Re8lStered number: 01746654 Charity number: 514418 THE BROOMGROVE TRUST (A company Ilmlted by guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 THE BROOMGROVE TRUST (A company limited by guarantee) CONTENTS Page Reference and admlnlstratlve detalls of the charlty, Its Trustees and advlsers Chalrman's statement Trustees, report Independent audltor's report on the fln•n¢lal statements 10-13 Statement of flnanclal actlvltles 14 Balance sheet 15-16 Statemefit of cash flows 17 Notes to the flnanclal statements 18-34 THE BROOMGROVE TRUST IA company Ilmlted by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2025 Trustees Dr A Ander50n MA BM BCH FRCP, Chairman Mrs J Cooper RGN, Trustee Mrs P Fox, Trustee (appointed 9 December 20241 Prof. C Franklin OBE FRCPath, Trustee Mrs S Holmes, Trustee Mr M N Pestereff FCA FCILT, Trustee Company re8lstered number 01746654 Charlty re8lstered number 514418 Reglstered offlce 30 Broomgrove Road Sheffield SIO 2LA Telephone- 0114 2661311 Email enqulries@broomgrove-trust.co.uk www.broomgrove-trust.co.uk Secretary Mlss A T Needham MAAT Senlor management team Ms Judlth Warburton, Reglstered Manager Mrs Janet Biggin, Clinical Nurse Manager Mrs Tracey Smithur5t, Cllnlcal Nurse Manager (resigned 4th June 20241 Mrs Helen Mehrotra, Clinical Nurse Lead lappointed 1st July 20241 Independent audltor BHP LLP Albert Works Sidney Street Sheffield 514RG Bankers HSBC Bank 17 Church Street Sheffield 512GJ Sollcltors In cDmmon with many organisations, The Broomgrove Trust uses a number of sollcitors depending on their expertise lamon85t other factors). The Trust's solicitors for normal business are Wrigleys Solicitors LLP 3rd Floor 3 Welllngton Place Leeds LS14AP Patron Mr A J Coombe DL FCA Page I THE BROOMGROVE TRUST (A company Ilmlted by guarantee) CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 The chairman presents his Statement for the year. It has remained a somewhat challenging year for the Broomgrove Trust. mainly as a result of the Government's increase in the National Living Wage and employers, national insurance contributions, which we had to honour. With reluctance. this could only be managed through a commensurate increase in the fees charged to our residents but, with this explanation, they accepted the need with good grace. We continue to develop an increasingly inclusive culture, to work hard on staff wellbelng and to invest in all of them through mandatory and development training. Our software system, PredicAire, is now well embedded in practlce and accepted by staff but they require continuing support to ensure that the care plans are internally con5iStent, personali5ed, reflective of need and are updated in real time and used. The guidance of Social Services in this has been much appreciated. A5 familiarity 8rows, information should be easier to find, with better analytic5 and Improved outcomes for residents as problems In individuals, health and trends should be spotted more readily. Documentation should a150 take les5 time so more is spent with our residents. The system to obtain prescription medication for residents called E-MARS ha5 major inadequacies so we have had to return to hard copy prestribin8. There are prospccts of a replacement system on PrcdicAire but this 15 not immediate. The main factors which influence our financial performance are occupancy leve15 and 5taffln8 Costs. Occupancy rates thankfully steadily increased during the year and the last "Needs improvement" CQC assessment does not seem to be adversely affecting these. The Clinical Management Team and the HR Co-ordinator are to be congratulated on controlling staffing cost5 while maintaining good levels on the floor5. Broomgrove'5 nursing staff specl311se In palllative care which makes Broomgrove a location of choice for Individuals wlth more complex nursing needs. Residents are still at the forefront and we will Continue to offer a high level of care alongside encoura8in8 participation in activities and promotin8 wellbein8. We have to accept that the financlal climate will continue to be challenging. However, this yearfs operating results were entouragin8 Wlth the charity reporting an operational surplus. Total resources expenditure of £2.637,816 are 3.45% hi8her than 2023124 but we achieved a net operational surplus of £31,376. Managing costs, especially minimi5ing the use of agency stsff, whlch regrettably can be unavoldable, and focusing on a range of actlons to a¢hleve a planned Improvement In our flnanclal posltlon wlll remaln paramount. I should Ilke to thank our Home Manager, Judy Warburton, along wlth all the other members of staff. for thelr contlnued hard work and dedication to providin8 a hi8h level of care at Broomgrove. I conclude by thanking all the Trustees for thelr tlme and commitment. Dr AJ Anderson Chairman Date.. Page 2 THE BROOMGROVE TRUST IA company Ilmlted by guarantee) TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORTI FOR THE YEAR ENDED 31 MARCH 2025 The Trustees present their