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2024-10-31-accounts

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

Registered number: 01741444 Charity number: 287579

The Mortimer Society

(A Company Limited by Guarantee)

Trustees' Report and Financial Statements

For the Year Ended 31 October 2024

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Contents

Page
Trustees' Report 1 - 12
Independent Auditors' Report on the Financial Statements 13 - 15
Statement of Financial Activities 16
Balance Sheet 17
Statement of Cash Flows 18
Notes to the Financial Statements 19 - 36

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society (A Company Limited by Guarantee)

Reference and Administrative Details of the Charity, its Trustees’ and Advisers For the Year Ended 31 October 2024

Trustees

Dr D J Oliver, Chair Mr K Lagden, Vice Chair Mrs V Lepadden (resigned 20 November 2024) Mrs C Clinton Mrs C Neville Mrs J Hackett Ms Natalie Farley (appointed 13 December 2023)

Company registered number 01741444

Charity registered number 287579

Registered office 42 Hollywood Lane Frindsbury Rochester Kent, ME3 8AL

Chief Executive Officer

Mr Paul Studd

Executive Management Team

Mrs Susan Matthews, Head of Operations Mrs Elaine Runeckles, Head of Care, Quality & Compliance (resigned 29 February 2024) Mrs Geraldine La Thangue, Head of Care, Birling House and Frindsbury House (appointed 2 January 2024 and resigned 25 September 2024)

Independent auditor

UHY Hacker Young Thames House, Roman Square Sittingbourne Kent, ME10 4BJ

Bankers

National Westminster Bank Plc 5 Market Place Hampton Wick Kingston upon Thames Surrey, KT1 1JX

Solicitors

Russell-Cooke LLP 2 Putney Hill Putney London, SW15 6AB

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Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society (A Company Limited by Guarantee)

Trustees’ Report (continued) For the Year Ended 31 October 2024

The Trustees present their annual report together with the audited financial statements of the charitable company for the period 1 November 2023 to 31 October 2024. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Charities SORP (FRS 102) (second edition), “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland (FRS 102)”.

OBJECTIVES AND ACTIVITIES

Policies and objectives

The Society gives due regard to the guidance published by the Charity Commission on public benefit and the Trustees consider the Charity is compliant. The purpose of the Society, as set out in the Society's Memorandum of Association, is to provide relief for those in need by reason of ill health or disability particularly a physical and/or a learning disability, and particularly those people suffering from Huntington's Disease and other neurological conditions.

Strategies for achieving objectives

The objectives are achieved through the provision of long-term residential care for adults across two residential homes owned by the charity, Birling and Frindsbury House. One of the homes is in West Kent and the other in Medway but both welcome clients from all over the country. Most of our residents are sponsored by their Local Authority Social Services or by their NHS Integrated Commissioning Boards. Prior to admission to either of our homes, a full pre-admission assessment of a prospective resident is carried out with the help of relatives and the social care case manager and other social care professionals to ensure that we can provide the most appropriate level of care and support.

No one receives any private benefit from the charity other than the care services we provide.

Activities for achieving objectives

By considering our aims, objectives, and activities each year, we strive to deliver the most effective and beneficial outcomes. We also ensure that the environment of our homes and the activities and services we provide make our homes attractive to prospective residents, their families, and commissioners. In each home we offer:

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Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society (A Company Limited by Guarantee)

Trustees’ Report (continued) For the Year Ended 31 October 2024

Involvement of Volunteers

Volunteers from local schools and colleges may be involved in visiting residents who have no family contacts. One volunteer, an ex-staff member of the Activities team, visits Birling House on a regular basis to support residents and staff with various social activities such as visits to the local pubs for lunch and accompanying residents on days out on boat trips. On occasions other ex-members of staff or family members of deceased residents deliver buddy support to residents at Birling House who have no family or do not receive regular visitors.

Advocacy

The Society has close links to the Independent Mental Capacity Advocacy (IMCA) service provided by the Advocacy People. The service provides support on a confidential basis for residents who are unable to represent themselves and have no close family and friends.

Mandatory and Specialised Training

Staff training is carried out regularly and includes: Fire Safety, Health and Safety, Safeguarding of Vulnerable Adults, Infection Prevention and Control, Moving and Handling, Mental Capacity and Deprivation of Liberty, Food Hygiene and First Aid. In addition to this training, we also offer staff training on a wide range of subjects including Medication, Report Writing, Equality and Diversity, LGBTQ, Communication Skills, Huntington's disease, Multiple Sclerosis, Parkinson’s disease, autism, learning disability and Dementia. The Society also prides itself in providing support to new employees who are new to social care as part of their induction process, in achieving the Care Certificate. This qualification is an agreed set of standards published by Skills for Care that sets out the knowledge, skills and behaviours expected of specific job roles by workers in the health and social care sectors. The Certificate comprises of 15 minimum standards and forms part of any new employee’s robust induction programme over a period of 12 weeks.

STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

Review of activities

Activities and achievements during the year

The year has again been exceptionally challenging in ensuring the stability and provision of care to the residents. The issues with funding from the authorities who place residents into our care has continued. There has been a major challenge in obtaining appropriate increases in funding from authorities in line with the rate of inflation and the costs of care, such as increased costs for food and utilities and the National Living Wage provision, leaving a deficit in providing the cost of care. Negotiations have taken place with authorities and these will continue in the coming years.

The pressures around the recruitment and retention of staff have eased during this year with the turnover of staff being much improved but nevertheless some newly appointed staff members continue to leave after a short period of time. This reflects a national issue, with caring not seen as a long-term career and to be poorly paid. The Executive Team have worked very hard at addressing these issues, with increased flexibility in the recruitment process, support of new staff and an ongoing support for all staff. We have aimed to provide a reasonable pay increase and other support for staff.

Staff

Over the years, Birling House and Frindsbury House have built up a strong reputation for the quality of care, kindness and support given to our residents and their families by our staff. The Society has been very fortunate to have a loyal and dedicated staff team in both homes who are valued and keen to provide for the individual care needs and aspirations of our residents to deliver the required person-centred outcomes. During the last year the recruitment and retention of staff has seen a marked improvement with the Society’s staff turnover stabilising and now much lower than has been experienced in prior years and has provided a consistent staff base allowing the enhanced care which is our normal level of service. Staffing issues continue to remain at the top of the agenda across the care sector generally.

