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2021-09-30-accounts

Charity Registration No. 287479

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees C Fisher G Ford N Parry A White D Wood C Blackstone (Appointed 18 December 2020) A Lane (Appointed 3 March 2022) D Pouncey (Appointed 3 March 2022) Charity number 287479 Principal address Horsfall House Windmill Road Minchinhampton Gloucestershire GL6 9EY Auditor Azets Audit Services Epsilon House The Square Gloucester Business Park Gloucester United Kingdom GL3 4AD Bankers Lloyds Bank Plc 12 Rowcroft Stroud Gloucestershire GL5 3BD

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

CONTENTS

Page
Trustees' report 1 - 5
Independent auditor's report 6 - 9
Statement of financial activities 10
Group and charity balance sheet 12
Statement of cash flows 14
Notes to the financial statements 15 - 31

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

TRUSTEES' REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2021

The trustees present their report and financial statements for the year ended 30 September 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The charity’s principal object, in accordance with its constitution, continues to be the relief of the aged and disabled who are resident in and around Minchinhampton by the provision of facilities for rehabilitation, recreation and leisure time occupation.

Significant activities are pursued on behalf of the charity via its wholly owned subsidiary, Minchinhampton Centre for the Elderly Limited, including the provision of residential, domiciliary and day care to the elderly in the local community.

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

the charity should undertake.

The Group continued to support care in the community specifically through providing Home Care, a Day Centre which has been renamed after the Charity Founder Dr Chris Booth, and through residential care within the Nursing Care Home we operate. This latter activity is the principal activity of the charity ensuring support to those who cannot afford the full cost of residential nursing care. Specialist dementia care is a feature of our activities with dedicated and expert staff on duty twenty four hours a day. The Charity offers free respite through the provision of two dedicated beds which were occupied to the benefit of the local community throughout the year.

The purpose built Nursing Home has 44 beds, split evenly between General Nursing for the frail and elderly and Specialist Nursing for those with Dementia and other memory disorders. Along side this we can also offer:

Fundraising

The trustees have overseen various fundraising activities on behalf of the charity. These activities are of a continuing nature and contribute towards maintaining the charity on a sound financial footing.

The Charity's fundraising team provide support for all we do through various activities including a charity pop up shop and a range of events, both traditional and 'virtual' ones through the charity website with the aim of both raising money and involving the local community in the life of Horsfall House. Our fundraising is spearheaded by the Fundraising committee and coordinated by Duncan Wood.

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

Achievements and performance

The Group's staff are knowledgeable and highly trained allowing the charity to offer residents the required support and reassurance. Registered nurses are on duty 24 hours a day and all of the Care Assistants are trained to levels 2 & 3 in Health and Social Care.

The Group have a dedicated kitchen providing healthy, freshly cooked meals and able to cater for any dietary need. The Group undergo regulatory inspections of catering facilities by Environmental Health and have systematically maintained the highest level of Five Stars.

The Group continuously assesses and monitor outcomes for users of all services in order to implement changes or improvements. The Charity do this through annual satisfaction surveys and audits of:

The Group works closely with professional organisations to ensure that care is always in line with best

practice and best meets the interests and needs of our users.

Minchinhampton Centre for the Elderly Limited continues to maintain an overall ‘Good’ rating with Care Quality

Commission in both the care home and homecare services it provides.

During the year Covid 19 continued to have an impact on the Dr Booth Day Centre with the centre re-opening in May 2021 following closures for part of the year . Demand for the services that Horsfall House provides however is undiminished and since Covid 19 testing can be undertaken on new residents, allied to strict risk assessments, they are being accepted into the Home. This has meant Horsfall House was able to maintain a bed occupancy level of over 93%.

The opening value of the investment portfolio of £1,251,249 on 30 September 2020 compares with the closing value of the portfolio on 30 September 2021 of £1,452,396. Dividends and interest received from investments totalled £42,180 in the year (2020: £32,959).

