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2021-03-31-accounts

Penrice House (St Austell) Limited (Limited by Guarantee)

Annual report and financial statements For the year ended 31 March 2021

Company registration number 01475148 Charity registration number 280039

Penrice House (St Austell) Limited (Limited by Guarantee)

Contents

Page
Trustees’ annual report 1 - 6
Independent auditors’ report 7 - 10
Statement of financial activities 11
Balance sheet 12
Cash flow statement 13
Notes 14 - 24

Penrice House (St Austell) Limited (Limited by Guarantee)

Trustees’ annual report

For the year ended 31 March 2021

The Trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 March 2021 which are also prepared to meet the requirements for a director’s report and financial statements for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard 102.

Reference and administrative details

Registered name Penrice House (St Austell) Limited Company registration number 01475148 Charity registration number 280039

Trustees

The following Trustees constitute directors of the company for the purpose of the Companies Act 2006 at the year end:

Mr PG Snell #§ (Chair) Mr AP Tregilgas * (Vice Chair) Dr PB Foster † Dr R Bown *§ Mrs LB Sampson† (Vice Chair) Mr DS Boardman * Mrs MK Bawden † (Resigned 3 April 2020) Mr A Bawden § (Resigned 3 April 2020) Mrs J Burden

* Member of Finance Committee

The Trustees retiring by rotation in accordance with Articles 29 and 30 of the Company’s Memorandum and Articles of Association, at the 2021 Annual General Meeting of Members will be P Snell, and Mrs J Burden. These Trustees, being eligible, offer themselves for re-election.

1

Penrice House (St Austell) Limited (Limited by Guarantee)

Trustees’ annual report

For the year ended 31 March 2021

Officers

Company Secretary Alison Phillips (resigned 30 April 2020)
Jonathan Childs (appointed 18 January 2021)
Business Manager Jonathan Childs (appointed 18 January 2021)
Care Manager Clare Rowe-Hall
Principal address of the charity Penrice House
Porthpean
ST AUSTELL
Cornwall
PL26 6AZ
Bankers National Westminster Bank Plc
1 Church Street
ST AUSTELL
Cornwall
PL25 4AW
Solicitors – property matters Coodes LLP
St Austell Business Park
Carclaze
ST AUSTELL
Cornwall
PL25 4FD
Solicitors – other matters Stephens Scown LLP
1 High Cross Lane
ST AUSTELL
Cornwall
PL25 4AB
Auditors RRL LLP
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
Investment advisers Investec Investments
2 Gresham Street
LONDON
EC2V 7QN

2

Penrice House (St Austell) Limited (Limited by Guarantee)

Trustees’ annual report

For the year ended 31 March 2021

Structure, governance and management

Governing document

Penrice House (St Austell) Limited is incorporated as a company limited by guarantee and not having a share capital. In accordance with the company’s Memorandum and Articles of Association, adopted by Special Resolution on 24 July 2001, each member is liable to contribute no more than £10 in the event of the company being wound up or dissolved. The main property (Penrice House) remaining after the settlement of all liabilities will be given or transferred to the National Trust for places of Historic Interest or Natural Beauty and if that cannot be done to some other charitable object chosen by the members of the charity.

There were 9 members at 31 March 2021 (2020: 11).

Recruitment and induction of Trustees

The business of the charity is managed by the Trustees. The Trustees may at any time appoint as a Trustee any eligible individual either to fill a casual vacancy or as an additional Trustee. Such appointment is effective only until the next Annual General Meeting but the appointee will then be eligible for election. At each Annual General Meeting the number nearest to one-third of the Trustees retires from office and is eligible for re-election. The Trustees to retire are those who have been longest in office since their last election.

Newly appointed Trustees are provided with copies of the charity financial statements, brochure and Memorandum and Articles of Association. Guidance on the charity’s ethos and activities is provided by the Chair and Company Secretary.

Risk management

The Trustees have considered the major strategic, business and operational risks to which the charity is exposed and systems have been established to mitigate those risks. Each committee is responsible for monitoring risk strategies for their specific area and risk plans are regularly reviewed.