report and the audited financial statements of the charity for the year ended 31 March 2025. The Trustees have adopted the provisions of the Statement of Recommended Practice ISORPI "Accounting and Reporting by charitie5" IFRS 1021 in preparing the annual report and financial statement of the charity. The financial Statements have been prepared in accordance with the occounting policies Set out in note5 to the accounts nd comply with the charity's governlng document, the Charities Act 2011 and Accounting and Reporting by Charltle5: Statement of Re¢ommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019. Objectlves and actlvltles a. Plafis for future periods We review and update future plans and objectives of the charlty on a regular basis. Improving and maintaining standards The quality of care will continue to improve through the recruitment, development and retention of effective and Caring staff, receiving appropriate trainlng, within a managed-risk environment. The residents, social well-being will be improved through extended activitie5 and opportunities. The physical environment will continue to be improved through investment in renovation and redecoration throughout the home. The Trustees wish to maintain the best of the caring practices and traditions inherited from the past and continue to develop these to meet the challenges of the future. Achieving a sound financial basis The charity will contlnue to develop its Services to create opportunltles to generate new Income to asslst In the achievement of a balanced bud8et, thereby helping to share the costs facing it5 residents across a wider base. Steps to Improve flnancial accountlng and management have been undertaken to asslst In better cost control and value for money, in particular the Trustees have declded to use professional asset managers to manage part of the free reserves. The Trust owns the freehold of the property in which the Nursing Home 15 located. Marketing and busine55 development A marketlng strategy 15 being followed to achieve a high level of bed occupancy, enabling prlces to remaln competitive and affordable for our clients, whilst protecting the charity's financial viability through the achievement of acceptable annual surpluses, to fund re-investment (maintaining a 'not-for-profit' ethos). Page 3 THE BROOMGROVE TRUST IA tompany limited byguaranteel TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORTI ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Achlevements ond performance a. Review of results and financial position Ttie Trustees are lo reporl 3 profit of £31,376 for the year ended 31 March 2025. 12024.. deficit of £61.8b41. uverali Income has increased this financial year which Is mainly due to an increase in residents, fees of 10%. The most slgnlflcant operating expense 15 payroll, with staff costs accounting for 76% of our operating expenditure. The control of staffing levels and costs is regarded as a priority by the Trustees and management team. Non-staffin8 Costs have seen a slight increase compored to last year. primarily due to the higher cost of living and risin8 Inflation. These Increases are largely drlven by external factors beyond our control and inevitably have a knock-on effect on businesses. No major capital expenditure incurred in this financial year. The level of free reserves has increased for this financial year mainly due to the increase in cash in thc bank held and managcment of costs. For accounting purposes, tho profit of £31,376 above is increased to £34,418 by the recognitiori of unfedlised dnd redlised investmerit gain. b. Revlew of artivitles The principal activity of the charity during the year continued to be the promotion, management and maintenance of a Nursing Home. c. Going concern The Board has prepared forecasts of income and expenditure and cash flow for the period to 31st March 2026 and projections to 31st March 2027. They have subjected these forecasts to sensitivlty analysls whlch shows that they have sufficient reserves to be able to continue for the foreseeable future. The Trustees have Concluded that the charity remalns a going concern whllst such vlable options are avallable to it. The Trustees therefore continue to adopt the going concern basls of preparation for these financial statements. d. Investment pollcy Investec Wealth and Investment Ltd continue to manage the portfolio on behalf of the Trustees. The account is to be managed on a dlscretionary bas15 With an investment strategy of medium risk and an income objective of 3% per annum. A benchmark has been set made up of 27.5% fixed interest investments, 57.5% equitie5 and commercial property and 15% cash and alternative investments. The Trustees receive a valuation of the portfolio on a quarterly basis and at least annually a manager from Inve5tec presents a verbal report to a rneeting of the Trustees. Page 4 THE BROOMGROVE TRUST IA Company limited by guarantee) TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORTI {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Strurture• governonce and management a. Objertlves and aims The objects of The 8roomgrove Trust are to provide convalescent, nursing and respite care for the sick and aged in the Sheffield area. It does this through the provision of fully-serviced nursing accommodation for its residential and respite patlents. The demand for small self-contalned flats Is reduced and at the 31st March 2025 only I remalned and wlll not be re-let when it becomes vacant. The Trust is fully re8lStered with all required regulatory bodies. b. Governln8 document and Trustee appolntment The Charity, The Broomgrove Trust, Is a company limited by guarantee and governed by its Memorandum and Articles of Association. The Trustees, listed on pa8e l are all rnembers of the company and liability is limlted to £1 per member in the event of the charity being wound up. New Trustees are recommended by ex15tlng Tru5tee5, Wlth reference and regard to the skllls requirement5 of the board which are periodically reviewed by the board. Upon appointment, Trustees receive acce55 to the governing documentation and are briefed by the Chairman on the current status of the company. All Trustees are encouraged to attend external training to keep up to date best practice and legislative requirements. c. Pay pollcy for senior staff Broomgrove's Board of Trustees (all volunteers) delegate the safe and effective running of the charity to the management team. Broomgrove's Management team comprises the following three members. Name Role Lèngth of seTrice 20 years Qualifications Ms Judllh Warburton Manager SRN, RSCN, Dip N, ENB998 Mrs Helen Mehrotra Cllnlcal Nurse Lead 3 ye8rs 11 yeai in thi5 sti 16 yeais SRN Mrs Janel Biggin Clinical Nu￿e Manager (part limel SRN Remuneration for the Mana8ement team is determined by the Board of Trustees. Leve15 of remuneration are set to ensure that Broomgrove attracts good people into these critical role5. Wlth reference to market conditions and the Specific skills required. The Management team's performance is monitored by the Board. d. Organlsational strurture The nursin8 home 15 managed principally by the Nursing Home Manager, together with a staff of 94 full and part time employees, under the direction of the Trustees. Financial accounting and payroll services are provided under contract by St Luke's Hosplce on an arm'5 length commercial basis. There is no element of cross subsidy arising from this relationship. Page 5 THE BROOMGROVE TRUST IA company limlted by guarantee) TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORTI ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Strutture• governance and management (continued) e. Rlsk management By closely monitorlng and assessing the current and emerging risks that have the potential to Impact our 3Ctivities, we c3n make the best decisions for our residents and our long-term sustainabillty. Overall approach: The 6oard of Trustees tonslders strateglc and financial risks on a regular basis and a sub-committee of the 8oard has been established speclflcally to cover Clinical risks (Clinical Governance Commltteel. Broomgrove engages an external organi5atlon to 5UPPOrt Its rlsk assessment. risk management and health & safety processes and policies and procedures are designed to enable the achievement of the charity's objective5 whlle controlling the r15k5 associated within the environment in which it operates. The reporting of risks and the monitoring of actions and controls are conducted by management as part of the governance arrangement5, who routinely report the findings to the Trustees. The Trustees ut1115e the information to prlorltlse strateglc and operational rlsks and ensure risk action plans are devised and implemented. The principal risks and uncertainties affecting the charity and their potential impact, together with the means by which they are managed are as follows.. FlulCOVID-Ig: The Directors have reconsidered the impact of COVID-19 on the charit¢s activities, workforce and supply chain, a5 well as the wider economy and downgraded the impact on the charity. Covid is still an infection which appears from time to time much like Flu and we manage it within the Eeneral airborne diseases policy. Staff cèn return to work following 3 covid diagnosis. but a risk assessment needs to be completed to ensure resident safety. The risk of mortality was high but Is no longer the case. Flnan¢lal Rlsks Reduction in occupancv Potential impact.. the majority of income 15 derived from residents, with the associated risk that occupancy falls below budget, cau5in8 a drop in revenue and resultant pressure on cash flow. Mltlgation: the charity continues to focus on continually Improvin8 the quallty of services and facility to ensure as high an occupancy rate as possible, along with prudent budgeting and ensuring sufficient reseNes are retained to meet unexpected deficits. If occuponcy reduces or rises, staffing levels are adjusted to motch demand. Agency C05t5 