2024-12-31-accounts

BETH-EZRA TRUST

TRUSTEES’ ANNUAL REPORT

AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

Company Number 1600026 (England and Wales) Charity No. 326000

BETH-EZRA TRUST

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Contents	Pages
Trustees’ Annual Report	3 - 8
Independent Auditor’s Report	9 - 11
Statement of Financial Activities	12
Balance Sheet	13
Notes to the Financial Statements	14-20

Pages

Legal & Administrative Information

Directors and Trustees:

B R Condlyffe-Morse-Glover T J Dench S Lambert B E Neate C R Tomkins P H Verzhbitskaya G Whiting Company Secretary P H Verzhbitskaya Treasurer P H Verzhbitskaya Home Manager L Akeh Registered Office: 52 Smitham Bottom Lane Purley Surrey CR8 3DB Company number 1600026 Charity number 326000 Main Bankers: Barclays Bank Plc Auditors: Collards Chartered Accountants 5-9 Eden Street Kingston-upon-Thames Surrey KT1 1BQ Solicitors:

Knights plc Cedar House 78 Portsmouth Road Cobham Surrey KT11 1AN

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BETH-EZRA TRUST TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The Trustees present their annual directors’ report and the audited financial statements of the Charity for the year ended 31 December 2024 which are prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes. The Trustees confirm that the audited financial statements comply with the requirements of the Companies Act 2006, the Charities Act 2011, the Memorandum and Articles of Association, Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard 102, and Financial Reporting Standard 102.

Objectives of the Charity, principal activities and organisation of our work

The Charity is constituted as a company limited by guarantee and is therefore governed by its Memorandum and Articles of Association. The objectives of the Charity are to promote and provide care primarily for the elderly and infirm members of the Dawn Christadelphian Fellowship together with other persons if rooms are not filled. It does this through its principal activity, the running of Beth Ezra, a Care Home situated at 52 Smitham Bottom Lane, Purley, Surrey.

Our mission statement is: “To provide a quality care home for Christadelphians and others in a Christian setting that supports the spiritual, mental and physical needs of the residents in pleasant, peaceful and secure surroundings” .

The Charity strives to provide the highest quality of care within Beth-Ezra coupled with a loving and spiritual environment. Its policy is to exceed, wherever practicable, standards that are laid down by the relevant authorities for the running of care homes.

In undertaking its activities, the Trustees have paid due regard to the Charity Commission guidance on public benefit and are satisfied that the Charity confers a public benefit.

How our activities deliver public benefit

All of our charitable activities focus on providing care for the elderly and are undertaken to further our charitable aims for the public benefit. Our main activities and who we help are:

• The provision of residential care for Dawn Christadelphians and others in need by reason of age and poor health.

• The advancement of religion through its care home, Beth Ezra, which provides a haven where elderly members of the Dawn Christadelphian community can continue to benefit from being part of our Bible based community. Therefore, the home places great emphasis on providing regular spiritual activities such as daily Bible readings, Bible classes, hymn singing sessions and, most importantly, a service of worship each Sunday morning.

The beneficiaries

Beth Ezra’s activities are mainly for the benefit of aged, infirm or sick members of the Dawn Christadelphian Fellowship. Dawn Christadelphians are active in promoting their beliefs in the hope that other men and women will be persuaded of the truth of the Gospel and thereby join our community. Therefore, although there are conditions of membership, these conditions are only based on a shared conviction of God’s purpose in Jesus Christ, and not on any limitation imposed by geography, race, gender, or wealth.

All who qualify as members of the worldwide Dawn Christadelphian Fellowship and whose needs are assessed according to accepted Care Standards as being suitable for the care home are happily accepted as residents, subject to a suitable room being available. By providing a home for these members of the Dawn Christadelphian Fellowship, they are enabled to spend their final years together with like-minded members sharing the same religious beliefs and lifestyle. That so many members choose to come to Beth Ezra even if it is not the closest care home to where they have been living, nor necessarily close to family members, is indicative of the value that they place on this choice and the subsequent benefit they derive from it.

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BETH-EZRA TRUST

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Beth Ezra provides benefits to other people if there are vacant rooms and if, at the time, there is no call on that vacancy from a Dawn Christadelphian. In such cases, the Trustees will consider making the room available to a person who is not a Dawn Christadelphian, but particular care is taken to ensure that the potential resident would be sympathetic to the faith-based ethos of the home.