Pay policy for senior staff

The Trustees set the remuneration for senior staff and review this annually at the same time as the annual cost of living pay award for staff. The review takes into account the need to retain and motivate key staff and recognise individual and overall performance as well as the wider staff pay award and affordability. Salaries are benchmarked against local competitors and factors other than pay, such as development opportunities, are taken into consideration.

Pay awards agreed for senior staff and the wider staff take effect from 1 April in each year.

3

Penrice House (St Austell) Limited (Limited by Guarantee)

Trustees’ annual report

For the year ended 31 March 2021

Objectives and activities

Charitable objects

The charity’s objects are to operate a home for the elderly with or without provision for the elderly when they are sick or infirm.

In setting objectives and planning the activities of the Home the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and supplementary guidance on fee charging.

Whilst Penrice House welcomes both private and publically funded residents, it benefits from the Fred Lovering Assistance Fund which is used to support residents who are in financial need.

Principal activities of the year

The charity is principally engaged in the operation of a home for the elderly at Penrice House, Porthpean, St Austell which is registered for 29 residents under the Registered Homes Act 1984.

The business of the charity is managed by the Trustees who meet at least four times each calendar year. A number of sub-committees have been established with specific responsibilities and the day-today management of the Home is undertaken by the Care Manager. There has been no significant change in the activities of the charity during the year other than those necessitated by the threat of Covid-19. In particular, no new residents have been admitted since before March 2020, whilst Daycare and visiting has been suspended.

All of our charitable activities focus on the provision of care to the elderly and are undertaken to further our charitable purposes for the public benefit.

Achievements and performance

The Trustees are committed to ensuring that residents at Penrice House receive high quality care in a comfortable environment. During the year staff training and development has continued to ensure that residents are well supported by trained and professional staff. A programme of redecoration and refurbishment of the house has continued this year to ensure that the Home remains a comfortable and pleasant environment for residents, staff and visitors to enjoy.

Residents are encouraged to become involved in local community events and the charity has arranged regular trips for all its residents including visits to local garden centres and cafes. Members of the local community are invited to attend events at the Home, for example fayres. The Home also arranges a wide variety of activities for residents including craft, music and cooking activities and trips around the grounds in the Home’s golf buggy.

Unfortunately, the threat of Covid-19 in March 2020 resulted in excursions off site being abandoned and activities which it is not practical to hold outdoors have been restricted to in-house games and crafts, often organised by members of staff.

Residents’ meetings take place monthly with feedback included in the monthly newsletter in addition to the minutes of these meetings. In addition the Trustees meet with staff and residents and their families regularly. Requests and suggestions from residents, staff and others are carefully considered by the Trustees and supported whenever reasonably possible.

4

Penrice House (St Austell) Limited (Limited by Guarantee)

Trustees’ annual report

For the year ended 31 March 2021

Plans for future periods

The Trustees will continue to focus on providing the highest levels of care for residents at Penrice House. This includes investing in staff development but also in maintaining and improving the house and its facilities. In 2021-22 there will be a particular focus on technology and updating these systems to provide WiFi for the benefit of all residents and to support a move towards paper light administration of the home.

Auditors

A resolution for the re-appointment of RRL LLP as auditors of the charity is to be proposed at the forthcoming Annual General Meeting.

Reserves policy

In order that the charity can meet its objective of managing and operating a home for elderly people the Trustees have considered its resources and commitments. The charity is responsible for the maintenance of Penrice House and its surroundings. As this is a Grade II* listed historic building, the Trustees consider that significant reserves need to be accumulated in the event of any major maintenance being required. Furthermore, with regard to funding the annual charitable expenditure, the charity is reliant on obtaining full occupancy of its residential accommodation and must therefore establish reserves in the event that this is not achieved in any year.