Potential impact: appropriate staffing levels are required to ensure that the correct level of care is provided. With shortage in qualified nursing staff across the sector, the charity may be required to use agency staff who cost considerably more than their own staff. Mitigation.. Monthly tracking of budget against actual performance including agency usage 15 undertaken and reported to the Trustee5. Page 6 THE BROOMGROVE TRUST IA company Ilmlted by guarantee) TRUSTEES, REPORT (INCLUDING DIRE￿oRs, REPORTI ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Strurture, governance and management {contlnuedl National Minimum Wage and Pension increase Potential impact.. a number of employees have salaries based on the statutory Natlonal Mlnimum Wage/National Living Wage or c105e to this. As such, legislative increases in the National Minimum Wage and Living Wa8e, which are in excess of Income inflation, could reduce profltablllty. Mltlgatlon.. the Trust budgets carefully for Natlonal Mlnlmum Wa8e/Living Wage/Pension cost increases and the impact on its cash flow and profltabillty. Reputational risk Potential impoct.. a serious incident or harm to one or more residents could result In negative publicity. Such Incidents may result in an increase in scrutiny from regulators a5 well as from resident5 and their families. Mitigation.- in order to mitigate this risk as far as possible, we have carried out Substantial employee training, employee inductions and employee reference procedures. including a criminal background check for all staff. Thi5 risk, in particular, Is rnonitored by the Clinical Governance Cornmittee. Regulatory risk Potential impact-. the regulatory requlrements cover the entlre range of the nursing home's funttion. Failing to comply with regulations including the CQC registration and standard of care, can result in the levy of fines and/or the revocation or suspension of registration or temporary suspension of placements. A temporary suspension would have a significant effect on income as it directly and negatively affects occupancv. Mitlgation- the charlty self-a5sesse5 against the key tests used by the regulatory authorltle5 and works closely wlth South Yorkshire Integrated Care Board /Sheffield City Council to improve practices for care and for the recordin8 of the history of the residents. treatment In order to Improve the level of care and to improve Broomgrove's rating. The Cllnlcal Governance Committee of the 8oard monltors and investigates all reported incidents and accidents. The aforementloned external agency engaged to identlfy and mltlgate health and safety requirements undertake independent assessments of health and safety standards at 8roomgrove. including ensurin8 that risk assessments are current and Significant findings are reported to management. All accidents. incidents and near misses are investigated and where nece550ry full root cause analysis is undertaken. Incidents, where required, are reported under RIDDOR. We are visited regularly by South Yorkshire Fire and Rescue as part of the Services of familiarisation and we maintain independent contractors to check and service the lighting, fire alarm and extingui5her5. We have been currently inspected by the local authority (The Regulator) for food hygiene and maintaln our 5-star rating. f. Reserves pollcy In drawing up the reserves policy, Trustees are mindful of the need to balance financial prudence with the importance of getting money to the front line quickly. Holding reserves allows us to navigate unexpected drop5 in income or 5udder) short-term increases in expenditure, protecting us against risks Isome of which are mentioned above). Page 7 THE BROOMGROVE TRUST (A company Ilmlted by guarantee) TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORTI {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Structure, governance and management (continued) The level of rese￿e5 required is determined using a comprehensive budget and cash flow forecast. Regular updates and monitoring of these are carried out to ensure that a surplus is achieved and cash flow is adequate for the needs of the Trijst. The Trustees conslder a cash and Investments balènce In the reglon of £270,000 to £370,MO to be a reasonable amDunt to provide for unforeseen financial flurtuations. The Trustees, target is that free reserves (being net current assets plus investments) are in the same financial range of £270,000 to £370,OW, as the Trustees are mindful that the calculatlon of free reserves will exclude any cash balances that are already committed or desi8nated. As at 31 March 2025, free rese￿e5 were £364,872. The focus in the coming year and beyond will be to maintain the current level of cash and free reserves at the figure stated in the policy. 