Financial review

The Group made a surplus of £83,955 during the year. This is made up of a surplus in the parent charity of £174,235 and a deficit of £90,280 in the subsidiary charitable company, Minchinhampton Centre for the Elderly Limited. The parent charity surplus largely arose because of the dedicated successful work of the large number of people involved in fundraising activities.

Reserves

The trustees current policy is that unrestricted funds not committed or invested in tangible fixed assets (‘the free reserves’) should be between 3 and 6 months of the resources expended by the Group as a whole, which equates to between £750,000 and £1,501,000. At this level, the trustees feel that they would be able to continue the current activities of the Charity in the event of a significant drop in funding. It would obviously be necessary to consider how funding would be replaced or activities changed. At 30 September 2021 the free reserves amounted to £882,341.

The Trustee Act 2000 contains statutory powers enabling the trustees to delegate the investment management of the charity’s assets to an appropriately qualified investment advisor with discretionary management powers subject to a general policy prescribed by the trustees. The trustees’ present policy is that the charity’s funds should be invested in deposit accounts or such other financial instruments as preserve their capital value while earning such interest as is commensurate with the associated, minimal risk.

Surplus funds are placed on deposit with the bank insofar as they may be needed in the foreseeable future to cover the running costs for a period of several months. Funds over and above this are invested to produce a mixture of capital growth and income from low risk investments.

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

Risk factors

The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The external risks to funding are reduced by the diversification of the charity’s funding sources. Internal risks are minimised by the implementation of procedures for the authorisation of all transactions and projects. The trustees consider that by aiming to ensure a consistently high level of professionalism from a well trained staff reduces the risk of failure in the standard of care delivered. All procedures are periodically checked to ensure that they continue to meet the needs of the charity.

Procedures are in place to ensure compliance with Health and Safety for staff and residents. Control measures for risk management have been implemented by the charity to ensure that residents are not being put at unnecessary risk from harm or abuse.

The Trustees continue the policy of preserving the capital value in its investments but note that these investments may fall or rise in value dependent on market conditions at the time of valuation. The Trustees believe that by the use of an Investment Broker and a low risk portfolio the key risks faced by the Charity have been mitigated appropriately.

Going concern

The trustees have reviewed the reserves of the Charity and have given full consideration to the ongoing financial impact of the Covid 19 Coronavirus. We took a cautious step in not introducing new residents through the period that testing for the virus was unavailable. Demand for the services that Horsfall House provides is undiminished and now that we can undertake tests on new residents, allied to strict risk assessments, they are now being accepted into the Home.

The trustees consider that this combined with the high level of retained reserves represented in cash and investments the Charities have sufficient funds to maintain their working capital and accordingly it is appropriate to prepare the financial statements on a going concern basis.

Plans for future periods

The trustees intend to continue to improve the facilities within Horsfall House. The trustees will continue to place high importance on staff training and believe that, due to the training that has been carried out in recent years, the staff at Horsfall House offer a much higher level of expertise than is generally available in other care homes.

Structure, governance and management

The charity named was established in 1982 as an unincorporated association and registered with the Charity Commission on 20 July 1983. Its governing document is a constitution dated 20 June 1983, as amended on 20 October 1987, 25 March 1997, 19 April 2017 and varied by a scheme dated 9 March 1994.

The trustees who served during the year and up to the date of signature of the financial statements were: C Fisher

G Ford N Parry A White R Marlow (Resigned 18 December 2020) D Wood Lady de Clifford (Resigned 18 December 2020) C Blackstone (Appointed 18 December 2020) A Lane (Appointed 3 March 2022) D Pouncey (Appointed 3 March 2022)

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

Recruitment and appointment of Trustees

The trustees comprise ex-officio, elected and co-opted individuals. The ex-officio trustees comprise the Chairman, Vice Chairman and Treasurer of the charity, each of whom is appointed at the trustees meeting following each annual general meeting of the charity and is subject to annual reappointment. Elected trustees are elected at an annual general meeting; one third of the elected trustees are required to retire by rotation each year and (if they wish to do so) offer themselves for re-election. Co-opted trustees are co-opted as such by a majority of the trustees, and are subject to annual reappointment by the trustees.