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Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society (A Company Limited by Guarantee)

Trustees’ Report (continued) For the Year Ended 31 October 2024

The pay increases to all staff included meeting the National Living Wage of 9.9% with incremental increases for all staff. Extra support has been provided with counselling and support available to all staff from Health Assured which provides confidential support, advice and counselling for staff.

Despite these challenges and pressures, we have continued to stress the high importance on the personal and professional development of staff which encourages initiative and innovation. Our comprehensive induction programme for all staff reflects the Society’s principles, aims, and values through which they are encouraged to contribute to the future planning and development of the service.

Staff have continued to undertake many activities in-house to provide enjoyment and entertainment and support for residents who have been unable to leave the homes and for those who have received limited visiting by friends and families. These activity and social entertainment days include birds of prey, Alpaca, and reptile visits, hatching of ducks and chicks and performances by singers and entertainers with families and friends also being invited to attend. These activities have been supported by the charitable donations from residents and families and charitable events held by staff throughout the year.

There has also been the opportunity this year to reorganise the management structure at the Society. A new post of Head of Care and Registered Manager with the CQC for the Society has been developed and implemented and the postholder will lead the Home Managers and care teams to deliver the highest possible quality care for people with complex needs.

Staff Training

The organisation is committed to an extensive training programme for all our staff and this has continued throughout the year including working towards Diploma qualifications at level 2 and level 3 in Health and Social Care through the Qualifications Credit Framework (QCF). This ensures our staff are better trained than is perhaps the norm in residential care homes in this area of practice.

The on-line training programme delivered by Care Tutor delivers the necessary mandatory courses for all categories of employees with care staff being expected to complete 32 modules for which they are recompensed if completed in their own time which are refreshed every two or three years depending on the course subject. This programme has continued to be extremely effective which means that it will continue to be the method of delivering all training in the future except for any practical training that has to be undertaken face to face such as first aid, moving and handling and Safeguarding of Vulnerable Adults which is delivered by both methods.

All new staff undertake an in-depth induction process which must be completed within a 12-week period and gives each person a full understanding of the responsibilities of their role, the quality of care we provide and expect to be delivered which will give everyone the opportunity to explore the working practices and environments at both of our homes. All staff are encouraged to practice the aims, beliefs and values of the Society in order to deliver high-quality person-centred care to everyone.

Occupancy levels

The Society’s financial performance depends on overall room occupancy and the level of weekly fees paid on behalf of our residents by the local authorities and the NHS Integrated Commissioning Boards (ICBs). The Society is registered with the Care Quality Commission for 29 rooms at Birling House (29 residents) and 23 rooms (23 residents) at Frindsbury House. In 2023/24, the Society achieved an overall average occupancy rate of 93.75%, with Birling House achieving an occupancy level of 91.1% and Frindsbury House achieving 96.4%. Birling House occupancy level was reduced for several weeks due to the lift being out of operation and rooms on the upper levels could not be used during this period. This has been rectified and all rooms are now in use.

Capital Reinvestment - Fabric and equipment

Capital reinvestment into the Society from reserves was limited in 2023/24 with a conscious decision to minimise expenditure from reserves due to the likely high level of day-to-day operational costs in the current year. As a result, the annual capital budget for 2023/24 was reduced to a contingency fund of £25,000 for essential capital expenditure. By the end of the financial year this fund was utilised to the value of £7,133 with one item estimated to cost £3,900 being carried over to 2024/25. Other capital expenditure was limited to items that could be funded from fundraising.

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Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society (A Company Limited by Guarantee)

Trustees’ Report (continued) For the Year Ended 31 October 2024

The sensory garden at Frindsbury House was completed in 2024 with disabled access. Residents enjoyed being involved in the design and in participating with the choice of planting and developing the area to their preference, promoting a sense of worth and well-being along with their independence. The result is a pleasant and stimulating atmosphere and environment that can be used and enjoyed by residents and their families and friends. Fundraising towards the cost of the sensory garden at Frindsbury House was achieved by our fundraiser with almost £14,000 being raised towards the total cost of £32,000 to fund this development.

The major development project for 2023/24 was the installation of a new passenger lift at Frindsbury House to serve all three floors of the home. This large 26-week project was started in October 2023 and was completed in May 2024 and is now in operation providing added benefits for existing residents as they can access different parts of the building more easily and quickly and it will also act as an enhanced facility in the case of emergencies. This facility also greatly benefits the staff who can move residents around the building much more easily and with greater dignity.

This capital project cost approximately £320,000 including the retention money yet to be paid to the building contractor but the Society received several generous donations totalling £283,000 from charitable foundations towards the cost, without which the project would not have been possible. These charitable foundations included the Albert Gubay Foundation, the Clothworkers Foundation, Bernard Sunley Foundation, the Edward Gostling Foundation, the Garfield Weston Foundation and the Hospital Saturday Fund.

The official opening of the lift was carried out on 1[st] November 2024 by Lauren Edwards MP for Rochester and Strood.

Care Quality Commission

Birling House was last inspected by the CQC on 11 July 2017 under the new inspection regime looking at the five key lines of inquiry where questions are asked about the service being (1) Safe (2) Effective (3) Caring (4) Responsive and (5) WellLed. The outcome of the inspection was that the service was rated ‘Good’ in all areas and was awarded an overall rating of ‘Good’ . No further visits have been carried out to date despite CQC changing and implementing new ways of working to carry out their compliance inspections with the imminent introduction of the single assessment framework.

Frindsbury House was last inspected by the CQC on 12 February 2019 and the service was awarded the rating of ‘Good’ in all five key lines of inquiry. No further visits have been carried out by the CQC since this date.

During 2023/24 the CQC have continued to introduce a new strategy for the changing world of health and social care and the way they regulate to improve the care for everyone, aiming to be more relevant to the way care is delivered, more flexible to manage risk and uncertainty and enabling them to respond in a quicker and more proportionate way as the health and care environment continues to evolve. The Single Assessment framework is being introduced to strengthen their commitment to deliver their purpose; to ensure health and social care services provide people with safe, effective, compassionate, high-quality care and to encourage those services to improve. Throughout 2024, the CQC were committed to implementing this further new way of working with care providers and this method is the means by which health and social care organisations will work together to ensure that assessment and subsequent care planning for people are person-centred, effective and coordinated but this has been delayed and full implementation will not be until 2025/26.