8. Inforrnatlon on fundraisin8 prattlces Broomgrove is not currently registered with the fundraising regulator. During the year we have not appointed any professional fund-raiser to support the work of the charity or unde(taken any 5peLifiL fundraisin8 activities. We have received no complaints in relation to fundraising activities. h. Public Beneflt In planning and delivering our servites and activities, the Trustees and management of The Broomgrove Trust have 8iven due regard to the need to ensure that the nursing home provides public benefit following the Charity Commission'5 guidance on these matters. The practice5 developed at Broomgrove have been used as templates by other nursing homes In the city and beyond. Beds are speciflcally retained so that recuperation from surgery and short-term resplte stays can be offered. This facility is not widely available elsewhere. A re5ident5' SUPPOrt fund has been established to provlde funds to assist resldents who may encounter flnanclal difficulties. The Broomgrove Trust offers Its services to all members of the public, and operates on a not-for-profit basis - providing superior medical access, attended nursing, and activitles support as well as offering subsidised accommodatlon to residents. The Trust keeps slght of Its charltable objective5 and will contlnue actively to support cllents where th15 IS approprlate for their well-being and welfare. Page 8 THE BROOMGROVE TRUST IA company Ilmlted by guarantee) TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORTI ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 ststement of Trustees, responslbllltles The Trustees (who are alsc) directors of The Broomgrove Trust for the purpose of company lawl are responsible for the preparing the Trustees, report and the financial statement5 in accordance with applicable law and United Kin8dom ALLOLlI)tiiig Staiidards IUI)ited Kii)gdoiii Gei)èraliy Accepted Accouiitii)g Practice Company law requlres the Trustees to prepare financial statements for each flnancial year. Under company law the Trustees must not approve the flnancial statements unless they are 53tlsfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and applicatlon of re50urce5, including the income and expenditure. of the charitable company for that period. In preparing these financial statement5, the Trustees are required to.. select suitable accounting policies and then apply them consistentlv,. observe the methods and prlncSple5 of the Charities SORP 2019 (FRS 1021,. make judgment5 and accounting estimates that are reasonable and prudent,, state whether applicable U K Accounting Standards have been followed., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The trustees are re5pon51ble for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial p051tion of the charltable company and enable them to ensure that the financlal statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Dlsclosure of Informatlon to auditor Each of the persons who are Trustees at the time when thi5 Tru5tees' report Is approved has conflrmed that.. there Is no relevant audlt informatlon of whSch the charitable company's auditor is unaware,. and the tru5tee5 have taken all the Steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that informatlon. Audltor The audltor, 8HP LLP, has indlcated their willlngness to continue In offlce. The designated Tru5tee5 will propose a motion reappointing the auditor at a meeting of the Trustees. Approved by order of the member5 of the board of Trustees and signed on their behalf by.. Dr A Anderson MA BM BCH FRCP Chairman Date: Page 9 THE BROOMGROVE TRUST IA company limlted by guarantee) INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF THE BROOMGROVE TRUST Oplnlon We have audited the financial statements of The Broomgrove Trust (the 'charitable company'l for the year ended 31 March 2025, which comprise the statement ol financial activltSes, the balance sheet, the statement of cash flows and notes to the financial staiements, including significant accounting policies. The iinancial reportin8 framework that has been applied Sn thelr preparation is applicable law and United Kingdom Accounting Standards, includin8 Financial Reporting Standard 102 The Financial Reportlng Standard applicable in the UK and Republic of Ireland Iunited Klngdom Generally Accepted Accountlng Practice). In our opinion the financial statements: give a true and fair vlew of the state of the charitable company'5 affair5 35 at 31 March 2025, and of it5 incoming resources and application of re50urce5, including Its income and expendlture, for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance wlth the requirement5 of the Companles Act 2006. 