All Trustees are briefed on their responsibilities as Trustees prior to their acceptance of the role.

Organisational structure

The board aims to have quarterly meetings and major decisions affecting the charity are passed on a majority vote of those present. The management accounts preparation is undertaken by an experienced management accountant and the accounts are presented at the board meeting.

Decisions taken at meetings are by simple majority of votes cast by those attending, with the Chairman having

the casting vote.

The trustees are responsible for providing training, where this is necessary, to new trustees so that they are properly equipped to fulfil their duties.

Relationship with related parties

During the year the charity provided £222,348 (2020 - Nil) to its subsidiary charitable company, Minchinhampton Centre for the Elderly Limited for giving financial support to residents of the Nursing Home who are unable to fund the full cost of their residential nursing care.

For administrative reasons the property comprising the land and buildings known as Horsfall House (together comprised in Land Registry Title Nos. GR132825, GR184300 and GR353447) was re-registered in the name of Minchinhampton Centre for the Elderly Limited and, pursuant to a Declaration of Trust dated 9 June 2011, is now held on trust for The Minchinhampton Centre for the Elderly (Charity number 287479) absolutely.

Accordingly, the property is included in the accounts of the Charity Group only and there is a annual rental charge raised to Minchinhampton Centre for The Elderly Limited that totalled to £146,824 for the year ended 30 September 2021 (2020: £140,238)

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

Statement of trustees' responsibilities

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales 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 charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

N Parry Trustee

Dated: 29 September 2022

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

Opinion

We have audited the financial statements of The Minchinhampton Centre for the Elderly (the ‘parent charity’) and its subsidiaries (the 'group') for the year ended 30 September 2021 which comprise the statement of financial activities, the group balance sheet, the parent charity balance sheet, the statement of cashflows and the notes to the accounts, 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 FRS 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees 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 group's and parent charity’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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

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

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

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

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

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

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Azets Audit Services

30 September 2022

Chartered Accountants Statutory Auditor

Epsilon House The Square Gloucester Business Park Gloucester United Kingdom GL3 4AD

Azets Audit Services is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 SEPTEMBER 2021

Unrestricted Unrestricted
funds funds
2021 2020
Notes £ £
Income from:
Donations and legacies 3 356,343 198,132
Charitable activities 6 2,929,713 3,280,193
Other trading activities 7 38,386 28,430
Investments 5 43,392 32,959
Total income 3,367,834 3,539,714
Expenditure on:
Raising funds 8 15,874 15,400
Charitable activities 9 3,442,927 3,648,465
Total resources expended 3,458,801 3,663,865
Net gains/(losses) on investments 16 174,922 (44,187)
Net movement in funds 83,955 (168,338)
Fund balances at 1 October 2020 4,943,610 5,111,948
Fund balances at 30 September 2021 5,027,565 4,943,610

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

All income and expenditure derive from continuing activities.

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

CHARITY STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 SEPTEMBER 2021

Unrestricted Unrestricted
funds funds
2021 2020
Notes £ £
Income from:
Donations and legacies 4 180,868 79,366
Charitable activities - property rental 6 146,824 140,238
Other trading activities 7 38,386 28,430
Investments 5 42,180 32,959
Total income 408,258 280,993
Expenditure on:
Raising funds 8 15,874 15,400
Charitable activities 9 393,071 163,714
Total resources expended 408,945 179,805
Net gains/(losses) on investments 16 174,922 (44,187)
Net movement in funds 174,235 57,001
Fund balances at 1 October 2020 4,876,984 4,819,983
Fund balances at 30 September 2021 5,051,219 4,876,984

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

All income and expenditure derive from continuing activities.