Investment policy and objectives

The Trustees review their policy for investing funds regularly. Investment returns on term deposits had historically provided above inflation returns, with the changing economic climate, however, the Trustees felt that this was unlikely to remain the case and sought ways of mitigating against declining investment income. Accordingly following extensive research and careful consideration Investec investment managers, were appointed for limited funds adopting a cautious investment policy. These investments have provided a healthy return and accordingly the Board has now placed further deposits with Investec. At 31 March 2021 a total of £2,399,416 was invested with Investec (2020: £1,213,605).

Given the possible development of the stable buildings and the Trustees’ commitment to continue to invest in improvements to the house the Board is comfortable with the current level of investments.

5

Penrice House (St Austell) Limited (Limited by Guarantee)

Trustees’ annual report

For the year ended 31 March 2021

Trustees’ responsibilities

The Trustees (who are also directors for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006 and the Charities Act 2011. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as the Trustees are aware, there is no relevant audit information of which the charity’s auditors are unaware. Additionally, the Trustees have taken all the necessary steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.

This report has been prepared in accordance with the special provision in part 15 of the Companies Act 2006 relating to small companies.

By order of the Trustees Penrice House Porthpean ST AUSTELL Cornwall PL26 3AZ AP Tregilgas 21 July 2021 Trustee

6

Penrice House (St Austell) Limited (Limited by Guarantee)

Independent auditors’ report

to the members of Penrice House (St Austell) Limited (Limited by Guarantee)

Opinion

We have audited the financial statements of Penrice House (St Austell) Limited (Limited by Guarantee) (the ‘charitable company’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet and Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

7

Penrice House (St Austell) Limited (Limited by Guarantee)

Independent auditors’ report

to the members of Penrice House (St Austell) Limited (Limited by Guarantee)

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

8

Penrice House (St Austell) Limited (Limited by Guarantee)

Independent auditors’ report

to the members of Penrice House (St Austell) Limited (Limited by Guarantee)

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

We also communicate relevant identified laws and regulations and potential fraud risk to all engagement team members and remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

9

Penrice House (St Austell) Limited (Limited by Guarantee)

Independent auditors’ report

to the members of Penrice House (St Austell) Limited (Limited by Guarantee)

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Williams FCA DChA (Senior Statutory Auditor)

For and on behalf of RRL LLP

Chartered Accountants Statutory Auditor

Peat House Newham Road TRURO Cornwall TR1 2DP

26 July 2021

10

Penrice House (St Austell) Limited (Limited by Guarantee)

Statement of financial activities (incorporating income and expenditure account) For the year ended 31 March 2021

Notes
Restricted
funds
Unrestricted
funds
£
£
Income from:
Donations and legacies
2
109
75,387
Investment income
3
3,933
58,320
Income from charitable activities:
Residents’ fees
4
-
798,498
Other income
6
-
29,561
_
________
Total income
4,042
961,766
_
_
Expenditure on:
_Costs of raising funds
Investment management costs
-
14,975
Rental expenses
5
-
7,766
Expenditure on charitable activities
Residential care costs
7
682
957,407
_
________
Total expenditure
682
980,148
_
_
Net income/(expenditure) for the
year before investment gains
_9
3,360
(18,382)
Gains/(losses) on investments
(1,342)
416,797
Gains on revaluation of
investment properties
-
-

Net income for the year and net
movement in funds
2,018
398,415
Reconciliation of funds
Fund balances brought forward
324,946
3,513,905
_
_
Fund balances carried forward
326,964
3,912,320		 Total
2021
£
75,496
62,253
798,498
29,561
_
965,808
_
14,975
7,766
958,089
_
980,830
_
(15,022)
415,455
-
400,433
3,838,851
__
4,239,284		 Total
2020
£
3,523
82,837
877,768
34,414
_
998,542
_
12,360
7,494
947,162
_
967,016
_
31,526
(127,047)
225,000

129,479
3,709,372
__
3,838,851

The charity has no recognised gains or losses other than those passing through the statement of financial activities. There were no acquisitions or discontinued operations within the charity during the year to 31 March 2021 or 2020.