8asls lor opinion We conducted our audlt In accordance with International Standards on Auditlng IUKI IISAS IUKII and applicable law. Our re5ponsibilitie5 under those standards are further described in the auditor responsibilitie5 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 obtalned 15 sufflclent and appropriate to provSde a basis for our opinion. Concluslons relatlng to goln8 concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accountlng In the preparatlon of the flnanclal statements Is appropriate. Based on the work we have performed, we have not Identlfled any material uncertainties relating to events or conditlons that, individually or collectively. may cast $18nificant doubt on the charltable company's ability to contlnue as a 8oin8 concern for a perlod of at least twelve months from when the financial statements are authorlsed for issue. Our responsibilities and the responsibillties of the trustees wlth respect to goin8 concern are described In the relevant sertions of this report. Other Informatlon The other Informatlon comprlses the Information Included in the trustees, report. other than the flnancial statements and our auditorfs report thereon. The trustees are responsible for the other information. Our opinion on the financial statement5 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 re5ponsibillty is to read the other information and, in doing so. consider whether the other information is materially incon515tent with the financial statements or our knowledge obtalned in the course of the audit or otherwise appears to be materially mi55tated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material mi5Statement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material mi55tatement of this other information, we are required to report that fact. We have nothing to report in this regard. Page 10 THE 8ROOMGROVE TRUST IA cornpany limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BROOMGROVE TRUST ICONTINUED} 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. which includes the directors, report prepared for the purposes of company law, for the fSnanclal year for whlch the financial statements are prepared Is conslstent wlth the flnanclal statements; and the directors. report included wlthln the trustees, report has been prepared in accordance with applicable legal requirements. Matters on whlch we are required to report by exceptlon In the Ilght of the knowledge and understandlng of the charitable company and Its environment obtalned 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 respcct of the following matters in relation to which the Companies Act 2006 requires Lb5 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 di5cIosures of tru5tee5' remuneration specifled by law are not made,. or we have not recelved 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. exemptions in preparing the directors, report and from the requirement to prepare a strate8ic report. Responslbllltles of trustees As explalned more fully in the trustees, responslblllties statement, the trustees (who are also the dlrectors of the charltable company for the purposes of company lawl are responsible for the preparatlon of the fSnanclal statements and for being satisfied that they give a true and fair view, and for such Internal control as the trustees determine15 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 re5ponslble for a55es5ing the charitable companvs ability to continue as a going concern, disc105ing, 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 operation5, or have no realistic alternotive but to do 50. Audltor re5ponsiblllties for the audlt of the flnanclal staternents Our objectives are to obtain reasonable assurance about whether the financial statements a5 a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that include5 our opinion. Reasonable assurance is a high level of assurance, but is not a guarontee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exist5. MisStatement5 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 ba515 of these financial statements. Page 11 THE BROOMGROVE TRUST IA company limited by zuarantee) INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF THE BROOMGROVE TRUST ICONTINUEDI Irregularitie5. includin8 fraud, are instances of non-compliance with laws and re8ulation5. 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 15 detailed below.. the senior statutory auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and re8ulations,' we identified the laws and regulations applicable to the charitable company through discu55ions Wlth management and trustees and from our knowledge and experiences of the sector: we focused on speclfic laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company, including Charities Act 2011, Companies Act 2006, Care Quality Commission, safe-guarding, health and safety and GDPR regulations. we assessed the extent of compliance with the laws and regulations identified above through making enqulrles of management and trustees,. Identlfled laws and regulations were communlc3ted wlthln the audlt team regularly and the team remained alert to instances of non-compliance throughout the audlt. We assessed the susceptibility of the charitable company's financial statements to material misstatement, includin8 obtaining an understandin8 of how fraud might occur, by; maklng enqulries of management and trustees as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud: and considering the internal contro15 in place to mitigate risks of fraud and non-compliance with laws and regulations; To address the risks of fraud through management bias and overrlde controls, we: performed analytlcal procedures to identify any unusu31 or unexpected relationship5. tested journal entries to identify unusual transactions; investl8ated the ratlonale behlnd sI8nlflcant or unusual transactions. In response to the risk of irregularities and non-compllance wlth laws and regulatlons, we deslgned procedures whlch Included, but were not limited to.. 8reeing financial statement disclosures to underlying supporting documentation; reading the minutes of meetings of those charged wlth governance enquiring of management a5 to octual and potential litigation and claims. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularitie5, including those leading to a material misstatement in the financial statements ar 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 Ilkely to become aware of instances of nan-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional tontealment, forgery, tollusion, omi55ion or misrepresentation. A further description of our responsibilities is available on the FRC'S website at- www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditorfs report. Page 12 THE BROOMGROVE TRUST IA company limited by iuaranteel INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BROOMGROVE TRUST ICONTINUEDI Use of our report Thls report is made solely to the charitable company's members, a5 a body. in accordance with Chapter 3 of Part 16 of the Companles Act 2006. Our audit work has been undertaken so that we might state to the charltable company's members those matters we are required to state to them in an audltor's report and for no other purpose. To the fullest extent permltted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable companvs Members a5 a body, for our audit work, for this report, or for the opinions we have formed. Rachel Heath (Senior statutory auditor) for and on behalf of BHP LLP Statutory audltor Albert Works Sidney Street Sheffleld SI 4RG Date.. f 25 Page 13 THE BROOMGROVE TRUST IA company Ilmlted by guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2025 Unrestrlrted funds 2025 Total funds 2025 Total funds 2024 Note Income from: Donations and legacies Charitable activities 1,989 1,684 2,663,751 3,443 2,663,751 3,443 2,482,306 3,615 363 Investments Other income Total Income 2,669,192 2,669,192 2,487,968 Expendlture on: Charitèble activitles 2,637,816 2,637,816 2,549,832 Total expendlture 2,637.816 2,637.816 2,549,832 Net Incomellexpendlturel before net gains on investments Net gain5 on Investments 31,376 3.042 31,376 3.042 161,8641 10,811 Is Net movement In funds 34,418 34,418 151,0531 Retonclllatlon of funds.. Total funds brought forward Net movement in funds 1,458.390 34,418 1,458,390 34,418 1,509,443 {51,0531 Total fund5 carrled forward 19 1,492,808 1.492,808 1,458,390 The Statement of financial activities complies with the requirement5 for an income and expenditure account under the Companies Act 2006 and includes all gains and1055e5 recognised in the year. All Income and expendlture derive from contlnulng activities. Page 14 THE BROOMGROVE TRUST IA company Ilmfted by guarantee) REGISTERED NUMBER: 01746654 BALANCE SHEET A5 A T31 MARCH 2025 2025 2024 Note Fixed assets Tan8ible 355et5 Investments 14 1.127.936 153.566 1.156.472 151,779 15 1,281,502 1,308,251 Current assets Debtors 16 227,682 230.349 21S,851 Cash at bank and in hand 175,985 458.031 391,836 Current Ilabllltles Creditor5: amounts falling due within one year 17 (236.205) 1220,9271 Net current assets 221,826 170,909 Total assets less current Ilabllltles 1,$03.328 1.479,160 Credltors: amounts falling due after more than one year 18 110,520) 120,7701 Total net assets 1,492,808 1,458,390 Charlty funds Restrlcted funds: Unrestricted funds Ilncludlng Revaluatlon Reserve of £16,045 {2024: £13.84011 19 1.492.808 1,458,390 Total funds IA92,808 1,458,390 Page IS THE BROOMGROVE TRUST IA company limited by guarantee) BALANCE SHEET (CONTINUED) ASA T31 MARCH 2025 The Trustees acknowledge their responslbllltles for complylng wlth the requlrements of the Act with respect to accounting records and preparatlon of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities Subject to the small companie5 regime. The financial statements were approved and authorlsed for issue by the Trustees and signed on their behalf by: Or A Anderson MA BM 8CH FRCP Chairmanrfrustee Date.. The notes on pages 18 to 34 form part of these flnanclal statements. Page 16 THE 8ROOMGROVE TRUST IA company Ilmlted by Euar•nteel STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Note Cash flows from operatlng actlvltles Net cash provided by operating activities 22 65.410 54,149 Cash flows from Investlng actlvltles Dividends and Interest from inve5trnent5 3.615 125,7341 53,930 156,2221 Purchase of tangible flxed assets Proceeds from sale of Investments 15,7471 20.528 {17,565) Purchase of investments Net cash provlded