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

CONSOLIDATED BALANCE SHEET

AS AT 30 SEPTEMBER 2021

Notes
Fixed assets
Tangible assets
18
Investments
17
Current assets
Stocks
21
Debtors
22
Cash at bank and in hand
Creditors: amounts falling due within
one year
23
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds
Designated funds
26
General unrestricted funds		 2021
£
£
2,692,828
1,452,396
4,145,224
10,567
204,616
992,673
1,207,856
(325,515)
882,341
5,027,565
(23,654)
5,051,219
5,027,565
5,027,565		 2020
£
£
2,758,387
1,251,249
4,009,636
10,019
261,498
1,027,069
1,298,586
(364,612)
933,974
4,943,610
76,231
4,867,379
4,943,610
4,943,610		 2020
£
£
2,758,387
1,251,249
4,009,636
10,019
261,498
1,027,069
1,298,586
(364,612)
933,974
4,943,610
76,231
4,867,379
4,943,610
4,943,610
4,009,636
933,974
4,943,610
4,943,610
4,943,610

The financial statements were approved by the Trustees on 29 September 2022

N Parry Trustee

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

CHARITY BALANCE SHEET

AS AT 30 SEPTEMBER 2021

Notes
Fixed assets
Tangible assets
18
Investments
17
Current assets
Debtors
22
Cash at bank and in hand
Creditors: amounts falling due within
one year
23
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2021
£
£
2,692,828
1,452,396
4,145,224
131,020
782,025
913,045
(7,050)
905,995
5,051,219
5,051,219
5,051,219		 2020
£
£
2,758,387
1,251,249
4,009,636
101,263
768,775
870,038
(2,690)
867,348
4,876,984
4,876,984
4,876,984		 2020
£
£
2,758,387
1,251,249
4,009,636
101,263
768,775
870,038
(2,690)
867,348
4,876,984
4,876,984
4,876,984
4,009,636
867,348
4,876,984
4,876,984
4,876,984

The financial statements were approved by the Trustees on 29 September 2022

N Parry Trustee

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2021

Notes
Cash flows from operating activities
Cash generated from operations
30
Investing activities
Purchase of tangible fixed assets
Purchase of investments
Proceeds on disposal of investments
Investment income received
Net cash used in investing activities
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash movements in investment portfolio
Cash and cash equivalents at end of year		 2021
£
£
29,701
(81,265)
(25,000)
11,609
41,674
(52,982)
-
(23,281)
1,027,069
(11,115)
992,673		 2020
£
£
21,486
(55,157)
(71,350)
64,251
32,959
(29,297)
-
(7,811)
1,043,843
(8,963)
1,027,069

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

1 Accounting policies

Charity information

The Minchinhampton Centre for the Elderly is an unincorporated association registered as a charity in England and Wales.

The charity's registered number can be found on the Legal and Administrative Information page.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The consolidated group financial statements consist of the financial statements of parent charity The Minchinhampton Centre for the Elderly together with all entities controlled by the parent charity (its subsidiaries). All intra-group transactions and balances are eliminated on consolidation.

1.2 Going concern

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

The trustees consider given the high level of retained reserves represented in cash and investments held by the charity that there are sufficient funds to maintain working capital and accordingly it is appropriate to prepare the financial statements on a going concern basis.

1.3 Charitable funds

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

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

1.4 Income

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

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

1 Accounting policies

(Continued)

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

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

Gifts in kind for use by the charity are recognised as incoming resources when received at a reasonable estimate of their value.

Income from government and other grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

1.5 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to that category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Irrecoverable VAT is charged against the category of resources expended for which it is incurred.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include office costs, finance, personnel, payroll and governance costs which support the charity's programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in the notes to the financial statements.

