holiday until February 2018. The final repaymenl was made in Augvsl 2021. 23
The Cote Charity Notes to the financial statements for the year ended 31 December 2021 12 Funds Balance al 1 January 2021 Transfers Balance at between 31 December funds 2021 Incoming Resourc8S resources expended Investment Gains Unrestricted General fund 2,144,020 1,645.121 (1.821.322) 22.697 1,990.516 Restrlcted Staff fund 52 2.218 {2.368) (981 Katherine House amenity fund Katherine House building fund Grrffiths House amenity fund Residents Personal lowances 14.367 745 {1.115) 13,997 155.674 118.090) 137.584 1.139 70 1656) 553 70 450 520 Covid-19 Grant 50.025 (50,025) Griffilhs House building fund Total Restrict•d 50.WO 50.000 221.302 53.508 {72.2541 202,556 Permanent ondowment 3.211.673 {71.734) 1,698.629 11.965.310) 3.139.939 Total 5.576,995 22,697 5.333.011 The General fund indudes £194.02712020." £171.330) relaliNJ to unrealised gans in the value of fixed asset investments. The Staff fund represents donalK)ns given lo the Charity for the benefit of staff. The Katherine House enity fvnd represents donalM)ns given to the Charity f the benefit of the residents al Katherine House. The Katherine House lIdIng furKI represents donatk)ns t(wffjrds Ihe cost of building Katherine House nel of related depreryaIn. The Grrffiths House amenity fvjnd represents donations gNen lo the ChtY for the benefii of residents al Grrffilhs House. The Grrffiths House buildwu fund rewesents donatnS Icwar(Is the cost of bUdIr0 Grrffiths House nel of related deprecialK)n. The Permanent endcywmenl fund rewesenls part of the &nd EildIJS of Ihe Charity net of year end bank loan and depreck8tion. The Covid-19 Grant represents SI121 fundiThJ provKled by the Local Authority lo hdp the charrty with ils response lo the pandemic and was Utiled in line Nwth ConditnS specified. Any unulilised funds al the e1 of the grant term will be returned in accordance wlh the rKlItiOnS of fvThYing. 24
The Cote Charity Notes to the financial statements for the year ended 31 December 2021 13 Analysis of funds balance Permanent endowment Unregtrlctod Restrlcted Total Fixed assets 860.543 359.917 770.056 187.583 3,139.939 4.188,065 359,917 Fixed asset investments Nel current assets 14.973 785,029 Long term cre(Silors Net assets 1..516 202.556 3.139.939 5,333,011 14 Transactions with related parties So¢lety of Merchant Venturers The Charity irKurred a charge for the realocation of salaries and OVertad$ of£51.82612020.. £49,107) from the Society of Merchant Venturers, lo cover the services il provides in relation lo the management and administralw)n of the Chwity, of whth £nl12020". £nil) was ¢JJtstanding al end. Merchant Venturèrs. Charitios Investment Pool IMVCIP) SMV Trustee Company Limited ts the Trustee of MVCIP and the ultimate controlling paty of The Cole Charity. For details of inveslments hdd and income receNed from MVCIP S Mles 1 and 8. At 31 December 2021 £2.776 was ¢JJtstaThSiThJ from MVCIP12020.. £2.4601. 15 Connected charities The Society of Merchant Venturers. Almshouses Charity {Regislered Charity Number 2021521 is a connected charity under the definition ol the Charilies. SORP 2019 as it has the same Trustee as The Cole Charity. Further information can be obtained from Ihe Charities, registered adéress detailed on page 1 of the Trustee's repori. The Cole Charity made a charge of £4.60412020.' £4.569) for the services of the Colslon's Almshouse Manager and a charge of £5.411 for a maintenance officer {2020.. £5,377110 the SMV Almshouses Charity. Al 31 December 2021 £nil (2020.. £2.4871 was owing by the SMV Almshouses Charity to the Cole Charity relating lo these serwices. The SMV Almshouses Charily provided the Serv of a ChaaIn lo The Cole Charity al a cost of £275 {2020.' £5871 of which £13812020. £nill was (yjlslanding al 31 December 2021. 25
The Cote Charity 16 Analysis of changes in net debt At 1 January 2021 At 31 December 2021 Cash flow Cash and ¢ash equivalents Cash 1.265.751 1,265,751 -1229.920 1229,920} 1 035 831 1.035.831 Borrowlng5 Debt due within one year Debt due after one year (61,314) 61.314 Total 1,204.437 1168,6061 1,035,831 26