Development, activities, achievements and financial review this year

Beth Ezra continues to provide excellent care in an environment that provides for the spiritual, the practical and the emotional, prioritising the needs of each resident and accommodating their wishes. Activities continue to be many and varied with spiritual activities including a Sunday morning service of worship, daily Bible readings and connection via Zoom to events at other ecclesias such as Bible classes, lectures and fraternals. Other activities have included visits from musicians of all kinds, crafts, games and a memorable visit from some farm animals in February.

The labour market has remained tight and use of agency staff remains higher than ideal but this has continued to improve over the year and the home has a good base of dedicated staff. Once again, wage increases have been key and all staff received a bonus payment in December.

During the year, under God’s good hand, we have provided residential care for a total of 21 permanent residents and 4 short-term stays. We have made a number of improvements to the home as detailed under the section headed “Tangible fixed assets and impairment review” .

At the end of 2024, we commissioned a rebrand of our logo as well as an updated website which is now live. As well as refreshing the content and layout to bring it up to date, the website now includes the weekly activities schedule and menu.

The Trust generated net income for the year of £53,198 (2023 net income £32,577). Ignoring bequests, donations, financial assistance and gains on investments, the operating deficit was £13,443 (2023 deficit of £24,069), which highlights the need to maintain a substantial cash reserve. Occupancy levels and subsequent financial performance can vary significantly year on year, and the Trustees have a reserves policy so that reserves can be maintained at a level sufficient to meet the challenges the Charity faces in the medium term. This reserves policy is reviewed annually to reflect the changing operating circumstances and general business climate.

The financial position at the end of the year is sound with cash balances of £546,046 (2023 £518,080) and net current assets of £1,367,200 (2023 £1,198,087).

We have updated our formal business plan that projects three years into the future. This provides an invaluable planning and budgeting tool and assists in maintaining appropriate financial controls. Beth-Ezra continues to be dependent on major bequests, and promotional activities continue to encourage the members of our community to remember the Charity both in regular donations and in their Will. The Trust continues to offer assistance to residents who have need to call upon state funding during their stay at Beth Ezra, and financial assistance in the sum of £10,853 was given in 2023 (2023 £10,903). The Trustees are grateful to those who have made donations to the funds during the year.

The Trustees are very aware of the need to maintain a high room utilisation, both to better fulfil our charitable purpose, but also to reduce operating losses to a manageable level. Occupancy is one of the criteria used to assess success and Beth Ezra achieved an average resident occupancy of 96% during 2024 and also 96% when room occupancy is used.

Our independent Quality Assurance Review which seeks the views about current service provision from residents, relatives, advocates and visitors was undertaken in June 2024. The results have been shared with stakeholders.

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BETH-EZRA TRUST

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The findings of the report show an even greater level of satisfaction with residents living happily and feeling safe and well cared for. Fundamentally, the survey also showed that the religious ethos of Beth Ezra was strongly supporting the discipleship of the residents. For other activities, a new Activities Coordinator has contributed greatly following a period of transition. Communication with staff has improved and further quick wins were identified to aid greater communication going forward.

As in previous years, a separate staff survey was carried out in September 2024 and points for improvement have been actioned. A second smaller survey was carried out in March 2025 to assess progress in key areas.

Remuneration of the management team is set by the Managing Trustees within the annual budget agreed by the Board of Trustees and is subject to annual review with reference to similar local positions in the care industry. We would like to warmly thank all who have helped in the management team and their staff for their loyalty and hard work and all those who have contributed in any way to this work for the Lord.

Future Developments

While we were able to keep the fee increase below 5% in 2024, our annual review of fees in 2025 has had to take account of the considerable increase in minimum wage in April 2025 and significant changes to both the percentages applied and the nil rate band for employer’s National Insurance. To cover these additional government mandated costs and avoid operating at a loss, it would have been necessary to increase the fees by 15% across all bands. However, by using income generated from capital held by Beth-Ezra Trust and spreading the cost over more than one year, we have kept the increase down to 5.9% across all bands. In effect, every resident is being subsidised by the charity.

The care sector in the UK continues to be challenged by the apparent contradiction between the cost of providing good care and complying with the requirements of the Care Quality Commission who regulate the industry and the limitations of state funding which does, in some cases, fall considerably short of the full cost of providing such care. We continue to receive state funding for some residents and have been very blessed to have received support from other sources, personal and charitable, that partially covers the deficit where state funding is not at the level required to meet our costs.