1.6 Tangible fixed assets

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

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

Freehold land & buildings 2% on cost Fixtures, fittings & equipment 10 / 25% on cost Motor vehicles 25% on cost

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

1 Accounting policies

(Continued)

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Impairment of fixed assets

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

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11 Financial instruments

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

1.13 Provisions

Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.

1.14 Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15 Retirement benefits

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

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

2 Critical accounting estimates and judgements

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

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

3 Donations and legacies - group

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Donations and gifts 103,591 59,366
Legacies receivable 127,278 20,000
Grants receivable 125,474 118,766
356,343 198,132
Grants receivable for core activities
Infection control grant 82,076 79,385
Coronavirus job retention scheme 1,135 9,204
Other Covid related grants 42,263 30,177
125,474 118,766

4 Donations and legacies - charity

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Donations and gifts 53,591 59,366
Legacies receivable 127,278 20,000
180,869 79,366

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

5 Investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Income from listed investments 41,946 30,968
Interest receivable 1,446 1,991
43,392 32,959

6 Charitable activities

Nursing home Day centre &
Homecare		 Other income Total Total
non-residential 2021 2020
services
2021 2021 2021 2021
£ £ £ £ £ £
Other income 2,163,622 66,192 699,054 845 2,929,713 3,280,193
For the year ended 30 September 2020
Nursing home Day centre & Homecare Other income Total
non-residential 2020
services
£ £ £ £ £
Other income 2,322,791 107,825 847,561 2,016 3,280,193
Other trading activities - charity
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Fundraising events 38,386 28,430

7 Other trading activities - charity

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

8 Raising funds - charity

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Fundraising and publicity
Other fundraising costs 152 894
Investment management 15,722 14,506
15,874 15,400

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

9 Charitable activities - group

Staff costs
Depreciation and impairment
Agency staff
Catering
Cleaning & hygiene
Utilities
Insurance
Repairs & maintenance
IT & telephony
Travel & motor expenses
Advertising, recruitment & training
Office expenses
Equipment hire
Other direct costs
Share of governance costs (see note 12)
Charitable activities - Charity
Resident bed funding
Depreciation and impairment
Other direct costs
Share of governance costs (see note 13)		 2021
£
2,606,574
146,823
41,617
80,231
87,813
67,697
19,007
87,212
53,797
64,935
22,230
24,528
28,418
64,768
3,395,650
47,277
3,442,927
2021
£
222,348
146,823
578
369,749
23,322
393,071		 2020
£
2,631,802
140,238
205,128
95,958
97,456
60,294
18,569
87,697
51,723
79,123
19,473
21,376
27,600
63,837
3,600,274
48,191
3,648,465
2020
£
691
140,238
543
141,472
22,242
163,714

10 Trustees

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

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

11 Employees

The average monthly number of employees during the year was:

Directors of subsidiary company
Care, domestic and administration staff
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
6
145
151
2021
£
2,400,449
165,873
40,252
2,606,574		 2020
Number
4
148
152
2020
£
2,430,856
159,648
41,298
2,631,802

During the year the parent charity had no employees (2020: none) and no staff costs were incurred (2020: £nil).

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

11 Employees

(Continued)

The number of employees whose annual remuneration was £60,000 or more were:

£70,000 - £80,000
Support costs - group
Support
costs
Governance
costs
2021
£
£
£
Audit fees
-
9,340
9,340
Legal and professional
-
18,280
18,280
Other governance costs
-
19,657
19,657
-
47,277
47,277
Analysed between
Charitable activities
-
47,277
47,277
Support costs - charity
Support
costs
Governance
costs
2021
£
£
£
Audit fees
-
2,010
2,010
Legal and professional
-
1,655
1,655
Other governance costs
-
19,657
19,657
-
23,322
23,322
Analysed between
Charitable activities
-
23,322
23,322
Net movement in funds
Net movement in funds is stated after charging/(crediting)
Fees payable to the company's auditor for the audit of the company's
financial statements
Depreciation of owned tangible fixed assets		 2021
Number
1
Support
costs
Governance
costs
£
£
-
10,216
-
17,106
-
20,869
-
48,191
-
48,191
Support
costs
Governance
costs
£
£
-
2,200
-
-
-
20,042
-
22,242
-
22,242
2021
£
9,340
146,823		 2020
Number
1
2020
£
10,216
17,106
20,869
48,191
48,191
2020
£
2,200
-
20,042
22,242
22,242
2020
£
10,216
140,238