During the last 4 years, the CQC have suspended their routine inspection programme following the Covid-19 pandemic in 2020 and do not intend to resume it unless they consider there are risks associated with the service being identified. They have continued to use a mix of intelligence gathering information to ensure the public have assurance as to the safety and quality of the care that is being delivered.

The CQC carryout a regular review of the data that is available to them and to date they have not found any evidence to suggest that they need to carry out an inspection or reassess the ratings at either home which are currently both rated as ‘Good’ in all five areas of inspection.

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Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society (A Company Limited by Guarantee)

Trustees’ Report (continued) For the Year Ended 31 October 2024

FINANCIAL REVIEW

Financial risk management objectives and policies

The Society produced a small surplus of £53,386 for the year ended 31 October 2024 following disappointing results in the prior two years from charitable activities. Compared with the previous year, the total income increased by £354,298 from the previous year and the expenditure increased by £287,871. However, this out-turn includes monies from fundraising for specific projects, the majority of which has been capitalised as tangible fixed assets on the Balance Sheet. Prior to this capitalisation, the Society’s management accounts for the year showed an excess of expenditure over income of £179,337. Although the Society has experienced a marginal increase in cash reserves compared with previous financial years in the accounts, the true position is a reduction in the reserves of £166,347 as demonstrated by the table on the following page. Further capital reinvestment will have to be carefully monitored together with detailed reviews of the fee income and expenditure levels. However, there are still sufficient reserves to allow the Society to remain viable in the coming years.

Staffing costs accounted for 81.3p out of every £1 of fee income in the 2023/24 financial year compared with 73.6p in the prior year. Many of our residents require a very high level of specialised individual and complex care making it is necessary to have high staffing levels and highly trained and experienced staff to deliver this unique and person-centred service which maintains the professionalism and reputation of the Society’s charitable purpose. There have been some issues in the recruitment and retention of staff which has been seen nationally within the care sector and this has increased staffing costs. Measures are being taken to reduce the costs as far as possible but national measures may be needed to address this problem.

During 2023/24 most of sponsoring authorities/Integrated Care Boards (ICBs) awarded inflationary increases in weekly fees to recognise the ongoing and increasing cost of the National Living Wage each year and the general cost of living rises on goods and services, but the percentage increases were not sufficient in recognising the extremely high level of inflation or the actual level of pay increases awarded out of necessity to retain staff. Unfortunately, some authorities offered no increase at all or were actively seeking to reducing their costs in line with their budget constraints.

We have little control over many of the fixed and variable costs, for instance food and drink, utilities, repairs and maintenance costs and equipment service agreements which have all been subject to a substantial price increase in line with or above, the general inflation rate level. At the same time the ever-increasing regulation of the care sector brings year on year additional costs which must be borne and absorbed without any consideration being given to the impact that may have on the operation of individual care homes. This situation has arisen because of local government restrictions imposed by central government and national action will be necessary as this situation cannot continue in the future without impacting on the services we can provide. We have met with all authorities during the year to discuss these issues and the careful reassessment of the residents’ needs and costings has led to increased fees for many residents. These reassessments are continuing and should lead to increased income.

As a charity we strive to deliver high-quality, cost-effective care at a fair and true price. However, our income must at least meet our expenditure and allow us to continue to invest for the future. We sincerely hope that our sponsoring authorities will recognise that if charitable residential care homes such as the Mortimer Society are to continue, fee income must reflect the true cost of caring for our residents who have very high dependency and complex care needs. The funding authorities must also recognise and attempt to meet the increasing pay rates resulting from the imposed year on year increases in the National Living Wage through the future years ahead.

Going Concern

The level of total reserves has increased at the end of the 2023/24 financial year to £5,232,374 compared with the prior year of £5,178,988, an increase of £53,386. However, this surplus position includes the monies received from fundraising. The Fundraiser has been able to raise monies for equipment and the new lift at Frindsbury House and these monies have been received in advance of the building work starting.

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Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society (A Company Limited by Guarantee)

Trustees’ Report (continued) For the Year Ended 31 October 2024

Overall net movement in funds for the period per SoFA (Surplus/(deficit))
(Increase)/ decrease in designated fixed asset fund
Less: restricted grant donations and expenditure for capital projects
Operational deficit for the year		 2024
2023
£
£
53,386
(13,041)
(138,238)
51,698
(81,495)
(222,554)
(166,347)
(183,897)

Various reasons for the decrease include:

  1. Although fee income levels for new admissions have improved over the financial year and occupancy levels have remained good throughout the year, the restriction in the use of the rooms on the upper levels at Birling House for several weeks due to delays in the repair of the lift, did cause a substantial but temporary reduction in income estimated as £50,160. Fees for legacy residents have not kept pace with inflation due to the extreme cost-of-living crisis during 2024 but reassessment of their needs has led to increased fees and this will continue in the coming year.

  2. Although staffing levels and turnover have greatly improved during the past year, recruitment and retention problems continue to face the care sector generally and as a result the staffing expenditure significantly increased because of the high increase of 9.78% in the National Living Wage and the use of agency staff to cover sickness absence and providing 24 hours per day 1:1 care for certain residents.

The Society is actively fundraising through a contracted fundraiser, and this has been very successful throughout 2023/24 which had a positive impact on the budget through these very tough and challenging times and the position is being effectively managed. A total of £99,913 of restricted and £8,500 of unrestricted grant income was received for specific capital projects during the year and the donors are personally thanked for their contribution in making these projects a reality.

After making appropriate enquiries and considering the above points, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Donations

The Society also received a small sum of £2,830 from local fundraising income as a result of either staff or families arranging social activities such as charity football matches and other events and also internal activities organised by staff for the benefit of the residents such as coffee and cake mornings.

During the year small values of donations were received from families and friends of £4,401 at 31 October 2024 which is included in the total reserves figure below. The expected timing of expenditure of donations received would be within 12 months of receipt and would be spent for the benefit of all the residents.

Fundraising

As noted above, the Society continues to engage the services of an external fundraising consultant, who is a member of the Chartered Institute of Fundraising. The fundraiser researches and submits grant applications to trusts and foundations, specifically to help fund the annual capital programme. Fundraising is not sought from individuals or the general public.