Although the Trustees are conscious of the overruling hand of God, they are also very aware of the need for sound management practice and prudent financial controls. There are sufficient reserves for at least the next twelve months, assuming no significant legislative changes or amendments to state funding of care places, and the Home continues to operate on a sound financial footing. The Trustees are confident that Beth Ezra will continue to provide a high standard of care for its residents for the foreseeable future.

Tangible fixed assets and impairment review

The Trust owns four investment properties, one residential and three commercial. The rents from these generate revenue to subsidise charitable operations. The commercial properties are let on the open market while the residential property is situated next door to the Home and is offered first to those who would like to live close to the Home but are not yet ready to become residents there. If a tenant cannot be found who meets these criteria, it is let on the open market.

The residential property was let for the whole of 2024. Two of the commercial properties were let for the whole year and the third, which had been fully provided against at 31 December 2023, was let to a new tenant in August 2024.

The Home is in good condition as a result of an ongoing programme of planned maintenance. The Trustees consider the fabric of the building to be sound.

5

BETH-EZRA TRUST

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Changes in tangible fixed assets during the year are as set out in Note 5 to the accounts on page 17. As part of managing the assets, the fixed asset register and depreciation policy has been reviewed in the year. A programme of on-going refurbishment and equipment replacements has been prepared which includes the replacement of a number of equipment items as they reach the end of their service life. Capital expenditure on buildings in 2024 was £7,577 and on fixtures and fittings, £4,214. The main additions were:

• Replacement equipment for the audio visual system

• New flooring for four resident rooms

• New ensuites for two resident rooms

Investment policy and returns

Under its Articles of Association, Beth-Ezra Trust has the power to make any investment which the Trustees see fit subject to any restrictions imposed by Law. These include diversified investment funds, bank deposits, bonds and investment property. The diversified investment funds do not exceed 20% of the total investment portfolio. The Trustees have also taken steps to reduce the risk of financial losses by spreading their cash reserves over a number of financial institutions.

Reserves

The Trustees have agreed a reserves policy that requires sufficient reserves to be maintained to cover at least two years budgeted operating deficit, being our financial performance ignoring any income from donations and bequests. This policy has been adopted because the Charity’s finances are largely dependent on bequests, and these cannot be anticipated or relied upon. Based on our Business Plan, the total budgeted operating deficit, excluding net investment income, in our General Fund for the next two years is £121,462, and the General Fund at the end of 2024 was £1,367,200.

At 31 December 2009, a designated fund was set up by transfer from the general fund to provide for the maintenance of the Charity’s tangible fixed assets. This Fixed Assets Fund at the end of 2024 was £1,840,234 (2023 £1,956,147).

Consequently, the Trustees believe that the present levels of the reserves are adequate to support the continuation of the Care Home for the medium term. They therefore consider the financial position of the Charity to be satisfactory and that the going concern basis of accounting is appropriate.

Directors and Trustees

All directors of the company are also Trustees of the Charity and there are no other Trustees. The Trustees meet quarterly, but also interact regularly between meetings by telephone and via e-mail exchanges (for example, through circulation of minutes from the Managing Trustee meetings). The Trustees delegate the day to day running of the home to the Home Manager and the Business Manager. The Trustees appointed by the Board as Managing Trustees are there to work closely with the management team and to act as a more effective and dynamic conduit between the management team and the main Board of Trustees. The Managing Trustees have delegated powers within which they must operate and report regularly to the board of Trustees and the Trust’s officers. During 2024, the Managing Trustees were T Dench, P Verzhbitskaya and G Whiting.

The Trustees served throughout the year except as noted on page 2. The board of Trustees has the power to appoint additional Trustees as it considers fit. New Trustees are selected by existing Trustees to serve until the following AGM and, if re-appointed by the members, can serve until age 75 subject to the rules relating to rotation in accordance with clause 33 of the Articles of Association. On reaching 75 years, Trustees can be reappointed on an annual basis. The Trustees identify the available skills and experience relating to the key areas of the Trust’s activities. This is particularly important when we seek to appoint new Trustees, as it helps to maintain the appropriate mix of skills and experience.