12 Support costs - group

13 Support costs - charity

14 Net movement in funds

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

15 Auditor's remuneration

The analysis of auditor's remuneration is as follows:
Fees payable to the charity's auditor and associates: 2021 2020
£ £
Audit of the charity's annual accounts 9,340 10,216

16 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Revaluation of investments 170,948 (44,187)
Gain/(loss) on sale of investments 3,974 -
174,922 (44,187)

17 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 October 2020
1,234,993
Additions
53,158
Valuation changes
170,948
Disposals
(34,074)
At 30 September 2021
1,425,025
Carrying amount
At 30 September 2021
1,425,025
At 30 September 2020
1,234,993		 Cash in
portfolio
16,256
11,115
-
-
27,371
27,371
16,256		 Total
£
1,251,249
64,273
170,948
(34,074)
1,452,396
1,452,396
1,251,249

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

17 Fixed asset investments

(Continued)

18 Tangible fixed assets - group and charity

Freehold land
& buildings
£
Cost
At 1 October 2020
3,711,099
Additions
3,480
At 30 September 2021
3,714,579
Depreciation and impairment
At 1 October 2020
1,273,971
Depreciation charged in the year
80,960
At 30 September 2021
1,354,931
Carrying amount
At 30 September 2021
2,359,648
At 30 September 2020
2,437,129		 Fixtures,
fittings &
equipment
Motor vehicles
£
£
933,334
48,580
77,785
-
1,011,119
48,580
612,076
48,580
65,863
-
677,939
48,580
333,180
-
321,258
-		 Total
£
4,693,013
81,265
4,774,278
1,934,627
146,823
2,081,450
2,692,828
2,758,387

For administrative reasons the property comprising the land and buildings known as Horsfall House (together comprised in Land Registry Title Nos. GR132825, GR184300 and GR353447) was re-registered in the name of Minchinhampton Centre for the Elderly Limited and, pursuant to a Declaration of Trust dated 9 June 2011, is now held on trust for The Minchinhampton Centre for the Elderly (Charity number 287479) absolutely. Accordingly, the property is included in the accounts of the Charity Group only.

19
Financial instruments
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
20
Subsidiaries		 2021
£
1,425,025		 2020
£
1,234,993

Details of the charity's subsidiaries at 30 September 2021 are as follows:

Name of undertaking Registered Nature of business Class of % Held
office shares held Direct Indirect
Minchinhampton Centre for
UK		 Operation of nursing home n/a 100.00
the Elderly Limited

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

20 Subsidiaries

(Continued)

The aggregate capital and reserves and the result for the year of subsidiaries included in the consolidated financial statements was as follows:

Name of undertaking Profit/(Loss) Capital and
Reserves
£ £
Minchinhampton Centre for
the Elderly Limited (90,280) (23,654)
Registered company number: 02770415
Registered charity number: 1083810

In the year Minchinhampton Centre for the Elderly Limited reported income of £3,328,747 (2020: £3,399,650) and expenditure totalling £3,419,027 (2020: £3,624,989).