byllused In) Investln8 adlvltles 659 124AII) Repayments of borrowlng 19,997) 19,7301 Net cash used In flnanclnK actlvltle5 19.997) 19.7301 Chanie In cash and cash equivalents In the year 56,072 20.008 Cash and cash equivalents at the beglnnlng of the year 177,844 157,836 Cash and cash equivalents at the end of the year 23 233,916 177,844 Page 17 THE BROOMGROVE TRUST {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 General Informatlon The charity is a company limited by guarantee and governed by it5 Memorandum and Articles of Association. The registered office is 30 Broomgrove Road, Sheffield, SIO 2LR. Accountln8 pollcles 2.1 8as1s oAprepan7tlon ofllnonclol statements The charlty constitutes a public benefit entity as defined by FR5 102. The fTnanclal 5taternent5 have been prepared in accordance with Accounting and Reporting by Charitie5.' Statement of Recommended Practice applicable to charities preparing their account5 In accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021, the Charltles Act 2011. the Companies Act 2006 and UK Generally Accepted Accounting Practice. The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statement5 are presented in sterling which is the functional currency of the charity and rounded to the nearest £. The signlficant accountlng pollc5e5 applled in the preparation of these flnanclal statements are set out below. These policies have been consistently applied to all years presented unle55 Otherwise stated. 2.2 Income All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliablv. The recognitlon of income from legacies is dependent on establishing entltlement, the probabillty of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charSty has sufflcient evldence that a gift has been left to them Ithrough knowledge of the existence of a valid wlll and the death of the benefactor) and the executor Is satlsfied that the property In question wlll not be required to satisfy claim5 in the estate. Recelpt of a legacy must be recognlsed when It Is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distrlbuted to the charity, can be reliably measured. Other income is recognised in the period In which it Is receivable and to the extent the 8oods have been provlded or on completion of the servlce. 2.3 Expendlture Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to 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 classlfied by actlvity. The casts of each activity are made up of the total of direct cost5 and shared cost5, including 5UPPOrt costs involved in undertaking each activity. Direct cost5 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 asseys use. Page 18 THE BROOMGROVE TRUST IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accountln8 pollcies (continued) 2.3 Expendlture fcontlnued) txpenditure on charitable activities is incurred on directly undertaking the activities which further the charlty's oblectlves, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.4 Interest receivable Interest on funds held on deposit 15 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 institution with whom the funds are deposlted, 2.5 Tanqlbleflxed assets ond depreclotlon Tanglble fixed assets are included at orlginal cost less actumulated depreciatlon, wSth the exceptlon of freehold buildings and paintings. Freehold bulldings are not depreclated because they are maintained in good condition so that theSr value is not significantly impaired by the p055age of time, and in consequence any element of depreciation would be immaterial. The paintings are not depreciated because their value is not Significantly impaired by the passage of time, and in consequence any element of depreciation would be Immaterlal. The non-depreciation of freehold buildings and paintin85 is a departure from the general requirement of the Companies Act 2006 and Charities SORP IFRS1021 for all tangible assets to be depreciated. The trustees are of the opinlon that such treatment Is necessary to glve a true and falr vlew. A de minlmus Ilmlt Is set whereby only expendlture over £500 Is capStallsed, unless It Is part of a larger project. In accordance with FRS102, the trustees have performed an annual impairment review and consider that the carrying value of the freehold property and the paintings is not higher than the recoverable amount. A review for impairment of a f ixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. lrnpairment losses are recognised in the statement of financial activitie5 incorporating income and expenditure account. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. Depreclation is provided on the following bases.. Major refurbishments Artwork Equipment/ refurbishments and alterations Computer equipment Lift 10 years straight Ilne impaired c05t 25% reducing balance 3 years straight line 20 year5 5tralght line Page 19 THE BROOMGROVE TRUST IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accountlng pollcies (continued) 2.6 Investments Fixed dsset investrrients are a lorni UF liiiariii