A comprehensive induction pack is available to acquaint new Trustees with the Charity’s policy and practice, its activities, management and governance and also what is expected of them under charity law, with particular reference to Charity Commission guidance publications. Charity Trustee training is also provided in partnership with the Institute of Chartered Accountants of England and Wales.

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BETH-EZRA TRUST TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Risk management

The Trustees actively review the major risks which the Charity faces with a comprehensive annual review at the September Board meeting and an update in February or May, and appropriate action is taken to mitigate each risk to an acceptable level. The Trustees recognise their responsibility to identify any new and emerging risks, and a Trustee is tasked with maintaining a formal risk register.

The principle risks and strategies for mitigation are:

• 1) Deficit in income where fees are partially covered by the state: the process of setting fees starts with a thorough annual budgeting process which looks forward three years. On admission, all new residents are asked to complete a financial form which indicates how long they can self-fund under the current system before seeking state assistance. For all partially state funded residents, management engage in robust negotiations with local authorities to ensure the best possible outcomes.

• 2) Energy costs and supply vulnerability: solar panels were fitted in 2022 with a small battery back up to allow excess generation to be captured for use in the home. Fixed rate contracts are sought where possible and where prices are considered reasonable taking forward rates into consideration.

• 3) Pandemics: from March 2020 through to March 2022, the care home sector experienced unprecedented disruption in staffing due to government and local council mandates on how homes were run, staff isolating, and rapid cost increases due to disruptions in supply chains worldwide. While the home cannot prevent future pandemics, it is in a stronger position now to manage the impact having undertaken a review of lessons learned during this period. It highlights again the need to maintain good reserve levels to ensure that funds are available to cope with higher than expected inflation and with the need to use agency staff.

• 4) Loss of key management and ineffectiveness in organisational structure: the home is reliant on two key management personnel, one of whom retired in April 2025, and the division of management responsibility relies on their close cooperation. Planning for the change in management commenced in late 2024 and the new incumbent is a former employee at Beth Ezra, known to residents and longer serving staff. Furthermore, management and the managing trustees compiled a comprehensive document listing all key tasks covering care, home and maintenance, human resources, information technology, company secretarial, finance, treasury, and liaison with the Care Quality Commission. For each task, primary and secondary responsibilities are allocated and tested, and this is reviewed biannually. Therefore if any key personnel leave, the organisation can continue to function effectively and efficiently.

• 5) Underutilisation of space resulting in income deficit: fees are the largest part of income and are driven directly from occupancy. Beth Ezra is a home set up to serve the needs of the Dawn Christadelphian community and this is shrinking in the United Kingdom which will result in fewer admissions over time. However, the home also accommodates residents from other Christadelphian communities and can take up to four non-Christadelphian residents. These are carefully integrated to ensure that the ethos of the home, which is what makes it so unique, remains intact.

Trustees' responsibilities in relation to the financial statements

The Trustees are required by company law to prepare financial statements for each financial year which give a true and fair view of the financial activities of the Charity and of its financial position at the end of that year. In preparing those financial statements the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• make judgments and estimates that are reasonable and prudent;

• prepare financial statements on the ongoing concern basis unless it is inappropriate to assume that the Charity will continue in operation;

• observe the methods and principles in the charity SORP; and

• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.

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BETH-EZRA TRUST TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The Trustees are responsible for keeping proper accounting records which 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 relevant Companies and Charities Acts (see note 1 in the notes to the Accounts). 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 can provide assurance that;

• The charitable company is operating efficiently and effectively;

• The assets are safeguarded against unauthorised use or disposition;

• Proper records are maintained and financial information used within the trust or for publication is reliable;

• The charitable company complies with its Memorandum and Articles of Association; and

• The charitable company has actively pursued all of its objectives and policies throughout the year.

Statement of disclosure of information to auditors

The Trustees who held office at the date of approval of this annual report confirm that:

• so far as they are aware there is no relevant audit information, information needed by the charitable company’s auditors in connection with preparing their report, of which the charitable company’s auditors are unaware; and

• they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish the charitable company’s auditors are aware of that information.

Auditors

A resolution proposing that Collards Chartered Accountants be re-appointed as auditors will be put to the members at the Annual General Meeting.