21 Stocks

21
Stocks
Catering, cleaning & medical supplies
22
Debtors
Amounts falling due within one year:
Trade debtors
Amounts owed by subsidiary undertakings
Prepayments and accrued income		 2021
£
Group
129,241
-
75,375
204,616		 2021
£
Charity
-
130,980
40
131,020		 2021
£
10,567
2020
£
Group
174,070
-
87,428
261,498		 2020
£
10,019
2020
£
Charity
-
84,894
16,369
101,263

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

23
Creditors: amounts falling due within one year
2021
£
Group
Other taxation and social security
43,062
Deferred income
87,858
Trade creditors
41,916
Other creditors
40,424
Accruals
112,255
325,515
Deferred income is included in the financial statements as follows:
Deferred income at 1 October
Resources deferred during the year
Amounts released from previous years
Deferred income at 30 September		 2021
2020
£
£
Charity
Group
-
44,392
-
102,055
-
62,328
-
-
7,050
155,837
7,050
364,612
2021
£
102,055
87,858
(102,055)
87,858		 2020
£
Charity
-
-
-
-
2,690
2,690
2020
£
86,952
102,055
(86,952)
102,055

Income received during the period specific to funding for future periods has been deferred accordingly. At the balance sheet date, the charitable company was holding funds received in advance for 2020/21 in respect of nursing home fees (2020: nursing home fees).

24 Retirement benefit schemes

Defined contribution schemes

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

The charge to profit or loss in respect of defined contribution schemes was £40,252 (2020 - £41,298).

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

25 Unrestricted general funds

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming
Resources		 Transfers Revaluations, Balance at Incoming
Resources		 Transfers Revaluations, Balance at
1 October 2019 resources expended gains and
1		 October 2020 resources expended gains and 30 September
losses losses 2021
£ £ £ £ £ £ £ £ £ £ £
Unrestricted
general funds 4,819,983 280,993 (189,410) - (44,187) 4,867,379 408,258 (176,992) (222,348) 174,922 5,051,219

26 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 October 2019
£
Charitable trading
291,965
291,965		 Movement in funds
Incoming
resources
Resources
expended
Balance at
1 October 2020
£
£
£
3,399,650
(3,615,384)
76,231
3,399,650
(3,615,384)
76,231		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
30 September
2021
£
£
£
£
3,106,399
(3,428,632)
222,348
(23,654)
3,106,399
(3,428,632)
222,348
(23,654)

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

27 Related party transactions

The charity provided financial support to residents attending the Nursing Home who were unable to pay the full amount of the Nursing Fees. In 2021 this totalled £222,348 (2020: Nil).

During the year, the charity received rent of £105,000 (2020: £105,000) and an asset usage charge of £41,823 (2020: £35,238) from its subsidiary undertaking, Minchinhampton Centre for the Elderly Limited, a registered charitable company. At the balance sheet date amounts owed by the subsidiary totalled £130,980 (2020: £84,894).The subsidiary also makes use of various other fixtures, fittings and which are owned by The Minchinhampton Centre for the Elderly.

28 Financial commitments, guarantees and contingent liabilities

Other than operating lease commitments referred to below, the group has no other financial commitments, guarantees or contingent liabilities (2020 - £nil).

The charity has no financial commitments, guarantees or contingent liabilities.

29 Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2021
£
7,704
24,113
31,817		 2020
£
4,325
1,128
5,453

The charity had no operating lease commitments (2020: £nil).

THE MINCHINHAMPTON CENTRE FOR THE ELDERLY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

30 Cash generated from operations 2021 2020
£ £
Surplus/(deficit) for the year 83,955 (168,338)
Adjustments for:
Investment income recognised in statement of financial activities (43,392) (32,959)
Gain on disposal of investments (3,974) -
Fair value gains and losses on investments (170,948) 44,187
Depreciation and impairment of tangible fixed assets 146,823 140,238
Movements in working capital:
(Increase) in stocks (548) (2,066)
Decrease/(increase) in debtors 56,882 (6,260)
(Decrease)/increase in creditors (24,900) 31,581
(Decrease)/increase in deferred income (14,197) 15,103
Cash generated from operations 29,701 21,486
31 Analysis of changes in net funds
The charity had no debt during the year.