11

Penrice House (St Austell) Limited (Limited by Guarantee)

Balance sheet

As at 31 March 2021

Notes
£
Fixed assets
Tangible assets
11
Investments
12
Current assets
Stock
13
878
Debtors
14
27,789
Cash at bank and in hand
284,470
__
313,137
Creditors: amounts falling due
within one year
15
(58,198)
__
Net current assets
Net assets
The funds of the charity:
Restricted
16
Unrestricted - Designated funds
17
- General funds
17
- Revaluation reserve
17
Total charity funds
18		 2021
£
£
1,068,256
2,916,089
__
3,984,345
865
37,368
137,470
_
175,703
(63,308)
_
254,939
__
4,239,284

326,964
550,000
2,155,072
1,207,248
__
4,239,284
 2020
£
1,096,664
2,629,792
_
3,726,456
112,395
_
3,838,851

324,946
550,000
2,085,446
878,459
__
3,838,851

These financial statements are prepared in accordance with special provisions of Part 15 of the Companies Act relating to small companies. They constitute the annual financial statements required by the Companies Act 2006 and are for circulation to the members of the company.

AP Tregilgas Trustee

Approved by the trustees on 21 July 2021

Company registration No. 01475148

12

Penrice House (St Austell) Limited (Limited by Guarantee)

Cash flow statement

For the year ended 31 March 2021
2021
£
£
£
Net cash outflow from operating activities
(23,189)
Cash flows from investing activities
Dividends, interest and rent from investments
62,253
82,837
Proceeds from the sale of:
Fixed asset investments
1,406,174
10,000
Purchase of:
Tangible fixed assets
(21,222)
(50,350)
Fixed asset investments
(1,277,016)
(27,948)
__
__
Net cash provided by investing activities
170,189
__
Change in cash and cash equivalents in the reporting period
147,000
Cash and cash equivalents at 1 April 2020
137,470
__
Cash and cash equivalents at 31 March 2021
284,470

Reconciliation of net movements in funds to net cash flow from operating activities
£
Net movement in funds
(15,022)
Adjustments for
Depreciation charges
49,630
Dividends, interest and rent from investments
(62,253)
Increase in stock
(13)
Decrease/(increase) in debtors
9,579
(Decrease)/increase in creditors
(5,110)
__
Net cash outflow from operating activities
(23,189)

Analysis of cash and cash equivalents
Cash in hand
284,470
 2020
£
(3,093)
14,539
_
11,446
126,024
_
137,470

£
31,526
42,699
(82,837)
(59)
(6,940)
12,518
__
(3,093)

137,470

13

Penrice House (St Austell) Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

1.1 Basis of preparation

Penrice House (St Austell) Limited (Limited by Guarantee) is a company limited by guarantee incorporated in England and Wales. The registered office is Penrice House, Porthpean, ST AUSTELL, Cornwall, PL26 6AZ. The liability of each member in the event of winding up is limited to £10.

Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. The charity is a Public Benefit Entity as defined by FRS 102.

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 Incoming resources

All incoming resources are included in the statement of financial activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. For grants, income is recognised in the statement of financial activities when receivable.

1.3 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headlines:

1.4 Tangible fixed assets and depreciation

Penrice House and any subsequent improvements to the property have not been capitalised on the basis that they represent an historical and inalienable asset. Details are given in note 11.2.

Depreciation is provided to write off the cost less the estimated residual value of the charity’s fixed assets over their estimated useful economic lives at the following rates:

Freehold building improvements 50 years
Motor vehicles 5 years
Plant and equipment 20% - 100%
Biomass boiler 10 years
Fixtures and fittings 5 years

Assets costing £500 or less are written off to the statement of financial activities in the period in which they are acquired.

14

Penrice House (St Austell) Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

1.5 Fixed asset investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Charity does not acquire put options, derivatives or other complex financial instruments.

1.6 Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

1.7 Stocks

Stocks are valued at the lower of cost and net realisable value.

1.8 Debtors

Trade debtors and accrued income are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.