The Society received a total of £108,413 of grant funding from various sources including £2,800 from the Hospital Saturday Fund, £25,000 from the Edward Gosling Foundation, £500 from Kent County Council, £50,000 from the Cloth Workers Foundation, £500 from the Douglas Arter Foundation, £1,500 from the Sir James Roll Charitable Trust, £452 from the Charlotte Marshall Charitable Trust, £1,500 from the Gardening with Disabilities Trust, £400 from Medway Council, £3,420 from the Cantiacorum Foundation, £8,000 from the Lawson Trust, £3,841 from the Percy Bilton Charity, £8,500 from the Dorothy Twiggins Charitable Trust and £2,000 from the HD Wills 1965 Charitable Trust all of which will be classified as restricted funds for the specific purposes of either specialist equipment for residents across both homes and for the new lift project at Frindsbury House.

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Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society (A Company Limited by Guarantee)

Trustees’ Report (continued) For the Year Ended 31 October 2024

The Fundraising Contractor will continue with a programme of fundraising for 2024/25 in anticipation of receiving restricted grants to enable the purchase of more specialist equipment or for extensive capital projects to improve the residential service to our beneficiaries.

Principal risks and uncertainties

A risk management review process is undertaken by the Executive Management Team and has been approved and adopted by the Trustees. This process is monitored through the Society’s Corporate Risk Assurance Framework and this is reviewed, updated as appropriate and reported upon to the Board on a quarterly basis.

The review process enables the CEO, executive managers, and Trustees to mitigate risks that might otherwise prevent the Society from achieving its charitable purpose and objectives through its core values.

The Trustees consider the greatest risk at beginning of the financial year was that of the increases in expenditure due to increases in food costs, utilities, and salaries with insufficient increases in funding from authorities. There is the risk that there may be only small and inadequate increases in fees paid by local authorities linked with the significant year on year increased operating costs and staffing costs arising from the National Living Wage through to 2025 and beyond. Moreover, changes in the political and social climate, a further economic downturn would affect the operation of the Charity’s business.

The Society has continued to operate the role of Caldicott Guardian this year and an external consultant is now responsible for information governance and acts as the Society’s Data Protection Office in collaboration with the nominated individual in recognition of the possible risks surrounding resident data and systems security.

Risks also include a possible shortfall in CQC required outcomes within the service provision and the consequent loss of full compliance which could be a resulting factor. The Society operates a clinical audit and performance management process to rectify any possible failure in standards. The appointment of the Head of Care/Registered Manager in January 2024 with the aim to ensure legal compliance and be responsible for the recently introduced changes in monitoring from the CQC by way of the Single Assessment Framework, will ensure that the requirement of the CQC are met. Unfortunately, the initial postholder resigned after only 9 months in post but the Society is in the process of recruiting a new Head of Care/Registered Manager and hopefully will be appointed in early 2025.

Recruitment and retention of appropriate staff continues to be a main priority in this unprecedented and challenging climate that results in higher costs due to the use of agency provision whose prices have significantly increased in line with all staffing costs due to the high level of inflation and the National Living Wage across the health and social care sector.

Reserves policy

The total reserves at the end of the financial year amounted to £5,232,374 which included the designated fixed asset fund of £4,175,702 which can only be realised on the disposal of the assets and restricted funds of £2,712. Funding from local authorities has received a very high profile this year regarding the possible issuing of Section 114 notices but the Society is managing and monitoring the situation very closely in order to maintain our level of reserves in accordance with our policies and procedures.

At the end of 2023/24 the Society's free reserves stood at £1,053,960 compared with £971,428 at the end of the previous year. During the year the Trustees reviewed the reserves policy and confirmed that an adequate reserve needs to be maintained to allow for any reduction in occupancy levels and for other potential risks and any unexpected eventualities.

The reserves policy agreed by the Board of Trustees currently state that reserves should aim to be maintained at a minimum of three months of basic operating expenditure, which at this current time amounts to around £1,140k. It is hoped that this would be met during 2025.

Trustees continue to review investment opportunities within the framework of the investment policy to maximise the income of the Society with due consideration to protecting the beneficiaries in our care.

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Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society (A Company Limited by Guarantee)

Trustees’ Report (continued) For the Year Ended 31 October 2024

Performance Management

The Board of Trustees have recognised that it is increasingly necessary and good practice for charities to demonstrate organisational performance in the annual reports and accounts.

The Trustees have taken the decision following recommendations by the Charity Commission and our External Auditor to continue to adopt and report upon five key performance indicators (KPIs) for the year ending 31 October 2024.

The five Key Finance Performance Indicators (KFPIs) that are being reported upon in 2023/24 are as follows:

KPIs serve as a measurable value that demonstrates how effectively an organisation is achieving its key business objectives such as performance and progress in order to help evaluate their success in reaching its strategic goals and specific targets.

The Society’s results from the KFPIs in the 2023/24 financial year were as follows:

Key Performance Indicator Birling Birling House Frindsbury House Frindsbury House Frindsbury House Society Total (inc.
Central Dept)		 Society Total (inc.
Central Dept)		 Society Total (inc.
Central Dept)
Actual Objective Actual Objective Actual Objective
Occupancylevel 91.1% 98.3% 96.4% 97.8% 93.8% 98.1%
Surplus to Income 8.9% 14.1% -2.6% 1.50% 3.8% -2.9%
Staffingcosts to Income 74.4% 68.1% 86.2% 82.1% 87.6% 82.4%
Staff costs to Total Costs 82.0% 79.3% 84.0% 83.3% 81.1% 80.1%
Operational Costs to Total Costs 18.0% 20.7% 16.0% 16.7% 18.9% 19.9%
Net Current Assets n/a n/a n/a n/a £0.909m £1.100m

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The Society is a registered charity and a company limited by guarantee and as such operates under its Memorandum and Articles of Association, which have received the approval of the Charity Commission.

Method of appointment or election of Trustees

One third of the Trustees must retire at each AGM, those longest in office retiring first. A retiring Trustee who remains qualified may be reappointed. At the date of the Annual General Meeting held on 18 June 2024, two Trustees were eligible to retire by rotation, namely Christine Clinton and Claudette Neville and both were reappointed to remain on the Board for at least a further year in office. Trustee Victoria Lepadden has indicated that she will resign from the Board at the forthcoming meeting on 20 November 2024. New trustees will continue to be recruited in 2024/25.