Approval

This report was prepared having taken advantage of the small companies’ exemption in the Companies Act 2006 and was approved by the Trustees on 10 May 2025 and signed on their behalf by:

Simon Lambert Director/Trustee

Date: 10 May 2025

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF BETH-EZRA TRUST

We have audited the financial statements of Beth-Ezra Trust (the ‘charitable company’) for the year ended 31 December 2024 which comprise the Statement of Financial Activities, the Balance Sheet, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including 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:

• give a true and fair view of the state of the charitable company’s affairs as at 31 December 2024, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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 trustees 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, 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.

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF BETH-EZRA TRUST

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors’ report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 require us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemption in preparing the directors’ report and from the requirement to prepare a strategic report.

Responsibilities of Trustees

As explained more fully in the trustees' responsibilities statement set out on page 7, 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 relating 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.

The trustees have elected for the financial statements to be audited in accordance with the Charities Act 2011 rather than the Companies Act 2006. Accordingly, we have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

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

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF BETH-EZRA TRUST

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 regulations made under section 154 of that Act.

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.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that act. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Harker Partner

For and on behalf of Collards Chartered Accountants

5-9 Eden Street Kingston-upon-Thames Surrey KT1 1BQ

Date: 10 May 2025

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BETH-EZRA TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2024 SUMMARY INCOME AND EXPENDITURE ACCOUNT

Notes INCOME FROM: Donations and legacies 2 Charitable activities: Residents' fees Miscellaneous income Investment income: Interest Rent Gross income in the reporting period EXPENDITURE ON: Raising funds: Investment management costs Charitable activities: Property expenses Staff costs 4 Food and consumables Other running costs Depreciation Assistance given to residents 5 Other: Governance costs Total expenditure in the reporting period Net income before gains on investments Net gains on investments 6 Net income/(expenditure) for the financial year 3 Total funds brought forward Total funds carried forward	Total Funds 2024 £ 25,144 1,067,251 1,831 34,729 54,242 1,183,197 8,782 116,096 828,555 61,340 77,069 38,027 10,853 1,140,722 6,898 1,147,620 35,577 17,621 53,198 3,154,236 3,207,434	Total Funds 2023 £ 20,437 1,034,170 3,179 24,147 39,115
		1,121,048
		27,073 117,120 786,224 60,890 57,906 44,764 10,903
		1,104,880 6,556
		1,111,436
		9,612 22,965
		32,577 3,121,659
		3,154,236

All of the income relates to continuing activities of the Charity. The Charity has no recognised gains or losses other than those reported above.

All funds are unrestricted.

The notes on pages 14 to 20 form part of these financial statements.

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BETH-EZRA TRUST BALANCE SHEET

AS AT 31 DECEMBER 2024

Notes Fixed Assets Tangible Assets 5 Investments 6 Current Assets Debtors 8 Investments 6 Cash at bank and in hand Liabilities Creditors: Amounts falling due within one year 9 Net current assets Total assets less current liabilities 10 The Funds of the Charity Unrestricted Funds: TOTAL CHARITY FUNDS 11	2024 £ 794,138 1,046,096 1,840,234 97,212 883,429 546,046 1,526,687 159,487 1,367,200 3,207,434 3,207,434 3,207,434	2023 £ 820,376 1,135,773
		1,956,149
		41,164 759,560 518,080
		1,318,804
		120,717
		1,198,087
		3,154,236
		3,154,236
		3,154,236

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

For the year ending 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies but as this company is a charity, it is subject to audit under the Charities Act 2011.

Directors’ responsibilities:

• The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476;

• The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

Approved by the trustees on 10 May 2025 and signed on their behalf by:

Simon Lambert Director/Trustee

Company number 1600026 (England and Wales)

The notes on pages 14 to 20 form part of these financial statements.

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BETH-EZRA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024

1

Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

1.1 Basis of preparation and going concern

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard 102 (“FRS 102”), Financial Reporting Standard 102 (effective 1 January 2015) and the Companies Act 2006. Beth-Ezra Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy note(s). All amounts in the financial statements have been rounded to the nearest pound sterling.

The charity holds sufficient funds to secure its immediate future for the next year, and on this basis, the assessment of the trustees is that the charity is a going concern.

The charity has not prepared a statement of cash flows and is in compliance with FRS 102 1A Bulletin 1.

1.2

Income recognition policies

Items of income are recognised and included in the accounts when all of the following criteria are met:

• The charity has entitlement to the funds;

• any performance conditions attached to the item(s) of income have been met or are fully within the control of the charity;

• there is sufficient certainty that receipt of the income is considered probable; and

• the amount can be measured reliably.