1.9 Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.10 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.11 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of other loans which are subsequently measured at the carrying value plus accrued interest less repayments. The financing charge to expenditure is at a constant rate calculated using the effective interest method.

1.12 Pensions

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The amount charged against profits represents the contributions payable to the scheme in respect of the accounting period.

1.13 Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

15

Penrice House (St Austell) Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

1.14 Funds structure

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

1.15 Investment properties

Investment properties are included in the balance sheet at their open market value and revalued annually by the Trustees with the aggregate surplus or deficit transferred to a revaluation reserve. No depreciation is provided in respect of investment properties. During 2020 the investment properties were revalued by an external valuer. See note 11.3.

2 Donations and legacies

Restricted Unrestricted
£
£
Donations
109
1,000
Infection control grant
-
47,154
Furlough grant
-
19,879
Rapid testing fund grant
-
7,354
_
_
109
75,387

 Restricted
2021
£
2020
£
1,109
3,523
47,154
-
19,879
-
7,354
-
__
__
75,496
3,523

HMRC grants have been received totalling £19,879 (2020: £Nil) to help with the furloughed staff whilst in a nationwide lockdown due to COVID-19.

Infection control and Rapid testing fund grants have been received totalling £54,508 (2020: £Nil) to help support adult social care providers whilst in a national lockdown due to COVID-19.

3 Investment income

UK bank and other deposit interest
Dividend and other income (from Investec)
Rental income (see note 5)		 Restricted
£
Unrestricted
£
3,933
7,968
-
25,331
-
25,021
_
_
3,933
58,320

 2021
£
11,901
25,331
25,021
__
62,253		 2020
£
26,593
29,682
26,562
__
82,837

Investment income of £62,253 was received (2020: £82,837), of this £58,320 was unrestricted (2020: £75,363) and £3,933 was restricted (2020: £7,474).

16

Penrice House (St Austell) Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

4 Income from charitable activities

ncome from charitable activities
Unrestricted Unrestricted
2021 2020
£ £
Residents’ fees 798,498
 877,768
Rental income and expenses
Unrestricted Unrestricted
2021 2020
£ £
Rent receivable 25,021 26,562
Less: rental property repairs, refurbishment and expenses (7,766) (7,494)
__ __
17,255
 19,068
Other income
Unrestricted Unrestricted
2021 2020
£ £
Renewable heating incentive 27,503 32,784
Sale of timber 1,600 1,630
Other income 458 -
__ __
29,561
 34,414

17

Penrice House (St Austell) Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

7 Expenditure on charitable activities

Expenditure on charitable activities
Restricted Unrestricted 2021 2020
£ £ £ £
Residential care costs
Staff costs - 653,342 653,342 591,290
Food - 45,339 45,339 60,165
Staff clothing and training - 6,644 6,644 8,202
Household sundries 682 33,928 34,610 24,974
Heating and electricity - 50,161 50,161 53,428
Repairs and renewals to Penrice House
(incl. woodland management) - 49,804 49,804 112,216
Insurance - 15,188 15,188 14,304
Motor expenses - 2,282 2,282 2,554
Water rates and council tax - 5,762 5,762 5,644
Depreciation - 49,630 49,630 42,699
Subscriptions - 5,195 5,195 5,336
Support costs (see note 8) - 34,765 34,765 17,975
Governance costs (see note 8) - 5,367 5,367 8,375
_ __ __ __
682 957,407 958,089 947,162

Expenditure on charitable activities was £958,089 (2020: £947,162), of this £657,407 was unrestricted (2020: £939,970) and £682 was restricted (2020: £7,192).

8 Analysis of support and governance costs

Support costs
Advertising
Telephone
Printing, stationery and postage
Bookkeeping and accountancy
Bank charges
Legal and consultancy fees
Governance costs
Auditors remuneration - audit
Secretary’s honorarium		 2021
£
739
4,933
4,872
8,688
943
14,590
__
34,765
4,680
687
__
5,367		 2020
£
297
3,490
5,246
6,922
868
1,152
_
17,975

4,200
4,175
_
8,375

18

Penrice House (St Austell) Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

9 Net income for the year

Net income for the year is stated after charging:
Depreciation
Staff costs:
Wages and salaries
Social security costs
Pension costs
 2021
£
49,630

604,466
38,855
10,021
__
653,342		 2020
£
42,699

545,585
36,722
8,983
__
591,290

No employee earned more than £60,000 per annum.