Policies adopted for the induction and training of Trustees

The Society has an appointment and induction programme for Trustees covering the work of the charity including visits to the two homes and an opportunity to meet the Chair of Trustees, the Chief Executive, Executive Management Team, the staff, and the residents.

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Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society (A Company Limited by Guarantee)

Trustees’ Report (continued) For the Year Ended 31 October 2024

The programme includes an explanation of the latest financial position, the current year's budget and the longer-term strategies and business plans of the Society. New Trustees are given copies of the Memorandum and Articles of Association together with a Trustee Information Pack which includes Terms of Reference, Annual Report and Financial Statement and a list of Policies and Procedures. Ongoing online training is provided to Trustees by Hempson Charity Solicitors on the subject of Governance Principles in respect of legal duties and responsibilities of charity Trustees as well financial governance. The Trustees also undertake online statutory training such as Safeguarding of Vulnerable Adults and GDPR.

Pay policy for senior staff

The goal of the Charity’s pay policy is to offer fair pay to attract and retain appropriately qualified staff to lead, manage, support and deliver the Charity’s purpose and aims. It will always be consistent with these aims and within an affordable framework.

The Trustees are responsible for setting remuneration levels for the Charity’s staff and reviewing pay for the most senior staff. These senior staff are clearly identified by the Trustees and will typically, although not always, be part of the Charity’s executive or senior management team.

The Charity’s Remuneration Policy follows the National Council for Voluntary Organisation’s (NCVO) guidance of which the Mortimer Society is a member and/or the guidance from the Association of Chief Executives in Voluntary Organisations.

Organisational structure and decision making

The Board of Trustees discharges its responsibility of overseeing the management practice of the Society at its quarterly general and additional meetings and by delegating specific projects to sub-groups if appropriate. The Trustees are, at present, the only members of the Mortimer Society and are entitled to attend and vote at all Annual General Meetings.

The day-to-day management of the Society is delegated to the Chief Executive and to the Executive Management Team. The operational management and the running of the two homes is carried out by the Head of Care/Registered Manager with the assistance from the Head of Operations. Major policy questions affecting the future of the Society are discussed between the Executive Management team and the Trustees who are responsible for making the final decisions.

In November 2017 the Society adopted the principles contained in the revised Charity Good Governance Code which is a Code containing seven main principles as recommended by the Charities Commission for use by Charities in England and Wales. The Society continues to operate within these principles which have been adapted and updated in November 2024 to reflect the nature of the business within the care sector. These principles are reviewed annually as part of the strategic review carried out by Trustees with the Executive Management Team.

Risk management

The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the Society and are satisfied that systems and procedures are in place to mitigate their exposure to the major risks.

PLANS FOR FUTURE PERIODS

Future developments

The main aims and objectives of the Society during 2024/25 will be to:

Page 10

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society (A Company Limited by Guarantee)

Trustees’ Report (continued) For the Year Ended 31 October 2024

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees, who are also the directors for the purposes of company law, 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).

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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safe guarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 11

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society (A Company Limited by Guarantee)

Trustees’ Report (continued) For the Year Ended 31 October 2024

AUDITOR

The Society’s auditors are appointed by a Resolution of the Society’s Annual General Meeting.

At the last AGM, UHY Hacker Young were re-appointed as auditors following a unanimous decision made by the Trustees.

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

This report was approved by the Trustees on 20 March 2025 and signed on their behalf by:

Dr D J Oliver, Chair

Page 12

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Independent Auditors' Report to the Trustees of The Mortimer Society

Opinion

We have audited the financial statements of The Mortimer Society (the 'society') for the year ended 31 October 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 charitable company'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 Auditors' 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, except to the extent otherwise explicitly stated in our report, 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.

Opinion on other matters prescribed by the Companies Act 2006

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

Page 13

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Independent Auditors' Report to the Trustees of The Mortimer Society (continued)

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 Trustees' Report including the Strategic Report.

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

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, 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.

Auditors' 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 Auditors' 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

How the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:

Page 14

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Independent Auditors' Report to the Trustees of The Mortimer Society (continued)

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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.

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 Auditors' Report.

Use of our report

This report is made solely to the charitable Society's trustees, 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 Society'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 charitable Society and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Tracey Moore BFP ACA (Senior Statutory Auditor)

for and on behalf of

UHY Hacker Young Chartered Accountants Statutory Auditors Thames House Roman Square Sittingbourne Kent ME10 4BJ

Date: 21 March 2025 | 05:01 PDT

Page 15

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Statement of financial activities (incorporating income and expenditure account) For the Year Ended 31 October 2024

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Total expenditure
Net (expenditure)/income
Transfers between funds
17
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2024
£
12,901
4,943,726
2,830
49,768
5,009,225
19,085
5,018,249
5,037,334
(28,109)
248,879
220,770
5,008,892
220,770
5,229,662		 Restricted
funds
2024
£
99,913
-
-
-
99,913
-
18,418
18,418
81,495
(248,879)
(167,384)
170,096
(167,384)
2,712		 Total
funds
2024
£
112,814
4,943,726
2,830
49,768
5,109,138
19,085
5,036,667
5,055,752
53,386
-
53,386
5,178,988
53,386
5,232,374		 Total
funds
2023
£
230,564
4,496,371
2,875
25,030
4,754,840
18,950
4,748,931
4,767,881
(13,041)
-
(13,041)
5,192,029
(13,041)
5,178,988

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 19 to 36 form part of these financial statements.

Page 16

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee) Registered number: 01741444

Balance Sheet As at 31 October 2024

Note
Fixed assets
Tangible assets
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one year
16
Net current assets
Total net assets
Charity funds
Restricted funds
17
Unrestricted funds
17
Total funds		 287,365
1,059,812
1,347,177
(290,505)		 2024
£
4,175,702
1,056,672
5,232,374
2,712
5,229,662
5,232,374		 179,177
1,266,924
1,446,101
(304,577)		 2023
£
4,037,464
1,141,524
5,178,988
170,096
5,008,892
5,178,988

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Dr. D. Oliver (Chair of Trustees)

Date: 20 March 2025

The notes on pages 19 to 36 form part of these financial statements.