For legacies, entitlement is taken as the earlier of:

• the date on which the charity is aware that probate has been granted;

• the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made; or

• when a distribution is received from the estate.

Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity or the charity is aware of the granting of probate and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Residents’ fees received in advance of the provision of the service are deferred until the criteria for income recognition is met.

Government grants are recognised when there is reasonable assurance that the charity will comply with the conditions attaching to the grant and the grant will be received.

Gifts in kind are accounted for when received by the Charity.

1.3

Interest receivable

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.

1.4

Fund accounting

The general fund comprises income that is available to meet the general objectives of the Charity. The fixed assets fund is a designated fund for the maintenance of the Charity’s tangible fixed assets. Details of the movements on each of these funds are set out in note 11.

14

BETH-EZRA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies (continued)

1.5

Expenditure and irrecoverable VAT

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

• Expenditure on charitable activities includes the direct costs of running the residential care home, Beth Ezra, which is undertaken to further the purposes of the charity and associated support costs.

• Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity such as preparing and auditing statutory accounts and trustees’ expenses.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

1.6

Operating leases

Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

1.7 Fixed Assets: Tangible Assets

Individual fixed assets costing £500 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:

Additions to freehold and leasehold buildings 5-10% Fixtures and equipment 10%-25% Soft furnishings 20%

No depreciation has been charged on the original cost of freehold and leasehold land and buildings as it is the trust's policy to maintain its properties in a state of good repair and such expenditure is charged to the income and expenditure account in the period in which it is incurred. However, additions to buildings which are considered to have a finite useful life are depreciated at 5-10% on cost.

1.8 Fixed Assets: Investments

The charity holds one leasehold and three freehold properties which are valued annually: every fifth year by a professional valuer and in the intervening years by the Board with reference to current local markets.

Investments also include bonds with remaining maturity longer than one year. These are valued at transaction price including any transaction costs.

1.9 Current Assets: Investments

Investments held within Current Assets comprise:

• i) Bonds with remaining maturity between three months and one year. These are valued at transaction price including any transaction costs.

• ii) Accounts with notice periods of between three months and one year.

• iii) Listed Investments which are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value at the balance sheet date using the closing quoted market price. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or complex financial instruments.

1.10

Debtors

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

15

BETH-EZRA TRUST NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

1 Accounting policies (continued)

1.11 Cash at bank and in hand

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

1.12 Creditors and provisions

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

2

3

Income from donations and legacies Donations: Gifts Legacies Net incoming resources This is stated after charging: Depreciation of tangible fixed assets owned by the Charity Auditors' remuneration – audit	2024 £ 15,084 10,060 £25,144 2024 £ 38,027 5,250	2023 £ 19,937 500
		£20,437
		2023 £ 44,764 4,942

4 Employee information

The average number of staff employed during the year was 30 (2023: 32). Most of these were involved in the care of residents. Third party agencies are used to supply staff where necessary to supplement existing employees. These agency costs amounted to £36,546 in the year (2023: £48,341).

Staff costs for the year Wages and salaries Social security costs Employer’s contribution to defined contribution pension scheme Agency staff	2024 £ 718,364 58,754 14,891 36,546 £828,555	2023 £ 672,585 51,656 13,642 48,341
		£786,224

The management team received employee benefits of £1,993 (2023: £2,260) comprising employer pension benefits during the year. No employee received remuneration of more than £60,000.

16

BETH-EZRA TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

5 Fixed Assets: Tangible Assets

Cost As at 1 January 2024 Additions Disposals As at 31 December 2024 Accumulated depreciation As at 1 January 2024 Depreciation on disposals Charge for the year As at 31 December 2024 Net book value As at 31 December 2024 As at 31 December 2023	Freehold Property £ 882,993 7,577 - £890,570 123,682 - 17,258 £140,940 £749,630 £759,311	Fixtures and Equipment £ 236,013 4,214 (6,947) £233,280 174,948 (6,945) 20,769 £188,772 £44,508 £61,065	Total £ 1,119,006 11,791 (6,947)
			£1,123,850
			298,630 (6,945) 38,027
			£329,712
			£794,138
			£820,376

Freehold property includes an amount of £534,200 (2023: £534,200) on which no depreciation has been charged (see note 1.7). The trustees consider that the properties are in good condition and the net realisable value is higher than the book value. A formal valuation has not been obtained, as in the opinion of the trustees, the cost of a professional valuation would outweigh the benefit to the users of the accounts and a valid comparison with other properties cannot be made. All fixed assets are used for charitable purposes.