The total remuneration benefits of key management personnel for the year was £60,808 (2020: £51,458).

The average number of persons employed during the year was as follows:

2021
34
 2020
36

10 Taxation

The company is a registered charity and as such is exempt from taxation on its income and capital gains.

19

Penrice House (St Austell) Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

11 Tangible assets

11.1 Tangible fixed assets

Investment
properties
£
Cost/valuation
At 1 April 2020
825,000
Additions
-
_
At 31 March 2021
825,000
_
Depreciation
At 1 April 2020
-
Charge for the year
-
_
At 31 March 2021
-
_
Net book value
At 31 March 2021
825,000
At 31 March 2020
825,000		 Freehold
land and
buildings
£
129,640
-
_
129,640
_
18,151
2,593
_
20,744
_
108,896
111,489		 Motor
vehicles
Plant and
equipment
£
£
29,495
372,805
-
21,222
_
_
29,495
394,027
_
_
20,646
224,084
5,899
39,402
_
_
26,545
263,486
_
_
2,950
130,541

8,849
148,721		 Fixtures
and
fittings
£
8,681
-
_
8,681
_
6,076
1,736
_
7,812
_
869

2,605		 Total
£
1,365,621
21,222
_
1,386,843
_
268,957
49,630
_
318,587
_
1,068,256
1,096,664

11.2 Freehold land and building

A nominal value of £1 has been placed on the property known as Penrice House by the Trustees on the basis that they believe it cannot be disposed of because this would be contrary to the original bequest. The property is a large Grade II* listed early Georgian historic building set in grounds of approximately 76 acres and is used for the charity’s primary objective, being registered for the occupation of 29 elderly residents.

The property is insured for £6.7 million.

11.3 Investment properties

The investment properties were revalued on 31 March 2020 by Lewis & Co, professional valuers, on an open market basis, and by the trustees at 31 March 2021.

No depreciation is provided in respect of these properties.

The historical cost of the investment properties is £Nil.

12 Investments

nvestments
2021 2020
£ £
Deposit accounts 516,673 1,416,187
Other investments 2,399,416 1,213,605
__ __
2,916,089 2,629,792

20

Penrice House (St Austell) Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

12 Investments (continued)

Investments (continued)
Other
investments
£
At 1 April 2020 1,213,605
Additions at cost 1,277,016
Disposals (406,575)
Revaluation 315,370
__
At 31 March 2021 2,399,416

Other investments comprise the following:

Investments at market value
Fixed interest
UK equities
Overseas equities
Property
Alternative assets
Other

Deposit accounts
National Savings Income Bonds
Secure Trust Bank
Redwood Bank
Hampshire Trust Bank
Shawbrook Bank
Cambridge & Counties Bank
United Trust Bank
Buckinghamshire Building Society
Charity Bank		 Restricted
Cost
£
2021
£
44,827
44,186
66,273
67,411
138,357
136,422
6,152
6,031
40,158
40,197
4,411
4,411
__
__
300,178
298,658
 Unrestricted
Cost
£
2021
£
275,673
286,566
461,265
568,664
655,765
890,212
40,940
44,191
236,725
263,741
46,622
47,384
__
__
1,716,990
2,100,758


2021
£
1,000
-
87,900
86,957
-
85,671
85,109
85,036
85,000
__
516,673		 2020
£
207,079
309,913
471,426
20,319
144,414
60,454
_
1,213,605

2020
£
610,000
461,546
86,829
85,598
86,540
85,674
-
-
-
_
1,416,187

The cost of investments at 31 March 2021 was £2,533,841 (2020: £2,576,333).