Page 17

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Statement of Cash Flows For the Year Ended 31 October 2024

Note
Cash flows from operating activities
Net cash used in operating activities
19
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
20		 2024
£
78,820
49,768
(335,700)
(285,932)
(207,112)
1,266,924
1,059,812		 2023
£
207,538
25,030
(107,279)
(82,249)
125,289
1,141,635
1,266,924

The notes on pages 19 to 36 form part of these financial statements

Page 18

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

1. General information

The Mortimer Society is a charitable company limited by guarantee, registered in England and Wales. Its registered office is 42 Hollywood Lane, Frindsbury, Rochester, Kent, ME3 8AL.

The nature of the Society's operations, and its principal activity is to provide relief of suffering for people with physical and/or learning difficulties and/or physical and/or mental illness of any description, including people suffering from Huntington's disease.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) (second edition) - 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (January 2022) and the Companies Act 2006.

The Mortimer Society meets the definition of a public benefit entity under FRS 102.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The currency used in the financial statements is Pound Sterling.

2.2 Going concern

The accounts have been prepared on the going concern basis. The Trustees assess the reasonableness of the assumption of the charity to continue as a going concern for a period of 12 months from the date the financial statements are signed.

The considerations made in this assertion include the review of the current and future operations of the Society, together with a review of its cash and reserves position up to the end of March 2026. The free reserves of the Society are currently inline with its stated reserves policy, as detailed on page 8 of the Trustees’ Report, which is considered appropriate to provide the Society with enough flexibility to continue to provide a high standard of care to its beneficiaries, should there be any interruption in the receipt of income.

No material uncertainties that may cast significant doubt about the ability of the Society to continue as a going concern have been identified by the Trustees.

2.3 Income

All income is recognised once the Society has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Donated goods are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the item is probable and that economic benefit can be measured reliably.

Page 19

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society (A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

2. Accounting policies (continued)

2.3 Income (continued)

Provision of care services

Fees from a contract to provide care related services are recognised in the period in which the services are provided on an accruals basis. Any fees invoiced in advance are included within deferred income until the service has been provided. Fees that are invoiced in arrears are included within accrued income, based on the fixed fee rate for each individual resident. The Society's charitable activities are exempt from Value Added Tax. Income from investments and bank interest is included when receivable and the amount can be measured reliably.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Society to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Society's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Society and include the audit fees and costs linked to the strategic management of the Society.

2.5 Taxation

The Society is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Society is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively in the pursuance of charitable purposes. No tax charge has arisen in the year.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £2,500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 20

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

2. Accounting policies (continued)

2.6 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

2.7 Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.8 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition, a fixed 6 month maturity or opening of the deposit or similar account.

2.9 Liabilities and provisions

Creditors and provisions are recognised where the charity has an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

2.10 Financial instruments

The Society 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 bank loans which are subsequently measured at amortised cost using the effective interest method.

2.11 Operating leases

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

2.12 Pensions

The Society operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Society to the fund in respect of the year.

Page 21

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

2. Accounting policies (continued)

2.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Society 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 funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Society for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

Useful Economic Life of Assets

Given that the Society's tangible fixed assets comprise land and buildings and different items of furniture and equipment, signifianct judgements have to be made by management and the Trustees in determining the useful economic lives of these assets.

4. Income from donations and legacies

Donations
Donations
Grants
Total 2024
Total 2023		 Unrestricted
funds
2024
£
4,401
8,500
12,901
8,010		 Restricted
funds
2024
£
-
99,913
99,913
222,554		 Total
funds
2024
£
4,401
108,413
112,814
230,564		 Total
funds
2023
£
8,010
222,554
230,564

Page 22

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

5. Income from charitable activities

Provision of care services
Total 2023
6.
Income from other trading activities
Income from fundraising events
Fundraising
Total 2023
7.
Investment income
Bank deposit interest
Total 2023		 Unrestricted
funds
2024
£
4,943,726
4,496,371
Unrestricted
funds
2024
£
2,830
2,875
Unrestricted
funds
2024
£
49,768
25,030		 Total
funds
2024
£
4,943,726
4,496,371
Total
funds
2024
£
2,830
2,875
Total
funds
2024
£
49,768
25,030		 Total
funds
2023
£
4,496,371
Total
funds
2023
£
2,875
Total
funds
2023
£
25,030

Page 23

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

8. Expenditure on raising funds

Fundraising trading expenses

Fundraising
Total 2023		 Unrestricted
funds
2024
£
19,085
18,950		 Total
funds
2024
£
19,085
18,950		 Total
funds
2023
£
18,950

9. Analysis of expenditure on charitable activities

Summary by fund type

Provision of care services
Total 2023		 Unrestricted
funds
2024
£
5,018,249
4,748,931		 Restricted
funds
2024
£
18,418
-		 Total
2024
£
5,036,667
4,748,931		 Total
2023
£
4,748,931

10. Analysis of expenditure by activities

Provision of care services
Total 2023		 Activities
undertaken
directly
2024
£
4,583,372
4,336,821		 Support costs
2024
£
453,295
412,110		 Total
funds
2024
£
5,036,667
4,748,931		 Total
funds
2023
£
4,748,931

Page 24

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

10. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Depreciation
Staff recruitment
Travel and other staff costs
Resident costs including food and household expenses
Property costs
Insurance
Agency costs
General office costs
Professional fees
Bad debts
Total 2023		 Provision of
care services
2024
£
3,337,441
197,462
11,728
83,731
473,549
192,485
41,088
222,383
23,079
426
-
4,583,372
4,336,821		 Total
funds
2024
£
3,337,441
197,462
11,728
83,731
473,549
192,485
41,088
222,383
23,079
426
-
4,583,372
4,336,821		 Total
funds
2023
£
3,214,960
158,977
4,244
64,373
503,704
163,540
38,160
185,259
2,125
60
1,419
4,336,821

Analysis of support costs

Staff costs
General office costs
Communications
Professional fees
Bank charges
Governance costs
Total 2023		 Provision of
care services
2024
£
368,961
59,775
4,575
6,100
1,122
12,762
453,295
412,110		 Total
funds
2024
£
368,961
59,775
4,575
6,100
1,122
12,762
453,295
412,110		 Total
funds
2023
£
313,527
67,348
3,868
17,253
1,049
9,065
412,110

Page 25

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

11. Auditor's remuneration

2024 2023
£ £
Fees payable to the Society's auditor for the audit of the Society's annual accounts (inclusive
of VAT) 11,040 10,656

12. Staff costs

Wages and salaries
Social security costs
Pension costs		 2024
£
3,387,316
244,141
74,945
3,706,402		 2023
£
3,244,525
219,026
64,936
3,528,487

During the year the Society made a redundancy payment totalling £38,796 (2023: £nil). This payment was made to one employee as part of an agreed redundancy. The costs have been included within staff costs in the Statement of Financial Activities.