6 Investments

Fixed Assets: Investments Property Bonds Property: valuation As at 1 January Change in valuation As at 31 December	2024 £ 1,046,096 - £1,046,096 2024 £ 1,043,126 2,970 £1,046,096	2023 £ 1,043,126 92,647
		£1,135,773
		2023 £ 1,043,126 -
		£1,043,126

17

BETH-EZRA TRUST NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

6 Investments (continued)

Fixed Asset Investments: Property comprises one leasehold and three freehold properties which are let on a commercial basis.

Current Assets: Investments Listed investments Accounts due between 3 and 12 months Bonds Listed investments Fair value at 1 January Additions at cost Disposal proceeds Net gain on change in fair value As at 31 December Historic cost	2024 £ 441,638 82,280 359,511 £883,429 2024 £ 425,440 980,082 (981,505) 17,621 £441,638 £422,208	2023 £ 425,440 78,270 255,850
		£759,560
		2023 £ 402,815 356,990 (357,330) 22,965
		£425,440
		£383,364

Current Assets: Investments: Bonds comprises three bonds with an original maturity of one year and one bond with an original maturity of three years.

7 Capital commitments

There were capital commitments of £29,432 at the end of 2024 (2023 - nil).

8 Debtors Due within one year: Prepayments and other debtors Residents' fees Income tax recoverable Rents receivable	2024 £ 54,849 42,078 285 - £97,212	2023 £ 23,457 10,953 272 6,482
		£41,164

Rents receivable relate to accrued income from leasehold properties.

18

BETH-EZRA TRUST NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

9 Creditors Amounts falling due within one year: Trade creditors Residents fees paid in advance Taxation and social security Accrued expenses Deferred income Property rental deposits 10 Analysis of Net Assets Between Funds: Fixed Assets Current assets Current liabilities Total Fixed Assets Current assets Current liabilities Total		2024 £ 40,330 17,473 21,850 56,969 5,240 17,625 £159,487 Unrestricted Reserves 2024 £ 1,840,234 1,526,687 (159,487) £3,207,434 2023 £ 1,956,149 1,318,804 (120,717) £3,154,236	2023 £ 16,606 9,558 20,779 57,392 707 15,675 £120,717 Total Funds 2024 £ 1,840,234 1,526,687 (159,487)
			£3,207,434
			2023 £ 1,956,149 1,318,804 (120,717)
			£3,154,236

19

BETH-EZRA TRUST NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

11 Analysis of Movements on Funds:

Unrestricted Funds General Fund Fixed Assets Fund Total Funds	Opening Balance at 01-01-2024 Incoming Resources Resources Expended Transfers between funds Closing Balance at 31-12-2024 £ £ £ £ £ 1,198,087 1,200,818 (1,147,620) 115,915 1,367,200 1,956,149 - - (115,915) 1,840,234
	£3,154,236 1,200,818 (1,147,620) - 3,207,434

At 31 December 2009, a designated fund was set up by transfer from the general fund to provide for the maintenance of the Charity’s tangible fixed assets.

12 Legal entity

Beth-Ezra Trust is a private company limited by guarantee, incorporated and registered in England, and not having a share capital. Each member has a liability not exceeding £1.

The address of the registered office and its place of business is:

Beth Ezra 52 Smitham Bottom Lane Purley Surrey CR8 3DB

13 Trustees expenses and transactions with related parties

None of the Trustees were paid any remuneration or received any other benefits from an employment with the Charity or a related entity.

No expenses were paid to trustees during the year for reimbursement of business costs incurred on behalf of the charity (2023 - nil). There were no transactions with related parties.

Indemnity insurance at a cost of £1,648 (2023 - £1,614) was taken up during the year to protect the charity from loss arising from neglect or default of trustees and senior management and to indemnify trustees and senior management against the consequences of any neglect or default on their part. These costs are included in governance costs (see page 12).

14 Operating leases

The Charity has entered into a non-cancellable operating lease for telephone equipment. In the year to 31 December 2024, the Charity paid £4,428 in lease payments under this contract. The future minimum lease payments as at 31 December 2024 are as follows:

• Not later than one year: £4,428

• Later than one year and not later than five years: £12,177

20