21

Penrice House (St Austell) Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

12 Investments (continued)

Investec
National Savings Income Bonds
Redwood Bank
Hampshire Trust Bank
Cambridge & Counties Bank
United Trust Bank
Buckinghamshire Building Society
Charity Bank
13
Stock
Consumables
14
Debtors
Trade and other debtors
Prepayments
Accrued income
15
Creditors: amounts falling due within one year
Trade creditors
Taxation and social security
Accruals		 Value
£
2,399,416
1,000
87,900
86,957
85,671
85,109
85,036
85,000
__
2,916,089
2021
£
878

2021
£
21,981
3,808
2,000
__
27,789
2021
£
26,601
10,967
20,630
__

58,198		 Cost
£
2,017,168
1,000
85,000
85,000
85,000
85,000
85,000
85,000
_
2,528,168

2020
£
865

2020
£
15,770
3,252
18,346
_
37,368
2020
£
44,578
-
18,730
__
63,308

22

Penrice House (St Austell) Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

16 Restricted funds - 2021

Restricted funds - 2021
Brought Carried
forward Income Expenditure Loss forward
£ £ £ £ £
The Fred Lovering Assistance Fund 316,524 3,933 - (1,342) 319,115
Amenity fund - bank account 7,688 60 - - 7,748
- petty cash 734 49 (682) - 101
__ __ __ __ __
324,946 4,042 (682) (1,342) 326,964

The Fred Lovering Assistance Fund consists of one half of a donation received from Fred Loverings House on their winding up and is to be used to support residents of Penrice House who are in financial need. A transfer of £Nil (2020: £127) was made to general reserves for this purpose.

The amenity fund consists of income held to benefit residents at Penrice House.

Restricted funds - 2020

The Fred Lovering Assistance Fund
Amenity fund
- bank account
- petty cash
Unrestricted funds – 2021
Brought
forward
£
Designated fund:
Extraordinary
repairs fund
550,000
General fund
2,085,446
Revaluation
reserve
878,459
___
3,513,905
 Brought
forward
Income
Expenditure
£
£
£
309,177
7,474
-
11,919
2,378
(3,909)
172
1,145
(3,283)
_
_
_
321,268
10,997
(7,192)


Income
Expenditure
Revaluation
(losses)/gains
£
£
£
-
-
-
961,766
(980,148)
416,797
-
-
-
_
_
_
961,766
(980,148)
416,797
Transfer
£
(127)
(2,700)
2,700
_
(127)

Transfer
£
-
(328,789)
328,789
_
_
-		 Carried
forward
£
316,524
7,688
734
__
324,946

Carried
forward
£
550,000
2,155,072
1,207,248
__
3,912,320
 Carried
forward
£
316,524
7,688
734
_
324,946

17 Unrestricted funds – 2021

The designated fund is held in order to ensure that sufficient funds will be available to meet major unexpected repair costs to Penrice House and its grounds in future years.

23

Penrice House (St Austell) Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

Unrestricted funds – 2020

Brought
forward
Income
£
£
Designated fund:
Extraordinary
repairs fund
550,000
-
General fund
2,027,676
987,545
Revaluation
reserve
810,428
-
___
__
3,388,104
987,545

Analysis of net assets between funds - 2021
Fixed assets
Current assets
Current liabilities
Analysis of net assets between funds - 2020
Fixed assets
Current assets
Current liabilities		 Expenditure
Revaluation
gains
Transfer
£
£
£
-
-
-
(959,824)
(127,047)
157,096
-
225,000
(156,969)
_
________
________

(959,824)
97,953
127


Restricted
fund
Designated
fund
Unrestricted
fund
£
£
£
319,115
550,000
3,115,230
7,849
-
305,288
-
-
(58,198)
_
_
_
326,964
550,000
3,362,320


Restricted
fund
Designated
fund
Unrestricted
fund
£
£
£
316,524
550,000
2,859,932
8,422
-
167,281
-
-
(63,308)
_
_
_
324,946
550,000
2,963,905

 Carried
forward
£
550,000
2,085,446
878,459
_
3,513,905

Total
£
3,984,345
313,137
(58,198)
__
4,239,284
Total
£
3,726,456
175,703
(63,308)
_
3,838,851

18 Analysis of net assets between funds - 2021

Analysis of net assets between funds - 2020

19 Pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the fund and amounted to £10,021 (2020: £8,983). There were no outstanding or prepaid contributions at either the beginning or end of the financial year.