The redundancy payment was made in accordance with the Society's contractual obligations. No amounts were outstanding at the Balance Sheet date.

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

Provision of care services
Administration and support
Senior management
The average headcount expressed as full-time equivalents was:
Provision of care services
Administration and support
Senior management		 2024
No.
130
12
3
145
2024
No.
125
10
3
138		 2023
No.
128
12
1
141
2023
No.
127
11
1
139

Page 26

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

12. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

In the band £60,001 - £70,000

2024 2023 No. No. 1 1

The key management personnel of the charity comprise the Trustees, the Chief Executive Officer and the Senior Management Team. The total aggregate amount of employee benefits (including employer national insurance and pension contributions) received by key management personnel for their services to the charity was £246,962 (2023: £200,963).

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2023 - £NIL) .

During the year ended 31 October 2024, expenses totalling £ 92 were reimbursed to 2 Trustees (2023 - £458 ), in respect of expenses incurred for mileage and training costs.

14. Tangible fixed assets

Cost
At 1 November 2023
Additions
Disposals
Transfers between classes
At 31 October 2024
Depreciation
At 1 November 2023
Charge for the year
On disposals
At 31 October 2024
Net book value
At 31 October 2024
At 31 October 2023		 Freehold
property
£
5,393,082
50,257
-
308,423
5,751,762
1,564,907
128,024
-
1,692,931
4,058,831
3,828,175		 Motor vehicles
£
72,367
-
-
-
72,367
72,367
-
-
72,367
-
-		 Fixtures and
fittings
£
1,030,988
14,939
(390,440)
-
655,487
859,618
69,438
(390,440)
538,616
116,871
171,370		 Assets under
construction
£
37,919
270,504
-
(308,423)
-
-
-
-
-
-
37,919		 Total
£
6,534,356
335,700
(390,440)
-
6,479,616
2,496,892
197,462
(390,440)
2,303,914
4,175,702
4,037,464

Included in land and buildings is freehold land with an estimated cost of £179,608 which is not depreciated.

Page 27

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

15. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments
Creditors: Amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 November
Resources deferred during the year
Amounts released from previous periods		 2024
£
258,688
3,905
24,772
287,365
2024
£
75,871
55,471
72,473
86,690
290,505
2024
£
47,208
51,472
(47,208)
51,472		 2023
£
151,858
4,152
23,167
179,177
2023
£
45,772
57,649
51,499
149,657
304,577
2023
£
30,289
47,208
(30,289)
47,208

16. Creditors: Amounts falling due within one year

Income relating to the provision of care services has been deferred as it was received in advance of the agreed performance obligation. The Society has not met the criteria to recognise this income as revenue and it has been deferred until the revenue recognition criteria has been met.

Page 28

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

17. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Birling House donations
Frindsbury House donations
Fixed assets
Birling House Fundraising
Frindsbury House Fundraising
The Dorothy Twiggins Charitable
Trust
General funds
General Funds - all funds
Total Unrestricted funds		 Balance at 1
November
2023
£
7,299
53
4,037,464
7,283
980
-
4,053,079
955,813
5,008,892		 Income
£
1,717
2,684
-
987
732
8,500
14,620
4,994,605
5,009,225		 Expenditure
£
(3,889)
(823)
(197,462)
(2,581)
(135)
(4,661)
(209,551)
(4,827,783)
(5,037,334)		 Transfers
in/out
£
-
-
335,700
-
-
-
335,700
(86,821)
248,879		 Balance at 31
October 2024
£
5,127
1,914
4,175,702
5,689
1,577
3,839
4,193,848
1,035,814
5,229,662

Page 29

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

17. Statement of funds (continued)

Restricted funds
Albert Gubay Charitable Foundation
Garfield Weston Foundation
The Iron Bridge Trust
Screwfix Foundation
The Hospital Saturday Fund
The Sir James Roll Charitable Trust
Percy Bilton Charity
Cantiacorum Foundation
The Edward Gosling Foundation
The Clothworkers Foundation
Douglas Arter Foundation
Kent County Council
Charlotte Marshall Charitable Trust
Medway Council
Gardening with Disabilities Trust
The Lawson Trust
HDH Wills 1965 Charitable Trust
Total of funds		 Balance at 1
November
2023
£
160,867
7,081
2,000
148
-
-
-
-
-
-
-
-
-
-
-
-
-
170,096
5,178,988		 Income
£
-
-
-
-
2,800
1,500
3,841
3,420
25,000
50,000
500
500
452
400
1,500
8,000
2,000
99,913
5,109,138		 Expenditure
£
-
-
(2,000)
(148)
(800)
(1,500)
(3,841)
(2,507)
-
-
(500)
(500)
-
(400)
(1,500)
(4,127)
(595)
(18,418)
(5,055,752)		 Transfers
in/out
£
(160,867)
(7,081)
-
-
(2,000)
-
-
(58)
(25,000)
(50,000)
-
-
-
-
-
(3,873)
-
(248,879)
-		 Balance at 31
October 2024
£
-
-
-
-
-
-
-
855
-
-
-
-
452
-
-
-
1,405
2,712
5,232,374

Page 30

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

17. Statement of funds (continued)

Designated funds

The Birling and Frindsbury House designated funds hold donations received at each house during the year. These individual funds will be used to fund purchases of items outside of the general operating budget of the charity and the managers and staff at each of the homes will be able to suggest ideas on how they believe this should be spent.

The designated fixed assets fund represents the net book value of tangible and intangible assets. An amount is transferred to or from the fund each year representing the movement in the net book value of tangible fixed assets at the year end.

Unrestricted funds

These are 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.

Restricted funds

The Albert Gubay Charitable Foundation

The Foundation pledged £160,867 towards the Frindsbury House lift project. The funds were fully spent in the year.