20 Emoluments of Trustees

No Trustees received any remuneration or expenses during the year or preceding year.

21 Related party transactions

An officer of the charity had a relative who resided at the home during the year. The total fee income from this resident was £Nil (2020: £29,046). There was a balance outstanding at the year-end of £Nil (2020: £Nil).

24

Penrice House (St Austell) Limited (Limited by Guarantee)

Income and expenditure account

For the year ended 31 March 2021

£
Income from residents’ fees
Less expenditure
Salaries and wages
653,342
Food
45,339
Staff clothing and training
6,644
Household sundries
34,610
Heating and electricity
50,161
Improvements, repairs and renewals to
Penrice House
49,804
Insurance
15,188
Motor expenses
2,282
Recruitment advertising
739
Telephone
4,933
Printing, stationery and postage
4,872
Water rates and council tax
5,762
Secretary’s honoraria
687
Bookkeeping and accountancy
8,688
Audit fee
4,680
Subscriptions
5,195
Depreciation
49,630
Legal and professional fees
14,590
__
Deficit on operations
Other income and expenditure
Bequests/Donations
1,109
Income from events
-
Bank and other deposit interest
37,232
Renewable heating incentive
27,503
Furlough and infection control grants
74,387
Rent receivable
25,021
Rental property repairs and expenses
(including Lobbs Shop Cottage)
(7,766)
Investment management costs
(14,975)
Bank charges
(943)
Sale of timber
1,600
Other income
458
__
Deficit/(surplus) for the year
Gains/(losses) on investments
Gains on revaluation of investment properties
Net increase in funds		 2021
£
£
798,498
591,290
60,165
8,202
24,974
53,428
112,216
14,304
2,554
297
3,490
5,246
5,644
4,175
6,922
4,200
5,336
42,699
1,152
_
(957,146)
__
(158,648)
2,098
1,425
56,275
32,784
-
26,562
(7,494)
(12,360)
(868)
1,630
-
_
143,626
__
(15,022)
415,455
-
__
400,433
 2020
£
877,768
(946,294)
_
(68,526)
100,052
_
31,526
(127,047)
225,000
__
129,479

25

Penrice House (St Austell) Limited (Limited by Guarantee)

Schedules to the financial statements

Total Total
Cost per expenditure Cost per expenditure
resident per to 31 March resident per to 31 March
day 2021 day 2020
£ £ £ £
Salaries and wages 77.83 653,342 59.84 591,290
Food 5.40 45,339 6.09 60,165
Staff clothing and training 0.79 6,644 0.83 8,202
Household sundries 4.12 34,610 2.53 24,974
Heating and electricity 5.98 50,161 5.41 53,428
Improvements, repairs and
renewals 5.93 49,804 11.35 112,216
Insurance 1.81 15,188 1.44 14,304
Motor expenses 0.27 2,282 0.26 2,554
Advertising 0.09 739 0.03 297
Telephone 0.59 4,933 0.35 3,490
Printing, stationery and postage 0.58 4,872 0.53 5,246
Water rates and council tax 0.68 5,762 0.57 5,644
Secretary’s Honoraria 0.08 687 0.42 4,175
Bookkeeping and accountancy 1.03 8,688 0.70 6,922
Audit fee 0.56 4,680 0.43 4,200
Depreciation 5.91 49,630 4.32 42,699
Legal and professional 1.74 14,590 0.12 1,152
Subscriptions 0.62 5,195
 0.54 5,336
114.01 957,146 95.76 946,294

Average number of residents is 23 (2020: 27) (includes respite care and short stays but excludes day care on the basis that additional costs incurred are negligible).

Cost per resident per week is £798.07 (2020: £670.32).

26