The Garfield Weston Foundation

The Foundation pledged £30k towards the Frindsbury House lift project. The funds brought forward into 23/24 financial year were fully spent in the year.

The Iron Bridge Trust

The Society received a grant to use towards the refurbishment of the sensory room at Birling House. The funds were fully spent in the year.

Screwfix Foundation

A pledge was made by the Foundation to cover the costs of furnishing the sensory room at Birling House. The funds brought forward into 23/24 financial year were fully spent in the year.

The Hospital Saturday Fund

A pledge was made by the Foundation for £2k towards the Frindsbury House lift project and a further £800 was pledged for a Hydrotilt chair for a resident. The funds were fully spent in the year.

The Sir James Roll Charitable Trust

A pledge was made by the Foundation for £1.5k towards a garden shed at Birling House. The funds were fully spent in the year.

Percy Bilton Charity

A pledge was made by the Foundation for £3.8k towards a shower trolley at Birling House. The funds were fully spent in the year.

Cantiacorum Foundation

The funds have been received by the Society to fund music therapy at Frindsbury House. The remaining funds will be spent in the 24/25 financial year.

The Edward Gosling Foundation

The Foundation pledged £25k towards the Frindsbury House lift project. The funds were fully spent in the year.

The Clothworkers Foundation

The Foundation pledged £50k towards the Frindsbury House lift project. The funds were fully spent in the year.

Douglas Arter Foundation

The Foundation pledged £500 towards the sensory garden at Frindsbury House. The funds were fully spent in the year.

Kent County Council

A pledge was made by the local council for £500 towards a garden shed at Birling House. The funds were fully spent in the year.

Page 31

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

17. Statement of funds (continued)

Charlotte Marshall Charitable Trust

A pledge was made by the Foundation for £452 towards a cocoon bed system at Frindsbury House. The funds will be spent in the 24/25 financial year.

Medway Council

A pledge was made by the local council for £400 towards activities for residents at Frindsbury House. The funds were fully spent in the year.

Gardening with Disabilities Trust

A pledge was made by the Foundation for £1.5k towards a garden shed at Birling House. The funds were fully spent in the year.

The Lawson Trust

A pledge was made by the Foundation for £8k towards shower chairs at both houses. The funds were fully spent in the year.

HDH Wills 1965 Charitable Trust

A pledge was made by the Foundation for £2k towards activities for residents at Frindsbury House. The remaining funds will be spent in the 24/25 financial year.

Page 32

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

17. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Birling House donations
Frindsbury House donations
Fixed assets
Birling House Fundraising
Frindsbury House Fundraising
General funds
General Funds - all funds
Total Unrestricted funds
Restricted funds
Albert Gubay Charitable Foundation
Garfield Weston Foundation
The Iron Bridge Trust
Screwfix Foundation
The Hospital Saturday Fund
The Sir James Roll Charitable Trust
Percy Bilton Charity
Cantiacorum Foundation
Total of funds		 Balance at
1 November
2022
£
2,407
10,227
4,097,214
9,149
955
4,119,952
1,072,077
5,192,029
-
-
-
-
-
-
-
-
-
5,192,029		 Income
£
7,100
910
-
1,979
101
10,090
4,522,196
4,532,286
1,500
4,987
3,200
2,000
5,000
15,000
30,000
160,867
222,554
4,754,840		 Expenditure
£
(2,208)
(11,084)
(158,977)
(3,845)
(76)
(176,190)
(4,591,691)
(4,767,881)
-
-
-
-
-
-
-
-
-
(4,767,881)		 Transfers in/out
£
-
-
99,227
-
-
99,227
(46,769)
52,458
(1,500)
(4,839)
(3,200)
-
(5,000)
(15,000)
(22,919)
-
(52,458)
-		 Balance at
31 October
2023
£
7,299
53
4,037,464
7,283
980
4,053,079
955,813
5,008,892
-
148
-
2,000
-
-
7,081
160,867
170,096
5,178,988

Page 33

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

18. Analysis of net assets between funds

Analysis of net assets between funds - current period

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2024
£
4,175,702
1,344,465
(290,505)
5,229,662		 Restricted
funds
2024
£
-
2,712
-
2,712		 Total
funds
2024
£
4,175,702
1,347,177
(290,505)
5,232,374

Analysis of net assets between funds - prior period

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2023
£
4,037,464
1,276,005
(304,577)
5,008,892		 Restricted funds
2023
£
-
170,096
-
170,096		 Total
funds
2023
£
4,037,464
1,446,101
(304,577)
5,178,988

19. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the period (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Dividends, interests and rents from investments
Loss on the sale of fixed assets
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities		 2024
£
53,386
197,462
(49,768)
-
(108,188)
(14,072)
78,820		 2023
£
(13,041)
158,979
(25,030)
8,047
71,746
6,837
207,538

Page 34

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

20. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2024
£
1,059,812
1,059,812		 2023
£
1,266,924
1,266,924

21. Analysis of changes in net debt

Cash at bank and in hand
Capital commitments
Contracted for but not provided in these financial statements
Acquisition of tangible fixed assets		 At 1 November
2023
£
1,266,924
1,266,924		 Cash flows
£
(207,112)
(207,112)
2024
£
80,256		 At 31 October
2024
£
1,059,812
1,059,812
2023
£
333,317

22. Capital commitments

The above commitment refers to fire safety and fire compartmentalisation works at Birling House, the works began in November 2024. The prior year comparative relates to the Frindsbury House passenger lift. Work began on this capital project in October 2023 and was completed in June 2024.

23. Pension commitments

The Charity operates a defined contribution pension scheme open to all permanent employees. During the year the Charity contributed £74,945 (2023: £64,936) on behalf of employees who have opted into the scheme. Of these contributions £31,596 (2023: £14,752) remained outstanding at the balance sheet date and is included within current liabilities.

Page 35

Docusign Envelope ID: BFA713D2-67F0-4B9D-85D8-2AEB0E734B6F

The Mortimer Society

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 October 2024

24. Operating lease commitments

At 31 October 2024 the Society had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2024
£
15,808
20,699
36,507		 2023
£
15,871
34,087
49,958

25. Members' liability

Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.

26. Related party transactions

During the year the charity received donations totalling £600 from the Trustees, without conditions (2023: £200) .

Page 36